T h e
m a g a z i n e
f o r
f r a n c h i s e e s VOL 12 ISSUE 04 may/june 2018
AUSTRALIA and NEW ZEALAND
BoConcept
a retail franchise with design in mind
ON THE ROAD TO SUCCESS
$6.95 (AUD), $7.95 (nz) inc. gst.
FINANCIAL & legal ADVICE
PROTECTING YOUR WORKERS – AND YOU! LATEST NEWS
franchise directory
Be the
LEADER OF YOUR OWN SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous. A 7-Eleven franchise is a partnership in success. When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.
BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation. From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment. We set up shop for you and give you
full training
We take payroll admin off your hands
and help with the book-keeping
We deal with suppliers to get you the
best products
We manage the fuel
Financials
Contact Details
An initial investment of between $400,000 and $1,000,000 + is what is required to become a 7-Eleven Franchisee, so it’s certainly a big decision to make.
Franchise Development Managers
The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees. 7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits. Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.
We have brands you won’t find anywhere
Brett Reading Queensland
E-Mail: bzr@7eleven.com.au Mobile: 0407 877 674 Peter O’Hara Victoria / Western Australia
E-Mail: pwo@7eleven.com.au Mobile: 0408 175 534 Shayne Boogaard New South Wales
E-Mail: szh@7eleven.com.au Mobile: 0418 136 156
else
We provide advertising and promotional
support
START YOUR SUCCESS STORY TODAY www.7elevenfranchise.com.au
FRANCHISING
Grow your network with Cashflow It Franchise Accreditation Help your franchise partners get the finance they need by becoming a Cashflow It accredited franchise system. Not only does accreditation reduce the challenges of accessing finance, it is also a powerful tool to assist in the growth of your franchise network. While Cashflow It operates with the flexibility of a small business, we have the resources and backing of one of Australia’s largest non-bank finance companies - Thorn Group Ltd, an ASX 200 company with over 80 years’ experience in the finance industry.
Cashflow It has been a key partner for the growth of the Rolld system. Where traditional lenders have rigid requirements, the team at Cashflow It have understood the challenges of a growing franchise system and have been prepared to partner for growth. Ray Esquieres, Co-Founder & CFO, Rolld Australia
Benefits of Accreditation
What can be funded?
1. Guaranteed access to finance
Just about any serialised piece of equipment can be funded with Cashflow It as well as some customised assets.
2. Preferred rates of funding 3. Access our full range of finance products 4. Accredited franchise priority service 5. Other exclusive benefits
• New equipment
• Used equipment
• Fitouts and refurbishments
• Vehicles
• National equipment roll-outs
• Re-financing & Franchise re-sales
• Serialised and custom assets
• Greenfield sites
Get accredited You’ll be happy to know that Cashflow It Franchise Accreditation is nothing like bank accreditation. It’s a very simple, pain free process. Call us today on 1300 659 676 or visit cashflowit.com.au for further information.
1300 659 676 cashflowit.com.au
8 AM
b us i ness fran c h i se m ag az i ne austra l i a an d ne w zea l an d
AUSTRALIA and NEW ZEAL AND
AUSTR ALIA and NEW ZEAL AND
BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 12 ISSUE 4, may/june 2018 publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au publisher’s assistant: Jorgia Rice. PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com COVER IMAGE: BoConcept TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968
From the
Editor This issue of Business Franchise follows the successful Franchising & Business Opportunities Expo in Sydney, which showcased the accomplishments of the industry and the enthusiasm of those who work within it. Read all about it on page 84. The next Expo will be held in Perth on 6 May, followed by Brisbane 21-22 July, and Melbourne 25-26 August. Business Franchise readers can get free tickets when booking online using the code BFM. You can also visit our stand at the next expo to meet us in person! Workcover WA’s Stephen Psaila-Savona has shared his advice on page 60 for how to protect both yourself and your workers when accidents occur, so that you can enjoy the opportunities of franchising without letting your responsibilities hinder your success.
this feature explores the benefits of running a mobile franchise, working from home, or operating from a fixed location. On the cover is customised furniture success story BoConcept. Franchisee Bill Zheng shares his story on page 10 of how he reached out to the brand to set up the first BoConcept site in Australia. As always, the magazine is packed with all this and more of the latest news, expert advice, and opportunities from the franchising industry. Enjoy the read. Joanne Tuffy Editor
FREE EXPO TICKETS SEE PAGE 55 FOR DETAILS
This issue features Fixed vs Mobile Franchises, in order to help you decide what kind of territory is right for you. Starting on page 33,
MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz
SUPPLIER FORUM
The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Business Franchise Australia and New Zealand 3
contents
may/june 2018
On the Cover 10
14
Cover story: BoConcept A Retail Franchise with Design in Mind
38 On the Road to Success FC Business Solutions 60 Protecting Your Workers – and You! Stephen Psaila-Savona | WorkCover WA
In Every Issue 6
20
34
What’s New! Announcements from the Industry
12
Resourcing Franchisees for Success
34
Feature editorial: Fixed Site V Mobiles Franchises Which one’s For You?
88
Hot Topics: Behind the Headlines
90
Professional Services Listings
92
Listings
94
A-Z Directory
Bruce Billson, Franchise Council of Australia
Jason Gehrke, Franchise Advisory Centre
Focus Feature 47
Buy Sell Lease
Snapshot
74
22 Mail Boxes Etc.
Franchise Picks 54 Old Macdonald’s Travelling Farms | Poolwerx | Wheel Change U
Franchisor in Depth
86
44 Ecomist Australia
ge U
also in this issue: Profiles 18
Mad Mex
24 ANZ Mobile Lending
7-Eleven...................................................................... 1, 94 Appliance Tagging Services. .............................. 94 Auto Masters........................................................ 23, 94 Axsesstoday..................................................................31 Books and Gifts Direct........................................... 95
26 Begin Bright
Car Care.................................................................. 77, 95
42 Jim’s Car Detailing
Cashflow It........................................................................ 2
66 Sandwich Chefs®
Clark Rubber................................................................ 95
72
Crema Espresso........................................................ 96
NeNe Chicken
84 Franchising Expo
Dr Boom.......................................................................... 96 Fasta Pasta.................................................................... 96 Fastway Couriers............................................. IFC, 97
Expert Advice 14
Five Disruptive Trends You Can’t Afford to Ignore Michael McQueen | Author
20 Why Thank You Matters More than Money Karen Gately | Ryan Gately
FC Business Solutions............................................ 17 FocalPoint. ......................................................................97 GroutPro. .........................................................................97 Hairhouse Warehouse............................... 97, OBC IP Partnership.............................................................. 90
28 I’m a Franchisee. What are my Ongoing Obligations? Amritha Thiyagarajan | LegalVision
Jim’s Pool Care........................................................... 98
40 The Value of Connecting with the Franchise Network Andrew Simmons | Vision Personal Training
Listen To Your Body................................................. 99
50 Managing Bad Debt an Easier Way Alison Shaw | SHAW Dispute Resolution
Just Cuts......................................................................... 98
Little Kickers & Little Rugby Australia............ 99 Magnetite Windows. ................................................ 99 Marsh & Maher Richmond Bennison............ 90
52 Three and a Half Years On Carrie Peterson & Paris Maggs | Peterson Haines
Matt Fiddes Martial Arts......................................100
56 Do Your Homework Alexander Millman | National Retail Association
NanoShield..................................................................100
62 The Purchase Decision Steve Seddon | Westpac 68 Why Local Marketing should be on your Agenda Peter Harris | Digital Stack 74
Midas Australia................................................. 65, 100
National Franchise Insurance Brokers.......... 59 ProteinXpress.............................................................100 Senior Helpers.................................................. 55, 101 Smallprint...................................................................... 101
How to Keep Your Small Business Safe from Cyberattacks
Snap-on Tools........................................................... 101
Kerry Tang | Aleron
Soccajoeys.................................................................. 101
78 How to be a $1m Agent in any Business Adam Flynn | Biggin & Scott Knox
Spudbar. ....................................................................... 102 The Interface Financial Group................. 83, 102
80 Getting into Franchising? Things to Watch Out For Dr Michael Schaper | Australian Competition and Consumer Commission
Theobroma, Chocolate, Lounges,
86 Improve Your Financial Position Peter Winterflood | BDO
Thermawood.............................................................. 102
Paviliions, Bars.......................................................... 102
Walker Wayland....................................................... 900
what’snew! Quest celebrates continued growth in Perth
Fastway Couriers Recognise Excellence
Regional Franchisee winners Michael Weine & Nadine Weine with Fastway CEO Peter Lipinski
2018 marks 25 years of operation in Australia for leading delivery network Fastway Couriers and the business recognised and celebrated excellence at its annual convention, held at Uluru. The recent opening of Quest Midland at 3 The Crescent, is the second Quest Apartment Hotels property to open in Western Australia in just five months, following the October opening of Quest Innaloo, increasing the company’s offering by a further 102 rooms. The brand new premium apartment hotel comes as part of the Midland Oval Redevelopment. This long-term project will deliver six sub precincts offering up to 1,000 new dwellings, 25,000 square metres of new retail space, 12,000 square metres of restaurants and up to 90,000 square metres of commercial space, making the new property the ideal location for the corporate traveller. Quest General Manager – Growth James Shields has been vocal in his confidence in Western Australia’s growing tourism market. “Growing our base in Western Australia is a key priority for Quest, with a third Perth property, Quest South Perth Foreshore set to open this year. “I am thrilled to open the doors at Quest Midland, which joins the growing landscape of the City of Swan. The addition of these apartments is an asset to the area, as well as providing a great accommodation option for leisure tourists,” Mr Shields said. Quest Midland offers a mix of studio and one or two-bedroom apartments. The purpose-built property provides the perfect “home away from home”, with fully-equipped kitchen, business lounge, conference facilities and a heated swimming pool. The scheduled opening of eight new properties across Australia and the UK in the next year shows substantial growth for Quest. In addition to Midland, this includes properties in South Perth (WA); Cannon Hill (QLD); Maribyrnong, Epping, Notting Hill and NewQuay (VIC); Penrith (NSW); and Liverpool (UK).
6 Business Franchise Australia and New Zealand
The focus for Fastway’s 2018 convention was on celebrating and recognising a successful 25 years of delivering in Australia and providing franchisees insights into the future of the logistics and franchising industries and how Fastway plans to capitalise on market opportunities and support franchisees into the future. “Fastway Couriers was thrilled to celebrate its 25-year anniversary at our annual convention at Uluru this year. Our franchisees and couriers have been provided with valuable knowledge and tools to maximise success of their businesses, meet growing demand and continue to exceed customer expectation. It was fantastic to see so many attendees inspired and excited to take full advantage of the latest technology, tools and support available to them as part of the Fastway Couriers network,” says Fastway Couriers Australia CEO Peter Lipinski. The convention culminated with a gala awards night where the network’s top franchisees and couriers were recognised for their hard work. “Our annual Excellence Awards dinner is important recognition of the best of the best within the Fastway Couriers network. We were so impressed with the high calibre of nominations this year and thank the entire network for their dedication to delivering the best. Well done to all hardworking finalists and congratulations to our winners for 2018,” added Peter Lipinski. The Fastway network also dug deep at the gala awards dinner raising over $18,000 to support Beyond Blue. Fastway’s award winners for 2018 included Regional Franchise of the Year winner Fastway Couriers, Wollongong and Courier Franchisee of the Year, Sirous Sedaghpour – Fastway Couriers, Sydney. A full list of winners can be found at: www.businessfranchiseaustralia.com.au/latest-news/fastwaycouriers-recognises-excellence-conference-uluru
Forum helps franchisors manage transformational change in their networks Leading franchisors will share their experiences in managing transformational change to future-proof their brands, improve customer service delivery, and improve franchisee profitability at this year’s Franchise Management Forum. Set against a backdrop of challenging economic conditions, growing media scrutiny of the franchise sector, a government inquiry, and the introduction of the Protecting Vulnerable Workers Bill last year which makes franchisors liable for wage underpayments by franchisees, the Forum will provide franchisors with practical tips and insights on how to manage change in their networks. The Forum will feature presentations from leading brands which have undergone (or are undergoing) transformational change. Participating brands include: • Caltex on its decision to buy back its franchises and accelerate change within its group as a company-owned network; • Australia Post on modifying its business model as its traditional mail business declines; • How multi-branding is creating opportunities for Australia’s largest fitness group, Collective Wellness (parent company of Anytime Fitness); • The Fair Work Ombudsman on the reasonable steps a franchisor can take to minimise their risks under new joint employer liability laws; • Plus panel discussions on how franchisors can engage highperforming and multiple unit franchisees to facilitate change in their networks, and how to build online sales while maintaining in-store traffic.
Franchise CEO’s and leaders share their experience in managing transformation change at the Franchise Management Forum (Brisbane, June 13).
The Forum will also include a rare opportunity for all participants to discuss and share their experiences around the implementation of change management programs, including funding options to implement change and recovering from past change management programs that have failed. The Forum is organised by Jason Gehrke, Franchise Advisory Centre founder and board member of two retail franchise brands. The Franchise Management Forum will be held in Brisbane on June 13. For more information, visit www.franchiseadvice.com.au
Jamaica Blue Opens New Café in Mandurah community’s love for Jamaica Blue’s premium sourced coffee, quality food, cafe ambience and customer experience. “We’re thrilled to expand the Jamaica Blue experience in Mandurah. Lovers of fine coffee will be delighted with the premium blends served in-store by highly-trained baristas,” says Terry. Owned and operated by the Foodco Group, Jamaica Blue’s commitment to local communities, which sets it apart from other cafés, has encouraged Terry to stay and grow with the company. “Working with Jamaica Blue has impressed us so much that we are looking forward to a long term and prosperous partnership that will hopefully see us extending our portfolio even further,” says Terry.
Jamaica Blue, Australia’s Best Franchise Coffee Roaster, has expanding into the Mandurah community. Located inside Mandurah Forum, the new café is managed by Terry Feng, who already runs a nearby Jamaica Blue in Halls Head. Mandurah’s newest Jamaica Blue café is Terry’s second franchise investment in just one and a half years, a direct reflection of the coastal
“On top of sourcing our ingredients locally, hiring locals and actively listening to our customer’s needs, we will be diligently seeking ways we can work with the local community to build relationships and support growth,” he says. Each of Jamaica Blue’s franchise partners have the freedom to develop café s with their own personalities and menu selection, depending on local tastes and seasonal produce. It’s this innovative approach that continues to make Jamaica Blue stand out in the market from other coffee franchises.
Business Franchise Australia and New Zealand 7
what’snew! Forty Winks expands national footprint to 100 stores Australian bedroom retail specialist Forty Winks has expanded its retail footprint, with the opening of its latest store in Chatswood Sydney. With 100 stores operating across the country, Forty Winks is Australia’s largest independently locally owned and operated bedroom retailer. “Forty Winks is a fully owned Australian business, operated by passionate independent retailers who are proud to support Australian manufacturers and serve their local communities. In our fourth decade as Australia’s leading bedding retail specialist, Forty Winks achieved yet another significant milestone in April, when we opened our 100th store in Chatswood NSW,” said David Edwards, Forty Winks CEO. “Congratulations to long term franchisees, Michael and Lucy Clisdell on opening their second store. Our growth is fuelled by the
confidence that consumers have in the iconic Forty Winks brand and the expertise of our caring owners and professional sales people,” said David Over its 34-year history, Forty Winks has redefined the bedding landscape to grow into a reputable and widely recognised Australian brand. “As the market leader in the bedding specialist category; we are constantly looking for ways to drive growth as a house of brands bedding
New ideas on show at Franchising Expo
expert. The brand’s strength and saliency is stronger than ever, as we celebrate opening our 100th store in Chatswood NSW,” said Alex D’Amico Forty Winks Head of Marketing. “After 34 years as an Australian owned and operated business; Forty Winks is set to exceed market expectations and has some significant plans to reinforce its No.1 position into the next phase of the brand’s evolution,” said Alex
The recent Sydney Franchising Expo showcased new local concepts like Soul Origin, Lock & Roll, Stepz Fitness, D-Sign Interiors, Stretch Studio and My Ride cycling stores. International brands making their Australian debut at the show included Bodystreet, Nathan’s Famous, Jon Smith Subs, Dippin’ Dots Ice Cream, Rodan & Fields, Miniso and a contingent of companies from Taiwan. Soul Origin and Jon Smith Subs will also be exhibiting at the next show in Perth on 6 May, along with debut exhibitors Oxworks, Wheel Change U, Jester’s Pies, Krazy Keys and In the Booth. Big name brands exhibiting include Poolwerx, Aussie, Bakers Delight, Mailboxes Etc., Fully Promoted, Minuteman Press International, Signarama and Jim’s Group. “We are thrilled to bring the Franchising Expo to Perth for the third time,” says Fiona. “It’s a boutique event at Crown Perth for one day only, and now has a great following.” Like its sister Expos in Sydney, Brisbane and Melbourne, the Perth event will offer visitors a forum to compare and research a diverse range of franchise opportunities, with investment levels from under $10,000 to more than $500,000. Pre-register online to visit any show for FREE with code BFM at: www.franchisingexpo.com.au
8 Business Franchise Australia and New Zealand
Helping Australian businesses win the war on waste recycled options for products such as paper and stationery, enabling them to help close the loop and build a circular economy. Planet Ark was inspired to put together the new Toolkit after 3.7 million Australians watched the War on Waste in 2017, prompting an unprecedented amount of inquiries on recycling and discussions of how businesses could do their part. As a result, Planet Ark - along with its Foundation Partner the New South Wales Environment Protection Authority (NSW EPA) - has found financially beneficial and effective ways for staff and employers from businesses of all sizes to reduce waste and recycle more.
Whether they’re a brickie or a barista, everyone wants to do the right thing, but for small business owners it can be hard to find the time and money. That’s why in 2018, to mark its annual Business Recycling campaign, Planet Ark is launching a free War on Waste Toolkit for Business. The Kit contains ten tools such as the recycling no-brainer checklist, the set of questions to ask a prospective recycler and new brain science inspired signage. It also fills office managers and purchasers in on
The Toolkit encourages co-workers to get in on the act of reducing waste by suggesting reusable alternatives to single-use items like coffee cups, water bottles and shopping bags. Another bonus for small businesses is that it’s easy to get started for free. Services like Cartridges 4 Planet Ark and MobileMuster recycle workplace printer cartridges, mobile phones and accessories at no cost, whilst the National TV and Computer Recycling Scheme are also ideal for small businesses on a budget. For those businesses with high volume waste materials, there is the Small Scale Recycling Equipment Catalogue, which matches them up with suppliers of equipment including compactors and balers to reduce costs and save time and space. For more information visit www.BusinessRecycling.com.au.
7-Eleven and Simply Cups launch a recycling revolution 7-Eleven and Simply Cups have joined forces to help rescue 70 million cups from landfill each year- or two per second - and they are calling on Australians to join the revolution and help the environment. Dedicated recycling stations have been installed at more than 200 7-Eleven stores across Australia, enabling customers and members of the public to dispose of all takeaway coffee and Slurpee-type cups in an eco-friendly way. The waste will then be collected, processed and recycled on-shore by Simply Cups. Rob Pascoe, Founder of Closed Loop’s Simply Cups, said there is a common misconception that most takeaway cups are recycled but this is not case, with more than one billion ending up in landfill each year in Australia. “Takeaway cups are lined with polyethylene which prevents liquids from seeping through the cup, but also prevents the cups being
recycled through normal paper recycling facilities,” said Pascoe. Fortunately, Simply Cups has developed a homegrown solution. The company has technology that removes the plastic lining from paper-based cups so that both materials can then be processed in regular paper and plastic recycling facilities. “By collecting takeaway cups via a separate waste stream, Simply Cups can ensure that cups collected through the dedicated 7-Eleven bins will be recycled,” Pascoe added. “We’re really excited to be partnering with 7-Eleven to help solve one of Australia’s biggest waste problems.” Angus McKay, 7-Eleven Chief Executive Officer, said 7-Eleven is committed to helping the community recycle 70 million cups each year, the equivalent to the number sold instore. “As Australia’s second largest takeaway coffee
destination we have a responsibility to take the lead and find a solution to save cups from going to landfill,” said McKay. “We’re thrilled to be partnering with Simply Cups to kick start the cup recycling revolution across Australia.”
Business Franchise Australia and New Zealand 9
c ov er sto ry: B o C o n c e pt
boconcept:
A retail FRANCHISE with design in mind With a mission to achieve financial freedom by his forties, Bill Zheng took stock of his life and is now set to realise his dream with BoConcept. Joining BoConcept in 2012, Bill opened the very first Australian store and is now part of a network of 265 brand stores in 65 countries experiencing a successful growth period – achieving revenue of AU$252 million for 2016/17. Customising and designing furniture and accessories according to the needs – and dreams – of their customers, BoConcept appeals to the urban-minded. Customers can choose their own design, size, shape, colour and material of an expansive range, ensuring a co-ordinated look where design, colours and materials always match. Simplicity and functionality are at the core of BoConcept’s values, and the modern and original furniture designs are specifically designed for the urban lifestyle. As Australian cities expand up, rather than out, this lifestyle is only becoming more common. Adaptable to fit big or small spaces, clients can customise their furniture to adapt to their life and living spaces, helping them to get the most of their available space.
#BE LIKE BILL After graduating University, Bill joined a stock listed company and worked his way through to senior management. Deciding to go into business for himself, Bill – along with several business partners – opened several café businesses. However, he soon realised this would not give him the financial returns he was looking for.
This would allow him to spend time focusing on the areas he loved and did well, rather than wasting time on IT systems and creating catalogues. Bill continues, “After reading the details on their website, and completing some further research, I decided that I really liked their passion and values. I believed BoConcept were down-to-earth, honest, and customer focused, and this further encouraged me to get in touch with the head office.”
Bill opened his own 960m2 furniture retail business in 2003, selling locally made and imported furniture from China, Italy and Germany. He soon became aware of the Danish company BoConcept, famous as a global retail furniture brand and creators of outstanding modern and sophisticated living spaces.
SUPPORT OF A GLOBAL BRAND
“After a few years, running our own brand was very tiring and extremely demanding. We were constantly visiting trade shows, buying from many different suppliers, and having to enter every code into our IT systems - it was very time consuming just maintaining the IT system. But, most time-consuming was the marketing of the store, having to organise the photo shooting for each catalogue, and always struggling to get enough photos to show the room settings at their best, it is very costly to get a good catalogue done,” says Bill.
The dedicated Store Opening team at BoConcept are responsible for supporting franchisees in a wide range of aspects when opening a new BoConcept store. This varies from the Store Designers designing and completing the store layout in a range of sizes to the Opening Support team who assists the franchisee in warehouse set up, store routines and more.
After a recommendation from his Marketing Manager who loved the design and style of BoConcept, especially their marketing brochures, Bill began to explore the possibility of joining BoConcept.
10 Business Franchise Australia and New Zealand
Finding a location in Sydney for the first BoConcept site in Australia, Bill worked closely with Head Office to plan and begin the store opening process.
In conjunction with the Store Opening team, an experienced marketing team supports and advises franchisees in all communication aspects as well as provides all the international, national and local materials required to efficiently generate in-store traffic,
“The strong toolbox and support within all areas of business and retailing make the setup and management of a BoConcept store straightforward.”
AUSTRALIAN GROWTH Planning to open at least seven more stores in Australia within the next four to five years, Business Development Manager Carsten Brink says BoConcept are looking for franchise partners who have the synergy and resources to be a part of this established and proven franchise model.
including catalogues, flyers, in-store materials, advertisements, direct mails, social media content, press releases and much more. The BoConcept IT system supports the processes in the stores by making administration, reporting and performance evaluation easier to access and work with. This ensures that Bill no longer spends hours each week inputting codes into a generic stock control system. A business intelligence system has been added to enable the use of sales statistics and more from the IT system database. In addition to this, supply chain management and benchmarking are streamlined throughout the chain with logistics and performance improvements as a result.
“Franchisees don’t need interior design knowledge, but they should be businessminded, with sales and management experience, either as an existing furniture retailer or as a business owner within another industry. BoConcept also appeals to investors, as the extensive training and educational programs provide the platforms required for franchisees, store managers, interior designers and staff to operate a successful franchise store,” says Carsten. Training programs are conducted online (e-learning seminars) or within the store (‘on-the-job’) to ensure the implementation of best practice in all BoConcept stores and covers all aspects of the store - from sales and management to visual merchandising, logistics and products. The BoConcept product range includes custom wall units and designer bookshelves, a wide range of tables, stylish armchairs
and designer sofas in fabric and leather, TV units, beds and a diverse range of decoration accessories – everything needed to furnish an entire space or add some special custom pieces to an existing home.
INTERESTED? BoConcept are looking for franchisees with a passion for design and style with a willingness to lead, delegate and motivate as well as the intention and capacity to have one or more stores are encouraged. Opening his first BoConcept franchise in 2012, Bill has since opened a second Sydney store and offers this advice to anyone interested in joining BoConcept. “My advice to new franchisees is this: if you work hard and follow the concept, the financial rewards will follow. When you can achieve the financial results you are looking for, with the support of an international, established business behind you, why wouldn’t you join?” To be like Bill, and join a profitable business with a quick generating cash flow model, contact Carsten Brink today on: (+61) 474 278 485 Franchise@boconcept.com www.boconcept.com/franchise
Business Franchise Australia and New Zealand 11
fran c h i se c o u n c i l of austra l i a
Resourcing franchisees for success
Franchising, as a way of doing business, remains vitally important to Australia’s economy and to the hundreds of thousands of franchisors, franchisees and employees who rely on the sector for their livelihoods.
As a business model it is unrivalled for enabling entrepreneurship and providing small business owners with a vastly improved likelihood of success when compared to the survival rates of independently owned small businesses. These messages are vitally important but have sadly been largely lost in negative reports
about the strength of franchising in this country and incorrect associations of businessspecific failures to the franchise model itself.
The FCA is a member-based industry association. We are not a regulator, commercial advisor, ‘umpire’ or ‘enforcer’ with investigative powers. We cannot ensure franchise business success. But what we can do is aim to ensure that franchisees are equipped with the best possible chance of success by: • Gaining an awareness of the regulatory framework; • Knowing how to access available support, including dispute resolution processes; • Receiving adequate information about the nature of franchising and its diversity; and • Ensuring sufficient recognition of the need for due diligence.
12 Business Franchise Australia and New Zealand
The regulatory framework For 30 years, a sector-specific Code has regulated franchising in Australia, and in particular the conduct of parties to a franchise agreement – that’s the franchisee and franchisor – towards each other. The current revised and strengthened mandatory Franchising Code of Conduct commenced on 1 January 2015. Administered by the Australian Competition and Consumer Commission (ACCC) the Code provides a framework that aims to ensure fully informed decision-making about the choice to invest in a franchise business, accurate disclosure of the commercial proposition, mandated processes for key aspects of the franchisee-franchisor relationship, an obligation for ‘good faith’ dealings between the parties, measures to address any power imbalances and mediation mechanisms.
Melbourne. These expos are a great place to improve your franchising knowledge and speak to franchisors and franchisees from a wide range of businesses, attend free informational seminars and meet small business advisors and experts.
“Ensure that, if you do become a franchisee, you are doing so with your eyes wide open and are fully appraised of all the risks and rewards involved.”
The need for due diligence
Bruce Billson | Executive Chairman Franchise Council of Australia
The comprehensive regulatory framework provided by the Franchising Code of Conduct is supported by additional economy-wide safeguards, like unfair contract terms protections, overseen by the ACCC.
Dispute resolution mechanisms for franchisees While the recorded dispute levels in franchising have been consistently low - at less than two per cent for many years - knowing the available pathways to resolve a dispute if the need does arise is vital information to have at your fingertips. Under the Franchising Code of Conduct, franchisors are obliged to develop and communicate internal procedures for handling complaints, which seek to support early resolution. If a dispute can’t be resolved in a few weeks, the Code provides for how it should be settled by mediation, using a mutually agreed third party as a mediator if no agreement can be reached by direct negotiation. In most cases this will result in a mutually acceptable compromise to solve the problem and enable the relationship to continue. It is important too to recognise the nature of any dispute, to ensure that you can take the appropriate steps to resolve it. The Office of the Franchising Mediation
Adviser (OFMA) has been established under the Franchising Code of Conduct. The OFMA regulates the conduct of franchisees and franchisors towards each other pursuant to their franchise agreement and provides a cost-effective dispute resolution solution to the sector. OFMA is a really useful and valued support to the mediation process. The Australian Competition and Consumer Commission (ACCC) regulates the Franchising Code of Conduct and investigates alleged breaches of the Code. However, the ACCC does not investigate disputes where the issue involves an alleged breach of a franchise agreement. Litigation is considered a last resort for extreme dispute cases where mediation has not been successful.
Understanding the nature of franchising and its diversity
This cannot be overemphasised. The decision to become a franchisee is an exciting one, but it also involves a substantial financial commitment and will typically see the franchisor and franchisee joined in a legally binding commercial agreement for a number of years. It is therefore critical to ask questions and find out all the information you can about franchising and the franchise system you are considering becoming a part of. This includes engaging expert financial, legal and business advisors to ensure that, if you do become a franchisee, you are doing so with your eyes wide open and are fully appraised of all the risks and rewards involved. If you feel you can’t afford expert advice before signing on to a significant and binding business relationship and personal commitment that last many years, like a franchise agreement, perhaps think twice and even a third time about whether you can truly afford this kind of commercial investment.
The Franchise Council of Australia’s (FCA’s) website provides useful resources to help build your understanding of franchising, assess your suitability as a franchisee as well as providing questions you should ask of a particular franchised business in relation to its own activities. Read more at www.franchise.org.au
A rule of thumb I have heard and think has a lot of merit is to spend one hour for every $1000 you are considering committing to a franchise commercial opportunity to make sure you have truly done your homework and have carefully weighed the risks and benefits, rewards and obligations of a franchise business investment.
The FCA also supports the Franchising and Business Opportunities Expo, which is held annually in Sydney, Perth, Brisbane and
A final word The FCA is continuing its work to ensure that prospective franchisees are well resourced and educated about franchising, grievance procedures and the regulatory and safeguard mechanisms available within franchising. The FCA’s work in this regard builds from the undeniable premise and guiding belief that ‘successful franchisees are the foundation of a healthy franchise sector’ and we look forward to sharing more about this with the franchise community in the coming months. www.franchise.org.au
“The FCA is a member-based industry association. We are not a regulator, commercial advisor, ‘umpire’ or ‘enforcer’ with investigative powers.”
Business Franchise Australia and New Zealand 13
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Five Disruptive Trends You Can’t Afford to Ignore Any experienced surfer knows how important it is to keep one eye fixed on the horizon. While a wave is still forming a long way off, that is the time to start paddling, to get into position and get ready. Leave it too long or fail to move at all, and you’ll be wiped out as the wave crashes you. It’s much the same when looking to ride the waves of change. Smart individuals recognise how important it is to have one eye firmly fixed on what lies ahead. Failing to identify and prepare the waves of change will set any business or professional on a collision course with irrelevance or annihilation. In the words of London Business School professor Gary Hamel, “You can’t outrun the future if you don’t see it coming.” Having spent much of the last decade interacting with and interviewing some of the brightest and most visionary thinkers on the planet, none of us can afford to ignore these trends as they define the coming 10 - 15 years;
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The Rise of the Robots
“Smart individuals recognise how important it is to have one eye firmly fixed on what lies ahead. Failing to identify and prepare the waves of change will set any business or professional on a collision course.”
For many of us, the very mention of Artificial Intelligence (AI) conjures up futuristic notions of Skynet and the malevolent robots that rose up to destroy humankind in the Terminator film series.
While the ethical and moral implications of AI are still up for debate, what’s clear is that this automation technology will dramatically impact every single one of us. A few years ago, researchers at Oxford found that as many as 47 per cent of employment had a ‘high risk of computerisation’ by the early 2030s.
Computers are getting smarter with every passing day – some even predict that they’ll overtake human intellectual capacity by as early as 2029. In this brave new age of hyper-intelligent machines, it will be uniquely human capabilities like intuition, judgement, empathy and creativity that will matter most.
Michael McQueen | Author
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A World without Drivers Despite recent setbacks, the driverless age is far closer than most of us realise. Tony Seba and James Arbib of the think tank RethinkX predict that by 2027, 90 per cent of passenger miles each year will be travelled in autonomous vehicles and that many of those vehicles will not be owned by the ‘driver’. Instead, this 90 per cent of travel will be done in driverless Uber-style vehicles, which will make up 60 per cent of the vehicles on the road. Even if Seba and Arbib are a few years ‘off’ in their prediction, what’s clear is that mobility is about to change forever.
Consider this: within 25 to 30 years, owning a car could be like owning a horse today — something you do if it’s a passion or hobby, but not as your primary mode of transportation. Barclays Capital analyst Brian Johnson has said US vehicle sales will likely decline by 40 per cent by 2040. Not only will we increasingly choose not to purchase cars but we’ll soon stop paying to park them too. In a driverless age, a vehicle may drop you at the desired destination and then head off to a designated wait area or perhaps even drive home, only to return and pick you up when you need it.
“The years to come will likely see 3D printing become mainstream in some powerfully disruptive ways.”
The auto insurance industry specifically is set for a massive shakeup as driverless cars become mainstream. After all, if you do happen to be unlucky enough to have an accident in an infinitely safer driverless vehicle, who will actually be at fault? By extension, what would the purpose of car insurance be? KPMG estimate that as much as 80 per cent of auto insurer’s revenues could evaporate in coming decades.
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The years to come will likely see 3D printing become mainstream in some powerfully disruptive ways. In their book Abundance: The Future is Better Than You Think, Peter Diamandis and Steven Kotler name 3D printing as one of the world’s most exciting new technologies — referring to it as the ‘democratisation of distribution’.
To see how 3D printing could change the game and tip the scales of power toward consumers, consider recent advancements in the printing of consumer goods such as shoes.
In the past few years, all the major shoe manufacturers have taken significant steps toward 3D printing. New Balance CEO Robert DeMartini recently reported that his company was working on a design for 3D-printed running shoes. “It’s really just the beginning,” DeMartini said. “As personalisation
3D Printing 3D printing is far from a new technology. Hideo Kodama of Japan’s Nagoya Municipal Industrial Research Institute invented the first working 3D printer as far back as 1982. Since then, 3D printing technology has remained at the fringes of commerce — mainly used for prototypes, architecture, construction, aerospace or the military.
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“The emergence of virtual currencies and the blockchain technology that underpins them represents the most significant change to financial services in decades and possibly centuries.” takes the next step, and as the 3D ecosystem gains steam, we’re envisioning being able to print these in consumers’ homes.”
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Blockchain The emergence of virtual currencies and the blockchain technology that underpins them represents the most significant change to financial services in decades and possibly centuries. While Bitcoin has had a spectacularly dramatic last 12 months, the fluctuating value of cryptocurrencies isn’t where the real story is.
Known technically as ‘distributed ledger technology’, a blockchain is essentially a secure protocol where a network of computers collectively verify a transaction before it can be recorded and approved. Blockchain could be an enormous opportunity for banks and financial institutions to improve customer service and efficiency.
Blockchain will also significantly impact the real estate industry as it will allow anyone to manage, track, and transfer land titles and property deeds — with no need for intermediaries or the fees they charge.
Other professionals including journalists, insurance brokers and academics will likely see the impact of Blockchain due to research-driven applications of the technology.
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Nanotechnology Defined as the branch of technology that deals with the manipulation of individual atoms and molecules, nanotechnology has long been a source of fascination for scientists and futurists alike. It is estimated that currently 3 - 4 nanotech products are hitting the market every week and are having a significant impact on product design and functionality.
solar surfaces will be able to split water via electrolysis and generate hydrogen to run a fuel cell – thus significantly disrupting the revenue models of battery manufacturers and utilities providers. Scientists at the Hong Kong Polytechnic University have even developed nanothin particles of titanium dioxide fabric which will use natural or ultraviolet light to self-clean clothes without the need for detergents. As we consider the road ahead, there is one great universal and levelling truth: the future will impact us all and only we can decide what sort of impact that will be. To paraphrase the great Chinese philosopher Lao Tzu, resisting change is like trying to hold your breath – even if you’re successful, it won’t end well. So, get ready – it’s time to lift our eyes to the horizon and get in position to ride the waves of change that are already taking shape.
For instance, nanotechnology is already allowing tennis balls to last longer, wounds to heal more quickly due to bandages infused with silver nanoparticles, and specially-designed socks that actively fight odour and regulate temperature.
Michael McQueen is a five-time bestselling author, trends forecaster and keynote speaker. His latest book How to Prepare Now for What’s Next examines the key disruptions that will shape the coming decade and outlines a game plan for staying one step ahead of change. For more information, visit:
Within a few short years, nanotech
www.michaelmcqueen.net
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pr o file : M A D M E X
JOIN THE FAMILIA Since starting out in 2007, Mad Mex has long held the title of best Baja-style burritos in Australia. The casual dining Mexican restaurant brand has built a network of 70 restaurants in both Australia and New Zealand. The franchise chain features an authentic Baja Mexican menu based on a fusion of Southern Californian and Northern Mexican cuisine. With an emphasis on freshness, every Mad Mex restaurant prepares guacamole, salads and salsas, along with slow roasted and grilled meats daily. Servicing over 90,000 customers each week, the brand has successfully created a combination of restaurant formats consisting of food courts, shopping centre entertainment and leisure precincts, airports, train stations and high street locations. Mad Mex and its people are; “a little bit cheeky, a little quirky and a whole lot of fun.” While the edgy brand tends to attract younger demographics, Mad Mex and its range of healthy options appeal to consumers of all ages, especially those seeking out food trends that emphasise clean eating, high sources of protein and vegan friendly options. With authentic meals made fresh-to-order and tailored specifically to personal tastes and dietary requirements, Mad Mex is perfectly
aligned with the needs of increasingly health conscious consumers. Driven by a passion to deliver a healthy Mexican food experience to diners, the company has received countless national and local awards, contributing to the brand’s growing reputation as an excellent franchise chain. The Mad Mex ethos around franchising is all about its people. A great brand is heavily reliant on those who are a part of it. Good character is a primary requisite, after which passion and talent must follow. Mad Mex is in the service industry, meaning franchisees must love serving people and exceeding expectations. By joining the Mad Mex La Familia, you will be part of a solid foundation, so people are free to focus on leading, coaching and developing their teams. Mad Mex provides every franchisee with a platform to deliver great customer service and an impressive dining experience. With this in mind, there are seven core elements that supports this: Franchise selection: It is crucial that franchisees are ‘on brand’ when hiring, training and leading the in-store team in order to deliver the complete Mad Mex experience. Store development: The ingredients to developing a new store consist of a great site, lease negotiation, detailed design and project management.
Training: Comprehensive training during the first six weeks is a must, along with an ongoing investment in upskilling. Ongoing support: Franchisees regularly receive help to develop and execute comprehensive business growth and development plans. Product development: Innovation is key to customer satisfaction. It is an expectation from consumers that we work to continuously develop new and exciting food products. Marketing support: How the brand is marketed will shape the way consumers perceive Mad Mex and what we’re about, so it’s crucial to never loses site of the values and ideals we would never compromise on. Here at Mad Mex it’s brand first then products and promotions. Supply and distribution: Supplier issues can quickly hamper franchisor relationships if not dealt with rápido. Franchisees should expect nothing less than great pricing, quality and distribution, with the franchisor required to ensure this area of the business is as robust and efficient as possible. Mad Mex lives strongly by our values and expects franchisees and staff to do the same. For us, this means being ‘cheeky, authentic & connected’. There’s a lot sitting behind these three words, but by bringing them together you can build a great team and an even greater business. www.madmex.com.au/franchise
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Become Your Own
HEAD HONCHO Invest in a brand that offers the highest quality and freshest Baja-style Mexican. With guacamole, meat and salsas made in our restaurants fresh every morning, you can be part of something unique. JOIN THE FAMILIA
madmex.com.au/franchise
Business Franchise Australia and New Zealand 19 MM_Franchise_Press_AD_17.indd 1
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Why thank you matters more than money “Giving thanks as soon as the opportunity presents allows people to not only be energised but also learn from the things that go well.” Karen Gately | Founder and Leadership & People-Management Specialist | Ryan Gately
How do you feel when someone says thank you? Whether it be for our efforts, or achievements, most people appreciate being told they are appreciated. Assuming sincerity in its delivery, a simple ‘thank you’ can go a long way to making people feel valued and respected. Now contemplate the extent to which being paid a bonus makes you feel appreciated. While of course most of us feel good about being given more money, in the absence of sincere gratitude from our employer, a bonus is unlikely to have any real impact on neither our spirit or performance. There is of course some truth in the influence targets and bonuses can have on performance, particularly in roles focused on sales and capital raising. However, consider how unlikely someone is to perform at their best if despite being highly paid they feel undervalued. All too often I meet high income earners who are unhappy at work, because no one takes the time to say thank you.
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Research consistently shows that when people believe their salary is fair, relative to what they can earn in a similar role elsewhere, non-financial rewards are far more effective, when it comes to building long-term employee engagement. Gallop research, spanning four million employees worldwide, reveals an undeniable link between recognition and organisational performance: Recognition not only boosts individual employee engagement, but also it has been found to increase productivity and loyalty to the company, leading to higher retention. It’s common for people to complain of rarely receiving the thanks they feel they deserve. All too often I observe leaders falling into the trap of being busy and as a consequence limiting their focus on what needs fixing. While tackling under performance matters, leaders are wise to look also for opportunities to thank people and let high performers know they are truly valued. Reflect for a moment on how often you say thank you to the people you lead, or the colleagues you work with. If you do say thank you, how well are you delivering the messages you want people to hear? Among the most important steps anyone can take to optimise
“Research consistently shows that when people believe their salary is fair, relative to what they can earn in a similar role elsewhere, non-financial rewards are far more effective, when it comes to building long-term employee engagement.” the positive impact of the thanks we give, include these. Get on with it. Waiting for any length of time to thank someone dilutes the strength and impact of your message. Consider for a moment how much more likely you are to be energised by thanks received soon after you have done something well; as opposed to sometime down the track, when your memory of the experience is beginning to fade. Giving thanks as soon as the opportunity presents allows people to not only be energised but also learn from the things that go well. The more someone can remember about the efforts they are being thanked for, the more likely they are to cement positive learnings from the experience. Be present. Have you ever wondered if someone truly meant the thanks they offered, because they lacked attentiveness in the moment? While a passing comment delivered while focused on other priorities may be better than nothing, it’s unlikely to have optimal impact. Create the time and space needed to sincerely connect with the individual you are
thanking. Pay full attention to them, even for just a moment, and they’re more likely to feel sincerity in your message. Make things personal. Tailoring your approach to each individual you work with is essential. Take the time to understand people and how to best communicate thanks to them. While some people for example may enjoy being thanked publically, others consider that a punishment and would prefer a more discreet approach. Karen Gately, a founder of HR Consultancy Ryan Gately, is a leadership and peoplemanagement specialist. Karen works with leaders and HR teams to drive business results through the talent and energy of people. She is the author of The People Manager’s Toolkit: A Practical guide to getting the best from people (Wiley) and The Corporate Dojo: Driving extraordinary results through spirited people. For more information: info@ryangately.com.au www.ryangately.com.au
Business Franchise Australia and New Zealand 21
sna ps h ot: mail boxes etc.
MBE: A customised franchise offering Mail Boxes Etc. (MBE) have long been known as the franchise with three businesses in one – freight, printing and mail box services. This unique multi-product franchise has achieved great success over the last 30 years and are now looking for new franchisees to join them as they enter a new era of growth. Franchise Development Manager Paul Kasper and the team at MBE recognise that franchisee and customer needs are starting to shift, and Paul is leading a format change that can mean significant cost savings to the franchisee. With over 2,600 affiliated Centres worldwide, MBE is expanding globally and now includes brands such as Postnet and Alpha Graphics. MBE’s footprint in the Australian marketplace has always been consistent, but new outlets can take on a kiosk format rather than a traditional retail outlet. This gives the franchisee the option to focus on services other than printing. The kiosk format also means that less floorspace is required, which means a lower lease cost, and an even more affordable franchise.
THREE BUSINESSES IN ONE
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Shipping from point A to point B will always be a necessity. With the world now open on an international scale for commerce and shopping alike, freight and courier services are a growth industry. MBE offer a full range of courier, shipping and freight services. From overnight, domestic and international couriers, packing and shipping and track and trace through to freight services and logistics, MBE have customers’ needs covered.
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Franchisees with the smaller kiosk footprint do not require the full range of printing machinery within the centre, but along with the traditional retail outlets, still offer the full range of printing services. These include brochures, business cards, business stationery, catalogues and manuals,
newsletters and flyers as well as design and finishing services.
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Convenient and secure private mail box services are also part of the franchise package. Outlets offer private mail box services, mail forwarding and redirection, mail and parcel notification and DX Mail Services.
NO EXPERIENCE NECESSARY On the search across all states and territories, MBE are looking for owner-operators who are open to the possibilities available to them. Requirements include being driven and selfmotivated. Business ownership experience is not necessary, although an understanding of business is, and franchisees must be team players with the ability to communicate and work well with others. Paul says, “A mantra that I have always followed is that people buy from people. This means it’s important to the network and our customers that we find the right people to join our franchise system.” If you’re a match for MBE, you will become a part of a dynamic franchising community. You’ll receive full support from the MBE head office dedicated to providing guidance, consulting and all the resources you need to make your MBE franchise successful.
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A comprehensive six-week training program will cover all aspects of running your centre and you also receive ongoing training, utilising MBE’s Online Training Academy and valuable support from the head office team. This includes administration and accounting training plus a comprehensive quarterly marketing action plan. Produced by the marketing department, this assists franchisees with local area marketing and seasonal advertising, with easy-to-use templates and artwork to achieve successful marketing. MBE’s Franchise Conference is also popular within the network, with an attendance by more than 85 per cent of the franchisees. Held in the Barossa Valley earlier this year, the focus was innovation, both in the network and the industry in general, to capitalise on market share. Featuring motivational speakers and presentations on a range of topics, this was an opportunity for franchisees to come together and share best practices and support each other. If you are interested in joining the wellestablished global franchise network, contact Paul Kasper now for more information on: 0424 144 035.
Extremely good returns from only 2-4 staff, a stock holding of less than $15k & most importantly, we’re CASH on delivery - no chasing money or bad debts. This 5½ day franchise provides the desirable combination of owning your own business and having time off to enjoy life. We seek professional, well organized people with the desire to own a franchise business. Industry experience is not a prerequisite as your role is to manage the business, the staff, control sales & service the customer. This is a huge growth industry where only recognised brands will grow into the future.
Opportunities in WA & SA for new & existing Franchises Go to www.automasters.com.au
Business Franchise Australia and New Zealand 23
anz m ob i l e l en d i n g
old fashioned banking the modern way ANZ Mobile Lending was established in 2004 when the bank took a bold step by introducing a franchise model to its home loan distribution channel. Although not a stranger to franchising businesses via aggregators and brokers, ANZ was the first and is still the only bank of the ‘Big 4’ to franchise its own brand.
ANZ engaged the help of industry experts and developed the original territories which were sold to a handful of pioneering franchisees. At the time, the franchisees were provided with a map specifying their marketing territories, a laptop, printer, home loan products and interview training. Leveraging ANZ’s well established brand, the early franchisees were successful in growing their businesses, with several realising the potential of the business and reinvesting into the model by purchasing further territories. Mobile Lending soon became one of the fastest-growing areas of ANZ, as it provided
“ANZ is considered to be one of the most recognised brands in Australia. Ongoing marketing and brand exposure greatly assists mobile lending to be recognised Australia wide. Access to systems, processes and expert knowledge from ANZ all supports the mobile lending business grow and succeed.” – Adam Humble, WA, Franchisee
customers with the opportunity to meet with an ANZ representative outside of the standard banking hours. The service provided by mobile lenders has become known as ‘old fashioned banking in the modern day’. This level of customer service is due to mobile lenders investing in their business and having a long-term relationship focus with ANZ customers. Over the past five years ANZ has focused on developing ANZ Mobile Lending into a premium franchise model. With extra staff added to the team, Mobile Lending continues to grow its lending footprint as well as the size of its franchise businesses. The team supporting the franchise business is called the ‘Franchise Partnerships’ team, because at the core all team members truly believe they are in partnership with the franchisees to make their businesses a success. ANZ franchisees are also able to leverage Australia Marketing to help promote their businesses. In 2016, ANZ appointed Kate Thomson as the General Manager of the business to further develop the franchise business model. Kate is a franchising expert who quickly progressed through the ranks of McDonald’s to Senior Management roles, including developing and executing on business strategy, franchising operations, communications, engagement and business development. In her time within franchising, Kate has developed significant experience in building cultures of strong engagement with franchisees and has become very passionate about it. In March of this year, Kate won the Franchise Council of Australia’s 2018 Woman of the Year NSW/ACT for her contribution to the franchising industry as well as her work at ANZ. As the General Manager, Kate’s role is to lead and grow the Mobile Lending franchise, to increase business performance and continue to evolve the franchise model. “My strong belief is that collaboration is the key to success – in franchising it is vital we focus on achieving success together.” Under Kate’s leadership the system continued to evolve and ANZ now offers
24 Business Franchise Australia and New Zealand
Kate Thomson - NSW/ACT Franchise Woman of the Year 2018
their franchisees a lot more than the laptop, printer and basic training of the early days. Franchisees entering the Mobile Lending model now have access to an extensive induction program focusing on customer and sales training, regular coaching with a dedicated Regional Manager and access to franchise system marketing. A documented lifecycle process assisting in the entry, growth and exit of franchisees, along with a holistic performance management framework and preferred supplier agreements and service support model, ensures franchisees are well equipped. Over the past two years there has been an increased focus on working together within the model to lift the professional profile of the Mobile Lending brand. Collaboration is at an all-time high with the revamping of the Franchise Advisory Council and the introduction of a number of sub councils, run by peer nominated franchisees from each state, all are instrumental in driving the future of the franchise model. Today, Mobile Lending has a national territory model consisting of 200 territories and a network of more than 160 franchise businesses operating throughout Australia. The lending model has evolved from home lending to include personal lending, as well as being a
ANZ Mobile Lender Greg Edgcumbe – Melbourne CBD & Albert Park
central contact for a customer banking needs. The key driver of the success of this business model is the long-term connection we are able to create with our customers by providing them with a seamless experience when dealing with ANZ. Our franchisees are driven business leaders and above all are passionate about delivering outstanding customer service with every interaction. Mobile Lending offers many opportunities for a small business owner including flexibility
“There are many lending franchises outside of ANZ, however “Research consistently people believetotheir ANZ is the only businessshows model that that when will allow someone run salary is fair, relative to what they can earn in a similar role their own business as an official major bank lender. This is why elsewhere, non-financial are best far more ANZ is uniquerewards and is the fit foreffective, me.” when it comes to building long-term employee engagement.” – Sam Bitar, VIC, Franchisee
of hours, working with award winning ANZ products and becoming part of the ANZ Mobile Lending franchisee community, which has a supportive and welcoming culture for our new comers. The ANZ purpose is “to shape a world where people and communities thrive”; Mobile Lending has taken this to heart and believes that the business model supports this by working in partnership with its small business franchisees, and building a culture based around integrity, customer service and doing their best for customers. “We are really proud of the culture we have created in our business, the way we work with our franchisees and the experience we provide our customers,” says Kate Thomson. Contact ANZ Mobile Lending for more information via: 1800 805 805 ANZMobileLending@anz.com www.mobilelending.anz.com
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pr o file : B EG I N B R I G H T
A BRIGHT FUTURE WITH BEGIN BRIGHT
Leading School Readiness and Primary Tutoring franchise, Begin Bright has 30 centres across Australia. Get to know Franchisee Bridie Archer from Begin Bright Croydon, Victoria.
Bridie Archer opened her Melbourne School Readiness and Primary Tutoring centre in January 2016. Begin Bright Croydon quickly grew and has become a well-known, respected and trusted business supporting many children through our School Readiness, Primary Tutoring and School Holiday Workshop programs. At the 2016 National Begin Bright Conference, Bridie won the New Franchisee of the Year award and in 2017 Bridie was awarded Franchisee of the Year – two great efforts that reflect her accomplishments and dedication to building a successful centre.
Bridie has over 10 years’ experience as a Primary and Secondary school teacher plus training many educators, however she had little experience in running her own business. As well as juggling three children, Bridie now runs a successful Begin Bright centre with a team of teaching staff. “I love being my own boss, I like being flexible with my teaching and forming relationships with people as they come into the centre.” To be a Begin Bright franchisee you do not need experience in education. Our programs are written by teachers, based on the Australian National Curriculum and cross checked by our experienced learning designers. We just require all teaching staff to hold a current teaching qualification. Begin Bright provides support with set up and all on-going training ensuring that all franchisees are fully equipped - enabling everyone to focus on running a successful and fulfilling business that plays to their strengths.
About Begin Bright Founded in 2008, franchised in 2011, growing to 30 centres across Australia and delivering 84,000 sessions a year, Begin Bright focuses on creating happy, smart and confident children through our awardwinning School Readiness program and our Primary Tutoring classes. Designed to develop and support children, Begin Bright centres ensures they are given the greatest opportunity to grow into well-rounded, engaged learners, capable of fulfilling their utmost potential. Becoming a Begin Bright Franchisee means joining a team that is focused on helping you deliver great results and great profits. At Begin Bright, we combine our passion for children’s education with commercial expertise. If you have: • Passion, commitment and drive, • Strong leadership skills, • Good people skills, • Entrepreneurial flair and a business mind, and • An ability to have fun and work with an energetic and vibrant organisation ...enquire now to find out more about becoming a Begin Bright franchisee. Brighten your future with Begin Bright www.beginbright.com.au/franchise
“Running my own business with the support of a franchise network has given me more confidence in many areas of my life, in addition to having flexibility to enjoy my family, I am proud to be a respected and trusted business owner in my community.“
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e ow is n ch ies ! an it le Fr rtun ilab a po av op
®
JOIN AUSTRALIA’S LEADING SCHOOL READINESS AND PRIMARY TUTORING FRANCHISE
OWN A BEGIN BRIGHT CENTRE IN 5 EASY STEPS: 1. REGISTER ON OUR WEBSITE 2. MEET OUR TEAM 3. SUBMIT AN APPLICATION 4. SECURE YOUR TERRITORY 5. BEGIN YOUR TRAINING
Enquire today: www.beginbright.com.au/franchise
Business Franchise Australia and New Zealand 27
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I’m a franchisee.
What are my ongoing obligations? Running a franchised business offers many advantages over other types of businesses. A franchisee has access to not only ongoing support and training, but also predetermined systems and processes to help sell the franchise network’s products and services. As a highly regulated area of the law, franchisees must adhere to strict legal obligations. This article sets out the key ongoing obligations as a franchisee. Franchise agreement Your franchise agreement is a specific contract formalising your relationship with your franchisor. Along with the Franchising Code of Conduct (the Code) and related documents (such as a lease/licence agreement and an Operations Manual), your franchise agreement is a fundamental source of your roles and responsibilities and those of your franchisor. You should therefore have a good understanding of your written agreement. Your franchise agreement typically includes exhaustive lists of what your franchisor expects of you.
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For example, it may include information on:
“The statutory obligation to act in good faith applies equally to people negotiating the purchase of a franchise business and franchisees who have already signed a legally binding contract.”
• the range of products and services you must offer to customers; • maintaining any equipment and premises; • ordering supplies; • what fees you are required to pay to the franchisor (including interest for late payments);
Amritha Thiyagarajan | Senior Lawyer | LegalVision
• activities for which you have to obtain the franchisor’s prior written consent; • ongoing reporting (e.g. sales and customer complaints); and • notices to provide to the franchisor if specific events occur (e.g. a change in shareholders of the franchisee company). If you are concerned that you may have potentially violated a part of your franchise agreement, you should obtain expert legal advice immediately – don’t wait until you receive a breach notice. By being proactive, you can try and mitigate the issue and remedy the breach before your franchisor formally escalates the issue.
Operations manual Most franchisors have an operations manual – a document detailing the standards and procedures that apply to all businesses within a particular franchise network. A franchise agreement may contain a clause saying that it is compulsory for franchisees to follow the manual. In such circumstance, the manual becomes a binding contract between the franchisor and yourself, as the franchisee. Further, it may state that failure to comply with the manual constitutes an infringement of the contract. If your franchise agreement contains such a clause, take the time to review each chapter of the manual and understand exactly what the franchisor expects of you. An operations manual may include: • requirements around software; • upselling products and services; • advertising strategies; and • which suppliers you can use to purchase products. If you do not understand a particular procedure that you are expected to follow, clarify such with your franchisor as soon as possible. Doing so shows that you are still taking reasonable steps attempting to meet your obligations.
Good faith If you entered into your franchise agreement or your contract was varied or transferred (e.g. to a different franchisee entity) after 1
January 2015, you must act in good faith in all dealings with your franchisor. The good faith obligation is set out in the Code and applies equally to your franchisor. Even if you purchased your franchise before 2015, courts in Australia found that there can still be an implied responsibility to act in good faith. Such obligation is known as a common law obligation. It refers to a requirement developed through court decisions. Contrastingly, the obligation under the Code is known as a statutory rule.
• taking into account the franchisor’s commercial interests; and
The statutory obligation to act in good faith applies equally to people negotiating the purchase of a franchise business and franchisees who have already signed a legally binding contract.
• refusing to engage properly in the dispute resolution process.
For example, acting in good faith encompasses: • being honest; • co-operating with the franchisor;
• acting in accordance with your legitimate business needs (rather than a hidden, noncommercial agenda). Acting contrary to your obligation of good faith may, for example, include: • arbitrarily issuing breach notices; • trying to terminate your contract using baseless allegations; • aggressively pressuring the franchisor; or
Laws for Australian franchises Apart from your contract and franchisespecific laws, you also need to comply with any other regulations that may apply to your particular franchised business, such as the following.
Business Franchise Australia and New Zealand 29
e x pert a dv i c e
to get business and accounting advice to complement legal advice. Doing so assists in ensuring compliance with your responsibilities throughout the term of your franchise.
Dispute resolution If you believe your franchisor is not compliant with its responsibilities, and you want to start a formal dispute, you must issue a written notice in a particular format. In the notice, you have to set out: • exactly what the dispute is, • your desired resolution, • what you want your franchisor to do, and • how long they have to take these steps.
“The Food Standards Australia New Zealand Act 1991 regulate how you can manage and sell your food products. They include standards you must meet to ensure your food is of high quality and suitable for human consumption.” Employment laws If you hire staff to work in your franchise, it is essential to adhere to the Fair Work Act 2009 (Cth) and other employment laws especially when hiring and paying employees and dealing with disputes. It’s important to ensure all of your employees have an employment agreement governing your relationship with them. The agreement should contain critical matters like salary, leave, entitlements and ways to resolve a dispute if one arises.
manage and sell your food products. They include standards you must meet to ensure your food is of high quality and suitable for human consumption.
Licensing laws
Workplace health and safety laws
Depending on what product or service your franchise provides, you should ensure you comply with any required licensing laws. For example, if you sell alcohol, you must hold a valid liquor licence. Further, employees handling the alcohol must have an additional responsible service of alcohol qualification.
Workplace health and safety (WH&S) laws require you to:
Privacy laws
• provide a healthy and safe working environment for your employees, contractors and visitors to your workplace; • proactively protect them from injury and illness; and • promote their welfare. To implement such laws, you must have a WH&S policy outlining your procedures and expectations for your employees to also comply with the law.
If your franchise collects personal information, you may need to comply with the Privacy Act 1988 and the Australian Privacy Principles. Having a well-drafted privacy policy in place allows you to state : • what information your franchise collects; • whether your franchise exchanges information with third parties; • how an individual can correct their information and complain about a breach;
Food safety laws
• Your process for dealing with complaints about privacy.
If your franchise sells or handles food, food safety laws like the Food Standards Australia New Zealand Act 1991 regulate how you can
It is important to consider other general obligations that apply to any small business – such as taxation. It is always a good idea
30 Business Franchise Australia and New Zealand
If you are unable to resolve the dispute internally and within three weeks, you can mediate the dispute in accordance with the Code. Attendance at mediation is compulsory for both yourself and the franchisor. However, compulsory mediation doesn’t prevent either party from starting proceedings in a court.
Key takeaways Being aware of and complying with your ongoing obligations as a franchisee is important – if you violate a rule under the Code, the franchise agreement, or your operations manual, your franchisor can issue you with a breach notice. If you ignore that breach notice and do not attempt to remedy such, your franchisor can rely on this notice as a basis to terminate your franchise. To ensure that you comply with your ongoing obligations as a franchisee, get in touch with one of LegalVision’s franchising lawyers. Amritha Thiyagarajan is a Senior Lawyer at LegalVision, working with franchisees and franchisors across a variety of industries. She has worked previously as a litigation lawyer at a top-tier international law firm. LegalVision is a market disruptor in the commercial legal services industry. Their innovative business model and custombuilt technology assist their lawyers to provide a faster, better quality and more cost-effective client experience. LegalVision is a leader in delivering legal services in Australia and has assisted more than 50,000 businesses. The firm was awarded NewLaw Firm of the Year at the 2017 Australian Law Awards and was named 2018 Fastest Growing Law Firm in APAC by the Financial Times. 1300 544 755 www.legalvision.com.au
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Get the App C OV ER STO RY: B o C o n c e pt
BoConcept:
A RETAIL FRANCHISE WITH DESIGN IN MIND With a mission to achieve financial freedom by his forties, Bill Zheng took stock of his life and is now set to realise his dream with BoConcept. Joining BoConcept in 2012, Bill opened the very first Australian store and is now part of a network of 265 brand stores in 65 countries experiencing a successful growth period – achieving revenue of AU$252 million for 2016/17. Customising and designing furniture and accessories according to the needs – and dreams – of their customers, BoConcept appeals to the urban-minded. Customers can choose their own design, size, shape, colour and material of an expansive range, ensuring a co-ordinated look where design, colours and materials always match. Simplicity and functionality are at the core of BoConcept’s values, and the modern and original furniture designs are specifically designed for the urban lifestyle. As Australian cities expand up, rather than out, this lifestyle is only becoming more common. Adaptable to fit big or small spaces, clients can customise their furniture to adapt to their life and living spaces, helping them to get the most of their available space.
#BE LIKE BILL After graduating University, Bill joined a stock listed company and worked his way through to senior management. Deciding to go into business for himself, Bill – along with several business partners – opened several café businesses. However, he soon realised this would not give him the financial returns he was looking for.
This would allow him to spend time focusing on the areas he loved and did well, rather than wasting time on IT systems and creating catalogues. Bill continues, “After reading the details on their website, and completing some further research, I decided that I really liked their passion and values. I believed BoConcept were down-to-earth, honest, and customer focused, and this further encouraged me to get in touch with the head office.”
Bill opened his own 960m2 furniture retail business in 2003, selling locally made and imported furniture from China, Italy and Germany. He soon became aware of the Danish company BoConcept, famous as a global retail furniture brand and creators of outstanding modern and sophisticated living spaces.
SUPPORT OF A GLOBAL BRAND
“After a few years, running our own brand was very tiring and extremely demanding. We were constantly visiting trade shows, buying from many different suppliers, and having to enter every code into our IT systems - it was very time consuming just maintaining the IT system. But, most time-consuming was the marketing of the store, having to organise the photo shooting for each catalogue, and always struggling to get enough photos to show the room settings at their best, it is very costly to get a good catalogue done,” says Bill.
The dedicated Store Opening team at BoConcept are responsible for supporting franchisees in a wide range of aspects when opening a new BoConcept store. This varies from the Store Designers designing and completing the store layout in a range of sizes to the Opening Support team who assists the franchisee in warehouse set up, store routines and more.
After a recommendation from his Marketing Manager who loved the design and style of BoConcept, especially their marketing brochures, Bill began to explore the possibility of joining BoConcept.
T H E
Finding a location in Sydney for the first BoConcept site in Australia, Bill worked closely with Head Office to plan and begin the store opening process.
In conjunction with the Store Opening team, an experienced marketing team supports and advises franchisees in all communication aspects as well as provides all the international, national and local materials required to efficiently generate in-store traffic,
M A G A Z I N E
F O R
F R A N C H I S E E S
“The strong toolbox and support within all areas of business and retailing make the setup and management of a BoConcept store straightforward.”
VOL 12 ISSUE 04 MAY/JUNE 2018
and designer sofas in fabric and leather, TV units, beds and a diverse range of decoration andin NEW ZEALAND Planning to open atAUSTRALIA least seven more stores accessories – everything needed to furnish an Australia within the next four to five years, entire space or add some special custom pieces Business Development Manager Carsten to an existing home. Brink says BoConcept are looking for franchise partners who have the synergy and INTERESTED? resources to be a part of this established and BoConcept are looking for franchisees with a proven franchise model. passion for design and style with a willingness “Franchisees don’t need interior design to lead, delegate and motivate as well as the knowledge, but they should be businessintention and capacity to have one or more minded, with sales and management stores are encouraged. experience, either as an existing furniture
AUSTRALIAN GROWTH
BoConcept
including catalogues, flyers, in-store materials, advertisements, direct mails, social media content, press releases and much more. The BoConcept IT system supports the processes in the stores by making administration, reporting and performance evaluation easier to access and work with. This ensures that Bill no longer spends hours each week inputting codes into a generic stock control system. A business intelligence system has been added to enable the use of sales statistics and more from the IT system database. In addition to this, supply chain management and benchmarking are streamlined throughout the chain with logistics and performance improvements as a result.
A RETAIL FRANCHISE WITH DESIGN IN MIND
retailer or as a business owner within another industry. BoConcept also appeals to investors, as the extensive training and educational programs provide the platforms required for franchisees, store managers, interior designers and staff to operate a successful franchise store,” says Carsten. Training programs are conducted online (e-learning seminars) or within the store (‘on-the-job’) to ensure the implementation of best practice in all BoConcept stores and covers all aspects of the store - from sales and management to visual merchandising, logistics and products. The BoConcept product range includes custom wall units and designer bookshelves, a wide range of tables, stylish armchairs
10 Business Franchise Australia and New Zealand
Opening his first BoConcept franchise in 2012, Bill has since opened a second Sydney store and offers this advice to anyone interested in joining BoConcept. “My advice to new franchisees is this: if you work hard and follow the concept, the financial rewards will follow. When you can achieve the financial results you are looking for, with the support of an international, established business behind you, why wouldn’t you join?”
ON THE ROAD TO SUCCESS
To be like Bill, and join a profitable business with a quick generating cash flow model, contact Carsten Brink today on: (+61) 474 278 485 Franchise@boconcept.com www.boconcept.com/franchise
Business Franchise Australia and New Zealand 11
$6.95 (AUD), $7.95 (NZ) inc. GST.
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www.businessfranchiseaustralia.com.au 32 Business Franchise Australia and New Zealand
VOL 12 ISSUE 04 mAY/JUNE 2018
the value of connecting with the franchise network on the road to
SUccess Q&A
with ecomist australia
fixed site v mobile franchises Which one’s for you?
Business Franchise Australia and New Zealand 33
FE ATUR E : fi x ed v ’s m ob i l e fran ch ises
fixed site v mobile franchises Which one’s for you?
34 Business Franchise Australia and New Zealand
Deciding which kind of franchise is right for you is one of the greatest decisions you will make when entering the world of franchising. In this edition of Business Franchise Australia & New Zealand we take a look at home based franchises and mobile franchises. Apart from the obvious difference between these two kinds of franchise businesses, each in fact share a number of similarities – including (sometimes) lower start-up costs, and the flexibility to work around your personal schedule. First let’s take a close look at mobile franchises.
HIT THE ROAD
TERRITORY Territory, as with most franchise business, is particularly important when operating a mobile business. With a mobile franchise, your income will be received from the clients that you establish within your specified territory, so of course it is imperative that you know the exact parameters of your allocated territory. It is also important that when doing your research into a mobile franchise that you investigate whether it is actually possible to generate the income you require – or desire! The ways in which franchise systems divide their territories may differ – whether it is by postcode or physical boundaries – you will need to investigate the area thoroughly. Some franchise systems offer exclusive territories, in which you will be the only operator of that franchise in that area, while others offer non-exclusive territories. In nonexcusive territories you will face competition
“The variety of mobile franchise opportunities is vast and everexpanding, You name it, and there will probably be a mobile franchise available for you to make all your own.”
Ever felt tied down by travelling day in and day out to the office, staring at the same four walls? Then perhaps a mobile franchise is for you. The freedom and diversity you will gain by hitting the road and visiting your clients could be the change of scenery you are looking for. The variety of mobile franchise opportunities is vast and ever-expanding. Everything from food and coffee vans, dog washing, lawn mowing, house cleaning, car washing, selling tools, servicing cars, package delivery, fence building, business consulting… phew! The list just goes on and on. You name it, and there will probably be a mobile franchise available for you to make all your own. The one thing they all have in common is that they do not operate from fixed premises.
Business Franchise Australia and New Zealand 35
FE ATUR E : fi x ed v ’s m ob i l e franch ises
Do you fancy sitting at your desk in your slippers and PJs? Or is hitting the open road more your style?
FE ATUR E : fi x ed v ’s m ob i l e fran ch ises
a mobile franchise, this is truer than ever before. Be on time, be well presented, and ensure that you have everything you need to perform the job, or have the stock your client wants, every time. The presentation of your vehicle is also imperative. It is representative of your business – keep it clean and well maintained and it will show your clients and members of the community that you take pride in your business.
$$$ In most cases a mobile franchise will be cheaper to purchase than a franchise operating from a retail outlet, the obvious difference being that fixed premises is not required therefore eliminating the need for a lease and rent payments and the cost of a shop fit out. Mobile businesses often operate from a home office, also keeping overhead costs at a minimum. To get started all you may need is a phone and computer.
“As a mobile franchise operator, you are master of your own daily schedule. Need to drop the kids at school? No worries! Surf’s up? Grab the board and hit the waves!”
from not only other similar businesses but also from other franchisees in your network. Always check with the franchisor as to the specifics of territory allocation for the franchise system you are investigating.
FREEDOM As a mobile franchise operator, you are master of your own daily schedule. Need to drop the kids at school? No worries! Surf’s up? Grab the board and hit the waves! Obviously you’re not going to make much money if you spend all your time running errands and hanging ten, but when the occasion does arise, it’s great to be able to have some flexibility in your day. As with any business, you are only going to get out of it as much as the hard work you put into it. With a mobile franchise you can choose to work as little or as much as you want.
CUSTOMER SERVICE Good customer service can set you apart from your competitors, and is what will keep your clients coming back. When operating
36 Business Franchise Australia and New Zealand
In addition, mobile franchises often eliminate the need to employ additional staff members into the business, so the costs of doing so, and the associated paperwork, also disappear. However, just because your investment into the business may not be as high as that of a retail outlet, this does not mean your due diligence should be cut short.
HOME SWEET HOME Working from home is on the rise in Australia, the rapid development in technology over the last 20 years has changed the face of business, with technology available that allows us to communicate instantaneously, even face to face via video conferencing if we desire, with people anywhere in the world. For those working from home, we are no longer isolated; we are connected, both faster and clearer, than ever before. A home based franchise could be the right way for you to skip the daily commute, leave the office grind behind, and establish a business from home using the tried and tested formula of a successful franchise system. Whilst many of us envision working from home slouching around in PJs and slippers, watching the odd day time movie, the reality is that working from home should be treated as a normal job. Setting a daily schedule, showering and dressing as if for the office and closing your office door behind you, is likely to be a more productive and motivating way to go about your day.
information about the financial, legal, operational and other important aspects of the business. Some of the questions that need to be answered include: • Do you enjoy the work involved in this franchise? • How much will you need to invest to buy and operate your business? • What initial and ongoing training will you receive? • What level of support will you receive with managing your business? • What kinds of marketing activities are conducted by the franchisor? • How will you receive leads? Will they be provided by the franchisor or will you be responsible for generating them for yourself? • Does the franchise have the ability to remain competitive and maintain its
“A home based franchise could be the right way for you to skip the daily commute, leave the office grind behind, and establish a business from home.”
brand value? Evaluating a prospective franchise business is not an easy process and professionals in franchising can help you carry out your due diligence. An accountant, lawyer and your bank are important sources of advice and knowledge.
Some home-based franchise systems will require you to visit your clients in person, others will allow you to conduct your work via phone calls and emails, and there are even franchise systems available that could provide passive income - meaning you can earn money by doing very little at all!
FLEXIBILTY One of the greatest advantages of operating a home business is that of flexibility. These kinds of businesses are perfect for a stay at home parent; work can be completed in between school hours, late at night or early in the morning whilst the house is still sleeping, even whilst baking a cake. The little ones may be happily settled in for a nap while you catch up emails and correspondence. It’s this flexibility that appeals to those operating a business at home. Or you may be an entrepreneur wishing to set up business but without all the associated overheads involved with employees and setting up a shop front.
SUPPORT AND TRAINING As with any franchise, it is important to ensure that your franchisor provides adequate support and the ongoing training required to operate your business. This is one of the major benefits of being involved in a franchise system; you are becoming a part of a successful formula that is replicated again and again, and it is the franchisors job to ensure that their franchisees are adequately supported to be able to operate their business effectively. Ensure that you discuss with your franchisor what will be provided in order to begin operating your franchise, and what ongoing training will be provided.
DUE DILIGENCE Regardless of the type of franchise you choose to purchase, by conducting thorough due diligence you will increase your chances of making a good decision and of future success. Due diligence is the process of evaluating
Talking to those already involved with the franchise system is a great starting point; franchisees can share firsthand their experiences with operating within the franchise system. The franchisor should be forthcoming with the contact details of current franchisees. You need to read the Franchising Code of Conduct to understand your rights as a franchise and those of the franchisor. The Franchise Council of Australia has an abundance of information relating to the code as well as recent changes and reviews of these changes on their website www.franchise.org.au.
ENJOY THE RIDE So whether it’s a mobile franchise or a homebased franchise that suits you best, we hope this brief guide has given you some insight into the benefits of each, and wish you luck on your franchising journey.
Business Franchise Australia and New Zealand 37
FE ATUR E : fi x ed v ’s m ob i l e franch ises
the prospective business purchase by getting
FE ATUR E : fi x ed v ’s m ob i l e fran ch ises
h av e yo ur say: FC B usiness solutions
On the road to success Whether your business is mobile-based or whether you have an active team on the road such as Field Coaches, it is important that your tools, communications practices and expectations are clear, accessible and up-to-date. Two-way communication and feedback
Mobile teams need to be able to communicate with head office quickly and easily. They may need to report issues or seek guidance or feedback from other departments – sometimes on issues that are time-sensitive or may have privacy implications. Mobile teams need a secure, monitored communications platform and clear list of key contacts so they can quickly reach the right person, at the right time. This may be a hotline for any questions related to HR matters or the direct marketing contact to discuss local area marketing strategies. Mobile teams and field coaches are the eyes and ears on the ground and their feedback is critical – systems need to be available, regularly monitored and contact acknowledged and actioned.
Active two-way communications with a team on the road is vital. Unlike an office where the team may be in shouting distance, a mobile team may be dispersed across the whole country meaning that systems and processes for communications are required.
Not only do teams need to be able to report in, head office must have simple ways to communicate key messages or information. It may be through a platform like an intranet or it may be via email or text message, conference calls. Regular communication
“Mobile teams need to be able to communicate with head office quickly and easily. They may need to report issues or seek guidance or feedback from other departments – sometimes on issues that are time-sensitive or may have privacy implications.”
38 Business Franchise Australia and New Zealand
that is easy to read on the road is a must – complex, eight-page memos can be tricky to read on mobile devices so it is important to keep communications sharp, relevant and timely. Conference calls should be scheduled in advance so teams can schedule meetings with clients or franchisees effectively. As always, call-in meetings should follow an agenda to keep these meetings efficient. A few tools franchisors are using to improve communication include: • Go To Webinar • Facebook Workplaces • Skype for Business • Trello.
Clear expectations, standards and ongoing professional development When teams are based in an office, the ‘grapevine’ or team meetings can communicate any general changes or issues to be aware of. Team members working remotely can often miss out on small pieces of information or context to a change. It is vital that all of your team on the road have regular performance management discussions, updates on any standards and ongoing training opportunities. This may mean regular sessions in person or use of online training and development platforms to impart new processes or new skills.
Consideration of differences in regions and states Field coaches or mobile teams will ideally cover many different geographical areas, bringing in a range of compliance challenges. Different local government authorities, and in some cases, different states in the one region can have different laws and regulations that your franchisees may need to adhere to. For example: • Food safety • OHS • Licensing and permits. Field coaches and mobile teams may need to access information that documents and highlights these differences, and in some cases, clearly marked alternative policies and procedures to ensure all regions are compliant with relevant local laws.
Mobile access to documents, policies and procedures Policies and procedures are vital for consistency across franchise networks. Field teams or mobile franchisees need to access documents quickly via a mobile sharing platform or intranet. While it has been common to issue paperbased folders in the past, it can make updating documents hard and can risk team members using out-of-date documents or policies. With better mobile coverage and a range of devices such as tablets readily available, cloud-based systems are an excellent way to keep all documents, policies and procedures accessible and up-to-date.
Consistency is key Everyone brings their own approach to the way they handle things but across a franchise, consistency is the key to success. While teams may be based across the country, there will be critical processes and procedures that need to be handled with consistency. Checklists, weekly ‘to do’ lists, telephone conferences, clear policies and procedures to follow and regular professional development can ensure your field or mobile teams can bring their own flare to the role but maintain the standards of the business.
Checklist: Is your franchise ready for the road? 1. Do you have clear and available contact details for mobile teams and head office departments? 2. Do you have regular communications planned to ensure vital messages and updates are being sent to your mobile teams?
3. Have you undertaken regular performance reviews with your team members in the field? 4. Is training for your mobile franchisees or field coaches available online? 5. Are policies, procedures, templates and documents up-to-date and stored in a central location, accessible via a cloudbased platform? 6. Have you checked any mobile franchisee regions or field coach regions for inconsistencies in compliance regulation or law, and provided relevant policies or templates? FC Business Solutions is the only integrated consultancy focused exclusively on the franchise community. Our team of professionals has been providing specialised and expert services to franchises for many years. The FC Business Solutions team are actively involved members of the Franchise Council of Australia regularly attending events, participating in committees and assisting in raising the profile of franchising in Australia. FC Business Solutions is a business which has proudly been certified in accordance with the internationally recognised ISO 9001: 2008 management system which focuses our business on delivering a consistent level of quality to our clients defined by regularly reviewed processes and procedures. hello@fcbs.com.au (03) 9533 0028 www.fcbs.com.au
Business Franchise Australia and New Zealand 39
FE ATUR E : fi x ed v ’s m ob i l e franch ises
“Conference calls should be scheduled in advance so teams can schedule meetings with clients or franchisees effectively.”
FE ATUR E : fi x ed v ’s m ob i l e fran ch ises
e x pert adv i c e
The value of connecting with the franchise network “A good franchise network will invest in your employee’s job satisfaction and create ways for them to stay connected to the network.” Andrew Simmons | Founder and Managing Director Vision Personal Training
In addition to goal setting, a franchisor may help you assess your strengths and weaknesses, so the network is aware of what you can bring to the community and also what the franchise can do to support you. Collaboration and information sharing are key to success.
Training and mentoring franchisees
One of the major advantages of joining a franchise network is the safety net a franchisor provides with their proven business model, and failsafe processes and systems. However, one of the most beneficial yet sometimes overlooked features of a franchise network is the collaborative, connected environment you become a part of.
promotions, service fees and marketing fees are all laid out so you know exactly what you’re up against. My tip during the interview phase is to ask this big question: “How long does it take for the average franchisee to receive a return on investment?” The answer should be straightforward and backed by evidence. For example, if you are serious about investing, ask for financial projections and a draft franchise agreement.
So how do you maximise this benefit, both before and after launching your business?
These tools are designed to help you budget, develop a steady cash flow and digest initial investment costs, so you can accurately do the numbers when buying a franchise.
Connecting before the franchise onboarding stage
Connecting during the initial franchise onboarding stage
Before the onboarding process even commences, a great franchise operation will have a leader sit down with you to ensure that you are a great fit for the franchise and that the franchise is a great fit for you. During this stage it’s all about managing our respective expectations. A good franchise business recognises that its network of owners are entrepreneurs looking for the freedom and creative flexibility to run a business how they best see fit, while growing under a common brand. The franchisor will also provide you with full transparency to minimise the chances of hidden financial surprises. Costs for franchising, the initial fit out, opening
In a supportive franchise network, the onboarding process generally consists of a warm welcome from all franchise owners within the network. This is an opportunity for you to meet the larger group of business owners you are now a part of and get familiar with the culture. The onboarding process is also a time to sit down with a member of the leadership team to hone in on your “why”. This is where the franchisor finds out what really drives you — financial freedom, creative independence or helping others — in order to cultivate clear long and short-term goals you want your business to achieve.
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Throughout the year, there will be ongoing touchpoints where you can learn from different members of the franchise network and grow together. Opportunities include: Biannual conferences Conferences are a great opportunity for networking, learning the successes and failures of peers, and discussing the direction of the franchise as a whole. It is also a great place to reaffirm everyone is aiming for similar successes and find inspiration from each other’s activities. Cluster meetings to facilitate collaboration Collaboration, particularly in your location cluster, is a great benefit of being part of a franchise network. Those in surrounding suburbs have an in-depth understanding of your area’s demographics and culture, and how they respond to various marketing activity. Collaborating is encouraged between franchise owners at Vision Personal Training particularly those in close proximity, as we believe it’s a great way to affirm you’re answering the needs of your local community while furthering your knowledge. Leadership council to facilitate information sharing and decision making To improve information sharing and decision making between the franchisor, franchisee and between franchisees, most
FE ATUR E : fi x ed v ’s m ob i l e franch ises “A great franchise operation will have a leader sit down with you to ensure that you are a great fit for the franchise and that the franchise is a great fit for you.” franchise networks have a leadership council. The council is made up of franchise owners who represent the network when it comes to liaising with head office on matters regarding changes in the business framework, service offering, HR policy and the like. At Vision Personal Training, we elect a new leadership council each year to inject fresh ideas from unique points of difference in the network. In addition to being key decision makers, the peer and head office elected leadership council come together at the start of the year to brainstorm innovative ways to collectively propel the business forward. Their input is extremely valuable and appreciated by head office and other franchise owners in the network. Additional ways to stay connected and get day-to-day support in your franchise include: • An internal intranet and phone support line • Franchise Support Visits
are many career path opportunities to choose from. At Vision, we encourage our studio owners to sit down with their personal trainers during their onboarding process to find out about their career ambitions. Ambitions vary from becoming a master trainer, to becoming a studio owner or even moving into a head office role. From here an action plan is drawn up to help that employee achieve their career goals. It’s crucial to have a solid team of employees in your business. A good franchise network will support you to build a reliable and effective team by offering a framework and incentives to attract the right people, and that those people see career progression opportunities. A good franchise network will invest in your employee’s job satisfaction and create ways for them to stay connected to the network, including: • Employee summits
Training and mentoring for franchise employees
• Regular Development Days for your new team players
In addition to mentoring franchise owners, it’s important for a franchise network to have mentor programs for employees. Once employees have entered the network there
• Regular Webinars and online modules • Continued Access to Face to Face Franchise Management Training for you and your Manager.
Community and collaboration Being a part of a community with likeminded individuals is truly great. More than likely, the values that attracted you to the franchise network are what attracted others there too. As a franchisor, my primary focus is to ensure that each franchise is successful. Each franchise owner places a great deal of trust in us supporting them, so we spend a great deal of time ensuring our network is a place they can lean in to when they are looking for support, friendship and inspiration. Andrew Simmons (B.Sp.Sc) is the Founder and Managing Director of Vision Personal Training. He is highly respected in the Health and Fitness Industry, being inducted into the Fitness Australia Roll of Honour in 2013. The first Vision Personal Training studio was established in 2001. Vision is now the largest Australian owned franchised network of Personal Training studios with 58 locations in Australia and New Zealand. www.visionpt.com.au/franchise/ franchise-opportunities/
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pr o file : jim’s car detailing
Jim’s Car Detailing
Cracks the ‘Supply & Demand Chart’!
If you love your cars, working outdoors and meeting new people, this is the franchise for you! Jim’s Car Detailing territories are currently available around Australia and CEO Ali Olmez is looking for franchisees to join this in-demand mobile franchise.
Speaking with Business Franchise magazine, Ali says:
over 3,000 leads went unserviced the next year.
Jim’s Car Detailing are desperately seeking you, our next franchisee, as we are unable to keep up with client demand. In 2016, our figures show that a total of 2,218 leads went unserviced due to not having enough franchisees.
Jim’s Car Detailing washed and detailed over 70,000 vehicles last year, but our services are still in hot demand. So, we are still looking to add franchisees with a love of cars into the Jim’s Car Detailing team.
We thought the solution was simple enough – we needed more franchisees to meet the demand and in 2017, we had 30 new franchisees start. What we expected to see was the increased supply balancing the demand, but this did not happen. In fact, the opposite was true.
Why Jim’s Car Detailing?
Despite our franchisees working to capacity,
Some people ask me which is the best division to buy a franchise in? With over 50 divisions in Jim’s Group; our potential franchisees may get confused on choosing the correct franchise for them… but my answer is very simple. Buy the franchise you will be motivated to wake up to go to; enjoy performing the services; and have a passion for. It is proven that the most successful business owners, entrepreneurs and franchisees are the ones who love what they do. So, if you love your cars, working outdoors and meeting new people – give us a call and turn your passion into profits!
Keep it simple We like to keep things simple. Everything you need to have a successful Car Detailing business is included. You will get access to our exclusive software, training, top
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“It is proven that the most successful business owners, entrepreneurs and franchisees are the ones who love what they do.” a local café. Continue your day detailing a motorhome and go home for lunch. Wash this beautiful boat before picking up the kids from school. This could be your day with Jim’s Car Detailing.
of the range equipment and suppliers. All stationary and promotional items are included, the only thing you will need is a vehicle. It’s a Business in a Box!
Open Books We believe in integrity and honesty. All our franchise documents, agreements and disclosure documents are available to anyone that requests it. You can contact any of our franchisees and we even recommend for you to spend a day with them before making a decision.
Lifestyle Our franchisees choose where and when they want to work. You can build your customers to suit your lifestyle. We have software and tools in place to ensure our system works, and supports the franchisee. Imagine performing a cut and polish on a Yellow Lotus first thing in the morning, then catching up for a coffee with friends at
Guaranteed Work All our franchisees come with a minimum work availability per week. According to statistics, 50 per cent of new businesses fail in the first year - mainly due to cash flow reasons. Our systems support our franchisees, making sure they meet the minimum Pay For Work Guarantee. It’s important to remember most of our franchisees make a lot more than the guarantee.
Fair Fee: Our fee structure is not based on a percentage of your income. You will pay a flat monthly fee which will cover advertising and administration costs. This means. the more you make – the more you keep! Contact Jim’s Car Detailing now if you want to rid yourself of the Monday Blues, and become your own boss. 131 546 www.cardetailing.com.au
Ansley Starr – Jim’s Car Detailing Hoppers Crossing After working as a Designer in the Mechanical Engineering Industry for 19 years, I felt that I needed a change of profession – like the old adage goes: “change is as good as a holiday”. I spent countless hours researching and meeting various people in order to make an informed decision. However, wherever I searched or went, one common brand kept on crossing my path – coincidence perhaps? I decided to call Jim’s and was blown away by the prompt and professional call I got from my now franchisor Ismet Kuru. We had a very informative meeting during which I basically decided that Jim’s was for me. A while later, I can honestly say I do not regret my decision at all, and really look forward to the growth potential, thanks to the backing of the Jim’s Cleaning Group. Why Jim’s is a question all my family and friends ask, when there is so many other “teams” to join. For me it’s simple. A Jim’s franchise has proven operational models, marketing systems and financial success. Jim’s Car Detailing has given me the opportunity to fill a void in the car wash market; that is to bring back the personal touch and customer satisfaction as opposed to automated services at every corner. This has allowed me to create a business offering - a higher-quality, full car detailing service making the customer’s needs the first and only priority. Oh, and did I forget to mention that I am now my own boss, determining my own hours and not to mention salary. But the best perk ever is not having the dreaded Monday blues.
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FE ATUR E : fi x ed v ’s m ob i l e franch ises
Franchisee Testimonial:
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fran c h is o r in dep t h : ecomist Australia
with Ecomist Australia Business Franchise magazine recently caught up with Ecomist Australia to find out more about this innovative and awardwinning franchise. Can you provide our readers with an overview of your franchise? Established in 1993, Ecomist Australia is a provider of premium quality hygiene products and services to commercial and residential properties. Our ultimate aim is to improve the businesses of our commercial customers and homes of our domestic customers by enhancing their environments through our unique products and services. We specialise in Fragrancing, Odour Control and Insect Control and believe we offer the best solutions on the market.
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“Fragrances are specially blended to complement mood, impression, colour and décor. Our dispensers are completely programmable and can be set according to the customer operating hours.”
The business was started in New Zealand by two entrepreneurs who invented the original automatic insect control dispenser and shortly afterwards, teamed up with a French perfumist to develop a range of over 50 fragrances to suit any environment. The Ecomist dispenser was recognised by the Australia and New Zealand Aerosol Associations as the best new product invention in 1997, and has undergone several refinements since then to improve the service we offer our customers. The company is currently serving over 8,000 customers across Australia. On average, our customers stay with us for 8 years due to the quality of our products and services.
which eject small volumes of fine particles that stay in the air longer for greater effect.
cockroaches, spiders, ants, moths and others).
Odour is a problem in aged care, child care, schools and public washrooms. It can have a major impact on how customers and staff perceive your business. To combat this we have range of over 50 fragrances made from French perfume combined with an odour neutraliser to keep smells at bay.
The Ecomist Natural Insect Killer uses natural pyrethrins derived from the Chrysanthemum Daisy, sourced from Tasmania and East Africa and manufactured in New Zealand. It’s safe to use around people, food and pets.
Fragrances are specially blended to complement mood, impression, colour and décor.
Why is there a need for your services and how are you different from any other hygiene companies within Australia and New Zealand? Ecomist is different from other hygiene companies in the sense that we are specialised, and offer best-in-class products and services in odour control and insect control. Our ultimate aim is to enhance the working environments of our customers with a hassle-free service that allows them to focus on their customers. Enhanced business environments allow for happy customers and staff and improve customer loyalty, perceptions of your business and repeat purchases. Our stylish dispensers are fully programmable and have solenoid valves
Insects, especially flies, can be particularly annoying when you’re tyring to eat! How do Ecomist combat this ongoing problem? Our insect control products are unique and in high demand in the food industry. We are the only company to offer natural insect killers in 650ml canisters and dispensers. Ecomist offers a fully serviced, hassle-free automatic insect control system that repels and kills all insects (flies, mosquitoes,
Our Ecomist staff visit the premises to investigate the nature of the insect problem. They install dispensers in the most appropriate places and program them according to the customer’s specific needs. Thereafter, they visit regularly to change the canisters, and ensure the dispensers are clean and operating effectively. “We have been using Ecomist in our equestrian yard and entertaining area now for three years. Ecomist is a ‘gold’ winning product that keeps working. Try it now! Ecomist won’t disappoint you, your horses or your guests! I highly recommend Ecomist.” - Stuart Tinney, OAM, Gold Medal Eventer / Equestrian
“I use the Ecomist odour bombs in rooms that have been affected by tobacco smoke. This product is very effective as a room neutraliser and it does not leave an overpowering smell. I shut down the room, close the
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fran c h is o r in dep t h : ecomist Australia
“Our ultimate aim is to enhance the working environments of our customers with a hassle-free service that allows them to focus on their customers.” bathroom door (which has an exhaust), place the Ecomist odour bomb on the table with some newspaper underneath, pop the spray and leave for two hours. Job done, and the room is ready for occupation. Our ozone machines are not getting used anymore due to the ease of use of this product. I would recommend the Ecomist odour bombs to anyone in hospitality as they work for us here at the Macleay.” - Michael Culbert, Maintenance Manager Macleay Hotel Sydney
What does an Ecomist franchisee look like? Being a successful franchisee means being passionate about the products you sell and the service you deliver. We pride ourselves on being the best in the market. Our franchise demographics are very diverse: from entrepreneurs to engineers. They all have a strong desire to manage their own business and are passionate about their products and service delivery. They also realise the benefits of being a part of a team and are always happy to assist the network. Our franchisees are experts in their trade. As owner-operators they realise their business is only as good as their promise, and they pride themselves on offering the best service in the market. ‘‘After selling my liquor store I was lost as to what to do. I bought a lawn mowing round which made money in summer but not in winter. I was then introduced to Ecomist. I
liked the profit and loss report and particularly the gross profit. Now in my sixth year it’s a beautiful business, makes great money without working on weekends, or 18hour days. The support from Ecomist, the franchisor is very helpful - providing training and all levels of support. Life is good.” - Andy Dennis, Director, Ecomist Eastern Suburbs
What do you receive when you become an Ecomist franchisee? Over the last 23 years we have developed a secure and proven franchising business model: • Each Ecomist franchise has its own exclusive territory based on post codes. • Best-in-class products and services. • An initial term of 5+5 years. • A loyal customer base. • Owner operated (small to medium
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sized franchises do not need additional employees). • Significant growth potential. • High Gross Profit Margins. • Low marketing contributions (3.5 per cent) of purchases. • 60-day terms. • Low entry cost (purchase price is 2x net income). • Training and support from the franchisor. • The right to sell your franchise to a buyer approved by the franchisor. If you would like to find out more about the Ecomist range of products and services, visit www.ecomist.com.au for more information. If, like Andy Dennis, you would like to join a franchise with no weekend work and great returns, contact Gary Vandoros now on: 02 9417 2211 Gary.vandoros@ecomist.com.au
Tired of working for someone else? Tired of not reaching your full potential? It’s time you looked after yourself!
www.BuySellLease.com.au admin@buyselllease.com.au 02-8960-7277 Set your own Financial Goals Work from Home Selling online advertising to the real estate services industry
FE ATUR E : fi x ed v ’s m ob i l e fran ch ises
fo c us feature : buy sell lease
Own your own Sales, Advertising and Marketing business. Our Founder and Managing Director, Neaf Ziade, has an extensive and successful career in real estate. As an outsider, now looking in and experiencing what the real estate industry contends with, he saw the demand for one portal to service every need for real estate consumers. While you can find property and agencies, how do you find services for your property, and within your local area? He created Buy Sell Lease, to service real estate consumers and provide a platform for real estate services to direct market their businesses to people who need them.
Buy Sell Lease The real estate industry is one of the biggest industries in Australia. An industry driven by property for sale and lease, and serviced by real estate agents and other real estate professionals such as Conveyancers, Mortgage Brokers, Insurance Brokers, Buyers Agents, Valuers, Surveyors, Pest and Building Inspectors, Removalists and Storage, Gardeners, Rubbish Removal and a whole lot more… At Buy Sell Lease, we not only market real estate to buy and lease, we also market real estate agencies and every other real estate service. We are one portal for every consumer need relating to Buying, Selling, Leasing and maintaining their property. Within minutes, a consumer can search and find their property, their agent and their real estate services – on one portal – in their chosen location. For real estate services, it’s the first time that they can market directly to a real estatebased consumer market. These are people
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looking to engage the services that they offer. We call it ‘Hot Marketing’ – marketing to people who are ready to become someone’s client. We allow these real estate services to be found in a localised manner, ensuring that consumers receive the services of people within their area. We randomise each and every search result to provide fairness and equity to our clients and the delivery of their business marketing. Buy Sell Lease is the most efficient and direct marketing. Ordinarily, these real estate services rely on a local paper advert – hoping that someone reads it, or letterbox flyer. It’s “Hit and Miss” marketing. At Buy Sell Lease, we take consumers straight into the website of real estate service businesses where they can learn everything there is to know about the business and services they are enquiring about. For our real estate services clients, we bring prospective customers to their website to learn about their business and their service and contact them directly.
Territory Each of our franchisees are given an Exclusive Territory. Franchisees perform the role of Sales in Advertising and Marketing by engaging new prospective clients through direct email, face to face presentations and phone calls; offering these real estate service businesses the opportunity to market their businesses directly to real estate consumers. Every sale within that territory, whether it is achieved by you, directly online or through Head Office, belongs to the territory franchisee. More than likely, franchisees can select a territory in the area in which they live. There is nothing better than being able to work where you live. Presentations are performed by taking clients through our website and showing how quick and easy it is to perform a search and find the services that they offer. They are completed in 15-20 minutes using our website as your tool. It is also the way you register new clients, upload their business and accept payment.
What we sell! We sell Advertising and Marketing opportunities on Buy Sell Lease. Essentially, we have one Product and three different prices. It’s as simple as that. Our three packages are: • Local – covering a 10km radius from their business (314sqkm) for $200 + GST for the year – that’s less than $4pw + GST. • State – for $1,000 + GST for the year. • Nationwide – for $2,500 + GST. It is the most affordable and direct marketing that these businesses have ever been offered and what business would not invest less than $4 per week plus GST to be marketed to real estate consumers.
Who are we looking for? We are looking for people who are self driven and motivated. People who are organised, present well and can sell our presentations and marketing packages. People who want to achieve more in their financial wellbeing and challenge their potential.
What you make! Franchisees receive 60 per cent of each gross sale. With hard work, a great sales acumen and presentation, you can expect to earn between $156,000 - $312,000 per annum (assuming sales of $260,000 - $520,000). Earnings will depend on individual ability.
Year to year sales growth Lets assume that your first year’s sales equal $250,000. In Year 2, your existing clients renew their Agreements and you are still selling to new clients at the same rate. Your sales can expect to be in the range of $250,000 New Clients + $250,000 Renewed Clients. That’s $520,000 in Sales in Year 2. In Year 3, it grows yet again. The Income potential is very attractive and its expected that after some years, people will be managing their Territories more than selling to new clients.
What you need With Buy Sell Lease, you don’t need a leased office – you can work from home. You are your staff. You will need a laptop computer, mobile phone, car and Internet access. No set up costs and very minimal expenses.
Investment The investment with a Buy Sell Lease Franchise starts at $50,000. You are provided with an exclusive territory in which you market, present and sell to real estate services and professionals - there are no other significant expenses.
Friday. You will database your territory, call and email businesses, door knock businesses and present them with the marketing opportunities of Buy Sell Lease. Presentations take all of 15-20 minutes and even include time to sit with the client, upload their business on Buy Sell Lease and receive payment. It’s a very efficient, simplistic and userfriendly system. Everything you talk about and present revolves around the website.
Marketing support At Buy Sell Lease, your success is our success and our success is your success. We have a marketing fund of five per cent of sales that is committed to group marketing. We will market the services of Buy Sell Lease to consumers and professionals using media opportunities in TV, Radio, Outdoor Advertising, Online Marketing and the like. We want to ensure that Buy Sell Lease becomes a household brand and the No. 1 Real Estate Portal in Australia.
Training All franchisees will receive ‘one-on-one’ training to become completely familiar with all aspects of Buy Sell Lease. You will receive training about how to prepare, present and sell marketing on Buy Sell Lease. You will also receive a comprehensive operational manual and continued support whenever you require it. Essentially, it is a very easy system to learn and implement.
What you will do
For more information and to enquire about current opportunities, contact Neaf Ziade on:
You can comfortably operate from home using your laptop and phone. Your working days are primarily Monday to
02 8960-7277 admin@buyselllease.com.au www.BuySellLease.com.au
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“With Buy Sell Lease, you don’t need a leased office – you can work from home.”
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e x pert adv i c e
Managing
an easier way “Once you have decided to engage a mediator, be sure to contact a mediator accredited under the National Mediation Accreditation System (NMAS).” Alison Shaw | Mediator | SHAW Dispute Resolution
One of the inevitabilities of running a business is that you will encounter bad debt. As a business that services customers out on the road, you may even find yourself in a situation where you have to face customers who have unpaid bills but who are requesting further service from you. Or, you may just find yourself with a few customers who simply aren’t settling their accounts and the time has come for you to take action. So, what is the best way to go about it? Well firstly, it helps to be able to put bad debt into perspective. The 2016 Census highlighted some pretty significant debt-
related issues in Australia. For example, approximately three in ten households (29 per cent of all Australians) were classified as ‘over indebted’. Debt growth has outpaced the growth of incomes and assets during the same period, further driving this figure higher. This means that, potentially, a third of your customer base has to regularly make decisions with regards to which bills they pay and which they don’t – a scary prospect! The reality is that bad debt is just a part of being in business but it’s getting harder to take charge and clear debt. If your bad debt has become overwhelming - to the point that you aren’t making a profit - or you cannot see a long-term future for the business, it may be time to investigate your options.
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Taking the legal route i.e. threatening debtors with legal action, usually brings some form of response but it’s not the only option you should consider. The downside is that many customers don’t respond positively to legal action. At least, they may pay their bill, but they might decide never to use your services again. Whilst you might not care about losing certain debtors as customers, other more honourable customers may just be going through a rough patch and could become great customers again after they have resolved their financial issues. Therefore you should always consider the softer, more collaborative approaches to managing debt first, before you resort to litigation, which can also be very expensive.
What is debt mediation? Debt mediation is a process in which a mediator brings you and your debtors together to discuss how to deal with outstanding debt and to work through a repayment plan that is satisfactory to all parties. The goal is for all parties to agree on a way forward so that the matter can be
FE ATUR E : fi x ed v ’s m ob i l e franch ises resolved amicably, leaving the door open for future trade if circumstances permit. Debt mediation also keeps the lines of communication open. Debt mediation is particulary used when a debtor has incurred large amounts of business debt, but it has also been used in cases of cnsumer debt as well. There are even cases now of banks engaging in debt mediation, rather than going down the litigation route.
How to get started – get YOUR house in order first… If bad debt is not crippling your business, you can move straight into debt mediation with your customers. But, if you are in the quick-sand of debt yourself, as a result of bad customer debt, you may first want to seek the advice of a debt-counsellor. More often than not, banks and other financial institutions will provide debt-counselling at no extra cost. Depending on your current financial situation, the debt-counsellor can create a debt managementt plan for you so that you can actively address YOUR debt to banks and other parties that may have been
brought on by customer bad debt whilst engaging customers to resolve their bad debts.
Debt Mediation Once you have decided to engage a mediator, be sure to contact a mediator accredited under the National Mediation Accreditation System (NMAS). The mediator will provide you with all of the information you require to set up a mediation session with your customer. There is usually a three-step process for dispute resolution by mediation. The first step will see the mediator meet with all parties separately and privately for a consultation. In these private sessions, the background to the dispute is discussed and all issues laid on the table so that the mediation session takes into account all relevant information. After the initial meetings, a joint session will be arranged aimed to resolve the dispute and come to an agreed outcome. The mediator will lay out the guidelines of the discussion and the roles of people involved. Concerns raised by both sides will be explained and
summarised, and an agenda will be formed for the discussion. The mediator will speak to all the people involved together and also talk to you privately during the course of the mediation to check how you are feeling about the session and to discuss anything that you do not feel comfortable to say to the other person in the joint session. You will then be encouraged to come up with options for resolution and negotiate the outcome with the support and assistance of the mediator. Once agreed, the outcome is written down and signed by all people present, and you may then have it legally formalised with your lawyer, if you wish. Let’s Resolve! Alison Shaw is a former lawyer and CEO of national mediation firm SHAW Dispute Resolution Australia. SHAW Mediation offers voluntary mediation opportunities to everyone for all types of disputes anywhere, anytime for fixed scaled fees. Alison and her national team of mediators are all nationally accredited and have a legal background. www.shawdr.com.au
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e x pert adv i c e
Three and a Half Years On January 2015 was significant, some say because Australia defeated South Korea to win the AFC Asian Cup, or because Croatia elected its first female President, or the Church of England ordained its first female bishop, but for Australian business, it was significant because of the introduction of the new comprehensive Franchising Code of Conduct (Code). Since that time, there have been countless articles written explaining the new and most significant changes to the Code, which
“No amount of increased protection provided by the ACCC or any Inquiry can replace a franchisee doing all they can to protect themselves at the outset.” Carrie Peterson | Principal Solicitor | Peterson Haines
included the introduction of an obligation to act in good faith (not to be confused with an obligation to act in the other party’s interests) and amendments to disclosure requirements. But what is actually going on in practice? The Australia Competition and Consumer Commission (ACCC), Australia’s competition regulator and, self-described, national consumer law champion, has seen an increase in complaints relating to small business and more specifically, breaches of the Code. The ACCC’s latest Small Business
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2017 Snapshot, released on 23 March 2018, noted at least 600 complaints in 2017 (of the 5000 complaints pertaining to small businesses) relating to franchising. As such, the ACCC took several enforcement actions last year including against franchisors for breaches of the Code. Commenting on the ACCC’s Small Business 2017 Snapshot, ACCC Deputy Chair Dr Michael Schaper said: “We want small businesses to have a level playing field and every chance to succeed, so it’s our job to ensure everyone plays by the rules.”
Paris Maggs | Solicitor | Peterson Haines
So, three and a half years on, has this “new” Code really made a difference? From all accounts, everyone wants the answer to be yes, however that is now in question. In February 2018 a decision was made by the Senate to launch a parliamentary inquiry into the Australian franchising sector. The Inquiry, moved by Nationals Senator John Williams, will be reviewing, amongst other things, enforcement of the Code, as well as the impact of the amendments to unfair contract terms. Previously, the unfair contract provisions of the Australian Consumer Law (ACL), which is set out in Schedule 2 of the Competition and Consumer Act, did not provide protection against unfair contract terms for small businesses. The changes to the unfair contract terms, brought about in November 2016, now protect small businesses, in that they now protect contracts where: • At least one party to the contract is a small business (which is a business that employs less than 20 people); and • The upfront price payable under the contract is $300,00 (or less or $1,000,000 or less if the contract is for more than 12 months); and • The contract is a standard form contract (that is, the contract is pre-prepared and is not normally negotiated) for the supply of goods or services. With the significant increase in the number of mobile franchisees, the change to the unfair contract terms is critical as it underpins the basic and fundamental issue confronted by franchisees, being the balance of power come negotiating time. The Courts have found that in order for the term of the contract to be deemed unfair, the term must: • cause a significant imbalance in the parties’ rights and obligations; • not be reasonably necessary to protect the legitimate interests of the party advantaged by the term; and • cause loss or damage to the small business if it was to be relied upon. The Inquiry is expected to report back in September 2018.
Financial penalties for breach of the Code Despite the Inquiry into the effectiveness of parts of the Code, there have been some notable victories since the Code’s introduction. Importantly, in 2016, the ACCC instituted proceedings against Pastacup Franchisor Morlid Pty Limited (Morlid) and its former director, for breaches of the Code. The ACCC sought, amongst other things, penalties and declarations. In this case, the ACCC alleged that the previous director’s directorship and management of two previous franchise companies, that became insolvent, was something that Morlid ought to have disclosed to the franchisees. The Code provides that a person may be personally liable for a breach of the Code if they: • Are a party to the breach of the Code; • Attempt to breach the Code; • Assist another party to breach the Code; • Induce another party to breach the Code; • Are “knowingly concerned” with a breach of the Code. The Court found that Morlid’s failure to disclose information amounted to a breach of the disclosure requirements under the Code, and in 2017, the Federal Court of Australia ordered Morlid to pay $100,000 in penalties, representing the ACCC first court ordered financial penalties for breaches of the Code. The company’s director was also ordered to pay $50,000 for being “knowingly concerned” in the breaches of the Code, by failing to comply with the new disclosure requirements. Dr Schaper described the proceedings as: “….the first in which the ACCC has sought penalties for breaches of the Franchising Code. The ACCC is pleased that the revised Code provides for the Court to impose penalties for serious breaches. We expect that the availability of such remedies will act as a significant deterrent to others,” Dr Schaper went on to say: “…..changes to the Franchising Code require increased disclosure prior to
What next? The latest figures released by the Australian Bureau of Statistics show that there are approximately 79,000 franchise units operating in Australia. With over 2.2 million small business operating in Australia, these franchise units account for approximately 4 per cent of small business in Australia, with the franchise units generating annual sales revenue of $146 billion for the economy. Franchisors and franchisees employ almost half a million Australians, and that number is growing. So what does this all actually mean? For one thing, it means franchising is increasingly in the forefront of the watchdog’s proverbial mind, and importantly, it means that franchisors now know that there are actual financial consequences for breach of the Code. But does that mean the franchisees should change their usual recommended conduct prior to entering into a Franchising Agreement? The answer to that is a resounding No. An increase in protection should in no way replace proper due diligence at the commencement of, and prior to, entering into any Franchising Agreement. Further, whilst it can be tempting to cut corners, such as the cost of legal advice, especially given the increase in the number of (and desirability of) mobile franchises (which cost less than a traditional franchise), no amount of increased protection provided by the ACCC or any Inquiry can replace a franchisee doing all they can to protect themselves at the outset. Carrie Peterson is the Principal Solicitor of Peterson Haines with almost 19 years’ experience in dispute resolution and commercial litigation. Carrie is also an Associate Member of the Australian Restructuring Insolvency and Turnaround Association. Paris Maggs is a Solicitor with Peterson Haines, with experience in dispute resolution, commercial litigation and insolvency. Paris joined Peterson Haines in October 2017. Peterson Haines is a modern progressive Sydney law firm, providing expert legal advice on dispute resolution. They work with clients in a range of other industry sectors including franchising. www.petersonhaines.com.au
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“With the significant increase in the number of mobile franchisees, the change to the unfair contract terms is critical.”
entering a franchise agreement. The ACCC has made it an enforcement priority to ensure small businesses receive the protections of industry codes of conduct, including the Franchising Code.”
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FEATURED Franchise
Old Macdonald’s Travelling Farms Bringing the Country to the City Australia’s largest and most respected mobile animal display, we have been established for 27 years with franchisees throughout Australia. To help us cope with a constantly increasing market sector, we seek more franchisees to join our network. The franchisors bring to the table extensive livestock, administration & sales experience, all of which are provided on a 24/7 basis, with full training provided. A tree change lifestyle for the whole family We provide structured learning programs for schools etc and offer nostalgia and entertainment for shows, fetes & corporate functions, all year round. The sheer joy felt by the young and old during every presentation is overwhelming and in return franchisees are rewarded with a fulfilling experience. Due to high demand and at the franchisees’ request, Old Macdonalds Travelling Farms will redefine and split areas, when demographics allow (Any profits from such sales benefits the Franchisee). We have new Franchise areas available in Newcastle, Sutherland, Sydney Sth, Wollongong and are looking for ‘Local’ families, with established franchise areas in NSW North Coast, SA South, and other areas North of Brisbane.
For further information please contact Ann Richardson – Director Mobile: 0428 777 051 Email: admin@oldmacfarms.com.au Web: www.oldmacdonalds.com.au
FEATURED Franchise
Poolwerx We’re very proud that the Franchise Council of Australia has awarded Poolwerx as Australia’s No1 franchise system for 2016 - 2017, and we’d love you to be part of our success. We have a career path in business that we can tailor to suit you. As a Poolwerx Franchise Partner, you can start small or jump right in. Join us as a man and van, progress to multi-vans, a retail store and vans and then into multi-stores or purchase an existing resale of fast start territory. Whatever your journey, we will help you realise your vision. A sophisticated franchised retail, mobile service, and digital business – poised for expansion in the high-growth, high-margin Australian pool and spa aftermarket. Addressing every viable point of profit in a largely untapped $1 billion dollar market sector. Our one focus is to create a profitable partnership. We do that by matching 25 years’ experience and outstanding support, marketing and business development systems to your energy and enthusiasm. Together we will build a business for you and your family. Contact us today and build your successful business future with Poolwerx!
FEATURED Franchise
Wheel Change U JOIN THE WHEEL CHANGE U FRANCHISE TEAM, AND JOIN US IN PIONEERING THE MOBILE TYRE MARKET IN AUSTRALIA. We would like to invite you to enjoy the benefits of being a pioneer of this concept in the Australian Tyre Industry. No prior tyre fitting experience needed, you just need to be a car enthusiast, as full training is provided. As a Wheel Change U (WCU) Franchisee, Replacing new tyres for your customer has never been easier, your Mercedes van is a fully fitted tyre shop that will save them time and money, and provides your customer the convenience of you going to them, at their home or work, which will save them time and money, no longer wasting hours of their precious time at a tyre store. WCU is able to supply tyres for Cars – 4WD – Light Commercial Vehicle – Motor Homes and Caravans, and we are competitively priced and often end up being cheaper than those that you would find at a regular tyre store. As a WCU Franchisee, you don’t have to pay the high rental fees for a shop, which is savings in your pocket. WCU is currently seeking Franchisees in Western Sydney, Central Coast, Gold Coast, Townsville and Melbourne.
joinourteam@poolwerx.com.au AU – 1800 245 447 NZ – 0800 888 031 Web: Poolwerx.com.au / Poolwerx.co.nz
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Call Karin for a chat now on 0402 455 261
BECOME A LEADER IN YOUR COMMUNITY WITH YOUR OWN SENIOR HELPERS® FRANCHISE. BECOMING A SENIOR HELPERS® OWNER, YOU WILL BE JOINING A TEAM OF BUSINESS OWNERS WHO ARE LOOKING TO MAKE A REAL DIFFERENCE IN OTHERS’ LIVES. THE INCREASING AGEING POPULATION AND NUMBER OF ADULTS WITH DISABILITIES IN YOUR COMMUNITY LOOKING FOR THE TYPE OF SUPPORT ONLY SENIOR HELPERS OFFERS. WHY SENIOR HELPERS®? It is personalised services that differentiates Senior Helpers® from our competitors. We employ the best support staff who believe in our values and want to provide the best service. In return, we offer staff education and training only available through Senior Helpers® and because of this, we have developed a reputation for cutting edge dementia support and Parkinson’s care at home. We offer owners extensive preparatory training as well as ongoing training in business management, marketing and service development. Staff recruitment, onboarding and retention are as important to us as the actual services we offer. Become a business owner in your own right. Independence, self-direction, self-motivation, leadership are all welcome at Senior Helpers®.
Franchise fee: • $75,000.00 that includes owner training. • $80-100,000 liquid assets to set up and establish • 6% Royalties on gross sales (waived for first 6 months) • 2% Marketing fee on gross sales • $400 monthly technology fee
zest 3878_KS
INVESTMENT:
*We offer ex-service personnel a 10% discount on the full franchise fee.
shfranchise@seniorhelpers.com.au | 1300 NEWBIZ | (03) 6333 4575 | seniorhelpers.com.au ACN: 620 406 028
Franchising & Business Opportunities Expo’S 2018: Perth: 6 May
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www.franchisingexpo.com.au Business Franchise Australia and New Zealand 55
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Do your homework Franchising has been a firm part of the Australian retail landscape for almost fifty years, long after the first round of fast-food chains became part of our culture. Despite decades of great success, the entire sector has been firmly in the spotlight over the past 18 months, for all the wrong reasons. From gross underpayment and exploitation of workers; to Fairfax Media’s expose on the underpayment of hundreds of Domino’s Pizza staff (not to mention some franchisees who were caught offering Australian residency visas in exchange for cash) – you don’t have to look very far to see examples of when things go horribly wrong. While the media reports are disturbing to say the least, it’s crucial to note that these cases of
serious non-compliance are the exception, and not the rule. For every bad headline, there are thousands more who are running successful, flourishing franchise businesses every day. According to the Franchise Council of Australia*, as of 2016, there were 1120 brands supporting 79,000 separate small businesses, that collectively employed around 470,000 direct employees, and with a combined sales turnover of around $146 billion! At the time those figures were collated, only 1.8 per cent of franchisees were involved in a substantial dispute with a franchisor over the 12 months prior. It’s inevitable there’ll be some conflict between a franchisor and franchisee along the way (and should be embraced as a crucial component in a dynamic and flourishing business relationship). Franchise or no franchise, there will always be entries and exits, so it’s crucial to have a
56 Business Franchise Australia and New Zealand
clear understanding of what you’re in for, how you’re going to make it work, and what your and the franchisor’s obligations are, long before you sign on the dotted line. Running a small business in the Australian retail sector involves hard work – if it was easy, everyone would be doing it, but it can be incredibly rewarding too - and there are plenty of steps you can take to make sure your franchise becomes one of the success stories.
Due diligence You wouldn’t invest your life savings and stitch up a monster loan for a house without expert advice, and a franchise is no different. Just because it’s a name you know, love, and see doing well as a proven business model, doesn’t mean it’s going to work for you. When you buy a franchise, it’s your responsibility to make it work financially so do your homework, and do it without emotion. Even a simple Google search on the brand
“For every bad headline, there are thousands more who are running successful, flourishing franchise businesses every day.” Alexander Millman | Senior Workplace Lawyer and Advisor National Retail Association
can tell you a great deal, so check it out on the ASIC website; run a credit check; find out who owns the group of companies your chosen franchise is part of, and what their stories are. Do the company directors have any black marks against their names? Does the franchisor require you to buy from specific suppliers, and if so, does it have permission from the regulator to do so? What about the numbers – do the figures add up to you and your accountant, and do you have a financial safety net if things don’t go to plan? Above all else, get professional legal advice, from a lawyer who specialises in franchisee arrangements.
Employee arrangements A second layer of due diligence relates to your employee entitlements. Australia has one of the most complex industrial relations systems in the developed world, and it just got a little bit tougher for the franchise sector after the introduction of the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 (the Act), which took effect on September 15, 2017. The Act was a direct response to the 7-Eleven employee exploitation and underpayment scandal, as well as other underpayment scandals including Caltex and Domino’s Pizza.
“According to the Franchise Council of Australia*, as of 2016, there were 1120 brands supporting 79,000 separate small businesses, that collectively employed around 470,000 direct employees, and with a combined sales turnover of around $146 billion!” These key changes include: • Higher penalties for ‘serious contraventions’ (read: 7-Eleven-style breaches) of workplace laws. The maximum penalty has increased ten-fold, with a maximum penalty equating to $126,000 for individuals and $630,000 for corporations. • Increased penalties to employers for keeping false or misleading employee records, and/ or providing a false or misleading pay slip. • Reverse onus of proof on employers where record-keeping requirements were not met – so if you’re accused of not paying correct entitlements, it’s up to you to prove otherwise, to the satisfaction of a court. • Extended liability provisions for franchisors and parent companies. • Increased investigative and evidencegathering powers for the Fair Work Ombudsman, including to inspect and require employers provide employment records and attend interviews under oath. When taking over an existing franchise, an often-overlooked item during the due diligence process arises when you, the new
owner, take on staff previously employed by the old owner. You need to make sure that the employment arrangements in place are lawful, and that provision has been made for any liability for leave entitlements that you will be taking on. Most importantly, you need to remember that the courts will not care if, “That’s the way the last owner did it”. If the last owner of the business paid their staff under the wrong Award and you simply continue without questioning the arrangement, you could soon find yourself in hot water.
Adequate recording systems for time and wages recording and reporting It’s not enough to know you’re paying all your staff the correct Award – these changes mean it’s never been more important to be operating accurate systems for recording time and wages – all of which must then be kept unaltered for seven years, and be readily accessible for inspection. There are myriad payroll software options out there for small business, however it’s generally
Business Franchise Australia and New Zealand 57
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“You wouldn’t invest your life savings and stitch up a monster loan for a house without expert advice, and a franchise is no different.” much easier to produce things like compliant pay slips and records using automated cloud payroll software – many of which also include business tools to help you maintain compliance, and help both you and your employees manage the day-to-day operations. Employers have enough to do, so utilising automated payroll and employee management software can free up a great deal of your time to focus on your business. There are apps available also, and the Fair Work Ombudsman’s Record My Hours app makes it quick and easy for employees to record and store the hours they work, as well as information about their own employment.
Staying up to date to avoid noncompliance It’s incredibly difficult for busy SMEs to find the time (and inclination) to study and stay up to date with the ever-evolving industrial relations landscape.
employment records, followed by penalties, overtime loadings and allowances. The Fair Work Ombudsman found that 76 per cent of audited Caltex franchises had been underpaying their workers, and only six of 25 sites operated by 23 Caltex franchisees in Brisbane, Sydney, Melbourne and Adelaide inspected were compliant with workplace laws. FWO Ombudsman Natalie James called it an unsustainable model, and unsurprisingly, the company announced to the ASX that it would be transitioning franchise sites to company operations. While the Caltex case was an extensive breach and a clear indication of a flawed system, it’s fair to say the vast majority of Australian franchisees who find themselves on the wrong side of compliance issues don’t intend to do so.
Our industrial relations system is difficult to navigate, and as we’ve seen with last year’s amendments to the Fair Work Act, changes can be swift and have far-reaching consequences.
The National Retail Association is an employer organisation that’s here to help employers navigate these and other HR and compliance issues, and keep you up-to-date on any changes to the industrial landscape that might affect you.
The largest areas of non-compliance uncovered in the Caltex inquiry were pay slips and
We have a dedicated team of legal professionals who specialise in these areas
58 Business Franchise Australia and New Zealand
and are on hand, every day, to provide expert guidance on these and other issues common to running a retail business. If you’d like more information on franchisee arrangements, please don’t hesitate to get in touch. * Franchising Australia 2016 report
As the National Retail Association’s Senior Workplace Advisor and Lawyer, Alexander Millman provides advice and representation to a collective network of more than 19,000 retail, fast food and quick service outlets nationwide. This includes representing members and providing expert guidance in the modern award review process (including appearances before the Full Bench of the Fair Work Commission) and individually in discrete cases before industrial tribunals. While specialising in the complexities of employment law, Mr Millman also advises and represents members across general commercial litigation in various State courts. 1800 RETAIL (738 245) www.nra.net.au
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Business Franchise Australia and New Zealand 59
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PROTECTING YOUR WORKERS – AND YOU! Opening and operating a franchise is an exciting and opportunistic time, for both franchisor and franchisee. But it’s important to remember you have responsibilities and obligations to meet to ensure your workers are protected if they have an accident or become ill as a result of their work. You also need to protect yourself. As an industry worth over $146 billion in Australia1, and $46 billion in New Zealand 2, franchising helps grow businesses, provide jobs and stimulate the economy. With over half a million people directly employed in franchises across both countries, it is vital that owners and operators are aware of their legal obligation to insure all workers for workers’ compensation insurance. Despite improved safety practices and heightened awareness, workplace injuries do occur. In 2015/16, there were 104,770 serious workers’ compensation claims made across Australia 3 and 37,188 across New Zealand4. Such claims, where a worker requires more than a week off work, can become expensive. Workers’ compensation exists for this reason. It’s there to reimburse injured workers for lost wages, and help rehabilitate them by providing reasonable medical expenses and treatment with the aim of returning them to work. In Australia and New Zealand, workers’ compensation insurance is a legal requirement. In Western Australia, employers must have workers’ compensation insurance for anyone they employ who is defined as a ‘worker’. A worker includes full-time, parttime, casual, seasonal and piece workers; workers on commission; working directors; family members; and in some circumstances
“It is the employer’s duty to ensure they have a current workers’ compensation policy in place, and in franchising arrangements, the franchisee is considered to be the employer.” Stephen Psaila-Savona | General Manager Regulatory Services WorkCover WA
contractors and sub-contractors. It is not always immediately clear whether a person engaged by your business would be considered as a worker, so it is important to seek advice on any grey areas.
• Retail massage business penalised $24,074
In a situation where an employer, in this case a franchisee, does not have workers’ compensation insurance and their worker is injured, they are held personally liable for the claim, and this can be financially devastating for their business.
Avoiding such significant consequences is not difficult, and is as simple as contacting your insurer or insurance broker to ensure you have a workers’ compensation policy in place for all your workers.
In 2016, a worker was injured in a Perth franchise and the franchisee did not have workers’ compensation insurance. The worker sustained significant injuries and had to make a claim against the franchisee. The claim resulted in a $45,071 settlement, and the worker was also paid $5,400 in weekly payments and $2,528 for expenses prior to settlement. This left the franchisee $53,000 out of pocket, which could easily have been avoided if they held workers’ compensation insurance. But regardless of whether a worker is injured, there are penalties in WA for simply operating a business and employing workers without workers’ compensation insurance. Penalties can be in the form of fines or prosecution if employers are found to be without a valid workers’ compensation policy ($5,000 per worker), or fail to make payments to an injured worker ($2,000 per late payment). Additional costs may also include avoided insurance premiums going back five years. In 2017, the following Perth based franchise businesses were prosecuted and received a criminal record for failing to have workers’ compensation insurance whilst operating a business and employing workers:
60 Business Franchise Australia and New Zealand
• Café penalised $25,275 • Self-storage company penalised $20,914 • Pizza store penalised $19,414.
One of WorkCover WA’s responsibilities is to investigate and inspect workplaces who we believe are uninsured, and franchises are often investigated. What we’ve noticed is that many franchisees who are uninsured are under the impression they do have workers’ compensation, and these assumptions have occurred for a number of reasons:
“Doesn’t the franchisor arrange cover?” This is a question we’ve heard from a lot of franchisees we speak to, when we find they don’t have a current policy in place, and they believe the franchisor or franchisor’s broker has already arranged cover for the workers. It is the employer’s duty to ensure they have a current workers’ compensation policy in place, and in franchising arrangements, the franchisee is considered to be the employer because: • they set the workers’ hours; • they supervise and control workers; • they pay the workers’ wages; and • they have the right to hire and dismiss them. If you rely on a third party to arrange insurance cover, like an insurance broker,
“In Australia and New Zealand, workers’ compensation insurance is a legal requirement. In Western Australia, employers must have workers’ compensation insurance for anyone they employ who is defined as a ‘worker’.”
you should follow up and ensure current coverage is in place by obtaining a Certificate of Currency. In Western Australia, this is issued by a WorkCover WA approved insurer. Not being able to produce a Certificate of Currency is considered an offence under State legislation. Make sure you review your contract with your franchisor, and contact your insurer or broker to confirm you have adequate coverage.
“I thought my public liability insurance covers workers’ compensation.” Public liability insurance helps protect a business against the financial risk of being liable for negligence, for example if food or drink sold by a franchisee causes serious illness to a customer. Workers’ compensation insurance is not covered by public liability insurance, because it operates under a ‘no fault system’. That is, an injured worker does not need to prove negligence on your behalf, like they would for public liability insurance, to make a claim. You will need both types of insurance to adequately meet your obligations as an employer.
“I have a business insurance package. Doesn’t that include workers’ compensation?”
Business insurance packages typically cover risks to property damage, interruption to business income, third party injury or property damage and machinery or electronic breakdown. Many business packages exclude workers’ compensation liability, and franchisees involved can face penalties for not having adequate insurance. If you currently have a business insurance package, make sure you contact your insurer or broker to check you have the correct coverage.
“I thought my workers’ compensation insurance automatically renews each year.” Unfortunately, workers’ compensation does not automatically renew and it’s your responsibility to remember when your coverage expires. This means you need to obtain a new Certificate of Currency each year. A good way to remember when your coverage expires is to put the expiry date in your work diary or calendar as soon as you receive the new Certificate, or put in a reminder a couple of weeks before it expires to contact your broker or insurer. If you’re now a little unsure whether you have adequate workers’ compensation, or haven’t previously considered it, please contact your insurer or broker to arrange for coverage or to confirm the currency of your policy.
For franchisees in Western Australia, you can call our Advice and Assistance line on 1300 794 744 if you have any questions. The WorkCover WA website also has a range of resources, including short educational videos and publications that can assist you. We want the franchising industry to continue to thrive and grow, so it’s essential all people involved in these arrangements are aware of their obligations and have adequate insurance in place to look after themselves and their workers. Franchise Council of Australia, Franchising Australia 2016, January 2018
1
Franchise Association of New Zealand, Franchising New Zealand 2016, January 2018
2
Safe Work Australia: Australian Workers’ Compensation Statistics 2015-16, January 2018
3
Accident Compensation Corporation New Zealand: Statistics on our claims, March 2018
4
Stephen Psaila-Savona has 23 years’ experience in the Western Australian public sector, and is the General Manager Regulatory Services at WorkCover WA. WorkCover WA is the government agency responsible for overseeing and administering the workers’ compensation and injury management scheme in Western Australia. 1300 794 744 www.workcover.wa.gov.au
Business Franchise Australia and New Zealand 61
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The Purchase Decision “The purchase of any business, franchise or otherwise, is one of the most important decisions anyone can make in their life. Not only will they need to pledge all their assets (including the family home), they will be liable for any future losses.”
To buy an existing business or look for a greenfield (new) location will be only one of the many questions franchise buyers will need to consider. The most critical step when considering the purchase of any business is the ‘due diligence’ process. Simply put, due diligence is a comprehensive study of the business to establish and verify the current position (financial and operational) and to evaluate its future potential. Some aspects to consider include: • What is actually being bought? Buyers need to consider the purchase price in light of the sustainability of the business model, condition and suitability of equipment,
Steve Seddon | Senior Business Development Manager | Westpac
quality of the stock, lease and franchise terms, goodwill values etc. • Ingoing costs including working capital, landlord bond, prepayments, stamp duty, GST, training (including travel and accommodation costs) legal and accounting expenses plus a contingency for the unexpected. • Current financial performance. If considering an existing business, the buyer
62 Business Franchise Australia and New Zealand
should look at the historical financial statements (prior 3 years plus management accounts covering the period since the end of the most recent financial year). Analyse trends, benchmarks and prior financial performance, verify turnover, margins, labour costs, overheads, lease terms etc. • If the location is greenfield (new). Professional input in drafting financial projections is essential.
• Does the purchase price being asked reflect the financial performance of the franchise? It is not uncommon for a business’s value to decline over time as equipment and fitouts depreciate and lease/franchise terms expire. Purchasers are best to seek expert advice to ensure the purchase price is fair, reasonable and supported by current market evidence. • Ongoing refurbishment costs, equipment replacement costs and timelines need to be considered. It is not uncommon for leases of retail business to require a major refurbishment prior to any lease extension. Also, franchisors may require equipment and vehicles be replaced at specified times. • In assessing the expected financial return. Separate the personal excursion component (income the buyer would expect from working in the same job for someone else) and the return on the financial investment. Buyers need to consider the overall risk and ensure they are getting a satisfactory return on their capital. • How much capital will be required and how will the franchise be financed? Buyers should speak to a banker with expertise in the franchise sector who will be able to assist in understanding the financial, transactional and personal requirements. Buyers need to prepare a comprehensive business plan and detailed application to support any request for finance. This will include copies of personal bank statements, business sale agreements, leases, franchise agreements, historical financial statements, financial projections (with assumptions) etc. • As part of the purchase process, buyers need to consider their strategy to sell or exit the business. Assumptions and expectations should be discussed with their respective advisors. How the owner maximises the businesses financial return will have the most impact on the sale price. Risks need to be considered and understood. (Increased competition, reduction to profit margin, changes in consumer taste etc.). • Contacting a wide range of existing and previous franchisees. Contact information will be provided by the franchisor and included in the franchise disclosure document. Intending purchasers should enquire about franchise support, communication with the franchisor, initial and ongoing training, financial returns, trends, quality of suppliers and other issues which may be key factors within the business/industry. • Buyers need to conduct their own independent research on what it means
“The purchaser should undertake a comprehensive due diligence process on the business. This should be conducted with the assistance of a business advisor, accountant and lawyer, all of whom are expert in the franchise sector.” to be the owner of a franchise business, including their rights and responsibilities. The Franchise Council of Australia (FCA) and Australian Competition and Consumer Commission (ACCC) have a large amount of information and reference material. This could be very useful in building an understanding of the franchise business model. Purchasers need to ensure this process is not rushed and they have the full co-operation of the vendor, business broker, landlord and franchisor. Purchasers should not proceed unless they are sure they have full disclosure from all parties. Businesses with a seemingly low sale price may hide a higher risk. In addition to the initial purchase price and ingoing costs, the incoming business owner is liable for any ongoing losses (including minimum franchisee fees) and is responsible for the ongoing lease liability and de-fit obligations at the end of the lease. Notwithstanding a seemingly low initial purchase price, these costs quickly add up and magnify potential losses. This often results in dire financial consequences for the purchaser.
Where to start As already outlined, the purchaser should undertake a comprehensive due diligence process on the business. This should be
conducted with the assistance of a business advisor, accountant and lawyer, all of whom are expert in the franchise sector. The franchise system should be comprehensively researched and disclosure documents, franchise agreements, leases and other documents examined and understood. Research should include details on the background of the franchisor and its executives. Any financial failure by the franchisor will impact the ongoing viability of the business and its value. Several recent franchisor failures have resulted in franchisee businesses being rendered worthless. Workplace payments to employees need to be verified and tested. Staff rosters should be closely examined for hours worked, payments made and compared to award conditions. Any additional labour costs will reduce the future maintainable earnings of the business being purchased and will have a significant impact on business values. If undetected, this will cause additional financial stress to the purchaser. A meeting with the landlord will provide an opportunity to ask questions and better understand where the franchise business fits within the location/centre. Ask about possible impacts from redevelopments, both within the centre and within the catchment area. Make enquiries with local authorities to better understand any risks and future impacts.
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“Buyers need to conduct their own independent research on what it means to be the owner of a franchise business, including their rights and responsibilities.” Meeting with the franchisor to discuss the future direction of the franchise business and the system as a whole will also assist. Does the franchisor plan to introduce new products/services? Will additional equipment be required? How does the purchase price of stock compare to competitors (franchise and independent)? Does the franchisor receive a rebate or incentive from suppliers and does this get passed back to the franchisee?
Next steps On completion of the due diligence process, the buyer should use this information to determine if they want to proceed with the purchase and on what basis. If the due diligence and research process uncovers information impacting the business the buyer may either decide not to proceed or reassess the price they are prepared to offer. It is important that any sale agreement contains conditions allowing this outcome. If the purchaser is applying for finance they should speak to a banker who specialises in lending to the franchise sector. Preparation including a completed business plan and
supporting documentation will assist in this process. The purchase of any business, franchise or otherwise, is one of the most important decisions anyone can make in their life. Not only will they need to pledge all their assets (including the family home), they will be liable for any future losses. To be a success they will need to fully commit to the business and be prepared to apply all their time and effort.
Final point Although buying any business has an element of risk, undertaking comprehensive research and completing a due diligence process will provide a better understanding of the opportunity. Experience shows that purchasers who put in time and effort at the investigation stage have a much better understanding of the key business drivers and the importance of relationships with key stakeholders including, franchisor, landlord, suppliers, banker and other franchisees. If the process is done well, the purchase or
64 Business Franchise Australia and New Zealand
establishment of a franchise business can provide worthwhile financial and personal benefits and be highly satisfying. Additional information is available at Westpac’s Davidson Institute website located at: www.davidsoninstitute.edu.au. Steve Seddon is Westpac’s, Senior Business Development Manager – Franchising, Western Australia, Queensland and South Australia. He is a CPA and a member of the Franchise Council of Australia’s Western Australian committee. Westpac continues a long-term commitment to the franchise sector in Australia. The bank has a national network of franchise specialist business bankers who are able to assist with the specific needs of the franchise sector. Contact Steve at: 0407 401 892 sseddon@westpac.com.au www.westpac.com.au/business-banking/ industries/franchising/
The information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreements should seek their own independent legal, accounting and other advice.
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PR OFI L E : sandwich chefs ®
AUSTRALIA LOVES THE HUMBLE SANDWICH Three great mates walk into a sandwich bar…
experience in franchising, they know how to design a great sandwich and a great business for Sandwich Chefs® franchisees.
This is the beginning of a true story that formed a delicious partnership driven by the desire to make the kind of sandwiches people can’t make at home. The trio don’t always agree on how to do things, except for when it comes to making sandwiches properly. This includes having fresh local produce delivered daily, sourcing artisan bread and making as much as possible from scratch including 14 hour slow-roasted beef and pork with amazing crackling.
Sandwich Chefs® have made a considerable investment in the new Sandwich Chefs® brand and a store image which has been architecturally designed to deliver functionality, low investment cost and to be visually appealing and memorable. Sandwich Chefs® has enjoyed exceptional growth recently, predominately through reinvestment by its existing franchisees. Now with 60 franchise stores nationally and 12 more currently in development, Sandwich Chefs® and its franchisees are excited about the future.
Sandwich Chefs® first opened in 2001 in Sydney. Initially offering sandwiches, salads and coffee under the name of Fancy Fillings® the menu is now anchored by its unique hero products of slow roasted succulent carvery meats and make your own gourmet sandwiches but has now also expanded to include breakfast, freshly squeezed juices, hot pastry products, hot vegetables, and an expanded salad range. A fresh alternative to fast food and the made to order approach means Sandwich Chefs® has a unique proposition, but also has something for everyone, even the fussiest of eaters. Sandwich Chefs® Directors have over 30 years’
biggest shopping centre” if it does not meet the selection criteria it is rejected). Sandwich Chefs® engage the services of external retail property experts to source suitable locations, to ensure that the site selection criteria are applied independently and vigorously, and to negotiate best in market terms for all retail leases. Despite its proven track record Sandwich Chefs® recognises that it cannot eliminate risk but has invested in systems and services to identify and minimise risk where possible.
Sandwich Chefs® has adopted a policy of continuous investment in its training systems, advertising and marketing, new online ordering technologies and franchisee business coaching. Importantly Sandwich Chefs® is focused on the development of its franchisees to have the skills and resources to become multi store operators.
Sandwich Chefs® is committed to the long haul with its franchisees and knows that if they are not successful then neither is Sandwich Chefs®. Sandwich Chefs® believes it will be judged by its least successful franchisee not necessarily its most; it’s a team effort and a strong and effective business relationship between Franchisee and Franchisor is critical to the success of each individual business and the Franchise network overall. Sandwich Chefs® is in business with its franchisees, they are their own bosses, but they are not on their own.
Sandwich Chefs® is committed to its franchise businesses occupying premium locations. Importantly the definition of premium is based upon a series of refined selection criteria (regardless of being “the best site in the
Call Gary Powell National Network Development Manager on 0431 591 029 Or email: gary@pnfm.com.au Or visit: www.sandwichchefs.com.au
66 Business Franchise Australia and New Zealand
FRANCHISE OPPORTUNITIES AVAILABLE NOW NEW SOUTH WALES Nepean Village Penrith West Ryde Market Place Baulkham Hills Stockland Casula Mall Shopping Centre Stockland Wallsend Shopping Centre Warrilla Grove Shopping Centre St Marys Village Shopping Centre QUEENSLAND Brookside Shopping Centre Mitchelton Carindale Westfield Coomera Square Westfield Australia Fair Southport Grand Central Toowoomba Sunshine Plaza Maroochydore Hinkler Central Shopping Centre Bundaberg SOUTH AUSTRALIA Brickworks Market Place Hindmarsh Parabanks Shopping Centre Munno Parra Shopping Centre Golden Grove Shopping Centre VICTORIA Plenty Valley Westfield Mill Park Central West Braybrook M-City Monash Clayton Shepparton Market Place Bentons Square Mornington
call gary powell national network development manager
www.sandwichchefs.com.au
0431 591 029 or email gary@pnfm.com.au or visit our website Business Franchise Australia and New Zealand 67
e x pert a dv i c e
Why local marketing should be on your agenda
Franchise marketing presents a unique and sometimes complex challenge. The benefit of a proven business model can quickly become frustratingly restrictive once the doors open. Especially if the proud new owner discovers they are more entrepreneurial than they thought, or business performance is lacklustre in the early days. One of the biggest attraction points to become a franchisee is that it offers the opportunity to own your own business, without having
to jump through the hoops it would take to launch a traditional small business. The ability to leverage the credibility of an existing brand, alongside a business model that is generally proven to be successful is understandably appealing, however it does come with limitations, particularly around brand management. When you consider a business’ most valuable asset is arguably their brand, it makes sense that a franchisor would want to have consistency and control over their public image across multiple locations. Moving too far away from the core characteristics and positioning of the company can be detrimental to business. No brand wants to look sloppy, unprofessional and uncoordinated. On the other hand, local area marketing is recognised as one of the most effective ways to engage and drive business within communities. Connecting with the people who visit your business regularly- digital
68 Business Franchise Australia and New Zealand
or offline- and having an active presence in the community is conducive to building profitability, trust, a credible reputation and distinguishes friendly local businesses from cold, faceless corporations. Local area marketing can produce a variety of fantastic results, for example we recently saw one franchise gain 100 memberships through a Corporate Fitness challenge given its proximity to a local business park. In comparison, its sister location generates 25 per cent of its revenue from joining fees from transient customers, being located in a tourist town. Imagine walking away from both opportunities because of a blanket ban on local area marketing But how can you execute properly on all these local opportunities across the country? How can franchisors maintain autonomy and still enable franchisees to execute local area marketing, whilst keeping head office at ease when it comes to brand integrity?
Don’t be naive in recognising pain-points: Before diving head-first into a local area marketing proposal, it’s important to realise and understand the hesitations that exist on the corporate level. Head offices know their franchisees have the knowledge and insight to run their own local area marketing. They’re part of the community and hold the best customer relationships. They understand local seasonality, the nuances of local competition, and where they’re winning. No one is better placed to produce engaging local marketing than franchisees- and contrary to what a lot of franchisees may believe, head office is well aware of this. The biggest issue is recognising if this opportunity if profitable enough to outweigh the potential risks. When brands have been burnt before, many become risk averse. Many head offices hold the concern that while franchisees may be fantastic business people, they may not have the marketing expertise to execute campaigns to an acceptable level that strengthens the brand rather than destroying it. After all, the proportion of franchises that award new locations to prospective owners based on marketing acumen is next to zero. In order to realistically implement a local area marketing process, franchisees and head offices need to work together to identify areas of concern and put into place a guideline that works for both parties, and most importantly mitigates any risk of brand damage. Define the desired outcomes of local area marketing, the channels through which this will be executed (will it be limited to social media or will this include direct marketing, events etc.?) and set clear no-go zones to ensure all parties share mutual expectations.
Invest in the right tools Franchise business owners need a way to channel the passion, insight, personality, will, and financial motivation of franchisees into strictly controlled, brand-approved marketing communications. You can’t expect expert level marketing campaigns without providing the right tools. Unless franchisees have advertising or marcomms backgrounds, chances are they may be new to the marketing game and can benefit from tools that make their lives easier as well as produce professional content that drives business outcomes. That’s how we came to build Digital Stack. We realised franchisees were exceptionally
“Franchise business owners need a way to channel the passion, insight, personality, will, and financial motivation of franchisees into strictly controlled, brand-approved marketing communications.” Peter Harris | Founder | Digital Stack
passionate about the success of their business and wanted to invest in their marketing strategy, but didn’t have the right tech support, understanding or faced obstacles from their franchisors. Franchisor support is crucial when it comes to implementing new systems and strategies. The most successful brand head offices are the ones that embrace new technology and trends and use it to their advantage. Groups like 9Round Fitness, Subway, Domino’s and Snap Fitness are leading the way in this area. From the outset, each of these companies invested in creative, yet simple and easy to follow brand guidelines to ensure everything from tone, style, colour palette and logo were well defined. They also do a great job in making ready-to-use content available to save franchisees from having to do their own graphics work. These brands demonstrate consistency, regardless of whether content is used across social media platforms in email, or used as physical collateral for hand-outs, posters and more. In a recent February 2018 trial with a global fitness franchise we ran a side-by-side comparison between gyms using branded templates and those with no marketing guidelines or tools. For those using branded templates across their social media, traffic to their landing pages was 112 per cent higher compared to the control group. Conversion rates in the gym were even stronger, with three times more trialists converted in locations using localised, branded content like posters, signage, name tags, business cards and referral cards. When identifying the right tools to assist with local area marketing, decision makers need to be considering platforms that benefit both franchisees and the franchisor. Other tools we see work well in franchises are group communication tools like Slack or Facebook or LinkedIn Groups where franchisees can share specific tips or learnings from their campaigns. From times of the
day to be handing out free trial cards, to note swapping on successful upsell tactics, franchisees love sharing their day-to-day tips. Too often, we see tools like Canva used that give franchisees too much bandwidth to get creative with the branding, whereas approaches like uploading non-editable images to Dropbox can be too restrictive and take all autonomy away from the business owner for fear of brand damage. The only way to reap the benefits of local area marketing is to leverage tools and procedures that support and empower franchisees to showcase the brand in the best possible way. Perhaps the worst trend (and most detrimental to brand integrity) is franchisors completely banning local area marketing. By preventing business owners from spreading the word about the companies they’ve poured their heart, time and finances into, there’s a high chance that franchisees will go rogue and take marketing into their own hands anyway. In the same way that prohibition led to bootlegging and the establishment of organised crime, an outright ban on local area marketing produces ugly unintended consequences. Desperate promotions, amateurish signage, suicidal pricing, poor resolution cut-and-paste graphics on social media are just some of the many marketing faux pas. Running a franchise comes with many challenges and for those who may be struggling to attract customers or are having a slow patch, growth at all costs can quickly become the mindset.
Turning chains into communities Perhaps the biggest benefit that comes with investing in local area marketing is the ability to engage with local communities at a grass-roots level that drives tangible business outcomes. Snap Fitness franchises are a stellar example of how successful local area marketing can propel a business’ growth at the suburban
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level that creates a positive ripple effect to the overarching brand reputation. Snap Fitness franchises are recognised as market leaders given their growth track record. They’ve historically had fantastic success in turning ‘new franchise gyms’ into local institutions with engaged followers, within 12 months, demonstrating some of the highest levels of engagement and activity across social platforms when compared against users from over 20 countries. At a national and international level, they do it through polished branding and cementing their overarching positioning, from 24/7 hours, to quality equipment and flexible membership options. At a local level, engaging local success stories (like body transformations that inspire the community and spread like wildfire on social media), timely email campaigns to combat local seasonality and quiet times, and smart community outreach to local businesses and sports clubs are strong points. Their communication strategy is so strong and well-managed that the brand is able to replicate this success across an impressive 18 countries.
“Desperate promotions, amateurish signage, suicidal pricing, poor resolution cut-and-paste graphics on social media are just some of the many marketing faux pas.” Ty Menzies, CEO of Lift Brands Australia and New Zealand which includes Snap Fitness, says the company experienced similar marketing challenges across their global markets.
business success. For forward thinking franchise businesses, local area marketing should be front of mind to stay relevant in a competitive market.
“The strength of a brand is about being able to control it, but franchisees are always asking for more flexibility. They need something specific for their location, for their marketplace,” he said.
Peter Harris is the founder of franchise marketing platform Digital Stack, which aims to connect global brands to local customers with simple and useful technology.
Businesses like Snap Fitness demonstrate the value in introducing local area marketing to your business. For franchise business owners and franchises alike, ignoring local area marketing is a sure way to limit growth and earning potential by cutting out important market segments. When empowered with the right tools to protect brand integrity, local area marketing could be the secret weapon to accelerating
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Digital Stack is the leading marketing platform for franchises. It provides complete brand protection while enabling franchisees to quickly create professional, localised communications, from Facebook posts to brochures, Google Adwords and more. support@digitalstack.io www.digitalstack.io
Business Franchise Australia & New Zealand is part of the global network of CGB Publishing
With over 30 years’ experience in providing high quality business information, with a particularly strong focus on franchising, our global presence allows opportunity for international franchise marketing solutions. T H E
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PR OFI L E : N ene chicken
Yes! Yes! and Yes! to NeNe Chicken , d o o f g n i Excit
served for life!
Korean fried chicken brand NeNe Chicken is growing in Australia with the accent on quality, excitement and flavours that come directly from its home country. “Yes Yes”, the translation of “Ne Ne” is simple and yet the purpose is so much more. Eating well, being happy and paying it forward has been the mantra that has allowed this top tier chicken franchise to grow its presence to over 1,000 outlets across South Korea alone. Recognised as an international restaurant franchise, NeNe Chicken Australia brought this popular taste of Korea to the Australian shores in 2015 and the response has been magnetic. Customers that make a ‘Happy Choice’ believe in giving back to the community and this rolling momentum resulted in five outlets opened their doors
within six months of launching in Australia. The secret to the success of NeNe Chicken is the unique combination of bold seasoning, farm-fresh chicken and cheerful culture. This ensures that customers dining in or taking away will experience the spirit of happiness that has made this Korean brand both an offshore and local sensation.
EXCITING FOOD, SERVED FOR LIFE! Made to order, NeNe Chicken have a variety of crunchy, juicy fried chicken coated with various mouth-watering selections of palate popping sauces. From Original, Swicy, Freaking Hot, Oriental Green Onion to Snowing Cheese, Snowing Vegetables, Bulgogi, Lemon and Garlic; NeNe Chicken offer a great selection of fried chicken flavours for their customers. The Nene Chicken brand is continuing to grow within Australia as new locations look to offer an authentic taste of Korean fried
chicken. So, what makes the NeNe franchise system different? NeNe Chicken believe the key difference to their franchise system is the genuine desire for franchisees to feel that they are part of the NeNe family - that everybody succeeds when together. The company philosophy is to live well, enjoy life, and the happiness with family and friends every single moment, that’s the “Ne Ne” way. The business focuses on customers enjoying their NeNe experience, and the franchisees running a successful business. Offering three store concepts: a full dine-in experience, express concept and food court concept, the initial investment of a NeNe Chicken franchise is from AU$500,000 - $700,000, fully inclusive of site selection, store set up, marketing and ongoing support as required. Find out more about becoming a NeNe Chicken franchisee here: www.nenechicken.com.au/franchise
72 Business Franchise Australia and New Zealand
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BE A BOSS! OWN A NENE STORE The NeNe Chicken brand is gaining momentum as un-touched locations look to offer an authentic taste of Korean fried chicken. We have a formula for growth that we’re sharing with all franchisees. If you’re interested in becoming your own boss whilst being supported by global experience and resources - let us know today.
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How to keep your small business safe from cyberattacks The cost of cybercrime to businesses in Australia is rising exponentially, costing Australians an estimated $1 billion each year.1 The average cost to a business, per attack, is $276,323 and 53 per cent of that cost is spent on detection and recovery rather than prevention. Web-based and insider attacks make up around half of the breaches companies experience. Between 2016 and 2017, reports to the Australian Cybercrime Online Reporting Network (ACORN) indicated that the cost of cybercrime in Australia had increased by more than 230 per cent.2 These statistics illustrate that the risk and the cost of being attacked by cybercriminals is growing exponentially. The cost to your business comes from business disruption,
information loss, revenue loss, productivity loss, and equipment damage. This can be compounded by reputational damage if the marketplace finds out about the security breach.3 Furthermore, the new addition to the federal government’s Privacy Act requires businesses to report certain data breaches to the individuals concerned and to the Office of the Australian Information Commissioner (OAIC). Known as the mandatory Notifiable Data Breach (NDB) scheme, the legislation calls on businesses to help individuals take a proactive role in protecting their private information by informing them if a breach has taken place that is likely to cause serious harm. The definition of serious harm isn’t limited to financial losses and includes psychological, emotional, and reputational damage that the person might experience as a result of their information being accessed by unauthorised parties. Failing to comply with this legislation
74 Business Franchise Australia and New Zealand
can result in significant fines and civil penalties. Yet, despite the growing momentum towards cybersecurity awareness and protection, too many Australian businesses are taking a laissez-faire attitude to cybersecurity. Research has shown that almost two in three SME owners feel well-informed about the risks of cybercrime, and 80 per cent of SME owners feel their business can respond to a security breach. This makes these owners more confident than some ASX-listed companies, which have the funds and resources to employ highly-qualified security professionals.4 Worryingly, SMEs don’t prioritise cybercrime and are more worried about managing overheads and expenses, chasing payments, and protecting cash flow, competing in the marketplace, and political uncertainty.5 This could demonstrate that they’re underestimating the potential effects of a cyberattack on their business. Yet, as
the statistics demonstrate, the effects of a cyberattack on a small business can be devastating. The extent to which a business can fully recover from a security breach depends, of course, on the nature and severity of the breach, along with the organisation’s response capabilities. A company that falls victim to a ransomware attack, for example, may be able to continue operating without much inconvenience because all the organisation’s data is backed up and the business can immediately switch over to the backed-up version of its data and keep operating. However, a denial of service attack is often the most expensive kind of attack, which can prevent a business from operating altogether until the problem is rectified. The average time to resolve an attack is 23 days, which is a long time for a business to be unable to operate at full capacity.6 Many small business owners fail to appreciate the risk facing their business because they assume a small business isn’t an attractive target for cybercriminals. However, when that small business is part of a franchise, it becomes a much more lucrative and attractive target. Gaining access to one part of the network often makes it possible to access the rest of the franchise’s systems so cybercriminals can harvest credit card details, steal information, carry out ransomware attacks, or sabotage the business. For example, franchisees often use some IT solutions that are supplied by the franchisor, such as point of sale systems. However, franchisees often use their own HR software, along with rostering, timesheets, and payroll systems, all of which contain sensitive information about staff. This is of particular concern given many franchisees employ minors, and these personal details could be at risk in a security breach. According to the Australian Cyber Security Centre 2017 Threat Report, many of the incidents that Australian businesses have experienced could have been prevented if the organisation had employed established and straightforward cybersecurity measures. Many attacks use publicly-known vulnerabilities that should have been patched. This highlights how easy it should be for businesses, regardless of size, to reduce the risk of being significantly affected by a security breach. The first step is to understand that, even if your business or franchise hasn’t yet been hit by a cyberattack, it’s only a matter of time. Cybercriminals enjoy a high reward versus the risk they take: it’s difficult to
“Gaining access to one part of the network often makes it possible to access the rest of the franchise’s systems so cybercriminals can harvest credit card details, steal information, carry out ransomware attacks, or sabotage the business.” Kerry Tang | Cybersecurity Professional
personally identify cybercriminals and they can potentially reap big profits from their activities. All it takes is for a business to send or receive payments online, use email, or store customer records electronically. This all creates a digital footprint that can lead cybercriminals straight to you. If you also have an online presence through a website and/or social media page, the risk increases. Yet it’s impossible to do business in today’s digital era without these online capabilities. There are six basic steps you can take to keep your business safe:
2
Patch everything
Most apps have bugs or vulnerabilities that hackers can use to gain access to a company network. Patches are pieces of code that fix those vulnerabilities. They’re released regularly by software developers, so businesses should subscribe to the mailing lists for all the company’s operating systems, infrastructure, and applications, then apply patches as soon as they’re released. Too many successful attacks happen as a result of businesses failing to apply the most up-to-date versions and patches.
3
Don’t neglect anti-virus
1
Share information sparingly
Many businesses rely on social media to advertise and market their business. In looking to create and maintain individualised relationships with customers, businesses can unwittingly make it easier for cybercriminals to successfully target the business. As business owners become more securitysavvy, it’s harder for cyberattackers to gain access to the network by brute force or traditional hacking techniques. Consequently, social engineering techniques are growing in popularity. These techniques use small amount of personal information, usually gained through social media accounts, to trick a person into thinking they’ve received an email from a trusted colleague or boss. The email may direct the recipient to transfer money into an account, as happened to one US business to the tune of US$500,000.7 Or, the email could include a link that looks legitimate but actually takes the recipient to a spoof website at which they’re instructed to enter their username and password. Once that happens, the cybercriminal can use those credentials to log into the system and cause damage or steal information. Your company’s social media pages can provide a great deal of information that cybercriminals can use to attack the business, such as details of a new deal, new product, or company restructure. It therefore makes sense to think twice about the information shared via social media.
While the proliferation of different types of attacks can make anti-virus tools seem old-fashioned, the truth is that anti-virus tools can detect and defend against many socalled zero-day attacks, which don’t yet have patches available. So, it’s essential to invest in sophisticated anti-virus software and keep it up to date. Simply investing in the right tools, then adopting a set-and-forget attitude won’t keep your company secure. It’s essential to continually upgrade and patch your security software to ensure it keeps working to protect the business. Cybercriminals move fast, so anti-virus tools can become out of date quickly if you ignore them.
4
Reconsider plugging in and clicking on
USB sticks can harbour nasty malware infections, so unless your company absolutely relies on external drives, they should be disabled. Similarly, employees should be educated not to click on attachments or links in emails, in case they lead to malicious sites. It’s valuable to create a company policy around things like emails with links, then make sure everyone in the organisation is aware of it. Simply making it clear that an employee will never be asked to enter their credentials in an email could prevent employees from falling for a social engineering or phishing scam.
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“Simply making it clear that an employee will never be asked to enter their credentials in an email could prevent employees from falling for a social engineering or phishing scam.”
5
Protect information
Often, malicious actors get information because staff members have either accidentally or deliberately shared it. Staff should be educated regarding what’s safe to share and what should be kept in confidence. All data should be backed up regularly to protect it in case of a disaster. Then, if a hacker tries to deploy ransomware, the business can simply revert to a backed-up copy of the data and operate as normal.
6
Use strong passwords
Passwords can be all that stands between a cybercriminal and an organisation’s entire network. It’s important for employees to use strong passwords, two-factor authentication, and different passwords for different systems. All it takes is for a cybercriminal to crack one password and the entire network could be vulnerable. All businesses operate in a digital world. To stay safe, you need a robust cybersecurity
framework. Working with the right partner can help you secure your business. References Australian Government, 2017, Australia’s Cyber Security Strategy – enabling innovation, growth and prosperity – First annual update, Attorney-General’s Department, Canberra. 2 www.staysmartonline.gov.au/sites/g/files/net301/f/ Cost%20of%20cybercrime_INFOGRAPHIC_WEB_ published_08102015.pdf 3 Australian Cyber Security Centre 2017 Threat Report. 4 www.asial.com.au/documents/item/988 5 www.asial.com.au/documents/item/988 6 www.staysmartonline.gov.au/sites/g/files/net301/f/ Cost%20of%20cybercrime_INFOGRAPHIC_WEB_ published_08102015.pdf 7 Australian Cyber Security Centre 2017 Threat Report 1
Kerry Tang is a cybersecurity professional with experience in security risk assurance and evaluations, who provides expertise to clients primarily in financial services.
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Kerry also delivers cyber security services and consulting, including designing, customising and managing security for business environments and data. Aleron was established in 2010 to provide skilled and experienced information security consultants and engineers. Aleron provide IT security consulting, technical implementation and staff augmentation to deliver a variety of specialised security skills and functions. Aleron provides cyber security services across multiple industries including financial services, retail, construction and education. Some key clients are CBA, Westpac, McDonald’s, Woolworths, Coles FS, Superannuation, and Insurance companies. www.aleron.com.au
WILD CLAIMS versus
FACTS
Small on WILD CLAIMS - BIG on FACTS We could tell you how great our business is and how it’s transformed lives. We could tell you that it has enabled ordinary people with no previous experience in business to earn a fantastic income and control their own destiny. We could call our business model unique and claim to have secret marketing strategies that will have customers flocking to your doors. We could tell you that we have low start up costs and what a great lifestyle business ours is (whatever that means). We could call it the Opportunity of a Lifetime. At Car Care however, we think it’s important to stick to the facts. We give you the facts and leave the rest up to you. FACT 1 – We have been around for over 30 years. FACT 2 – We do have more franchisees operating in Australia than any other detailing business. FACT 3 – Over the last 25 years 200+ ordinary people have made a good living in their own Car Care business. FACT 4 – The majority of our franchisees earn over $1800 per week ($80k+ p.a.). FACT 5 – We have a local Master Franchisee in every state so that your support base is close at hand. FACT 6 – Although our business is simple to operate we provide comprehensive training on the technical and business side of the business. FACT 7 – You control the hours you work. FACT 8 – We will encourage you to talk to our existing Franchisees so you get a balanced view.
GET THE FACTS TODAY BY CALLING
1300 227 227
www.carcare.net.au
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How to be a $1m agent in any business
“The most important thing is to recruit and train good people. When hiring new staff, look for candidates with a great attitude who are going to buy into your vision as a business.” Adam Flynn | CEO and Director | Biggin & Scott Knox
throughout my career I’ve been guided by a set of principles that have kept me on track to being one of the best in my industry. These principles aren’t specific to the property business – I believe they are transferable across industries so that any small business can achieve the same level of success that I have enjoyed.
Hire for attitude over skill
Real estate agent, auctioneer and property investor Adam Flynn grew his business by 700 per cent in the last five years. Here’s how to achieve the same success in any industry. Real estate was my passion long before it was my career. I dropped out of school in Year 11 but I always had a lot of ambition. I knew I wanted to get into real estate, but I had to wait until I was 18 before I could enter the industry. Very early on I figured out that the key to success in the real estate business is in securing listings. A vendor might interview four or five potential agents to sell their house,
so having a strong presentation strategy is crucial in getting them to choose you over the competition. I’ve spent my career testing and refining my listing presentation from every possible angle to find the most effective process, which I now pass on to new agents at Biggin & Scott Knox through my training program, the $1m Agent System. An agent undertaking this training early in their career will typically go from writing around $160,000 annually in commissions to $800-900,000 within a year, through achieving a 90 per cent conversion rate. I’m no stranger to this kind of rapid growth. My co-director at Biggin & Scott Knox, Danelle Hunter, and I have grown the business by 700 per cent in five years, starting with one office which then grew to five, with another two on the horizon. I have a burning desire to win, and
78 Business Franchise Australia and New Zealand
The most important thing is to recruit and train good people. When hiring new staff, look for candidates with a great attitude who are going to buy into your vision as a business. You want staff who are going to commit to the business and feel a sense of ownership in watching it grow. Don’t settle for a list of skills – go for candidates who display enthusiasm, persistence, grit, consistency and team commitment. Then train them. Provide them with everything they need to learn the ins and outs of your business. And if at first they don’t succeed, give them even more training. I put all new agents at my office through my $1m Agent System training. After a month of implementing the system, I get them to perform a listing presentation with a simple pass or fail result. If they don’t pass, that’s okay – they get more training and try again. It might seem like a big investment in time and resources, and it is – but it will pay off dividends down the track. Staff who are more
invested in the success of the business are more likely to stick around for the long haul. Skills can be taught, but the wrong attitude or bad behaviour is much harder to change.
Fire up their strengths I have a saying that’s helped me focus on my strengths throughout my career – stay in the flame, not in the wax. The ‘flame’ is someone’s sweet spot – it’s where they’re in their element and firing on all cylinders. The wax, on the other hand, is what slows people down – their weaknesses. If you put your staff in areas where they can make the best use of their talents, they will thrive. Don’t waste too much time struggling to eradicate weaknesses. Let your staff do what they do best, and fill skills gaps by hiring people for whom those weaknesses are strengths. Self-awareness is key here. You need to be aware of your own strengths and weaknesses as a business owner and a leader, so that you can stay away from your areas of weakness and outsource those tasks to someone who can do them in their sleep. It improves efficiency immensely and everybody’s happy because they’re doing what they love.
Build a replicable process As previously mentioned, every new agent we recruit at Biggin & Scott Knox goes through my $1m Agent System training. This system teaches agents how to secure enough listings to build up to $1m in commissions in a year. In this training session, I walk agents through every moment of my listing presentation process, from the first phone call to where I park my car, how far I stand from the front door and what I do and say when the client invites me inside. The structure of my listing presentation is always exactly the same, tried and tested over 20 years of selling property. Developing a process, applying it consistently and communicating it effectively to the team is critical to the success of any business. It reduces the risk of someone making an error and makes it easier to identify what is wrong when business dries up. Whenever one of my agents tells me they missed a listing, I get them to run me through a listing presentation to make sure they are following it to the letter. If they are taking shortcuts or missing even the tiniest step, it can make all the difference in making or losing the listing. Having a replicable process in place deals with the friction that comes with scaling your business. New staffers can get up and running quickly and working to the template that you
“The most important thing is to recruit and train good people. When hiring new staff, look for candidates with a great attitude who are going to buy into your vision as a business.” have already rigorously tested in the field. It’s also important to keep your own knowledge up to date. Everything in the training is based on my own experience – I’m still active in listing properties and wrote $2m in sales last year, all while gathering valuable data on what works and what doesn’t.
Establish non-negotiables In addition to making sure everyone on the team is following a tried and tested process, you also need to set standards for behaviour in the business – and stick to them. Things like punctuality, personal presentation, adhering to business processes and order of business in meetings should be upheld as sacrosanct, and any violations of these rules must be taken seriously. As soon as you let standards slip with one person, others will follow suit. Maintain clear boundaries around what is and is not acceptable within the business.
Hold people accountable All of the advice I’ve listed above is worth nothing unless you hold the people in your business accountable. Are they following all of the protocols you’ve set down? Do they consistently meet your non-negotiables? If not, it’s time to take action to rectify the situation. One area where I see a lot of business owners run into trouble is when they have a high performer on their team who refuses to play by the rulebook. The temptation is to ignore the bad behaviour and accept it as part of the
deal. However, one of the worst things you can do is let high performers run rings around you just because they get results. It goes back to the first point – attitude. A high performer with a bad attitude will poison the culture around them. The second you start thinking you should probably sack someone is the moment you probably should.
Conclusion Whatever line of business you’re in, adopting the principles outlined will lead to huge opportunities for growth. It’s all about establishing a set of rules to operate by and ensuring that you stick to them. Time and time again, I have found that consistency is the key to unlocking long-term success. Adam Flynn is the CEO and Director of Biggin & Scott Knox, an award winning Sales Agent, Auctioneer and Property Investor. Adam is recognised as one of Melbourne’s most successful Agents, having grown his franchise from one office to five in just five years after developing the $1M Agent System, an innovative methodology designed to take an Agent with limited experience to writing approximately $1M within 12 months by providing a system which helps them achieve a 90 per cent listing conversion rate. www.linkedin.com/in/adam-flynn www.knox.bigginscott.com.au www.1millionagentsystem.com.au
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getting into franchising?
things to watch out for “A crucial step before committing to a franchise is that you seek independent legal, accounting and business advice from professionals with expertise in franchising.” Dr Michael Schaper | Deputy Chair Australian Competition and Consumer Commission (ACCC)
Franchising can provide you with the opportunity to operate your own business, while enjoying the benefits of an already established product or service with brand-name recognition. But success is never guaranteed. It is important to understand the potential risks of franchising and work out if a particular opportunity is the right one for you. So, before you decide to pursue a franchise opportunity, it’s important to: • be aware that the financial rewards may not be as high as you would like, particularly in the first few years of the franchise. • make sure the franchisor can provide the level and support that you need. • be aware that circumstances can change – the franchisor may change ownership, strategic direction, or even become insolvent. • know the factors relevant to the franchisor extending your franchise agreement at the end of the fixed period, and • make sure you research the market to understand the level of consumer demand for your product or service and the degree of competition you will face from competitors.
“If the franchisor makes claims about projected earnings, ask for the basis of these and get them to confirm it in writing.”
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“Before committing to a franchise, you should familiarise yourself with the Franchising Code of Conduct. The Franchising Code is mandatory across Australia and regulates the conduct of franchising participants towards one another.” Before committing to a franchise, you should familiarise yourself with the Franchising Code of Conduct. The Franchising Code is mandatory across Australia and regulates the conduct of franchising participants towards one another. The Franchising Code requires the franchisor to provide you with certain information about the franchise. This information will help you make a more informed decision about the franchise opportunity. The ACCC regulates the Franchising Code and investigates alleged breaches in accordance with the ACCC’s Compliance and Enforcement Policy (available at: www. accc.gov.au/publications/compliance-andenforcement-policy). Franchising Code issues involving large or national franchisors are a current priority of the ACCC.
Disclosure document Under the Franchising Code, franchisors are required to provide prospective franchisees with a disclosure document, a copy of the franchise agreement in its final form, and a copy of the Franchising Code at least 14 days before entering into the agreement or making any non-refundable payments. The disclosure document contains valuable information about the franchisor, and the
franchise system. When reviewing the disclosure document you should: • check the franchisor’s financial details and confirm that it is solvent. The franchisor must provide a signed statement confirming that the franchisor will be able to pay its debts, and provide either financial reports for the last two years or an independent auditors report. • consider the relevant business experience of the people running the franchise system. • check whether the franchisor, any of its associates (or a director of the franchisor or associate of the franchisor) has been bankrupt or insolvent in the last 10 years. • consider the range of costs associated with establishing the franchisee (such as legal fees, and any initial franchise fees). • consider any ongoing and foreseeable payments that you will need to make to the franchisor during the franchise term such as royalties, marketing or advertising fees. • check the number of past franchisees. A high turnover rate could indicate problems with the business or other issues. • check if the franchise is for an exclusive territory. If your territory is not exclusive, your franchisor or another franchisee could set up shop in the same territory.
• review the franchisor’s supply arrangements, bearing in mind that restrictions on who you can source goods or services from may affect your bottom line. If you become a franchisee, you can request a copy of the franchisor’s latest disclosure document once every 12 months.
Significant capital expenditure As a franchisee, sometimes you might be asked to spend money on things that you didn’t expect such as new equipment or stock, or refurbishing your store. Under the Franchising Code, the franchisor can’t require you to undertake significant capital expenditure during the term of your franchise agreement. However, a franchisor can require you to incur expenditure if one of following happens: • you agree to it. • it was disclosed in your disclosure document (prior to you entering into, renewing or extending the franchise agreement). • the expenditure will apply to all or a majority of the franchisees in the system, and was agreed to by a majority of those franchisees. • the expenditure is required to comply with a legal obligation.
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“Some of the most valuable advice you can receive about the franchise will be from the people who have already been in the franchise.”
Earnings information Franchisors are not required to provide you with earnings information but some choose to do so. Earnings information could take the form of historical data from other franchisees or projections from the franchisor about how much you could expect to earn. If the franchisor makes claims about projected earnings, ask for the basis of these and get them to confirm it in writing.
Seek professional independent advice A crucial step before committing to a franchise is that you seek independent legal, accounting and business advice from professionals with expertise in franchising. This will allow you to get an understanding of your legal obligations and any risks affecting the franchise relationship. Check with your lawyer if any clauses of the franchise agreement raise concerns. Also talk to an accountant about the business opportunity and whether any earnings figures the franchisor has provided are realistic, whether you are likely to recoup your investment (with a reasonable return) within the life of the franchise agreement, and if you can afford the risk of the franchise failing.
Cooling-off rights If you have entered into a new franchise agreement, you have ‘cooling-off rights’. Under the Franchising Code, a new franchise agreement can be terminated within seven days of:
• the franchisor considers the expenditure is necessary as a capital investment, and justifies its decision in writing to you including certain matters such as the rationale and amount required. Always check your franchise agreement and disclosure document carefully before entering a franchise to identify any potential costs you might face. Also, ask your franchisor if there are likely to be any future initiatives (such as rebranding or upgrades) that could lead to additional costs for you as these may affect your decision to proceed with the franchise.
Speak to other franchisees Some of the most valuable advice you can receive about the franchise will be from the people who have already been in the franchise. The disclosure document should contain the contact details of current and former franchisees. You should speak to as many of
these franchisees as you can to understand their relationship and experience with the franchisor. Questions you could ask include: • Did they make the amount of money they expected? • Whether there were any hidden or unexpected costs? • Have they recovered their investment? • What level of training and marketing support does the franchisor provide? • If they knew then what they know now, would they have still purchased the franchise? • If they exited the franchise system, why did they leave? Asking these questions of the existing and any former franchisees will provide you with information that you may not get from the franchisor.
82 Business Franchise Australia and New Zealand
• entering into the agreement (or an agreement to enter into the agreement), or • making any payment under the agreement. If you terminate during the cooling-off period, you’re entitled to a refund of all your payments within 14 days, less any reasonable expenses incurred by the franchisor (these must be set out in the franchise agreement). The ACCC has a range of educational resources dedicated to educating small business about their rights and responsibilities under the Competition and Consumer Act. These are available at: www.accc.gov.au/smallbusiness, along with specialist franchise training at: www.accc.gov.au/ccaeducation. To keep up to date with the latest Franchising Code developments, subscribe to the ACCC’s Franchising Information Network at: www.accc.gov.au/media/subscriptions/ franchising-information-network
Office Expense.
2IÀFH H[SHQVH Advertising to Purchase. $GYHUWLVLQJ WR 3XUFKDVH Employees. (PSOR\HHV Stock to Purchase & Warehouse 2IÀFH H[SHQVH 6WRFN WR 3XUFKDVH :DUHKRXVH 60+ Hour Weeks. $GYHUWLVLQJ WR 3XUFKDVH +RXU :HHNV (PSOR\HHV 6WRFN WR 3XUFKDVH :DUHKRXVH +RXU :HHNV
PR OFI L E : FR A N C H I S I N G E X P O
Franchising Expo showcases new ideas
Franchising Expo is the free seminar series at the centre of the show. In Sydney, the seminars featured keynote speakers Jim Penman from Jim’s Group and John O’Brien from Poolwerx, MC Jason Gehrke from The Franchise Advisory Centre, and business coach Jane Challinor from Real Business. “I came with my family and we have had a great time,” says visitor Atin Jain at the Sydney Franchising Expo. “I have been looking for my own business for a while, and you can get a lot more information in a short time here than on the internet. I think it makes a difference meeting franchisors in person, you can get all the answers you need.” Pre-register online to visit any show for FREE with code BFM at: www.franchisingexpo.com.au
Healthy fast casual dining franchise Soul Origin made its Franchising Expo debut in Sydney, and can also be seen at the Perth, Brisbane and Melbourne shows.
Visitors to the Franchising & Business Opportunities Expo this year will see a host of new ideas, with plenty of first-time exhibitors and fresh business concepts.
Soul Origin and Jon Smith Subs will also be exhibiting at the next show in Perth on 6 May, along with debut exhibitors Oxworks, Wheel Change U, Jester’s Pies, Krazy Keys and In the Booth.
“I think it goes to show how vibrant and successful this industry really is,” says Exhibition Manager Fiona Stacey. “Despite the negative press lately there are many franchise companies that are solid business propositions, and plenty of people who are keen to find out more about being their own boss.”
“We are thrilled to bring the Franchising Expo to Perth for the third time,” says Fiona. “It’s a boutique event at Crown Perth for one day only, and now has a great following.”
The Sydney Franchising Expo in March offered new local concepts like Soul Origin, Lock & Roll, Stepz Fitness, D-Sign Interiors, Stretch Studio and My Ride cycling stores. International brands making their Australian debut at the show included Bodystreet, Nathan’s Famous, Jon Smith Subs, Dippin’ Dots Ice Cream, Rodan & Fields, Miniso and a contingent of companies from Taiwan.
For information about exhibiting in the 2018 Franchising & Business Opportunities Expo contact Fiona Stacey by email fiona@specialisedevents.com.au or by phone 03 9999 5464.
Big name brands exhibiting include Poolwerx, Aussie, Bakers Delight, Mailboxes Etc., Fully Promoted, Minuteman Press International, Signarama and Jim’s Group.
Like its sister Expos in Sydney, Brisbane and Melbourne, the Perth event will offer visitors a forum to compare and research a diverse range of franchise opportunities, with investment levels from under $10,000 to more than $500,000. There will also be legal and financial advice to buy and set up your new business or franchise and the Franchise Council of Australia (FCA) will be on hand to provide information and answer any franchising queries. One of the most popular features of the
84 Business Franchise Australia and New Zealand
“It makes a difference meeting franchisors in person, you can get all the answers you need.”
Franchising & Business Opportunities Expo 2018: Perth: 6 May at Crown Perth Brisbane: 21-22 July at Brisbane Convention & Exhibition Centre, South Bank Melbourne: 25-26 August at Melbourne Exhibition Centre, South Wharf
Want to be your own boss? Learn how to get into your own business
franchising & business expo opportunities FREE sem inars
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Sydney 17-18 March Perth 6 May Brisbane 21-22 July Melbourne 25-26 August Get your free ticket online using code BFM franchisingexpo.com.au
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Business Franchise Australia and New Zealand 85
e x pert a dv i c e
IMPROVE YOUR FINANCIAL POSITION Know how your bank works out how ‘risky’ you are and what to do when things get tough, financially. FINANCE IS KEY TO BUSINESS SURVIVAL. BUT HOW MUCH DO YOU KNOW ABOUT HOW BANKS VIEW YOUR BUSINESS? Knowing what underpins your financial position requires you to understand how banks operate and what bankers think. In other words, you need to know how banks view your risk and how you should behave if things get a little tough financially. Your risk rating (also known as risk grade) is absolutely vital with everything you do with
your bank or financial institution. Once a risk grade is calculated, it determines whether the bank will lend you money in the first place and it will also determine the interest rate, fees charged and the length of time that the bank will lend you the money. It will also determine how the bank deals with you should things take a turn for the worse. In this article we’ll talk about risk ratings and what you can do to improve your position with your bank by understanding how they view you – if you’re trying to grow your business - and we’ll also discuss some tactics you could undertake with your bank when things get a bit tough – financially. If you’ve ever found it difficult to get a loan or negotiate more favourable terms with your bank, including a lower interest rate or fees,
86 Business Franchise Australia and New Zealand
your risk grade might be behind it. A risk rating is what banks use to assess your ability to meet your financial commitments. All banks have a specific set of metrics (also known as risk grade models) they use to rate their customers. In Australia, franchisors borrowing $1 million or more are risk rated, by their financial institution, annually on receipt of the financial statements. It is useful to know that banks also use risk grades for businesses with borrowing under $1 million as the starting point for negotiations, however, it’s not a mandatory annual process. In all cases, regardless of the size of business or level of debt, banks don’t usually communicate the results of a risk assessment.
Because it can be difficult to get visibility on your risk rating, successful franchisors make a point of understanding how banks view their risk and use this knowledge to help improve the quality of existing banking relationships. It can also help identify and leverage untapped growth opportunities.
How do banks use risk rating? Banks use your risk rating to inform the outcome of all their interactions with you. Your risk rating will determine: • if banks will lend for new purchases or business acquisitions; • the maximum amount of borrowing; • your interest rates and fees; • the terms of your facility, including security and loan repayments; • your reporting requirements; • the outcome of any restructures of current arrangements; and • the outcome of disputes or settlement negotiations.
What do banks measure? All banks have a specific set of metrics they use to rate their customers based on financial results, debt levels and business behaviours. Typically, banks will consider a combination of: • Your past track record of financial performance; • Quality of management information including budgets and forecasts; • Current level of equity; • Current industry dynamics and future trends; • Debtor and creditor management; • Management experience; • Bank history and behaviours; and • Your current ATO position and previous compliance history. Ultimately the two major factors are how well you can service your debt and the amount of equity available in your franchise business. This is all great when things are going well but what happens when things get tough, financially? How do you manage your relationship with your bank to achieve the most positive outcome? Banks in general these days have quite a different approach when it comes to dealing with business customers experiencing financial challenges. In the ‘old days’ it was not uncommon for a bank’s relationship manager
“It takes courage to be transparent with your bank but the benefits of being open and honest about your situation will position you well with the bank’s decision makers.” Peter Winterflood | Debt Advisory Partner | BDO
to have an account decline over time and eventually see the client end up in the bank’s asset management area where receivers were quite often appointed. Things have changed.
Working with your bank These days, the banks are reticent to appoint receivers unless there is a compelling reason to do so. All banks are keen to work with a client to assist in addressing the reasons for the financial hardship. Also, the bank’s relationship managers are taking more responsibility in identifying risks and the deterioration in client’s accounts much earlier. It is more than likely that if a small business is experiencing difficulties, and is up-front about it, the bank will be supportive and will work with you to turn things around and repatriate the businesses. Now it is hand-on-heart time. If you think your business might be approaching tough times, there are some important things you can do right now to steer your business onto a positive path with your bank. • Put your hand up early. Don’t be fearful of what your bank might do. It takes courage to be transparent with your bank but the benefits of being open and honest about your situation will position you well with the bank’s decision makers. You might be relieved to hear that generally there is an onus on the bank to provide assistance if it’s notified of financial distress. • Make full disclosure to your bank – don’t hold anything back. This means telling them about anything that might affect your financial situation, including outstanding issues with the ATO or other creditors. • Be accessible and responsive to your bank. Many people start avoiding calls from the bank when things get tough; this is a bad strategy. Take the call - you might be surprised how helpful the bank can be. Remember ‘a stitch in time saves nine’, sort out problems immediately - it may save extra work later. To give you and your business the best chance it is imperative you have: • Accurate and timely management information;
• Historical financial data that goes back at least two years; • Three-way (balance sheet, cash flow and profit and loss) forecasts for the next one two years; • Systems that help you identify problems early; • Advice from an external source, like an accountant or business restructuring professional; and • A good plan as to how you are going to resolve the current issues for you and the bank.
In summary Your behaviour, not just the financials, can affect your risk rating and how the bank manages your account. By having insight into how banks assess you and your business, you can modify your behaviours and you can ensure that you do things in a timely manner to improve how your bank views your ‘riskiness’. Keeping these points in mind will put you in good stead with your bank if and when your franchise business is looking to grow - or if it is facing tough times. Peter Winterflood is a debt advisory partner in BDO Australia’s business restructuring division. Joining as Partner in 2016, Peter’s extensive banking experience uniquely positions him to deliver a full range of financial solutions and he has a proven ability to bridge the communication gap that often emerges between clients and their bankers. As part of the global accounting and professional services firm, BDO’s debt advisory team in Australia joins the hands of businesses and their bankers, translating the messages businesses receive from their bankers and working with them to improve their risk scores with their bank. 07 3237 5999 peter.winterflood@bdo.com.au www.bdo.com.au
Business Franchise Australia and New Zealand 87
h ot topi c s
Behind the
headlines New inquiry to review Australian franchise sector The Australian franchise sector will be subjected to its fourth national franchise inquiry in 12 years with the Senate recently passing a recommendation for a joint Parliamentary inquiry to report back to government by September 30 this year. The new inquiry was moved by Nationals Senator John Williams, who indicated in the media as early as December 2017 that he would seek an inquiry to explore any regulatory deficiency in the franchise sector following widespread media reports in the Fairfax press about franchisees of Retail Food
Group and other brands. The new inquiry will be conducted by the Parliamentary Joint Committee on Corporations and Financial Services, and will consider for both the Franchising Code of Conduct and the Oil Code: • The operation and effectiveness of the Code with a focus on disclosure on likely financial performance, contractual rights, termination rights and geographic exclusivity, leasing arrangements and tenants’ rights, and running costs and costs of goods to be acquired through prescribed suppliers; • The effectiveness of dispute resolution
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procedures under the Code; • The impact of unfair contract laws on franchise agreements; • Whether the Oil Code (and other industry codes) contain advantages or disadvantages for franchises in comparison to the Franchising Code; • Termination and restraint of trade provisions; • The enforcement of both Codes, and any other related matter. Additional details regarding the inquiry are yet to be released, but with a report due by September 30, further information is expected to be released soon.
Franchise sector to face sixth inquiry in 12 years
Caltex to end franchising, business model questioned
The new franchise inquiry will be the fourth national inquiry, and sixth overall inquiry in 12 years - for an average of one inquiry every two years – making the Australian franchise sector perhaps the most probed business sector in Australian history.
Fuel retailer Caltex has announced it will cease all franchising operations by 2020 and take over operation of its 433 franchised sites but denies its decision is linked to wage fraud, which a Fair Work Ombudsman investigation has claimed occurs in much of its network.
The three previous national inquiries are:
Caltex is preparing to spend up to $120 million to take control of its franchise network, with the 433 stores owned by 237 franchisees, for an average cost of around $277,000 per outlet.
• The Wein Inquiry of 2013 which led to changes to the Franchising Code of Conduct that came into effect on 1 January 2015; • The Ripoll Inquiry “Opportunity not Opportunism” conducted in 2008, which led to Code changes in 2010; and • The Matthews Inquiry in 2006, which led to Code changes in 2008. In addition to the three national inquiries since 2006, two additional state inquiries into the franchise sector were held in Western Australia and South Australia in 2009. With the newly-announced federal inquiry, this makes six inquiries in 12 years for an average of one enquiry every two years.
Aussie Farmers Direct closes; 100 franchisees out of business Home delivery franchise Aussie Farmers Direct has been placed into administration and ceased operations, with nearly 100 franchisees left without a business and in many cases owed thousands for completed deliveries, according to media reports. The company, which was founded in 2005, was losing more than $1 million a month in 2014 and 2015 according to one report, and was being propped-up by its investors who are owed most of the company’s debt. Attempts by the owners to sell the business or raise additional capital were unsuccessful, resulting in no option but to close according to administrators KordaMentha. The collapse is being blamed on competition from grocery giants Coles and Woolworths, however franchisees claim that the company strayed from its original premise of supplying quality produce direct from Australian farmers into becoming a general grocery provider. Franchisees are also critical of the decision to fold the company on the same day payments were due to them for completed deliveries. Several companies have reached out to Aussie Farmers Direct franchisees via the administrators to offer delivery contracts or employment, with one franchisee turning to crowdfunding to offset their losses.
Franchisees may be offered a financial incentive to exit their franchise agreements early, or face the prospect of receiving nothing except the value of their stock at the end of their agreements. Franchisees who have agreements which extend beyond 2020 may receive greater incentives to exit. The company says its move to a wholly company-owned model is to accelerate the pace of change in its network as it rolls out new retail models, however franchisees are concerned that they may not receive enough compensation to cover their debts. The company has also come under fire from a Fair Work Ombudsman (FWO) investigation, which revealed that 75 per cent of Caltex stores it had audited were underpaying staff, leading to FWO chief Natalie James claiming that Caltex presided over “a non-compliant and unsustainable operating model”.
RFG store closures could reach 460 Embattled multi-brand listed franchisor Retail Food Group has announced that it expects to close between 160-200 stores by mid 2019 following an external review of its business, however one financial analyst has estimated this figure might need to be closer to 460 stores, according to a media report. An analyst at financial services firm UBS has said that new conditions imposed by the company’s banks will be difficult to sustain and could mean that it will need to shed more than double the anticipated number of stores in order to stay within its lenders’ new debt to earnings ratio requirements. The analyst estimates that RFG will need to close 36 per cent of its 1,545 stores in its Australian network over two and half years, while gaining potentially 100 new stores in its international network. RFG’s shares were suspended recently ahead of its announcement of an $87.8 million half-year loss, compared to a profit of $32.7 million for the corresponding period in the
Jason Gehrke | Director Franchise Advisory Centre
previous year. The company also announced it would write down $138 million off its balance sheet through provisioning $35.7 million for store closures, and booking impairment charges of $45 million against its Michel’s Patisserie brand, $34.5 million against its coffee division, and $4.5 million against its Pizza Capers brand.
Nuts franchise goes bust Victorian based kiosk-style snack food franchise John’s Nuts has entered voluntary administration, according to a media report. Franchisees of the seven-store chain have allegedly been left in “a terrible condition”, with the administrator disclaiming all leases. However, franchisees have been given access to John’s Nuts recipes so they can continue to operate their business independently. High rents demanded by large shopping centres are considered a contributing factor to the company’s voluntary administration.
700 KFC outlets closed in UK due to delivery bungle Around 700 of fast food chain KFC’s 800 outlets in the United Kingdom were forced to close due to a shortage of chickens following a change to the company’s delivery contractor, according to a media report. The delivery meltdown occurred on the first day that new delivery contractor DHL took over from former provider Bidvest, with DHL stating that it was working through “operational issues” involving a logistics software partner. The supply chain disruption is expected to take up to a month to fully resolve, with stores progressively reopening, or operating with limited menus. Around 80 per cent of the KFC stores in the UK are operated by franchisees whose businesses will be seriously damaged as a result of the supply chain disruption. www.franchiseadvice.com.au
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pr o f ess i o na l s er v i c es l i st i n gs
fr an chise specialists
Level 6, 64 Marine Parade (Po Box 10857) Southport Qld 4215 P 07 5591 2522 F 07 5591 2511 Contact Peter Thelwell E pt@ippartnership.com.au www.ippartnership.com.au A specialist Franchising and Intellectual Property legal and consulting firm, providing comprehensive advice for Franchisors from conception through to recruitment of Franchisees and ongoing management of the franchise. Clients receive expert, cost-effective advice on a collaborative basis with the firm taking great pride in its long term relationships with Franchisors. Expert advice and assistance is also provided to Franchisees buying & selling businesses as well as in relation to disputes.
Lvl 2 100 Wellington Parade, East Melbourne VIC 3002 P 03 9604 9400 F 03 9419 7735 Contact Robert Toth E robert@mmrb.com.au www.marshmaher.com.au robert toth - 30 YEARS OF FRANCHISE INDUSTRY KNOWLEDGE AND EXPERIENCE. ACTING FOR LOCAL AND INTERNATIONAL FRANCHISES. Members of: Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Marsh & Maher Richmond Bennison Franchising, Licensing and Distribution Group act for local and overseas companies entering the Australian market and have a network of experienced consultants to assist clients with demographic, feasibility, market research and preparation of business entry plans to ensure the best success for our clients.
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the magazine for fr anchisees Level 2, 129 Melville Parade, Como WA 6152 P 08 9364 9988 Contact John Dorazio E johnd@ww-wa.com.au Wayland WA is an independent firm of www.ww-wa.com.au
Walker Perth based Chartered Accountants and Business Advisors who provides a friendly, efficient and professional service for both developing and established franchises. We can assist you with: • Fixed priced service packages - including all bookkeeping, tax and accounting needs • Due diligence services when you are thinking about buying - or selling • Growth strategies • Marketing fund audits • Business planning and structuring Walker Wayland has offices based in every Australian mainland State and in New Zealand.
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Professional services listings are a great way to promote your business (+61 3 9787 8077 from outside Australia) and speak to one of our sales executives. www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz
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l i st i n gs
FRANCHISE 7-ELEVEN STORES PTY LTD 357 Ferntree Gully Rd, Mt Waverley VIC 3149 Ph: 03 9541 0711 Website: www.franchise.7eleven.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
CONVENIENCE RETAIL & FUEL
640+
FCA, AACS
(site specific– part of Min. Investment)
Average of $775,000
BANKING & FINANCE
200+
FCA
POA
POA
ELECTRICAL TEST AND TAG
55
FCA
$35,000
$52,000 + GST + Vehicle
AUTOMOTIVE SERVICE & REPAIR CENTRES
64
FCA, MTA, RAA
$50,000
$325,000 (SA), $400,000 (WA)
SCHOOL READINESS & PRIMARY TUTORING
30+
Franchise Council of Australia
$48,000
$70,000 (includes Franchise Fee)
FURNITURE & INTERIOR DESIGN RETAIL STORES
265 brand stores in 65 countries
BFA, IFA, DFV
$40,000 per store opening
$600,000
DIRECT SELLER OF BOOKS AND GIFTS
100+
-
New: $1-$10,000 / Existing: Dependent on size
Up to $20,000 dependent on requirements
MARKETING OF REAL ESTATE SERVICES
Just launched
-
Start from $50,000
Initial Franchise Fee only
MOBILE CAR DETAILING
-
FCA
$34,950
$47,950
RETAIL, POOL & SPA SERVICE
60
FCA, SPASA
$60,000
$460,000 + GST
PREMIUM CAFÉ FRANCHISE
20
Franchise Council of Australia
INNOVATIVE RETAIL OUTLETS
5
-
$75,000
$195,000
HYGIENE PRODUCTS & SERVICES
33 in AUS, 18 in NZ
Franchise Council of Australia
None
$10,000 - $300,000
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
21
Franchise Council of Australia
$50,000 + GST
$500,000 $700,000
COURIER SERVICE
800+
FCA & FANZ
From $25,000 + GST
$25,000 + GST
COURIER SERVICE
250+
FCA & FANZ
$10,000
$10,000
BUSINESS COACHING & PROFESSIONAL DEVELOPMENT TRAINING
200 Worldwide
-
-
$89,950
TILE & GROUT RESTORATION
57
FCA
-
$49,950 + GST with VAN SUPPLY OPTION
HAIR & BEAUTY – RETAIL & SERVICE
140
FCA
$66,000 + GST
$390,000 incl. stock, for Greenfield sites
CAR DETAILING SERVICES
80
FCA
$29,700
$29,700
MOBILE POOL SHOP & POOL SERVICE
85
FCA
$69,000
$69,000 + Vehicle
ANZ MOBILE LENDING Level 7/833 Collins Street, Docklands VIC 3008 Phone: 1800 805 805 Email: ANZMobileLending@anz.com Website: www.mobilelending.anz.com
APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
AUTO MASTERS Level1/19 Riseley Street Ardross WA 6153 Ph: 08 9316 1117 Email: admin@automasters.com.au Website: www.automasters.com.au
BEGIN BRIGHT Support Office, 20 / 8 Corporation Circuit, Tweed Heads South NSW 2486 Ph: 1300 234 462 Email: franchise@beginbright.com.au Website: www.beginbright.com.au/franchise
BOCONCEPT HQ | Herning, Denmark Phone: Business Dev. Manager 0474 278 485 Email: franchise@boconcept.com Website: www.boconcept.com/franchise
BOOKS AND GIFTS DIRECT Level 10, 8 West Street, North Sydney NSW 2060 Ph: 02 9899 9655 Email: enquiries@booksgiftsdirect.com Website: www.booksgiftsdirect.com
BUY SELL LEASE Suite 1/25-31 Perouse Road. Randwick NSW 2031 Ph: 02 8960-7277 Email: admin@buyselllease.com.au Website: www.BuySellLease.com.au
CAR CARE AUSTRALIA 11/14 Phillipmore Street Fremantle WA 6160 Ph: 1300 227 227 Email: franchising@carecare.net.au Website: www.carcare.net.au
CLARK RUBBER FRANCHISING PTY LTD Administration Building, 254 Canterbury Road, Bayswater VIC 3153 Ph: 03 8727 9999 or 138090 Fax: 03 9729 3266 Email: dirk.heinert@clarkrubber.com.au Website: www.clarkrubber.com.au/franchise
CREMA ESPRESSO 16 Ashmore Road, Bundall QLD 4217 Ph: 07 5532 7727 Mob: 0417 637 626 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au
DR BOOM COMMUNICATIONS 2/56-58 Buffalo Road, Gladesville NSW 2111 Ph: 1800 DR BOOM (1800 37 2666) Email: franchising@drboom.com.au Website: www.drboom.com.au
ECOMIST Unit 4/28 Barcoo Street, Chatswood NSW 2067 Ph: 02 9417 2211 Email: info@ecomist.com.au Website: www.ecomist.com.au
FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: franchise@fastapasta.com.au Website: www.fastapasta.com.au
FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au
Dependent on Site $50,000 + GST conditions $300K Incl. Training $500K
FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz
FOCALPOINT COACHING 30 Walter Street, North Adelaide SA 5006 Ph: 08 8267 2144 Email: info@focalpointintl.com Website: www.focalpointcoaching.com
GROUTPRO AUSTRALIA Ph: 07 5515 0118 Email: franchise@groutpro.com.au Website: www.groutpro.com.au
HAIRHOUSE WAREHOUSE Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 0451 370 060 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hhwhfranchising.com.au
JIM’S CAR DETAILING D5, 1-13 The Gateway, Broadmeadows VIC 3047 Ph: 131-546 Email: admin@jimscleaning.net.au Website: www.cardetailing.com.au
JIM’S POOL CARE 48 Edinburgh Road, Mooroolbark VIC 3138 Ph: 131 546 Email: info@jimspoolcare.com.au Website: www.jimspoolcare.com.au
92 Business Franchise Australia and New Zealand
FRANCHISE
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
HAIRDRESSING
206 across Australia, NZ & UK
FCA
$18,000 $35,000
$80,000 - $240,000
GROUP PERSONAL TRAINING
11
Franchise Council of Australia
$30,000
$100,000
CHILDREN’S SPORT & DEVELOPMENT
250 +
FCA
From $15,000
$30,000
MAD MEX FRESH MEXICAN GRILL
59 – Australia, 9 – New Zealand
FCA
$50,000 + GST
$375,000 $550,000 + GST
$20,000 $50,000
$20,000
JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: (AUS) 02 9527 5444 (NZ) 0800 100 114 (toll free) Email: bdm@justcuts.com Website: www.justcuts.com
LISTEN TO YOUR BODY First Floor 19/21 Centreway, East Keilor VIC Ph: 03 9331 5673 Email: franchise@listentoyourbody.com.au Website: www.listentoyourbody.com.au
LITTLE KICKERS & LITTLE RUGBY AUSTRALIA 120 Erina St, Gosford, NSW 2250 Ph: 0423 312 550 Email: dkelland@littlekickers.com.au Website: www.littlekickers.com.au, www.littlerugby.com.au
MAD MEX FRESH MEXICAN GRILL Level 1/117 Clarence Street, Sydney NSW 2000 Ph: 02 8115 9550 Email: franchising@madmex.com.au Website: www.madmex.com.au/franchise
MAGNETITE 36 Garema Circuit, Kingsgrove NSW 2208 Ph: 02 9565 4070 Fax: 02 9565 4080 Email: info@magnetite.com.au Website: www.magnetite.com.au
MAIL BOXES ETC (MBE) Suite 202, 54 Alexander Street, Crows Nest NSW 2065 Ph: 1800 556 245 Email: franchising@mbe.com.au Website: www.mbe.com.au
MF GROUP 12 Boronia Crescent Marcoola QLD 4564 Ph: 1800 840 403 Email: info@mattfiddes.com.au Website: www.mattfiddes.com.au www.mfstreetdance.com.au
MIDAS 76-92 Station Street, Nunawading VIC 3131 Ph: 03 8878 1122 Email: franchiseenquiries@midas.com.au Website: www.midas.com.au
NANOSHIELD 2/5 Michellan Court, Bayswater VIC 3155 Ph: 03 9738 0070 Email: ray@nanoshield.com.au Website: www.nanoshield.com.au
NENE CHICKEN AUSTRALIA 120 Turner Street, Port Melbourne VIC 3207 Ph: 03 8526 4488 Email: franchise@nenechicken.com.au Website: www.nenechickenaus.com.au
POOLWERX 10 Camford Street, Milton QLD 4064 07) 3173 7355 / 1800 245 447 / NZ: 0800 888 031 Email: joinourteam@poolwerx.com.au Website: www.poolwerx.com.au
PROTEINXPRESS Level 5, 4 Columbia Court, Baulkham Hills NSW 2153 Ph: 0498 980 071 Email: info@proteinxpress.com.au Website: www.proteinxpress.com.au
SANDWICH CHEFS Suite 1, Level 11, 636 St Kilda Rd, Melbourne VIC 3004 Ph: 03 9856 4400 Fax: 03 9856 4401 Email: chrisf@pnfm.com.au Website: www.sandwichchefs.com.au
SENIOR HELPERS 1/67-69 Brisbane Street, Launceston TAS 7250 Ph: 03 6333 4575 Email: shadmin@seniorhelpers.com.au Website: www.seniorhelpersausfranchise.com.au
SMALLPRINT AUST & NZ 4/2-4 Williams Grove, Bonbeach VIC 3196 Ph: 1800 762 557 Email: ian@smallp.com.au Website: www.smallprint.com
SNAP-ON TOOLS PO Box 6077, Seven Hills NSW 2148 Phone: Aus: 1800 762 766 NZ: 0800 762 766 Email: Sota.franchise@snapon.com Website: www.snapontools.com.au
SOCCAJOEYS PO BOX 4119, Kogarah Bay NSW 2217 Ph: 1300 781 735 Fax: 02 9150 0837 Email: info@soccajoeys.com Website: www.soccajoeys.com.au
SPUDBAR 294 Waverley Road, Malvern East VIC 3145 Email: franchising@spudbar.com.au Website: www.spudbar.com.au
THE INTERFACE FINANCIAL GROUP IFG 50/50 Level 32, 8 Exhibition Street, Melbourne VIC 3000 Ph: 1300 957 900 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au/franchise
THEOBROMA, CHOCOLATE LOUNGES, PAVILIONS, BARS 3A Kia Crt, Preston VIC 3072 Ph: 03 9480 1030 or +61 431 727 004 Email: franchising@theobroma.com.au Website: www.Theobroma.com.au
THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com.au Website: www.thermawood.com.au
WINDOW INSULATION
6 franchises AWA, HIA, WFAANZ & 12 dealers
SERVICE PROVIDER, FREIGHT, PRINTING MAIL
1700+ (36 AUS)
-
$60,000
$150,000 - $200,000
MARTIAL ART & DANCE SCHOOLS
31 Martial Art 11 Dance School
-
$12,500 $32.500
$12,500 - $32,500 Single or multi site
AUTOMOTIVE MECHANICAL SERVICE & REPAIR WORKSHOP
80+
FCA, AAAA, ACRA
$50,000 Franchise Fee + Set-Up Costs
$250,000+, plus GST
ENERGY SAVING WINDOW COATINGS
-
-
POA
POA
KOREAN STYLE FRIED CHICKEN
12 in AUS, 1000+ Korea
-
-
$500,000 $700,000
(SWIMMING) POOL & SPA RETAIL AND SERVICING
110
SPASA, FCA, FANZ, SPRAA
$97,000 + GST + Van
$150,000
NUTRIENT RICH BEVERAGES & SNACKS
4
-
$25,000
AU$183,500 + GST
GOURMET SANDWICHES, DELI CARVERY, JUICE BAR, BARISTA
50+
-
$180,000 $390,000
-
HOME CARE AND SUPPORT SERVICES
6
-
$75,000
$100,000
SILVER FINGERPRINT KEEPSAKE JEWELLERY
35
-
$36,500 ex GST
$45,000
MOBILE TOOLS AND EQUIPMENT FRANCHISE
175+
FCA / FANZ
Start-up cost from $50,000
-
CHILDREN’S DEVELOPMENT PROGRAM
24
-
From $20,000
$25,000 - $35,000
HEALTHY FOOD RETAIL/TAKEAWAY
21
-
$40,000
$230,000
PROVIDES UNIQUE SPOT FACTORING PROGRAMME
60 worldwide
FCA, IFA, CFA, Irish FA
$34,500
$50,000+
FCA, BFA
$40,000
$150K - $400K depending on size & concept
AWA
$40,000
Varies depending if vehicle needed
CHOCOLATE LOUNGES, 11 worldwide PAVILIONS, BARS
RETRO-FIT DOUBLE GLAZING
3 AUS, 40 NZ
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7-ELEVEN At 7-Eleven, we take a different approach to franchising. We take care of the things that are a hassle about being a small business owner, and provide you with support every step of the way. We’re looking for people with bundles of
So if you think you’ve got what it takes, we’d love to hear from you. For more information: 03 9541 0711 www.franchise.7eleven.com.au
ANZ Mobile Lending
boss means having greater control over your working schedule to suit your lifestyle.
Looking for that exciting franchise opportunity? One where you can call the shots and provide the future you want for you and your family? Open the door to a world of opportunity with ANZ Mobile Lending.
The most rewarding part of the business is being able to help customers achieve their goals whether they want to buy their own home or build wealth with their investment property. As your customers continue their journey in life, your business grows alongside them continuing to offer ANZ’s banking and lending services as and when they need it.
Being a franchised representative of the ANZ brand means you can run your own business and with the security of a big brand behind you. ANZ Mobile Lending’s customer service proposition offers customers the ease and convenience of having a lender visit them “Anytime, Anywhere”. While you may be working varied hours at times, being your own
APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.
AUTO MASTERS Do it for yourself, not by yourself. A large percentage of Auto Masters top franchisees aren’t mechanics, you employ mechanics to carry out the work whilst you operate the business. The system is proven over 30 years with a number of multi site owners.
For more information please contact us at: 1800 805 805 ANZMobileLending@anz.com www.mobilelending.anz.com
No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au
An organisation with relief staff, a head office support team in each state, regular training for you & your staff, are some of the key points to making money. Auto Masters now have 64 franchises across SA & WA & you can join the group from $320k in SA & $420k for a New or established branch.
With just 2 to 4 staff required, minimal stock & only 5 and 1/2 trading days, an Auto Masters franchise gives you the time to enjoy the rewards.
For more information on owning an Auto Masters franchise contact visit:
BEGIN BRIGHT
owners! Becoming a Begin Bright franchisee means you’re equipped with operation and management support, a state of the art online booking system and strategic guidance – enabling you to run your best business!
Begin Bright has been leading Australia’s School Readiness and Primary Tutoring market over the last 10 years, and is now expanding with new territories available throughout Australia! Since 2008 we’ve grown to over 30 centres, delivering 84,000 sessions each year, with the mission is to help children become happy, smart and confident.
®
energy, love providing customers with great service, are great leaders and communicators and have an eye for detail.
With exciting opportunities for growth, there’s no better time to join our network of business
94 Business Franchise Australia and New Zealand
www.automasters.com.au.
No matter your background, franchising with Begin Bright is an exciting decision. For more information, or to enquire about how you can start your journey with us, visit our website today: www.beginbright.com.au/franchise
BoConcept From Denmark to the world since 1952, BoConcept is present in 65 countries, with 265 brand stores specializing in interior design: furniture and accessories. BoConcept is more than a franchise. It is a concept for creating outstanding modern and sophisticated living spaces at affordable prices. We are experiencing a successful period of growth globally, so we are looking for franchise partners in the main cities of Australia who have the synergy and resources to be part of our success story. BoConcept main figures: • Global brand | 65 countries, 265 brand stores
BOOKS AND GIFTS DIRECT Books and Gifts Direct is Australia’s largest direct seller of books and gifts. We sell our products from lunchrooms and reception desks in more than 25,000 workplaces around Australia. Workplaces include schools, childcare centres, businesses, hospitals, community centres and other corporate entities. We also sell online. Our books and gifts sell up to 70% off recommended retail price. As the leading
BuySellLease.com.au An innovative and unique franchise opportunity for people in the sales, advertising and marketing industries. We are a real estate portal that markets all services relating to real estate such as conveyancing, finance, pest and building, removalists and storage, etc.
car care At Car Care we prefer to give you facts rather than sales talk – Fact 1 – We have been around for over 25 years. Fact 2 – We do have more franchisees operating in Australia than any other detailing business.
• Stores | Europe: 149; America: 43; MENA: 10; Asia-Pacific: 63 • Yearly | 15,000,000 website visitors, 4,000,000 in-store visitors and 125,000 customers Why join BoConcept? • Global brand, with an outstanding reputation and demand worldwide • Solid franchisor, with a unique, proven and vibrant concept • Exceptional training and support in all business areas • Superior store opening process • Profitable business with a quick generating cash flow model For further information: Email: franchise@boconcept.com Website: https://www.boconcept.com/franchise
direct seller of books and gifts across Australia, we use our strong buying power and proven business franchise model, to save money for the consumer and to help you build a prosperous and successful business. For the opportunity of a lifetime… and to realise your dream, apply now: https://booksgiftsdirect.com/franchise/applynow enquiries@booksgiftsdirect.com 02 9899 9655
Enjoy your Exclusive Territory, very easy presentation and sale of our online marketing – One product – three prices. Also, enjoy continued rollover income from renewals. For more information contact 02 8960-7277 or email Neaf Ziade on admin@buyselllease.com.au.
Fact 5 – We have a local Master Franchisee in every state so that your support base is close at hand. Fact 6 – Although our business is simple to operate we provide comprehensive training on the technical and business side of the business.
Fact 3 – Over the last 25 -30 years 200+ ordinary people have made a good living in their own Car Care business.
Fact 7 – You control the hours you work.
Fact 4 – The majority of our franchisees earn over $1800 per week ($80k+ p.a.).
Contact your local state office by calling 1300 227 227
Clark rubber
Clark Rubber offers a unique business proposition which includes business development, site selection, comprehensive training and ongoing marketing and IT support. Clark Rubber has identified several great opportunities for further growth, and is now looking for friendly, customer service-orientated business people to join its network.
Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network to more than 60 locations nationwide. In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer.
Fact 8 – We will encourage you to talk to our existing franchisees, so you get a balanced view.
For further information and to register your interest, visit clarkrubber.com.au/franchise or call 13 80 90 or direct (03) 8727 9999
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Crema Espresso
• A proven business with a simple operation;
Crema Espresso is a franchise that is continually evolving. Already well known for their food and premium coffee, Crema stores are beginning to make waves in the retail community with their store designs.
• Local support;
When recruiting new franchisees, Crema is always looking for community minded people. The business believes that this mind set and attitude brings a warmth and connection to customers that is invaluable. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. Joining the Crema Espresso team gives you the opportunity to own your own business, but not just any business.
DR BOOM COMMUNICATIONS Dr Boom has brought technology and fashion together since 1994. We have been both the leaders and innovators in mobile devices with brands such as Beats, JBL, Diesel, Kate Spade and Bodyguardz.
ECOMIST AUSTRALIA Established in 1994, Ecomist Australia is a leading provider of premium quality hygiene products and services, specialising in Odour Control and Insect Control.
AUSTRALIA AND NEW ZEALAND
Our core product is an innovative programmable aerosol dispensing system that won an award for the Best New Product from The Aerosol Association of Australia and New Zealand. Our aerosol products are manufactured in New Zealand and we offer a natural insect killer and over 50 fragrance options with French perfume.
FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great
business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
96 Business Franchise Australia and New Zealand
• Flexible floor plans; • Regional advertising; • A four week training program; • Ongoing learning for franchisees and their staff; • Store development assistance; • Design support; • Lease negotiations • Staff guidance; and • Much, much more. Crema Espresso where coffee is the souvenir of the experience. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au
Our category leading marketing and promotional activities and an innovative vending program across the east coast continues to set the standard. Join the Boom! To find out why, go to: https://youtu.be/VYo_3NVpMdI
Our ultimate aim is to enhance the environments of our customers through our high quality products and excellent after-sales service. Over the last 23 years we have developed a secure and proven franchising business model. Each Ecomist franchise has its own exclusive territory based on post codes and purchase price is generally 2x the net income of the existing business. If you are interested in finding out more, please contact Gary Vandoros on 02 9417 221, email gary.vandoros@ecomist.com.au or visit www.ecomist.com.au
opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks of training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email franchise@fastapasta.com.au, or visit our website, www.fastapasta.com.au
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
FASTWAY COURIERS AUSTRALIA
• Low start up costs
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au
• No weekend work
*Conditions apply
FASTWAY COURIERS New Zealand
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change we’d love to hear from you. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz
Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy • Revenue support packages*
Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Revenue support packages* • Low start up costs • No weekend work
FOCALPOINT As a global company with a local presence, FocalPoint has been going strong for 12 years. We offer exclusive franchises in Business Coaching and Professional Development Training. Our services are highly sought-after as our materials and methods have been developed by worldrenowned business expert Brian Tracy over 35 years of research. We guarantee results and have over 5 million satisfied graduates of our programs. FocalPoint is a brand you can trust.
GRoutpro Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and recolours old grout saving customers time and money without having to re-tile.
*Conditions apply
You can own your own business coaching & training franchise. As a certified FocalPoint professional business coach and trainer, your clients range from the solopreneur to multi-national companies. You receive full training, resources and support so you can confidently make a fast, profitable start and build a long-term, residual income. Our 200 coaches worldwide recommend this opportunity as a personally-fulfilling and financially-rewarding business offering a balanced lifestyle. Contact us today info@focalpointintl.com Tel: 08 8267 2144
Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information. Contact: Geoff Biddle Phone: 07 5515 0118 Email: mail@groutpro.com.au Website: www.groutpro.com.au
HAIRHOUSE WAREHOUSE
Hairhouse Warehouse has become a household
Hairhouse Warehouse, Australia’s leading hair & beauty brand, has huge plans for the next few years to expand with 20 new stores planned to be opened around the country.
name in Australia, with a proven business model
We are looking for passionate people who want to own their own business, work for themselves and take control of their own destiny.
that continues to evolve and generate strong returns for franchisees. For more information call 0451 370 060, email franchising@hairhousewarehouse.com.au or visit www.hhwhfranchising.com.au.
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Jim’s Car Detailing Join the largest Franchise Group in Australia! Time to turn your passion into profits! We like to keep things simple. Everything you need to have a successful Car Detailing business is included. You will get access to our exclusive software, training, top of the range
JIM’S POOL CARE MOBILE POOL SHOPS Join our team and Australia’s largest franchise system to build a business that suits your goals and lifestyle. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. You charge for your time and charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can work and gives you
JUST CUTS™ australia Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 90,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.
business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
JUST CUTS™ new zealand Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 90,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.
98 Business Franchise Australia and New Zealand
equipment and suppliers. All stationery and promotional items are included, the only thing you will need is a vehicle. It’s a Business in a Box! For more information call: Tel: 131 546 Or visit: www.cardetailing.com.au
scope to grow the business to a level that suits you. Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same at fee with all training and ongoing support included. If you are ready for a change then you need to put us on your list. We have selected opportunities around Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au
Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Contact: Luke Manning 0439 130 499 or 1800 334 498 Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Contact: Luke Manning 0439 130 499 or 0800 100 114 (toll free) Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising
LISTEN TO YOUR BODY (LTYB) In fitness, one size doesn’t fit all. LTYB sessions are individually programmed to drive 90%+ retention rates across all studios and build a strong local fitness community. Established in 2004, LTYB has proven progressive systems, high level franchisee support and strong goals of member results and Franchisee Profitability. LTYB look for motivated people who have a passion to make a difference to member’s lives. To be successful in the fitness industry, you need to walk the talk and continue to grow as a business leader and fitness leader.
LITTLE KICKERS & LITTLE RUGBY AUSTRALIA Double brand opportunity! We offer fun, energetic, healthy, imagination based activities for kids aged 18m to 7 years. With over 50,000 children attending weekly, we pride ourselves on being the leader in preschool sport! Little Kickers & Little Rugby offers a business path for people whom are passionate about working for themselves and creating a FUN environment whilst achieving financial success through our Play Not Push ethos. Franchisees need not have a background in business as
Mad Mex Fresh Mexican Grill We are continuing our growth, and are actively seeking new franchise partners. Our menu is heavily influenced by fresh, Baja style Mexican food made with authentic ingredients. Our focus is on serving fresh quality food in a quick environment whilst still allowing customers to tailor meals to their personal tastes and dietary requirements.
LTYB currently have 11 Studios in Victoria and Queensland with expansion plans Australia Wide. We offer our franchise partners an exclusive territory, full marketing support, IT and Software support, Online Operations Manual access and training, Studio business coach, Franchisee Induction program, supplier discounts, professional development opportunities and everything required to open your studio. We are currently recruiting Franchise partners Australia wide. For further enquiries, feel free to contact: Ph: 03 9331 5673 Email ben@listentoyourbody.com.au Website: www.listentoyourbody.com.au
full training is provided. Being personable and a self-starter is essential. Members of the FCA, the peak body of the country’s franchising sector, since launching, Little Kickers has become the most established and fastest growing preschool program in Australia, replicating the success that the brand has enjoyed around the world. Seeking interest for Sydney & Surrounds, Melbourne and Surrounds, Canberra, Coffs Harbour, Port Macquarie, Northern Territory and Tasmania (Hobart & Launceston). For details on how to join our team contact Dan Kelland on: E: dkelland@littlekickers.com.au M: 0423 312 550
• The passion to utilise your past business knowledge & skills to deliver an outstanding customer experience? • A background with QSR, sales or marketing ideal, but not essential. • Ability to lead, inspire and motivate staff! Become your own Head Honcho! We are seeking expansion Australia wide. www.madmex.com.au/franchise
• Do you have the drive to lead the way with fresh authentic Mexican flavour?
For more information contact us: franchising@madmex.com.au or 02 8115 9550.
MAGNETITE WINDOWS
solutions provide all the benefits of double glazing without the hassle of replacement windows. At Magnetite, we aim to exceed our customer’s expectation of comfort. We believe this starts with the first contact and continues through an assessment, installation and after sales service. Join the team that has:
Do you have a trade license or are you hands-on? Do you want to become your own boss? Your WINDOW of opportunity is now. As noise and energy efficiency are prominent issues plaguing home owners, now is the perfect time to become part of an expert team who solve these issues every day. Magnetite specialises in double glazing existing windows, as the core offering in a product range that includes seals, tint and other complementary window treatments. Our
MAIL BOXES ETC (MBE) With Australian SME’s employing over half of the working population together with the increase in numbers of home and internet based businesses, the need for basic business services like packing and freight services, printing, mailboxes and virtual office facilities are all in high demand. Established in 1980 Mail Boxes ETC (MBE) is one of the world’s largest Business Service Franchise with more than 1,700 service centres worldwide
• 18+ years technical and practical experience • #1 place in a niche market, with a unique product range • Comprehensive, hands-on training, with ongoing business and technical support • Average franchisee tenure now over 15 years. To learn more, visit www.magnetite.com.au
with 36 of those here in Australia that offer these in-demand services all under the one roof. Having these 3 in-demand services sets MBE apart from other franchises too. It means that owning a MBE is like owning 3 franchises in one; print, freight and mail boxes giving our franchisees 3 strong revenue streams. For more information please contact our franchise department on franchising@mbe.com.au or phone 1800 556 245.
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MATT FIDDES MARTIAL ARTS Join entrepreneurs and instructors who are part of our concept in providing children and adults with answers to the questions which worry them most: how do we stop kids being bullied or tempted into drugs; how do we equip them, and ourselves, with the self-confidence, character and ability to succeed in a competitive world? Focusing both mind and body to develop life skills is why Matt Fiddes Martial Arts Schools became the largest Martial Arts franchise in the world. This
MIDAS Midas is a trusted household name with over 40 years of experience in the Australian market. Initially establishing itself as an exhaust and muffler specialist, we’ve become the auto service experts specialising in car service, brakes, suspension and, yes of course, exhausts. There are currently over 80 Midas Auto Service Expert centres across Australia and we have an ambitious plan to grow our network across
NANOSHIELD New & Exclusive in Australia Unique and exclusive to NanoShield Australia, Cosy 24/7 has finally reached Australia after strong international success in over 30 countries. Share in this opportunity as we couple a great product with an effective business system to provide a cost-effective solution to a rapidly growing market with minimal competition in its class. Australia’s increasing energy problems, harsh climate and the impacts of climate change is predicted to create rising demand. The superiority and affordability of Cosy 24/7 makes it well poised to sustainably service this demand.
NeNe Chicken NeNe chicken is one of the top Korean fried chicken chains with over 1,000 outlets in South Korea. NeNe Chicken flew into Australia in 2015 and has rapidly expanded to all over Australia. Made to order, we pride ourselves on delivering the NeNe experience with uniquely marinated and batter coated fried chicken and range of authentic NeNe sauces. NeNe Chicken believe the key difference to
ProteinXpress
success is down to hard work, high values and simple principles – built on a commitment to provide the most professional instructor training possible. This is based on developing role models, respect, discipline, better school grades, confidence, self-defence, focus and maintaining a “can do” attitude. Our programmes help students lose weight; improving both their self-respect and physical abilities. They also learn self-defence in a fun, safe environment. Contact Samantha Weir 0428 515 107 Or Ryan Canavan 0419 316 000
Australia. We are always looking for new franchisees who have a passion for all things automotive. Midas franchisees are comprehensively supported in all areas of business, including workshop operation, national & local marketing, a fullyintegrated point-of-sale system and ongoing local field management expertise. (03) 8878 1122 franchiseenquiries@midas.com.au
Franchises currently available for discerning and passionate individuals to help improve the quality of life for Australians through the sales and installation of Cosy 24/7! Currently, there are no direct competitors in the energy saving window nanotechnology coatings market in Australia! Seize the opportunity! For more information please contact NanoShield at: www.nanoshield.com.au 1800 COSY 247 (1800 267 924) info@nanoshield.com.au
our franchise system is our genuine desire for franchisees to feel that they are part of the NeNe family - that everybody succeeds when together. NeNe Chicken invites you to start your own successful story today by becoming a NeNe franchisee. For more information contact Daphne Chin via: +61 3 8526 4488 or franchise@nenechicken.com.au www.nenechickenaus.com.au
that will not only make your taste buds jump for joy but also look after your nutritional needs with a healthy personalised flavour.
Be part of the smoothie revolution with ProteinXpress. We are talking about the next generation in blended drinks providing a balance of quality nutrients containing at least 20g of protein and only real fruit. No ice creams, yoghurts, purees or concentrates and never any refined sugars added.
So, if you’re thinking protein, think ProteinXpress – from smoothies to pastries; who thought protein could taste so good? Whether you need a quick meal on the go or just finished a massive workout, ProteinXpress is the choice for any healthy lifestyle.
Our philosophy is that a busy lifestyle doesn’t have to mean an unhealthy lifestyle. ProteinXpress embraces new advancements in the supplement industry. We produce high quality flavourful beverages and snacks
For more information or franchise enquiries: Visit: www.proteinxpress.com.au Email: info@proteinexpress.com.au Call: 0498 980 071
100 Business Franchise Australia and New Zealand
Sandwich Chefs® Join our team of Sandwich Chefs® and be a part of Australia’s most successful deli-carvery franchise with 50+ stores and continued growth across Australia. We provide over 30 years of brand history with tried and tested offerings from gourmet sandwiches to our carvery, fresh juices and barista made coffee.
With a 6 week training program, we will cover all aspects of your business including in-store operations and business administration. A supportive marketing team will work with you to promote your store from promotional campaigns, brand awareness initiatives and local area marketing. We are looking for hands on people who are passionate about what they do and are ready to reap the rewards of their own hard work.
Our most successful franchisees exhibit great customer service skills and team leadership attributes.
For more information:
SENIOR HELPERS
This is precisely what Senior Helpers has pioneered in the home care industry.
Senior Helpers was launched to assist older persons and their families find the professional care they need. Senior Helpers’ staff are trained and prepared to care for older adults and adults with disabilities living with a variety of conditions including mobility problems and cognitive changes such as Alzheimer’s, dementia and Parkinson’s disease.
03 9856 4400 | chrisf@pnfm.com.au www.sandwichchefs.com.au
Our ideal franchise owner is passionate about and has compassion for older adults, adults living with disabilities and their staff. They need to be honest with themselves about their skills and abilities and are prepared to engage a team that compliments them completely. Start your journey today to join the prestigious Senior Helpers’ family!
Each of these conditions requires special understanding and skill of support staff to ensure that clients can live comfortably and safely at home.
Phone: (03) 6333 4575 Email: shadmin@seniorhelpers.com.au www.seniorhelpers.com.au
SMALLPRINT
as full training is provided. Affordable start-up costs with open ended earning potential is the reason we have been the leader in Keepsake jewellery since 2004. We have franchisees in over 20 countries and are in all major cities in Australia and New Zealand. If you have the passion to drive your own business and want to change your life, we would love to talk to you. We have territory opportunities in various locations across Australia and New Zealand, so to find out more, email ian@smallp.com.au or check out the website, https://www.smallprint.com/new/au/franchiseopportunity.
Would you like more work flexibility in your life? If so, Smallprint could be the business for you. We are a home-based franchise that enables you to work around your family and life commitments. We handcraft silver keepsakes that capture loved one’s fingerprints, hand or foot prints, children’s names, words or drawings in a range of charms, pendants, cufflinks and key rings. Successful candidates will operate in an exclusive territory full of opportunities and you get to choose your own hours! No jewellery experience is required
SNAP-ON TOOLS Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country. Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional
technicians, with an established network of franchise operations across the globe. After 30 years in the Australian market, Snap-on continues to perform, providing robust financial results for its network of over 175 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.
SOCCAJOEYS
• Continuous Head Office support (marketing, operational, financial and systems)
Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 8 years. We deliver our programs to over 27,000 children annually with over 300 classes in operation across the country.
• Access to industry leading childhood development programs
Our mission is to give children the opportunity to develop skills for life through soccer. Transform lives, including yours and become a Soccajoeys Franchisee. We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives. • Ongoing training to boost your success
• Coaching and mentoring workshops • Trusted Australian brand • Become part of a thriving and energetic network of franchisees • Your own business and exclusive franchise zone • Rewarding career in the childhood development industry • Flexible lifestyle. Call us today on 1300 781 735 or email at info@soccajoeys.com Please visit our franchise page at www.soccajoeys.com.au/franchise
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spudbar We started Spudbar back in 2000 to honour the potato. We wanted to pay respect to the vegetable that has changed the planet. This underrated culinary delight is incredible. It’s healthy, nutritious, great value and the perfect complement to any meal. SpudBAR is a great choice for many people considering a franchise because:
• SpudBAR provides an intensive 3 week training course prior to opening • Support for your start in-store and ongoing training for both the franchisee and staff • Ongoing operational support helps franchisees grow their business • Turn key stores starting at $270K + GST.
• Setup costs are low due to small space requirements and minimal cooking equipment
Email: franchising@spudbar.com.au Website: www.spudbar.com.au
THE INTERFACE FINANCIAL GROUP - IFG 50/50
franchise network in Australia, New Zealand, Canada, the Republic of Ireland, the United Kingdom, the United States, Mexico and South Africa.
The Interface Financial Group franchisees provide shortterm working capital for businesses by purchasing their invoices at a discount. In the current economic climate SMEs need working capital but banks are unwilling or unable to provide it. Many of these businesses are turning to Interface for a solution. Interface has been in the alternative finance market business since 1972. It is the leading alternative funding source for business, and distributes its service through its
The IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return.
Theobroma, Chocolate Lounges, Pavilions, Bars
Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail. • Highest quality chocolate products. • Full training provided. • Professional support team with a range of skills to assist you.
The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods”. The concept was developed in response to the spiraling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue.
AUSTRALIA AND NEW ZEALAND
• With no deep fryers or grilling SpudBAR is an easy transition into hospitality/retail
For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au/franchise
With new stores opening in countries across the globe, be part of something special. Contact Ben on +61 431 727 004 E: ben@theobroma.com.au www.theobroma.com.au
Thermawood
Become part of the success story with:
Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.
• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. We are looking for passionate self-motivated people to join the Thermawood team.
Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.
Please contact Thermawood Retro-Fit Double Glazing for more information.
Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.
Info@thermawood.com.au www.thermawood.com.au 0455 555 330
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
102 Business Franchise Australia and New Zealand
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An MBE franchise. Own three businesses in one.
MAIL BOXES
PACKING & SHIPPING
PRINTING
An MBE franchise offers a solid income stream from not just mail box rentals but also packing/shipping and printing.
The need for MBE’s business services are in high demand and on the rise. With over 30 service centres across Australia, MBE is the only nationwide provider that offer all of these in-demand services and more, under the one roof. We are looking for savvy business minded people to become our next franchise partners and part of our well established, successful global franchise network. By becoming an MBE franchise business owner, you’ll benefit from a 35+ year proven business model, Monday to Friday trading hours, multiple income streams plus extensive training. Join one of the world’s largest international franchises today! For further information about franchise opportunities both in Australia and New Zealand, please contact Franchise Department | franchising@mbe.com.au | 1800 556 245
www.mbebusinessfranchise.com.au
KICK SOME GOALS FOR YOURSELF Contact our development team about FRANCHISING OPPORTUNITIES AVAILABLE in your area. Ongoing support & training provided.
ENQUIRE TODAY (03) 9234 2200 franchising@hairhousewarehouse.com.au www.hairhousefranchising.com.au