Business Franchise AUS & NZ - Nov/Dec 2013

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T he

ma g a z ine

VOL 08 ISSUE 01 november / december 2013

for

franchisees

AUSTRALIA and NEW ZEALAND

2014:

looking ahead

feature

building & landscaping

How to

stay competitive

Is franchising for you? franchise teamwork

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

LATEST NEWS

America’s Cup style FINANCIAL ADVICE FROM THE BANKS

TOP LAWYERS’ ADVICE


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

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

To find out more contact us: Australia:

p. 1300 FASTWAY w. fastway.com.au

New Zealand:

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

*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769 | Fastway Couriers (NZ) Ltd T/A Fastway Couriers, New Zealand. Fastway Couriers is a franchised courier network and its businesses are independently owned.

FSN



Australian Credit Licence 387405.

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“As I write this spring has definitely sprung and summer will soon be upon us.”

From the

Melissa Wakefield, Editor, CGB Publishing.

Editor Our building and landscaping feature is timely as it’s the season where home owners traditionally spruce, maintain and beautify their homes. We have included a variety of franchise systems that will get you out into the gardens and also presents the perfect opportunity to see our franchisees in the thick of high demand season. We also take a peek at how we can learn from the world’s most famous yacht race, the America’s Cup, as Peter Buckingham shares his observations direct from San Francisco identifying and comparing the similarities of this great race share with a franchise team. You wouldn’t think it! It’s a great read. Well done to our neighbours, Emirates Team NZ, for keeping our hopes alive. As we go to print we prepare for this year’s National Franchising Conference event on the Gold Coast. Good luck to all the award nominees and thank you for setting such a high standard for our industry. Be sure to

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 8 ISSUE 1, nov / dec 2013 publisher: Colin Bradbury. colin@cgbpublishing.com

register for our newsletter so you can receive this year’s conference highlights in a stand alone digital supplement direct to your inbox. There’s some good news from Michael Paul, Chairman of the Franchise Council of Australia, as he overviews what a new government means for small business and the franchising sector. Dr Michael Schaper provides insight into the growing need for pre-entry education for would-be franchisees, and from a legal viewpoint we hear from Mason Sier Turnbull how changes to the Franchising Code of Conduct are likely to impact franchisees. Janine Allis poses the question “Is franchising the right fit for you?”, and Robert Graham from CEO Consulting shares his experience to ensure you are considering the competitive value of your franchise. There’s much more, plus all of the franchise profiles, regular columns and the latest news in the world of franchising. Finally, we love hearing from our readers and if there’s anything you’d like to see covered in the future, please let us know. Your feedback is most welcome. Melissa Wakefield Editor

EDITOR: Melissa Wakefield. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au SALES & marketing executive: Jodie Turner. jodie@cgbpublishing.com.au PRODUCTION: Joanne Tuffy. production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 9772 2571 COVER IMAGE: Jim’s Fencing TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au

SUPPLIER FORUM

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

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

Business Franchise Australia and New Zealand 3


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51

Contents november / december 2013 On the Cover

48 Is Franchising the right fit for you?

Michael Paul, FCA Chairman

20 Franchise teamwork - America’s Cup Style

Peter Buckingham, Spectrum Analysis

48

34

Janine Allis, Retail Zoo

51 Feature – Building & Landscaping 84 Will your franchise be competitive

in 5 years?

Robert Graham, CEO Consulting

84

14 Franchising set for a strong 2014

In Every Issue

Profiled Franchises

6

12 Mr Tax Refund

What’s New!

Announcements from the industry

10 Cover story – Jim’s Fencing

Driving to New Heights

14 Chairman’s report

Michael Paul, FCA Chairman

16 Executive Director’s report

Graham Billings, FANZ Executive Director

18 Aus1Energis 46 Franchise Selection 58 Spray Pave Australia 62 Narellan Pools

97 Behind the Headlines

64 V.I.P. Australia

99 Professional Services Listings

68 THE Shed Company

102 Franchise Listings

74 Cafe2U

Jason Gehrke, Franchise Advisory Centre

104 A-Z Franchise Directory


24 7 Essential Elements of Respect

Appliance Tagging Services............... 104

Jason Gehrke, Franchise Advisory Centre

34 Are your Expectations Realistic?

Dr Michael Schaper, ACCC

38 Review of the Franchising Code of Conduct

Esther Gutnick, Mason Sier Turnbull

42 Restraints of Trade in Franchise Agreements

Mark Sherry, Harmans Lawyers New Zealand

52 Jim’s secrets to success

Jim Penman, Jim’s Group

56 The long and short of V.I.P. Home Services

Bill Vis, V.I.P. Home Services

70 Top 10 Success Tips for Builders and Trades

Katherine Grace, Graceful Solutions Marketing

76 How to sell using Social Media

Maria Abadilla, Revive Projects

80 50 Shades of Grey?

Dean Salomone, Rozzi’s Italian Canteen

88 Navigating the Rapids of Business

Tania Allen, Vision Alliance

90 10 tips to help your business thrive

Peter Knight and Kate Groom, Smart Franchise

94 How to avoid a cashflow crisis

Sharen Verrenkamp, Westpac

Battery World.................................OBC, 104

Bing Boy................................................. 50, 104 Brazilian Beauty................................. 77, 104

Bright Eyes Franchising................83, 105 Cafe2U............................................................ 105 Coral Homes....................................... 65, 105 Exa Web Solutions. ......................... 75, 105 Fasta Pasta................................................... 106 Fastway Couriers............................ IFC, 106 FC Business Solutions. ............................ 17

38

90

Expert Advice

also in this issue:

Hairhouse Warehouse...................93, 106

Just Cuts.........................................................107 Kwik Kerb.......................................................107 Lava Carts..................................................... 108 Listen To Read. .......................................... 108 Mercedes-Benz............................................ 35 Noodle Box. ......................................... 41, 109

Franchisor in Depth

Red Rooster................................................. 109

60 Inspect My Home

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

66 Unscratch The Surface

Rent the Roo........................................87, 109 Sleepy’s.......................................................... 109

32 National Franchise Insurance Brokers 44 eWorks 54 Diverse Shopfitters

Franchise in Focus 28 Social Media Business Boosters

Snap-on Tools....................................... 2, 110 Snooze.................................................. IBC, 110 Taco Bill. .......................................................... 111 TeleChoice............................................. 79, 111 The Australian Drug Detection Agency. ...................................................................... 27, 111

60

Snapshot / Spotlight on Service

The Concrete Cutter................................ 111 The Interface Financial Group....96, 111 Xpresso Mobile Cafe............................... 112


what’snew!

Yamaha Sky Division Australia offers franchisees the chance to fly The introduction of the Yamaha RMAX unmanned helicopter will enable franchisees and contractors to maintain land and crops remotely, from the air, and without the hassles that come with more traditional farming methods. The RMAX is a remote controlled helicopter designed specifically for the agricultural industry. The newest member for Yamaha Sky Division Australia weighs in at 99kg, has a total length of 3.63m and a height of 1.08m, and is the ultimate piece of farm machinery for the 21st century. This new technology allows operators to spray weeds, crops, or spread seed in a more cost effective and accurate manner. Because RMAX is completely airborne, terrain is no longer an issue. Spraying dangerous aquatic weeds or accessing uneven ground is all part of the package, and can be done in a time efficient way. Liquids and granules can be dispersed across a 400m range from the location of the operator, covering approximately 2 acres in just 6 minutes. This new technology represents a new business opportunity for individuals seeking access to a unique market. Becoming a franchisee of Yamaha Sky Division Australia will see successful candidates offering their clients a service that they cannot access from any other operator in their region. As the first franchisee to get on board with Yamahas Sky Division

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Australia, Greg Harris has been heavily involved with their growth and development. It has allowed him to expand his business drastically, with interest from state government and numerous land owners. “I’ve spent 9 years waiting for the approval of this technology, and now that I am fully operable in the ACT I’m working with the ACT government, as well as servicing clients nationally,” Harris stated. National Sales Manager for Yamaha Sky Division Australia, Mike Johnson is excited about this agricultural innovation, and the opportunities that it will provide franchisees. “We’re proud to be releasing this new technology to the Australian agricultural industry,” Johnson said. “RMAX gives franchisees the opportunity to work closely with Yamaha Motor Australia to build a local business that is both sustainable and profitable.” In order to become a franchisee, candidates are required to meet a number of stringent CASA and Chemical Handling qualifications. This newly acquired skill set will give franchisees a distinct advantage over operators offering similar spraying and cultivation services, and will stand them in good stead to grow their business to a point where there is the potential to operate an entire fleet of RMAX’s across an extensive range of applications.


The Coffee Club to open 14 new stores before Christmas Australian café group, The Coffee Club, has announced it will open one new store every week, from now until Christmas.

out of our fresh, premium cafe and dining experience which will further fuel our growth in Australia,” Mr Lazarou said.

The 14 new stores, located across New South Wales, Queensland, Tasmania and Western Australia, will feature a new modernised store design; just one of the new elements introduced as part of The Coffee Club’s recently announced brand transformation.

“In 2012 The Coffee Club Group had a very successful year with a turnover of $400 million, which is enabling the group to expand domestically.”

The expansion will bring the total number of The Coffee Club stores to 279 nationally with the café group expanding its footprint in each state and territory in Australia. The Coffee Club Director, John Lazarou, said The Coffee Club’s growth in Australia is testament to the popularity of the brand with consumers and business people looking to buy a successful franchise business. “We spend a lot of time on attention to detail in our new stores to ensure all of our customers enjoy a warm and inviting experience. We’re excited to see the roll

Mr Lazarou said the new store openings are only part of the developments at The Coffee Club as part of its brand transformation ahead of its 25th anniversary next year. “It is very exciting to see all the changes that have occurred at The Coffee Club over its 24 year history. This is something truly spectacular for the franchise industry in Australia,” Mr Lazarou said. Last year, The Coffee Club served 40 million cups of coffee and proudly employs more than 6,000 people nationally. The new stores will be located at QLD; Gladstone, Tingalpa, Buderim, Chinchilla, two in Ipswich, Kawana. NSW; Cabarita,

Albury. WA; Bunbury, Kalamanda VIC; Epping Plaza, Craigieburn & Eastlands, Tas. Internationally, The Coffee Club has 66 stores with 46 in New Zealand, 12 in Thailand, 3 in China, 3 in Egypt, 2 in the Maldives and 1 in New Caledonia.

Quest Geelong franchisees upgrade and makeover A significant $250,000 makeover of Quest Geelong has just been completed, including the refurbishment of all studio, one, two and three bedroom apartments at the property. The makeover involved a full restoration of the reception and lobby area, as well as external painting of the serviced apartment complex. Quest Geelong Franchisees Paul and Shirley Dodds, who have been owner operators of the business since July 2011, believe the money spent on the refurbishment is warranted to keep the property up-to-date for its visitors. “The majority of our guests are travelling for business and we need to provide a balance between offering a comfortable ‘home away from home’ as well as providing the modern facilities they require to work productively and efficiently,” Mr. Dodds explained. “We are 100 per cent committed to making Quest Geelong the most comfortable and convenient place to stay while doing business. Our new and regular clientele will enjoy the fresh new look,” Mr. Dodds added.

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what’snew! Choice Hotels launch Head Office to Front Office initiative Service Institute of Australia’s National Customer Service Week, 7-11 October and running until 30 November, the concept was developed to provide the Choice Hotels team with a greater understanding and appreciation of the day to day activities and challenges facing a hotel today. Choice Hotels Chief Executive Officer, Trent Fraser said the activation will allow its head office team to gain an invaluable on-the-job insight into hotel operations.

As part of a renewed focus on the customer experience, Choice Hotels Australasia (Choice Hotels) has launched a ‘Head Office to Front Office’ initiative. The initiative will see the hotel franchise group send its entire corporate team to spend a day in a hotel operator’s shoes. Timed to coincide with the Customer

“Superior service is the big differentiator in our industry and whether it’s working the front desk, lending a hand to housekeeping or taking orders from the bar, I’m looking forward to getting my hands dirty,” said Fraser. According to Fraser, Choice Hotels properties that have a strong customer service focus enjoy a sustainable competitive advantage, attract better customers as well as more talented and motivated employees. “For our business to further succeed, our entire corporate team - from marketing, sales, field services, accounts, legal and our

call centre crew - need to better understand our customers and our franchisees. Getting back into hotels at an operational level helps us support our franchisees, learn from them and experience first-hand the challenges within the industry. Our team will also offer guidance and suggestions to our franchisees if we see opportunities where we can collectively improve our service offering to our guests,” said Fraser. Head Office to Front Office’ will kick off in Melbourne this week with several Choice Hotels team members heading off to hotels across the country, offering their services for an eight hour hotel shift working in operational areas including Housekeeping, Restaurant, Kitchen and Front Office. In addition to ‘Head Office to Front Office’, Choice Hotels will deliver customer service training programs to both corporate team members and its franchisees. Commencing in early 2014, the series of programs will concentrate on internal and external customers with an emphasis on providing exceptional and memorable service.

Doughbox Diners - Bringing Retro to Metro Doughbox Diner - the 50’s style Diner concept that has customers queuing for its famous crispy crepe cones, has just announced the launch of its franchise program. Founders, Fiona and George Milonas, have combined the vintage and retro themes of an old fashion Diner with a mouth-watering crispy Crepe Cone menu that has quickly become iconic with Sydney based foodies and families. With 50’s music in the background, the trademark pink and aqua décor and the tantalising smell of crepes wafting out on to the street, customers drive long distances to get their fix of savoury and sweet crepes cones along with old- fashioned malt shakes, waffles and ice cream. “The Crepe Cone recipe is so secret it is kept under lock and key” said George, who has

refined the recipe over many years. “People love it so much they have been known to drive hundreds of kilometres. Others come back day after day just trying different combinations on our menu and we always make sure they get good old fashioned serving sizes”. Fiona (aka Diner Doll), the mastermind of the 1950’s theme, said “Doughbox Diner is so much more than just a Diner; it taps into the pin up culture and slight sense of crazy that was the 50’s. It is somewhere to get unforgettable meals and sweets and enjoy a Diner with a difference.” Robert Graham, Managing Director of CEO Consulting, who has been working with Fiona & George to develop the franchise said “Doughbox Diner will initially be launching in Sydney and then in selected locations around Australia. Not only is it a unique

8 Business Franchise Australia and New Zealand

concept, it offers very strong returns from only a low investment so it differentiates from mainstream QSR and food franchises with its much lower entry costs. It will appeal to franchisees looking for flexible working hours and a fun place to be in business.”


Franchised Food Company acquires gelato chain, Trampoline Franchised Food Company’s CEO Stan Gordon has hopped, skipped and jumped into his latest acquisition, announcing the successful takeover of high-end Australian gelato chain Trampoline. The company, which already encompasses Cold Rock Ice Creamery, Pretzel World, Nutshack and Mr Whippy brands, adds this popular brand to it’s franchise line-up, complementing the feel-good ethos of the FFCo name. The acquisition of Trampoline is yet just another step in the expansion strategy for Franchised Food Company. With 13 Trampoline stores in Victoria and the Northern Territory, FFCo sees massive opportunity to expand this award-winning gelato brand nationally. Self-confessed leaders in the fun treats space, FFCo has further brand takeovers in their sights, which,

if completed will see aggressive national expansion in the franchising sector. Gordon is ecstatic to announce the acquisition, marking further development and future plans for the franchising business: “They call me the Fun Treats King, and that’s just what I am! I couldn’t be more excited to have the opportunity to make Trampoline part of the FFCo family. One of the most important things we look for in an acquisition is that the brand fits well into our existing vision. Like all of our brands, Trampoline encourages people to take a moment to enjoy life’s simple pleasures and like all of our brands, it must bring a smile to the customer’s face. I am confident that Trampoline will.

and there is much more in the pipeline for FFCo. We always have our sights set on new exciting ventures and opportunities that will benefit all stakeholders. Trampoline is an important part of our continued growth, with many more big things to come,” he added. Gordon added that although Trampoline will be owned and operated by FFCo, he is delighted to confirm an ongoing relationship with Burra Foods.

“The tasty treats market is filled with opportunity for growth and future success

Mishfit HQ Personal Training awarded gold by Fitness Australia Announced recently, mishfit HQ in Northcote, Victoria, received a GOLD Quality Award from Fitness Australia, the fitness industry’s peak body, for its proven ability to provide quality service across its business.

“We are excited to receive the GOLD Quality Award. It is a great honour to be recognised by our colleagues for the service we provide to our customers and the community,” said Michelle Wright, CEO and Founder of mishfit.

Fitness Australia’s Health and Fitness Industry Quality Awards promote and celebrate industry excellence and the work the fitness industry does in helping Australians get and stay fit and health. This year, 68 fitness businesses across Australia were granted a Quality Award.

“mishfit was the only personal training business that specialised specifically for pregnant and postnatal women honoured with this award,” she said.

The GOLD Quality Award is granted to a fitness business that has achieved quality in customer service, programs, people, safety and business management. “mishfit HQ should be proud of its achievement; the Quality Awards are the highest accolade that our industry can award to a fitness provider. Mishfit’s customers can be confident that they are with one of the very best fitness providers in the country,” said Ms Lauretta Stace, Chief Executive Officer of Fitness Australia.

“With more than 60 per cent of Australian adults estimated to be overweight or obese and the consequent increase in chronic conditions, the fitness industry has a vital role to play in the health of our community. But with this role comes the responsibility of ensuring that our businesses are providing high quality services and striving for continuous improvement. This Award is proof that we deliver a quality service and we are committed to raising the bar even higher,” said Michelle. Mishfit currently has 6 franchises in Victoria and is looking to expand interstate in 2014.

Business Franchise Australia and New Zealand 9


COVER STO RY

driving to

new heights “Dad was a building inspector so I spent a lot of time on building sites,” he said. This fork in the road led him to choose a career in the automotive industry, but after ten years working with cars, he decided it was time for a change. After moving into a corporate environment working in customer service, Justin found working in an office environment just wasn’t for him.

For Justin Williams, becoming a Jim’s Fencing franchisee was an easy decision. A mechanic by trade, Justin had spent his most recent working tenure in a customer service role for a manufacturer’s head office. He had no previous experience working with timber but says it was a smooth transition as he loves working with his hands The Jim’s Fencing franchise was attractive to him for a number of reasons. “Obviously you see Jim’s trailers from a number of different divisions all over town.” He said it was the exposure to Jim’s brand, the system’s

proven track record of success, and the security of the brand that appealed to him the most. Justin says the eight week training program that included business training, extracurricular activities, and on the job training provided him with the impetus to move forward with purchasing his first franchise. “They pack a lot into it,” he said of the training. “Knowing how to build fences is one thing, but how to build fences and make money is a different thing altogether.” Justin says he always enjoyed working with various materials. He did so at high school, and attributes this time to helping him choose a career after his schooling.

10 Business Franchise Australia and New Zealand

“Although a great experience, after sitting in an office for two years staring at a computer screen, I knew this kind of job wasn’t for me. “But at the same time, I had no desire to go back into cars,” he said. Justin found the challenges of paid employment didn’t always align with the effort put in, either. “You work hard, but you don’t always see the benefit of the hard work personally,” he said. When considering his next move, Justin broke it down to three things: He didn’t wish to go back to the automotive industry, he didn’t wish to work in an office environment, and he sought a position where the effort resulted in personal reward. It was pretty clear to him that self-employment was the logical next step.


After researching many business opportunities, Justin said he found the initial enquiry with Jim’s Fencing to be a very transparent process. “From the time that you contact the franchisor, they qualify you as appropriate for the system. It’s not a matter of walking in with a cheque and buying a franchise. They are very careful and selective so that they can ensure their franchisees will be successful in the system.” “Part of this process is spending a day or two with a franchisee and trainer who evaluated your skills using the tools. This was especially important as it provided me with an opportunity to see what the day to day job was all about,” he said. Once Justin received all of the appropriate documentation and had these reviewed by his accountant and solicitor, it was time to commit to the training. “Initially, you attend general training, among franchisees from all of Jim’s divisions, which is a three day generic training course at Jim’s head office in Mooroolbark. It was a nice, quiet and serene environment where they provide you with all the background into the Jim’s brand,” he said. Justin says this provided him with fantastic exposure to Jim’s network and found the contacts he made during this time very useful.

is useful,” he said. Owning your own franchise also provides other benefits not usually associated with working for someone else. “Because you have the flexibility, I never feel like I have to be somewhere,” he said. Justin says the choice is yours: “The more you work and put in, the more you get out.”

“All of this took place before I committed to the franchise. That’s why I think it’s a very transparent process,” he offered.

The transition to business ownership was personally very timely for Justin. At the time of signing his contract, Justin’s partner, Mariska, was seven months pregnant with their second child.

Since joining Jim’s Fencing in 2011, Justin speaks positively of the ongoing support he receives. “Even receiving the odd proactive phone call periodically from your franchisor

“We would have struggled if I was in a normal job. I was able to schedule our appointments to make sure I was providing support at home as well,” he said.

Justin, however, warns the potential franchisee not to be too romantic about the system doing all the work. “The biggest thing is you need to look deep down and work out whether you are going to be successful in your own business. Be prepared to work hard and make sacrifices. Buying the franchise doesn’t instantly mean you will be successful,” he said. He also highlights the importance of finding a franchise you are going to enjoy. “If you enjoy what you do, it goes a long way to ensuring you will be successful,” he said. For more information regarding a franchise with Jim’s Fencing: Phone: 131 546 Web: www.jimsfencing.net

DAVE SKENE Sydney is currently experiencing a growth phase under the new management of Adam and Vanessa Powell. Adam tells us his latest recruit Dave Skene from Jims Fencing (Bondi) has just completed his eight week on site training and has hit the ground running with three weeks’ worth of work already booked ahead and being swamped with leads! Dave has been a life guard for one of the famous beaches on the Eastern Suburbs of Sydney. He has been a part of lifesaving for over 10 years and it was time to change. Dave is a fantastic addition to the Jims Fencing division. He is community minded, hardworking and an asset to the Jims Fencing Sydney team.

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PROFILE : M r Ta x R efu n d ®

Mr Tax Refund not so taxing advances making it an ideal loyalty tool for franchisees. “Apart from providing our franchisees with an incremental source of income, our one business day refund service also provides them with an effective tool to drive demand – especially against larger more established providers,” said Stephen. If you are a qualified Tax Agent, Accountant, graduating Accountant, have experience preparing Australian tax returns or the have the drive and energy to learn, Mr Tax Refund® would like to hear from you. You may be pleasantly surprised how easily and with what little capital is required to start your own Mr Tax Refund® franchise, and the size of the potential rewards.

Mr Tax Refund® is emerging as one of Australia’s fastest growing and most recognised tax preparers. This is coupled with boundless energy and aggressive expansion plans. Their one business day refund service program has taken the market by storm and demand is exceptionally high for their great value, convenient services. “We decided to franchise our system nationwide to further accelerate expansion of our popular services and give enterprising individuals the opportunity to get into their own business,” said Stephen Burns, Chief Executive Officer. “Our current franchisees range from recent accounting graduates seeking to attain their tax agent licence through to experienced practitioners looking to supplement earnings during the busy tax season. “We’ve also built flexibility into our model allowing franchisees to build their business according to their individual capabilities and goals,” he said. Stephen believes that early entrants to the

franchise system are set to benefit already from the latent demand created and has identified some amazing opportunities Australia-wide. “Management and staff at Mr Tax Refund® have a significant amount of franchising experience in the financial services industry. We have the ability to consult with franchisees to ensure that they get up and running quickly and have the best chance of profit in their first season with us,” he said. Another exciting development is the one business day refund service. Mr Tax Refund® enables clients to get cash next day following the lodgement of their tax return. They advance a portion of the expected tax return in anticipation of getting it back when the tax office delivers the tax refund. “The service has been popular in the US for over 25 years where 40 per cent of taxpayers live pay-to-pay and need their refund faster than the tax office can ,” he said. Only a few Australian Tax Agents offer such as service. In 2014 clients will be able to have a portion of their tax refund advanced and loaded to a Debit Card making the process even faster. The Mr Tax Refund Visa Debit Card can be used year after year to load tax refund

12 Business Franchise Australia and New Zealand

For further information contact: Phone: 08 9420 1440 or 1300 829 227 Email: franchise@mrtaxrefund.com.au Web: www.mrtaxrefund.com.au

A Mr Tax Refund® Franchise Can Offer You: • A very low cost turn-key operation – for just $9,990 (Get started for only $1995 limited to first 20 franchisees)

• Training and access to advice • All systems such as automatic contracts • One of the fastest growing companies in the sector • A recognised National brand • Flexible working conditions to suit you • Growing annual income year on year only limited by your ambition


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fr anch ise cou nci l of aust r a l i a

Franchising set for a strong 2014

14 Business Franchise Australia and New Zealand


“This year has been one of collaboration and we look forward to continuing this trend both with Government and other stakeholders next year.” Michael Paul, Chairman, Franchise Council of Australia.

A new government, increasing public awareness of franchising as a viable way to do business, and strong investor interest from overseas means franchising will move into 2014 in an enviable position. Coalition’s intentions look promising for Small Business At the time of writing, MP Bruce Billson has just been announced as Australia’s Minister for Small Business. This comes as good news but no great surprise. Minister Billson was re-elected to the Federal seat of Dunkley for his seventh consecutive term, and has been the Shadow Minister for Small Business since 2009. What is a far more encouraging sign from the new government was the move of the portfolio from the Department of Innovation back to Cabinet. This signals the Coalition Government’s intention to take Small Business and the livelihood of hundreds of thousands of hard working Australians seriously. In Minister Billson, we have a long-term small business advocate installed in a Cabinet that aims to get things done. We anticipate Billson and his team will pick up where the previous government left off – with the preparation of a regulatory impact statement following the extensive Franchising Code of Conduct review, which

has been taking place in various stages, since 4 January this year. This provides a solid position for franchising to move through to the end of the year and into 2014. This year has been one of collaboration and we look forward to continuing this trend both with government and other stakeholders next year.

Enhancing the perception of Australian franchising to the wider community Each year, along with Government representation, the FCA engages in various activities in Australia and abroad to educate and enhance the perception of Australian franchising. Along with the revamped Franchise and Business Opportunities Expos held around the country in 2013, FCA also took part in the Food Service Australia show and the Hotel Franchise World event during the year. Strong visitor interest in FCA services has ensured our continued and increased involvement with industry-based events, as the appetite for franchising information and advice continues to grow in the wider small business community. In June and August, the FCA participated in the Australia China Business Week events held in Melbourne and Sydney respectively. I was fortunate enough to attend and speak at the Sydney event, which comprised more than 1,300 delegates from Australia and China researching investment in Australian business. Following the success of the FCA Franchisor US Study Tour which I wrote about earlier this year, a delegation of US Franchisors will complete a similar program in Australia, coordinated and hosted by FCA, following

attendance at the National Franchise Convention this October. These international relationships are becoming increasingly important to our members as their systems grow and move beyond Australia. It is fantastic to see the interest in international franchising is reciprocated by our American counterparts. The Franchise Council of Australia is also a member of the World Franchise Council and attending meetings twice yearly has ensured we represent Australian franchising on a global scale. FCA representatives also attended the New Zealand Annual Franchise Conference and participated in expert panel sessions at the Franchise UAE Expo in September of this year.

Looking ahead As we look forward to the next twelve months, we can expect the changes from this year’s Code review to be implemented, and following the change of Government, a slow strengthening of the Australian economy. As always, the franchise sector with its robust business systems will continue to outperform the broader small business market. The FCA is committed to ensuring that government understands the valuable contribution that franchising makes to the national economy. We will work collaboratively with the government, to influence good policy not only for franchising, but for small business generally. We will continue to promote the importance of pre-entry education for those considering investing in our sector and the value of solid franchisee-franchisor relationships. It’s been another tough year economically, but with a constant focus on credibility and transparency, Australian franchising continues to go from strength to strength.

Business Franchise Australia and New Zealand 15


fr anch ise associ at i on of n e w ze a l an d

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

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

felt completion of pre-entry education should be a mandatory requirement before entering a franchise agreement.

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

Each module incorporates a mixture of downloadable text and short videos followed by a self-assessment questionnaire. Completion of a module allows access to the next in the series, with Massey University providing a Certificate of Participation to individuals who complete all 5 segments.

Franchising research in Australia has previously found that improved pre-entry education is likely to have significant positive impact on the franchise sector. One key study found that 71.3 per cent of respondents

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

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

16 Business Franchise Australia and New Zealand

FC_


Meet the team

GO TO OUR NEW WEBSITE

fcbusinesssolutions .com.au

Business Franchise Australia and New Zealand 17 FC_A4Adver[2012].indd 1

22/09/12 4:39 PM


profile : Aus1Energ is

Be a part of the smart energy solution revolution Aus1Energis presents a truly unique franchise opportunity in the rapidly growing market for renewable energy products. Established in 2009, Aus1Energis deal in smart energy products that help homeowners and businesses resist the impact of rapidly increasing electricity prices whilst reducing their carbon footprint. Their specialisation is in Solar, Hot Water, Lighting, and Heating and Cooling products that helps their customers become more energy efficient and resourceful consumers. Aus1Energis’ technical product development team is always scouring the global renewable energy industry for appropriate technological advancements that will bring a better service to their customers. “At the moment, we’re working on a Solar Off-grid Power System that will unquestionably change the way customers invest in solar energy. “Having the ability to store energy within the customer’s residence means less interaction between them and the large utility companies, which can only mean bigger savings for the customer,” said Managing Director, Deepak Sharma.

discovery of Chlorophyll-f. Scientists have started bioengineering solar panels to capture more light, which will make solar panels even more efficient than they are today. For Managing Director, Raman Chhabra, the recipe is simple: “At Aus1Energis, we pride ourselves on supplying the best brands at the best prices with the best service guaranteed. We know that other companies may claim similar mottos but unlike some solar solutions companies, we’ve figured out how to achieve this. “We can offer the best prices because our innovative business model avoids costly middlemen so that we can guarantee the lowest prices for our customers without resorting to inferior products,” he said No trade skills are necessary to own an Energis business franchise. The system supplies highly professional installers who take care of the technical side of things. These installers and tradesmen are fully accredited by the Clean Energy Council (CEC), making sure that they only bring the best service. “All you will need to do is book an installation for your customer and include the price in your quote. This allows you to stay focussed on sales and marketing for your business,” said Raman Chhabra.

Every year there are scientific advancements in the renewable energy industry. Each advancement and break-through has one goal; to make the products and industry stronger, affordable and more efficient.

All of the support and resources to start and grow a successful Energis franchise are provided to their franchisees through their comprehensive three month initial training that covers business set up, marketing and generation planning, joint visitation with Aus1Energis customers, and weekly coaching and feedback sessions.

One example of a scientific breakthrough that will help the solar industry is the

“We’ve not only created a user-friendly start-up kit, but we’ve set up initial training

18 Business Franchise Australia and New Zealand

programs and business coaching with experienced professionals to help franchisees understand every aspect of the business,” he said. But it doesn’t stop there: Their highly trained in-house professionals are always on call to help franchisees with any problems that arise. Lead and business generation has been made easy with Aus1Energis’ personalised CRM (Customer Relationship Management) system and initial training program. In addition to the leads franchisees generate, Aus1Energis allocates and provides additional leads that come through head office. “Very few other franchise opportunities offer you such low running costs with very high commissions,” Raman Chhabra said. “We want each of our franchisees to be able to build a business bigger than themselves. Our main goal is to have Aus1Energis a household name associated with quality products and elite service. “Most renewable energy products are sold after a consultation with the client. Energis realises the importance of understanding the clients needs before selling them a solution and will use the franchise network to do this consultative selling. Energis with their franchise network will create the buying power, and essentially have a distribution model which is more suited to the industry and one that is is customer focused in comparison to the traditional model which has wholesalers acting as suppliers,” said Raman Chhabra. For further information about becoming an Aus1Energis franchisee contact: Phone: 1300 782 217 Web: www.franchise.energis.com.au



e x pert a A dv ice

Franchise Teamwork le y t s p u C s ’ a Americ In a franchise operation you need to have teamwork and cohesion so everybody knows what their responsibility and job is, and by achieving that, we normally see the most competitive and effectively performing franchise systems. It is not very effective having the CEO of McDonalds licking stamps for envelopes, and having a young backroom burger flipper telling the CFO how to invest the spare cash!

20 Business Franchise Australia and New Zealand


“A good franchise system is normally run with little excess fat as well, and the best way to do this is make sure everyone knows their job and does it effectively.” Peter Buckingham, Managing Director, Spectrum Analysis.

In all steps of the franchise process, be it internal operations of the Franchisor, the interface to Franchisees, or the internal operations of the Franchisees, having delegated roles and responsibilities makes the process of getting the job done far more effective. I had the privilege of attending some of the America’s Cup racing in San Francisco this Spring, and if you want to see how to run an efficient operation, just have look at these teams. 3 years ago the concept of racing 72’ catamarans on hydrofoils was just a dream, and never had such a vessel been built. International yachting came together and decided to start by building and racing Americas Cup 45 Catamarans, to have sailors become use to racing such vessels, and then to graduate to AC72’s around 1 year before the America’s Cup. This was a “start from scratch” event where the teams had to design and build their vessels, learn to sail them and become extremely competitive for the racing that was to start in July 2013, with the finals of the America’s Cup in September 2013 in San Francisco. Despite not regaining the America’s Cup from the Americans, in what turned out to be a nail biting series, let’s compare the Emirates Team New Zealand to a Franchise system, and see where it comes together?

Proof of Concept The first thing is an idea and to test the concept. In the case of the America’s Cup

this was a design phase using around 35 design engineers and very sophisticated computer modelling on a very high end Dell computer platform, so much so that it was run at Cambridge University in New Zealand. We are told that originally the boat looked like it would break up due to massive forces, but these issues were slowly overcome to create the magnificent craft they are racing today. Hydro foiling had also never been done on large racing catamarans like these, and Emirates Team New Zealand worked out a way, and led the competition, who had to follow to remain competitive. A franchise system has similar issues. What are we going to sell, will it work, how do we make it and does the community want to purchase or use it? Peter Ritchie, ex McDonalds Australia, and now Chairman of Mortgage Choice says there must be a “proof

of concept”, or simply does it work and can we make a quid out of it? Competition then often follows suit, and we have to adapt to stay ahead of the competition, just like Team New Zealand tried to do. Unfortunately for them, the competition learnt from them, and went one step better to eventually win the series 9 races to 8.

Effective use of people power Emirates Team New Zealand had around 105 people involved, and with families, had to relocate around 300 people in San Francisco from May until the end of the America’s Cup. Grant Dalton, the CEO of the operation has run an extremely effective team, and just to further make his life even more complicated, he actually was one of the crew on board the boat. This in itself is amazing as he is grinding winches with 20 plus year olds, and holding his own; not bad for a guy of 56.

Business Franchise Australia and New Zealand 21


e x pert adv A dv ice

In Emirates Team NZ, everyone knew exactly what they had to do, and there is absolutely no holding back on that is “not my job”. I watched them take the wing off the boat 3 days in a row and exactly the same process was followed; the crane did exactly the same thing, same people on the trolleys to attach the wing and wheel it into the shed – an absolutely disciplined performance. What they had done is “systemise” basically every process they undertake, and in a sport of seconds, this is all about consistency and repeatedly doing the same thing, at 100 per cent performance. In franchising the top performers have similar job functions and job descriptions. My view (and I worked 20 years for an oil company) is that the most successful businesses can delegate as long as there is a process that establishes the basics of what you wish to achieve. I work with many franchisors and the best ones do this very well. The ones that concern me are ones where the lines become so blurred, everyone is trying to do everything – and not very effectively.

If you appoint someone as a Manager, let them do their job as per their Guidelines and KPI’s. I often I see where the CEO (and others) all become experts on such things as where to place a store – normally near where they live, as that is the area they know best. I can only say – “stay out of it!” You naturally have the right to make a “suggestion” but let it go after that. Too often in a franchise operation you can see the Founder or CEO still wanting to make every decision, where their responsibility is to make sure the process is in place to create the best result. The great case of delegation which I respect on Emirates Team New Zealand is that even though Grant Dalton (CEO) is in the crew (on the boat), he does not contribute to the brains trust in the running of the boat on the water, just head down and grind! The skipper, Dean Barker, and his tactician and strategist make all the decisions in the race, and Grant’s decision to be there is because he can earn it, and must pull his weight or make way for another. Boats like this are run purely on muscle, with no stored energy allowed. Even running hydraulics to trim the boat is all generated by

22 Business Franchise Australia and New Zealand

pumping those grinding handles. It has been described as a doing a 25 minute beep test when you watch the grinders generating the energy to trim the boat. A good franchise system is normally run with little excess fat as well, and the best way to do this is to make sure everyone knows their job and does it effectively. I was told the US Team basically had 2 people to one for each person on the New Zealand team, and has probabaly spend over double of what New Zealand has spent to defend the Cup. Making sure money is spent to achieve the best results is surely a common thing to both.

Focus on the main event The next thing to note is that in Emirates Team NZ everything was focused on one thing – winning the America’s Cup. The atmosphere was about being focused on the goal, and making tiny changes to improve the performance. In the period between winning the Louis Vuitton Cup and the beginning of the finals, changes were being made to the boat, and every night after racing, everything was checked, double checked and altered if it improved performance.


Australian, Jimmy Spithill, who skippered the successful US defender Oracle, was equally focussed and probabaly has made the greatest recovery in international sport, coming from 1 – 8 down to eventually roll ETNZ 9 – 8. His focus and determination is now legendary, as he did not waver despite being at Match Point against him for over a week. I liken this to a top franchise system. Companies like McDonalds have been legendary for making sure they achieve the absolute best in product and processes that they can. Ray Krok (founder of McDonalds) was often seen to be picking up discarded pickles because he was annoyed that a McDonald’s driveway looked messy. His philosophy was to do whatever was needed to achieve the best result, irrespective of the cost, and then be able to reproduce that time and time again. Determination and leadership from the front is what many great franchise systems have, often in the case of the founder being focussed like Jimmy Spithill, and determined not to lose.

Summary The Emirates Team New Zealand was the most professional and organised team I can ever recall seeing, working with limited resources and huge determination to try and take the America’s Cup back to Auckland. I think many franchise systems would really benefit to look at what had been achieved in a short time on the absolute edge of technology, and ask what they can learn from a group like Emirates Team New Zealand. A pity they just did not win one more race earlier in the series, before Oracle came up to speed. Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a Melbourne based mapping and statistics consultancy, a Certified Management Consultant, and Victorian Chapter President of the Institute of Management Consultants. Spectrum specialises in assisting clients with decisions relating to retail location, using various statistical techniques. Phone: 03 9882 6488 Email: peterb@spectrumanalysis.com.au

Business Franchise Australia and New Zealand 23


e x pert adv ice

The 7 essential elements of

in a successful franchise relationship Couples celebrating their golden wedding anniversary (ie. 50 years together) often state that the secret to a long marriage is communication. Most franchise systems have been in existence for much less than 50 years, so it is unlikely that there will be many, if any, franchisees celebrating a union of 50 years with their franchisor. Like marriage, the success of a franchise relationship is often attributed to communication between the parties. The quality, quantity, timeliness, honesty and relevance of the communication in any

relationship will determine how effective communication is as a long-term determinant of franchise success. But communication is a broad term that describes many interactions at different stages of any kind of relationship. Communication is expected to be a two-way street, but can often encounter blockages and detours which limit its ability to maintain a relationship. So here’s an alternative way to look at successful franchise relationships (and marriages): They are based on mutual respect, and it is this respect that maintains the effectiveness of communication. Respect is an interesting concept for humans. While we may be prepared to offer a token amount to one another on first contact,

24 Business Franchise Australia and New Zealand

we need to interact over time to give (and receive) more. Using respect as an analogy to understand the effectiveness of communication during a franchise relationship requires a better understanding of the stages of the relationship, and how the relationship matures with each stage. The following acronym for respect can help franchisors and franchisees better understand how respect evolves – and how it impacts communication effectiveness – over the course of a franchise relationship.

RESPECT = Recruit + Educate + Support + Profit + Engage + Challenge + Together. These are explained as follows:


“Respect is an interesting concept for humans. While we may be prepared to offer a token amount to one another on first contact, we need to interact over time to give (and receive) more.” Jason Gehrke, Director, Franchise Advisory Centre.

R

ecruit

The early courtship phase, where the franchisor and franchisee are sizing-up one another, is the Recruit phase. Franchisees wield significant influence during this phase based on the significant resources franchisors invest to attract them. Penalties for misleading representations may encourage franchisors to provide the bare minimum of information about their franchise offer, while potential franchisees are often surprised at the amount of information they must provide about themselves in order to be assessed by the franchisor. Lasting first impressions that determine the future course of the relationship are made during this phase.

E

ducate

If the franchisee and franchisor decide to proceed together, the franchisee needs to be trained in the operational details of the franchise. During this education phase, the franchisee learns “how to run the business”, but should also learn “why it is done this way” and how this links with the organisation’s culture. The education phase should involve constant assessment of franchisee learning so that the franchisee is fully-equipped to tackle the challenges of operating their own business. Equally, this phase provides feedback to the franchisor about the adequacy of its training program and the effectiveness of its delivery.

S

upport

After a franchisee has joined a system and been educated in its effective operation, the franchisor will usually provide support to help the franchisee maximise operational efficiency and to improve overall business performance. Support in franchising can vary greatly from one system to another, and is often not quantified by either franchisor or franchisee. The level of support a franchisee expects can be completely unrelated to the franchisor’s capacity or skill in delivering it. While the Recruit and Educate phases are still the honeymoon period of the relationship, they can lead to problems in the Support and later phases, as franchisees potentially find themselves unsuited to operate the business because of attributes that should have been identified during recruitment, or as a result of failures in the training and induction program.

P

rofit

Of all the reasons commonly stated by franchisees for joining a franchise, making profits rarely appears at the top of the list. Likewise, franchisors commence franchising for many reasons, but not primarily to make profits for their franchisees. As the franchise relationship develops, franchisors and franchisees alike must address profit issues. Not enough profit for franchisees makes the relationship unsustainable. Too much profit by franchisors creates tension with franchisees,

especially if they are struggling to be profitable themselves, or are not receiving the levels of support they expected. A franchise relationship is doomed to failure if profit isn’t part of the equation.

E

ngage

A key element of any mutually respectful relationship is the extent to which the parties engage with one another, particularly when making decisions that affect each other’s interests. Franchisors are expected to have management protocols in place that seek the active engagement of franchisees via meetings, conferences, surveys and franchise advisory councils, among others. Similarly, if franchisees are to get the most out of the franchise relationship, they should seek to engage with the franchisor via existing methods, or identify room for improvement and actively suggest these to the franchisor. When both parties engage with each other, they can better understand each other’s goals and how they can help one another achieve them.

C

hallenge

An extension of the concept of engagement is that of challenging one another to higher levels of performance. Without even being conscious of it, franchisees will challenge franchisors to achieve higher levels of performance right from the outset as they explore the system

Business Franchise Australia and New Zealand 25


e x pert adv ice

and test the boundaries of the education and

support available to them, especially if profits fail to meet their needs or expectations. Franchisors may also unconsciously

challenge franchisees by introducing changes to the system without adequate explanation, or by conducting ineffective marketing campaigns.

Neither of these are the types of proactive

challenges that help a franchise relationship grow.

The most effective challenges in franchise

relationships are where the parties recognise

there is room for improvement, and positively encourage one another to reach higher levels

of performance. Such challenges come from high levels of engagement, and all the other elements of respect listed here.

T

ogether

Ultimately, franchisors and franchisees need one another. Despite the occasional bump in the road in a franchise relationship, franchisees can rarely do what they do without franchisors, and franchisors would never achieve the growth and market presence they have without franchisees. Acknowledging this partnership (however difficult this journey can sometimes be) is the final element that contributes to the giving and receiving of respect in a franchise relationship. The mutual respect of a healthy franchise relationship creates an understanding of each party’s perspectives, and their relative needs and wants. It creates two-way communication where the parties are heard and understood. But most importantly, it creates the basis on

26 Business Franchise Australia and New Zealand

which a relationship can prosper and endure for a long time, just like those old married couples who celebrate golden wedding anniversaries. Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for 20 years at franchisee, franchisor and advisor level. He advises both potential and existing franchisors and franchisees, and conducts franchise education programs throughout Australia, and publishes Franchise News & Events, a fortnightly email news bulletin on franchising issues and trends. Contact Jason at: Phone: 07 3716 0400 Email: jason@franchiseadvice.com.au Web: www.franchiseadvice.com.au


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The Australian Drug Detection Agency wants highly motivated and independent people to join the team, as either Master or Regional Franchisees. The is aDrug proven business model provide financial rewards for those who TheADDA Australian Detection Agency wants that highlywill motivated andexcellent independent people to join The Australian Drug Detection Agency wants highly motivated and independent people to join team, as either Master or Regional arethe prepared to work hard and fit Franchisees. the criteria. the team, as either Master or Regional Franchisees. TheisADDA is a opportunity proven businessfor model that will provide excellent financialwho rewards forserved, those or are currently in This a huge business-orientated individuals have Thewho ADDA isprepared a proventobusiness model that willcriteria. provide excellent financial rewards for those are work hard and fit the law the hard emergency who enforcement, are prepared to work and fit theservices criteria. or the armed forces, to get in at the ground level and grow own enterprise. This their is a huge opportunity for business-orientated individuals who have served, or are currently Thisinislaw a huge opportunity business-orientated individuals who have or are currently enforcement, the for emergency services or the armed forces, to getserved, in at the ground level Are you ready to join our experienced group and secure a lucrative future? in law enforcement, the emergency services or the armed forces, to get in at the ground level and grow their own enterprise. and grow their Our guess is own Yes,enterprise. you are! Are you ready to join our experienced group and secure a lucrative future? AreFranchises you ready to join our experienced group and secure a lucrative future? selling fast Our guess is Yes, you are! Email: kirk.hardy@tadda.com.au sold QLD/NSW/VIC OurMasters guess is Yes, youinare! Website: www.tadda.com.au franchises still Email: kirk.hardy@tadda.com.au sSub Franchises selling fastavailable in all States. Email: kirk.hardy@tadda.com.au s Franchises selling fast s Masters sold in QLD/NSW/VIC Website: www.tadda.com.au s Masters sold in QLD/NSW/VIC Website: www.tadda.com.au

• • •

Business Franchise Australia and New Zealand 27


focus : soci a l med i a busi ness bo ost ers

DELIVERING THE NEXT BIG THING! Not that long ago every business had to be convinced why they should include one dollar of Social Media in the marketing budget. Even more recently businesses continue to struggle with an inadequate and un-measured social presence – but there are also thousands of success stories. So what happened? Sitting in the Head Office, the founder of the international network welcomes any and all questions about the development of a unique franchise. Collins is upfront about the industry and the current state of play in the social space.

A network of franchisees and Master franchisees around the country, international expansion in progress, a growing list of clients, and strategic planning to be the standard, and authority in a booming industry. Apparently, Max Collins has something to get of his chest.

28 Business Franchise Australia and New Zealand

A few years ago business and Social Media were worlds apart with little understanding of how one impacted the other. Where do you fit in? We stuck to our belief and passion for a growth product we knew could help a lot of people and businesses. It’s thrilling to think how far my team and I have come in less than two short years. Today we are the ‘go to’ social marketer simply because we offer organisation, structure, national representation and well proven results. And when you launched in 2011 it was still in the relatively early days of social media and business?


When we launched, social media was a new business tool. Today, it is a critical channel for businesses seeking to engage customers and stakeholders. We see the results daily. Let’s discuss your growth model. Is SMBB about growing outwards and upwards? Every new franchisee allows us to extend the model and services we provide for social media management, social marketing, social customer service, social training and selling. It will also allow us to significantly expand, while continuing to innovate the services our clients use and trust. As the marketing world moves from paying its way - to earning its way, my dynamic franchisee team at Social Media Business Boosters is acutely aware that the brands that will thrive and survive are those with executives who understand the incredible opportunity new media offers them and commit to excellence in managing their social presence. You mention ‘opportunity’ but surely the pace of change in the Social Media space can be challenging for anyone, not least your network? No, it’s a fantastic opportunity! It’s the way our world is moving and I am still stunned and surprised when I talk to senior people in blue chip organisations who say ‘I still don’t really get social media but we have allocated a significant budget for it’. In the same breath they say ‘we want you to get started with our work because we know we have to be there’!

Right Product, Right Place, Right Time is the advice from the experts if you are looking to become a social media marketing specialist with the world’s leading social media marketing franchise company.”

carried out in all multimedia channels – written, visual, video etcetera. A number of newer franchisees are extremely commercially savvy they have recognised and seized the training and up-skilling we deliver and are on their way to building big businesses. Where do your clients come from? Anywhere! I mean to say I am continually amazed. They can be the musician next door who wants a social presence, or a corporation with regional offices in many overseas territories. We have an eclectic mix of clients from all over the world. Your franchisees cover a little bit of everything and are focussed on specialties. So geographically this isn’t an issue? In the main Australian franchisees work with local clients. The brand also excels by delivering for national customers. We are able to provide true local representation Australia wide. What do you mean by ‘local representation’?

And what is the typical qualification process for anyone looking for a business in which to invest?

A most recent example is 2013 Federal Election campaign. We provided Social Media Services for a major political party. Franchisees were on hand to work with candidates at the local level. A city based office can’t talk local issues like a local! Another is a national financial services professional. Consider our franchisees as the local voice for its agents around the land we position them locally as the ‘go to expert’.

Our qualification criteria is becoming more selective as we grow. It needs to. Effervescent people skills are paramount in social media. Not only does personality shine through when working with clients it is also reflected in all elements social work

A near perfect customer retention rate, and great business return on social media effort, very high average monthly net profits and super successful quotation to client acceptance ratio exudes the message that we are doing things right.

Tell me what your franchisees do? Social Media Business Booster franchisees provide Social Media, Public Relations, Digital Training and a range of online marketing services for a wide variety of clients.

You’ve touched on ‘Return On Investment’ and it seems that some businesses are wary of where the ROI comes from. How do you approach this? Don’t you mean extra profit for return on investment? For the business owner measured profit dollars are generally the first thing in their minds but they also understand that nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best paid broadcast message or advertisement. As Facebook’s, Mark Zuckerberg says,“ a trusted referral is the Holy Grail of advertising”. For a not-for-profit client the objective can be measured very differently. Social Media has the ability to provide a broad range of solutions dependent upon what is required. We listen to the customer and act according to need, to put it simply results are sometimes delivered in 10 or 20 different ways. It’s a fascinating new shift and I think it’s an attraction to those seeking a business opportunity with a difference. Tell me about your types of clients? In a word diverse! A misconception is that we only work with business clients. We also do work for Federal, State and Local government, plus the many different departments. The range of tasks is vast covering crowd engagement for anything from road closures to economic data. Clients may be sporting bodies, athletes, entertainers, events, charities, wineries, and more. As we say, “getting the work is the easy part”. A piece from Peter Switzer earlier this year mentioned “fishing where the fish are”. So if your customers are on Twitter, Facebook, LinkedIn and other platforms your

Business Franchise Australia and New Zealand 29


focus : soci a l med i a busi ness bo ost ers

A group of Sydney franchisees at work!

business needs to be there too. What’s your take on this? I agree and I’d add to this by saying that switched on sales staff are now using Social Media to monitor potential clients or competitors to gather intelligence, network and more. It is providing a competitive edge. In a recent study by researcher Aberdeen Group it was found that sales people using this knowledge out performed peers by a whopping 73 per cent. We haven’t spoken about training yet. Obviously you shouldn’t be a social media guru from day one. How do you train Franchisees? We run induction and training programs at our head office training facility. Our accredited program covers many modules, from technical to customer care, and is delivered by certified trainers. What happens in the training room is only the start, ongoing training is paramount we update franchisees by buddying, webinars, breakfast meetings, forums and such, which are the norm. Can you identify for me some strengths

and weaknesses you have been challenged with as the first Social Media Franchise to hit the market? We are a leader in what can sometimes be considered a disorganised industry. There are thousands of independent social media managers. Many are self-taught and operating their own social agencies. It can be difficult to position yourself as the standards setter, but I feel that is increasingly the perception. A good analogy is when websites became a ‘must have’. There were people rushing around offering to build a site for the sake of having one in most cases without considering the purpose. The SMBB franchise brand is international, professional, structured, reputable and a proven leader. I’m not surprised some are possibly trying to emulate what we do! Are there any other weaknesses for your competitors or any one for that matter to exploit? Demand is dictating that we gain more franchisees to allow us to provide Social Media Services for our Australian and

30 Business Franchise Australia and New Zealand

International multi outlet clients; this is a current weakness we must overcome. The SMBB mantra is to empower its franchisees to reach new markets for clients using social media – to help them connect, inform, and manage reputation like never before. This growth gives us additional resources to expand quickly and strategically deliver our vision around the world. The franchise is seeking franchisees to build the brand and continue to deliver. If you are a lover of all things social and ready to build a new career in your own business, surprise yourself! Call the franchisor Max Collins: Office 1300 298 898 Mobile 0433 229 900 Facebook.com/ SocialMediaBusinessBoosters connect@smbboost.com http://Welcome. SocialMediaBusinessBoosters.Co


Business Franchise Australia and New Zealand 31


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

Another successful year for NFIB said NFIB Executive Director Darryl Morris. “And our recent nomination for the Telstra Small Business Awards really is the icing on the cake.” For those of you not familiar with NFIB, they offer a web-based insurance platform that has been designed exclusively for all kinds of franchised businesses around Australia. What’s central to NFIB’s success is two-fold: inexpensive insurance premiums regardless of the franchised business being insured, and the ease at which a franchise business can insure their business.

NFIB Executive Director Darryl Morris

Having recently been announced as a finalist in the Telstra Small Business Awards and after another year attracting more and more of Australia’s best known franchise businesses, National Franchise Insurance Brokers (NFIB) is fast becoming an insurance force to be reckoned with. “Our goal has always been to penetrate the market with the most competitive insurance premiums for franchised businesses, and that goal is now beginning to be realised,”

“Four clicks of a computer mouse to get a franchised business covered is what we’ve always promised,” said Mr Morris. “And that’s precisely what we’ve delivered.” What makes insuring with NFIB so easy is the fact that the product is designed to meet franchisor compliance requirements, is simple to arrange and very competitively priced. An added benefit to the franchisor is that they are able to monitor the programme performance via custom dashboards. The management of certificates of currency for Landlords and Managing Agents is also fully automated. Plus, there isn’t any paperwork or forms for the franchisee to complete, all information is collected on the web portal and there are no signatures required. It really is quite a simple and ingenious process. “We spend a great deal of time and effort travelling around the country speaking to both franchisees and franchisors and their feedback is extremely positive,” said Mr Morris. “Our online system allows the franchisor to make sure that all of their individual franchisee’s businesses

32 Business Franchise Australia and New Zealand

have adequate insurance cover. From the franchisee’s perspective, our ability to ‘bulk buy’ insurance cover means their costs are significantly reduced when compared to what they may have paid for insurance in the past.” The NFIB business model has been so successful that the group has now ventured abroad with the recent launch of Worldwide Franchise Insurance Brokers or WFIB. “We are currently in discussion with insurance brokers in a range of different locations including Central Europe, United Kingdom, USA and New Zealand,” Mr Morris said. “It goes without saying that the number of franchised businesses in these regions is significant so we’re very excited about the prospect of launching our online insurance platform globally.” Mr Morris said that he strongly believes that the future of the business lies in his group’s ability to provide the most competitive and simplified solution available. “We all hate getting insurance premium renewals. That’s a fact of life. People want the most adequate cover for the lowest possible price – it’s as simple as that. What we’ve focused on from the beginning and what is still central to everything we do today is to make sure our customers save money on their business insurance” Mr Morris said. For more information about National Franchise Insurance Brokers please contact either Darryl Morris or Brad Dixon. Phone: 1800 776 747 Email: info@MYNFIB.com.au Web: www.MYNFIB.com.au


I WILL NEVER COMPLAIN ABOUT THE COST OF MY FRANCHISED BUSINESS INSURANCE AGAIN. I WILL NEVER COMPLAIN ABOUT THE COST OF MY FRANCHISED BUSINESS INSURANCE AGA Across Australia, we helping franchised business owners save money on their insurance. Today is the day to ask yourself why you’re not with NFIB. �anks to our highly simplified online system together with our reduced premiums, we are fast becoming the preferred insurance provider for Australian franchised businesses.

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

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

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Business Franchise Australia and New Zealand 33


e x pert adv ice

“Around half of the franchisees surveyed relied heavily on their gut feeling when deciding to invest in a franchise.” Dr Michael Schaper, Deputy Chairman, ACCC.

Are your expectations realistic? A new report from Griffith University found franchisees who take part in pre-entry education have higher levels of satisfaction. Why? Because their expectations are more realistic. In 2010 the Australian government funded research designed to get a better understanding of franchisor-franchisee conflicts. There are no prizes for guessing that a lack of communication was identified as a major cause of friction. The survey found that about a third of franchisees indicated communication within their franchising relationship was unsatisfactory. Dig deeper and the survey revealed some

disturbing trends. It found that around half of the franchisees surveyed relied heavily on their gut feeling when deciding to invest in a franchise. What’s more, despite an obligation for franchisors to provide accurate disclosure documents, around 40 per cent of franchisees said they faced surprises after buying their franchise. The findings proved to be a catalyst for the development of a pre-entry franchise education program by the ACCC and Griffith University’s Asia-Pacific Centre for Franchising Excellence. It is a convenient, free, online course that aims to go beyond the text book, and provides practical advice and tips for would-be franchisees. It is designed to assist prospective franchisees make informed investment decisions, help them understand the demands of franchising, and know where to go if things turn sour. From a regulator’s perspective it makes sense to prevent problems escalating to

34 Business Franchise Australia and New Zealand

the point where a complaint is lodged. By lifting the lid on the commitment and compromises involved in running a franchise and providing people with the know-how to assess franchise business opportunities, some problems can be addressed before they surface. From a would-be franchisees perspective it also makes perfect business sense. Investment decisions should be based on more than just a hunch— due diligence is a must. Due diligence simply means making sure you know all that is necessary to make an informed decision about the business you’re investing in, and are able to confirm what you’ve been told by the franchisor. To avoid problems down the track it also pays to understand the Franchising Code of Conduct. This mandatory industry code sets out the legal rights and obligations of all participants in the franchising industry, and assists you in making reasonable and


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informed decisions about purchasing a franchise.

• How many hours do you work?

and the questions to ask.

The Code provides you with certain protections during the term of your franchise and includes dispute resolution procedures. The Code also places obligations on your franchisor that impacts on the ways in which they can end your franchise agreement, and provides you with rights in instances where you choose to leave the franchise system.

• Are you earning what you expected? • Have you had any disputes with the franchisor and if so, were they resolved?

Are you considering investing in a franchise? If so, sign up to the free pre-entry franchise education program at www.franchise.edu.au/ pre-entry-franchise-education.html.

Three years and half have now passed since the pre-entry program was launched, and around 5,000 people have enrolled. This benchmark has been a good time to take a step back and see if the program has been delivering its hoped-for benefits. Griffith University conducted research to compare the experiences and decisionmaking processes of those who completed the pre-entry education program with those who didn’t. The results? The research report, released in August, concluded that prospective franchisees who completed the pre-entry franchise education program were more confident and made more informed decisions. Another key finding was that participants in the pre-entry program had more realistic expectations of franchising performance, which in turn meant that they had higher levels of satisfaction with their franchise system. The report also found that franchisees that completed the training had a broader appreciation of the influencing factors (both internal and external) on their franchise. The majority of participants indicated that completing the program had either reinforced their decision to invest in a franchise system or gave them a greater level of confidence and awareness about investing. When asked to reflect on their experiences and provide advice to other prospective franchisees, it was interesting to see that the most common response was to ‘do your homework’ and to ‘obtain independent advice’. As this study indicates, prospective franchisees should contact as many current and past franchisees as possible to ask them a range of questions. This provides the best opportunity to get information from people with experience in the franchise business. A few practical questions to ask current and past franchisees include:

• What training and support have you received? • If you could go back in time, would you invest in this franchise again? It is also important to talk to professional advisors such as solicitors, financial advisers and accountants (preferably ones with franchising expertise), as they can provide valuable assistance. For example, they can guide you through the finer points of contracts or the complexities of franchise finances. In conducting the research Griffith University encouraged participants to tell their ‘stories’ and to reflect about their encounters with franchising. This section of the report offers some great insights for prospective franchisees. One participant said: “Study the franchise agreement carefully. There’s a lot of info but you have to know it. You need to know how easy or difficult it is to get out.” This advice is consistent with the ACCC views. Franchisors are required to provide prospective franchisees with current information about the franchise operation in writing – this is known as a ‘disclosure document’. The disclosure document includes financial information and details such as whether you will have an exclusive territory and what will happen when your agreement comes to an end. You must be provided with the disclosure document, along with a copy of the franchise agreement (in its final form) and a copy of the code, at least 14 days before signing an agreement or handing over a non-refundable payment. Your franchise agreement is a contract between you and your franchisor. Once you sign the agreement, you will be legally bound to its terms and conditions so it’s important that you read the agreement carefully and ensure you understand the legal effect of what you are agreeing to. Another comment from a franchisee in the recent report sums it all up pretty well: “Go in with your eyes wide open and ask a lot of questions.” To help you get started, the ACCC / Griffith University pre-entry program gives you the clues on where to look

36 Business Franchise Australia and New Zealand

The Griffith University’s Preparation for Franchising study is available at:www. franchise.edu.au/preparation-for-franchisingresearch.html The ACCC has also produced several franchising publications containing useful information for prospective franchisees, including a Franchisee Manual and a DVD about the Franchising Code. These are available online at www.accc.gov.au/ franchising or by calling the ACCC’s Small Business Helpline on 1300 302 021. Dr Michael Schaper is Deputy Chairman of the Australian Competition and Consumer Commission.

Topics covered in the free ACCC/Griffith University pre-entry program include: • An overview of franchising sector and the Franchising Code of Conduct • Franchise disclosure, agreements, royalties and finance • Franchise support services, site and territory selection, retail leasing and franchise marketing funds • Franchising intellectual property, the operations manual, franchisor-franchisee relationships and dispute resolution • Questions to ask franchisors and existing and former franchisees, additional due diligence, useful business skills and assessing suitability to become a franchisee.


Franchise BUSINESS

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l ega l adv ice

Review of the Franchising Code of Conduct

what it means for Franchisees Earlier this year, the Australian Government appointed franchise industry expert, Mr Alan Wein, to conduct a review of the Australian Franchising Code of Conduct (“the Code”) and report back with recommendations for improvement. On 24 July 2013, the Government released its response to Mr Wein’s report, adopting most of Mr Wein’s 18 recommendations at least in principle. Whilst the franchising sector now waits for the Government to reveal exactly how, and when, these changes will be implemented, it is worth considering how the changes are likely to impact franchisees. Following is a summary of the accepted Code reforms and what franchisees can expect from each change.

1. Notice of End of Term Arrangements to include reminder of franchisee’s entitlement to request current disclosure:

38 Business Franchise Australia and New Zealand

In accordance with clause 20A of the Code, franchisees should receive


“Whilst the franchising sector now waits for the Government to reveal exactly how, and when, these changes will be implemented, it is worth considering how the changes are likely to impact franchisees.” Esther Gutnick, Senior Associate, Mason Sier Turnbull.

notice from the franchisor, at least 6 months before the end of the term of the franchise agreement, of the franchisor’s decision to renew the franchise agreement or enter into a new franchise agreement or neither. The Code is to be amended so that, when franchisees receive such notice, they will also be reminded of their right (under clause 19 of the Code) to request a copy of the franchisor’s current disclosure document, provided they have not already made such request in the previous 12 months.

will be removed on the basis that it is not used in the industry. Accordingly, franchisees purchasing franchised businesses with a lower expected turnover will still receive a “long form” disclosure document in accordance with Annexure 1.

5. Risk Statement to be provided:

2. Alternate disclosure requirements for foreign and master franchisors:

Franchisees appointed by a master or foreign franchisor can expect to receive an alternative, short-form disclosure document, rather than a disclosure document in the form set out at Annexure 1 of the Code. The content of such short-form disclosure document is still to be determined by the Government in consultation with franchising sector participants. Also, foreign and master franchisors will be exempt from the obligation to annually update disclosure documents.

Franchisees can expect to be provided with additional disclosure of the respective rights of the franchisee and the franchisor to conduct and benefit from online sales, and disclosure of the franchisor’s intention or ability to conduct online sales.

4. Removal of Annexure 2:

Annexure 2 of the Code, containing a short form of disclosure document for franchised businesses with an expected annual turnover of less than $50,000

New franchisees (not those renewing or extending or extending the scope of an existing franchise agreement) will receive, at an early stage in their dealings with the franchisor, a risk statement alerting the franchisee to relevant matters, such as:

• that the franchise fee be notionally apportioned over the term of the franchise so that the pro-rated amount relating to any unexpired portion of the term becomes a debt owed by the franchisor to the franchisee if the franchise agreement ends due to the franchisor’s insolvency.

• the need to consider whether the franchise system is a good fit; • the importance of obtaining professional advice from an advisor with expertise in franchising; • the need to research the franchise system, including speaking with current and past franchisees, and to carefully review the disclosure documents;

• the risks of franchising generally and the need to consider any risks specific to the franchise system; and • what a prospective franchisee should consider before deciding to enter into a franchise agreement.

6. Rights in Insolvency

Depending on how these changes are implemented, franchisees will likely have the right to terminate their franchise agreement and seek to recover a proportion of any franchise fee paid if the franchisor fails.

7. Removal of requirement to disclose “Unforeseen capital expenditure”:

• the potential that the franchisee may incur unforeseen significant expenditure;

3. Online Sales disclosure:

both franchisors and franchisees to terminate the franchise agreement if the other party enters into administration and the administrator fails to turn the business around or procure a buyer for the franchise system within a reasonable time (Mr Wein suggested 60 days); and

Item 13A (which was introduced as part of the July 2010 Code changes) will be removed. Franchisees will therefore no longer receive disclosure of whether the franchisor will require them to undertake unforeseen significant capital expenditure that was not disclosed before the franchise agreement was entered into. However, franchisees will receive a list of common examples of potential unforeseen capital expenses in the generic risk statement (see paragraph 5 above), and franchisors will be obliged to demonstrate that any significant capital expenditure required is reasonable when it was not initially disclosed.

The Government has accepted in principle, but intends to further consult with the franchising industry and relevant experts regarding the implications of, the following recommendations:

8. Regulation of Marketing Fund:

• that the Code include a right for

The Code will be amended to make the

Business Franchise Australia and New Zealand 39


l ega l adv ice

administration of marketing and other cooperative funds more transparent and ensure that monies are spent on legitimate expenses related to marketing and advertising the franchise system. Also, franchisees will now be permitted to vote each year as to whether an audit of the marketing fund is required (rather than having prior votes remain in force for 3 years).

9. Good Faith Obligation:

As a result of the introduction of an express obligation, both franchisees and franchisors will have a legislative duty to act in good faith towards each other in connection with the franchise agreement. All parties can expect the Government and the ACCC to provide guidance and education regarding the application of this duty.

10. Request for non-disclosure of franchisee’s details:

It will be up to franchisees to initiate any request under Item 6.6 that its details not be disclosed in the franchisor’s disclosure document, and franchisors will no longer be able to prompt such request.

11. Franchisor’s consent to transfer or novation of franchise:

14. Dispute Resolution Costs:

Franchisees may no longer be bound by any restraints of trade in specific circumstances where the franchisee wishes to renew the franchise agreement and is not in breach of its terms, but the franchisor does not renew or extend the franchise and the agreement does not grant the franchisee any right of compensation in the event of nonrenewal.

Changes to the Competition and Consumer Act 2010 will grant the ACCC greater powers to enforce compliance with the Code and penalise breaches. Such powers will include wider audit rights and the issuing of fines. Courts may also be allowed to ban persons from being involved in the franchising sector.

16. Motor Vehicle Dealerships:

The Government will consult relevant stakeholders regarding an analysis of standard contract terms for automotive dealerships prior to any further review of the Code.

17. No further Code review for five years:

13. Dispute Resolution Conduct:

Franchisors will no longer be able to oblige franchisees to pay their legal costs of dispute resolution unless a court so orders, and franchisees will have the right to ensure any dispute is heard by an appropriate forum (e.g. a court in the jurisdiction where the franchisee’s business is located).

15. Enforcement:

Amendments to clause 20(4) will mean that franchisees must take all reasonable steps to provide information required by the franchise agreement to enable the franchisor to consider granting its consent to a proposed transfer of the franchise.

12. Restraints:

clause 29(8) during any mediation or dispute resolution process, whether pursuant to the Code or otherwise.

Franchisees (and franchisors) will be expected to display the appropriate reconciliatory behaviours set out in

40 Business Franchise Australia and New Zealand

Franchisees will have the certainty and comfort of knowing that the Government will not review the Code again for some time. Mr Wein recommended that any further review of the Code should not take place for at

least another five years after this review process is completed and any adopted legislative changes are implemented.

18. Clarify Policy Intent of Code:

Franchisees and franchisors alike, and advisors to the sector, will benefit from the Code being amended to clarify the policy intent of its provisions, remove ambiguities and improve consistency within industry practice.

This review is likely to result in the most significant overhaul of the Code since its enactment in 1998. Overall, the recommended changes are intended to improve the regulation of franchising in Australia and the quality of information provided to franchisees. Whether these aims are achieved will largely depend on the clarity and precision of the drafting of any changes to the Code. The Government has indicated that it is committed to implementing the reforms “as soon as feasible”, and so the industry is currently awaiting the next step, which will involve the Government’s preparation of a regulation impact statement and then introducing the amending bill to Parliament. Esther is a Senior Associate at Mason Sier Turnbull, a law firm renowned for its franchising expertise. Located in Melbourne’s industry heartland, Mason Sier Turnbull has strong commercial law skills and provides clients with sensible solutions. For more information contact Esther at: Phone: 03 8540 0200 Email: esther.gutnick@mst.com.au Web: www.mst.com.au


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Restraints of Trade in Franchise Agreements A common mistake people make when entering into a franchise agreement is to only focus on the matters that affect them at the time of purchase. In particular, they look at things like the cost of the franchise and what they will receive for the franchise fee, the ongoing payments due under the franchise agreement, and what they need to do to set up their business. It can be a frenetic time where there is a need to find, lease and fit out premises, employ staff and do everything else that needs to be completed to open in short order. However, due to the distractions immediately in front of them and the excitement of owning their own business, many people forget to pay attention to what happens when

a franchise ends. This is human nature and quite understandable but it is certainly not the wise course of action. Time needs to be spent looking at how a franchise might come to an end (whether it is through the expiry of time, the sale of the business or termination by either the franchisor or the franchisee) and the impact that this will have on the franchisee after the franchise has ended. Franchise agreements tend to have very specific provisions that detail what brings about a right to end the agreement and what a franchisee must do at that time. There are obligations on the franchisee to hand over client lists, business contact details and all of the franchisor’s intellectual property. An exiting franchisee must be seen to not inhibit or detrimentally act to affect the goodwill of the franchisor and its brand. Invariably too, there are obligations on the franchisee not to do certain things. In particular, there is normally an obligation on a franchisee to not compete with the business they have

42 Business Franchise Australia and New Zealand

exited. In many franchise systems this obligation goes even further so that there is an obligation not to compete with any other franchise in the franchise system, no matter where it is located. This can have far reaching consequences for someone who is trained in a specific line of work. It can mean that after they exit a franchise they find that there are limited opportunities for them to work. This is especially the case where their franchisor has a mature system with franchises geographically spread far and wide. Some former franchisees may choose to ‘run the gauntlet’ and start to work or trade in breach of their restraint of trade obligations in the hope that they would be deemed unenforceable or that the franchisor will not find out or, if they do, that they won’t take action. However, there have recently been a couple of high-profile court cases in New Zealand dealing with just this issue. It would be fair


“An exiting franchisee must be seen to not inhibit or detrimentally act to affect the goodwill of the franchisor and its brand.” Mark Sherry, Partner, Harmans Lawyers New Zealand.

to say that neither ended particularly well for the franchisee. The first case involved a gym franchise in Auckland. It involved a franchisee of the Club Physical franchise system electing to leave the system and rebrand their fitness clubs, and operate them under a new brand name, Jolt Fitness. When the franchisor took action to stop this, the franchisee made all sorts of allegations against the franchisor, insinuating, amongst other things, that it did not receive proper support from franchisor and, therefore, it had no choice but to leave the system to keep its business viable. The courts found this hard to fathom, given that the franchisee had actually started with one franchise and then purchased another two franchise outlets over time as they were offered for sale on the open market. The judge pointed out that it was illogical for someone to keep purchasing something they felt was not being run in a proper way. The judge further concluded that it would be extremely difficult for the franchise system to try and break back into the territories again by starting afresh when the existing Jolt Fitness clubs were operating. The operator of Jolt Fitness saw the writing on the wall, in that they had breached their restraint of trade obligations in the franchise agreement, so they entered into an agreement with the franchisor to allow Club Physical to take the sites back over, purchase the gym equipment and take over the staff. The gyms were then rebranded back to Club Physical gyms. The other case which has recently been in court is one involving the franchise system Safe Kids in Daily Supervision (‘SKIDS’). In that case, a master franchisee simply decided not to renew her franchise agreement, and instead set up in competition with the SKIDS franchise system. She had spent a considerable period of time in the

system, and had taken what she had learnt out into the market place in opposition to it. Not surprisingly, SKIDS were not particularly happy with this, and went to the courts for relief. Initially, in the High Court, the judge found that the restraint of trade provisions in the franchise agreement were not enforceable because the franchise business was not particularly complex. This decision created some consternation in the franchise community as it potentially opened the door for the confidential information and systems of franchisors to be abused on a wide scale. However, SKIDS appealed this decision, and in the Court of Appeal the High Court’s decision was overturned. It was found that franchisors were entitled to protect their businesses from exploitation. Whilst the system of childcare was not particularly complex, it was found that the former franchisee had breached her obligation to protect confidential information and she had misused some of the documents that had been provided during the existence of the master franchise agreement. In fact, the Court of Appeal found that the former franchisee had flagrantly breached her obligations. She had denied under oath that she had copied confidential information and as a result she exposed herself to a significant award for damages too. The message to take from these two cases is that when entering into a franchise agreement, a franchisee needs to do so with an open mind and only after considering all issues, including having an appropriate exit right strategy right from the start. If by entering into a franchise system there is a chance the franchisee will be restricted in the future from operating or trading in the industry that they have training, qualifications and experience in, because of

the provisions of the franchise agreement they are entering into, then they will need to give serious consideration as to whether the restriction at the end is worthwhile. If they are restricted from competing against the franchisor after leaving the franchise system, whether in the specific territory that they have operated in or in all territories that the franchisor has franchises operations in, that can mean significant upheavals for the franchisee and their family, especially if they have limited work opportunities and need to relocate to avoid the scope of the restraint provisions. It is imperative that appropriate legal advice is taken when a person is considering entering into a franchise, because the restraints on trade can be one of the hidden barbs that can catch them down the track. It is too late to try and deal with the issue after the fact, and taking appropriate advice from a franchise knowledgeable lawyer at the outset is the ideal solution. That way the transaction can be entered into with full knowledge of the implications. Mark Sherry, LLB (Hons), BCom, is a Partner with Harmans Lawyers New Zealand. He leads the commercial and property team, specialising in franchising, hospitality, rural law, property matters and asset protection. Harmans is a full service legal firm providing excellent service and advice, allowing Harmans to develop long-term, solid relationships with their clients. For more information please contact Mark Sherry at: Phone: 03 352 2293 Mobile: 021 524 890 Email: mark.sherry@harmans.co.nz Web: www.harmans.co.nz

Business Franchise Australia and New Zealand 43


LEA

Spotlight on Service : ewor ks

eWorks’ SOLUTION FOR FRANCHISORS CLOUD BASED e-LEARNING In a franchise business model, staff training underpins an effective franchise system. This is where eWorks’ cloudbased solution offers many benefits. eWorks have been refining their e-learning offering since 1998 and provide the perfect blend of cost-effective, tailored solutions that directly fulfils the unique training needs of franchisors. One of their signature services, ‘TrainingVC’, is a cloud-based e-learning solution which is currently used by over 180 organisations to deliver reliable and cost-effective online training to any location across Australia. Unlike most learning management systems, TrainingVC offers a combination of training delivery and management applications in one, user-friendly online environment which

can be tailored to the needs of a franchisor – a complete e-learning solution. In other words, TrainingVC is a learning management system and content management system, providing the franchisor with a ready-made selection of content and the functionality to update the content in a single location while publishing to multiple locations. This means that franchisors can easliy manage their training materials so that training is consistently delivered regardless of who is taking it and where is happens. Executive Director, Rodney Spark, who with over 25 years of VET sector experience also Chair’s the E-standards for Training Expert Group (EEG) and is the Victorian representative on the VET sector’s Flexible Learning Advisory Group (FLAG), can appreciate firsthand the challenges associated with maintaining competent and well trained staff in a franchise environment. “Because ensuring staff are well trained and competent is important to the franchisor, assessment needs to be really thorough. At eWorks, staff are well assessed so that you can ensure they are competent. We know that badly trained staff reflects in the service and can be detrimental to the brand,” he said. One of the key areas where eWorks differentiates their expertise is in the hosted solution Training VC provides. It offers an alternative to the traditional classroom and in-house models that can be cost prohibitive and difficult logistically. “Franchisors also need good record keeping across the organisation to make sure staff are being properly trained. eWorks’ system provides an overview and record of each staff members’ development,” Rodney said. With such a tailored solution on offer, franchisors may consider such a solution to be expensive. Rodney is quick to point

44 Business Franchise Australia and New Zealand

out, “e-learning reduces the cost burden, so that not only are the costs predictable, it also eliminates the financial burden of travelling and accommodation, and it can be available on demand where candidates are geographically spread.” The platform interface can be branded with the franchisor’s corporate identity, appearing to the end user as an internal e-learning system, even though it is hosted in the ‘cloud’. “Ensuring that franchisee’s maintain a high level of workplace training for their staff is one of the leading challenges franchisor’s face in ensuring a high quality of service, that also aligns with their brand. This is where eWorks excel and can offer a service completely tailored and designed for the franchisor where members requiring training can be located in disparate regions and time zones,” he said.

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

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

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

HAND CARWASH

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

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

Capital required - 70K+Australia and New Zealand Capital Required - 250K 46 Business Franchise Number of outlets - 4 Opportunities available - nationally

Number of outlets - 100+ internationally Opportunities available - nationally

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

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

WW PHO


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

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

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

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

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

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

Connecting people to opportunities Choose from Australia’s best selection WWW.FRANCHISESELECTION.COM.AU Visit www.franchiseselection.com.au or PHONE 1300 FRANCHISE (1300FRANCHISE 372 624) Phone 1300 (1300 372 624) Business Franchise Australia and New Zealand 47

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e x pert a dv ice

Is franchising the right fit for you? 4. Network strength: Sometimes running your own business can seem quite lonely. Being a part of a network enables you to network with people who are in the exact same business. With that network you will find people who have various strengths that can be of assistance.

There have been a number of articles written on franchising over the years, some positive and others negative. With the challenges in retail over the last few years, mainly in the fashion sector, once again people are questioning the merits of being a part of a franchise network. It is undeniable and research has proven that being part of a franchise gives you a greater chance of success than starting your own business, but it does not give you a guaranteed ticket to success, which is where I think some people make the mistake when getting into a franchise business. They look at franchised business and some think, “it will run itself, that is why I am paying a royalty, I will have it as an investment like a property�. This attitude is a fast track to losing the money you have put into the business. Franchising like any other business needs your total focus and commitment to make it work. So why does a franchise give you a better chance of success? There are a number of reasons and these reasons only work for the good, solid franchises.

Below are some positives and negatives of a franchise business and what you should be looking for if you are looking at getting into a franchise business or you have a franchise and want to know how to improve this business: 1. They (the franchisor) should have a proven business model that has proven to be profitable over a long period of time: You need to do an enormous amount of research on the business you are considering and just because it is associated with some sort of business group or council does not mean it is a good business. Many of these groups can be joined by simply paying a fee. 2 Group buying power: Being a part of a franchise means you get buying power that an individual business could not get. This includes everything from raw ingredients as well as media buying power. 3 Branding and marketing: If you are an individual business, the chances are you would not be able to hire a marketing department and if you can, it is highly likely you would not have too much money left over to do any marketing. Again, the dollars that you put into marketing can go significantly further if you are pooling your money.

48 Business Franchise Australia and New Zealand

5. Support from the franchisor: The best franchise businesses will have business consultants who assist you with your business. Their role is twofold - the first is to help you generally in business and keep you up to date with the latest marketing and business initiatives from the franchisor. The second part of their job is to protect the brand for the rest of the network, and this does include ensuring that the business owners are following the systems and marketing initiatives that have been put in place. As a franchisee, you want to make sure that the brand that you have invested in is always represented as you would expect it to. The greatest risk you face is if there are rogue franchisees that do not follow the systems and put the whole network at risk. Joining a franchise is not for everyone, and there are risks in any business that you may need to consider. If you really want to run your own show and not follow a system then it is probably better to follow your own path. The advantages are that you are not paying a royalty and will have more flexibility in how you run a business. But whatever path you take, make sure you always are accountable for your own business. Paying royalties does not mean that it gives you an excuse to blame someone else for your business not going well. The power of success is accountability; success or failure always depends on you, the business person, taking accountability for your business. When choosing a business for you, make sure it is something you love, because you will


“Joining a franchise is not for everyone, and there are risks in any business that you may need to consider.” Janine Allis, Executive Director Retail Zoo.

spend most of your waking day either in it or thinking about it.

Listen to your customers, you may actually learn something We get asked all the time, why is Boost Juice booming and why did the other 36 plus juice bars that started 10 years ago disappear? There is not one answer. However, there is an overall philosophy that we believe gives you a better chance to thrive. It is really simple; find out what your customer wants and give it to them! How hard is that? You know what? It’s a great statement but very few businesses truly subscribe to the theory. We never saw Boost as a money making machine. I didn’t even take a wage for the first few years, I was just so petrified of failing and losing everything. You know the saying, “four out of five businesses fail in the first five years”, and I did not want to be one of them. So, we listened to our customers, we asked them every chance we could. Sure our product was different; but what else did they want that we could give them? These questions, along with a hundred others, we asked ourselves and our customers. It ended up being pretty simple; just a little love and making our customers feel just that little bit better. I wanted our service to be ten times better than any other retailer. Today, with 300 stores around the world and three other brands that we are growing, we do not always get it right. In fact, we have made dozens (if not hundreds) of mistakes, but we continue to attack ourselves and be passionate about achieving the ‘Holy retail grail’ of consistently achieving amazing customer service. So, we asked our customers. We put a sign up in every store asking our customers to email me personally if we did not deliver the product and service that we said we would. We called the customers by their

names not a number, we thanked them for continuing to come back with the 11th one free. We are genuine; we listen to what our customers have to say, we reply within 24 hours of every bit of feedback, we continue to attack ourselves everyday... that’s why we are still here. So in a practical sense for your business, set your standard at a high (achievable) level that you think is right for your business then get angry and fix it when it’s not met. You could be a gun sales rep but if the gateway to your sales is through a receptionist that had a bad weekend and is just grumpy, you are behind the 8-ball before you even start. There are two key points I believe you could take out of this article and put to use today. Firstly, you must have a curious mind and find out what your customers really want. If you don’t really care to find out, then join the majority of people in management positions in companies in Australia today! Fair chance though, since you are still reading this you do care. There will be a number of key reasons in your business why your customers are getting either a great or poor customer experience. Find out quickly what they are and fix them.

Boost store, to leave feeling just a little bit better”. The truth is no matter how good that smoothie is, if the team member on the register is in a narky mood and gives poor service, then that smoothie just won’t taste quite as good as it should. The second critical take out is that you must be a vigorous leader to make sure it’s not just another ‘company value’ that gets stuck in the top draw and forgotten about; the vigour to care, the vigour to put measures in place, the vigour to have the courage to confront and expel poor experiences and banish them from your business. It can’t be that hard right? Well, that great saying comes back again ‘If it was easy, everyone could do it’. You just need to care enough to get it right! The Boost Juice business began with one store in Adelaide and after 13 years of growth has more than 270 stores in Australia, Chile, India, Indonesia, Malaysia, Russia, Singapore, South Africa and the UK. Retail Zoo is the holding company for Boost Juice, Boost International, Salsa’s Fresh Mex, CIBO Espresso and Hatch.

If your staff are happy and you have the right attitude towards your staff then they can make your customers happy. Make sure there is an avenue (or many) for the customer to tell you that they are not happy or what you are doing right and when they do, get back to them fast and fix it. Do all the people in your business (whether staff or franchisees) understand your philosophy on customers? If not - fix it.

Janine Allis is founder of Boost Juice and Executive Director of Retail Zoo. Janine is among Australia’s most respected business women, winning Telstra Business Woman of the Year Award in 2004. Janine is actively involved in the continued growth of Boost and other special projects such as writing a book, The Secrets of My Success and the story of Boost Juice – Juicy Bits and All.

Ask yourself “Is our receptionist outstanding?” “How do we measure the store experience for the customer?” “What are the penalties for not achieving our benchmark?” “What is the single catch phrase that can best encompass your business?” For Boost Juice it is “Love Life” and “having everyone that comes to a

For more information contact Retail Zoo franchising sales: Phone: 03 9508 4400 Email: aussiefranchising@ boostjuicebars.com Web: www.boostjuice.com.au and www.salsas.com.au

Business Franchise Australia and New Zealand 49


urban asian street food wants you... Now franchising l

Bing Boy offers a unique product

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Low capital investment

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Great training

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Full marketing and operational support

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Selected sites now being released

At Bing Boy, Asian street food is now available to everyone. Our healty, tasty and fresh products are popular throughout Australia. We are growing and will have limited opportunities now and throughout 2014 for great locations. We are looking for franchise owners that have a hands on approach, enjoy a challenge and understand business. We invite you to apply for one of our upcoming stores. We have prime shopping centre locations available. &KHFNRXW RXU ZHEVLWH FRQWDFW 7RQ\ IRU D FRQĂ€GHQWLDO introduction to our successful system.

Tony Maddock T: 03 9533 7210 M: 0400 017 882 E: tony@solutionsfranchising.com.au www.bingboy.com.au 50 Business Franchise Australia and New Zealand


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building & landscaping Featured Jim Penman

52

Diverse Shopfitters

54

Bill Vis

56

Spray Pave Australia

58

Narellan Pools

62

V.I.P. Australia

64

Coral Homes

65

Unscratch The Surface

66

THE Shed Company

68

Katherine Grace

70

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JIM’S SECRETS TO

I’ve made countless mistakes in my business career, and my character flaws are legion. Yet when I look over a business that began with a $24 start-up to becoming Australia’s largest service franchise network, there is one principle that was correct from the beginning. I was always passionate about customers. I can still remember the horror I felt, decades ago, when through a bookkeeping mistake, I failed to service and thus lost two

of my regular clients. It was not the loss of income that mattered, because I had as much work as I could handle, but the sense of guilt for letting my clients down. In mowing a lawn, I was always looking to do that little bit more. For example, in the early days when edging was done with a wheel, I used to edge first and then run the left side of the mower down the mower strip to create a really clean edge. It always bugged me that where grass met a retaining wall or tree, there was always that annoying fringe with no possible option (doing it with shears was just too much work for the benefit). One day, and this was in the 1970’s, I walked into my local mower shop and saw a strange looking gadget on the floor. It was a long pole, with a handle in the middle, a small engine on one end, and a strange looking fixture with a piece of nylon cord sticking out at the other. It was a brush-cutter, one of the first ever imported into Australia, and I had never seen anything like it.

52 Business Franchise Australia and New Zealand

I asked the owner what it was for, and he demonstrated. At last, I saw the solution to my annoying furry edges. Although I didn’t have much money and it cost more than a lawnmower, I bought it on the spot. Thus, I became one of the first contractors in Australia to own a brushcutter. Edging was such a fetish with me that my contractors said they could go into a street and tell which lawns I had mown, simply from the quality of the edges. To me, a single blade of grass over a cut edge is like a giant red boil on a beautiful face – ugly, and impossible to ignore. If this seems exaggerated and unreasonable, well it is! It’s an entirely emotional reaction far beyond any immediate financial benefit and yet, it is exactly this passion that has reduced our complaint rate by 98 per cent since pre-franchise days. Being successful as a franchisee starts a long time before you begin working in your franchise. It starts when you begin thinking about whether to go into business


Jim Penman, Founder, Jim’s Group.

at all. Because while a good franchise system can improve your chances of success, the only real guarantee is your own hard work and business sense. In general, the more successful you have been in previous employment or in business, the more likely you will be to succeed as a franchisee. We find that managers and sales people tend to be especially successful, but any job that requires self-discipline and the ability to work independently is a good background. Then it’s a matter of choosing the right type of business. People often ask me which Jim’s division they should go into, and I always ask them: “What do you like doing?” I became a mowing contractor because I love the outdoors: trees, grass, sunshine and rain, the lot. Others prefer the indoors, or like driving, or want the robust physical challenges of working with trees or building fences. Potential income should always be secondary. You’ll do best at what you most enjoy. Thirdly, (and this really counts) is to choose the right system and here there is one key principle: do your homework! I’m astonished at people who make decisions involving tens of thousands of dollars and years of their life without spending a few dozen hours on research. Don’t be afraid to ask hard questions. Check out all the companies in your chosen industry, and ask: “What makes them the best?” Most importantly, get a list of all their current franchisees, with direct contact numbers, and speak to as many as possible. This should be handed over without even the need for a deposit. Failure to do so is a breach of the law, and highly suspicious. A good franchisor will welcome you phoning their people. A poor one will try not to hand over the list, or restrict it to a few chosen favourites. We have found the

best franchisees tend to do intensive and careful research, involving competitors and extensive contact with our own people. I often say, when talking to franchisees at induction training, that I wish I could have a time machine and attend our course when first starting out in business more than three decades ago. In the beginning I made so many and serious mistakes, including (for example) being immensely proud of having all my quotes accepted in my first month of full time business. I was even more proud that clients commonly gave me extra money for a job well done. Looking back now I realise I was quoting far too low, and could have earned several hundred dollars more per week. This would have made an immense difference to my quite desperate financial situation at the time. Other hard earned lessons included the techniques for picking up wet grass clean, tricks for getting round trees fast, efficient use of grass bags, brush-cutter technique, systems of navigation, mower maintenance principles, and much more. I spent fifteen years in the field and was a hugely successful contractor, giving it up only just before launching our franchising system in 1989. But then I started having regular meetings with franchisees, and immediately found a huge urge to get back out again. It wasn’t that I had too much time on my hands, it was finding out how much better my business could have been run using all the new ideas that were being shared around. Even today I am learning lessons which would make me a better and more successful contractor. For example, one of the keys to success in a service business is offering clients extra services. It makes for happier customers, more income, and a better hourly rate, and yet often we refrain from asking for fear clients may find us too

‘pushy’. So here’s a simple idea: simply mention to the client something you have done or intend to do. For example, you apologise to a client for being grubby because you’ve just cleared someone’s gutters (the client you are speaking to has leaves poking over the edge of theirs). This is something I didn’t think of during fifteen years in the field, or for fifteen years after that, and yet it’s one technique among many we now teach all new franchisees. Once in business there is one key principle that counts more than everything else: look after your customers. This should be a matter of emotion and deep-seated principle, rather than simply of logic. The second principle of our Jim’s Group values states that we are ‘passionate’ about customer service (our first principle is service to franchisees). This means that we look after customers well because this is a matter of our pride and integrity and sense of identity Nothing in the world can totally guarantee success, but if someone has the right level of ability, chooses a good franchise with a style of work that suits them, offers great customer service and is willing to follow the system, their chances are pretty good! Jim’s Group is Australia’s largest service franchise network. It was founded as Jim’s Mowing in 1989 by Jim Penman, and now involves more than 3200 franchisees across 30 divisions including Jim’s Cleaning, Jim’s Antenna’s, Jim’s Test & Tag, Jim’s Car Wash, Jim’s Dog Wash and Jim’s Bookkeeping. Jim’s Group operates nationally and internationally in New Zealand, the UK and Canada. Phone: 131 546 Web: www.jims.net

Business Franchise Australia and New Zealand 53

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“Being successful as a franchisee starts a long time before you begin working in your franchise. It starts when you begin thinking about whether to go into business at all.”


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DIVERSE SH OPFITTERS

The Diverse Difference Diverse Shopfitters have built a reputation for a commitment to excellence in shopfitting. From initial enquiries, through estimating, production and on site construction and installation, this commitment delivers outstanding results. With multiple finalists across a range of categories in the 2012/13 ASOFIA National Fitout Awards, we are ready to make your next store a winner. Our commitment begins with a promise that the customer comes first, always. We know that many retailers, particularly those involved in or with franchise operations are not getting the levels of service they should reasonably expect from their shopfitters. We hear about project over runs, a lack of

communication, a failure to understand the brief and an overall lack of responsibility. We do things differently at Diverse Shopfitters. We offer friendly, professional service, open communication and innovative problem solving. We make sure we completely understand your objectives and draw on our experience across all types of retail fitout to deliver solutions tailored to your exact requirements, all the while taking the stress out of the process for you. Industry best practice from concept to completion. It’s what our clients have come to expect and it’s one of the things that sets us apart from our competitors. Our commitment to excellence has enabled us to expand our operations over the last 10 years. We have established trade networks and project managers in every state and can confidently claim that we are among the best shopfitters in Australia. We know that delays and poor planning can and do affect the bottom line for our clients. Our detailed planning system enables us to provide accurate quotes and working schedules. We don’t like surprises and neither should our clients.

Our production technologies and processes ensure that every project is completed as efficiently and cost effectively as possible. Our proprietary Replik8 system eliminates trade bottlenecks, guarantees repeatability and typically delivers production efficiencies of up to 30 per cent over conventional systems with no compromise on quality. Designed specifically for franchise or multi-site operations, Replik8 has been proven in fit out projects for some of the biggest fashion, food and pharmacy retail brands in the country. If you need your customers to have a consistent brand experience in each and every store in your network, you should speak to us. Recognised for outstanding results across Australia, Diverse Shopfitters are ready to take the stress out of shopfitting and help you open for business sooner. For more information contact Diverse Shopfitters: Phone: 1300 969 449 Email: info@diverseshopfitters.com.au Web: www.diverseshopfitters.com.au

54 Business 54 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand

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DAILY BAGEL CITY SQUARE

ASOFIA NATIONAL FITOUT AWARDS FINALIST

BASIL’S FINE FOODS

ASOFIA NATIONAL FITOUT AWARDS FINALIST

JUST CUTS

KARRINYUP SHOPPING CENTRE

DOME COFFEES

ELLENBROOK

Want to open for business sooner? Every day you wait for your store to be finished is a day’s trade lost. At Diverse Shopfitters, we work hard to help you open for business sooner. Our Replik8 technology and advanced project management systems eliminate trade bottlenecks to deliver retail fitouts up to 30% quicker than conventional shopfitting systems with no compromise on quality. Replik8 also guarantees absolute brand consistency across multiple sites making it perfect for franchises and national retail chains.

From a single store to a national store rollout, Diverse Shopfitters deliver quality retail fit outs on time and on budget. Contact us today and open sooner.

From our WA head office, we deliver fit outs on time and on budget Australia wide. A commitment to excellence in service throughout the entire fitout process has seen our customer list grow to include many of Australia’s most popular brands in food, fashion and retail. For more information about how Diverse Shopfitters can help you open for business sooner, visit our website.

www.diverseshopfitters.com.au

CONSTRUCTION | MANUFACTURE | PROJECT MANAGEMENT | MAINTENANCE HEAD OFFICE: 68 McDowell St, Welshpool Western Australia 6106 Ph:1300 969 449 Fax: (08) 9258 8566 Business Franchise Australia and New Zealand 55 DS_BusinessFranchise_A4.indd 1

10/11/2013 10:22:45 AM


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The long and short of

V.I.P. Home Services If we look back throughout the last few decades in the building and home franchising industry, there are few placed like Bill Vis, from V.I.P. Home Services, to provide insight into the changes, trends, challenges, and successes in the industry. Recently I spoke with Bill and here he shares his franchising story. How did you begin V.I.P. Home Services? My parents were Dutch immigrants who were poultry farmers. They didn’t want me to go into the family business and I wanted to be a car salesman. I could only get a job selling Electrolux vacuum cleaners on a commission only basis. I saw a local bloke mowing lawns and thought I’d give that a go. I started out on Saturday’s and ended up making more money this way, so I started full time.

What made you decide to begin franchising? Basically, I bought everyone off the market. After a while I took a $50 deposit for other lawn-mowing rounds, which I eventually changed to a membership fee. This was in 1979 and I’d never heard of the term ‘franchising’. I didn’t even realise at the time that I was indeed franchising my lawnmowing business.

What do you feel is your biggest achievement with V.I.P.? That’s easy, changing people’s lives. One of our early franchisees called just to talk six months after joining V.I.P. He thanked me for changing his life. He had financial security, increased fitness, he was happy, so I began to wonder how many other people like him were out there.

What do you think sets V.I.P. apart from its competitors? Our franchisees can enter our system at a level that suits them. In a way we view

56 Business Franchise Australia and New Zealand

ourselves as life and business coaches. Although we’re in the lawn mowing and cleaning business, if you don’t provide good customer service you can’t retain clients. We encourage our franchisees to look after clients and follow our best practices. If our franchisees aren’t achieving the things they want to achieve, we have a strong commitment to work with them. This might mean being able to send their kids to private school, own their own home or take regular holidays. This might even mean helping them to set up their own self-managed super funds by connecting franchisees to professionals in the industry.

What changes have you seen occur in the franchising industry over the years? Over the last 33 years, even before the whipper snipper and blowers, we’ve seen changes in technology. I mean, my phone was like a brick. Before our marketing efforts were predominantly utilising yellow pages, local and national TV. Now everything is digital, SEO (Search Engine Optimisation). Customers want an instant response nowadays so we have to meet their expectations.

What do you feel have been some of the biggest challenges that have occurred in the franchising industry? In some cases we had more customers and more calls than we could handle. Recruitment in franchising is always a challenge, so it’s tough to get the balance


building & la ndscaping feature right. In 1979 there was a recession, so we were able to take advantage of this as unemployment rates were so high. It was easy then to sell a franchise. Also, the average lifespan of a franchise agreement is five years, so you need to invest in your franchisees by helping them stay longer, increasing retention rates. I guess there was also the point where everyone started to franchise. They had no substance and no training systems. We now have regulation through the Franchise Code of Conduct which now protects franchisees from unscrupulous operators and fly by night franchisors. I have learnt a lot since we began all those years ago. The first 10 years in business I learnt from my mistakes and continue to work toward reaching constant milestones. Today we have 1100 franchisees and are working hard to continue to grow the V.I.P. family.

What do you feel are the positive aspects of mobile services franchises in comparisons to other options that are available in the market? Firstly, there are no overheads or reliance on ‘position, position, position’. You can take your service to your clients. You’re advertising your business while you go about your daily business driving around. You have a constant billboard on the street with consistent exposure. We’ve estimated that from our 1100 strong franchise network that we generate over $5.5 million in free advertising. This is a powerful mechanism and we’re constantly encouraging our franchisees to upgrade their trailers and take pride in their work materials.

What do you think is the future of landscaping franchises such as V.I.P.? With the recent drought, we saw a surge in the installation of fake lawns and turf. Instead of feeling threatened by this, we saw it as an opportunity. Our clients were demanding total garden and lawn maintenance, so we learnt to adapt. For us to achieve only a 4 per cent stake in the home maintenance market, we would need 14,000 franchisees, so there is huge growth potential. I also see technology playing a big part in the future of our industry as the energy and labour markets change.

What advice would you give to someone looking at investing in a services or landscaping franchise? Look at whether you like the people you will be dealing with. Have they got the brand name, and take a look at the advertising they’ve done. Will you be inheriting an existing client base or will

you have to find your own customers. Speak to clients of the franchise and ask “who is going to support me on a day to day basis?” Be sure to meet the support manager as they’re the person you will have a relationship with. Also, find out if the franchisor offers group buying discounts for your car, equipment, etc. Talk to existing franchisees. Are they comfortable to recommend the system? Finally, do your research on the system’s reputation and gather as much information as you can online.

When looking at investing in a franchise, what do you consider to be the top three things people should be looking for? Firstly, return on investment. You should achieve a 12 month return for what you pay in fees. Work out what your net return will be. Secondly, consider if you are buying regular clients or a territory. Finally, make sure you like the people you’ll be working with, especially the franchisor, as this relationship is much the same as a marriage.

Business Franchise Australia and New Zealand 57


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Spray Pave Australia

Three guarantees and a boat trip Offering three guarantees and a boat trip might sound unusual for a new business opportunity. However after almost 25 years in business, the owners of Spray Pave Australia Pty Ltd know that it takes something unusual yet simple to succeed in business. Owner Mr Chris Bylhouwer, started Spray Pave Australia in the late 1980’s, and has always improved his offerings in many ways. The current complete package includes a pay as you go option, plus three guarantees and a boat trip! The business is working with existing concrete. As Mr Bylhouwer explains, “We can do anything with existing concrete from basic repairs to complete decorations with non-slip patterns using new toppings, epoxies, stains, polishing, seamless flooring, waterproofing even transforming it into imitation slate or timber floorboards. “The transformations are unbelievable and the demand for this service is everywhere, from homes to shopping centres, retail shops to factories, warehouses, schools, churches and airports.” The business opportunity is more than just application training, it also includes many systems for receiving jobs, quoting high prices, managing and growing the business including legal issues.

“In essence we provide a complete turnkey business package for one price then we back it all up with the ultimate security – pay as you go plus three guarantees and a boat trip,” The new Licensee system includes some unique ideas; three days at the Adelaide training centre plus two days back with the operator on their own customer job, local marketing campaign, insurance package, own web site page, customers interest free finance etc. A complete list is in the information pack. Designed to remove all risk is the three guarantees.

1

A minimum of 20 customer leads sent via SMS and email. More leads are forwarded free for life.

2 3

Guaranteed work option, available any time after training. If new operators don’t earn over $100,000 gross in their first year by following the systems, they can claim the 100 per cent Money Back Guarantee.

This he says offers complete security when starting a new business. “All they have to do is buy the business, do the work and start loving life.” Mr Bylhouwer sums up the three guarantees, the pay as you go system and boat trip.

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“Operators want: 1. Customer leads? Yes, we advertise and forward them free. 2. Guaranteed work? Yes, they can pay an extra fee and we forward them signed customer contracts. 3. Money back guarantee if it doesn’t work? Yes, we trust our training, support and systems so if they don’t gross over 100k in the first year, they can have all their money back. “I like to stand out from the rest and put my money where my mouth is! Even to include that they can pay for their new business as they go. We only charge a small deposit (sometimes negotiable with conditions), the rest they can pay over time. “As for the boat trip, because new operators spend most of their time in Adelaide at training, if they can stay an extra half day or more, we can take them out on our impressive power cruiser or even a luxury cruising sailing catamaran for bigger groups or families. Business before pleasure makes a possible tax deductable mini holiday. It’s all about enjoying the social and business relationship with new friends; fishing, relaxing or just enjoying the start of a fantastic new, long term journey together.” Contact Spray Pave on: Phone: 1800 688 888 Email: chris@spraypave.com Web: www.spraypave.com


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Business Franchise Australia and New Zealand 59


building & la ndscaping featu re feature

Inspect M y H ome™

inspectmyhome Don Jury is acutely aware of the significant investment his customer’s take on when purchasing property. “We take great pride in our reputation knowing statistically that over 70 per cent of all Building, Pest and Pre-purchase property inspections we carry out have been recommended to us, or are for previous clients. “We are committed to providing every client with professional services and totally independent Building and Pest Inspections,” he said. As one of Australia’s largest and longest established building and pest inspection companies, Inspectmyhome™ aims to provide a professional and friendly service to their clients. Being the first dedicated building and pest inspection company in Queensland has provided them with the experience, knowledge and the people to undertake any job, and they’re expanding to

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provide their service throughout Australia. Don Jury purchased the business in 2004 and has traded as Queensland Building and Pest Reports. During this time the business has grown and become fully systemised. Don has invested a substantial amount of time, effort and financial resources into the latest technology, creating a fully integrated system incorporating an electronic booking system and database. They currently operate a reporting system on smart phones/tablets allowing their inspectors to complete their reports onsite and immediately send the reports back to the office. They strive to provide their customers with a seamless experience from the time of booking through to the delivery of the reports. In 2012, Don’s team made the decision to re-brand the business as ‘Inspectmyhome™’ in order to grow and expand the business nationally, and Don says this change has been extremely well received. “We believe this is a strong marketing statement and as a result we are constantly


building & la ndscaping feature being asked to carry out inspections in areas that we currently do not service. This demand has been increasing due to our reputation in the marketplace, our strong online presence and the ever changing way clients source our services,” he said. Inspectmyhome™ carries out in excess of 15,000 inspections each year and is a fully licenced and insured company, and a proud member of the Queensland Master Builders Association and the Institute of Building Consultants. They work in accordance with the current Australian Standards and, because they are independent of any third parties, their clients can be confident that the property report has been written for them. All property inspections are carried out by highly trained industry professionals, to provide clients with a comprehensive and independent property report at the most competitive price. Inspectmyhome™ provides franchisees with the latest PDA technology which allow reports to be completed onsite (with photographs) which can be sent electronically to their office the moment the report is completed. A state of the art computerised booking system and database provides future reference to customers/ agents and other referral sources as well as the daily scheduling of jobs. Inspectmyhome™is gearing up for significant growth as they expand throughout Australia, and offer potential franchisees the opportunity to work

together to help build a solid future for the new business owner and their family. Don says new franchisees are likely to have similar backgrounds. “This business will appeal to a licensed builder as we can provide them with hands on training and assistance to obtain their Timber Pest License. “Our business model also appeals to current building and timber pest inspectors looking to increase their brand presence. “We also offer franchisees an option whereby all admin & telephone enquiries are undertaken by head office allowing the franchisee to focus on carrying out inspections and growing their business. “If you have aspirations to be one of the best in the industry and have an entrepreneurial spirit with good social skills then this may be the opportunity for you,” he added. With generous area territories, Inspectmyhome™believe they offer a fantastic opportunity at an incredibly low entry price, starting from just $25,000 plus GST.

For more infomation contact: Phone: 1300 337 447 Email: info@inspectmyhome.com.au Web: www.inspectmyhome.com.au

The benefits of an Inspect My Home franchise system includes: • Initial 6 weeks of onsite training • Computerised booking system and database (Referral, debtors, sales reports) • Electronic reporting system (Building, Pest, Condition and Pool Reports)

• IT support • Telephone support • Marketing assistance • Personalised webpages linked to www.inspectmyhome.com.au • National 1300 number

“If you are already running your own inspection business and want to be part of a growing and trusted brand why not consider joining us today,” said Don.

• Start-up stationery business cards, letterhead and templates etc.

Franchisees will also receive the benefits of the existing business model which is backed by a strong and reputable brand. The franchisor assists franchisees with support and training covering all areas of the business including the electronic booking system and data base software.

• Operations manual

• Windows based smart phone • Exclusive area territory • 5 Year term plus two further 5 year options

Business Franchise Australia and New Zealand 61


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N A R EL L A N POO LS

Jump in

Bring your dreams to life working with Narellan Pools Narellan Pools have been bringing clients dreams to life for over 40 years. They turn backyards into a family oasis that creates lifelong memories for families across Australia.

been part of the Australian community for over 40 years.

This is your opportunity to bring your dreams to life and create a great future as part of the Narellan Franchise community.

• Strategic business planning and reviews

With a Vision to be the world’s best and most loved pool builder, becoming a Narellan Pools franchisee puts you in the best company. Now the largest single pool brand in Australia, over the past 40 years they have grown from a small family-run business in the suburb of Narellan to a successful global company, underpinned by a world-class franchise system. Narellan Pools are dedicated to their franchisees success. They have spent more than a decade developing a successful and sustainable business model where franchisees have the opportunity to build personal wealth and a saleable asset. Their systems, tools, training and support are the best in the swimming pool industry and they are constantly seeking ways to be even better. You will be joining a brand that has

Narellan Pools have invested heavily in analysing the market and mapping the country, using empirical data to determine the propensity for pool purchasing in locations nationally. They provide a suite of resources to ensure your success including; • 40 year brand heritage

• Initial and ongoing training delivered via various methodologies

• Systems and tools all located on an easily accessible intranet • National and local territory marketing strategy and support • Public Relations support

• Leading edge technology

• Inspiring, educational and relevant events including their annual international conference. One of the things truly setting Narellan Pools apart as a franchisor is their absolute passion and commitment to franchisee profitability and success. This means their financial analysis, reporting and support is superior and includes; • A keen focus on helping build wealth • Helping to build a salable asset

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• Succession planning. Another key element making Narellan Pools unique is the culture. It encompasses a truly collaborative and supportive focus enabling you to connect with like-minded passionate franchisees who share their success and support their peers. All being led by a franchisor committed to your success. A testament to the quality of their pools, brand and system, interest from around the world has opened export markets for Narellan Pools in Asia, Canada, Europe, Iran, New Zealand, Norway, Oman, Reunion Island, South Pacific, Sweden, United Arab Emirates (UAE) If you have passion, determination, a willingness to learn, business acumen and experience, then this is the perfect opportunity for you. Being a licensed builder is preferable, but not essential; Narellan Pools offer the most comprehensive training and support in the industry. Territories are now available in regional and metro areas in NSW, QLD, VIC and SA. For the opportunity to bring your dreams to life, contact Lauren Smith: Phone: 02 9684 8000 Email: careers@narellanpools.com.au Web: www.narellanpools.com.au


Join Australia’s Best and Most Loved Pool Builders The opportunity to bring your dreams to life is a reality. Become part of our award-winning brand. Backed by over 40 years experience and rapid international growth, you will receive full training and support, access to advanced pool technology while working with a brand at the forefront of the swimming pool industry. It’s a dream come true. We have Franchise opportunities across Australia in both metro and regional areas.

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V.I.P. Australia

“I wish I had done this years ago– My health has never been better!” Having come from the corporate world as an Asset Manager working in an office every day, Trevor Harding is now in the outdoors, enjoying the sunshine with his V.I.P. Lawns and Gardens franchise. “I wish I had done this years ago. I joined V.I.P. as I was made redundant. I have never felt this good. My health and wellbeing are better than ever and I lost over five kilos during the four weeks of training,” said Trevor. “While I thought I was happy in my last role as an Asset Manager, I am now starting my next exciting chapter, plus I’m now in charge of my future. I decide the hours I want to work and I’m earning money for my back pocket, not someone else’s – life is pretty good right now,” commented Trevor. Trevor loves that he is now working in the outdoors and meeting new people every day. “I can now enjoy lunch in the park and am not stuck in the office all day every day. I’m so glad my wife saw the commercial on TV and encouraged me to make the call –

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it’s the best phone call I have ever made,” said Trevor. “Of course, going into business for myself wasn’t an easy decision, but I made sure I did my research. I needed to make sure I was making the right choice for me and my family. “While the leap into being my own boss was one the biggest decisions I have ever made, it’s already paying off and I couldn’t be happier. “What I love about having my V.I.P. Lawns and Gardens franchise is that I’m also getting to know the other franchisees in the area. It’s great to know that there is a network of other franchisees out there. I’m not alone and that certainly makes going into business for yourself less scary. “We had looked at purchasing a coffee franchise, but with the big investment required and no guarantees, it was a gamble we weren’t willing to take. There are so many options available now that it can be quite hard to work out what is the best option. “I know I had to really assess what would suit me and the lifestyle I was looking for while also knowing that help and support were available when I needed it. V.I.P. has delivered on its promises and has certainly given me a new lease on life,” said Trevor. Contact the V.I.P. team: Phone: 13 26 13 Web: www.vipfranchisesales.com.au


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

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

NOW FRANCHISING after 23 years of helping Australians into new homes

*HIA “Housing to 2020” report

With Australia’s housing shortage set to continue to grow well into the future, now is a great time to apply your knowledge and skills gained from the housing industry to home building, and what better way to do it than with the winning business model a Coral Homes franchise can provide. And the good news is you don’t have to have a builder’s licence of your own; you just have to have someone in your business who does. Own a slice of an iconic Australian brand Expert assistance with franchise startup Leading systems, processes and training Extensive marketing support and product range Real bulk buying power from a major builder 131002-FRA-BFM

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

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

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

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Unscratch T he Sur face

A glaring need for Glass Restoration a window of opportunity Unscratch The Surface are Glass Restoration and Protection Experts. They repair and restore glass to like new. This is considerably faster than replacement glass turnaround, and offers comparable savings of up to 80 per cent of the replacement cost. Parent company, The Maulex Group, established Unscratch The Surface in 2010, after recognising a glaring need for aftermarket repair to windows in the construction industry. This quickly expanded to a demand across all industries including commercial and residential. This demand has been driven by the increase in windowpane sizes, their expense, and replacement turnaround times, coupled with the penchant want for it to be fixed immediately and for as little cost as possible.

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A lot of glass today is imported from overseas and this can involve extended delays. Unscratch The Surface can fix their problems with a much faster turnaround. Unscratch The Surface unveiled their franchise system at the Franchising Expo in Melbourne this year. According to Stephen Williams, their Sales and Marketing Manager, the launch went well. “We had a great response from potential franchisees and customers alike, with many early interviews for territories and two official applications for Melbourne territories received last week,� he said. Unscratch The Surface offers clients a way to repair their scratched glass as an alternative to replacing it. They proudly restore all types of scratches, water scale, acid etching, paint overspray and other imperfections from glass, including tempered, annealed, laminated and even mirrors. The cost of replacing glass can be extremely expensive and prohibitive for a client. Unscratch The Surface aim to


Scratches Water Scale Acid Etching Paint Overspray This damaged can be caused by assorts of things including: Vandals Mishandling Production Issues Shipping Cleaners Pets Bore Water Everyday use and abuse provide quality service at affordable prices. They also offer a great environmental benefit as replaced glass is often smashed and put into landfill. Research shows that glass takes up to 500 years to decompose in landfill. Unscratch The Surface have full crews of glass technicians to cater from the smallest up to the largest jobs. Their restoration technique whilst not proprietary has developed over time to be more efficient and deliver a higher quality than their competitors. For the potential franchisee considering a career with Unscratch The Surface, things to consider when approaching their suitability to the system are: • Good level of personal fitness as franchisees can be on the tools for extended periods of time. • A trade background – some trade or experience working with your hands would be advantageous. • Someone who can sell themselves and the services they provide.

Stephen says he expects every franchise owner will come from differing backgrounds and experience. “Our franchise owners will probably have held a trade job prior to purchasing a franchise. They will be well spoken, outgoing, in good health, and really looking for the challenge of building a loyal client base to service. “Sales skills will be a massive asset to an Unscratch The Surface franchise owner. Head office will provide each franchise owner with some work but they will also need to create their own leads and opportunities,” he said. While there are a number of territories in advanced discussions, Unscratch The Surface is a brand new system with unlimited opportunities. Territories will be established in both Metropolitan and Regional locations Australia wide. To find out more about joining Unscratch The Surface: Phone: 1300 500 408 Web: www.unscratchthesurface.com.au

If it’s glass than they can fix it: Windows Mirrors Kitchen Splash Backs Shower Screens Aquariums Glass Tables Balustrades & Glass Fencing Glass Cabinets Industries include: Construction • Commercial • Residential Pool Fencing • Real Estate • Museum Cabinets • Jewellery Cabinets Commercial • Public Transport • Accommodation • Hospitality • Insurance • Retail • Shopping Centres Residential • Homes • Classic Cars Government • Public Toilets • Council Displays

Business Franchise Australia and New Zealand 67

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Unscratch The Surface can restore all types of Damage including: -


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T H E Shed Compa ny

Discover THE Shed Company difference! Franchise group, THE Shed Company, has been rapidly expanding over the past eight years as the branches of its family tree have flourished. The group has doubled its network in the past 12 months, unheard of in this economic climate. Looking to grow your business? Log your interest now to secure your region, www. theshedcompany.com.au. THE Shed Company has grown from two people to 40 franchisees across Australia, with a reseller network of over 35 other businesses that purchase THE Shed Company products. This fast growing and industry recognised Australian owned and operated franchise group was established by Managing Director Janet Hamilton and her husband Robert Hamilton in 2005. Janet says one of THE Shed Company’s greatest achievements has been its astonishing growth. THE Shed Company has seen significant change in recent years as its network has steadily expanded. While the Australian economy and franchise groups suffer

economic uncertainty, Janet claims her focus has always been on investing and retaining staff and bolstering the company by enabling the stability and support of the group. We were names as one of the top eight franchising companies in Australia in 2007, 2008, and 2010 by the Australian Financial Review’s Smart Investor Magazine. We’re the fastest growing franchise group selling sheds and garages in Australia, and we have been for several years. With a franchise group that is often referred to as ‘THE Shed Company Family’, Janet states that both their franchisees and employees feel a real sense of belonging. “We believe that the key to a successful relationship is the result of the establishment of long term commitment. “Our success has been built on the back of ensuring we offer a solid product base with wide consumer appeal. Just as we tell our network to listen to customers, we listen to them. While our network is independent businesses, they know they can call on us at any time for any assistance they might need.” Another important facet of THE Shed Company family is its suppliers. “Our suppliers are major partners in our business,” stresses Janet. “Without their continued support we wouldn’t be here. In the eight years that we’ve operated, we’ve kept all but one of our suppliers. We’re pretty proud of that, a lot of companies tend to jump from supplier to supplier, whereas we’re very loyal and we appreciate the support our suppliers give us.”

With a comprehensive understanding of the industry and its future, Janet is well equipped to achieve her vision. “I want our company to be Australia’s number one preferred supplier of sheds, garages and steel framed buildings,” concludes Janet. “We want to continue to provide quality service and Australian product to Australian consumers” As THE Shed Company explores new opportunities and possibilities, its supportive suppliers and network will ensure this group continues to flourish. If your looking for an opportunity and wish to find out more about THE Shed Company, call Janet on: Phone: 07 5574 3666 Web: www.theshedcompany.com.au

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Business Franchise Australia and New Zealand 69


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E x per t Ad vice

Increasing Your Retail Sales Top 10 Success Tips for Builders and Trades Since 1997, I have been working with people fortunate enough to combine the good business sense of franchising with the health and lifestyle benefits of ‘hands-on’ services like construction, trades and home services.

I even spent an eye-opening year as a Dog Wash operator, running a business and selling franchises, as well as days here and there with antenna technicians, fencers, glaziers, painters and builders – so it would be fair to say that I have an ingrained respect for any franchisee who spends their time in weather-braving, customer-juggling, bladder-busting days ‘on the road’. Present day and I have donated my time to speak to over 1,200 builders and tradies in the last five years with the Housing Industry Association (HIA). These businesses are close to my heart as they are almost always family businesses, affecting and involving every member of the family.

70 Business Franchise Australia and New Zealand

Over the years I have come to recognise some key things about a successful trades or building business. Some are the same for all businesses, and some are exclusive to the trades. They all fall into that category of ‘simple, probably not easy, and definitely easy to put off if a customer is breathing down your neck’. Just remember that the more of these pointers you can follow, especially from the start, the more personally and financially rewarding your new lifestyle business will be.

1. Join a Franchise

Joining a franchise gives you an


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“Just remember that the more of these pointers you can follow, especially from the start, the more personally and financial rewarding your new lifestyle business will be.” Katherine Grace, Director, Graceful Solutions Marketing.

enormous head-start in business and I cannot recommend it highly enough. This is especially true in trades and home services where the backing of a household name can make a massive difference to the amount of work you receive and how well you are paid for it. There are lots of ‘cowboys’ out there and belonging to a known brand immediately separates you from these in the customer’s eyes. You will also have the support of a team of peers as well as plenty of time-saving cheats to learn from the ones that have gone before (if you make use of them!).

2. Perfect Quiet Confidence

Think about the best tradesman you ever used. Were they a flashy sales type or did they tell you about the job by swamping you with technical jargon? No? Most likely they were a down to earth person who for some reason you just knew would do a great job and do right by you. The best salespeople by far in service industries are those that show their knowledge by asking clever questions (not talking the client’s ear off), who seem genuinely interested in the customer and in achieving what they want, and who project an air of ‘fairness’ so the client knows they will be treated well and for a fair price. This manner comes with experience, definitely, but try approaching every job with the thought ‘let’s find out exactly what they need and how I can help’, as opposed to trying to be a salesman, and you will be almost there.

to ensure they have $300 per day after materials, or a builder might need to clear at least $15,000 per month from projects to cover profit and expenses.

3. Aim for Consistently Great, not Perfect All tradies, but builders especially, are prone to chronic perfectionism. I have met so many tradespeople who know that they are amongst the top in their industry workmanship-wise but who aren’t running a successful business (come to think of it I haven’t met many who wouldn’t say they are one of the best workmanship-wise!). Remember this one piece of perhaps hard-to-hear but nonetheless true advice: It is more important that the client believes that you are a perfect craftsperson than that you are, in fact, a perfect craftsperson. Perfectionism means you will have trouble delegating, taking holidays and having anyone fully appreciate your work. Instead aim for consistently great workmanship, and perfection in customer service.

5. Start a Tax Account

4. Understand Your Margins

A franchise business model is not a free ticket to financial success and not understanding the costs ‘to keep the doors open’ is where most ‘tradies’ trip up. You did not buy a job - but without planning you may end up simply earning a wage. You are entitled to get a return on your investment (profit). The simplest way to fix this is to work out your ‘cost per day/week’ (tradies) or ‘cost per month’ (builders) which is all of your expenses, taxes, desired wages and a fair profit added together. The profit from all of your jobs for that period then needs to at least cover this. For example, a landscaper might need

Start a tax account and several other accounts. As a minimum, have separate bank accounts (actual online accounts, you can get ones with zero fees) for all the GST you collect and for any PAYG and superannuation. That way, when these bills come in you will have more than enough to pay them – and likely some left over to take the edge of your income tax bill. My business partner holds a total of nine different bank accounts for our business and it has never been better financially. They include a maintenance account for premises fixes, staff incentives account, a profit account where we syphon off ‘business savings’ and a marketing fund account, amongst others.

6. Manage and Value Your Time

Time management is always the single biggest topic that builders and tradespeople ask me to tell them about. To sum everything up in one paragraph would be impossible (it’s an article all on its own) but what you need to know the most is: • Set up a default diary with times each week for quoting and paperwork already set aside, so they don’t end up in the graveyard shift. • Have a minimum of 3 - 4 hours per week which is your sacred ‘on the

Business Franchise Australia and New Zealand 71


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business’ time – if someone wants to book an appointment for that time, simply tell them “Sorry I am with my #1 client.” • Focus on the high dollar-per-hour tasks and lose the ones you hate or aren’t worth doing. Hire a bookkeeper and spend more time selling.

7. Always be Marketing

In an upturn, there is plenty of money to be made in service industries and it is easy to get complacent. Unfortunately, by the time the pendulum swings into a downturn it is practically too late to get marketing to ensure you don’t run out of work. Always have a local area marketing plan in place and simply turn the ‘tap’ on and off as you need to – that way you are always in control. You should always strive to have more enquiries than you need, because this allows you to be picky and therefore enjoy your business with well-paying, easy to deal with customers.

franchise system that I have worked with is a great example, with one guy booked up for more than 8 weeks just after starting. While others will tell you this is a ‘great problem to have’, the truth is that if you don’t learn to say no, this situation can end with you under great amounts of stress, the wheels falling off, service levels dropping, and in the end a dent in your reputation. It is far better to choose the best work and service it well, than to say yes to everything. Choose the income you want to achieve in balance with the lifestyle, and if you find yourself overwhelmed, consciously choose to say ‘no’ to some of the work, or put your prices up.

8. Become a Specialist

An easy way to ensure you always get the best referrals is to become a specialist in one area of your industry. While you may not be able, or willing to give away the other services you offer, it is a good idea to become known as the ‘go-to-person’ for a particular service or customer type, (Tip: pick a high value one!). For example, a builder might become known as being the best at heritage renovations, or contemporary projects, or working with empty-nesters. Be guided by what you enjoy as this will be what you are good at too. Once you establish a reputation for being a specialist, people will know how to refer to you and the word-of-mouth work will start rolling in.

9. Learn to Say No

People outside of franchising are amazed to hear how many operators I have spoken to who have far more work than they can handle. One

10. Never Forget Why You Started

Before you hit the road on day one, write down your top five reasons for starting the business and put it somewhere prominent in your office or work area. Two of the first ones will likely be more time with the family, and a better lifestyle. It is very easy to achieve this (with some planning) but it is also very easy to forget it and create a monster than runs you instead

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of the other way around. Plan often (at least quarterly) and always include at least one strategy to reach your goals in each area – health, lifestyle, family, financial growth, or an increase in the business value. Time spent on the business instead of in it will actually take you forward faster, and will ensure you enjoy that fantastic outdoors lifestyle along the way. Katherine is a former General Manager for the Jim’s Group, with over 17 years’ experience in franchising and trades. She has also been a successful ActionCOACH (#14 in the world) and runner-up Franchise Woman of the Year in 2010. Graceful Solutions is a marketing company specialising in no-cost, lowcost and local area marketing. Their team of eight consultants offer services including websites, database marketing and low-cost strategies to engage existing customers and find new ones. For further information contact Katherine at: Phone: 0400 865 277 Email: Katherine@gracefulsolutions. com.au Web: www.gracefulsolutions.com.au


DON’T MISS OUR NEXT ISSUE!

the price is right franchises you can afford

Want to learn more about trends and growth industries in franchising? Need help making the big decisions? Every edition we feature advice from the experts to help you on your franchising journey.

Find out more about Franchises you can Afford in the January/February edition of Business Franchise Australia and New Zealand. On sale 3rd January 2014.

Business Franchise Australia and New Zealand 73


profile : Cafe 2U

The new franchisee frontier In March 2012, John Kaxos, made the leap into business ownership with the purchase of his first franchise with Cafe2U. It was the culmination of months of research and competitor analysis, a process which also included spending a day with an existing franchisee, and one that John believes was integral in making the right decision for him. “I researched a number of different franchise systems. When I looked at coffee vans, Cafe2U was the first name that I came up with,” said John. As John became more invested in the purchasing process, he says he became more and more impressed with what Cafe2U had to offer. “I was impressed by the professional and upfront manner of everyone I dealt with at Cafe2U. There was no push. I was given plenty of time to consider the option without feeling any pressure,” he said. Previously working as a storeman and warehouse manager for a variety of businesses in the logistics sector, John finally came to a realisation that he was ready to take on a franchise opportunity. “I felt I was overworked and underappreciated in my previous job,” John said, echoing the sentiments of many new franchise owners. “I didn’t agree with the direction my job was taking me but felt powerless to do anything

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

while. “I’ve found I’m working similar hours to my previous roles plus some weekends. However, I’m finding the work is more rewarding. I bounce out of bed early in the morning and now look forward to going to work.

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

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

After signing his franchise agreement, the first task was to purchase their brand new Mercedes van that would be transformed into his mobile business. “Cafe2U completed the entire fitout without me having to lift a finger. After that we were booked in for a week of training at the Cafe2U Training Academy in Sydney. This took place a couple of weeks before we were due to launch in our chosen territory, Coburg,” he explained. The training, which also included Barista training, provided John with the tools required to successfully run his business right from the outset, and also establish a customer base. “Cafe2U also appoint a Franchise Development Manager (FDM) who oversees each franchisee, and is available anytime for advice or help if required. He also launches each new franchise by helping you set up your customer base,” he said. John is quick to point out the hard work required to run a successful franchise, but it’s not hard to tell that he finds it worth-

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In terms of support, Cafe2U assist their new franchisees with a term they call, the ‘Acceleration Package’. This stands out to John as an important feature of the system. “During the launch phase of your business, the Acceleration Package guarantees you $500 a day of income for 2 weeks during the on-van training phase. “It means that during the two weeks on-van training while you build your customer base with the help of the FDM, Cafe2U will subsidise your income to ensure you are banking at least $500 while they help you grow the business to this level,” he explained further. Cafe2U also have a dedicated events coordinator who organises and collates all event enquiries throughout the country and forwards them to the appropriate franchisee. “They make the process so easy for franchisees,” he said. To find out more contact John Stanton: Phone: 1300 CAFE2U (223 328) Email: jstanton@cafe2u.com Web: www.cafe2u.com.au


Go Global Act Local With extensive expertise and more than a decade of experience in the digital industry, Exa has proven time and time again that it knows the path to success. The Exa brand is synonymous with trust, performance and results. As an Exa franchisee, you won’t be starting from scratch – from day one you will have all the resources needed to provide a world-class product for your clients. For more information or to make an enquiry about this unique franchising opportunity, contact Biljana Stephens at biljana.stephens@exa.com.au or call us on (03) 9092 6699.

Australia’s Biggest Digital Solutions Agency

www.exa.com.au

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e x pert a dvice

“You’ve probably heard the saying “You miss 100 per cent of the shots you don’t take”. Would you succeed if you reach out? Will they support your campaign? Will they buy from you? You will only know once you take the first step!” Maria Abadilla, Director, Revive Projects.

How to Sell

Using Social Media

While the common advice provided by social media consultants is to engage with your followers and not sell through social media, there are tools and tips that can help franchises grow online. Why Use Social Selling? In a nutshell, there are three reasons to combine social media with sales: 1. Your target audience is already there 2. Your competition is leveraging social media 3. The more prospects you get using online tools, the higher the opportunities. There is a certain way to do it – and when done right, the various platforms can bring you more leads that you can later convert into sales.

Here’s how: 1. Connect, engage and build: Whether it’s selling a franchise or promoting a customer offer, creating connection is crucial. Even when you participate in a trade show, you don’t sell straight away. A sale only happens when you connect a need with a specific answer to that need, and this starts with generating interest and engagement. You might start with finding people who are interested in your offer through groups

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W I


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

230 clients in the first 6 days. Up to 30 clients had to be turned away each day. 90% booked out until the end of month. Over $15,000 turnover (at normal prices) in the first 6 days. 60% of clients rebooking.

When you put a proven business model into a great location the results can be stunning. If you’re interested in a franchise check out our website www.brazilianbeauty.com.au Business Franchise Australia and New Zealand 77


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or partner channels and provide them something interesting that they might benefit from. A great example of this is a campaign undertaken by Step into Life, Australia’s leading Group Outdoor Personal Training franchise called the ‘GOOD PT GUIDE’. The campaign, which incorporated landing pages, polls and an e-Book give away, resulted in generating a database of prospective franchisees and at the same time, assisted them in communicating their unique brand proposition to the marketplace. The franchise also uses a variety of online marketing campaigns from videos to apps to support their franchisees that are both pioneering and results orientated in their industry. 2. It’s all in the reach People forget that in the online space it’s all about reach. It’s no different to how you would develop campaigns offline. When you create a marketing campaign, you need to still look at the audience, the reach (how many you are going to reach based on the marketing campaign you are creating), as well as how many partners and channels you can use to leverage your opportunities. If you are promoting a customer offer, let’s say for example a “FREEBIE FRIDAY” offer, you need to ensure that you reach as many people to make your campaign a success. If your social media pages only have a combined follower group of 1000 and you have 30 stores, then it’s really not going to get the impact you want. Look at strategies like “promoted posts” if you are on Facebook, or look at working with other partners to reach the same audience. Could you partner with a blogger who has a channel to your existing customers? What about looking at an electronic email offer through a partner database? You’ve probably heard the saying “You miss 100 per cent of the shots you don’t take”. Would you succeed if you reach out? Will they support your campaign? Will they buy from you? You will only

know once you take the first step! Create partnerships to extend your reach, then promote the offer! Boost Juice create amazing campaigns that really captivate their customers from special customer challenges that honour special days, like ‘Pirate Day’, where their customers get a free juice if they come into the store dressed as a pirate. These campaigns are not just clever but it keeps people engaged and glued to their online channels waiting to hear the next fun challenge. It’s a clever way to continue to bring customers in store. Boost Juice know how to build loyalty and how to keep their customers coming back for more - while keeping it all fun which is part of their unique brand personality. 3. All online tools are not the same Believe it or not there is more to online than just Facebook. While franchisees can get overwhelmed at the opportunities, it is still an opportunity. By using multiple tools to find and engage your customers from Pinterest to Instagram, you can extend your customer reach and your engagement. We have worked with some clients who merely just used the # hashtag strategy to grow their facebook database by hundreds. Imagine that!

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Another myth to debunk is the cost of social media. Seriously, it doesn’t have to cost the earth to develop a competition app. There are so many tools that are off the shelf nowadays to help franchises to thrive. All you have to do is let your fingers do the walking. It’s called Googling! Some of the good toolkits on the market include WooBox and North Social. They’re all user-friendly and will help you on your way to lead generation and customer engagement. Developing franchise competitions to create database growth can be as easy as A, B, C. Maria is the Director of Revive Projects and is passionate about helping franchises attract, engage and retain their clients through marketing, communications and social media policy development. Revive Projects helps retail, FMCG and franchise businesses grow by increasing their visibility in markets through integrated marketing and social media. Reach Maria at: Phone: 1300 836 863 Email: mariaabadilla@reviveprojects. com.au Web: www.reviveprojects.com.au


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50 Shades of Grey? Sorry ladies, but franchise research should be all about black & white.

Let’s face it making the decision to go into any business can be nerve racking, stressful, exciting, tiring, confusing, and of course when contemplating a franchise it’s really not that different. In fact, it can be even more trying because there are so many different brands and concepts to consider nowadays. One of the major benefits of buying a franchise is the potential opportunity to do a lot of research beforehand. So whilst on your journey to finding out what best suits you, these are some of the things I would consider to be the black and white facts you should seek out from franchisors, and just as importantly, franchisees.

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“Often, franchisors will follow up later by calling the franchisees you interviewed to ask them what they thought about you.” Dean Salomone, Director, Rozzi’s Italian Canteen.

Let’s assume you have been given a disclosure statement already and have either understood it completely or have sought expert legal advice. If I could only ask a franchisor a few questions, they would be:

1. What’s your number-one focus?

The answer you want is “the success of our franchisees.” But if you hear “the growth of our store numbers and our international expansion plans”, I might start to question who is going to look after my interests.

2. What is the brand strategy?

Is it clear and are you comfortable investing your money if competitive forces are of a concern?

3. Why do franchisees get in trouble?

Try to identify exactly what’s going wrong for troubled franchisees. If the franchisor says, “they didn’t follow the system”, press on by asking in what way. You want to learn where the pressure point is, and what the difficult thing is to do successfully in this system.

4. How are conflicts resolved?

Ask franchisors for details of a recent franchisee conflict and how it was resolved. You’ll learn a lot about the franchisor’s respect for franchisees and its commitment to making them successful.

If the franchisor says there’s never been a conflict, be sceptical. Chances are if it has more than three franchisees, it has had a conflict at some stage already.

1. How well prepared were you when you opened?

5. Which skills do their franchisees need most?

In many franchises, the most successful franchisees have similar skills - they may be former marketing executives or sales managers. See if you fit into their “winning” groups.

6. How long does the process take?

I would always ask how long the process from enquiring to potentially operating as a franchise is. This traditionally should not be a quick process. If a franchisor is overly enthusiastic about signing you up without hearing much about your qualifications, that’s another warning sign. Good franchisors are selective, searching for the best qualified candidates who possess the skills and capital needed to succeed.

What to ask a franchisee? Once you’ve thoroughly grilled the franchisor, you’re ready to chat to franchisees. After establishing a rapport, you’ll want to ask hard questions - but in a way that the franchisee will feel comfortable answering. Again, I have some specific questions in mind:

This question covers many bases, from how forthcoming franchisors were to the thoroughness of their training program. If franchisees report that they were well prepared and things went smoothly, that’s a good sign. Unpleasant surprises or unexpected problems likely point to weaknesses in the franchisor’s support for its franchisees.

2. How effectively do the marketing programs bring customers to you?

Franchisors love to talk about the brand and building value, but what you need to know is whether customers will be coming in and spending money in your business. The answer you want? “From the minute we opened, we had business”.

3. What is the financial reality?

Nail down as many financial details as you can with the franchisees. You may have to speak with several different franchisees to get all your questions answered. How much does it really cost to open a franchise? How soon can you start making money? How much can you expect? Only franchisees can give you the real story.

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How to get the real black and white story from franchisees To get the best results from franchisees, don’t waste their time. Let the franchisees know you’ve learned a lot about the brand already. Present yourself professionally and as a serious prospect. The more they feel you’re close to joining their network the more information you will get. There’s another reason for making a good impression on franchisees. Often, franchisors will follow up later by calling the franchisees you interviewed to ask them what they thought about you. When you’re talking to franchisees, remember to consider their point of view, which may influence what they tell you. For instance, if you’re talking to a franchisee near the territory you want, he may tell you that business is awful because he wants the territory you covet to remain open to lessen his own competition, or so he can purchase it later. Alternatively, some franchisees may brag about their success because they’re

too proud to admit they’re really in trouble. Ultimately, you’ll have to use your gut instincts to decide whether a franchisee is being truthful, but if you detect a trend in any type of feedback there’s probably some truth to it. If possible, try to spend an entire day with at least one franchisee. That’s the only way to find out how franchisees spend their time and what they’re doing to be successful. It also gives you more time to build a relationship with the franchisee and hopefully get more honest and detailed answers. I would also advise asking franchisees how many of their ideas get implemented. The answer to this question will vary from franchise to franchise - some have very top-down management styles, while others encourage franchisee feedback and actively incorporate ideas from the field. If the franchisor isn’t very receptive to feedback, you have to decide whether you’d be happy in a cookie-cutter format, or you’d prefer a system in which you can be more entrepreneurial. There’s a bottom line to being a franchisee.

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You’re giving up a portion of your sales in royalties to the franchisor in exchange for its help in running your business. So factoring in all of the above, who do you trust your investment with? I know a good franchisor will be asking the same questions when assessing you. Dean has been a long-serving Victorian State Chapter committee member of the FCA and until August of 2011 the President of the Victorian Chapter whilst sitting on the National Board of Directors of the FCA. He has been an advisor to the sector for over 13 years, a franchisee and also worked with National Brands in development roles. Now Dean has combined two of his major passions – food and business – and in December 2012 he became a director of Rozzi’s Italian Canteen, a casual dining offer expanding nationally – buon appetito! Phone: 0438 009 449 Email: deans@rozzis.com.au


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WILL YOUR FRANCHISE BE C O MP E T I T I V E IN 5 Y E A R S ? Franchisors & franchisees Beware – identify Sustainable Points of Difference When buying a franchise you are committing to a five to ten year venture involving an investment that may cost hundreds of thousands of dollars to buy. You do so because you are looking for a business that can help you generate a strong income and an asset that can be sold for a premium when you are ready to exit. So before you get too involved in reviewing marketing material and franchise documents, step back and ask the big questions: • Why will customers want to keep buying this product or service from you over the longer term? • How will the customers want to buy the product or service in the future? • What is likely to happen to margins and profitability over time? • Can the underlying concept and model be evolved to maintain a competitive advantage? • Is the franchisor capable of keeping the concept and brand attractive in a changing market? One of the great advantages of joining a franchise network is you benefit from the innovation, intellectual property and investment of the franchisor. This takes a lot of the risk out of starting up your business and can fast track your profitability and provide you with a support network for running your business. However, franchising is not a guaranteed pathway to success in all cases. Markets change, technology changes, customer preferences

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“I love the commitment and enthusiasm of the business owners but their passion or thirst for growth can result in failure to properly address the customer and market fundamentals of their business.” Robert Graham, Managing Director, CEO Consulting.

change and also franchises change (or fail to adapt). Franchising is a way of doing business – it is not the business itself. So like any business purchase it is important to do your due diligence, take professional advice, and form views on critical success factors and long term viability. Over the years I have worked with many franchisors and start-ups. I love the commitment and enthusiasm of the business owners but their passion or thirst for growth can result in failure to properly address the customer and market fundamentals of their business. So as a buyer you need to be careful and look beyond the marketing pitch.

2. How will customers want to buy the product or service in the future?

Online shopping will continue to have a major impact as a growing distribution channel for many businesses. From a franchisor perspective it is increasingly important to have a multi-channel distribution strategy, where customers have a choice of channels to buy from you. But if you are a franchisee in such a business your rights may be limited to just your store, so the franchisor can sell goods online or through other means but you can only sell via your physical store.

Where a franchisor operates an online channel as well as a franchised store network, some franchisors recognise that stores play an important role with helping to build the brand or generating leads for online sales. Some franchisees may be rewarded for online sales that originated from their territory or area – this will depend on whether the franchise model includes territories and if the online sales can be accurately attributed to a franchisee or their area.

Alternatively, if you are a franchisor wanting to sell franchises, you should anticipate these issues and address them when developing your franchise or build them in to your strategic planning. Let’s look at the big 5 questions:

1. Why will customers want to keep buying this product or service from you over the longer term?

This is about the unique selling proposition (USP) – what makes your goods or services more attractive to customers than your competitors’ goods or services? Sometimes the advantage comes through brand strength, other times through product innovation, smart retailing techniques, pricing or service. The key thing to test here is sustainability of the USP over the longer term. Many products can be a short term success or fad, so what is it that will make your products or services sought after by customers over the five to ten year period?

This is about distribution channels and customers changing their shopping habits. If you are buying a retail or store based franchise, ask why will customers keep coming to you to buy? Is it your superior location, your interesting fit out, your product range or your reputation for service?

Given online sales are likely to increase in the future, franchisors and franchisees should look carefully at how the channels fit together and how they can complement each other rather than compete.

3. What is likely to happen to margins and profitability over time?

Most prudent franchisors undertake feasibility testing before launching and selling franchises. A key objective of this is to test the current and future viability of the franchise from both a franchisor and franchisee perspective.

For established businesses looking to add franchise capability this is usually easier than for start-up franchises because they at least have some historical trading data to use as a baseline. However, both scenarios are still trying to forecast the long term outcomes and in fast changing markets this is not an exact science and past performance is not always a good indicator of future performance. In fact, often a start-up franchise, usually seen as more risky due to not having a track record, can be better positioned for the long term because they do not have legacy systems or procedures that tie them to yesterday’s way of doing business. So if they have their strategy, supply lines and technology right, newer franchise systems can often operate a cheaper and more flexible business model, which may aid franchisee profitability.

One of the key trends in franchising over recent years has been towards low cost franchises, in particular service or mobile formats where no office or store is required and in turn, less or no staff. These formats run on a very low cost base and when economic conditions are favourable they have the flexibility to scale up rather than to be locked in to a high fixed cost base from day one.

The other thing to consider is the pace and strength of future competition and

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and innovator?” Then I look at the team around them and their financial depth to see if they have the right skills in the business and the financial means to see the program through over the longer term. A buyer should look for similar elements.

technology impacts. This can drive margins down quickly, so to withstand this your franchise needs to have a USP that provides options other than competing on price.

house. Once you have selected the right neighbourhood and block (your industry and competitors) you then need an architect to design the house to meet your requirements and then after that a builder to construct the house. For franchise systems the needs are the same. You need a professional design for your franchise model and then need it professionally built. People who DIY or don’t use an Architect usually end up with problems and an asset that is worth less than those who went about it properly.

4. Can the underlying concept and model be evolved to maintain a competitive advantage?

There are two issues here – the franchise concept and the franchise model.

Firstly the concept – even the most successful franchises like McDonald’s need to evolve over time. The introduction of their healthy choice menu and McCafes is a great example. Their market changed, and their customer preferences changed, so they had to adapt the concept whilst remaining true to their core brand values and business objectives. This is common in most industries. Consider one of the tough industries at the moment like video rental. With Foxtel, pirate downloads etc., many thought the days of the video store were gone but what we are seeing play out now are chains like Blockbuster and Video Ezy implementing smarter distribution channels. Their franchise stores can now offer self-serve video kiosks to extend their reach and access customers where the customers shop rather than having to come to the stores. Even in the Financial Services industry, franchise groups like RAMS Home Loans evolved to broaden their product suite with different types of loans and now even deposit taking accounts.

Secondly, the franchise model – I tell many of my franchisor clients that developing a franchise is like building a

A well designed franchise model together with well-prepared franchise documentation gives the franchisee the ability to deal with future changes instead of being locked in to old world paradigms. Nothing is worse than watching your competitors adapt and succeed while you are still doing things the old way.

5. Is the franchisor capable of keeping the concept and brand attractive in a changing market?

Even if you have a well-designed franchise and agreements, it can all count for nothing if the franchisor is not tuned in to the market or is not willing or able to reposition the franchise to refresh the USP. Buyers need to carefully interrogate the franchise owners and key decision makers to test their experience, attitude, financial position, leadership, and visionary qualities that are indicators of propensity to lead and run a successful franchise over time. One of the first things I discreetly test when approached to help a business owner franchise their business is “Are they likely to be a good franchisor? Do they have the rounded set of skills and attributes that go with being an entrepreneur, leader

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Many franchise founders are great small business operators, great sales people or great technicians – all of which are important qualities to underpin the business. However, being a franchisor is much more than that so buyers need to form a view on the franchisor and their team to determine if they are likely to keep growing and protecting the business in the changing market over the next five to ten year period that you intend to be a franchisee with them. Sometimes you may need professional help to extract this information, but it is essential to come away with a positive view because what may start out as an attractive franchise may over time fade or fail, leaving you with declining profitability and a business that is hard to sell. The flipside is you may take on a franchise with a dynamic group that will be a long term serious force in the market and in turn resulting in your franchise being highly successful and valuable.

So remember, look beyond the marketing material and before you jump into reviewing the legal documents get a good understanding of the underlying business USP, the sustainability of that USP, and whether the franchisor is switched on and capable of keeping your franchise ahead of the game in a competitive and changing market. CEO Consulting specialises in developing, launching and growing franchise systems in Australia and international markets. Services include Strategy, Feasibility, Analysis, Franchise Model Design, Franchise Development, Marketing and Franchisor Support. Robert is one of Australia’s leading Franchise experts and an authority on Franchise start ups. Formerly the Australian Head of Franchising for both ANZ Bank and Westpac as well as CEO of RAMS Home Loans. For further information contact Robert Graham, Managing Director at CEO Consulting: Phone: 1300 764 484 Email: robert@ceoconsulting.com.au Web: www.ceoconsulting.com.au


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Navigating the rapids of business Have you ever been white water rafting? In 1994, my late husband and I decided to be adventurous and give white water rafting a go. We were on a short holiday. After all, we couldn’t take too much time off as we were in business for ourselves and there were only so many days we believed we could be away from the business before things would surely go wrong. This was our little getaway so whilst in the midst of relaxation and “away time” we decided to experience the thrill and excitement of white water rafting. Now as beginners, our job was to sit in the raft, hold on tight, use the oars when we were instructed to, scream a little, feel terrified and experience a sense of thrill at the same time. Whilst we navigated our way around the rocks, through the rapids, we had one

ultimate objective: stay in the raft until we made it to the calmer waters below. At one point our raft did tip and after those few panicking moments we all eventually managed to get back into the raft, coughing and splattering as we climbed back in. It was terrifying, yet we found ourselves laughing with adrenalin rushing throughout our bodies as we got back in the raft secretly wanting to do it all over again. As a team we had to work together, aligning our actions and our focus directing the raft and manoeuvring it through to the calmer waters below. Every action required quick thinking, clear strategy and zero procrastination. Yes, at times we were uncertain, not knowing what would come next and whether the next move would take us further out of our comfort zone. At other times we were on top of the world and Masters of white water rafting. Once in calm waters, we wanted to do it again and

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take our experience to the next level. “Okay, who’s ready for the next level?” the instructor would ask. There was no turning back once we had made the decision to go for it and give the next level a go. We were fearful of what the unknown adventure would be like, but moving to the next level requires a certain type of attitude – ‘Feel the Fear and Do It Anyway!’ Operating a business is a bit like white water rafting. At times it’s scary, hectic, and sometimes unbelievably out of control. It takes you out of your comfort zone and pushes you into very unknown waters. At other times, it’s exciting, challenging and ultimately rewarding. The key to navigating your way through business successfully is the same as navigating your raft through the rapids. Once you know how and what to do, it’s important to be sure you implement that knowledge so that you arrive at calmer waters with confidence and without too many


“Business is the same. Once you reach a certain goal, milestone, or outcome, it’s not the end; it’s just the beginning of something bigger, better and more exciting.” Tania Allen, Founder, Vision Alliance.

knocks, bumps, cuts and bruises. It’s about making the right moves at the right time and in the right order, so that when you are ready to move to the next level you can do so with confidence. One of the keys to success in business is how you handle each stage of the journey. In our case, with white water rafting, each stage represented the starting point, the rocky road of the rapids, the free falling down the dips, and the calm waters below. Success was achieved as a result of many things aligning together, the quick manoeuvring, the quick decisions and action-taking before arriving at your destination. The destination is not the end of course; it is just the beginning, as you take your experience to new and higher levels. Business is the same. Once you reach a certain goal, milestone, or outcome, it’s not the end; it’s just the beginning of something bigger, better and more exciting. Doing the right things in the right order is crucial to success. Being sure you take consistent action every day and with a big focus on income generating activities and not just any activity is a key component to building the business of your dreams. I believe one of the key elements to achieving success is having an open mind and being committed to doing whatever it takes to learn new skills and knowledge, and following through by implementing that newfound knowledge and skill set.

What is your motivation? What is your motive for action? Growth starts to happen when you extend yourself beyond your comfort zone and beyond the edge. You must lean just over the edge every day to achieve exactly what it is you want. Extend yourself. Have the courage to push yourself beyond your own fears, embracing them so that you can make your life and your business phenomenal.

Make a commitment to develop yourself and learn whatever is necessary to be the best. Strengthen every weakness until they become your greatest strength.

Stop Blaming and Complaining and Just Get on With It! Have you ever been in a position where it was easier to blame outside circumstances or someone else for your shortfalls? It is unfortunate that for most of us it is quite a natural habit to blame outside circumstances and events for our lack of results. Because of our past programming and conditioning, many are living a very average way of life because they have chosen to accept that this is just the way life is. If you are someone who is convinced that your circumstances are because of the actions of others or outside circumstances, may I encourage you to open your mind and be prepared to make a decision today to change that level of thinking or to change your current circumstances. Think about it. How would your life or business change if you knew you were the only one responsible for your success? Not your franchisor, not anyone else, just you. There would be a lot more doing and a lot less complaining and blaming, wouldn’t there? There would also be a lot more people living the life they truly deserve. Learn to replace complaining with being proactive and taking action. If you find yourself in a situation that you don’t like, either make it work or simply leave. The worst thing you can do is stay and then complain later about it. Stop missing the pieces of the puzzle! They’re right in front of you. You are the only one responsible for your success! If you don’t have all of the pieces yet to build whatever it is you want, then it’s your responsibility to acquire them. The

world doesn’t owe you anything. You have to create what you want. Knowing you are responsible for your success and doing what it takes to be a success are two different things. In the past I always knew what I had to be doing to achieve higher levels of success, though I found myself not always doing those things consistently enough to produce the consistent results I wanted. My results would either be fantastic or just plain average. I started to see a clear pattern forming and it was a pattern I didn’t like. I set out on a path to really make a change in what I was thinking and doing so that my business and my life could progress forward and produce the consistent results I wanted every day. This was the time I truly took ownership of building a new foundation, taking a new direction and committing to taking consistent action towards the success I desired. What can you do right now to take true ownership of the direction and success of your business? Taking your business to the next level need not be complicated nor does it require excessively long hours or extremely hard work. What it does take is a commitment to your success, a commitment to taking consistent daily action, and doing the right things in the right order. Tania Allen is the founder of Vision Alliance and author of Franchise Profits. Vision Alliance is a business growth & franchise consulting firm that helps franchisors and franchisees get more out of business and more out of life. For more information about how Tania and her team can support you contact: Phone: 1300 76 49 20 or 0419 481 203 Email: tania@vision-alliance.com Web: www.vision-alliance.com

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10 Tips To Help Your Business Thrive

There’s more to running a franchise than sometimes meets the eye. Successful business owners spend their time focusing on running business better – on ways to make more sales, improve productivity and increase profit. And that doesn’t always seem like it meshes with following the system, implementing the manual and other things that are so much part of franchising. But the reality is your success depends on your own initiative, not only following the operations manual. So

where do you learn this? One of the best ways is to find out what the successful people do. It can be tricky (and time consuming) to see exactly what this is, but over the years we’ve identified ten things that will help you fast track your own success.

1

Have a plan

If you have no plan, you may be busy but you’re likely to end up disappointed by your results. Planning means working out where you want to get to, and how you’ll get there. It includes thinking about the opportunities and risks ahead, and how you’ll deal with them. From a financial point of view, you need to know what sales are required so you can pay your business and personal bills, and put something into savings. From an

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operations perspective, it means regularly looking at each area of the business and identifying how to increase sales, improve productivity, develop your team, and be profitable.

2

Know the Numbers

Your financial results show the results of your activity and help identify areas that need attention. Keeping track of them will help you run a better business. There are two aspects to this: Planning and Monitoring. Planning includes preparing a budget and cash flow forecast. Monitoring is reviewing the key numbers that show how you are doing compared to your target. What are the numbers to look at? Examples include sales, cost of goods sold, and net profit.


“The reality is your success depends on your own initiative, not only following the operations manual.” Peter Knight and Kate Groom, Smart Franchise.

Also pay attention to operational numbers like number of inquiries, number of customers and average transaction value. Your franchisor should be able to identify the most helpful ones.

3

Manage Your Expenses

Cost control is important but managing expenses is not simply about cutting costs. It’s about getting good value from what you spend. The best place to start is with a ‘line-by-line review’ of the most recent Income Statement. Challenge each expense item from A to Z. Ask, “How can we eliminate or reduce the expense, or get better value from what we are spending?” Don’t simply slash away at all costs - the idea is to ‘cut fat not muscle.’ Not all costs can or should be cut. In fact, you may need to increase some expenditure to help you succeed.

4

Manage Your Cash Flow

Your business needs cash in the bank to pay the bills, and cash coming in the future so you can keep doing so. Having good cash flow means you won’t be faced with cutting expenses in vital areas that are needed to support your business. Forward planning is essential, and for this you need a cash flow forecast. It will help

you see the pattern of cash flow throughout the year. You can then manage and improve it. When it comes to improving cash flow, consistent, profitable sales, and good stock and debtor management will help. Hopefully your franchisor has worked out the systems to help – be sure to ask!

5

Maximize Return on Investment

One of the shrewdest maxims of business is to maximize your return on investment. What is your investment? Anything you spend time or money on. The big ones are easy to find, they include staff wages, your physical location and equipment. Marketing expenditure is another. In addition to these, there’s another investment you make on a daily basis: your own time. If you want better results, one of the most important areas to consider is where you spend your time. The question then becomes “How can we use these investments more effectively to make more sales, produce more with the same resources and generate more profits?”

6

Invigorate Local Marketing

Marketing isn’t just the job of the franchisor. Successful franchisees focus on their own efforts to promote and

grow their business. The starting point is to make sure people know about your business. You must also answer the question: Why should they buy from you? Regularly invigorate your marketing with local activities and by promoting new products and services. Learn about and use a variety of marketing activities, including social media, collaboration with other businesses and networking. Look for improvements in areas such as of number of prospects, customers and sales. Regularly compare results with your goals and make adjustments where needed.

7

Talk to Your Customers

If it weren’t for customers we wouldn’t have a business. Marketing will bring prospective customers to your business, but you’ve still got to make a sale. The best way to do this is to talk to your prospects and customers, and listen to what they tell you. Find out what people want, let them know how you can help them - and most important, ask for the sale! Nothing happens in business until somebody makes a sale. That’s why top performers keep their own sales skills, and those of their staff updated, and sales targets front of mind.

Business Franchise Australia and New Zealand 91


e x pert a dv ice

8

Talk to Your Team

Think of a successful business and you’ll probably notice it has great staff. They are likely to be positive, enthusiastic and they make it easy to do business. Effective teamwork is a foundation for a productive and profitable business - so it’s important to make the most of your people. How do you do this? Most people want to make a contribution and learn new things that help them progress. They want to be appreciated and valued. So, give them clear responsibilities, develop their skills, make their job interesting and give them the chance to progress.

9

Network Like Crazy

Networking with other people in business can help you build sales and increase customer loyalty. The key to networking is this: it’s not who you are talking to that is your likely customer, but its who they know! So relax, and just get to know them.

Learn something about their business and let them know what you do. Your network also opens up opportunities for joint promotions and local events. Make the most of the opportunity, and get involved! Apart from this, you can often pick up good ideas from other business owners. Get to know what others do well, and see what you can apply in your business.

10

Take Action

Successful people tend to be very persistent. They don’t just collect ideas – they take action. They make the most of the good times, persevere through difficult times, and constantly seek to improve their business. One of the best ways to stay ‘in action’ is to review your progress each month. Did you achieve your goals? If so, great! See what you can do to improve on that. If you didn’t, what happened? Was the goal achievable, did you do the actions you said you would and they didn’t work, or did you not do the actions? Look back at the past to learn from it, but

92 Business Franchise Australia and New Zealand

don’t get caught up. Identify corrective actions, monitor results and adjust as required. There you have ten things to think about as you start in your franchise. But it’s not just a question of reading it – you’ll need to put the tips into action. That’s why persistence is so important. Creating a successful franchise doesn’t happen overnight. But if you find ways to apply these tips in your own business, combined with the franchise system, you’ve taken huge steps towards achieving the success you dream of. Peter Knight, FCPA, and Kate Groom of Smart Franchise are experts in business and financial mangement. They run workshops and seminars, and present keynote speeches that help people improve business performance. For more information: Web: Email:

www.smartfranchise.com.au peter.knight@smartfranchise. com.au kate.groom@smartfranchise. com.au


YOUR KEY TO FUTURE SUCCESS

JOIN A COMMUNITY THAT WILL GET YOU THERE IN STYLE.

Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. A belief in your ability to change your life and courage to do it is all you need. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse has been built on passion and creativity. t &YUFOTJWF BOE POHPJOH USBJOJOH QSPHSBNT t " QSPWFO UVSOLFZ PQFSBUJPO t " GPDVT PO XPSME DMBTT TFSWJDF t .VMUJQMF SFWFOVF TUSFBNT JODMVEJOH SFUBJM TBMPO QJFSDJOH BOE CFBVUZ TFSWJDFT t &YDMVTJWF TUPDLJTUT PG XPSME MFBEJOH CSBOET XJUI UIF NPTU MVDSBUJWF NFSDIBOEJTF USBEJOH UFSNT XPSMEXJEF Come and join our community of leaders and start your new future today. We’d love to hear from you.

With opportunities currently available in: WA: Perth and metropolitan QLD: Brisbane metropolitan and regional NSW: Sydney metropolitan and region SA: Adelaide metropolitan VIC: Melbourne metropolitan Contact Peter Fiasco for a confidential discussion on 03 9234 2200

hairhousewarehouse.com.au Business Franchise Australia and New Zealand 93


fi nanci a l A dv ice e xpert ADVICE

How to Avoid a Cashflow Crisis A six step guide to improving your cashflow for growing and slowing businesses There are two ways to get into a cashflow crisis; growing or slowing your business. In fast growing and seasonal businesses (retail or service) increasing sales mean that you need higher stock levels or more work in progress which you will need to fund before getting paid by your customers. In a slowing business cost-cutting measures such as smaller premises and reducing employee numbers won’t be enough to ride out a cashflow crisis. Your previous cost levels and fees involved in exiting contracts will impact your cash position for a significant time. The power of this six step guide is illustrated by a Sunnydale Dairy business that found a year’s worth of revenue tied up in their business with the assistance of their local business banker and CashScan (Westpac’s in-bank cash analysis tool).

WORKING CAPITAL CYCLE If you want to understand how your business is trading from a cashflow perspective it is essential to understand the Working Capital Cycle. Every business, regardless of what they do, has a working capital cycle (WCC) which ties up available cash. To start any business, cash is required. This cash is then used to purchase stock or equipment in order to generate a sale. When the stock is sold it is either by way of a cash sale or is charged to an account, creating a debtor. When the debt is collected the WCC

continues. In a service industry the stock is ‘work in progress’. Imagine that the stock a business buys sits on the shelf, on average, for fifty five days before it is sold and that it takes an average of forty five days to collect the debtors. Each dollar tied up in the WCC takes one hundred days before it returns to the cash position where it can be used again to purchase more stock as shown below: While waiting for that dollar to return, more stock has to be purchased to keep the business operating and to do so, many businesses use their overdraft facility which is costing them money. If there is no overdraft, they are using their credit funds that could be better used elsewhere. The faster you can turn the WCC, the faster the dollar returns and the less overdraft or surplus funds you have to use. Improperly managed the WCC can be your worst enemy and the cause of a cashflow crisis.

expenses and incorrect asset finance. Unnecessary expenses are often found by looking at the capacity of the business compared to its current or forecast requirements. Examples include premises space/location, IT maintenance contracts and redundant stock. The golden rule when financing a business is to match the life of the loan to the life of the asset. You wouldn’t buy a house with your credit card, so why would you use an overdraft facility to buy equipment that you expect to use for the next three years? Step 3 – Collect debtors and establish appropriate procedures Asking your customers to pay just a few days earlier could have a dramatic impact on the amount of cash you have in hand. Some strategies to help achieve this are: • issue invoices on the first day, not a week later • charge an upfront deposit

SO HOW CAN I RUN MY BUSINESS TO AVOID A CASHFLOW CRISIS?

• create and communicate a terms of trade policy with customers

Step 1 – Forecast with a cashflow budget

• always check credit references

A cashflow budget is a powerful financial tool to help you predict the availability of cash in your business at any point in time. Using your previous sales and expense records coupled with reasonable assumptions about the year ahead you can quickly determine if there could be any crisis points ahead. Step 2 – Eliminate cash-draining initiatives These fall into two categories: unnecessary

94 Business Franchise Australia and New Zealand

• put credit control procedures in place to minimise bad debts • collect your overdue debts and work with customers to avoid the same issue recurring

Your credit control procedures should monitor debtors and ensure that collecting on accounts is a priority, not a once per month event. Establishing a clear debt collection system will give you the ability to minimise the impact of bad debtors; a $5,000 debt can quickly balloon to $20,000 if proper procedures are not executed.


“You will find that the cashflow budget tool may become one of your most important and powerful ongoing financial management tools.” Sharen Verrenkamp, Senior Business Development Manager, Franchising and Associates, Westpac.

An example where this strategy was implemented was a regional hardware store that was passed down from father to son. A quick review showed that 90 per cent of sales were on account. This was paralysing their cashflow so with two simple steps they saved time and administration costs: • small accounts were stopped and all sales to these customers became cash only

• a merchant facility was setup to give customers a more convenient way to pay (instead of cash and cheque being the only options) Within two months, 40 per cent of sales were on account and average debtor days had reduced by 15. This seemingly simple change greatly reduced the credit requirements for this business. Step 4 – Control your stock Increasing stock turnover can rapidly consume cash on hand. To manage this, look into: • improving stock forecasting • sales pipeline management

• building supplier relationships

• adjusting your pricing strategy • additional financing

Decreasing stock turnover can mean that significant amounts of cash are tied up in stock. To manage this, look into: • sales pipeline management

• ‘just in time’ ordering systems

• only ordering when you need to • outsourcing

• stock management systems • centralised monitoring

Conducting an inventory review can be one of the easiest ways to liberate cash in your business. Knowing which products are selling and how quickly will enable you to adjust your ordering patterns. You may be able to achieve higher discounts on larger orders of fast-moving stock and you won’t

have cash tied up in slower moving items. Another example is a Queensland saddlery which discovered they had two and a half years of stock on hand. The store was cluttered and unappealing. When they reviewed sales, 80 per cent of sales were from 20 per cent of their range and many items hadn’t sold for over six months. Urgent action was needed so they: • immediately stopped ordering stock

• sent some excess stock back to suppliers

Recalculate your cashflow budget (Step 1) with your new scenario to see the effects on your cashflow. Step 6 – Adjust your financing Once you have completed the above steps you may identify some short-term financing requirements going forwards. Armed with the above information you will be in a strong position to talk to your local business banker and explore options for financing to cover these needs.

• renegotiated with suppliers to establish smaller, monthly orders for core stock

An appropriate overdraft facility can smooth out periods of high cash demand. You may also be able to refinance your long-term assets with a more appropriately termed loan.

• donated remaining stock to charities which helped to boost their profile

Finally, you will find that the cashflow budget tool may become one of your most important and powerful ongoing financial management tools. By reviewing this monthly, you will stay on top of your finances and may be able to avoid a cashflow crisis.

• ran clearance sales to sell old and unreturnable stock

Within six months they had reduced stock levels to one year of stock, vastly improving their cash position and the procedures that they established have helped reduce the likelihood of them getting into financial trouble again. Step 5 – Review your pricing Many business operators base their prices on the competition. They assume that the competition has their pricing structure right, they are making a profit and they have the same cost structures as themselves. In reality every business has a different cost structure and it is important to understand yours. Break even analysis is a simple financial tool which uses your fixed costs, variable costs combined with your sales volumes to determine your profit margin. It is easily adjusted to show:

Sharen Verrenkamp is a Business Development Manager with Westpac. She specialises in the franchise sector and holds a Bachelor of Business. Westpac continues their long- term commitment to franchising in Australia. The bank has a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Sharen at: Phone: 0438 426 319 Email: sverrenkamp@westpac.com.au Web: www.westpac.com.au

• how many extra sales you have to generate to compensate for reducing your price • how much can your sales reduce if you increase your price before impacting your bottom line The main impact on cashflow is the time between stock purchases or work in progress and recouping your costs.

Business Franchise Australia and New Zealand 95


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hot to pics

Behind the

headlines Tecoma protestors take franchise fight from Melbourne to Chicago A group of protestors who oppose the construction of a McDonald’s outlet at Tecoma in the Dandenong Ranges near Melbourne have raised $36,000 through crowdfunding to take their protest to the international headquarters of McDonald’s in Chicago. The group aim to present the results of an online petition featuring more than 93,000 signatures protesting against the store to McDonald’s international CEO Don Thompson. Additionally, the group has also taken out a large advertisement in the Chicago Tribune, which has led to further publicity for the group from the newspaper and NBC Chicago. Meanwhile a Supreme Court judge has urged the protestors and McDonald’s not to “throw common sense out the window” and to consult with a mediator by November 12 or else return to Court. The Supreme Court has extended an injunction against a group of protestors known as the “Tecoma Eight” to prevent them from trespassing and blocking construction traffic for a new McDonald’s outlet to be built in the Dandenong Ranges township near Melbourne. McDonald’s are also suing the protestors for interfering with its use of the land, and for damages arising from construction delays, which the company estimates will cost it

lost sales of $10,000 per day if the originally scheduled opening date of November 15 is not met. The company is yet to specify the total amount of damages it is seeking, but has indicated that it is incurring costs of more than $58,000 per week in security and construction delay costs since work on the site stopped on July 3.

Automotive franchisor abandons franchisees after just 12 months The shock withdrawal of automotive franchisor Opel from the Australian market barely one year since it entered has left its 20 franchised dealers with useless five-year franchise agreements, half-built showrooms, and significant losses from their investment in the brand. Opel made the shock announcement in early August, less than 12 months after entering the Australian market last September. A company spokesman said Opel could not sell its cars at the price needed to meet its volume targets, which were expected to reach 15,000 sales within three years, but which were reported as reaching just 1,530 by June 30 this year. Opel has indicated it will pay for unsold stock, demonstrator stock and signage, but dealers with showrooms under construction, or who have made losses on sales while building the brand may be expecting much larger payments. Others are concerned that

Jason Gehrke, Director, Franchise Advisory Centre.

their customers will abandon them and are calculating the long-term damage to their reputations and other dealership operations. Warranty and service obligations for Opel vehicles will be performed by Holden.

Rental franchisees forced out of business for customer ripoffs The franchisees of two separate appliance rental chains have been sanctioned by the Australian Securities and Investments Commission (ASIC) for irresponsible lending practices and for failing to hold proper credit licenses. Franchisees of Zaam Rentals were found to be targeting indigenous communities, did not make reasonable inquiries about their customers’ financial positions, and failed to provide credit guides or other requirement information. ASIC surveillance of another group of franchisees from Mobile Rentals (whose franchisor had their credit license cancelled by ASIC earlier this year), revealed that franchisees took none of the required responsible lending steps when entering into rental agreements. Franchisees of both systems have been forced to exit the credit industry and give written undertakings, as well as to communicate to their former customers that their rental agreements have been terminated, that they can keep their rental products, and that no further payments are required.

Business Franchise Australia and New Zealand 97


hot to pics

Travel chain to rebrand all Australian outlets at franchisor’s cost Jetset Travelworld Group, the owner of Harvey World Travel, Jetset and Travelworld, has announced it will convert all three brands to a new brand ‘Helloworld’, starting early next year. The three travel brands came together following the merger of Jetset Travelworld and Stella Travel Service in 2010. The single brand to be introduced next year will help the company leverage its large scale into customer recognition, with the entrylevel changeover cost to be funded by the franchisor, not the franchisees

Kitchenware chain in administration Australian kitchenware retailer King of Knives has been placed in voluntary administration by the company’s directors after the withdrawal of support by a major financier. The 25 year old business has 60 stores

in Australia and New Zealand, however administrators at BRI Ferrier are continuing to trade the business in anticipation of turning it around. The brand’s franchisees are not immediately affected by the administration, however four companyowned stores in New Zealand are likely to be closed, as well as some of the 40 companyowned stores in Australia.

penalty of up to one year’s imprisonment. The franchisee also directed several store managers to turn a blind eye to the irregular employment arrangements.

Nando’s multi-unit franchisee charged for illegally employing foreign workers

Drive-throughs added to coffe and pie retail franchises

A franchisee of 13 Nandos outlets in Melbourne has been charged with 22 visa violations after hiring around 20 students from Indonesia over two and half years, with potentially up to 90 charges to be laid as a result of a Department of Immigration and Citizenship investigation. The franchisee, Anni Kartawidjaja, is accused of organising the Indonesians to travel to Australia, and providing accommodation at her properties, but deducting rent, phone and heating costs from their salaries. The charges carry a

98 Business Franchise Australia and New Zealand

Nando’s Australia, which has 271 restaurants employing 5,000 people, stated that it has strict policies about lawful employment and fair work practices, and that it was also investigating the franchisee.

Gloria Jeans has announced it will open its first drive-through coffee outlet in Australia at North Lakes, a growing residential area north of Brisbane. It joins other coffee franchises such as Muzz Buzz and Zaraffa’s to offer drive-through coffee. Meanwhile pie franchise Pie Face has also announced it will open its first drive-through at Nerang, near the Gold Coast, and include drive-throughs in future stores to be opened in New Zealand and the United States. The company has also announced it will commence selling a new pizza product called ‘pieza’.


PROFESSIONAL SERVICES LISTINGS

HARMANS LAWYERS

Liston Landers

485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz

242-246 Glenferrie Road, Malvern VIC 3144 P 03 9509 0366 F 03 9509 3076 Contact Shaun Newton or Kieran Liston

If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help.

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Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for. Our Franchising Team can assist with a full range of franchise related services, including: - Legal rights and obligations under franchise documentation - Business structures and asset protection structures - Financing issues - Employment issues and health and safety - Lease arrangements and agreements - Terms of trade - Dispute resolution We are members of the Franchise Association of New Zealand

the magazine for franchisees

Franchise

E shaun.newton@listonlanders.com.au E Kieran.liston@listonlanders.com.au

We can help you to make strategic and successful franchise decisions. We are: Experienced: A Chartered Accounting and Financial Advisory Firm, acting in the best interests of clients (in Melbourne and regional Victoria) for over 30 years. Recognised as leaders in the field, with representation on the panels of ‘Big Four’ banks and Franchise Council of Australia membership.

Providers of a complete franchise solution: • Valuations (APES 225 compliant). • Establishment, expansion and recruitment advice for franchisors. • Selection, evaluation, purchase/sales and tax advice for franchisees. • Provision of annual tax and compliance services. • Independent appraisals. • Analysis of goals, risks and benefits. Knowledgeable: with a detailed understanding of over 30 franchise systems, and an ongoing commitment to continuing professional development. Reliable: providing valuation assurances to your financier and a five-day valuation turnaround. Client-focused: Direct and after-hours access to partners, professionalism and empathy for individuals and businesses. Committed to helping our clients achieve a lifetime of financial independence. Contact us today.

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Level 33 140 William Street Melbourne VIC 3000 P 03 9242 4744 F 03 9242 4777 Contact Ed Browne E franchising@madgwicks.com.au www.madgwicks.com.au Madgwicks’ Franchising team has experience across a variety offranchise industries representing both franchisors and franchisees. Our Franchise team is made up of lawyers from across our Business Services, Litigation and Property areas, enabling the group to address the broad nature of legal needs associated with establishing and operating a franchise system. A key part of our service delivery is partner accessibility and in-depth industry knowledge. Our services include: • Franchise agreements and disclosure documents • Advice on business structures appropriate for franchise systems • Franchising Code of Conduct Compliance

• Trade Practices advice including ACCC notification/authorisations • Acquisition, disposal, joint venture and partnership advice • Supplier and terms of trade agreements • Workplace Relations

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Business Franchise Australia and New Zealand 99


PROFESSIONAL SERVICES LISTINGS

Revive Projects

Wisewould Mahony Lawyers

77-79 Canterbury Road, Canterbury VIC 3126

419-425 Collins Street, Melbourne VIC 3000

P 1300 836 863 F (+613) 9886 5371 Contact Maria Abadilla

P 03 9629 8333 F 03 9629 4035 Contact Robert Toth

E admin@reviveprojects.com.au www.reviveprojects.com.au Let Australia’s award-winning franchise marketing agency Attract + Engage + Retain your customers If you’re a franchise or considering expanding your business into one, you need solid marketing support. In-house marketing is expensive, and a small in-house team can only do so much. It’s also hard to keep the idea-well fresh all the time. Revive Projects has been helping franchises attract, engage and retain customers since 2007. Our multi-talented, hand-picked team of senior marketing executives, copywriters and PR specialists develops integrated and outcome-focussed solutions by catering to your unique business needs. As our clients, you get: • Increased visibility among your prospects

E robert.toth@wisemah.com.au Lawyers in love….with Franchising www.wisewouldmahony.com.au 25 Years of Specialised Franchise Industry Knowledge Member Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), Franchise Association of New Zealand (FANZ) & US Commercial Service. FIXED COST FEES to Franchisors & Franchisees based on scope of works. No hourly rate surprises! Services Provided • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements

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2013 NAB FCA Excellence in Franchising Awards Winners THE FRANCHISE INDUSTRY’S NIGHT OF NIGHTS The Franchise Council of Australia honoured the ‘Best of the Best’ in the franchise sector at the 2013 NAB FCA Excellence in Franchising Awards Gala Dinner on October 22nd.

It’s a night of celebration for many franchises – as they are recognised for their systems, their franchisees, their marketing strategies and their innovation – as well as other categories. The awards held at state and national level each year represent the pinnacle of franchise achievement and are a celebration of the hard working teams and individuals in the industry.

To make sure you receive your digital copy of our feature publication showcasing this ‘Night of Nights’, sign up for our newsletter at

www.businessfranchiseaustralia.com.au. Business Franchise Australia and New Zealand 101


FRANCHISE LISTINGS FRANCHISE

NATURE OF BUSINESS

OUTLETS

INITIAL FEE

MIN INVEST

FCA

$32,500

$47,000 + GST + Vehicle

630 across AUS & NZ

FCA & FANZ

-

$30% or $150,000

RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES

79

FCA

$49,900 + GST

$250,000 + GST

FOOD RETAIL

SA: 10 VIC 3

-

$45,000

$160,000 - $260,000

BEAUTY AND CUSTOMER SERVICE EXCELLENCE

17

FCA

$45,000

$250,000 - $350,000

BRIGHT EYES FRANCHISING PTY LTD The Dock – Retailer House, Level 1, Unit 3, 321 Kelvin Grove Road, Kelvin Grove QLD 4059 Ph: 1800 178 251 Fax: 07 3056 3322 Email: enquiries@brighteyes.com.au Website: www.brighteyes.com.au

SUNGLASS RETAILER

46

Franchise Council of Australia

POA

Varies from store to store

CAFE 2U Building 7, 81 Frenchs Forest Road, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: franchises@cafe2u.com.au Website: www.cafe2u.com

MOBILE COFFEE VANS

Over 200 worldwide

FCA, FANZ, IFA

INITIAL FEE INCLUDED IN PURCHASE PRICE

FROM $129,990

CHIPMUNKS PLAYLAND In Port Building, 9-13 George Street, Port Chalmers 9023 Dunedin NZ Ph: +64 3 472 8480 Email: info@chipmunksplayland.com Website: www.chipmunksplayland.com.au

PLAY AREA AND CAFÉ

34

-

POA

POA

CORAL HOMES 36 Laver Drive, Robina QLD 4226 Ph: 07 5585 2555 Fax: 07 5585 2500 Email: franchising@coralhomes.com.au Website: www.coralhomes.com.au

NEW HOME CONSTRUCTION

30+corporate outlets

FCA

POA

POA

CREMA ESPRESSO 118 Varsity Parade, Varsity Lakes QLD 4227 Ph: 07 5562 5516 Fax: 07 5562 5543 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au

PREMIUM CAFÉ FRANCHISE

9

ELLA BACHÉ 2 Lambs Road, Artarmon NSW 2064 Ph: 02 9432 5016 Fax: 02 9439 6267 Email: michelle@ellabache.com.au Website: www.franchise.ellabache.com.au

SKIN CARE, BEAUTY INDUSTRY

ENERGIS 17 McClure Road, Kensington Melbourne VIC Ph: 1300 782 217 Mobile: 0407 105613 Email: franchise@energis.com.au Website: www.energis.com.au/franchise

SOLAR & ENERGY PRODUCT DISTRIBUTION

-

DIGITAL STRATEGIES AND SOLUTIONS

FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: reception@fastapasta.com.au Website: www.fastapasta.com.au

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

ELECTRICAL TEST AND TAG

37

BAKERS DELIGHT Level 1, 293 Camberwell Road, Camberwell VIC 3124 Ph: 1300 309 759 Email: franchiserecruitment@bakersdelight.com.au Website: www.bakersdelight.com.au

BAKERY RETAIL BUSINESS

BATTERY WORLD AUSTRALIA PO Box 46, Brisbane Market, QLD 4106 Ph: 07 3373 1764 Fax: 07 3373 1770 Email: admin@batteryworld.com.au Website: www.batteryworld.com.au/franchising BING BOY PTY LTD 308-320 (Shop 8) Grange Road, Kidman Park SA 5025 Ph: 08 8356 2248 Fax: 08 8356 0840 Email: info@bingboy.com.au Website: www.bingboy.com.au BRAZILIAN BEAUTY (AUST) PTY LTD 45 Crosby Road, Albion QLD 4010 Ph: 07 3262 8984 Fax: 07 3857 6212 Email: headoffice@brazilianbeauty.com.au Website: www.brazilianbeauty.com.au

ASSOC MEMBER

Franchise Council $45,000 + GST Incl. Training of Australia

160+ Franchise Council Nationally of Australia (FCA)

Dependent on Site conditions $250k$450K

$22,000

$100,000 - $300,000

-

-

$65,000 + GST

5

-

-

$50,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

39

Franchise Council of Australia

$50,000 + GST

$650,000 - $950,000

FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 02 8263 3900 Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au

COURIER SERVICE

650+

FCA & FANZ

From $25K+GST

$25K+GST

FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz

COURIER SERVICE

250+

FCA & FANZ

$10K

$10K

WOMEN’S HEALTH & FITNESS CLUBS

75

-

$55,000

$450,000

AUSTRALIA’S LARGEST BOOKKEEPING FRANCHISE

150

FCA, AAT, Inst. Of Certified Bookkeepers

$32,000 + GST

$38,000 (Franchise fee & equipment)

FLASH BY MORFFEW PO Box 626, Potts Point NSW 1335 Ph: 0416 225 311 Fax: 02 9389 8816 Email: mark@morffewphotos.com Website: www.flashbymorffew.com

POP-UP KIDS PHOTOGRAPHIC STUDIO

5

n/a

n/a

$80,000

HAIRHOUSE WAREHOUSE Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 03 9234 2200 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hairhousewarehouse.com.au

RETAiL, salon, piercing, beautycare

142

FCA, hbia

$66,000 for new store

$100,000

MOBILE FRANCHISE – HATCHING PROGRAM DELIVERY

10

-

$10,000 (Incl. in cost)

$32,600

IN-HOME CARE FOR SENIORS

19

Franchise Council $52,000 inc GST of Australia

$80,000

INSPECT MY HOME 4/9 Millenium Circuit, Helensvale, Gold Coast QLD 4212 Ph: 1300 337 447 Email: info@inspectmyhome.com.au Website: www.inspectmyhome.com.au

PROPERTY INSPECTION SERVICES

1 Franchisee/2 Company Owned

FCA

-

$25,000

INXPRESS Unit 1/26 Flinders Parade, North Lakes QLD 4509 Ph: 1300 469 773 Fax: 1300 030 066 Email: sales.au@inxpress.com Website: www.inxpress.com.au

COMPETITIVE GLOBAL EXPRESS FREIGHT FRANCHISE

200+ franchises across 15 countries

FCA

$45,000

$45,000

JESTERS FRANCHISING PTY LTD Unit 1, 34 Prindiville Drive, Wangara Ph: 08 9309 2200 Fax: 08 9309 2199 Email: information@jesters.com.au Website: www.jesters.com.au

GOURMET FOOD TO GO

54

-

$40,000

$220,000 From $50,000 + GST

EXA WEB SOLUTIONS 1/1186 Toorak Road Camberwell VIC 3124 Ph: 03 9092 6699 Fax: 03 9923 6688 Email: biljana.stephens@exa.com.au Website: www.exa.com.au

FERNWOOD FITNESS Level 1, 475 Flinders Lane, Melbourne 3000 Ph: 03 9630 8810 Fax: 03 9630 8830 Email: maree.rogers@fernwoodfitness.com.au FIRST CLASS ACCOUNTS Suite 8, 34-36 Glenferrie Drive, Robina QLD 4226 Ph: 1800 118 611 Fax: 07 5578 9028 Email: info@firstclassaccounts.com Website: www.firstclassaccounts.com

HENNY PENNY HATCHING PO Box 1376 Kenmore QLD 4069 Ph: 0402 853 213 Fax: 07 3201 0336 Email: hphdale@hotmail.com Website: www.hennypennyhatching.com.au HOME INSTEAD SENIOR CARE L3 Toowong Tower, 9 Sherwood Road, Toowong QLD 4066 Ph: 07 3720 8400 Fax: 07 3720 8644 Email: franchise@homeinstead.com.au Website: www.homeinstead.com.au

FENCE INSTALLATION SERVICES

APPROX 150

MBA, FCA

Included in Purchase Price

HAIRDRESSING

175 across Australia & New Zealand

FCA

$38.5K

$160K-$240K

DOMESTIC & COMMERCIAL CONCRETE EDGING

300+

-

POA

POA

COFFEE SPECIALISTS

6

-

-

$180,000 min + GST

LISTEN TO READ 2 Flagstaff St Engadine NSW 2233 Phone: 1300 473 234 / 0410 618 472 Email: hello@ListenToRead.com.au Website: www.ListenToRead.com.au

TUTORING AND MULTISENSORY READING INSTRUCTION

Franchise Council of Australia

$12,000

-

$80,000

MR TAX REFUND Level 1 / 80 Bulwer Street Perth WA 6000 Ph: 1300 829 227 Fax: 1800 329 829 Email: franchise@mrtaxrefund.com.au Website: www.mrtaxrefund.com.au

REGISTERED TAX AGENT

8

NTAA, AIM, AICD

$1,995

$9,990

LIFESTYLE SWIMMING POOL BUILDERS

25

fca, hia, mba

$35K

$100K

JIM’S FENCING PO Box 686 Mount Martha VIC 3934 Ph: 131 546 Email: franchise.sales@jimsfencing.net Website: www.jimsfencing.net JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 1800 334 498 Fax: AUS 02 9527 5144 Email: bdm@justcuts.com Website: www.justcuts.com KWIK KERB PO Box 103, Mt Ommaney QLD 4074 Ph: 1800 773 231 Fax: 07 3717 6777 Email: kkinfo@kwikkerb.com.au Website: www.kwikkerb.com.au LAVA CARTS PTY LTD PO Box 3, Mooloomaba QLD 4557 Ph: 0458 202 649 Email: manager@lavacarts.com.au Website: www.lavacarts.com.au

NARELLAN POOLS Suite 201, 2-8 Brookhollow Avenue, Baulkham Hills NSW 2153 Ph: 02 9684 8000 Fax: 02 9684 1867 Email: careers@narellanpools.com.au Website: www.narellanpools.com.au

102 Business Franchise Australia and New Zealand


FRANCHISE LISTINGS FRANCHISE

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

ASIAN INSPIRED QUALITY NOODLE BASED CUISINE

70 PLUS

FCA

$40,000

$250-$280K

COMMERCIAL & EDUCATION CLEANING SERVICES

4

FCA

From $15,000

$35,000 Including franchise fee

24 HOUR GYM FRANCHISE

97

IHRSA, FITNESS AUSTRALIA, FCA

$10,000

$289,000 INCLUDING EQUIPMENT

RED ROOSTER FOODS PTY LTD Level 1, Unit 17, 202 Ferntree Gully Road Notting Hill VIC 3168 Ph: 03 9582 8716 Fax: 03 9582 8744 Email: gary.glen@red-rooster.com.au Website: www.redrooster.com.au

FAST FOOD OVEN ROASTED CHICKEN

370+

FCA

$50K

$450K+

RENT THE ROO PO Box 2150, Howrah LPO TAS 7018 Ph: 03 6247 3826 Fax: 03 6247 3853 Email: franchising@renttheroo.com Website: www.renttheroo.com.au

FURNITURE AND APPLIANCE 60 territories RENTALS

FCA

$150,000

$250,000

NOODLE BOX 13A/663 Victoria Street Abbotsford VIC 3067 Ph: 03 8851 4200 Fax: 03 8851 4277 Mobile: 0416 256 338 Email: franchise@noodlebox.com.au/franchise Website: www.noodlebox.com.au/franchise PARASERVE (VIC) PTY LTD 3/16 Turbo Drive, Bayswater North, VIC 3153 Ph: 1800 041 876 Fax: 03 9729 7722 Email: csc@paraserve.com Website: www.paraserve.com.au PLUS FITNESS 24/7 PO Box 76, Camden NSW 2570 Ph: 02 4648 2099 Fax: 02 8572 8222 Email: info@plusfitness.com.au Website: www.plusfitness247.com.au

SLEEPY’S PTY LTD Unit 9/16 Metroplex Avenue, Murrarie QLD 4172 Ph: 07 3895 4100 Fax: 07 3395 6096 Email: guy.elliott@mattressinvestments.com.au Website: www.sleepys.com.au

MATTRESS RETAILER

23

Bulky Goods Assoc/FCA

$40,000

$180,000 - $220,000

SNAP-ON TOOLS (AUSTRALIA) PTY LTD 80 Holbeche Road Arndell Park NSW 2148 Ph: 1800 762 766 Fax: 02 9837 9199 Email: nicholas.hudson@snapon.com Website: www.snapontools.com.au

MOBILE TOOL AND EQUIPMENT STORE

160

FANZ, FCA

$40,000

$37,000 with Snapon finance

SNOOZE SLEEP WELL PTY LTD 21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: alistairb@snooze.com.au Website: www.snooze.com.au

BEDDING RETAILER

71

Franchise Council of Australia

$50,000

$450,000+

SOCIAL MEDIA MARKETING FRANCHISE

41

-

$49,000 plus GST

Finance Available

SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE

80

-

$15,000 (Licence Only)

$75 P/W

CONVENIENCE RETAIL

630+

SUMOSALAD Level 1, 1 Short Street, Leichhardt NSW 2040 Ph: 02 9569 7866 Fax: 02 9569 7811 Email: steves@sumosalad.com Website: www.sumosalad.com

HEALTHY FRESH FAST FOOD

90

FCA

$45,000 + GST

$300,000 PLUS GST

TACO BILL MEXICAN RESTAURANTS 375 Clarendon St, South Melbourne VIC 3205 Ph: 03 9690 2077 Fax: 03 9696 0868 Email: amigo@tacobill.com.au Website: www.tacobill.com.au

MEXICAN RESTAURANT, BAR AND TAKEAWAY

35

Restaurant Catering Victoria

$50,000

$450.000

TELECHOICE 74 Eastern Road, South Melbourne VIC 3205 Ph: 03 8699 2555 Fax: 03 8699 2550 Email: franchise@telechoice.com.au Website: www.telechoice.com.au

RETAIL TELECOMMUNICATIONS

60

FCA

Zero

From $70,000 working capital

THE AUSTRALIAN DRUG DETECTION AGENCY PTY LTD PO Box 300 647 Albany, North Shore City 0752 NZ Ph: +64 9 477 0032 Email: glenn.dobson@tadda.com.au Website: www.tadda.com.au

DRUG TESTING & EDUCATIONAL SERVICES

20

-

POA

POA

MOBILE CONCRETE SAWING

9

FCA Member

$45,000

Initial fee + vehicle

PROVIDES UNIQUE SPOT FACTORING PROGRAMME

150+ worldwide

FCA, IFA, CFA, Irish FA

$39,000

$50,000+

STEEL BUILDINGS SALES AND INSTALLATION

70

shedsafe accreditation

$25,000

$45,000

TRADE & INDUSTRIAL TOOL RETAILER

35

FCA

$50K

POA

UNSCRATCH THE SURFACE Level 10, 50 Market Street, Melbourne VIC 3000 Ph: 1300 500 408 Fax: 03 8677 6962 Email: unscratchthesurface.com.au www.unscratchthesurface.com.au

GLASS RESTORATION AND PROTECTION PROFESSIONALS

-

-

$35,000 + GST

$55,000 + GST

V.I.P. HOME SERVICES AUSTRALIA Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au

DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS

1100

FCA

$17,500

$25,000

DI BELLA COFFEE MOBILE ESPRESSO VAN

28

FCA (pending)

$110,000 + GST (in total)

$110,000 + GST

SPECIALTY COFFEE PROVIDER AND FRANCHISOR

62

FCA

SOCIAL MEDIA BUSINESS BOOSTERS 39F The Promenade, Sanctuary Cove QLD 4212 Ph: 1300 298 898 Fax: 07 5577 8266 Email: max@socialmediabusinessboosters.com Website: www.SocialMediaBusinessBoosters.com SPRAY PAVE AUSTRALIA GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com STAR MART - CALTEX AUSTRALIA 2 Market Street, Sydney NSW 2000 Ph: 02 9250 5000 Email: franchdev@caltex.com.au Website: www.caltex.com.au

THE CONCRETE CUTTER (FRANCHISING) PTY LTD 2 Cormorant Parade, Pakenham VIC 3810 Ph: 0418 533 266 Email: bruce@theconcretecutter.com.au THE INTERFACE FINANCIAL GROUP Level 14, Lumley House, 309 Kent Street Sydney NSW 2000 Ph: 1300 940 908 Email: ifgau@interfacefinancial.com Website: www.interfacefinancial.com.au THE Shed Company Level 1, Evandale Place, 142 Bundall Road, Bundall QLD 4217 Ph: 07 5574 3666 Fax: 07 55743222 Email: janet@theshedcompany.com.au Website: www.theshedcompany.com.au TOTAL TOOLS 19 Grimes Court Derrimut VIC 3030 Ph: 03 9394 4300 Fax: 03 9394 1699 Email: newstores@totaltools.com.au Website: www.totaltools.com.au

XPRESSO MOBILE CAFÉ 35 Railway Terrace, Milton QLD 4064 Ph: 1300 655 559 Fax: 1300 655 569 Email: jonathan@xpresso.com.au Website: www.xpresso.com.au ZARRAFFA’S COFFEE 1/54 Siganto Drive, Helensvale QLD Ph: 07 5500 0800 Fax: 07 5500 0900 Email: franchise@zarraffas.com Website: www.zarraffas.com

Franchise Council $150k to $800k of Australia

$200k

$50,000-$75,000 depending on $400,000 - $600,000 store

A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au

Business Franchise Australia and New Zealand 103


A-Z FRANCHISE DIRECTORY APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 10 years experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.

BATTERY WORLD AUSTRALIA Count the number of households in Australia? (Currently 9,117,033 private households in Australia - 2011 Census Data). Now count how many batteries each household will need over the next year? That’s the potential of a Battery World Franchise. Offering a world of batteries for everyone, the Battery World network is national and sells a range of portable power products and accessories throughout Australia. Battery World Australia Pty Ltd, as franchisor, provides

ATS were named the FCA - Emerging Franchisor of the Year 2011. For further information please contact Steve Wren, National Sales Manager on 1300 287 669 or visit www.appliancetaggingservices.com.au

the marketing and operations support to assist franchisees and strong brand recognition. Battery World is committed to helping franchisees build a successful business supported by experienced support office professionals. 80 stores Australia-wide and growing! After over ten years of operation, Battery World continues to be one of Australia’s most powerful retail battery franchises. For more information about Battery World contact 07 3373 1764 or visit www.batteryworld.com.au/ franchising

BING BOY

It is likely we will have sites that suit you. You may nominate a location.

Bing Boy is a brand new food concept that brings Urban Asian Street Food to Australia.

What is the initial investment? New stores range from $160,000 through $$260,000.(plus GST) Existing stores may also be available.

Why Bing Boy? Bing Boy offers a unique product and a low capital investment. Our training is easy and we a support team offering marketing and operational support. What is Bing Boy looking for in a Franchisee? We are looking for people who want enjoy their business experience whilst knowing that business is a serious conmmitment. Which sites are available?

Brazilian beauty Welcome to the Brazilian Beauty franchise model where beauty and brains meet. Proven to have successful franchisees from an array of backgrounds embracing the beauty industry and the Brazilian Beauty brand to create profitable lifestyle businesses that engage, challenge and motivate. Proven operational systems, award winning marketing and advertising; team and individual guidance; training and personal development;

AUSTRALIA AND NEW ZEALAND

No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you.

What does it take to financially qualify? Applicants should have about 50% of the funds unemcumbered. What now? Complete an online enquiry, phone of e-mail us. Contact: Tony Maddock Phone: 03 9533 7210 Mobile: 0400 017 882 E: tony@solutionsfranchising.com.au

weekly in salon and monthly group meetings are all part of the package. “At Brazilian Beauty we work together to share our knowledge, ideas, passion and goals to gain a competitive advantage over all other beauty competitors.” Francesca Webster, founder. Visit us at www.brazilianbeauty.com.au and www.salonfranchise.com.au. Call 07 3262 8984 today and take the first steps towards making your business dream happen.

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

104 Business Franchise Australia and New Zealand

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to


BrightEyes Sunglasses Established in 1985, BrightEyes Sunglasses is one of Australia’s largest sunglass retail networks, with over 46 locations nationwide. Our genuine passion towards enhancing Australia’s active lifestyle makes us the experts on fashionably functional eyewear. At BrightEyes we’re not simply selling sunglasses; we’re selling an enhanced way of life. The BrightEyes Sunglasses product range is extensive and showcases the latest styles from

CAFE2U Cafe2U is Australia’s first and most successful mobile café system. With over 200 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success. This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory. Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo.

CORAL HOMES With a mission to “help more Australians into a new home”, Australia’s newest franchise builder, Coral Homes, has already proven to be one of the country’s most successful and award winning home builders, having built homes for thousands of happy homeowners since 1990. The accumulated know-how gained from 23 years of building quality, value for money homes means Coral Homes knows how to help franchisees grow a successful home building business. And the good

ENERGIS Help residential and business customers save with smart energy solutions & products for Solar, Hot Water, Heating, Cooling & Lighting. Own your own extensive distribution franchise with low initial investment and high income opportunities from large territories. Low cost

EXA WEB SOLUTIONS Digital Strategies and Solutions Exa is Australia’s biggest digital solutions agency, with 290 highly qualified full-time employees and over 1900 clients in our portfolio. We provide end-to-end digital solutions, spanning from custom websites, eCommerce and microsites, through to mobile applications, social media and internal business systems. Since it was founded over a decade ago, Exa

leading international brands such as Ray-Ban, Oakley, Arnette, Revo, Maui Jim, Bolle, Prada and Vogue (to name a few). We are also proud to market our unique house brands including Mangrove Jack’s, Stiletto, Nicole’s, Attitude and Urban. If it’s a fantastic franchise opportunity you are looking for, backed up by proven operational, product and marketing support you can visit us at www. brighteyes.com.au/opportunities to find out more.

S UNG L AS S E S

Alternatively, just contact the BrightEyes franchising team on 1800 178 251 or email enquiries@ brighteyes.com.au. We would love to hear from you!

The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator. If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny. Contact John Stanton - Sales and Franchising Manager on 1300 Cafe2U (1300 223 328) or email: jstanton@cafe2u.com www.cafe2u.com

news is to start a Coral Homes franchise you don’t even need a builder’s license, you just need to know someone who does. • Own a slice of an iconic Australian brand • Expert assistance with getting started • Industry leading systems, processes and training • Extensive marketing support and home design range • Real bulk buying power of a major builder For further information call Roger Washbourne (07) 5585 2555 or go to www.coralhomes.com.au/ franchises

Mobile & Retail store formats available. Training, Marketing and Installation support provided. Secure your future in this high growth industry with an Energis franchise that gives you personal and professional flexibility in developing your business and your work environment. Franchise enquiries to www.energis.com.au/ franchise or Robert Graham 0407 105613

has sustained strong growth year after year. As we continue to expand, we are looking for selfmotivated and hard-working individuals to join us as franchisees. With high earnings potential in a dynamic and growing industry, this is a truly unique and lucrative opportunity to have your own business with the backing of Australia’s biggest digital solutions agency. Please call (03) 9092 6699, or email biljana.stephens@exa.com.au

Business Franchise Australia and New Zealand 105


A-Z FRANCHISE DIRECTORY FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great

FASTWAY COURIERS AUSTRALIA

Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email reception@fastapasta.com.au, or visit our website, www.fastapasta.com.au

• Low start up costs

• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au

• No weekend work

*Conditions apply

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

FASTWAY COURIERS New Zealand

• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change we’d love to hear from you. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz

Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy • Guaranteed income package*

AUSTRALIA AND NEW ZEALAND

opportunity to be part of our winning national organisation.

Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income packages* • Low start up costs • No weekend work

HAIRHOUSE WAREHOUSE Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse has been built through the passion and creativity of all our people. • Extensive and ongoing training programs • A proven turnkey operation • A focus on world class service

106 Business Franchise Australia and New Zealand

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to

*Conditions apply

• Multiple revenue streams, including retail, salon, piercing and beauty services • Exclusive stockist of world leading brands with the most lucrative merchandise trading terms worldwide A belief in your ability to change your life and courage to do it is all you need. Work for yourself, not by yourself. Come and join our community of leaders and start your new future today. We’d love to hear from you. For more information call 03 9234 2200, email franchising@hairhousewarehouse.com.au or visit www.hairhousewarehouse.com.au/franchising


Inspect My Home As a leader in the property inspection industry inspectmyhome is fast becoming a recognisable brand across Australia and is now franchising its business model and systems. We Offer - A generous exclusive territory area - Computerised booking system and database - Electronic reporting systems - Full onsite training to obtain Pest Inspectors License - Telephone Support/IT Support/Marketing Assistance - Personalised web pages linked to

Jim’s Fencing Jim’s Fencing franchise opportunities were launched in 1997, initially in Melbourne; to date Jim’s Fencing is Australia wide with approx 150 franchise owners of which includes contractors (who work for the franchise owners) building fences every day of the week. Due to the over supply of work which we cannot service Australia wide, Jim’s Fencing needs more franchise owners to service our customers. Some of the benefits of joining our Jim’s Fencing team are; • 8 weeks paid for training @ $1000 inclusive p/w

JUST CUTS™ Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you.

KWIK KERB Kwik Kerb® is the world leader in continuous concrete edging and can now be found in over 20 countries. We are looking for motivated people right around Australia who want to improve their lifestyle and take control of their financial future. As a Kwik Kerb® business owner you will be supported every step of the way with our knowledge and experience in marketing, a full training program and on-going product development.

www.inspectmyhome.com.au - National 1300 number Inspectmyhome is looking for current property inspectors to join our team as we grow our network of professionals across Australia. Or If you are a Licensed Builder looking to join the industry this franchise opportunity is ideal for an enthusiastic and motivated person looking to grow a successful property inspection business. For further information call 1300 337 447, email info@inspectmyhome.com.au or visit www.inspectmyhome.com.au

• 3 month bookkeeping assistance package • Work availability GUARANTEE • Ongoing support and personal mentoring • Strong brand recognition • Over supply of work • And much, much more If you are looking for a self-employed business opportunity and enjoy working outdoors, then why not join the team here at JIM’S Fencing. For more information on this Franchise opportunity and Jim’s Fencing, you should go to our website: www.jimsfencing.net or call us on 131-546.

At Just Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ a week! Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price. Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere. Contact: Luke Manning 1800 334 498 Website: www.justcuts.com

Kwik Kerb® business owners work for themselves, building their own business from strength to strength and determine their own income level. With Kwik Kerb® YOU keep all the profits! We have Kwik Kerbers earning $500 to $1000+ in a day. If they can do it, so can you! Owning a Kwik Kerb® proven system is all about creating a lifestyle that suits you. You choose the hours of work that match your financial and lifestyle goals. For more information freecall 1800 773 231 or visit www.kwikkerb.com.au

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND

Business Franchise Australia and New Zealand 107


A-Z FRANCHISE DIRECTORY LAVA CARTS Lava Carts offers specialty Espresso coffee and freshly made accompaniments. Our vision is to position the finest coffee possible into strategic locations delighting the customer and retailer in terms of satisfaction and success. A coffee cart strategically placed at the front entrance of a busy regional hospital proved a winning formula for the original Lava Cart and founder Simon O’Brien. Today the latest in design innovation has upgraded the cart to a modern and functional shopping centre kiosk whilst maintaining the grass roots cart like qualities of

We currently have excellent high profile opportunities in super and major regional shopping centres, particularly in Qld, Victoria and WA. Having signed up our first six franchises in the last 18 months Lava Carts has erupted onto the national stage with a vibrant difference. Discover the substance behind our brand. Visit our website www.lavacarts.com.au ph 0458 202 649 or email manager@lavacarts.com.au

Listen to Read

and Director Catherine McLennan has 26 years of teaching

A home tutoring system for reading with proven results.

training with Catherine ensures success for all franchisees.

Using a unique curriculum plus multi-sensory home study tools, Listen to Read repairs the gaps in reading ability. The comprehensive curriculum simplifies the reading process by breaking it down into 14 areas of critical development. Small group tutoring combines with a home study system using an App and workbook for self-regulated multi-sensory study.

experience specialising in teaching reading. Individual Early trials show students making gains in their reading age of up to two years, in just 12 weeks. A proven system combining a unique reading curriculum with Sound Therapy and multi-sensory programs for I-pad or computer. Email: hello@listentoread.com.au

The program has been developed by a literacy expert and a team of specialists in multi-sensory learning. Co-founder

Phone enquiries: 1300 473 234 / 0410 618 472

MR TAX REFUND

have some experience in the preparation of tax returns or a strong desire to learn. You could be an Accountant seeking extra income or have your sights set on becoming a Tax Agent, or, you are a Tax Agent looking to boost your client base. Whatever your circumstances we can assist you in building a profitable long term venture.

Hundreds of thousands of taxpayers enter the workforce yearly and all are obliged to lodge a tax return. As a result tax preparation is a high-growth yet stable industry - expanding at 4.3% annually. Services are highly sought after regardless of economic conditions and client circumstances. Our brand, innovative service delivery and product range was developed to appeal to a wide range of Australian taxpayers. To qualify as a Mr Tax Refund franchise you’ll

Website: www.ListenToRead.com.au

Find out why we are one of Australia’s fastest growing tax preparers. Email franchise@mrtaxrefund.com.au or visit www.mrtaxrefund.com.au.

NARELLAN POOLS

swimming pool industry. It’s a dream come true.

Join Australia’s Best And Most Loved Pool Builders. The opportunity to bring your dreams to life is a reality.

We have Franchise opportunities across Australia in both metro and regional areas.

Become part of our award-winning brand. Backed by over 40 years experience and rapid international growth, you will receive full training and support, access to advanced pool technology while working with a brand at the forefront of the

AUSTRALIA AND NEW ZEALAND

cost consideration and position. Our winning formula means our turnkey franchise package is a fraction of the cost of our competitors with no compromises on quality.

For more information or to register your interest simply: Email careers@narellanpools.com.au Phone 02 9684 8000 Web www.narellanpools.com.au

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

108 Business Franchise Australia and New Zealand

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to


NOODLE BOX An Australian success story. Noodle Box’s goal is to be the first choice noodlebased restaurant concept in every market in which they operate.

restaurant design concept, the Noodle Box brand represents excellent value for money. Noodle Box is healthy, fresh and fast and made right in front of their guests by friendly, well-trained team members. With a relaxed atmosphere – it doesn’t get tastier than that!

Franchise partner relationships are paramount and are built on integrity, respect and trust. The Noodle Box Franchise Support Centre is focused on ongoing Franchise Partner profitability and success.

For more information see www.noodlebox.com.au/franchise

With a competitive entry level investment and new

Email: michael@noodlebox.com.au

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

RED ROOSTER

and lease arrangements • Full structured training programs • Planning assistance for the opening and operating of your store • A full suite of merchandising and point-of-sale material Red Rooster is Australia’s most successful Australian owned Quick Service Restaurant chain. Its success has been built on great tasting, high quality, freshly prepared food, delivered using proven systems. Email: gary.glen@red-rooster.com.au Phone: 03 9582 8716

Red Rooster is an Australian owned icon brand. The Red Rooster franchise mission is “Be in business for yourself, but not by yourself”. Red Rooster supports each franchisee with proven commercial, promotional and operating systems, all designed to minimise risk and maximise potential for success. Specifically, you will get: • An Australian Icon brand • Proven systems and comprehensive operating manuals • Assistance in finding a location, negotiating contracts

RENT THE ROO RENTALS Rent The Roo specialise in the rental of any household appliance or furniture product available. There is simply NO LIMIT to the development of product ranges on offer from Rent The Roo, because franchisees can purchase from any retail outlet or accessible supplier – giving us the flexibility to satisfy every customer enquiry. If we can find it, you can rent it…!

Or call our Network Development Manager Michael Standley on 0416 256 338.

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND

The Roo continue to grow with over 60 franchise territories covering every state & territory in Australia. Franchisees have access to ongoing training and support as well as an extensive range of marketing tools to help drive the business forward. Rent The Roo’s home-based, simple and productive business model combines low running costs with the highest possible returns.

With over 36 years of trade and development and our continued focus on customer satisfaction, Rent

For further information, visit the FRANCHISE tab at www.renttheroo.com.au or contact Alan Carroll on 0408 178 858 or alan@renttheroo.com

Sleepy’s

programs and support from the management.

Sleepy’s unique selling proposition is ‘The Mattress Experts’. We focus on

With Sleepy’s low entry costs, simple business model, and proven selling system you too will become a mattress expert!

• providing the right mattress for our customers • backing our sales with peace of mind: 60 day comfort exchange guarantee

Sleepy’s currently has 23 stores and has embarked on an aggressive national growth plan. Make an enquiry today.

• creating a superior customer experience

Please contact Guy Elliott on 0434 254 154.

Sleepy’s offers our franchisees high quality initial and ongoing training, national marketing programs, local area

Email: guy.elliott@sleepys.com.au Website: www.sleepys.com.au

Business Franchise Australia and New Zealand 109


A-Z FRANCHISE DIRECTORY SNAP-ON TOOLS Snap-on tools have a heritage spanning more than 90 years and is a brand that defines quality. The range of more than 19,000 products are the choice of professional technicians from NASA to Formula One. The primary customers for franchisees are the professional technicians who service and repair cars, trucks, motorcycles, boats, aircraft and earth moving equipment - the people who make their living using tools and demand the best. With more than 4,700 franchisees around the world, 160 of them in Australia and New Zealand, the franchise programme has been developed over decades. The Financial Review Smart Investor magazine has chosen

For more information call 1800 762 766 or www.snapontools.com.au

SNOOZE™

• NAB & ANZ accreditation

As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none.

• Sales and product training

Boasting more than 70 stores across Australia and a goal to reach 90 stores by 2014, Snooze is looking for ambitious and passionate people to join the business’ exciting future.

AUSTRALIA AND NEW ZEALAND

Snap-on in their last three surveys and the Best Value franchise system. Franchisees, who operate from amazing custom built mobile stores, have protected territories that have been surveyed to locate and profile the customers before they start. Extensive training and ongoing support is provided and no previous mechanical/trade experience is necessary. Franchisees need to be motivated business minded people with a desire to be successful and enjoy the sales environment while building professional relationships with their customers. No royalties, no advertising levies and Snap-on finance packages available.

• Business management support • A national marketing program • IT services

Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including:

To take the first step towards a prosperous future, contact Snooze Franchise Network Development Manager, Alistair Browne, to find out what Snooze could mean for you.

• Vendor finance assistance

Email: alistairb@snooze.com.au

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

Social Media Business Boosters

• Awesome Support

A world first social media consultancy franchise - • Low market entry • Income Guarantee • Massive Ongoing Demand • Rapid return on investment • Minimal overheads • No Stock • Extensive Training

• No Royalties

SPRAY PAVE AUSTRALIA Pty Ltd

• Learn a range of new lifelong trades.

Earn up to $3,300 per week. That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!

110 Business Franchise Australia and New Zealand

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to

• Work from Home • Your Own Boss • No Territories • No Restrictions • Scalable to any size you want * The smarter you work the more you earn. To discover more about this exciting opportunity visit www.SocialMediaBusinessBoosters.com

• Guaranteed work available anytime after training. • Head office training plus follow-up on your own job. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • Low deposit + Support Payment Plan (SPP) Established in 1991, Security with Australia’s largest and oldest network. The name of the industry. Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com


Taco Bill Taco Bill is the longest established Mexican family restaurant in Australia and has built a loyal following since its inception in 1967. Taco Bill’s Mexican food is fun, fresh and affordable and presented in a casual, relaxed environment. The menu consists of a variety of fresh, authentic Mexican cuisine cooked daily on site, including Taco Bill’s special salsas, quesadillas, fajitas, rice and frijoles, enchiladas, burritos, nachos and tacos. Thirty brands of tequila are on offer at the various

TELECHOICE Established more than 18 years ago, TeleChoice is Australia’s largest independent MVNO retailer of mobile phones, telecommunications and energy products.

restaurants as well as Australia’s largest Margarita – Pancho Villa (fishbowl) - giving the restaurant even more flavour and authenticity! With 35 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas. If you’re interested in becoming part of the Taco Bill family call 9690 2077 or email amigo@tacobill.com.au

mobile phone rates and bundles with home telephony and internet. A TeleChoice Licensed Store operator has the delightful task of saving money for our customers.

Telecommunications and energy products are everyday necessities and non-discretionary expenses. TeleChoice now uses the most reputable networks in Australia packaged in ways that help Australian consumers make substantial savings and reduce the costs burdens. For example, TeleChoice uses parts of Telstra’s 3G Network to offer the most competitive

You too can make money by saving people their money. Our industry is very dynamic and is only suited for smart energetic investors. If you have the passion for business and the drive to succeed; we would like you to be a part of our team.

The Australian Drug Detection Agency

drug, alcohol workplace testing and education services.

The Australian Drug Detection Agency PTY Limited wants highly motivated and independent people to join the team, as either Master or Regional Franchisees. The NZ operation was established in April 2005 and consists of 15 regional franchisees throughout New Zealand, 18 offices and over 30 specialised onsite testing vehicles, employing over 65 staff and is recognised as the Market leader in the field of on-site

THE CONCRETE CUTTER The Concrete Cutter makes sound business sense. Established in Melbourne in 2001, The Concrete Cutter has nine long running franchises in operation. We now seek to expand in Melbourne and duplicate the Melbourne success interstate. If you are a smart ‘hands on’ person with good health and you are easily understood on the telephone we welcome your enquiry.

The interface financial group The Interface Financial Group franchisees provide short-term working capital for small businesses by purchasing their invoices at a discount. In the current economic climate small businesses need working capital but banks are unwilling or unable to provide it. Many of these small businesses are turning to Interface for a solution. Interface has been in the ‘invoice discounting’ business since 1972, is the leading alternative funding source for small business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom,

Call the National Franchise Manager on 03-8699 2555, or visit www.telechoice.com.au/franchise

The ADDA is based on the NZ business model, and will provide excellent financial rewards for those who are prepared to work hard and fit the criteria. This is a huge opportunity for business-orientated individuals, to get in at the ground level and grow their own enterprise. Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are! Email: glenn.dobson@tadda.com.au or visit www.tadda.com.au

The purchase price of $45,000 + gst covers equipment, sign writing, uniforms, stationary, training and initial book-keeping set-up and early accounting support. You will need to provide a suitable white vehicle such as a ‘one tonner’, a van , or a small truck. Most established franchisees are regularly taking over $2,500 per week. Ring Bruce Miskin on 0499 399 355 for an information pack.

and the United States. • NO employees to hire or manage • NO lease payments for storefronts • NO purchasing or maintaining product inventories • NO high startup costs • NO retail/consumer environments • A proven track record – Interface has been in business since 1972 • Excellent Return on Investment • Exceptional training & support programmes from a management staff with more than 400 years of experience in the business. For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au

Business Franchise Australia and New Zealand 111


A-Z FRANCHISE DIRECTORY The SHED COMPANY Secure your financial future with a shed sales and installation Franchise with THE Shed Company. Enjoy an excellent income and pay no service fees while you operate the Franchise, PLUS make a substantial capital profit when you come to sell. CASE STUDY: A married couple established a THE Shed Company Franchise in September 2007. After enjoying a six-figure income for two years, they needed to relocate interstate for family reasons and to sell the Franchise.

Unscratch the Surface No longer is it necessary to replace damaged glass. Unscratch The Surface franchises are the solution that all commercial, construction and residential industries have been without. Saving them $1000’s in replacement costs and critical time wastage. Never mind the environmental advantages by preventing yet more glass being broken up into landfill worldwide. Key benefits: • Low entry costs • Low running costs • Low on-going fees • Full training & unlimited support

Named as one of the top eight franchising companies in Australia in both 2007 and again in 2009 by the Financial Review’s Smart Investor magazine, THE Shed Company has become one of Australia’s fastest growing and most successful franchise groups. Contact Janet Hamilton on 07 5574 3666 or visit our Website www.theshedcompany.com.au for more information.

Franchisees will receive: • Extensive advertising • Leads supplied by head office • Professional sales website • Powerful CRM website • High-grade trade tools & supplies • Uniforms • Complete corporate branding We are looking for people with a positive attitude and are dedicated to providing great customer service. For more information on this Franchise opportunity, you should go to our website: www.restoreglass.com.au or call us on 1300 500 408

V.I.P. Home Services australia

In 2009 and 2010 V.I.P. Home Services was ranked number one Best Value Franchise under $50,000 by Financial Review Smart Investor.

V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand. V.I.P. is a professional Home Services franchise with opportunities available in Home Cleaning, Commercial Cleaning, Carpet Cleaning, Window Cleaning and Lawns and Garden Maintenance.

V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work.

XPRESSO MOBILE CAFE

bean display showcase where a franchisee can display, custom grind, bag, heat seal and retail.

Starting a new café is daunting especially with overheads and expensive shop leases etc. A fixed cost and great value alternative is an Xpresso Mobile Café franchise. Xpresso Mobile Cafés have exclusive licensing to use the Di Bella Coffee products and branding. Our Mercedes Benz vans are fitted with quality custom fit-outs and commercial high grade espresso coffee making equipment. An Xpresso Mobile Café is also fitted with a coffee

AUSTRALIA AND NEW ZEALAND

Three weeks later, the Franchise was sold for $495,000 giving them a net capital profit in excess of $400,000, after paying the initial Franchise fee plus all the set-up costs.

For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au

Franchise partners primary income is earned Monday to Friday in an exclusive territory and they may choose to earn secondary (considerable) income from various events and markets on weekends. Franchisees are supported by our fully integrated website and social media and Internet presence coupled with our national call centre. Contact Jonathan Payne at jonathan@xpresso.com.au to register your interest and be part of our success story.

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

112 Business Franchise Australia and New Zealand

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to


SapientNitro FSNO 640

JOIN THE

DREAM TEAM

Vendor finance now available* *Available to approved applicants

We are looking for dynamic people who love dealing with others and are passionate about retailing. The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system. We provide franchise partners with a stable platform to start their business and offer support across the entire business including: Marketing and Promotional Support Product Development and Buying Power Proven operating system that includes comprehensive product and sales training Business Management support from our on the ground field team Assistance in site selection and property negotiations Business finance available to approved applicants

For more details visit snooze.com.au or call Alistair Browne, our Franchise Network Development Manager on 0427 401 169

It’s amazing what a little snooze can do. snooze.com.au

FSNO 640 Franchising FPP_210x297.indd 1

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