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VOL 08 ISSUE 06 sept/oct 2014
FROM LITTLE THINGS
BIG THINGS GROW SPRING
INTO A NEW CAREER
WHAT TO ASK & WHAT TO SAY CREATE YOUR
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From the
Editor
BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 8 ISSUE 6, september / october 2014
If this is the first time you have picked up Business Franchise Australia and New Zealand, then you have done so at the right time! Chances are you are thinking about purchasing a franchise system and are trying to gather as much information for making one of the biggest decisions of your life. Well look no further!
a V.I.P. Home Services franchise. Read about Dane’s journey in our cover story on pages 10 – 11. Robert Toth from Wisewould Mahony writes an informative piece regarding how it’s the little things within a contract that can matter the most, Tania Allen from Vision Alliance shares how to balance your focus and asks ‘why do you get up every day and do what shows you how to set meaningful business goals. out the profiles on some of the fantastic
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franchising brands currently on the market, who knows one of them may be perfect for you! We also have the latest franchising
With Spring upon us, it brings renewed vigour to our home renovation projects and gardens. Our feature this issue focuses on Australia’s love of our homes and gardens and the franchise systems that we employ to clean, maintain and improve our most prized possession.
news, and industry leaders from the FCA and
Dane Mueller certainly sprang into a new career when, after being a Regional Manager for a pizza franchise system, he took the step of becoming a business owner by purchasing
covered that you’d like to see then let us
I hope this edition will answer some of
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Business Franchise Australia and New Zealand 3
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
Contents SEPTEMBER / OCTOBER 2014
10 Spring into a new career: From Pizzas to Pruning
V.I.P. Home Services
36 Franchisee Beware:
From Little Things Big Things Grow Robert Toth, Wisewould Mahony Lawyers
Karli Furmage
60 What to ask & What to say
42
16
26 Create your A-Team
Bill Vis, V.I.P. Home Services
78
On the Cover
In Every Issue
Franchisor in Depth
6
30 Books and Gifts Direct
What’s New!
Announcements from the industry
12 Chairman update regarding franchising changes Michael Paul, FCA Chairman 14 Pathways to Success
Graham Billings, FANZ Executive Director
45 Feature: Building, Cleaning and Landscaping 72 Book Review: The Franchise Relationships Book of Tips, Greg Nathan 95 Behind the Headlines
Jason Gehrke, Franchise Advisory Centre
Focus 20 Buy Australian Properties 84 Local Appliance Rentals
Spotlight 54 Spray Pave Australia
97 Professional Services Listings 98 Franchise Listings
Have your say
100 A-Z Franchise Directory
62 Hotondo Homes
4 Business Franchise Australia and New Zealand
16 Social Media for Franchisees:
Appliance Tagging Services......................... 100
Opportunities and Risks
Australian Drug Detection Agency...81, 100
Anna Cairo, Anna Cairo Consulting
Battery World.................................................... 2, 100
22 Alternative Finance Options
35
Expert Advice
also in this issue:
Bodiez 24/7.............................................................. 100
for Franchisees
Bucking Bull..............................................................101
Jason Gehrke, Franchise Advisory Centre
Buy Australian Properties...................... 89, 101 Cafe2U. ................................................................29, 101
Cashflow It.................................................................... 71
42 How to create a Successful Visual Brand
Dan Ratner, uberbrand
50 Franchising is a Service Industry
Julie Finch-Scally, Founder of The Duster Dollies
56 ATO warns against treating
Employees as Contractors Steve Vesperman, Australian Tax Office
68 The Cost of Success
Tania Allen, Vision Alliance
74 How to set Meaningful Business Goals
Steve Seddon, Westpac
78 Franchise Recruitment: When a pulse
and a cheque are not enough Suzanne Jarzabkowska, DC Strategy
86 International Expansion and the
Legal Complexities Marwan Kojok, Baybridge Lawyers
90 Driving local customers to your
City Farmers Dogwash. ....................................101
Crema Espresso................................................... 102 Dream Doors........................................................... 102 Ella Bache.................................................................. 102 Evolve Entertainment................................. 91, 102 Fasta Pasta............................................................... 103 Fastway Couriers....................................... IFC, 103 FC Business Solutions. ....................................... 19 Fibrenew............................................................ 33, 103 Frog Rent.................................................................... 104 Gold’s Gym............................................................... 104 Hairhouse Warehouse........................OBC, 104
84
Hong-An King, Office of the Franchising Mediation Adviser
86
34 Open Handshake or Clenched Fist?
Inspect My Home................................................. 104 InXpress. ..................................................................... 105
Jejak Graphics........................................................... 93
Just Cuts. ................................................................... 105 Kwik Kerb................................................................... 105 Local Appliance Rentals.......................... 37, 105
business using Google My Business
National Franchise Insurance Brokers..... 83
Andre Kay, Sociallybuzz
Paraserve.......................................................... 55, 105 Primal Pantry. .......................................................... 106 Red Rooster............................................................. 106
Profiles 40 Franchise Selection 58 JAN-PRO 64 The Concrete Cutter
30
RedCat............................................................................... 1 Seven Seas Seafood Café............................. 106
Silver Chef..................................................................... 25 Skewerz Kebabz................................................... 106
Snooze.............................................................. IBC, 107 Taco Bill. .......................................................................107 The Interface Financial Group..................... 108
66 Franchising Expo
Top Snap........................................................... 33, 108
76 Yellow Express
Voyages Ayers Rock Resort............................ 73 Xpresso Mobile Café.......................................... 108
what’snew! Celebrating 30 years of Forty Winks July marked a special occasion for an Australian success story in the bedroom retailing and franchise space – Forty Winks celebrated 30 years of bringing Australians a better nights rest. From its humble beginnings of just a handful of stores in 1984, Forty Winks has grown into a household bedroom retailer, with more than 90 successful stores across Australia. Forty Winks’ retail success is driven by aggressive advertising and marketing campaigns, which saturate local and national television, radio, print and online media. Having enjoyed steady growth for the past 30 years, with solid year on year increases, Forty Winks predicts continued sustained growth as a result of its successful franchisee model.
by marketing and product committees,” says Rod.
One of the founding members, Rod Andrews, reminisces about the time when a group of experienced bedding retailers took a leap of faith and ventured away from the rival franchise company to start their own group.
Forty Winks’ winning franchisee model sees a large percentage of franchisee fees being injected back into the business to bolster marketing and media spend with the aim of continuing steady growth into the future.
“It was a big risk that turned out to be well worth it,” explains Rod. “The group were confident in the formula we had developed, and we were prepared to back it with our own family finances and reputations. Through hard work and dedication, we are now grateful to be a part of Australia’s leading bedding retailer.”
The Forty Winks franchisees have a wealth of support at their fingertips through experience and knowledge of the National Support Centre teams. CEO James Hayward says, “The Board of Directors recognise that the success of the company very much depends on the success of its franchisees.
The ongoing success of Forty Winks can be attributed to this group of loyal and committed franchisees that have continued to grow the business to the success it is today. “The franchisees are the lifeblood of the brand and participate in the decision-making processes driven
“Forty Winks provides a host of support services, including ongoing product research and development, high level training, reporting systems, marketing and leadership.”
Industry honour for Noodle Box CEO
Noodle Box Chief Executive Ian Martin has been recognised for his outstanding industry leadership at the QSR Media Awards 2014. Ian was presented with the “Industry Champion – Individual” award at the QSR Media Conference in Sydney. The award is given to an individual CEO or other senior executive who has done something exceptional over the past 12 months or shown leadership for the industry as a whole.
Ian is no stranger to business transformation. He has a wealth of experience in the restaurant industry, both as a corporate franchisee and franchisor, and a successful track record in transforming some of the world’s most prominent retail brands. Since Ian joined Noodle Box just over a year ago, the results of his leadership have been clearly evident. One of the biggest developments has been Noodle Box’s shift to a 100 percent franchised business model. Ian is also supervising the overhaul of training for franchise partners, investment in innovative online systems, reworked menus, a focus on increasing average sales, the installation of in-restaurant ordering kiosks and the development of an embedded native app for ordering.
6 Business Franchise Australia and New Zealand
Ian’s leadership and expertise have been instrumental in his success. His strengths – identified by suppliers and employees alike – include his ability to strip back the chaos of business into simple strategic steps to success. His vision for Noodle Box has been to make the 71-restaurant network the “firstchoice noodle-based restaurant concept in every market in which we operate”. “I am pleased and honoured to receive this award,” Ian said. “It is a great surprise, as well as humbling to be recognised after such a long time working in the QSR sector. “I would like to sincerely thank QSR Media for co-ordinating this event, as well as consistently providing great information and support for the industry.”
SUMOSALAD CELEBRATES 100TH STORE IN AUSTRALIA SumoSalad – Australia’s leading healthy food franchise - has celebrated the opening of its 100th Australian store in Melbourne Central. The latest milestone for the franchise reflects the changing face of the food court, as more Australians commit to making healthy and ethical food choices. The 100th store at Lower Ground, Melbourne Central, Swanston St, also marks the start of great amplification for the franchise in Australia, with a goal of reaching 300 stores in the next five years. Luke Baylis, Co-Founder and CEO of SumoSalad said, “It has been just over a decade since the first SumoSalad store opened in Sydney. The 100th store in Melbourne represents a significant achievement for the brand, and confirms that our pledge to provide healthy and appealing choices has been embraced throughout Australia. As we continue to see a growing thirst for fast, healthy and nutritious
meals, we will continue to look for new opportunities to bring our healthy options to as many locations as possible.” The 100th store is part of a new series of concept stores for SumoSalad, featuring live hydroponic vegetable walls, and cold pressed juice stations. Franchisee Jason Wang is excited that the 100th store will be his second SumoSalad offering. He said his decision to embark on another venture with SumoSalad was an easy one. “Following the success of my Knox store, the opportunity to open the 100th store in Australia was one that I did not want to miss. Luke’s vision of bringing healthy food options to food courts is something that I am extremely proud to be a part of. This 100th store is not just testament to the healthy and delicious meals available at SumoSalad, but also the ongoing support and innovation designed to help franchisees succeed in the
retail environment.” SumoSalad’s 100th store is located at Lower Ground, Melbourne Central, Swanston St, Melbourne
Franchising Sentiment Mostly Positive in NZ Franchize Consultants’ July 2014 Franchising Confidence Index continued an optimistic outlook across many key growth drivers, as reported by responding Franchisors. Service Providers were, however, less positive generally and markedly in some instances. Franchisors remain positive in their outlook for general business conditions (net 53%), and sales levels per franchisee (net 70%). Franchisor growth prospects (net 63%) increased 22% from the previous quarter. Franchisors remain subdued in their outlook for the availability of suitable staff (negative net 7%) and suitable locations (negative net 8%). And Franchisors still reported a solid outlook for franchisee profitability (net 53%), arguably a franchise system’s most important key growth driver. However, Service Providers were less optimistic at 7%, a drop from 31% in the previous quarter. The outlook for general business conditions is a key measure for this research because it can be compared with many other general business confidence surveys. Franchisor
sentiment (net 53%) was slightly down from the previous quarter. Interestingly, responding Service Providers reported an extreme decrease in sentiment from 92% to 27%. The net 53% positivity experienced by franchisors tops other research involving general business, including ANZ Business Outlook (40% in July) and NZIER (32% in June) business confidence surveys. The sentiment of Service Providers proved to be more reflective of these results. Overall, Franchize Consultants’ Franchising Confidence Index in July 2014 demonstrates mixed results from reporting Franchisors and Service Providers. The subdued sentiment reported by Service Providers is shared by other recent general business confidence surveys. In summary, optimism needs to be balanced with challenge. While the perceived outlook improves and/or remains strong on many key variables, perceived difficulties also remain. Franchisors, as for other businesses, will need to plan and manage for growth and
performance. Very few (only two out of 30 Franchisors) expected a better outlook across all areas. To read the report in full, visit www.franchisingconfidence.co.nz.
Business Franchise Australia and New Zealand 7
what’snew! BORONIA CHEF CREMES THE COMPETITION Boronia chef, Ashley Sheppard, has beatout almost 100 competitor cooks from across Australia and New Zealand to win the coveted title of 2014 Jamaica Blue Golden Cuisine Champion – for the third time!
taste, presentation and prompt delivery of a main course dish of Chicken Breast stuffed with Brie, Mushroom and Onion served on a bed of Sweet Potato and Cumin Puree, which he cooked on-site and under the pressure of time constraints.
Ashley won the title in 2011 and 2012 and was again declared ‘Champion’ at the 2014 Jamaica Blue Golden Cuisine Grand Final Cook-Off event, recently held) at the FOODCO Training Academy in Sydney.
Ashley’s show-stopping dish was created during a two and a half hour ‘Mystery Kitchen Challenge’ that called on the six Grand Finalists to split into two teams, each briefed to design and serve a three-course à la carte menu that showcased dairy as a highlight ingredient of each dish.
An annual contest of Jamaica Blue’s most promising professional cooks, Ashley easily made it through various preliminary round challenges earlier this year to make it to the 2014 Grand Final Cook-Off, where he turned-up the heat on his competitors; two of whom are from New South Wales and the remaining three from Western Australia, Queensland and New Zealand. With six years of experience as a professional cook at the Jamaica Blue café at Knox City in Victoria, Ashley particularly impressed the competition judges with the
Ashley also excelled in a number of individual challenges that included a demonstration of his knife skills and a blindfold test where he correctly identified seven of 10 types of dairy product purely by smell and taste. Ashley also relied on his senses of taste, smell and touch to name seven of 10 types of chocolate and scored highly in a chocolate-focused quiz and chocolate-stencilling challenges. In addition to being scored on their food
knowledge, cooking techniques and the taste and presentation of dishes they served to the competition judging panel, the 2014 Jamaica Blue Golden Cuisine Grand Finalists were assessed on their compliance with food safety and hygiene standards, workflow and teamwork efficiency. As well as the glory of the 2014 Jamaica Blue Golden Cuisine Champion title, Ashley has won a KitchenAid Bench Top Mixer worth AUD$750 and a $1,000 Visa Mastercard giftvoucher which he intends to use on travel.
Aussie-born business music app, storePlay, goes global storePlay, the world’s first app-based music subscription service for businesses, has announced its platform will now expand to international markets, following demand from many of its large Australian customers to take the app offshore to their international operations. The company has now successfully negotiated and secured international licensing with various record labels, expanding its existing Australian licenses. Established in 2012 in Melbourne, Australia, storePlay was developed as a business app to meet the needs of large, mid-sized and small retailers, cafes and restaurants, fashion brands and other businesses such as franchise networks. storePlay’s customers highly value the
simplicity, breadth of music and ability to easily overcome the roadblocks relating to legally playing music in-store as well as the ability to create a soundscape to align with the brand and merchandising. While many consumer digital music subscription services such as iTunes and Spotify are growing in popularity, playing those platforms within commercial premises is illegal in Australia and other global markets (such as The United States of America) without the correct commercial licensing in place. Moreover, businesses that do use these platforms possessing only consumer subscriptions take away valuable revenue streams from artists and their publishers. The music available through storePlay is 100 per cent legal and includes all royalties,
8 Business Franchise Australia and New Zealand
protecting its clients from the risks of playing or streaming unlicensed music instore through platforms like CD, iTunes or Spotify. storePlay also protects the interests of music publishers and artists, and locally has relationships with all the major record companies including EMI, Inertia, Ministry Of Sound, Mushroom, Shock, Sony, Warner and Universal as well as several niche independent record labels. “We have already seen a high level of interest from international markets for the services we provide. As a result, we have established relationships and secured licensing agreements with all major record labels for global usage of the music. This allows us to develop exciting and fresh playlists for international clients,” said Founder Dean Cherny.
Zambrero opens first offshore restaurant in Asia this month Australia’s fastest growing franchise, the quick service Mexican restaurant Zambrero, is making its first foray into the overseas market. With 52 Zambrero restaurants now operating across Australia, the ground-breaking food concept opened in Bangkok, Thailand on, July 31 ahead of plans to open dozens more around the world. Zambrero’s success is driven by a desire to provide both good food as well as food that does good. This manifests in its Plate 4 Plate philosophy which means that for every healthy burrito or Mexican salad bowl bought at Zambrero, another meal is provided for someone in need. Since entrepreneur Dr Sam Prince founded Zambrero in 2005, his Plate 4 Plate charity initiative has provided more than 2.7 million meals to those living in poverty around the world through its food distribution partner Stop Hunger Now. Recently Zambrero’s humanitarian program expanded to Australia after being firmly established in Africa, Asia and the Americas. This charity concept will soon be established worldwide, with another 5 stores slated to open in Bangkok within the next six months, as well as 6 stores in New Zealand by next February. In the pipeline for next year are the US, the Middle East and India before Zambrero heads to China. Bangkok’s Zambrero will not be a cookie-cutter version of those open in Australia. Instead it will cater to the local community, with
share-plate style meals, tastes familiar to the local palate (including tom yum sauce!) and what Dr Sam Prince describes as “the best deep-fried chicken in Asia”. “This restaurant won’t be for the expats but aimed at the people of Thailand,” Dr Prince said. “Asian countries have an aspirational culture that wants foreign brands but they also want familiar tastes. They also don’t know much about Mexican food so this will be an educational process as well. “The exciting thing for us is that there are a lot of spices and chillies used in Zambrero’s Mexican food that are similar to the Thai palate and also available locally. Their culture of sharing food is important, too, and our dishes will reflect that.”
Muzz Buzz revolutionise ATM banking Muzz Buzz are revolutionising the drivethru ATM market in Australia – with the introduction of Muzz Buzz Money Machines; the first non-Bank operated drive-thru ATM’s in Australian history. The drive-thru ATM allows customers to withdraw cash without leaving their vehicles. Just roll down the window, swipe your card, get your cash and drive away. No parking hassles, no dangerous encounters, no getting drenched in a downpour. It’s safe, it’s simple and quick. The first Muzz Buzz Money Machine is now open on the corner of Bannister Road and South Street in Canningvale, Western Australia; however within the next few months Muzz Buzz Money Machines will be sprouting up all around the Perth metropolitan area and will then spread across Australia.
Executive Chairman Warren Reynolds said, “The Muzz Buzz Money Machine is yet another example of our determination to revolutionise the Australian drive thru market; to bring fun, convenience and entertainment to our customers and to provide products and services that fit with their busy lifestyles. These new drive-thru ATM’s should prove especially appealing to women, the elderly and those people with mobility restrictions who can now use an ATM from the safety of their own car.” As an added bonus, during each transaction, every drive-thru ATM customer will have the opportunity to select a discount offer valued at up to $50, which can be redeemed from a range of local businesses (including Muzz Buzz drive thru coffee stores). “In addition, for every transaction at a Muzz Buzz Money Machine, Muzz Buzz will make
a cash donation to the Canteen Foundation it’s our way of giving back to our community and providing comfort and support to sick children and their families,” added Warren. Muzz Buzz Money Machines are a fun experience that’s easy, safe and totally convenient - try it today and redeem your chosen voucher while helping your local community.
Business Franchise Australia and New Zealand 9
cover story: v.i.p. h om e serv ices
From pizzas to pruning Seeing a customer’s face when they see the transformation of their yard is one part of being a business owner that Dane Mueller loves most. Having worked as a Regional Manager at Domino’s Pizza, Dane was ready to take the next step and become a business owner and in March 2012 he did just that. “I enjoyed my role as a Regional Manager, but I had always wanted to own my own business. I took the time to consider my options. I wanted to work outside and be in charge and V.I.P. offered the solution I was looking for,” said Dane. “Owning my own business was a big leap from my previous role as a Regional Manager. It was challenging balancing a business with family commitments. The great thing was that I knew support was only a phone call away and that’s one of the reasons why I joined a franchise business. I
could call Tim, my Support Manager, and he would work through any issues or questions I had,” said Dane. Joining at 28 years of age meant Dane was one of V.I.P.’s youngest franchisees. While Dane may have a few less years, he makes up for it with his enthusiasm, passion and commitment to his business. Owning a business is a different mindset, it takes determination and commitment to be successful and profitable. “Initially I found it a struggle to keep on top of everything from the bookwork to organising clients, but over time, this became easier and I now know the importance of working both on and in the business,” commented Dane. For V.I.P. it’s all about growing the V.I.P. family. The more franchisees there are on board running successful and profitable businesses the bigger the brand awareness that will be achieved, which can only benefit every franchisee. “We encourage and reward franchisees who refer a friend or family member to V.I.P. Our franchisees have even been stopped at their local shopping centre or while on the job and this has led to new people joining V.I.P,” said V.I.P. Founder, Bill Vis. “We know we are all V.I.P. brand ambassadors and by promoting the brand and building the V.I.P. family will benefit all involved.” Dane has even referred a friend of his, a Domino’s Store Manager, to V.I.P. and he has joined as a V.I.P. Lawns and Gardens franchisee.
A word from Dane on making the change • Do your research – it’s important to have all the information you need to make your decision. Dane Mueller
• Determine what support is available throughout the life of the franchise.
10 Business Franchise Australia and New Zealand
• Speak up if you need help at the beginning of your business – it’s a lot to learn initially. • Take advantage of any training opportunities – it will help you to stay ahead of competitors and will ensure your knowledge is always up to date.
Being adaptable in a competitive industry - no longer desirable, it’s essential Dane, like many V.I.P. franchisees, enjoys the benefits of being his own boss and making the most of being part of a strong, national brand. The franchising industry is more highly competitive today than ever before. Today V.I.P. no longer competes with other services franchises, but all other franchise options that are in the marketplace. “When we started back in 1979, we were the third company to franchise in Australia and the first to franchise in home services. The marketplace was considerably less competitive and we owned the services sector. Now, there are many services franchise brands. It’s now about being adaptable in these competitive times that will see V.I.P continue to succeed,” said Mr Vis. “It’s about having the ability to move and to be adaptable with how the needs of customers and the prospective franchisees change. “Prospective franchisees are more business savvy than ever before. They are coming to franchise interviews more prepared and have done their research. “We are constantly looking at how people are accessing our information and interacting with our brand. It’s all about staying relevant to the consumer and ensuring they can interact with our brand and access information in the easiest way possible. “It’s great to see franchisees like Dane joining V.I.P. Bringing on younger franchisees means we are helping people
own their own businesses at a younger age. Working with younger markets provides us with great insight into how they want to receive information. We want to make it easier for them so that they have everything they need to make their decision,” said Mr Vis. Purchasing a business is a big decision, it’s one that takes time and needs to be thoroughly researched to ensure the right decision is made. “Our role as a franchisor is to help people on that path. To be there not to just answer questions, but to work out how a V.I.P. franchise can help a person achieve their business and personal goals,” said Mr Vis. “From the moment a person enquires with us, it is our role to guide them on this process from the point of enquiry and throughout the life of the franchise. “We are constantly reviewing what we are delivering to our franchisees to ensure they are receiving information that is relevant and useful for their businesses. “V.I.P. also takes part in a third party Franchisee Satisfaction Survey to ensure we are getting open and honest feedback from our franchisees. It’s a great way for us to find out what’s working, what isn’t and how we can make things better. “We have now implemented new initiatives to help franchisees in their businesses such as tailored business and marketing plans for each franchisee. The plan looks at the individual circumstances for a franchisee and we work with the franchisee to see where the business is now and what it needs to be achieving to ensure the franchisee’s personal and business goals are met. We encourage franchisees to make their money work for them which can include purchasing property,” said Mr Vis. Every new V.I.P. franchisee also goes through an induction process to ensure that from their first day with V.I.P. they are learning how to run a successful and profitable business. “It’s all about ensuring we can deliver sustainable business practices for every franchisee. This will ensure every franchisee has a profitable business resulting in franchisees staying on board for a longer period of time,” said Mr Vis. “When I look back from where we started, we have come a long way. I have fond memories of those days. Business has changed and so have we. We have been here for a long time and we plan on being here for many more years to come. Creating and
“We have helped thousands of people become successful business owners and we look forward to helping many more people achieve their business ownership dream.” maintaining sustainable business practices will ensure we achieve this. “We are proud to be part of the franchising industry. We are members of the Franchise Council of Australia. We were part of the voluntary group prior to the establishment of the Franchising Code of Conduct and work to ensure ethical conduct in the franchising industry at all times. It’s important that franchisors and franchisees are protected and the Franchising Code helps to achieve this. “Franchising offers people the opportunity to be business owners and to not do it alone. We all value and measure success differently.
“Providing people with the opportunity to be successful and profitable business owners is a great way to help people achieve their business and personal goals. “We have helped thousands of people become successful business owners and we look forward to helping many more people achieve their business ownership dream,” commented Mr Vis. If you would like to join the V.I.P. family, simply contact V.I.P. Home Services on: P: 13 26 13 E: info@viphomeservices.com.au W: www.viphomeservices.com
Business Franchise Australia and New Zealand 11
fr anch ise cou nci l of aust r a l i a
Changes to franchising will not affect those already doing the right thing
The ground work has been laid for the anticipated changes to our sector. At the time of writing, the Federal Minister for Small Business, the Honourable Bruce Billson has introduced to Parliament, the Competition and Consumer Amendment (Industry Code Penalties) Bill 2014 (the Bill). The Bill essentially creates a provision enabling the ACCC to either seek orders for civil pecuniary penalties or issue
infringement notices for contraventions of certain sections of the Franchising Code of Conduct (the Code). Currently the ACCC does not have this power. The ability to apply infringement notices is the first step in ensuring the clear passage through Parliament of the changes to our Franchising Code of Conduct later in the year. Once the ACCC has been granted the power to issue infringement notices, and the new Code provisions have passed, failure to comply with some Code provisions will carry a financial burden for both franchisors and franchisees. Interestingly, the pecuniary penalties will not apply to the entire Code. In the Bill’s second reading in Parliament in July Billson said penalties would only apply to “provisions
12 Business Franchise Australia and New Zealand
of the Franchising Code of Conduct that are fundamental to the purpose of the Code and where non-compliance is likely to cause significant detriment to the other party.� Though we are not yet certain which provisions those will be, this points to a Code and a regulator with clear parameters to work within to enhance the franchising sector, rather than a watchdog who will be bogged down by red tape. These changes will be implemented with the intention of keeping a transparent and fair environment in which to do business, they are not a means to raise revenue and certainly not designed to increase compliance costs. Our Franchising Code is the most robust in the world. The Competition and Consumer Act amendment tabled in Parliament provides further protection to the vast majority of us who already do the right
“Changes will be implemented with the intention of keeping a transparent and fair environment in which to do business.” Michael Paul | Chairman Franchise Council of Australia
thing and will not hinder any franchisor or franchisee from being successful.
Successful franchisees in 2014 Some of those franchise brands in the country that are not only compliant with the Franchising Code of Conduct, but uphold the FCA member standards have been recognised in the recent FCA Excellence in Franchising Awards. At the time of writing the regional awards are happening around Australia. Already, we’ve seen franchisees and support staff acknowledged for their outstanding business achievements and contributions to the franchise sector and their community in Queensland, New South Wales and Western Australia. By the time of publishing, all the regional winners will have been announced and beavailable on our website (www.franchise.org.au). The awards are designed to recognise
franchisees in various sized businesses (businesses with multiple locations, businesses supporting a group of staff and businesses creating growth and success with minimal help) as well as serving as a way to evaluate your business through the submission process. Anthony Hamod from Fastway Couriers Wollongong, winner of the NSW/ACT Franchisee of the Year (two or more staff) award for the second year in a row explained the value of the awards was not only in the brand awareness it can create, but in the submission process itself, “The (submission) process is a great way to review your business performance overall. Obviously we compare performance year on year, but going through the entry process gives you that big picture in all aspects of the business including community involvement,” he said. Winners so far span a range of industries and experience levels and serve as a fantastic
indicator of some of the truly great things happening in our sector. I would like to congratulate franchisees, support staff and women excelling in the sector from Bakers Delight, Fastway Couriers, Grill’d Healthy Burgers, HydroKleen, The Cheesecake Shop, Jamaica Blue, Begin Bright, Mister Minit and Poolwerx to name just a few. All the regional winners will go on to compete as national finalists, with winners to be announced at the MYOB FCA Excellence in Franchising Awards Gala Dinner on 28 October at Allphones Arena in Sydney. Along with the regional finalists, we will also be naming the Australian Established and Emerging systems for the year along with a host of other accolades. Stay tuned later in the year to see who the big achievers are in 2014. www.franchise.org.au
Business Franchise Australia and New Zealand 13
FANZ Conference 2014
Pathways to Success
This year’s Conference was judged a great success by attendees, with the responses to the post-conference survey scoring the Speakers, Content and Organisation in the high ninety per cent ranges for satisfaction. The Conference, held at the Millennium and Copthorne Hotels in Queenstown benefited from a new Platinum Elite Sponsor, The Radio Network, along with first time sponsor, Yellow and an old friend with a new name, Crowe Horwath as Gold sponsors. As usual, the event could not have been as successful without the additional support from all the Silver and Bronze sponsors. Many rated it as the best FANZ conference they had attended
and there were some very positive responses from first time attendees who were amazed at the welcome they received and the openness of delegates willing to discuss issues in their own systems. This year’s speaker line-up was based on a developing path from the creation of a successful franchise through to selling out at a profit and speakers from both sides of the Tasman provided their unique perspectives. The conference opened with well-known New Zealand television personality and psychologist, Nigel Latta who, as usual, gave a thought provoking yet humorous session entitled, “The Psychology of Success – Yeah Right.“ This was followed by sessions on growing your system and recruiting the best franchisees. Professor Natalie Jackson, Professor of Demography at Waikato University gave a ‘wake up call’ to businesses in her presentation, with the projections that in just eleven years there will be more New Zealanders aged over 65 years than those
14 Business Franchise Australia and New Zealand
less than 14 years. Almost all future growth in the country will be at the older ages and in many regions population growth has already ended. She ended by saying that this was the new reality, but businesses that understood and planned for these changes would find new opportunities. Founder of the Franchise Relationships Institute, Greg Nathan, made the trip across the Tasman to speak on ‘The Healthy Franchise Culture’, as well as conducting workshops on the ‘Franchise Journey’ and the conference ended with a presentation by Tom Potter, founder of Eagle Boys Pizza, who flew in from Australia to talk about the Eagle Boys story and its eventual sale to a large corporate. To see what you may have missed and to give you a taste of what FANZ conferences are like, go to the FANZ website www.franchiseassociation.org.nz/annualconference.html and click on the video button.
The result of the postal ballot for the vacant seats on the Board was announced at the Annual General Meeting that took place on the Sunday morning following the Conference. Joining the current members, Ian Robertson, New Zealand Post and Sean Dwyer, ANZ (who were not required to retire this year) were:
Re-elected for a second term: • Dawn Engelbrecht - Safe Kids in Daily Supervision (SKIDS) • Callum Floyd - Franchize Consultants • Brad Jacobs - The Coffee Club
New Board Members: • Vaughan Moss – Para Rubber New Zealand
“Almost all future growth in the country will be at the older ages and in many regions population growth has already ended.”
• Deirdre Watson – Deirdre Watson, Barrister
Chairman and Vice Chairman for 2014-2015 Under the FANZ Rules, the new Board elects the Chairman and Vice Chairman at its first meeting following the AGM, which took place in August.
Delegates enjoying the atmosphere at the Colonel’s Homestead Restaurant, Walter Peak High Country Farm on the shores of Lake Wakatipu.
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Social Media for Fr anchises
Opportunities and Risks As social media continues to develop and flourish what it means for business is endlessly analysed and debated. Dynamic in nature, changes are constant and at times it is challenging to keep up to date with both the opportunities and risks. With technology rapidly evolving individuals, businesses and society are being disrupted. These technology changes of which social media is a part of have opened the door to possibilities. How we interact, the way we search for information, how we shop has to some degree altered. It is argued that these fundamental shifts in technology are activating massive changes in business. Whether you like or dislike social media or
believe it is a waste of time is to a degree immaterial. It is here and it is being used by millions of Australians. Social media is centred on the user; it is about being connected; engagement and participation; openness and transparency; and conversations and communities. What does this mean for business? Put simply communication is fragmenting and this has numerous impacts on all businesses. Whether it is identifying how to utilise it, managing social media risks or simply diversifying communication channels, its influence on business is being felt in many ways.
Non-traditional The communication landscape is being severely dislocated as individuals are now communicating in non-traditional ways through mobile communication and hand
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held devices. What this means is that communication now comes ‘with us’ as opposed ‘to us’. You no longer have to be at home or at a desk to communicate. This makes connecting with your target market more challenging on the one hand as there are multi channels to source information, but also provides numerous opportunities to connect on the other hand. Social media as one of those opportunities requires investing time and resources to discover new approaches to engage and communicate with your target audience. Creating, sharing and exchanging of information and ideas are the foundation of social media. This is what social media is about so the emphasis is on ‘social’ first and ‘marketing’ second. To some degree social media has been commandeered by marketers who have chosen it as another mass marketing and advertising channel
“Moving forward, social media should not be feared; it needs to be harnessed.” Anna Cairo Anna Cairo Consulting
forgetting the ‘social’ aspect. Where social media adds value is in relationship building and developing trust. In the long terms this will deliver more opportunities.
One size fits all? Social media is not a ‘one fits all’ approach. Finding out what works for your business takes time and patience. Making the most of these social media opportunities can be even more challenging for franchises. There is not much written about franchise companies where harnessing and using social media may be slightly more complex than the average SME. Not only do you have a ‘head office’ to contend with but also a network of franchisees. This makes social media usage problematic in terms of managing a consistent message, image and brand. Where social media opportunities are concerned the type of advantages from social media will differ depending whether you’re a franchisor or a franchise. However, ultimately the goal from social media communication is much the same for all businesses – to gain the attention of your target audience, develop a strong customer base, nurture customer relationships and build trust. The aim is to use social media as an engagement tool to increase brand awareness and become a stronger brand. When all is said and done social media is simply another communication tool which needs to be combined with your overall business and communication objectives. For a franchisor this will be more about attracting people to buy the business to become a franchisee. Having a strong customer base and social media presence may assist in the business appeal to potential new franchisees. And for franchisees it means the ability to communicate
these references are usually made to those businesses where there is a basic employer/ employee relationship. For franchises it is slightly more challenging.
with potential customers/clients to promote customer service, branding and communication.
Research tool Social media is a great tool for potential franchisees. The ability to use social media as well as all other digital channels available to them to research their prospective franchise opportunity is invaluable. Those that harness this effectively will be armed with plenty of intelligence about the potential business, how they operate, who their customer base is, their marketing approaches and much more. This can potentially provide them with knowledge that they may not be able to obtain just from talking to the relevant individuals or examining relevant financial statements. So in terms of research and analysis it provides for some substantial due diligence opportunities. All these opportunities mustn’t deter franchises (particularly franchisors) from being proactive in understanding the risks social media can pose. With all the benefits of being active on social media in terms of communication and branding there are also pitfalls. Social media is a duality with both positives and negatives. Where risks are concerned they basically fall into the following three categories: • Reputational • Legal • Operational. These negative impacts can include something as simple as negative publicity to serious issues such as disclosure of confidential or sensitive information. Although there is a lot of talk about organisations having a social media policy
The lead must come from franchisors and it is important that they develop an approach which promotes their overall business objectives as well as supports their franchisees. If your business wants to harness social media and allow franchisees to manage social media at an individual level then being proactive is critical. This should be the aim of all of franchisors where social media communication is concerned as trying to control things at franchisor level will not work. As your business grows and franchisees increase, social media communication needs to occur at a franchisee level. This means having a multi prong approach which includes developing a Social Media Policy, which is essential and involves getting input from your franchisees. For franchisees it is important to know how to utilise social media without violating franchise agreements and damaging the brand.
Information gathering For potential franchisees it is important to ask as many questions as possible when information gathering. Questions to consider include how you can utilise social media, how you are able to interact with the technology and what restrictions are placed on you. This will provide background about how the franchisor values social media, whether they actually believe in it or whether they just use it because ‘they have to’. This context for the potential franchisee offers an insight into what type of company they are buying into – one where communication channels emphasise traditional or one that is
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“For franchisees it is important to know how to utilise social media without violating franchise agreements and damaging the brand.� embracing modern communications. Neither way is better or worse than the other, it simply provides information. Further for the potential franchisee they need to consider how they want to use social media and have this conversation with the franchisor to see if a Social Media Policy is in place, whether training is available and what support is accessible to them. Social media is causing disruption in the communication space which flows onto business. As we head towards a mobile society those businesses that embrace modern communications and technology are well placed to gain and make the most of it. Maintaining business reputation, trust and integrity is still paramount in the business world. The impact of social
media on business will only continue to grow as its usage increases. So it is imperative for business to be both active and proactive on social media to make the most of the opportunities and manage the risks. Moving forward, social media should not be feared; it needs to be harnessed. It is part of the dynamic and changing world of communication we are currently experiencing. Embracing it is far more effective than ignoring it. Anna is a qualified online communications professional. She has an extensive background on Internet policy and regulation; social media in the workplace, and impacts of technology on business.
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Her experience includes working with industries including legal, financial and franchisors. Anna Cairo Consulting is a boutique social media and online communications consultancy providing education, risk management strategies and policy for businesses. They work with variety of industries tailoring solutions to business needs. Contact Anna Cairo at: P: 0417 010 877 E: anna@annacairo.com W: www.annacairo.com
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Business Franchise Australia and New Zealand 19
FOCUS : BU Y AUSTR A LI A N PRO PERTIES
Investing with Integrity
“A growing network of Buy Australian Properties franchises are being established now throughout Australia, with new opportunities available in all states.” A better way to invest
Over the last 100 years, the Australian property market has grown, on average, by approximately 10 per cent per annum, and since 1984 it has averaged 13.4 per cent per annum. With fewer declines than most other international markets, it’s accurate to say that the Australian property market is in a strong position and offers continued future growth.
Buy Australian Properties was established because of the urgent need in Australia for an honest, ethical and professional residential property investment company that always put its clients’ needs first, without compromising integrity. In operation for four years, a strategic business plan has been established to grow a network of 50 franchises over the next three to five years, following a simple philosophy: Research the market intensely, create and improve the systems and procedures that produce a successful investment property result, focus on the clients’ individual needs and be honest and transparent. This results in the creation of a better way to invest in the Australian residential property market. As Australia’s first professional franchised property investment company, Buy Australian Properties leads the industry with
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safe, secure and proven ways of investing in residential property with integrity. Researching the Australian property investment market and opportunities intensely, they select only the highest quality products and accredited suppliers, create valuable trust based relationships with national strategic and alliance partners then implement the proven systems and procedures required for success. This approach has created a far better way to investing in the Australian residential property market.
Property Investing There is no doubt that property investing is a very successful way of obtaining financial freedom and security in your lifetime if you do it the right way. Over many years residential property investing has been a great and proven wealth creation strategy
invest back a considerable percentage of the company profits into local communities around Australia.
for thousands of everyday Australians and you could join them using it as part of your plan. With a Buy Australian Properties franchisee assisting you through the whole process you are assured an enjoyable stress free experience. Investing in residential property in Australian can be a very simple, safe, secure and easy process if you follow certain proven systems and procedures to protect yourself. A lot of people and property marketing companies try and complicate it, focus on the wrong things or are only interested in making a sale and money from you. At Buy Australian Properties you will feel that ‘Investing with Integrity’ feeling that so many clients have experienced already by following their unique strategies to residential property investing. There are many benefits of building a successful property investment portfolio if you take a long term conservative approach and a qualified Buy Australian Properties franchisee will help you achieve them.
Franchise opportunities available A Buy Australian Property franchise offers you the perfect opportunity to operate and develop a unique property investment business in Australia.
believe that you have a passion for property, are honest and trustworthy, believe in helping others, have a positive and determined attitude for success and enjoy running your own business then Buy Australian Properties would like to hear from you to discuss this unique franchise business opportunity in further detail. The first step is to complete the ‘Franchisee Engagement Process’, which will see if you can work together, if you are a fit! Encouraged to include your family and/or partner in the process, an application form and confidentiality agreement are completed, leading to a meeting with Buy Australian Properties management. They will guide you through the engagement process, while gathering your information, providing the necessary franchise information whilst answering any questions you may have. You will be joining a strong, dedicated, passionate, enthusiastic and motivated team that has a positive win-win attitude. Their commitment to their franchisees is such that they will always strive for the best outcome, for you, for your business, for your clients and for all the companies and people that are associated with the business. Outstanding in all aspects is what Buy Australian Properties is all about. David Pascoe, founder of Buy Australian Properties says, “We care more about our clients than money”.
You now have the opportunity to join a highly motivated team, which has advanced from an initial business concept into an exciting franchise group poised for rapid growth nationally.
Making a difference
A growing network of Buy Australian Properties franchises are being established now throughout Australia, with new opportunities available in all states. If you
The Directors, team members and the franchisees at Buy Australian Properties all believe in the responsible corporate governance of the organisation and therefore
The BAPC foundation was formed in 2014 by founder David Pascoe, with the idea, enthusiasm and passion to start building brand new family homes around Australia in local communities. These will accommodate homeless and disadvantaged people, runaway teenagers without a safe home environment, mentally challenged people in need of assistance, sick people with no family members to take care of them, mothers and children without a safe home environment, abused men and woman of domestic violence, divorced families presently suffering and of course sometimes just the people who are down and out on their luck and need a place to stay for a while. Working closely with national builders and developers to purchase land and construct brand new homes at cost price rates (without any company profits at all), the BAPC foundation can offer those in need a home for a night, a week or a month for no charge. Year after year, in partnership with local churches and non-profit organisations, the BAPC foundation hopes to build hundreds of homes that literally help thousands of Australians each day in their most difficult time of need. Giving them a roof over their head, these homes will provide those in need a place of warmth, security and comfort in their time of need. With selected franchise areas available across Australia, if you feel owning a Buy Australian Properties franchise is the right fit for you, as well as helping to change the lives of others and contributing to a greater cause, contact: E: franchise@buyaustralianproperties. com.au W: www.buyaustralianproperties.com.au
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e v i t na A lt e r finance options s e e s i h c n a fo r f r
22 Business Franchise Australia and New Zealand
“Leaders of mature franchise networks recommended that franchisors should seek accreditation with all major banks, rather than relying on just one.” Jason Gehrke | Director Franchise Advisory Centre
The limitations of traditional bank lending to potential franchisees is restricting the growth of franchise networks and is a source of frustration to franchisors, according to a recent meeting of franchise leaders. More than 60 franchisor CEO’s and senior executives gathered for the Franchise Management Forum, a conference and thinktank event jointly organised by the Franchise Advisory Centre and Griffith University’s Asia Pacific Centre for Franchising Excellence to explore key issues affecting the franchise sector. Based on consistent findings from the Franchising Australia survey over several years that access to finance by potential franchisees was causing a barrier to growth for the sector, an interactive exchange session at the Forum explored the topic of alternative finance options for franchising. While some of this discussion still gravitated toward traditional lending, albeit via franchise accreditation programs with the major banks, spirited discussion was also held on vendor and family financing, plus the
need to review investment levels to reduce the overall cost of joining the franchise.
Bank franchise accreditation programs It was acknowledged that the ‘Big Four’ banks in Australia all offer a franchise accreditation program of some kind which recognises the strength of a franchise brand and business model to generate strong cashflows for a new outlet. In some cases, banks will offer accredited systems cashflow lending worth up to 70 per cent of the value of the initial loan, with the franchisee required to provide either cash or real estate equity for the remaining 30 per cent. However while such programs are common in the ‘Big Four’ banks, and are now also appearing in several second-tier Australian banks, accreditation is not for everyone. With a few exceptions, the sorts of franchise business models which qualify for bank accreditation are businesses which transact in cash, carry no debtors, and require an initial investment of greater than $250,000 or more. This investment threshold alone excludes potentially half of Australia’s 1,180 franchise systems from consideration for bank accreditation, as service franchises (particularly mobile service business) rarely require investments at this level.
“Franchisors who offer vendor financing expose themselves to the risk that the franchisee won’t or can’t pay, and that the franchisor may need to take over and operate the outlet.”
Other types of businesses may be subject to preferential lending criteria depending on the industry in which they operate, instead of franchise accreditation. Examples include pharmacies and child care centres, which are often recogised by banks as businesses with predictable cashflows in highly regulated markets, irrespective of whether or not they are franchised. Leaders of mature franchise networks recommended that franchisors should seek accreditation with all major banks, rather than relying on just one, but warned that the process of gaining accreditation required a significant investment of time and organisational resources, plus full transparency of the business at franchisor and franchisee level. Once obtained, accreditation does not mean that every qualifying franchisee will be funded as banks may apply internal limits to how much they will lend to any one brand, or any particular industry. Additionally, accreditation is reviewed on a regular basis by the banks, and may be withdrawn.
Vendor financing A number of franchise systems indicated that they are currently offering vendor financing (for new outlets only), while others indicated that they are strongly considering this as an option in future. Franchisors who offer vendor financing expose themselves to the risk that the franchisee won’t or can’t pay, and that the franchisor may need to take over and operate the outlet. This means that franchisors with the internal resources to manage companyowned outlets are more capable of offering vendor financing. Repayments under vendor finance arrangements are made in one of two ways.
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Either the franchisee pays a premium in addition to their ongoing royalty payments until the business is paid off, or the franchisee earns their equity by delivering profits in excess of a pre-agreed level of performance, with the surplus profits ‘buying’ the franchisee’s stake in the business. Either method can be applied to greenfield (ie. new) outlets, or existing operations, although the risks to the franchisor (and franchisee) may be less in an existing outlet compared to a greenfield site, depending on the circumstances. The problem with vendor financing is that franchisors may not have enough capital themselves to offer this option to all suitable candidates who cannot otherwise qualify for bank finance, and therefore still risks limiting the growth of a network.
Family financing Many franchisors reported that they had granted franchises to candidates who had borrowed some or all of the money from their family or friends. This is generally known as family financing, and comes with a number of risks and challenges. A number of franchisors who had accepted family-financed franchisees later regretted doing so, as they found that the franchisee was not fully committed to the business (and in some cases would even abandon it without fear of the financial consequences attached to bank finance), or that the family members who had lent the money would seek excessive control over the operation of the franchise, often in conflict with the policies and procedures set out by the franchisor. In some cases, franchisee abandonment of family-financed businesses led to the parents taking over the business in order to protect their investment, but with the result that people who may not otherwise meet the franchisee selection criteria effectively became franchisees by a reverse acquisition process. Some franchisors expressed the sentiment that “parental cash was better than parental real estate equity”, indicating that guarantees provided by parents for bank loans could often be given too freely without due consideration of the performance needs of the franchisee’s busines, and the exposure risk for the parents’ home if their franchisee son or daughter failed to operate their business at the required level of performance.
Other franchisors indicated that a familyfinanced franchisee candidate would need to provide a copy of the loan agreement between the family members as a further condition of granting the franchise, and must still contribute a minimum proportion of the initial investment from their own funds. All franchisors agreed that the performance of vendor or family-financed franchisees needed to be closely monitored at all times, and early intervention applied if the business fell below the expected level of performance, but then agreed that such monitoring and intervention should be the same for any franchisee no matter how they are financed.
Reducing the cost of joining the franchise Many franchisors also commented that they have reviewed, or soon will be reviewing the setup costs of new outlets to reduce the overall investment required. Much of the set-up cost in fixed-location businesses is in fitout and equipment, with franchisors actively seeking cheaper but equally effective fitout and equipment inputs. Some franchisors indicated they have reduced the physical size of their locations, meaning a reduction in ongoing costs such as rent, but also reducing the initial set-up costs as well. Other franchisors have worked more collaboratively with suppliers, particularly landlords to bring down set-up costs, and in rare cases have been able to obtain landlord contributions that have covered the entire cost of a store fitout. Additionally, franchisors are looking at their own upfront franchise and training fees to
24 Business Franchise Australia and New Zealand
increase overall affordability of their outlets.
The future While this article has explored some responses to franchise financing issues, it is by no means an exhaustive treatment of the subject, and has not included discussion of all possible financing models. It also does not take into consideration the likelihood that an increasing proportion of franchise finance in future will be obtained outside of traditional lending models as a newer generation of franchisees emerge who may have little or no real estate equity to offer conventional lenders as security for their franchise investments. However this article does recognise the growing realisation in the franchise sector that traditional lending will be unable to meet the needs of the sector in future, and that alternative financing models will be necessary for its future growth. 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: P: 07 3716 0400 E: jason@franchiseadvice.com.au W: www.franchiseadvice.com.au
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Create your A-Team Save heartache, money and time by surrounding yourself with good advisors.
26 Business Franchise Australia and New Zealand
“A great group of trusted advisors will keep pushing you forward, help you learn more and stop you from making stupid, costly mistakes.” Karli Furmage | Trainer, coach & writer
When I started my business a few years back, I heard the full spectrum of comments from ‘Oh wow! That’s awesome, good on you!’ to ‘you’re insane’. I left a great job with a good company, a place that I enjoyed, to plunge into the unknown of managing my own business.
of action, you need to brainstorm ideas or even have someone challenge your thinking and tell you you’re being ridiculous. A great group of trusted advisors will keep pushing you forward, help you learn more and stop you from making stupid, costly mistakes. They can provide a fresh perspective and keep you accountable to goals and plans. These are people you respect, whose opinions you value and who aren’t afraid to speak their truth as they firmly shove you out of your comfort zone.
Did I think it through? Yes I did.
My board members don’t know they are on my board. I have no formal agreement with them and no money changes hands [with the exception of my accountant of course!] They just know I’ll call every now and then and say ‘Hey… I’ve got something I’d like to bounce off you… do you have time for a chat’.
Did I really understand what it meant to work for myself? Not at all … despite having grown up in a house surrounded by family and friends who ran their own businesses, and a career of working with small business owners. I really had no clue. It’s not that I didn’t learn from them, you simply can’t explain what it means to be in business for yourself until you have lived it. That white knuckle terror of thinking you might not be able to pay your wages that week, or the overwhelming realisation when there is so much to be done and you’re the only one to do it.
What’s worked for me [and continues to do so] is having an informal board of people I can turn to when I need help. They are vested in my success. If I run into an issue, I know that I can pick up the phone.
Reading this article now is perfect timing, as you are starting your business journey and have begun to meet useful individuals. You may already have a group of advisors in place. If not, the big questions are what should an advisor do for you? Where do you find them? Where do you start?
One thing I learnt very early on is that business is a team sport. If you think you can do this alone, you will make expensive mistakes and suffer unnecessary heartache.
What should my board do?
So, the secret is to not do it alone and form a personal ‘advisory board’ – an informal, select team of experts, trusted professionals and champions you can turn to for advice and support. You turn to your personal advisory board when you want an impartial opinion, you’re uncertain about a decision or course
Your advisory board doesn’t consist of one person. You need to collect a group who will guide and inspire you and give advice. There are two types of advice; technical and supportive. You will need advice on technical issues, such as the law, finances, accounting, insurance and strategy. Equally
Well, you can start by reading these handy hints…
you need support – advice that guides, inspires and challenges you.
Who should be on my board? Your board needs to be a mix of technical advisors [legal, accounting, financial] and supporters [mentors, champions and those individuals who think way outside of the box]. Your board members need to be aspirational, possess knowledge, skills and experiences that you don’t have and want to help you. 1. The Experts: Is your accountant just doing your taxes or are they an active part of your team? Do they come to you with ideas and proactively support you to make the most of your business? Whether it’s your accountant, solicitor or business advisor, you want proactive, big picture recommendations. 2. The Guru: This one has walked in your shoes. They have done the hard yards, made colossal mistakes, and reached the pinnacle of success. They are the ones to help you navigate around the challenges and obstacles. They are subject matter experts. If they don’t know, they usually know who will. 3. The Cheerleader: This is the one who thinks everything you do is awesome with a touch of ‘course it will work!’, ‘that’s genius!’ and ‘go you!’ They think even the slightest improvement in your thinking and ability is great and any setback is simply an opportunity to show your talent in a new way. They will put a positive spin on the toughest of circumstances. This role is important because business is tough. There is a lot to deal with and many things to drag us down, these guys help us see the good and stay focused on the opportunities. 4. The Peer: One of the best benefits of
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— Can I really be totally honest and vulnerable with my board? — Does my board inspire and motivate me and keep me accountable to my goals and plans?
How should I engage with my board? From my experience most successful people are willing to give their time and expertise. Most get to a point in their career where they like to give back and help the up and comers navigate their path. I find the most effective way to get help is to ask for it. Make the call to the person you admire and ask if they have 20 minutes to help you. The worst they can say is no.
“Once you have found your people, you must maximise their time [and yours] and make sure it’s an enjoyable experience for both parties.” being a franchisee in a system is being surrounded by peer franchisees … people doing the exact same thing you are day in, day out. They understand what you are going through like no one else. These are the ones you share challenges and obstacles with, kick around ideas and have a jolly good vent. These times are usually mutually beneficial. 5. The Outsider: This is the person who comes from a completely different field, profession or industry. Their value comes from their unique approach to situations. They are the ones you can rely on to come at a problem in a completely different way, out of the box and help you see situations in a different light. They are impartial, have no preconceived ideas and they will challenge your thinking.
What makes a great board member? Your board members need to have the right knowledge, skills and experience to help you achieve your goals for the next 5+ years. Here is a checklist of questions to consider: — Do I understand my development opportunities as a business owner? How can I utilise the expertise of my board to close those gaps?
— Do I have the right balance on my board between technical and supportive advice? Does my board have the knowledge, skills and experiences I need to achieve my 5-year goals? — Do my board members have the best intentions towards my goals and my business … or am I just a client they invoice? — Do my board members add value? Are they honest, constructive, challenging, strategic and genuine? Can my board provide objective advice, or is it all about them and their ego? — Will my board create a ‘positive disturbance’ – a proactive intervention that will shake me out of my rut, current thinking or comfort zone? — Do the members of my board have time to devote to helping me? — Can my board help me to develop my skills and resilience? As a franchisee, you need to develop some thick rhino skin. The knocks come from the nay-sayers in your family questioning your sanity, the friend with a franchising horror story, to the employee who claims you bullied them through to the abusive customer [often all happening in the same day]. Can your board help you get perspective on the reality of being in business? And help you navigate the tough times with a bit of tough love?
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Once you have found your people, you must maximise their time [and yours] and make sure it’s an enjoyable experience for both parties, here are some tips: 1. Be clear on what the issue is and what you want to ask. Take time to write down, be very clear on the problem or issue you want help on … then call them. 2. Ask good questions. The better the questions you ask, the better the information you’ll get.
3. Don’t shop around for the answer you want. Avoid asking lots of people the same question. This is ‘advice shopping’. Not stopping until you get the answer you want or the opinion that validates your own. Get real. It wastes everyone’s time.
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4. Show the love! Thank them for their time and show them genuine gratitude. Giving back to the people who help you is the right thing to do. Send them an article you know will be of interest, a card on their birthday, introduce them to someone else and pay their bills on time.
Having your own personal advisory board gives you access to an experienced group, dedicated to your success … which means you will achieve your goals quicker and most likely enjoy the journey even more. One of my favorite mentors of all time, Splinter from the Teenage Mutant Ninja Turtles ‘… you have learned the final and greatest truth of the Ninja. Together, there is nothing your four minds cannot accomplish’. We are always more powerful in a group. Karli Furmage is a trainer, coach and writer. Contact her at: E: hello@karlifurmage.com
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fr a nchisor in d ep th : BOO KS an d G I F TS DIR ECT
BECOME A BOOKS and GIFTS DIRECT CHAMPION! “Books and Gifts Direct allows a person the opportunity to reshape their future and make a difference in the community.” - John, NSW Franchisee
Books and Gifts Direct is Australia and New Zealand’s largest direct seller of books and gifts, bringing together Lifetime Distributors in Australia and Premier Books in New Zealand under one brand. Parent company The Quarto Group, Inc, a leading global illustrated book publisher and distribution group, have brought on board Managing Director Joseph Craven to oversee the merger plus recent rebrand, as well as move the company forward, utilising a fantastic network of loyal businesses and franchisees. The merger of the two businesses in Australia and New Zealand into one clear brand allows a great opportunity to take advantage of the direct sales network with renewed energy, while utilising Joseph’s strong background in retail and publishing. Selling a great range of books and gifts, Books and Gifts Direct know the marketplace inside out. The customers can touch, feel and even smell the products before ordering, all in the comfort of their own office space with the products delivered direct to their workplace for free. “Books and Gifts Direct offers a valuable
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“The ‘Direct to the Customer’ concept is brilliant. Not paying for my merchandise until it’s on sold, encourages growth & positive cash flow. I thrive with the thrill of the challenges this company presents for me.” - Kerri, QLD Franchisee
service to its customers. We give people a chance to shop and congregate at work, businesses love us as we offer a service to their employees in the lunch room or reception areas, with no buy in required by the company. It’s a great way for employees to interact with each other, picking up and discussing books and gifts,” says Joseph.
About Books and Gifts Direct Every week over 200 franchisees, across Australia and New Zealand, visit more than 55,000 workplaces, including schools, childcare centres, office buildings, community centres and other places of work. With yearly sales totalling more than 60 million dollars and with over 4 million products purchased by their customers, Books and Gifts Direct are the leading display marketing company in Australia and New Zealand and set for continued growth and expansion.
ABC Books, Village Roadshow and Australian Women’s Weekly, it’s the same stock that can be found in major retail book and gift stores but at a discounted rate. Using an experienced buying team, based in Sydney, products are sourced from around the world with every item handpicked to ensure customers are offered the most sought after products with up to 70 per cent off the RRP, and guaranteed to be of the highest quality. Franchisees then visit each workplace every fortnight to fulfil the orders and to refresh the sample box with new products.
Why become a Books and Gifts Direct franchisee? If you are looking for the freedom and lifestyle from owning your own business, Books and Gifts Direct offer the following to their franchisees:
Selling a great range of books and gifts, presented using a sample box that contains the current product selection, Books and Gifts Direct supply a handpicked selection of bestselling arts and crafts books and gifts; children’s books and gifts; cookbooks; educational books and gifts; gardening books and gifts; health and beauty; homewares and stationery.
• Easy-to-sell products
With products from Harper Collins, Murdoch Books, Random House, Penguin, DK Publishing, Quarto, Hachette Australia,
Joseph adds, “There are minimal barriers in place with regard to owning your own Books and Gifts Direct franchise. To be a franchise
• Proven sales model • No ongoing royalty or marketing fees • Strong financial returns • Affordable investment • Stock on consignment • Exceptional business support.
owner, you simply need the low start-up franchise fee, a van and storage area. “The success of the franchise system comes from the franchisees. We attract people who have a keen desire to be their own boss coupled with a desire to succeed. “A lot of our franchisees work with their partners or family members and although the work required is not part time, franchisees can create a flexible schedule, which enables them to be able to focus on family as well as work, with many coaching their children’s sports teams, for example. Saying that, our franchisees need to be motivated, hardworking, driven and customer focused. A positive attitude, self-belief and determination to succeed is more important than experience or qualifications and previous experience is not necessary – nor is sales or marketing knowledge.” The costs of becoming a Books and Gifts Direct franchisee vary from state to state, due to a number of different types of franchise territories available. All available territories and costs associated are on the website. Territories are created using the number of businesses within a geographical area, rather than area size or postcode alone. With CBD, Urban, Suburban and Regional franchises available, all businesses are visited every two weeks by the franchisee. This allows orders to be fulfilled, directly from the van and a
Business Franchise Australia and New Zealand 31
fr a nchisor in d ep th : BOO KS an d G I F TS DIR ECT
“This business has allowed me to become financially free. There was no other way for me to make so much money working 5 days per week.” - Michael, VIC Franchisee
new set of books and gifts to be left, leaving new order forms. All stock is given on a consignment basis, which means that it’s not paid for by the franchisee until it’s sold and with no ongoing royalty or marketing fees, you are able to maximise your earning potential. The experienced master franchise team will mentor you with training and ongoing support, and with your hard work and the established systems in place you will earn what you deserve.
Investing in future growth Alongside a comprehensive website, Books and Gifts Direct also direct market. As well as the recent rebrand, which was subsidised by the company, google ad word campaigns and printed flyers, all of which direct sales to the franchisee, there is also a Franchise Content Manager (FCM) which is an online portal for franchisees to access various support mechanisms including training and marketing material. The next 12 months see a ‘Field Unit Device’ being rolled out across the network, which will transfer paperwork currently being completed by the franchisee, to an android device which will also double as a point of sale, taking orders and searching for products etc. Joseph says, “We have invested heavily in the ‘Field Unit Device’ and after a period of research and development, we are rolling this out across the network as we speak. On the back of this, there will be a huge focus on training and development programmes across the network over the next 12 months.”
Making a difference For many years the company has made a
commitment to support charities across Australia and New Zealand, with customers having the satisfaction of knowing that with every purchase they make, it makes a difference to someone’s life. Five cents from every product sold is donated to charity, locally and nationally. More than 1.8 million dollars has been given to charities including The McGrath Foundation, Make-A-Wish® Australia , the Princess Margaret Hospital Foundation in WA, Little Heroes in SA, and the Starship Foundation in NZ.
The application process To remove some of the stress from the assessment process, Books and Gifts Direct have a structured process to assist and guide you during the process of purchasing your own franchise. This allows you to make an informed decision about buying the business and also helps them to assess your suitability. The first step to joining the largest direct seller of books and gifts in Australia and New Zealand is to complete an expression of interest form, located on their website. Following on from that, the simplified steps following will guide you through the franchising process and set you on your way to owning your own Books and Gifts Direct franchise.
Follow-up call You are contacted directly (generally within 3 working days) to discuss the franchise opportunities and answer any questions.
Interview An informal ‘meet ‘n greet’ so you can get to know each other and you can learn more about the franchise operations.
32 Business Franchise Australia and New Zealand
Orientation Assuming you’re the right fit for each other a discovery day is scheduled for you, with a local franchisee. You’ll tour existing client workplaces and get an ‘on the ground’ overview of operational procedures. If you’re interested in purchasing an existing franchise, you’ll also get to meet the relevant franchisees.
Approval process Once your application has final approval, the franchising procedures start. Confirming finance, agreeing on franchise territory, issuing of disclosure and franchise agreements, scheduling settlement, and so on.
Initial training You then take part in the training program, where you’ll learn all about working with your current workplaces, winning new clients, managing clients, product drops, stock control and territory reports. Training doesn’t end there either. A team of master franchisees are always here to help you improve the performance of your business.
Settlement It’s official... You’re a Books and Gifts Direct Franchisee! If this sounds like the perfect opportunity for you and you too would like to make a difference, for further information or to complete an Expression of Interest form visit: W: www.booksgiftsdirect.com
U O Y E AR DY TO REA NGE CHAR LIFE? YOU Artwork_TS_Ad_185x135.indd 1
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Open handshake or clenched fist? When your franchise business earns its full potential, everyone is happy in some way or another. But when things go pear shaped in the system, what can you do to resolve the issues and maintain healthy franchise relationships?
Franchising businesses all vary in product, culture and system, but they do have a few things in common: interdependent relationships, profit-making goals, and most disliked: at times, conflict. Having conflict isn’t necessarily a bad thing. It may mean that some communication approaches or behaviours are incompatible with each other, but the business goals of the franchise are still the same.
So when conflicts or disputes arise, what can you do? Firstly, we encourage parties to a franchise agreement to approach and negotiate with the other party. If the dispute is still not
34 Business Franchise Australia and New Zealand
resolved, the Office of the Franchising Mediation Adviser (OFMA) can assist by providing educative advice and information on the process of mediation, and appoint a mediator to the dispute. We also assist parties to better understand or clarify their issues and interests, and facilitate dialogue between parties where possible. The OFMA is an independent office, appointed by the Federal Minister for Small Business to provide mediation and other supportive services for disputes arising under the Franchising Code of Conduct. Where parties to a franchise agreement are in dispute, either one may contact OFMA and request information and assistance.
“Mediation is collaborative and co-operative, rather than competitive. It allows the parties an opportunity to voice their concerns to each other with a “mediator present.” Hong-An King | Assistant Mediation Adviser Office of the Franchising Mediation Adviser
The OFMA has a panel of experienced franchise mediators to assist you to have a productive conversation with your franchisor or franchisee(s) with a view to resolving issues in ways that meet the needs and interests of both parties.
Dispute Resolution Procedures under the Franchising Code of Conduct (Code) The Code applies to all franchises in Australia and Part 4 of the Code provides a mechanism for the process for resolving franchise disputes. The process can be initiated by the franchisor or the franchisee. It is confidential and the goal is to reach a negotiated agreement that both parties can live with. Mediation is collaborative and co-operative, rather than competitive. It allows the parties an opportunity to voice their concerns to each other with a mediator present. A mediator is an independent person with expertise in the franchising sector. All mediators appointed by the OFMA are Nationally Accredited Mediators. Their role is to help facilitate the discussion rather than making a final decision on who is ‘right’ or ‘wrong’.
Outline of the steps for Dispute Resolution under the Code 1. Send a letter or Notice of Dispute to the other party This is a requirement under the code as the first step in resolving the dispute. Under the Code, the Notice of Dispute must outline these three essential elements: a) The nature of the dispute
b) What outcome the complainant wants c) What action the complainant thinks will settle the issue. Once the letter or Notice is sent to the other person, both parties are required to try and settle the dispute. However, if the dispute is not resolved after 21 days, then either party may contact our office to appoint a mediator. 2. Write a request to the OFMA to appoint a mediator Under the Code, OFMA can appoint a mediator to the dispute once we receive a written request from either party. The appointment of the mediator will depend on the nature of the dispute and the location of the parties. 3. Attend mediation Once a mediator is appointed, both sides must attend the mediation. Failure to do so would be in breach of the Code.
Benefits of mediation to keep in mind Mediation is a helpful process for both parties, whether they are the complainant or respondent. There are many benefits, and here are just a few: • The process of mediation assists parties to understand their own issues better as well as the other side’s; • It provides an opportunity to strengthen and maintain the franchise business relationship in the long term; • It seeks to resolve various types of conflicts quickly and efficiently; and
• It is cost effective, especially in comparison to the cost and time of going to court.
What have others said? Mediations that are often reported as productive and successful tend to have parties who arrive at the mediation prepared with knowledge of the matter in terms of the facts and possible solutions. When parties come to the table with a willingness to take the interests of the other party into account and actively engage in open and frank discussions, there is a higher rate of satisfaction for all parties involved.
OFMA’s other services Furthermore, the OFMA can assist either party in various ways, whether it be clarifying the issues, referring them to relevant advisory bodies, provide guidance in understanding the elements of a Notice of Dispute. The OFMA also offer a free Early Facilitation Service for matters where there is only one or two straightforward issues that may not require the time or cost of the usual mediation process. Through this Service we contact the other party and try to facilitate agreement over the phone. If you would like to seek further information or would like to have a free and confidential conversation about a problem with your franchisor or franchisee, you can contact the OFMA on: P: 1800 150 667 E: office@franchisingmediationadviser. com.au W: www.franchisingmediationadviser. com.au.
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Franchisee beware! Clause 22 of the Code – Termination without cause
may invest a substantial sum to establish their franchise. A retail franchise including fees and fitout could be between $250,000 and $500,000. The franchisee may need the first term or even their second term of the franchise to get a return on their investment. So let’s look in more detail at Clause 22 ‘Termination - no breach by franchisee’ to understand what is at stake. This clause applies if: a) a franchisor terminates a franchise agreement: i. in accordance with the agreement; and ii. before it expires; and iii. without the consent of the franchisee;
Paul Kelly was right on song when he wrote his fabulous song... “From little things big things grow”. It’s the little things in a contract that can matter the most and this applies to franchise agreements. The main terms are apparent for example, the franchisees’ obligations to pay a franchise fee, ongoing royalties and market levies, the restraints, compliance with the operating manual and system supplied by the franchisor.
An experienced franchise lawyer reviewing a franchise agreement will dig deeper and look at other issues such as the right of the franchisor to terminate an agreement, what occurs on expiry of the franchise term, the non-compete provisions on expiry and other important issues. Clause 22 of the Code is a provision that has had little attention from the ACCC (Australian Competition and Consumer Commission) or the courts. A clause may be tucked away in the franchise agreement which could be a time bomb for franchisees giving a franchisor the right to terminate the franchise where there is no breach by the franchisee. A franchisee
36 Business Franchise Australia and New Zealand
b) The franchisee has not breached the agreement; and c) Clause 23 does not apply (termination for special circumstances such as bankruptcy, fraud and abandonment). It is worth noting that a condition of a franchise agreement that a franchisor can terminate the franchise agreement without the consent of the franchisee is not taken to be consent. Before terminating the franchise agreement, the franchisor must give reasonable written notice of the proposed termination, and reasons for it, to the franchisee. The section on resolving disputes ‘applies in relation to a dispute arising from termination under this clause’.
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“You need to know whether the franchise agreement gives the franchisor this contractual right to terminate on reasonable notice for no cause.” Robert Toth | Partner Wisewould Mahony Lawyers
But: a. ‘reasonable written notice’ is not defined. Therefore what may be considered reasonable by a franchisor may not be considered reasonable to a franchisee. b. ‘reasons for it’ is not defined. There is no guidance as to whether the reason should be reasonable or legitimate. It could be just a bad, vindictive decision. It does not say the decision must be made in the franchisor’s legitimate commercial interests or that there has to be a genuine business case for the decision. Franchisor and franchisee interests are generally aligned when they enter into a franchise, however as time goes by for a variety of reasons, their interests may diverge and in some cases the relationship sours. This could arise from a breakdown of their working relationship, a lack of trust or an inability to communicate. It may also arise if the franchisor considers the franchisee is not performing well or feels the franchisee is no longer a part of the team sharing the common vision. The franchisee on their part may simply be asking legitimate questions of the franchisor and asking the franchisor to deliver on what it promised. The franchisor may see an opportunity to offer the franchise to a better operator or even take over the franchise.
DANGER ZONE The provision in the franchise agreement may be as simple as the following: ‘The franchisor may exercise its rights under Clause 22 of the Code’. Pretty innocuous really, unless you or your lawyer understand what this means. It means that even if the franchisee is
performing extremely well, meeting all its obligations, following the system and doing all that is required of them, the franchisor can serve a notice on the franchisee to terminate the franchise without cause. This is a devastating notice for a franchisee to receive and may crystallise a huge financial loss to them. The franchisee will have no opportunity to obtain a return on its investment and effort in building the business and any goodwill or ability to sell or transfer the franchise as a going concern will be lost. Not fair you say? I would certainly agree!
The franchisor’s perspective: Should a franchisor rely on this right to terminate on reasonable notice if such a clause exists in their franchise agreement? Even if such a clause is in the agreement should a franchisor exercise that right? As much as franchisors may like to reserve this right they need to consider the impact of having this type of provision in their agreement. It will no doubt be a disincentive to potential franchisees. Why would a franchisee pay a franchise fee on an expectation of a five year term when in reality the franchisor can rely on this right to terminate the franchise on reasonable notice for no cause at any time within that term?
The franchisee’s perspective: You need to know whether the franchise agreement gives the franchisor this contractual right to terminate on reasonable notice for no cause. If the franchise agreement does not expressly grant this right, the franchisor cannot give notice without cause. If the agreement does have the right, consider whether to proceed and discuss this issue
38 Business Franchise Australia and New Zealand
with the franchisor and your lawyer. It may be that they will agree to delete the clause or at least restrict the right.
Code Review: This issue was touched on in the review of the Franchise Code conducted by Alan Wein. The Terms of reference were extremely specific, however Wein did touch on this issue [in Part 9 – Page 154] of the Report to the Government which made reference to the ‘termination without cause’ provision relevant to the automotive industry. Wein indicated there were few complaints by franchisees of franchisors relying on clause 22 and if such action was taken by a franchisor issues of ‘reasonableness’, ‘conscionability’ and ‘good faith’ would be tested by a Court and depend on the facts in each case. His view was that termination without cause where no reason or no reasonable reason was given would be unlikely to be upheld by a Court in favour of a franchisor. It’s the little things from which big things may grow! Robert Toth is a Partner with Wisewould Mahony Lawyers and has authored many articles on franchising and dispute resolution in franchising. He acts for and has assisted a number of international franchisors and companies, to establish business operations in Australia. Wisewould Mahony is an Australian law firm that is recognised in the area of franchise law providing clients with corporate and commercial advice. Contact Robert at: Phone: 03 9612 7297 Email: robert.toth@wisemah.com.au Web: www.wisewouldmahony.com.au
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“Having a strong visual brand can help franchisees achieve growth by connecting with their target markets and driving engagement.” Dan Ratner | Managing Director uberbrand
Australia is being continuously flooded with new franchises and brands. Increased choice and the ability to shop around more easily means it is more important than ever to establish a loyal customer base. A strong brand identity can help do this. Getting the visual element of a brand right can be a difficult task but, if done correctly, can really drive customer engagement and improve your bottom line. Having a strong visual brand can help franchisees achieve growth by connecting with their target markets and driving engagement. The best visual representations accurately and concisely reflect the overall brand message. But getting it right is no easy task. Franchisors should create a set of visual guidelines for their franchisees to easily follow. The biggest issue for franchisors is if there is inconsistent delivery of the visual identity across their franchisee base. Franchises such as McDonald’s is an example of how powerful coherent branding can be across the world. It only works because it is consistently delivered regardless who operates the franchise. It is important for franchisors to understand that creating a successful visual brand identity is not as simple as designing a
logo. Everything needs to link back to and support both the business and the brand’s intention. While there is no magic formula for getting a brand’s visual identity right, there are elements that successful franchisors consistently use. People say ‘never judge a book by its cover’ but, in franchising, the ‘cover’ certainly contributes to the overall impression. Franchisors who follow these six key steps are more likely to develop a successful visual identity for their franchisees to follow. Franchisees must understand this process and the importance of following visual branding guidelines.
1. Understanding the audience The first step for franchisors is to understand who you are talking to. One of the greatest challenges of visual branding is creating something that evokes the right feelings about your brand in your audience. Your brand is simply a perception, it is how people perceive you; ultimately it is the sum of every impression your customers receive from you. This is particularly important for franchises, where visual branding is vital to connect with audiences and to attract franchisees owners themselves. Once you know who your audience is, you can consider what you want them to think and feel about your brand. Don’t try to convey too many messages at once as the messages may end up diluting each other and get lost. It’s best to select one idea that you really want your customer to understand, then focus on designing the visual identity to communicate that. Franchisors must understand that what evokes a positive reaction with one group might have the opposite reaction in another, so an accurate representation and understanding of your audience is vital for brands when developing a new logo or visual identity. Understanding your customers is the most fundamental step in building
your brand’s visual identity, but it’s often overlooked. This must be communicated to franchisees in detail, so they know who they are targeting. This will affect how employees market themselves and converse with consumers.
2. A singular message While evoking that right feeling through your visual identity is vital, it is important not to represent too many messages at once or you risk diluting your image. Decide on the single most important idea you want your customer to get when they look at your brand. Design a visual identity that truly represents that one idea. This helps to provide a clear and concise design objective and also makes briefing your designer much easier. For example, Harley Davidson’s slogan, ‘American by birth. Rebel by choice’, is targeted at the high-end market of successful men who want to relive their youth and feel cool and rebellious. KFC’s ‘finger lickin’ good’ gives the impression the food is so delicious you don’t care who sees you licking your fingers. It is vital for the franchisor to communicate this idea to their franchisees to ensure they are delivering on the same message at the front end.
3. Clear brand attributes and benefits If you are designing a visual for a brand then think about the specific benefits the brand provides. It is important to differentiate between features and benefits. Features are product specifications, while benefits are about fulfilling needs. For example, some of the features of Curves gym include the gym facilities and nutritional advice available. The benefits would be helping women feel empowered to get fit and feel
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healthy. Reflecting these benefits in your brand creates an association between the benefits and the brand in the minds of your customers.
“While there is no magic formula for getting a brand’s visual identity right, there are elements that successful franchisors consistently use.”
Again, these must be communicated to franchisees so they can clearly outline features and benefits. This will also ensure their marketing is coherent.
4. Symbols For some brands, symbols can be a simple but clever way to create shortcuts that evoke feelings or represent a brand’s attributes. For example, the deceptively-simple Amazon logo has an arrow pointing from the A to the Z, creating a subtle representation that they have everything you could need. The arrow also forms a smiley face, suggesting customers will be happy they chose Amazon. Nike uses the ‘swoosh’ symbol and this is also reflected in its slogan, ‘just do it’, because for Nike the brand is all about determination, effort and success. Domino’s is renowned for its two dice, using red and blue, while Vodafone uses its renowned bold red letters. 7-Eleven also has a well-known symbol using the 7 in numerals and the 11 in letters, which makes it easy for consumers to spot the sign when they’re driving. These symbols are used to help consumers think of the brand and what it stands for as soon they see it. Symbols are a significant part of the visual branding guidelines. It helps to make sure franchisees understand the importance of the brand’s symbol, what they mean and how they reflect the overall brand and its message.
5. Characters For some, having a brand mascot can be a great way to bring a brand to life, giving it personality and lifting it up from obscurity. This can work well for brands that otherwise might seem dry. Starbucks famously uses a twin-tailed mermaid in their logo to represent the strong seaport roots of the Seattle-based company and to provide an alluring mystery around the brand. McDonald’s has Ronald McDonald the clown, suggesting it’s a family friendly restaurant. KFC also uses the famous face of Colonel Sanders, the man who started the chain using his secret chicken recipe. Characters can be effective but it is important to choose or create a character that is suitable for your audience. For example, childish characters are unlikely to work with some adult audiences.
Again, franchisees will need to ensure they are using the character in the right way across the entire franchisor model. For example, Ronald McDonald is used on children’s happy meals and to promote children’s parties. You never see him being used to market Big Macs.
6. The right typefaces and colours Colours and fonts can elicit different feelings and responses in people, making them an important consideration. Famous brands have done this well. Barbie uses soft, rounded fonts and even has its own pink Pantone colour. Toys ‘R’ Us uses a backwards ‘R’ and bold primary colours to reflect its whimsical childlike personality. Your font should reflect what you are trying to convey, so they need to be considered and chosen carefully. Serif fonts (e.g. the little feet on Times New Roman) give the impression of maturity, where sans serif (like Arial or Helvetica) can appear more contemporary. Using upper case can give the impression of loudness or shouting while lower case typefaces appear more softly spoken, conversational and accessible. Different colours can also evoke different feelings. Yellow may be perceived as cheery, blue as clean and calm, and orange as energetic. Just like the Barbie pink, certain brands have created strong colour associations (‘Donut King pink’ or ‘Vodafone red’, for example). Sometimes combining carefully these chosen attributes with hidden or overt symbols can
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help underline brand messages McDonald’s is another example which uses its colours and font to represent its core audience, families. This is evident through its use of bright, strong and bold colours. By contrast, Gloria Jeans coffee shops uses darker brown colours and a coffee mug to attract an older, coffee-drinking audience. Visual identity is a fundamental part of any brand. Franchisors need to seriously consider what exactly they are trying to convey and the emotions they wish to elicit. Once this is decided, franchisors must ensure all of their franchisees understand the brand and what message it is trying to convey. This will ensure that the brand is consistently delivered from head office right through to the front door and beyond. Dan Ratner is managing director of branding and communications agency, uberbrand. He has more than 15 years’ experience in marketing, communications and branding and is passionate about branding as an enabler to fulfil organisational objectives. Working closely with uberbrand’s clients, Dan works to understand the current customer perception in the context of business goals. Dan works with well-known Australian brands across a variety of sectors including financial services, travel and education. For more information contact: P: 02 9331 7001 W: www.uberbrand.com.au
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building, cleaning & landscaping
Business Franchise Australia and New Zealand 45
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AUSTRALIA’S LOVE OF BEAUTIFUL HOMES AND GARDENS MEANS BIG BUSINESS
The cleaning services industry expects an increase of 2.2 per cent for the year with expected projections of $4.3 billion, according to IBISWorld 46 Business Franchise Australia and New Zealand
FE ATURE Owning your own home is one of the biggest Australian dreams. We aspire to it, plan for it and save for it. Then, once we have our own home, we take a great amount of pride, and spend a significant amount of money, on cleaning, maintaining and improving our most prized possession. Whether it is putting in the new pool, trimming the lawn, fixing the cracks in the garden path or adding the much sought after tool shed or cubby – our homes are in constant need of attention. Luckily, for the home owner and the vast number of franchises that service these homes and gardens, we often turn to professionals to help us maintain our properties. The domestic and commercial building, maintenance, cleaning and landscape industry has adapted to consumer demand. People are busier today than ever before. They have less time for maintenance and small projects around the home. It is easier for people to contract out the jobs to capable businesses than spend the time and money trying to do it themselves. This has resulted in a growth market for small business owners, including franchisees, to step in and complete these tasks once done by homeowners themselves.
A brand you can trust As the building, cleaning and landscape jobs required usually take place on our property and in our home, we want someone we know and can trust. A franchisee who lives locally and works for a well-respected brand appeals to us. We know the name of the franchise, it has most likely been recommended by a neighbour or friend, and once we take the first step and call the local franchisee to install our kerbs or repair our roof, chances are we put their business card on our fridge and call them every time we have a similar project or repair. This is assuming they deliver a
high quality product with the best customer service.
antenna installation, mowing, fencing, roofing and landscape maintenance.
With so much money being spent in home renovation and maintenance, as well as cleaning, gardening and landscaping, the franchises that offer these services are thriving. If working with your hands appeals to you and you have background in building, construction, gardening or other trade related skills, or you have just decided it is time for a change, the opportunities available in this sector of franchising are nearly limitless.
Add to this the professional services of mortgage brokers, real estate agents and property inspectors and there is certainly a wide market appeal.
There is a franchise system to cover nearly every area of the building, cleaning and landscape industry. Specific franchise systems include, but are certainly not limited to, kerb installation, building maintenance, home waterproofing, shed construction, pavement crack repair,
Growth sectors The $3.5 billion building industry is one that is leading the way. A steady rise in home-building approvals, has led to increased building activity, and outstanding opportunities for construction and design companies to take on franchise partners. The market for home improvements in Australia is also big business. Many of us are feeling the pinch of rising costs of living coupled with uncertainty within the real estate market, and are choosing to renovate rather than move.
Business Franchise Australia and New Zealand 47
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Owning your own home is one of the biggest Australian dreams. We aspire to it, plan for it and save for it. Australians have always been passionate about home renovation and improvements, but even the do-it-yourself renovators often require the assistance of professional experts. Recent Australian Bureau of Statistic figures show the trend in home renovations is increasing and that the sector is currently valued at around $550 million. The cleaning services industry expects an increase of 2.2 per cent for the year with expected projections of $4.3 billion, according to IBISWorld
Building towards a brighter future One of the biggest appeals toward this type of franchise for many new and potential franchisees is the fact that you get to enjoy the flexibility of making your own hours and you spend a great deal of your time outdoors. Although there is the administration side of things, bills to be paid, marketing strategies to implement and business plans to be reviewed, the majority of your time will be spent on location, helping people to enhance and maintain their homes and their property. In buying a franchise, the difficult side of establishing the business and developing operational procedures has already been done for you. This allows you to get straight to work finding your customers and then delivering top quality products and excellent customer service. This allows you to choose the particular franchise system that most aligns with your passions, knowing that the demand for your product exists and the tools necessary to find, generate and keep your customers are already in place. So in considering a career in the building, cleaning and landscape sector of franchising... remember it is just as important to build relationships, build trust with your customers and build your business with the assistance of the franchisor.
48 Business Franchise Australia and New Zealand
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Find out more about health, beauty and fitness franchises in the november / december edition of Business Franchise Australia and New Zealand. On sale 7th November 2014.
Business Franchise Australia and New Zealand 49
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E x per t Advice
FRANCHISING IS A SERVICE INDUSTRY Any business can be franchised. All that is required is a system. When everything in the business procedure is systemised it can be duplicated and become the perfect vehicle for a franchise. All a franchisee then needs to do is follow the manual that describes and explains the system. That of course is the easy part. It is the unwritten things like personality, how to communicate with customers and how often the book work needs to be updated that are not always written in a manual as part of a business system. If you have aspirations of enlarging your business into a franchise, you will find when choosing your franchisees, consideration should be given towards their personality and communication abilities. All businesses provide a service to a
“As a franchisor your customer is the franchisee. It is your duty to see they make a success of the business.�
50 Business Franchise Australia and New Zealand
fe feature at u r e “Taking on your first franchisee is the hardest part. Anyone who is interested looks promising, and if they are keen and have the money, checking whether or not they would be a worthwhile franchisee gets forgotten.” Julie Finch-Scally | Founder The Duster Dollies
customer. Whether it is a retail business that sells products through the internet, or a service industry where customers are visited in their home, office or served over the counter, every business requires the operator to communicate with a customer. We’ve all been into cafés where the person bringing over the coffee is bubbling with personality, and notices straight away that the teaspoon is missing. And seen the opposite where the coffee is practically thrown down in front of you and you have to ask for the napkins but wish you hadn’t because of the look you receive. If you considered the latter person not suitable to the service industry you would probably be right, and you would be hesitant to take them on as one of your franchisees. The former assistant would not only make you want to return to that café another day but would be considered an asset to any business. When starting up a franchise this is a large problem facing all franchisors. Taking on your first franchisee is the hardest part. Anyone who is interested looks promising, and if they are keen and have the money, checking whether or not they would be a worthwhile franchisee gets forgotten. Most franchise application forms request information about financial details and work backgrounds, they will also ask details of schooling and names of people who can be contacted for a reference, but rarely do forms try and find out whether the prospective franchisee would be the right person to work with. Emails, phone calls and face to face contact require an ability to communicate. An ability to ask the right questions to ascertain what a customer really wants, the ability to hold one’s temper when things go wrong and the customer becomes
angry or even abusive. No the customer is not always right, but being able to discuss matters calmly no matter what the customer’s mood is an art and not everyone possesses this. Can these abilities be taught? You can write in a manual what a person should do when this or that happens, and over time they will become adept at handling these problems, but people who have the right personality to start with will find it a lot easier. Because many people granted a franchise don’t have that initial friendly and cooperative personality they quite often have to be nurtured until they can handle all types of customer’s problems and successfully operate their business. It is this nurturing that makes franchising a service industry. As a franchisor your customer is the franchisee. It is your duty to see they make a success of the business. According to the Oxford dictionary the word ‘Service’ doesn’t only mean servitude. The definition given for service of a customer is ‘Expert assistance or advice given by manufacturers or vendors’. As a franchisor has developed a system and sold the concept onto a franchisee this type of service is the requirement of a franchisor. Many franchisors will tell you that it is up to the franchisee to make their franchise a success. And if the franchisee does not follow the system and expects the business to make money without any effort, then this would be correct. But what about those new franchisees that are keen but have never run a business before, never worked in the industry they have just chosen and do not have a great deal of confidence in their own ability? Every time you read an advert for franchisees you will see the same kind
of person required. Every franchisor is looking for people with ‘drive’; ‘passion’; ‘never believe in compromising on quality’; ‘become part of a team’; ‘like a challenge’; all great qualities. But not everyone can be like that, and if they are they have probably already started their own franchise. Unfortunately, because Australia has the highest number of franchised organisations in the world for its population, every franchisor has to be content with people who might only have one of two of those required qualities. And because of this, the new franchisee has to be taken care of and nurtured until they can stand on their own two feet and run their business with confidence. Ongoing training of new franchisees is a must. Too many franchisors think once a person is shown what to do they can be left to their own devices. This can lead to some very unhappy franchisees, and franchisors have been taken to court because their franchisee isn’t earning what they expected and blame the franchisor for the problem. Each franchisor has the responsibility to see their franchisees are successful. Yes this can be expensive and time consuming, but if you want your franchise to be run well and your brand to become well known, all your franchisees will need to be supportive and enjoy running their business. How can you achieve this? Firstly ensure when granting a franchise you know the person, their family and their personality. You might find it useful prior to presenting the prospective franchisee the Franchise Agreement to invite yourself to a meal in their home. Spending a couple of hours in that person’s own surroundings will give you an insight into their personality. Oh yes, everyone will be on their best behaviour when you first arrive but by the
Business Franchise Australia and New Zealand 51
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time you have eaten and are ready to leave everyone will have relaxed and be their regular selves. It is also wise to get the prospective owner to join in on a normal days work. Sometimes people’s concepts of what they are required to do as a franchisee is less than the job demands. This process not only helps you get an insight as to whether they will fit in, it lets them discover if it is the kind of work they want to do. Make the day when they signup as a new franchisee a celebration. Invite your employees, franchisees and their and your families to the signing and induction. People will feel part of a team straight away if they meet everyone and are made welcome right from the beginning. They will become part of your extended family; part of the company and feel more at home. Spread the training amongst other franchisees. This way the new member will not feel isolated, but part of the team. It will also make it easier for your franchisees to get on with each other. Franchisees need to be able to talk and support each other. Having that depth of friendship between
On a weekly or monthly basis hold franchisee meetings to discuss your plans and any problems that may have occurred. Remember meetings can be linked by phone or video instead of everyone having to travel. These kinds of meetings make everyone feel not only part of the team but a member of your large family.
you have support from the other franchisees that will quell any objections or help the unhappy franchisee sort out their problems, you could see all your hard work disappear overnight. By being available at all times and supporting your franchisees so they know if they have a problem they can call upon you, is part of the service of providing and selling a franchise. In other words being a franchisor.
Also hold an annual conference where all your franchisees can meet and catch up. Make it a weekend affair. The franchisees pay their own way, all you do is organise the accommodation, the conference and the meals. Have a section in the Franchise Agreement about everyone attending. Hold your awards night during the conference and make all your franchisees feel important. Hand over some of the conference tasks to some of the franchisees. If they can work as a group with other franchisees everyone will feel they are important and needed.
Julie Finch-Scally spent twenty years in the cleaning industry by establishing and becoming the Managing Director and Franchisor of The Duster Dollies until her retirement in 2012. Julie is now well known as The Guru of CleaningÂŽ and currently provides advice on all aspects of cleaning through her books and the media.
your franchisees will keep your franchise family together.
As a franchisor you need your franchisees on side. One unhappy franchisee can cause more damage by spreading their discontent amongst the others very quickly. Unless
52 Business Franchise Australia and New Zealand
Provide service to your franchisees and they will provide a service to their customers, help your company to grow and become well known thereby becoming a great success.
For more information visit: Web: www.juliefinchscally.com.au
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www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 53
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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.
“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 55 AU franchise mag V3a 24March 3778.indd 1
26/3/13 9:54:05 AM
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E x per t Advice
“An employee works in your business and is part of the business. A contractor runs their own business.” Steve Vesperman | Deputy Commissioner, Small Business/Individual Taxpayers Australian Tax Office
ATO warns against treating employees as contractors It’s one of the contentious issues facing business owners and operators… are workers employees or contractors? Just because they have an Australian business number (ABN), work infrequently or only do short jobs, specific tasks or projects, doesn’t mean they are contractors. The ATO’s Steve Vesperman says that an employee works in your business and is part of the business. A contractor runs their own business.
ATO – CASE STUDY Landscaping and gardening
“We’ve got an online employee/contractor decision tool which can help you make the right decision.”
it doesn’t matter what they are called or
Steve says there are a number of myths that have influenced businesses to get it wrong, possibly exposing them to penalties and charges.
withhold tax.
“Just because someone has an ABN, has a business name, submits an invoice for payment or asks to be engaged as a contractor, doesn’t make them a contractor. “And someone who has been engaged as a contractor for one job doesn’t make them one for all jobs. “If someone is legally an employee then
Ray owns a home gardening and maintenance franchise and has taken on a job which includes concreting a driveway. He engages Bob’s concreting franchise to do the concreting work and also hires two labourers to do the groundwork and planting. The labourers are provided with tools and their work is supervised by Ray. Bob submits an invoice to Ray for the cost of materials and the labour done by him and his employees. Ray tells his two labourers they are contractors and must invoice him at the agreed hourly rate. He tells them since they are contractors he’s not responsible for their tax or super. Has Ray got it right?
56 Business Franchise Australia and New Zealand
whether they have a contract……they are
an employee and you have an obligation to “And, if they are eligible employees, you have to pay superannuation guarantee contributions on their behalf into a
complying super fund or retirement savings account at least four times a year.” For more information go to: W: ato.gov.au/Business/Employee-or
contractor.
Employee or contractor Only partly. Bob’s concreting franchise is a contractor. He has his own business and hires his own workers. Bob’s responsible for his own tax and super obligations. However, when it comes to Ray’s two labourers, the ATO’s Employee/contractor decision tool would have indicated they are employees, since they don’t run their own business but work for Ray even if it is only on an occasional basis. Ray is responsible for withholding tax from the labourers’ pay, and possibly making super contributions for both of them. By not doing this, Ray risks significant penalties and charges.
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JA N-PRO
a world class franchise With over 12,000 franchisees worldwide, JAN-PRO is a world class commercial cleaning franchise. Starting in the US in 1991, and expanding internationally in 1999, JAN-PRO’s first Australian office opened in September 2011. Consolidating their growth since 2011 in Brisbane, Melbourne and Sydney, offices will shortly be opening in Perth and Adelaide, proving that JAN-PRO as one of the fastest growing cleaning groups in the world and on track to become the best franchise system in Australia. Further proof of the phenomenal annual growth of JAN-PRO is shown from their many accolades received, including, in 2014, Number One Commercial Cleaning Franchise Overall plus Number One Fastest Growing Commercial Cleaning Franchise Globally by Entrepreneur Franchise 500 ranking.
The JAN-PRO guarantee JAN-PRO service any commercial facilities including offices, health clubs, medical centres, banks, churches, restaurants and day-care centres and prides itself on providing all clients a written quality satisfaction guarantee on its services. Riaz Rafiq, Managing Director of JANPRO Cleaning Systems for Australia and New Zealand says, “The world famous JAN-PRO Guarantee provides a satisfaction safety net for every one of our clients. This is imperative in an industry where substandard service is unfortunately prominent – we’re doing everything we can to stamp this out.” Anton Martin, Director of JAN-PRO Cleaning Systems Melbourne says “Our customer service, inspection methods and regular customer contact differentiates us from our competitors; we are part of a service-based industry, so we like to put an emphasis on customer service,” he said. With a cleaning schedule customised to fit around the client, JAN-PRO creates
corporate cleaning packages and anything other than a fully satisfied client just isn’t an option.
depends on the type of franchise plan they buy, and of course, how hard they are willing to work to build their business.”
Nationwide opportunities
Training and support
With the two additional offices to be opened shortly in Perth and Adelaide, JANPRO are seeking franchisees from across Australia, to join the 12,000 franchisees across the globe, who generate nearly $300 million in sales per year between them.
JAN-PRO provides all initial training through its five-week training program so previous cleaning experience is not necessary. JAN-PRO thoroughly trains franchisees in all processes, and then continues to support its franchisees going forward as they build their business. Full administrative support is also provided to franchisees, with all billing, collections and operational work completed by Head Office.
Master Franchisors for JAN-PRO NSW Andrew Barker and Sam Clifford have recently joined the JAN-PRO business and bring with them a wealth of knowledge. Bringing his experience as a CEO of another global franchisor and with an extensive background in commercial cleaning franchising, Andrew says, “JANPRO sets itself apart from other franchisors due to the quality of its training, pricing of client contracts and ongoing operational support. “Our focus is Western Sydney as this has been identified as the fastest growing region in Australia today with massive plans for business and commercial growth in Parramatta and all outlying suburbs.” Anton continues, “We look for growth potential when we seek our franchisees and we want people with long-term outlooks, not just those seeking short-term gain. How much money a franchisee can make
58 Business Franchise Australia and New Zealand
Riaz adds, “We are different because we empower our franchisees to grow their business. We provide a thorough training program for new franchisees and continually invest in training to make sure our business owners are well equipped to run their business.” With most economists and analysts agreeing that commercial cleaning is a recession-resistant business, and with franchises from as little as $16,500 plus GST, there’s never been a better time to join this global award winning franchise. For further information contact: P: 1300 JAN PRO or 03 9077 0075 W: www.jan-pro.com.au
VOMPDL UIF LFZ UP ZPVS 46$$&44 "XBSEFE UIF GBTUFTU HSPXJOH GSBODIJTF ZFBST SVOOJOH +"/ 130 PGGFST DPNNFSDJBM DMFBOJOH GSBODIJTFT TUBSUJOH BT MJUUMF (45 With all of these accolades it is NO wonder that our JAN-PRO franchisee ranks have more than doubled over the past six years to well over 10,000. To find out more about how you too could join our fast growing ranks please visit www.jan-pro.com.au or call us at 1300 JAN PRO.
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What to ask and what to say
How to find out what you need to know about your ne w business Going into business on your own is a big decision. Taking the leap from employee to business owner can feel daunting and exciting and having access to the right information will make your decision an easier one.
It’s important to take your time, don’t feel rushed into making your decision. You need to make sure you are equipped with the information you need to make the right decision. You can find out a great deal of information online, but nothing beats having the chance to sit face to face with a Franchise Development Manager to find out more detailed information so that you can dig deeper and find out more about your potential new business. According to Forbes, non verbal cues, our body language, can have over four times more impact than the spoken word. You will get a lot more
out of a face to face meeting than you will out of a phone call. It’s your chance to speak first hand with someone from the business that you could be joining. Working in the cleaning, landscaping and lawns and gardens industries can be incredibly rewarding, but it’s also physical work and it’s important to consider how you will deal with the physical element of the work. When looking at franchise options, make sure the franchisor provides you with the opportunity to go out with a franchisee to see what a day in the business looks like. It’s also a great chance to see what the earning potential can be in the franchise. It’s a great chance to experience the business but also speak with the franchisee about how they find running the business. The valuable feedback you receive will help you to determine if it’s the right choice. The great thing about working in these industries is that every day your work speaks for itself. You see the results of your work and that will only leave the customer thrilled with the results. Seeing the physical transformation that can take place from a job well done is extremely satisfying. While having the chance to spend some
“Word of mouth is one of the biggest ways you will be able to generate customers to build your business.” 60 Business Franchise Australia and New Zealand
fe feature at u r e “Your customers are your greatest asset – learning how to work with them is a skill that can only help your business.” Bill Vis | Founder & Chairman V.I.P. Home Services
time with a franchisee is great, having the opportunity to speak with a range of franchisees adds to the experience. The franchisor you are speaking with should be able to give you this option. Make sure you can speak with franchisees that are new and those that have been with the brand for many years. These different perspectives will help you to see what it’s like running the business at the beginning and over time. Having the chance to meet your Support Manager is an important part in the process of choosing a franchise brand. Your Support Manager is your link to the franchisor and your business. They are there to guide, help and support you. It’s important you get to meet them, have a chat, and see what the rapport is like between you both. After all, you will be working closely with your Support Manager and you want to make sure that you feel there is the potential to build a positive relationship with them. Working in the cleaning, landscaping and lawns and gardens industries is all about working with customers. You need to enjoy working with people and take pride in providing customer service. Word of mouth is one of the biggest ways you will be able to generate customers to build your business. Providing exceptional service to your customers will help to make this happen. Make sure that when you spend time with a franchisee you also have the chance to meet the customers if it is possible. Seeing how the franchisee and the customers interact will give you a great insight into what it’s like working with customers on a day-to-day basis. Your customers are your greatest asset – learning how to work with them is a skill that can only help your business. Often, working in the cleaning, landscaping and lawns and gardens industry means you are a mobile business. Your day-today office is your vehicle. Finding out advice on what type of vehicle works best is important information for your potential
business. If you will need a trailer for your business, find out the specifications of the trailer and if the franchisor will arrange this for you or if you will need to do this on your own. Purchasing a franchise isn’t just about joining a big brand, it’s about the initial and ongoing training that you can access. Going into business on your own is hard enough – without support and training, it makes it almost impossible. Training and support make the journey of owning your own business less daunting as you know you aren’t on your own and help, if you need it, is only a phone call away. Be sure to find out what type of training is available. The training needs to be about how to do the work, but also how to run the business. As a business owner you need to work both in and on the business. The training opportunities should also be available on an ongoing basis. This will help you to continue to build your skills for your business. Marketing is an essential part of any business. When joining a franchise you are essentially purchasing the right to rent the brand for your business. It’s important to find out what the franchisor does to increase brand awareness, but also what assistance and help they provide to you, as the franchisee, to build the brand in your area. Finding out the broader marketing activity and how this can combine with local marketing initiatives is an integral part of running your business. As cleaning, landscaping and lawns and gardens are service industries the products and equipment you use in your business are vital. With cleaning, the products need to be able to deliver outstanding results. There should be training provided on how to use the products while also explaining why they work so well and why you should use them in your business.
When it comes to your equipment, it’s important to ask who the supplier is and how you can purchase the equipment you will need for your business. Will you need to purchase the equipment? Will the franchisor arrange this for you? Being part of a franchise brand also brings with it many benefits such as group discounts. Due to the buying power of franchisors, it means franchisees receive savings across areas such as products, equipment and possibly printing and media buying. As an independent operator, it would be difficult to generate the savings and discounts that franchisors can achieve. It’s another benefit of being part of a franchise brand, but be sure to ask what discounts are available to you as a franchisee if you were to join. Most importantly, enjoy the process. Making the decision to become your own boss and be in charge of your financial future is exciting. We, as franchisors, want to work with you to help you achieve your personal and business goals. We’re here to give you the information you need to help you reach your decision. By reading this column, you’re already on your way to being prepared and finding out the information you need to make a sound business decision. We wish you all the best with your exciting next chapter as a business owner. Bill Vis, Founder & Chairman, V.I.P. Home Services. V.I.P. is a national franchise network that offers Home Cleaning, Commercial Cleaning and Lawns and Gardens franchises. Over the last 35 years V.I.P. has helped over 4,000 people become successful business owners. Contact: P: 13 26 13 W: www.viphomeservices.com
Business Franchise Australia and New Zealand 61
FE ATURE
H ave your say
UNLOCK YOUR
POTENTIAL For over twenty years the Hotondo Homes network has been offering local builders the opportunity to unlock their potential to build a business. With over 80 franchisees, numerous sales offices and display homes across the country, the Hotondo Homes brand has become synonymous with quality workmanship and excellent customer service. The key to the network’s success has been built by the membership of driven and ambitious local builders who are looking for the education and support they need to grow. Having only been a part of the network for two years, Ballarat franchisees, Adrian and Amira Willingham and Brenton and Lisa Simpson, were drawn to the network to pursue their dream to work for themselves and create the best life possible for their children. The Ballarat builders share their story.
The Hotondo Homes appeal When Ballarat natives and long term friends, Adrian Willingham and Brenton Simpson, received a leaflet about the benefits of joining Hotondo Homes, they were prompted to make a decision that would change their lives. “We saw it as an opportunity to work for ourselves and invest in our family’s future,” says Adrian. “We each have over 20 years’ building experience and had both run our own businesses in the past, so we knew what was involved.” Whilst naturally the pair had their reservations initially, they were mostly confident because of the strong connections they had already established in Ballarat.
Left to right: Brenton Simpson, Amira Willingham, Adrian Willingham, Lisa Simpson, Adam Stainer, Alannah Simmons, Brett Simpson.
“We knew a lot of people in the local area and we had built a strong reputation,” says Adrian. “We also did our research,” adds Brenton. “Whilst there was a saturation of volume builders in Ballarat, we knew from experience that people were sick of the lack of communication, non-personalised service and inflexibility of volume builders. So there was definitely a niche for a builder that would keep customers informed and look after their needs.”
Team work and shared goals Adrian and Brenton understood that in order for their business to thrive, that they needed to work together as a team, put aside their egos and remember they have a shared goal. “We each have our own area of expertise and we respect each other’s skill set, so we don’t step on each other’s toes,” continues Adrian. “We also forget quickly. If we have an argument, we just resolve it and move on. At the end of the day, we both want the same thing.” “We trust each other,” adds Brenton. “It’s
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comforting to know that if I take a day off, that I can leave Adrian in charge and know that things are being taken care of, and vice versa.”
Supported growth and hard work Upon joining, the franchisees were assigned an experienced Sales and Operations Manager. Even though the boys have a good idea of what works well in their local area, they have been immensely appreciative of the expertise and advice the support staff have given them along the way. “We recently moved shop fronts to a more popular location and opened a display home. Tamika (Sales and Operations Manager), and Chris (National Sales Manager) gave us a lot of good advice when we were choosing the ideal location for both our display and shop front. Obviously they’ve had a lot of experience in knowing where’s the best site in order to get the most traffic, so it’s always good to get their input.”
Striving for more “We’re both really driven guys, so if it’s not right, it’s not right, and if it’s not good enough, it’s not good enough,” says Adrian. “We’re always striving to challenge ourselves all the time. We talk as a team about ways we can improve the business and how we can motivate our staff. We have a shared passion and that definitely keeps us on the front foot. “We don’t stop thinking about how to better the business,” adds Brenton. “And if we come up with a more efficient way to do something, we implement it.”
Work and life harmoniously linked Because family is important to the Ballarat builders, the fact that Hotondo Homes is a family business, made up of family franchisees, the company appealed to them. The team joined the network because their values were in sync and because they understood the need to secure their families’ financial position.
or dreading the thought. Brenton and I certainly spend a lot of time talking about building homes – so it’s definitely a passion. It has to be.” “We had to put in hard work and it’s finally paying off,” adds Adrian. “We no longer have to work weekends. We have hired a fantastic team that we feel confident about leaving in charge, so this has allowed us to spend some quality time with our kids.”
Systems for success The network’s tried and tested procedures laid out the necessary steps Adrian and Brenton needed to run their franchise. “The Hotondo Homes business model makes it easy,” says Brenton. “It’s all set out for you, so instead of winging it, which is what we had a habit of in the past, there is a process that we follow.” The boys also consider having access to a national marketing campaign that encompasses radio, press and television advertising to be a huge weight off their shoulders.
“We joined Hotondo Homes to give our children the best possible life we can,” says Lisa. “In terms of juggling work and family life, it has been tough, but things have definitely improved.
“We continue to be impressed by what the Marketing team present, and not having to worry about it is an added bonus.”
“We work hard at managing the demands of the business and family life, but work isn’t a chore,” continues Lisa. “We definitely don’t wake up not wanting to go to work
The builders’ believe that being recognised at Hotondo Homes’ National Conference last year as one of their proudest moments since joining the network.
Greatest achievements
“We weren’t expecting to receive any awards and walked away with the Most Improved – New Franchisee Award and Local Area Marketing Campaign of the Year for our shopfront launch. It was nice to be recognised among our peers, so we’re obviously doing something right!”
There’s a bright future ahead When asked where the team see their business in the next five years, they’re optimistic. “Last year and this year has been awesome,” reflects Adrian. “Last financial year we reported 30 jobs, we have moved to a new shop front and opened a new display home. Two years ago if we were told that we would be running these kind of numbers, we wouldn’t have believed it. Now we have set the eventual goal to comfortably build 50-60 homes a year. Ultimately we would also like to have more free time, but we’re confident we can make it happen.” Hotondo Homes has been building affordable homes for individuals and families since 1979. The family business is dedicated to quality, service and the local communities we work in. With over 80 franchisees Hotondo Homes is one of Australia’s largest building networks. Contact: W: www.hotondo.com.au/builder- franchise/
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fe feature at u r e
“The key to the network’s success has been built by the membership of driven and ambitious local builders who are looking for the education and support they need to grow.”
FE ATURE
T he C oncrete Cu t ter
The Concrete Cutter an established Franchise on the market
The Concrete Cutter was established by Bruce Miskin, who has almost twenty five year’s experience in the concrete cutting industry. Bruce is responsible for the training schedule of all franchise business owners thus ensuring you have a competent concrete cutter servicing your job. Regular franchise meetings are conducted where the latest techniques are communicated. At these meetings emphasis is placed on the importance of upholding The Concrete Cutter brand name to ensure the continuance of high standards. With owner operators living throughout 13 Melbourne territories, The Concrete Cutter is uniquely positioned to deliver top customer service. Considerable cost savings result from group purchasing power and combined advertising. Further to this the defined franchise territories result in maximum fuel savings and vastly reduced travel times. Brad Moore, who owns the Doncaster franchise servicing Melbourne’s east, has been with The Concrete Cutter for ten years. “It’s a great concept. It’s been good for me. I came in not long after it started,” Brad said. Establishing his business took hard work and he admitted there were tough times. “I used to stress a little when I was busy and had trouble passing jobs on to the others. Often they were busy as well. One or two run their businesses at a leisurely pace and can be choosey about taking on extra work.
I’ve just learned to accept it and do what I can do. “When I think about it, there are probably many businesses that would love to have a problem like that.” he said. There are many reasons why customers get their concrete cut and The Concrete Cutter offers a variety of applications to their customer base. “We cut a lot of joints in new concrete to control cracking; everything from back patios to factory floors. We cut up unwanted concrete slabs and driveways for removal or replacement. We cut kerbing for vehicle cross-overs and cut up damaged cross-overs and paths. We do trenches and openings for builders, plumbers and electricians and a hundred different jobs for home owners,” he explained. After ten years with The Concrete Cutter, Brad Moore has decided to sell his business. He is quick to point out what an enjoyable experience he found being a franchisee with The Concrete Cutter. “Doing a good job for the customers has been satisfying,” he said. “Also, the sense of achievement in prospering in my own business and providing for my family has been very rewarding. My wife is now expecting our fifth child. Even after ten years, some mornings I set off and I’m singing. It’s like an inner sense of wellbeing comes over me,” he continued. Brad says it has been a hard decision to sell the business that he worked so hard to build over ten years, and one that he has not taken lightly. “An opportunity has come up in a parallel field. I just hope I’m doing the right thing,” he said.
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Brad is asking $295,000 for his established franchise. This includes the vehicle and additional equipment. “The turnover last year was $175,000. That was down a bit because we’ve been building a new home and it’s been a distraction,” he said. In response to the opportunity arising from Brad’s decision to sell his business, franchisor Bruce Miskin had this to say: “Brad has been fantastic. I’d love it if the next dozen franchisees came from the same mould. He’s got a great work ethic and great people skills. He’s also a planner and an analyser. I remember in the early years he would keep performance records on every diamond blade we tried,” Bruce said. For the new owner of the Doncaster territory, Bruce continued, “My advice would be to negotiate to have Brad stay on for a while. Normally a new franchisee in a new territory gets a gradual start. In this case, it will be full-on from day one. Four weeks training will never produce a ten year veteran. “Whatever happens, we’ll ensure the new franchisee doesn’t get over run,” said Bruce. The Concrete Cutter seeks to expand in all states and invites enquiry. “Ready to go” Victorian territories are available in Geelong, Werribee, Sunshine, Lilydale, and Pakenham. Others may be available as a going concern (eg. Dandenong). For further information contact: Bruce Miskin, Franchisor P: 0499 399 355 E: bruce@theconcretecutter.com.au W: www.theconcretecutter.com.au
Only leaves one box to tick It’s Simple
No costly fitouts, no staffing problems, no real-estate leases.
It’s Fair
Franchise royalties are $150 p.w + gst. You keep the profits from extra effort.
It’s Effective
Advertising royalities are $60 p.w + gst. They are pooled for maximum buying power.
It’s Affordable
Your investment of $45,000 + gst includes equipment, sign writing, uniforms, stationary & training. You supply a suitable white vehicle, it need not be new.
It’s Proven
Eight of our nine franchisees have been operating for between six and eleven years.
It’s Profitable
Most of these established franchisees frequently take above $2,500 p.w (conservative)
It’s Your Move
If you’d like to learn more phone Bruce Miskin on 0499 399 355
Dollar for dollar The Concrete Cutter offers great value among the ‘man & van’ franchises
Bruce Miskin 0499 399 355 Email: bruce@theconcretecutter.com.au
www.theconcretecutter.com.au Business Franchise Australia and New Zealand 65
fr anch isi ng e x p o
Expo offers something for everyone From trampolines to tradies, coffee to cleaning, movers to mailboxes, the Franchising and Business Opportunities Expo held recently in Brisbane and Melbourne had business ideas for everyone – whatever their budget, interests or expertise. The shows both drew large crowds all keen to find out more about the benefits and rewards of being their own boss. “We thought the shows this year were even more colourful and exciting, reflecting the myriad of opportunities on offer,” says Exhibition Manager Fiona Stacey, adding that both exhibitor and visitor numbers were up by around 25 per cent on last year’s shows. The Expo was also a great place to meet with industry experts who could assist with the nuts and bolts of franchising, offering legal, financial and business advice. Jane Garber-Rosenzweig from Franchise Legal said she had great feedback from her Brisbane seminar and enjoyed meeting visitors to discuss their plans. “When starting a new business, franchising is where people look first,” she says. “It has a brand and a system in place that will help you make money. I tell my clients there are more benefits to a franchise than a stand alone business, especially if you are new to owning a business.” There was a wide range of informative seminar sessions, and the Franchise Council of Australia (FCA) also presented fascinating daily panel sessions with representatives from a wide range of successful franchise companies including PoolWerx, Paleo Café, Fastway Couriers and Pack & Send. A highlight of the Melbourne seminar series was Larry Cohen, founder and director
The Brisbane Franchising & Business Opportunities Expo had something for everyone.
of Step Into Life group outdoor personal training franchise system. Cohen shared his journey over the past 25 years as both a franchisee and franchisor. “I really like the franchising business model, as it allows all levels of the business to have a vested interest in the customer service provided,” he explained. “Franchising is all about people and relationships, no matter the product or service being franchised and I have always enjoyed the people contact aspect of business.” Most importantly, the Expo was a showcase for successful Australian and international companies, all eager to share their success with potential investors and franchisees, or to assist and advise them in their journey. “The day was most instructive and left me with a lot to think about and do, commented one visitor, William Bass. “Great work from all speakers, folk at booths and organisers.” Fiona Stacey says the Franchising & Business Opportunities Expo gives visitors the opportunity to compare and research a diverse range of franchise opportunities
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with investment levels from under $10,000 to more than $500,000. “We are now preparing another exciting series of shows for 2015, kicking off in Sydney in March at the Royal Hall of Industries. It’s time to start planning to turn your dreams into reality!” For information about participating in the 2015 Franchising & Business Opportunities Expo contact Fiona Stacey: P: 03 9999 5464 E: Fiona@specialisedevents.com.au W: www.franchisingexpo.com.au
Next year’s dates are: Sydney 27-29 March 2015 Royal Hall of Industries, Moore Park
Brisbane 18-19 July 2015 Brisbane Convention & Exhibition Centre
Melbourne 21-23 August 2015 Melbourne Exhibition Centre
Business Franchise Australia and New Zealand 67
e x pert a A dv ice
The Cost of Success
How to Balance Your Focus It’s not that often as business owners we talk openly about the cost of success. For most of us we keep our game face on and rarely expose the other side.
Regardless of whether you’ve been in business for a short time or as long as me or perhaps even longer, you will have some idea that there can be a huge cost to success and it can creep up from nowhere if you don’t take deliberate action to ensure you keep your focus balanced between business and life. If you’re unfamiliar with my story let me give you a quick snapshot. I started in business at the age of 20 with my husband Simon. He was an electrician and like any young couple we had a dream to create
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success early on in life. We set out on our adventure of building an Electrical Contracting business. Running a business with many staff doesn’t come without a lot of hard work and long hours. We always had a belief that success would come as a result of our hard work and commitment to best practice. All we had to do was bring the customer in, provide an exceptional service and then keep them coming back for more. Repeat and referral business came effortlessly as we built a solid reputation in
“Why do you get up every day and do what you do? Is it to make a difference? Is it for your children? Is it for you?” Tania Allen | Founder Vision Alliance
the marketplace. We doubled and tripled our business year after year and when we couldn’t keep up with the work we simply grew our team. Things were going very well, we had it all so we thought… great friends, great income, a five acre property, luxury car, two gorgeous kids, good health, a great marriage and friendship and a successful business. What more could we ask for? We were young, and at the time we thought we had the rest of our lives to enjoy the fruits of our labour, so we were willing to work hard and that we did, working very long hours. Sure there was some down time and that was spent with our family and friends, but now, as a business coach and consultant looking back on how things were, our focus was completely out of balance. My husband sadly passed away in 1999 and reality set in that we didn’t have the rest of our lives to enjoy the fruits of our labour. The gift is in the present moment, in the now. There is definitely a cost to success if your focus in unbalanced. Since then I have made it my life’s mission to help business owners grow, leverage and even franchise their business so they can build momentum faster, maximise their potential and create more time to do the things they love and want. So today, let’s explore some quick ways that you can balance your focus, avoid looking at the downside to success and help you create a business and life you love.
Know your why and balance your priorities I love the teachings of Thought Leader Simon Sinek. Simon says it starts with Why. Knowing your why leads to inspired action. Why do you get up every day and do what you do? Is it to make a difference? Is it for your children? Is it for you? There’s no right or wrong answer, it’s a personal thing, however knowing your why acts as a
driving force leading to inspired action and inspired action leads to you moving towards fulfillment. Fulfillment has never been lopsided; it’s always balanced so this serves as a reminder of what’s important to you in all areas of business and life. If your why is for your children, then that means your children are a high priority in your life, so why do so many business owners work way too many hours and then realise they haven’t spent quality time to make a real impact in their children’s lives. If you don’t know your why, take some time to reflect and get connected to your why. While you are working on that I encourage you to write down your top ten priorities in your business and life. Put business on one side and life on the other. If they’re not balanced then you’ve got some work to do. Putting your priorities in a daily, weekly, monthly, quarterly and annual plan will provide some structure around what you want to achieve and need to achieve in the specific time frames. Planning provides a clear process to prioritise the activities that need to be done to ensure you achieve your business outcomes and leave room for the balance in your life.
Where are you at right now? Before you can make a change in anything it’s important to start with where you are right now. On a piece of paper answer the following questions:
• How many hours do you work per day or per week? • How many business related items are on your to do list vs how many personal items?
• How often do you check your emails after hours? • Do you get through your daily activities with nothing left to do? • How many hours do you spend working after hours?
• How often do you see friends and family? • How many quality time hours do you spend with your spouse and kids or other close family members? • How many hours per week/month do you spend on YOU? Meditation, Quiet, Reflective time, Massage, relax time. • How many times a week do you exercise? • How often are you eating out? • How do you naturally respond to stress? In other words what behaviours naturally come to the surface? Now you know where you’re at right now, it’s time to write down what you’re prefer instead. Be honest with yourself and focus only on you. Don’t think about how it’s going to happen, just focus on what it is you want. We will cover the How briefly next.
Decide and commit Make a decision about when you will start to live your balanced life. A bit like goal setting be sure you put a date to it. It’s no use just dreaming about it and wishing for it. Make a decision to change. Commit to taking consistent daily action towards achieving your new balanced life. Being committed means you will do whatever it takes compared with just being interested which will see most doing what’s convenient. Do whatever it takes to make those daily changes towards what it is you want. It may be you finish at five every day or it may be you stay back half hour longer so when you get home you focus on you and your family. Whatever it is be sure you make a commitment and take consistent action.
Plan and prioritise Planning and prioritising has been underestimated for centuries. Those who do it well, reap the rewards many times over.
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• Plan annually, quarterly, monthly, weekly and daily. • Review the plan every quarter to ensure you’re on track. • Have a clear process to prioritise the activities that need to be done to ensure you move closer to your goals, not further away. • Follow the rule of five - learn to eliminate time wasting activities and implement the Rule of Five by streamlining your focus and spending time only on tasks that will reap you the largest reward: - What has to happen tomorrow? - Who do I have to call, see or spend time with? - Where do I need to allocate my efforts for the day (business and personally). By writing it down and by ensuring you include your personal priorities too you will start each day knowing exactly what you should be doing in the time you have, so you can start living a life outside of your work rather than your life just being your work.
Systemise and automate In today’s fast paced world its imperative you systemise what you can and automate where you can. There are top systems out there to support you and the tasks you regularly perform. Take some time to determine what tasks are you doing over and over again that could be managed better, that could be systemised so you can delegate more freely or you can completely automate. Systemising and automating your business will give you your time back so you can start to live a life outside of your business. Some key areas to systemise and automate are lead generation and converting it. This is an important key area. Many business owners are working long hours to generate more leads. Stop chasing leads and instead turn to automating client attraction. This will bring in more ideal clients and literally put your lead generation on autopilot. Lead nurturing and customer care is also vitally important so be sure this process is well laid out and systemised. Systemisation and automation will not only free up your time it will reduce the number of staff you need in your business, increase profitability and enable you to confidently delegate or have a task managed with confidence automatically so you have more time to do the things you love.
“We always had a belief that success would come as a result of our hard work and commitment to best practice.” Delegate more of what you do For most of us, delegating can seem to be more time consuming than doing the task ourselves. If you can successfully systemise and automate some key areas of your business, delegating will come easily and effortlessly as team members in house and those outsourced will be able to follow the systems and the processes to ensure the task is completed in the way you expect.
Learn to lead and build culture Learn to become a true leader. Gone are the days where being seen to be working longer hours makes you a better businessperson. In fact the opposite is said to be true. It’s about efficiency and with a world that is leaning towards more people focusing on balance, job sharing, four day work weeks, school hour shifts etc, it’s time you get into the flow of being more efficient and leading the way in the change. By leading the way and using leadership to build a new culture you will gradually reeducate your staff, your clients and suppliers about the new way of doing business. By becoming more efficient, delegating, systemising and automating you will build a high performance culture, seize the day for what it is and give yourself more time to do the things that matter most to you.
Be the change It’s important to be the change. Don’t expect 100 per cent change overnight. Commit to taking daily consistent action and making a shift even it’s just a 1 per cent shift every day will see you achieve so much more than you ever thought possible. Later never comes, so be sure you take advantage of today. As I always say Carpe Diem! which means seize the day! Tania Allen is the founder of Vision Alliance and consults to small businesses and individuals worldwide in a number of key areas including business growth, sales and marketing, franchising, increasing efficiency, systemisation and balancing your focus. She is a highly sought after keynote speaker, author and coach. With a personal mission to inspire, empower, motivate and to make a difference to the lives of business owners and individuals worldwide, Tania now shares her message, her business and life successes and failures so that business owners and individuals can maximise their potential and truly get more out of business and more out of life. For support in your business contact Tania: P: 1300 76 49 20 E: tania@vision-alliance.com
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bo o k r e v i e w
the franchise relationships book of
tips Greg Nathan, an internationally respected psychologist and Founder of Franchise Relationships Institute (FRI), has turned his ‘Tips’ into one inspirational volume. Greg Nathan, an internationally respected psychologist and Founder of Franchise Relationships Institute (FRI), has turned his ‘Tips’ into one inspirational volume. Containing 79 of his most popular tips, they are designed to stimulate new ways of thinking and inspire positive leadership values. With Tip titles such as ‘Thanks but I already have a family’ and ‘Life lessons from a Las Vegas taxi driver’, the book is a hit with franchisors across the country. John O’Brien, CEO of Poolwerx says, “I’ve been in franchising for over 30 years and Greg’s Tips are the only thing that I stop to read every time- they nearly always remind me of something important or give me a new angle of thinking.” 2013 FCA Franchise Woman of the Year and Director of Narellan Pools, Debb Meyer also adds, “We love reading Greg’s sharp, punchy Tips which are a fabulous gift to franchising. They really make us think about how we can operate as a world class franchisor.” Writing his tips over the years, and combined with useful insights from research, including his own work with FRI, this publication brings thought provoking stories plus insights and strategies on how to be a great franchisor, and you are guaranteed a unique and entertaining read. The Franchise Relationships Book of Tips is available to purchase from www.franchiserelationships.com.
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TIP 52 My brea- k fa
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st at the M
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How to set meaningful business goals All successful businesses need to develop and utilise a goal driven mentality in their daily activity. Goals should focus the mind and the activity of all employees from the CEO to the newest apprentice and everyone in between. Studies have shown a strong relationship between successful businesses and an effective goal setting process. Business owners and managers are then able to empower their workforce and ensure everyone is working towards the same objectives.
Successful businesses will have short term (less than 12 months) and longer term goals (say 1 - 5 years) for a number of key objectives. These can include increase sales volumes; improve overhead efficiency; raise gross margins; build customer service levels etc.
Specific,
The key to meaningful goal setting is to set ‘SMART’ goals that align with the purpose of the business. Strong alignment with purpose allows for a more effective execution of the business strategy by enabling business management to allocate and prioritise limited resources across various objectives.
It’s a simple tool used by businesses for an actionable plan for results.
S.M.A.R.T. is an acronym for the five characteristics of:
74 Business Franchise Australia and New Zealand
Measurable, Achievable, Relevant, and Time-bound.
Consider each of these attributes in detail: Specific: To be meaningful business goals need to be specific.
“Specific goals should be simply written, understandable and clearly defined. They need to have the ability to be communicated to everyone involved in its achievement.” Steve Seddon | Senior Business Development Manager – Franchising Westpac
Specific means goals are described in as much detail as possible. That is, what the business wants to achieve or accomplish and to what extent. Specific goals should be simply written, understandable and clearly defined. They need to have the ability to be communicated to everyone involved in its achievement. Well-defined and specific goals answer the questions: “Which?”, “Who?”, “What?”, “Where?”, “When?” and “Why?”
Measurable: To be meaningful business goals need to be measurable. This means tangible evidence that the goal has been achieved is available. To determine if a goal is measurable consider, “How will I know when it has been accomplished?” and “What methods of measurement are available to use?” It is important to be able to track progress and measure outcomes because ‘what gets measured gets managed’. When progress is regularly measured changes can be made to ensure the business stays on track to reach its targets.
Achievable: To be meaningful business goals need to be achievable. This does not mean goals should be easy. Far from it, as goals should stretch a business so owners and employees feel challenged in achieving them. It is essential to have the appropriate knowledge, skills, abilities and desire to achieve the goal.
Consider what results can be realistically achieved, given the available resources. Ask yourself, “Can this really happen?” An achievable goal should also allow for some flexibility. A goal that can no longer be achieved should be refined or abandoned. This is not a soft option as business goals are based on current conditions and realities at the time. For example, there may be a desire to increase sales by 25 per cent but if a recession is looming or a natural disaster occurs then the goals may not be achievable in the current market conditions.
Relevant: To be meaningful business goals need to be relevant. Relevant means goals that move the business forward, towards the achievement of its vision and does not conflict with other business goals. In times of rapid change it can be very easy to lose sight of the goals. It is important for short-term goals to be relevant and consistent with the longer term and broader organisational goals in the business.
Time-Bound: To be meaningful business goals need to be time bound. This is necessary to create a sense of urgency. Tension needs to be created between the current reality and the vision of the goal. Without tension the goal is less likely to produce the desired outcome.
progress can be assessed and reviewed. Limiting time in which a goal must be accomplished helps to focus effort towards its achievement.
In summary By using the SMART methodology for goal setting in a business there is a greater chance of successful achievement of business goals. By addressing the attributes of Specific, Measurable, Achievable, Relevant and TimeBound as the goals are being set they become more robust and effective tools to support the long term vision and desired outcomes. Additional free information is available at Westpac’s Davidson Institute, see website located at https://www.davidsoninstitute. edu.au. Steve Seddon is Westpac’s Senior Business Development Manager – Franchising, WA and SA. He is a CPA and a member of the Franchise Council of Australia’s WA committee. Westpac continues a long-term commitment to the franchise sector in Australia. The bank has a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Steve at: P: 0407 401 892 E: sseddon@westpac.com.au W: www.westpac.com.au/business- banking/industries/franchising/
Meaningful business goals have a start and end point. They will also have some intermediate or milestone points at which
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profile : Y el low E x pr ess
YELLOW EXPRESS PRESENTS EXCITING BUSINESS OPPORTUNITY With over 88 years of heritage this Sydneybased transport company is looking for customerfocused individuals to become owner-operators for Yellow Express. Established in 1926, Yellow Express delivers locally, interstate and internationally, as well as relocating offices and homes. Now expanding their fleet, Yellow Express has a great offer for people interested in becoming a Delivery Service Operator (DSO). Troy Finch, General Manager of Yellow Express explains the opportunity: “We do point to point delivery work, so if you need something across town in three hours or less – parcels, envelopes, flowers, pallets of printing, auto parts, furniture – anything – we can do that. The other arm of our business is in removals – home and office relocations.” The delivery work is undertaken by DSOs. They enter into a Heads of Agreement with Yellow Express, allowing them to operate under the brand. There is no upfront franchise fees or buy in fees payable with this agreement, the costs simply go toward the vehicle the DSO needs to operate in. Finch comments on the 88 plus years of history: “Yellow Express was established in 1926. It was purchased in 1970 by a family company and has been in the same family since. This allows us to provide an environment that large transport conglomerates cannot. You are a person here, not a number. “We are what you call a boutique transport
“Now expanding their fleet, Yellow Express has a great offer for people interested in becoming a Delivery Service Operator (DSO).” firm. We don’t just focus on the account customers. We’re quite happy to take on the retail customer, which no other companies will.” Each operator enjoys the benefits of having all the back-end work taken care of by Yellow Express. Finch continues, “In terms of the management and everything that goes with booking the work, the enquiries, etc, it all comes to our call centre and the sales staff are trained on all areas of or services.” The advanced call centre has integrated dispatch and tracking technology, which has been developed by Yellow Express’ own IT department, to ensure efficient and effective service delivery. Making this business as simple as possible for DSOs to operate, Yellow Express also manages all advertising, marketing, billing and weekly payments to DSOs. Finch further explains there is no territory ownership involved allowing unlimited potential: “Yellow Express operates the call centre – we do all the marketing, the soliciting and canvassing for work, and then we book the job. Then we distribute that job out to the appropriate operators on our fleet. We do all the invoicing as well, so it’s a complete management package – basically it’s an on-the-road role for DSOs.” Finch comments on how DSOs can also earn commissions: “We’re actually offering commission on total turnover of any account customer the DSO can bring onto Yellow Express, regardless of whether that DSO
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actively services that account customer or not.” At present there are around 50 DSO vehicles on the road, but Yellow Express need to expand. “We started the DSO program in 2008 and we currently have more work than our fleet can handle. We need more troops out there servicing our growing client base. I have actually held off taking on new clients until I have DSO’s to service them.” For their start up fee, new DSOs receive a brand new Renault Master van, which includes all on-roads for the first year. There is also a minimum $1,100 per week income guarantee for the first three years. The offer includes vehicle sign-writing, uniforms, UBD street directory, handling materials and stationery, and all the backend management and training. Basically everything they need to get going is included – a true turn-key system. Finch sums up the importance of finding the right operators, “It really is a customer service role. It’s not just about getting a package across town as fast as possible. It’s about greeting the customer with courtesy; it’s about being knowledgeable about the product; and being able to help the customer. We’re quite happy to take on people who are new to the transport industry – we can train them up from scratch. And in most cases, these are the most successful” For further information telephone Troy Finch on: P: 1300 935 569
All inclusive vehicle packages No territories Full call center support
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Franchise Recruitment
When a pulse and a cheque are not enough
Guidelines for franchisors and franchisees in building thriving, sustainable net works. The greatest challenge facing all businesses today is engaging and retaining dedicated ambassadors for their brand. Whilst this is true for all businesses and food and retail particularly experience great difficulty keeping employees for more than two years, it is fundamental in franchise recruitment. And not surprisingly it is a large part of the reason many retail businesses of scale and all food businesses of significant size are franchised. Franchisees bring not only the requisite capital to build each unit of the franchisor’s business, they become the motivated owner operators who typically spend on average seven years in the network. The successful franchise is founded on a value proposition that recognises the basic interconnectedness of the franchisor and the franchisee in building enterprise value for both. It is a combination of the franchisor’s product or service, their experience, systems and processes, marketing know-how and
brand, which together constitute their intellectual property. It is a business opportunity that the franchisor can safely duplicate and present to other entrepreneurs (their franchisees) to invest in. Franchisees know that if they comply faithfully, the franchise model provides greater certainty than an unproven concept, reduces the risk of failure and offers a higher potential for growth and realising their enterprise value when they sell. This mutually beneficial relationship is secured by the legal agreement that has been customised for that specific business. So, whether you’re an emerging brand opening green-field sites or an established system looking to drive and consolidate your network, attracting and recruiting the right franchisees to join your network is the critical lynchpin between the development and the execution phases of your growth. And if you’re a potential franchisee trying to decide not only if franchising is for you but how to choose the right fit, knowing how to assess the multitude of offers is vital for your success.
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So what should franchisors look for when recruiting great franchisees? 1. Obviously they need sufficient capital – not just to pay the up-front franchise entry fee and set up costs but sufficient operational capital and an understanding of the cash-flow projections. Presenting accurate financial data based on your existing operations, providing guidelines around financing and ensuring candidates are appropriately financed and independently advised before proceeding to the next phase is essential.
The Disclosure Document as mandated by the Franchising Code of Conduct and monitored by the ACCC has basic financial disclosure requirements, but go beyond that and provide enough information for a bank and the candidate’s financial advisor to assess the proposition. The candidate is also advised under the Code to seek financial and legal advice and must sign that they have done so, or that they have declined to do so.
2. Again, relevant qualifications, experience and skills are important.
“You need professional help to review and understand the franchise opportunities you are considering and investing in good advice is a tiny portion of your overall investment.� Suzanne Jarzabkowska | CEO DC Strategy
You need be certain that with your induction, training and support and by following the Operations, Training and Procedures Manuals, franchisees will able to run their business independently and hire, train and manage their staff. Some businesses have prerequisite qualifications and demonstrated expertise, but many look to the induction, training and support they provide to qualify their candidates and some require both.
A dental, optometry or veterinary franchise may require professional qualifications. A delivery or transport business may require a truck license, a trade certification may be needed for an automotive, electrical, or plumbing business, or registration with the relevant regulatory bodies may be required for masseurs or beauty therapists Some skills may be experience based such as food handling experience for QRS franchising or technical experience for phone or computer repairs.
3. The right psychological profile is more difficult to quantify and is not industry specific. Rather it is an integral part of the recruitment profile of successful candidates in any business. In a franchise network however it includes both macro and micro profiling. It is imperative that your recruitment process establish from the first point of enquiry the platform on which the relationship will proceed, not just during recruitment but as a foundational qualification to your franchisee’s position in your network.
A franchise is not a democracy and macro-profiling ensures candidates understand their success is dependent upon their willingness and ability to comply with your proven concept, systems
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and procedures. This ensures they are sufficiently entrepreneurial to run their businesses but not to the extent that they deviate from the operational and legal guidelines or challenge you, the franchisor.
Micro-profiling determines the ideal candidates according to the franchisor’s task and culture requirements. The recruitment of franchisees is focused on protecting and upholding your brand’s core values. This will be dependent on both the business’s product and service offering and the service culture.
4. A good cultural fit is again, difficult to quantify. Successful franchisors have well defined and articulated brand values and a vision for their network. This creates brand ambassadors who are directly invested in managing their staff, monitoring costs, driving sales, lifting profitability and promoting customer loyalty. Positioning your brand story and then finding the right franchisees who will buy into that vision with at least some of your passion and commitment is essential to both their and your success. Remember always, cultural allegiance is
“Australians want to work for themselves and be their own bosses, yet curiously they are among the most risk averse nations in the world…..a perfect recipe for franchising!” the primary driver in high performing networks. A number of standard checks are mandatory in the process and should include the basic employment and business references, police and credit checks.
What should potential franchisees look for when assessing a franchise opportunity? Going into business is a serious undertaking requiring hard work and long hours to ensure success. Don’t be misled by franchise opportunity ads which promote lifestyle first as a large number of good franchises are both labour and capital intensive. You need to have the constitution and mental resilience to be your own boss. 1. A sound financial proposition is vital. You need to know how much you will need to invest, what the expected returns are and over what period. Typically
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franchises of around $300,000 - $500,000 will take 2.5 to 3.5 years to return the original capital investment. You should analyse the numbers and understand the projected cash flow, taking financial and/ or accounting advice before approaching your bank. This includes how much operational capital will be required until the business is profitable, what happens if you don’t make budgeted sales or if your plans don’t work out. Be conservative and have an exit strategy. 2. Assess the franchisor’s offer. Listen to what the franchisor is promising in terms of what training and support is offered and how is it delivered. The selection process and how franchisees are screened and selected is important in judging the quality of other franchisees. Make whatever independent enquiries you can about what you are told by the franchisor and lastly, does the franchisor encourage and assist or facilitate access to other
THERE’ S’ S AA LOT LOT OF OF THERE
MONEY IN IN DRUGS DRUGS MONEY
makesure sureyou youcontrol controlaaterritory territory make The Australian Drug Detection Agency wants highly motivated and independent people to join Thethe Australian wants highly motivated and independent people to join team, asDrug eitherDetection Master orAgency Regional Franchisees. the team, as either Master or Regional Franchisees. The ADDA is a proven business model that will provide excellent financial rewards for those Thewho ADDA a proventobusiness model willcriteria. provide excellent financial rewards for those areisprepared work hard andthat fit the who are prepared to work hard and fit the criteria. This 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 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 own enterprise. Are you ready to join our experienced group and secure a lucrative future? Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are! Our guess is Yes, you are! s Franchises selling fast s Franchises selling fast s Masters sold in QLD/NSW/VIC s Masters sold in QLD/NSW/VIC
Email: kirk.hardy@tadda.com.au Email: kirk.hardy@tadda.com.au Website: www.tadda.com.au Website: www.tadda.com.au
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franchisees in their network? 3. Talk to other franchisees. The Disclosure Document must list contact details for all the current and past franchisees. Talk to as many you can from both lists knowing that franchisee experiences vary greatly, so you get a balanced and helpful understanding. Questions to ask them include: has the franchise opportunity produced the results they expected; has the franchisor been responsive to their needs; does the system produce a reasonable return on investment; and would they recommend the franchise opportunity to others? 4. Understand the legal agreement. You will receive a stack of paper about 12cm thick - a Franchise Agreement, a Disclosure Document, the Franchising Code of Conduct, and possibly a premises lease, a license to occupy or a step-in deed. Each of these documents could be from 6 - 80 pages, so set aside the time, get comfortable and take them one at a time starting with the franchise agreement. Read EVERY word highlighting anything you do not understand or agree with. Prepare a list of questions from each agreement for your lawyer and any other questions from the agreement or about the business in general. You should also discuss with your lawyer and your accountant what financial structure will best suit your franchise business – a company, a sole trader, a family trust etc. 5. Do your due diligence. This will vary from business to business but here are a few: Understand the trading cycle for the day, the entire week and if seasonal, the trading cycle for a year. Assess the culture of the business and whether it is the fit right for you. Understand the commitment - can you see yourself working in the business on a daily basis; dragging yourself out of bed early on a Sunday morning and what about school holidays and spending time with the kids? You may be investing upwards of a quarter of a million dollars and about seven years of your life in this network. 6. Successful franchisees take advice. Under the Franchising Code of Conduct you are advised to take financial and legal advice before signing up to a franchise (or sign that you have declined to do so.) Take your highlighted copy and see a lawyer who specialises in franchising and make sure the assessment is in writing and for fixed fee. Consult a good
accountant – a specialist franchise/ business advisor not someone who prepares your tax return each year and again, make sure you get written advice about everything of concern and preferably for a fixed fee. A franchise opportunity is certainly a means to long term financial security and wealth but in between now and then, there’s a substantial amount of work and your whole family needs to be committed to that.
developing their (in most cases very small) networks, than they would have had simply growing a few company owned outlets.
A checklist for franchisors and franchisees: r Financial Information – P&L, cash flow projections, the business model.
You need professional help to review and understand the franchise opportunities you are considering and investing in good advice is a tiny portion of your overall investment.
r Operations and Procedures
A competitive and compelling franchise proposition
r Franchise Agreement and
A decade ago potential franchisees had largely one criterion in evaluating a franchise offer – the return on investment and they didn’t really care if it was a gym, a poodle parlour or a bakery. The GFC and growing business sophistication have delivered much more risk averse candidates whose concerns are now markedly more complex. And with over 1200 franchise systems out there, franchisors need to present a competitive value proposition in order to attract the best candidates. From research we conducted in 2013 with over 650 respondents, potential franchisees assess a franchisor’s offer against the following criteria: a) A proven business with good systems and processes b) An established and recognised brand c) The induction, start-up and ongoing training and support d) The strength of the marketing activity e) A lower risk profile. Around 80 per cent of small businesses fail in the first five years, however, around only 20 per cent of franchised small businesses fail in that time. Franchisees look to your business to provide the financial data, the systems and processes, the brand and marketing collateral, the legal documentation and the training and support to reduce the risk associated with opening a business. That said, a 20 per cent failure rate still presents a fairly high degree of risk for both franchisor and franchisee. Add to this that over half of that 1200 franchise networks never achieve critical mass – that is a degree of financial success that rewards the franchisor with greater returns from
82 Business Franchise Australia and New Zealand
Manuals preferably hard and soft copies. Disclosure Document and any other legal documents such as leases, licences to occupy etc.
r Brand and Marketing Collateral including local area marketing. Australians want to work for themselves and be their own bosses, yet curiously they are among the most risk averse nations in the world…..a perfect recipe for franchising! Suzanne Jarzabkowska, CEO of DC Strategy heads up the multi-disciplinary team of franchise commercial consultants and lawyers. She specialises in organisational behaviour, change management and business growth and transformation in the franchise sector. A dynamic speaker who presents widely in the media, commercial and educational communities she writes extensively about franchising in regular columns and specialist opinions in print and online business publications. For 30 years DC Strategy has been the region’s leading end-to-end franchise consulting, legal, recruitment and branding firm. Franchise programs developed by their highly experienced specialist teams have built over $1.5 billion in enterprise value for their clients in the last decade alone growing the networks and brands of the many of the most successful national franchises, many of which they’ve taken to the world. For more information contact: P: 02 8220 8700 E: growth@dcstrategy.com W: www.dcstrategy.com
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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
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Business Franchise Australia and New Zealand 83
FOCUS : LOCA L A PPLI A NCE REN TA LS
Help yourself while helping others “As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance.”
In an ever increasing home appliance rental market, Local Appliance Rentals are the largest rentals franchise in Australia today. Since franchising five years ago, there are now more than 100 franchisees in Australia, New Zealand and the United Kingdom. With a wide range of products including TVs, computers, game consoles, home entertainment systems, stereos, coffee tables, dining tables, fridges, freezers, microwaves, washers, dryers, air conditioners, beds, baby furniture, BBQs, outdoor furniture, fitness equipment and kids’ play equipment, Local Appliance Rentals helps their customers get what they want. Customers simply call Local Appliance Rentals and let them know the items to be rented, and once they’ve been advised the repayment amount either weekly or fortnightly they then complete a five minute application over the phone. Once approved, the franchisee visits the customer to discuss and obtain a signed rental agreement and then once the first payment is received the products are delivered free, directly to the door.
Differing entry levels As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance. The only requirement is a basic home office and funds available to purchase the rental goods on behalf of the customers. With initial
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investment required from just $29,750 plus GST, there are three levels of franchise available, Silver, Gold and Platinum. Silver: This is the smallest franchise level and comes with the minimum territory size of approximately 16,500 people. This franchise level is suitable for operators in a regional area, usually in a small country town. Gold: This franchise level comprises of three franchise units with a territory size of approximately 50,000 people. This is more suited to the full-time operator with more time and capital to invest, and would ideally suit a couple or motivated sole operator. Platinum: This franchise level comprises of 6 franchise units with a territory size of approximately 100,000 people. This enables a full-time operator to either operate the franchise themselves or to have several subfranchisees working under them. How many hours you work in your franchise each week is up to you. If you intend to operate the business part-time it’s recommended that you start with the silver level of franchise. The hours are also very flexible, so you may choose to work 35 hours one week but only 10 the next. A lot of franchisees currently within the system are husband and wife teams. At the beginning, one person can start the business while the other still earns an income until the business has grown to the stage where it has replaced the other partner’s income. Then you can leave that job behind and start to really reap the rewards of being in your own profitable business with the lifestyle that you have always dreamed of.
easy to run, therefore no specialist skills or experience are required. The Franchisee Kit and training provided will cover all aspects of running the franchise on a day to day basis so all that’s needed is enthusiasm and the desire and determination to grow your own successful business. Included in the franchise fee is access to the Local Appliance Rentals software system called SAFRA (Software Application for Rental Appliances). This has been developed over a two-year period and designed to be user friendly, even if you are not a computer genius. An ongoing monthly fee is paid for the use of the software, with software support. With an annual conference each year you will be able to attend, you will keep up-todate with new methods, new products, and sales and marketing techniques, whilst at the same time interacting with other franchisees and discussing what works for them. Systems and procedures are continuously updated, allowing you to take advantage of this time to increase your skills and improve your business.
Exclusive territories Each franchisee receives their own exclusive territory. Divided into franchise units, with each unit consisting of approximately 16,500 people. Experience tells Local Appliance Rentals this is the minimum number of people required to run a successful small franchise on a part time basis.
Training and ongoing support
For a full time business, ideally there would be three franchise units, totalling a territory size of approximately 50,000 people and these differing territory sizes are reflected in the three levels of franchise available.
The business is easy to understand and
Each exclusive territory is individually
tailored for each franchisee, with areas delineated by postcode.
Why choose Local Appliance Rental? With a team dedicated to providing customers with brand new, high quality products that meet their needs and circumstances, Local Appliance Rentals pride themselves on the service provided to their customers, from the initial contact through to the end of the rental term. Don’t miss out on your opportunity to join the largest rental franchise company in Australia and take advantage of the following: • Easy to understand business model and easy to run
• Can be very profitable, without the problems of traditional retail businesses • Reduce your risk by spreading it over many customers
• Can expect regular, ongoing income, even when you are on holiday • Your own unique territory
• Strong support from your franchisor who has been there (and is still there!)
• You can run the business completely under management • Operate from home or a shopfront - the choice is yours • Majority of new business comes from referrals from happy customers.
If you like the idea of helping yourself while helping others get what they want, visit: W: www.localappliancerentals.com.au/ franchising
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international expansion
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“International expansion raises complex issues in relation to both protection and enforcement.� Marwan Kojok | Managing Partner baybridge lawyers - australia
and the legal comple xities Often reported as the most successful method of product and service distribution developed during the Twentieth Century, franchising is seeing huge success on an international scale. Businesses today are encountering a business climate open to and accepting of new products and services and closing in on language and commercial barriers making international business an imminent global success. This however has its exceptions. Speaking over 25 years ago on the topic of international franchising arrangements, Professor Warren Pengilley commented that franchisors planning overseas expansion should be prepared for this exercise to take twice as long and cost three times as much as anticipated. Perhaps it was the other way around. The point is that international expansion is a complex, and therefore a costly and time consuming exercise. This is nevertheless a challenge that most established domestic businesses will consider and many will overcome. Franchising is a very significant force in the internationalisation of business and Australian franchise systems are featuring prominently. The 2010 Franchising Australia Survey, records that just over one quarter
(28 per cent) of Australian franchisors are currently operating overseas. The complexities of international expansion are of course not limited to matters legal. Social, commercial, geographical, political and fiscal considerations all raise real and significant challenges. It is hardly surprising that the Franchising Australia Survey records that New Zealand is the most popular initial destination for internationally expanding Australian businesses. That 71 per cent of systems expand to New Zealand first reflects not only geographical proximity but also close historical links, a shared language, a similar society, familiar social and cultural norms, a stable political system, established commercial infrastructure, a mature and familiar legal system and, few restrictions on foreign investment to list just a few of the most obvious factors. That the UK, Europe and the US rank much higher than South East Asia in the internationalisation strategies of Australian systems suggests that geographical proximity is not the most important factor. Businesses that are confident they can negotiate the cultural, social and commercial hurdles of course must consider the legal and regulatory hurdles which are real and substantial. Some of the keys issues are:
Business entry The expanding business has a range of entry options. A company can establish a subsidiary in the target country, which of course does not involve a foreign partner or, at the other extreme, can franchise
direct to a foreign franchisee which also does not involve the intervention of a third party. However for practical reasons the vast majority of expanding businesses contract with a partner in a joint venture, master franchising or area development arrangement. Each entry vehicle requires appropriate documentation having regard to the requirements of the local law. Burger King found itself in a geopolitical dispute in the Middle East over the interpretation of international law resulting in threats to revoke their business licenses in Islamic member states creating friction between Burger King and its Israeli franchisee. In the case of joint venture, master franchising and area development arrangements there is also complex documentation required to record the respective rights and obligations of the parties that emerge from negotiations which are invariably long and complicated and are frequently tense and frustrating. A complicating factor is that in many developing countries, contracts are not accorded the same respect we are used to in Australia and may even be regarded, at least from a business if not a legal perspective, as a basis for further negotiations rather than the binding expression of a concluded agreement.
The agreement Negotiating and drafting an appropriate agreement is always a complex exercise. Negotiating and drafting an agreement for
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“A business with local registered marks may still face challenges in enforcing its intellectual property rights.” a foreign country is even more complex. With respect to franchising, although to some extent it is generic, the laws governing franchising are not. Thirty countries have dedicated franchise regulation but there is no uniformity in the regulatory models applied or even the extent and comprehensiveness of regulation within a particular regulatory model. In the unregulated regimes the relationship is regulated under the commercial laws of general application to all business activity. The agreements will need to identify the appropriate governing laws and tax related issues. These areas are complex and in most cases deal breakers as they create a sense of security, providing jurisdictional control and tax concessions. The repatriation of fees, royalties, profits is highly reviewed and determined during the negotiation process and can be a costly exercise if overlooked.
Intellectual property The protection and enforcement of a company’s intellectual property are front of mind for any business and especially so in franchising. International expansion raises complex issues in relation to both protection and enforcement. Protection of intellectual property is complicated by the reality that although business is conducted internationally, trade mark protection is granted locally. A registered trade mark in Australia confers a monopoly only in Australia. As a result, an internationally expanding franchisor can be frustrated by ‘passive name pirating’— an offshore entrepreneur registering the trade mark in their home jurisdiction. There are many examples but Burger Kings’ experience in Australia is perhaps the best known. Despite at that time operating in over 70 countries its expansion in Australia was under the name ‘Hungry Jacks’ because the name ‘Burger King’ was unavailable having been registered by another person. In Australia and throughout the western world generally, first use of the mark in the jurisdiction gives the right to register but in
some countries such as China, it is a ‘first to register’ system which poses even more challenges for the internationally expanding franchisor. China also raises issues inherent in a language system which is not based on the Roman alphabet — that of registering an appropriate foreign language mark as protection is granted only to the mark itself and not to a transliteration of it. The problem of international registrations has to some extent been lessened by the Madrid Protocol which facilitates registration in member countries through a single filing with the Australian Trade Marks Office. International trade mark protection however, remains an expensive, complex and vitally important exercise for any international business. A business with local registered marks may still face challenges in enforcing its
88 Business Franchise Australia and New Zealand
intellectual property rights. Particularly in developing countries there is not yet the same respect for intellectual property that we are used to in Australia. Enforcement actions are difficult and not always successful. Abercrombie & Fitch have invested heavily in brand protection employing ex-FBI agents to combat the problem worldwide. This is a result of extensive counterfeiting caused by the very reason businesses are looking to grow internationally - the internet and access to information. Marwan Kojok is the Managing Partner at Baybridge Lawyers For more information visit: www.baybridge.com.au
“A growing network of Buy Australian Properties franchises are being established now throughout Australia, with new opportunities available in all states.”
Over the last 100 years, the Australian property market has grown, on average, by approximately 10 per cent per annum, and since 1984 it has averaged 13.4 per cent per annum.
with safe, secure and proven ways of investing in residential property with integrity.
PROPERTY INVESTING
There is no doubt that property investing is a very successful way of obtaining financial With fewer declines than most freedom and security in your FRANCHISE other international markets, lifetime if you do it the right way. OPPORTUNITY it’s accurate to say that the Over many years residential AVAILABLE Australian property market is property investing has been a A Buy Australian Property in a strong position and offers great and proven wealth franchise offers you the continued future growth. creation strategy for thousands perfect opportunity to operate of everyday Australians and and develop a unique property A BETTER WAY TO you could join them using it as investment business in INVEST part of your plan. With a Buy Australia. Buy Australian Properties was Australian Properties With selected franchise areas established because of the franchisee assisting you available across Australia, if urgent need in Australia for an through the whole process you feel owning a Buy honest, ethical and you are assured an enjoyable Australian Properties professional residential stress free experience. franchise is the right fit for property investment company that always put its clients clients’ At Buy Australian Properties you, as well as helping to needs first, without you will feel that ‘Investing change the lives of others compromising integrity. with Integrity’ feeling that so and contributing to a As Australia’s first professional many clients have experi- greater cause, contact: franchised property investment enced already by following company, Buy Australian their unique strategies to Properties leads the industry residential property investing.
Email: franchise@buyaustralianproperties.com.au Website: www.buyaustralianproperties.com.au
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“Millions of consumers use Google to find and make trusted decisions about local businesses.” Andre Kay | CEO & Chief Marketing Officer Sociallybuzz
driving local customers to your business using
Google My Business As all local businesses know, having your business listed on Google is very important. Millions of consumers use Google to find and make trusted decisions about local businesses. Having an updated Google My Business listing with updated information, photos, hours and description is very critical. If you previously used Google Places for Business or Google+ Pages dashboard to manage your business information, you’ve likely noticed that your account has been automatically upgraded to Google My Business dashboard. Google My Business makes it simpler than ever to make sure your local business information can be easily found across Google, including on Google Maps, Google Search, and Google+.
1
Verify your business
To add your local business to Google My Business, you must have a mailing address and meet their quality guidelines. Local Google+ pages are designed for businesses that serve a particular locale. Local restaurants, hotels, dentists, hardware stores, plumbers, QSRs or repair shops, for example, are eligible to create a local page. To make sure the basic information you submit is accurate, Google will ask you to verify it first by entering a verification code that will be sent to either your business address or phone number. You will have one or two verification options. You can also choose to skip verification and return to the Google My Business dashboard to complete the process later. • Verification by postcard • Verification by phone Once you’ve verified, you may see a banner asking you to review your information and make any final changes.
2
Optimise your business information
After you’ve signed up for Google My Business, you’ll be able to add a description for your business, hours of operation, contact information, and photos.
90 Business Franchise Australia and New Zealand
Make sure the business information is complete and accurate. • Make sure your business location is entered correctly on the map so users can find you easily. You can drag the map marker to your exact business location. • List your authoritative and official business website on the local Google+ page, since Google uses information from your website to help improve search results. • Add information such as opening hours and payment types to help users choose among search results. • Of course, be sure that your business name, physical address, and phone number(s) are correct. Choose the most appropriate, specific categories for your business. • Pick a category from the list of suggestions to help Google to show your business for the right searches. • Don’t be afraid to choose specific categories instead of broad ones. The important thing is that the categories are accurate and describe your business well. Google’s search algorithm makes sure that users looking for “Book Stores” will see businesses in more specific categories like “Used Book Stores,” “Comic Book Stores,” and “Rare Book Stores” too.
BUSINESS MADE SIMPLE Video Ezy & Blockbuster Australia offer you this low cost entry into the movie rental kiosk industry which comes with 30 plus years of experience in franchising, brand recognition and marketing. With over 50 franchisees and 560 kiosks since May 2012 this makes us Australia’s fastest growing DVD vending franchise. Our future vision sees 4000 of our kiosks in the marketplace over the coming years.
Video Ezy and Blockbuster offer franchisees support that matters: t Experience with identifying the best kiosk sites t Vital national property portfolios with first right of refusal t Kiosk Installations t Technical support t 7 day customer care support team t National and Local Marketing service and support As a long running franchise operation we can appreciate the risks associated with a new business venture, which is why we are proud to be able to offer you a low cost entry into our kiosk business. By partnering with Australia’s most trusted brands, our 60+ dedicated support team will help guide you on your journey to becoming a successful small business owner. For a free copy of our FRANCHISING OPPORTUNITY BOOKLET or to REGISTER YOUR INTEREST, go to:
www.fegroup.com.au/Franchising/
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“Engaging with the people who give you feedback can be a good way to get to know your customers and what they think about your business.”
Establish a strong, accurate presence on the web. • Google improves search results by aggregating information about your business from all over the web. Make sure information about your business on thirdparty sites is accurate, and try to contact the respective site directly to correct any inaccurate information. • Encourage customers to review your business by clicking Write a review on the local Google+ page.
3
Reviews
Reviews in Google My Business give business owners a way to see how customers are reviewing their business across the web. As a business owner of a verified business, you can: • Read reviews for your business from around the web. • Respond to reviews from Google users. • Check analytics to get an overview on how and where your customers are evaluating your business.
Read reviews • Sign in to Google My Business dashboard.
relationships with customers, but they’re also public.
• Scroll to “Reviews” and click Manage Reviews. Note that your business needs to be verified in order to respond to reviews.
Business owners can also use the Sociallybuzz app to receive and respond to reviews directly from their mobile phone.
You’ll see a Review inbox listing any reviews Google users have left for your business as well as a compilation of snippets of reviews written about your business.
The ultimate goal is to have the best Google My Business listing by keeping your listing up to date and providing important information to potential consumers.
The Reviews analytics tab includes information detailing where users have evaluated your business, and the average score of reviews of your business. Tips for responding to reviews Engaging with the people who give you feedback can be a good way to get to know your customers and what they think about your business. Note that you’ll be posting as the page for your business when you reply to reviews, and that your reply will be posted publicly. Replies to reviews may not appear immediately on the page. Business owner responses allow you to build
92 Business Franchise Australia and New Zealand
Andre Kay is CEO and chief marketing officer of Sociallybuzz, which exists to help franchise owners grow their business using social media. By helping them reach relevant customers, build customer loyalty, manage reputation and increase revenue. We protect relationship with their customer, create effective campaigns, manage their social channels and online reputation 24/7. Read the company’s blog at: W: www. sociallybuzz.wordpress.com
JEJAK GRAPHICS
a lasting impression
CREATIVE DESIGN SOLUTIONS
LEAVING A LASTING IMPRESSION Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 18 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including: t $PSQPSBUF TUBUJPOFSZ t #SPDIVSFT BOE nZFST t 1PTUFS BOE CBOOFS EFTJHO t &EVDBUJPOBM NBOVBMT t 4QPSUT QSPHSBNT t .POUIMZ /FXTMFUUFST t 1SPEVDU MBCFMT BOE QBDLBHJOH Artwork is tailored to your brand and focused on your message and target BVEJFODF /P KPC JT UPP CJH PS TNBMM $POUBDU NF UPEBZ UP EJTDVTT IPX +FKBL (SBQIJDT DBO NBLF ZPVS DPNQBOZ or organisation leave ‘a lasting impression’.
P: 03 8790 8006 M: 04222 676 39 E: jejak@bigpond.com www.jejakgraphics.com.au Business Franchise Australia and New Zealand 93
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Behind the
headlines Jason Gehrke | Director Franchise Advisory Centre
Financial penalties for franchising one step closer Financial penalties for breaches of the Franchising Code of Conduct are one step closer with legislation to amend the Competition and Consumer Act to provide for penalties under Industry Codes introduced into Federal Parliament in July by Small Business Minister Bruce Bilson. The Competition and Consumer Amendment (Industry Code Penalties) Bill 2014 is expected to pass through parliament without difficulty. The Bill is a necessary precursor to the implementation of a new Franchising Code of Conduct from 1 January 2015 that will include fines and penalties, as well as other provisions to further regulate the relationship between franchisors and franchisees
Pizza Hut franchisees lose injunction to prevent price war A group of 80 Pizza Hut franchisees have lost a court action in which they sought an injunction against their franchisor YUM! Brands to prevent YUM! from engaging in a price war with pizzas selling for less than five dollars.
respond to “a downward trend in financial performance” and the steady loss of customers over the last 10 years, and had been successfully implemented in New Zealand and in the United States. The franchisees were unsuccessful in their injunction application, with the court deciding that there was no evidence the franchisor was acting in its own interests at the expense of the franchisees. The franchisees have indicated that further legal action may be taken, according to a media report.
Crazy John’s brand to disappear with final Vodafone conversion Vodafone will transfer the last 100,000 Crazy John’s customers over to Vodafone as the international telco erases the final traces of the local mobile phone retail chain it bought in 2008. Vodafone had previously closed or rebranded all Crazy John’s stores. The brand was launched in 1991 by John Ilhan, who died suddenly in 2007.
Franchisor induces franchisees to write fake online reviews
The group of franchisees claim that the discount pricing strategy, launched in response to a new pricing structure by competitor Dominos, will cost the 80 claimants $10 million and risks putting many of them out of business.
The Australian Competition and Consumer Commission (ACCC) has commenced proceedings in the Federal Court against carpet cleaning franchise Electrodry for posting fake customer reviews online, and for inducing its franchisees to do the same.
However YUM! executives told the court that the pricing strategy was necessary to
The ACCC alleges that Electrodry’s conduct resulted in fake testimonials which appeared
on a number of review sites including Google and True Local, and that the testimonials were posted by people associated with the brand, rather than genuine customers as implied
Warning issued about fake directory scams The Australian Competition and Consumer Commission (ACCC) has warned businesses including franchises to be wary of fake directory scams, in which business owners are sent invoices for directory listings and advertising which are unwanted or unauthorised. The ACCC has received a 45 percent increase in complaints about false billing scams worth almost $725,000 in lost payments.
Australia Post to shed 900 jobs and reduce mail deliveries Australia Post has announced it will shed 900 jobs from its national workforce, and is in discussions with the Australian government to have its community service obligations changed so that it can reduce mail deliveries to three instead of five days per week. The proposal to reduce the frequency of deliveries is currently being considered by the government, and could be introduced later this year. Australia Post has argued that it needs greater flexibility in its business model to stem its current losses of $218 million per year in its mail business, but is hamstrung by the community service obligations imposed by the government.
Business Franchise Australia and New Zealand 95
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Unfair contracts legislation to be extended to small business The Federal Government has released a consultation paper regarding the extension of unfair contract protections from consumer contracts to include business to business contracts. The move follows a policy commitment by the Coalition when it was in opposition that unfair contract provisions would be extended to small business, and proposes that terms in standard-form contracts which are deemed unfair by a court can be struck out. While the original consumer unfair contract laws targeted standard form contracts used by telecommunications, insurance and car rental companies, the extension of unfair contracts legislation risks additional fallout on franchisors and lessors. The franchise sector in particular risks being adversely impacted by this legislation
as it deals with a new Franchising Code of Conduct for which a draft was released on April 2.
World’s largest Ronald McDonald House to open in Brisbane The largest Ronald McDonald House in the world is set to open in Brisbane after the Queensland Government donated a parcel of land to the charity near Brisbane’s new Children’s Hospital. The House will be able to accommodate up to 450 people a night and provide a home away from home for regional families with seriously ill children undergoing treatment in hospital. The charity which was started by fast food chain McDonald’s, already operates two houses in Brisbane that will continue to operate until the new $35 million facility is completed
96 Business Franchise Australia and New Zealand
Starbucks’ Australian operations acquired by 7-Eleven The Australian operations of international coffee brand Starbucks have been acquired by the owners of 7-Eleven in Australia for an undisclosed amount. The deal will be the first foray into standalone coffee outlets for the convenience retailer, which assumes control of Starbucks’ 24 Australia outlets. 7-Eleven, which has 600 retail outlets in Australia, says it will continue to operate the Starbucks chain locally under company ownership, rather than by franchising. While Starbucks has been operating in Australia since 2000, it lost $143 million in the following eight years, and closed nearly three quarters of its stores as part of an international cost-cutting restructure.
9
PROFESSIONAL SERVICES LISTINGS
HARMANS LAWYERS
Ivan Poole Lawyers
6/64 Marine Parade (PO Box 10857) Southport QLD 4215 485 Papanui Road, Christchurch
P 07 5591 2522 F 07 5591 2511 Contact Peter Thelwell
P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott
E pt@ivanpoolelawyers.com.au www.ivanpoolelawyers.com.au
E mark.sherry@harmans.co.nz www.harmans.co.nz
Ivan Poole Lawyers has specialised in franchising for over 25 years and also provides expertise in Licensing and Intellectual Property. Acting for over 50 national franchise systems and a number of Licence Systems both in Australia and overseas, Ivan Poole Lawyers develops long-term relationships with franchisors and takes pride in helping them achieve success.
If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help. Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for.
Ivan Poole Lawyers acts for franchisees of various types of franchise systems when buying, renewing or selling their franchised business with vast experience in:
Our Franchising Team can assist with a full range of franchise related services, including:
• Disputes including mediation; • Distribution Agreements;
- Legal rights and obligations under franchise documentation
• Licensing;
- Business structures and asset protection structures
• Structure of Franchise Systems and Documentation;
- Financing issues
• Master / State Franchisee models;
- Employment issues and health and safety
• Trade Marks; and
- Lease arrangements and agreements
• Copyright.
- Terms of trade - Dispute resolution
Ivan Poole Lawyers are Member of both the Franchise Council of Australia (FCA) and the Queensland Law Society (QLS).
We are members of the Franchise Association of New Zealand
Madgwicks Lawyers
Wisewould Mahony Lawyers
Wisewould Mahony Lawyers Level 8, 419 Collins Street, Melbourne VIC 3000 P 03 9629 8333 F 03 9629 4035 Contact Robert Toth E robert.toth@wisemah.com.au www.wisewouldmahony.com.au
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
Lawyers in love….with Franchising
Madgwicks’ Franchising team has experience across a variety of franchise 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:
30 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!
• Franchise agreements and disclosure documents
Services Provided
• 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
• Commercial and retail leasing, as well as general property advice • Tax, duty and GST advice
• Litigation and dispute resolution
• Advice on branding, intellectual property and trade marks.
97 Business Franchise Australia and New Zealand
Legal and consulting advice to Franchisors & Franchisees Code compliance requirements Dispute resolution – mediation – strategies & solutions Sale/Purchase of Franchise Systems Employment Law and Workplace Relations Specialists Master Franchising International Franchising
• Business Law Specialists
Call or email for a complimentary brochure for Franchisors & Franchisees
Business Franchise Australia and New Zealand 97
FRANCHISE LISTINGS FRANCHISE APPLIANCE TAGGING SERVICES
80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
AUSTRALIAN DRUG DETECTION AGENCY PTY LTD
PO Box 301678, Albany, North Shore City 0752 NZ Ph: +64 9 479 4332 Email: glenn.dobson@tadda.com.au Website: www.tadda.com.au
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
BODIEZ 24/7 FITNESS
260 Brisbane Street, Ipswich QLD 4305 Ph: 1300 642 575 Fax: 02 9337 1066 Email: info@franchiserecruitmentsolutions.com.au Website: www.bodiez.com.au
BOOKS AND GIFTS DIRECT
Suite 106, 29-31 Solent Circuit, Baulkham Hills NSW 2153 Ph: +61 02 9899 9655 Fax: +61 2 9899 9455 Email: recruitment@booksgiftsdirect.com Website: www.booksgiftsdirect.com
BUCKING BULL
5 Henry Street, Loganholme QLD 4129 Ph: 07 3423 0555 Fax: 07 3423 0600 Email: franchise@buckingbull.net Website: www.buckingbull.net
BUY AUSTRALIAN PROPERTIES
Franchise Support Office, 2/492 Christine Ave, Robina QLD 4230 Ph: 1300 99 55 12 Email: franchise@buyaustralianproperties.com.au Website: www.buyaustralianproperties.com.au
CAFE2U
Building 7, 81 Frenchs Forest Road East, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: franchises@cafe2u.com.au Website: www.cafe2u.com
CITY FARMERS DOGWASH
190 Main Street, Osborne Park, WA 6017 Ph: 08 9345 7200 Fax: 08 9440 1065 Email: scott.mcintosh@cityfarmers.com.au Website: www.cityfarmers.com.au/dogwash
CREMA ESPRESSO
16B Harvest Court, Southport QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au
DREAM DOORS
Suite 3, 203-205 Henley Beach Road, Torrensville SA 5031 Ph: 08 8351 8588 Email: cam@dreamdoors.com.au Website: www.dreamdoorskitchens.com.au
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
EVOLVE ENTERTAINMENT
S5, L9, 1 Rider Blvd, Rhodes NSW 2148 Ph: 02 8833 2111 Email: franchise.enquiries@fegroup.com.au Website: www.fegroup.com.au/franchising
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
FASTWAY COURIERS AUS
Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au
FASTWAY COURIERS NZ
Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz
FIBRENEW
1/47 Sunnyside Rd, Scarborough, Brisbane QLD 4020 Ph: 1300 954 812 Fax: 07 3203 4178 Email: info@fibrenew.com.au Website: www.fibrenew-franchising.com.au
FROG RENT
4/68 Jessica Blvd, Minyama QLD 4575 Ph: 1300 783 658 Fax: 07 5444 6916 Email: admin@frogrent.com.au Website: www.frogrent.com.au
GOLD’S GYM
81 Gozzard St, Gungahlin ACT 2913 Ph: 02 6280 4987 Email: ckyrgios@goldsaustralia.com.au Website: www.goldsaustralia.com.au
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
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
INXPRESS
Unit 1/26 Flinders Parade, North Lakes QLD 4509 Ph: 0418 600 919 Fax: 1300 030 066 Email: sales.au@inxpress.com Website: www.inxpress.com.au
98 Business Franchise Australia and New Zealand
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
ELECTRICAL TEST AND TAG
40
FCA
$35,000
$47,000 + GST + Vehicle
DRUG TESTING & EDUCATIONAL SERVICES
20
FCA (pending)
Circa $150K
+ mobile testing unit
RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES
81
FCA
$49,900 + GST
$250,000 + GST
FITNESS & PERSONAL TRAINING
1
FCA
-
$250,000
largest direct seller of Books & Gifts in AUS./NZ
200
Franchise Council of Australia
$20,000 $80,000
INITIAL FEE + VEHICLE
BOUTIQUE CARVERY FRANCHISE
36
Franchise Council of Australia
$60,000 + gst
$200,000
FRANCHISED PROPERTY INVESTMENT COMPANY
-
FCA
$100,000
$110,000
MOBILE COFFEE VANS
Over 200 worldwide
FCA, FANZ, IFA
INITIAL FEE INCLUDED IN PURCHASE
FROM $129,990
MOBILE DOG WASH
34
Franchise Council of Australia
$20,000
$30,000
PREMIUM CAFÉ FRANCHISE
12
Franchise Council of Australia
$45,000 + GST Incl. Training
Dependent on Site conditions $250k$450K
KITCHEN, BATHROOM & BEDROOM REMODELLING
46+ worldwide
FCA
From $40,000
$60,000
SKIN CARE, BEAUTY INDUSTRY
160+ Nationally
Franchise Council of Australia (FCA)
$22,000
$100,000 $300,000
MOVIE RENTAL VENDING
47/560
-
$10,000
$30.000
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
39
Franchise Council of Australia
$50,000 + GST
$650,000 $950,000
COURIER SERVICE
650+
FCA & FANZ
From $25K+GST
$25K+GST
COURIER SERVICE
250+
FCA & FANZ
$10K
$10K
LEATHER, PLASTIC & VINYL RESTORATION
225
IFA
Please contact
Please contact
RESIDENTIAL PROPERTY MANAGEMENT
1
-
$35,000 (GST inc)
$110,000
24 HOUR FITNESS AND HEALTH
2
-
$149,000
Finance available
HAIR & BEAUTY – RETAIL & SERVICE
140
FCA
$66,000 plus GST
$400,000 plus SAV for Greenfield sites
PROPERTY INSPECTION SERVICES
2 Franchised/ 2 Company Owned
FCA
-
$25,000
COMPETITIVE GLOBAL EXPRESS FREIGHT FRANCHISE
200+ franchises across 15 countries
FCA
$49,000
$49,000
PRICE
FRANCHISE JAN-PRO
Suite 107, 12 Cato St, Hawthorn East VIC 3123; Lvl 6/7, 91 Phillip St, Parramatta NSW 2150; Lvl 22, 69 Ann St, Brisbane QLD 4000 Ph: 1300 JAN PRO Email: info@jan-pro.com.au Website: www.jan-pro.com.au
JUST CUTS™
Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 0439 130 499 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
LOCAL APPLIANCE RENTALS SOUTHERN GROUP
807, 1 Queens Rd, Melbourne VIC 3004 Ph: 1800 980 650 Fax: 07 3396 8311 Email: sacha@localappliancerentals.com Website: www.localappliancerentals.com.au
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
PRIMAL PANTRY
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.primalpantry.com.au
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
SEVEN SEAS SEAFOOD CAFÉ
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.aktivbrands.com
SKEWERZ KEBABZ
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: franchise@skewerz.net.au Website: www.skewerz.net.au
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
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
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
THE CONCRETE CUTTER (FRANCHISING) PTY LTD 2 Cormorant Parade, Pakenham VIC 3810 Ph: 0499 399 355 Email: bruce@theconcretecutter.com.au
THE INTERFACE FINANCIAL GROUP
Level 19, 1 O’Connell St, Sydney, NSW 2000 Ph: 1300 940 908 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au
TOP SNAP PROPERTY PHOTOGRAPHY
Suite 3, Gunshot Alley, Suakin Drive, Mosman NSW 2088 Ph: 1300 TOP SNAP (867 762) Email: sales@topsnap.com Website: www.topsnap.com
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
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
YELLOW EXPRESS PTY LTD
57 Victoria Rd, Rozelle NSW 2039 Ph: 1300 935 569 Fax: 02 9810 0111 Email: mail@yellowexpress.com.au Website: www.yellowexpress.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
COMMERCIAL CLEANING FRANCHISE
50
FCA
$16,500 + GST
$16,500 + GST
HAIRDRESSING
180 across Australia & New Zealand
FCA
$38.5K
$160K-$240K
DOMESTIC & COMMERCIAL CONCRETE EDGING
300+
-
POA
POA
APPLIANCE RENTAL
100+
-
-
$29,000
COMMERCIAL & EDUCATION CLEANING SERVICES
4
FCA
From $15,000
$35,000 Including franchise fee
HEALTHY EATING CAFÉ
3
-
$60,000 + gst
$200,000
FAST FOOD OVEN ROASTED CHICKEN
370+
FCA
$50K
$450K+
MODERN SEAFOOD CAFÉ
2
Franchise Council of Australia
$60,000 + gst
$200,000
MEDITERRANEAN FAST FOOD CONCEPT
10
Franchise Council of Australia
$60,000 + gst
$200,000
BEDDING RETAILER
71
Franchise Council of Australia
$50,000
$450,000+
SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE
80
-
$15,000 (Licence Only)
$75 P/W
MEXICAN RESTAURANT, BAR AND TAKEAWAY
35
Restaurant Catering Victoria
$50,000
$450.000
MOBILE CONCRETE SAWING
9
FCA Member
$45,000
Initial fee + vehicle
PROVIDES UNIQUE SPOT FACTORING PROGRAMME
150+ worldwide
FCA, IFA, CFA, Irish FA
$24,500
$50,000+
REAL ESTATE PHOTOGRAPHY
N/A
FCA
$39,950 plus GST
$39,950 - $60,000
DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS
1100
FCA
$17,500
$25,000
DI BELLA COFFEE MOBILE ESPRESSO VAN
28
FCA (pending)
$115,000 + GST (in total)
$115,000 + GST
COURIER, DELIVERY, FREIGHT, REMOVALS, RELOCATIONS
50
-
Vehicle only
Less than $50,000
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 99
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.
AUSTRALIAN DRUG DETECTION AGENCY The Australian Drug Detection Agency PTY Ltd (ADDA) wants highly motivated and independent people to join our dedicated and ever expanding group as Regional Franchisees. ADDA is part of a trans-tasman franchise business that provides the very best of drug and alcohol detection services to both commercial clients and the general public. The services offered by ADDA include drug and alcohol policy development, management and employee drug and alcohol education and training, workplace drug and alcohol testing as well as pre-purchase/pre-occupancy property
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
BODIEZ 24/7 FITNESS Bodiez 24/7 Fitness is all about making health and fitness fun, enjoyable and affordable to all walks of life by delivering a 24/7 concept combined with an exclusive interactive personal training system. Bodiez has a low overhead business structure which enables it to meet the market demand and offer no lock in contracts or hidden extras.
No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669 or visit www.appliancetaggingservices.com.au
drug inspections. Our aim is to make Australia a safer place to work, live and play. ADDA is a proven business model that will provide excellent financial rewards for those who are prepared to work hard and fit the criteria. We are looking for individuals who have strong business-oriented skills and the best news is that no previous knowledge of the drug environment is required. A full and comprehensive training package is included as part of the initial franchise fee. 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 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. 81 stores Australia-wide and growing! After 15 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
just like all other Gyms and fitness centres, however where they stand out from the crowd is in the use of their state of the art technology whereby every client has their own virtual personal trainer that communicates with the Gym equipment meaning they can get personal training at all hours of the day or night.
Bodiez uses the traditional personal trainer system
For more information contact James or Nick at Franchise Recruitment Solutions on 1300 642 575.
BOOKS AND GIFTS DIRECT
a price they can’t refuse - up to 70% off RRP.
If you want to make a change and run a successful business while maintaining a great family life this is for you. This is possible with the support of Australia and New Zealand’s largest direct seller of Books and Gifts. Plus - no more time stuck behind a desk, you’ll be out and about meeting people in your very own territory. Selling products that people actually want to buy, at
100 Business Franchise Australia and New Zealand
We sell our products from more than 55,000 workplaces across Australia and New Zealand (schools, childcare centres, office buildings, etc., usually from sample boxes at reception or in the lunchroom. You’ve probably seen hundreds of them, over the years. Please contact us for more information at recruitment@booksgiftsdirect.com or visit us on the web at www.booksgiftsdirect.com
BUCKING BULL Bucking Bull is Australia’s largest and most successful carvery franchise with nearly 40 store locations around the country. Australian owned and operated, Bucking Bull first opened in Perth in 1999 and has since expanded throughout Queensland, New South Wales and most recently, Victoria. Bucking Bull has built its success on a very simple recipe- providing great value ‘home cooked’ style food that people love to eat, serving nearly 3 million customers each year. Bucking Bull commands
BUY AUSTRALIAN PROPERTIES Buy Australian Properties is the first professional franchised property investment company in Australia. We are leading the industry with safe, ethical and proven ways of investing in residential property with integrity. We supply quality approved direct property investments in brand new full turn key house and land packages, apartments, townhouses, units and row houses Australia wide.
strong brand awareness, a unique positioning and a proven business model. As part of the Aktiv Brands portfolio, Bucking Bull franchisees benefit from comprehensive training, detailed operational procedures and marketing tools and assistance to assist in reaching their business goals. For more information regarding Bucking Bull franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: franchise@buckingbull.net W: www.buckingbull.net
its kind property investment business in Australia. • great work-life balance • work from your home office • a team of highly motivated and dedicated professionals • excellent company culture • comprehensive initial and ongoing training
We have created a simple yet very effective 4 step client engagement process incorporating proven systems and procedures designed to produce outstanding results and highly satisfied clients every time we use them.
• unlimited growth and earnings potential
Franchisees have the opportunity to operate a very unique, first of
www.buyaustralianproperties.com.au
CAFE2U
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.
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.
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
City Farmers Dogwash Beginning more than 20 years ago as a small enterprise, City Farmers Dogwash is now part of the City Farmers Group. City Farmers comprises 42 specialty large format pet stores throughout Australia with many more planned, a mobile network of over 30 City Farmers Dogwash vans as well as pet insurance business and an online store. Our Franchisees love what they do and are so passionate about the part they play in a dogs’ health and wellbeing. But with more than 3.7 million pet dogs in
Are you a fit and are you ready to experience the difference? Email: franchise@buyaustralainproperties.com.au
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
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
AUSTRALIA AND NEW ZEALAND
Australia, we’ve got plenty of work to do and are always looking for Franchisees with big smiles and big hearts to come on board and enjoy the ride. • No experience necessary • Full training & support • Strong brand recognition • Exclusive Marketing Zone • All-inclusive start-up package • Work outdoors & be your own boss For more information call Scott McIntosh on 08 9345 7200 or visit www.cityfarmers.com.au/dogwash.
Business Franchise Australia and New Zealand 101
A-Z FRANCHISE DIRECTORY Crema Espresso The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point
DREAM DOORS Dream Doors is a kitchen, bathroom and bedroom remodelling business that has a proven track record internationally. Established in 2000 in the UK, Dream Doors takes the hassle, and the cost, out of remodelling out-dated home interiors. Now with 35+ locations in the UK, 10 in New Zealand since 2009 and now with 1 location in Australia, we are looking to expand our network of Franchisees throughout Australia.
Ella Baché Our Success is your Success! Join the Ella Baché network of loyal and profitable salons and enjoy the success and support of a premium established brand. Our franchise model is unique, with no royalties and no marketing fees. Ella Baché was established in 1954 and is the largest family owned skincare company in Australia with over 150 salons nationally. Our company’s mission is that “Ella Baché will inspire you to be the best that you can be.”
Evolve entertainment The Franchise Entertainment Group (FEG) is Australia’s premier home entertainment group encompassing such iconic brands as Video Ezy and Blockbuster. FEG leads the way in the Australian home entertainment industry through state of the art marketing campaigns and initiatives as well as providing systems and support to over 800 locations across Australia.
AUSTRALIA AND NEW ZEALAND
of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. “As coffee lovers we were tired of the same old coffee in dark gloomy cafes. Premium coffee and light meals, like we have in our stores, should be enjoyed in a bright sophisticated café with an atmosphere that creates a laid back, enjoyable meeting place for customers”. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au
Dream Doors is looking for people with managerial, organisational/communication skills or real go-getters, no formal kitchen design experience is necessary – as long as you have the drive, ambition and enthusiasm to succeed in business we will supply you with the internationally proven and tested formula of the Dream Doors business model. For more information contact Derek Lilly on: T: +64 8 8351 8588 M: +64 2 7213 5133 W: www.dreamdoorskitchens.com
We pride ourselves on being the “Skincare Experts” and attribute our success to our people, knowledge and understanding of tailored skincare Solutions. We are committed to providing support through training, business planning, marketing, sales initiatives, salon designs and investing in our brand. Please contact our Franchise Department for more information. E: franchise@ellabache.com.au P: 02 9432 5000 W: www.franchise.ellabache.com.au
team consisting of over 60 staff Australia wide has your business success as their top priority. Our franchisees come from all walks of life and have various backgrounds and life experiences. We do not require that you have any previous experience in running a business, rather that you have the right personality, outlook and aspirations. Welcome to the next generation in home entertainment!
FEG is proud to offer you a low cost entry into the Home Entertainment Industry through our Kiosk Vending Business. Our dedicated franchise support
W: Fegroup.com.au/franchising E: franchise.enquires@evolveentertainment.com.au P: (02) 8833 2111
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
102 Business Franchise Australia and New Zealand
FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great
FASTWAY COURIERS AUSTRALIA
opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email 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 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
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*
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
FASTWAY COURIERS New Zealand 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
FIBRENEW Since 1987, Fibrenew has grown to 225 locations around the world. Now, we are growing in Australia. Fibrenew is the industry leader in the restoration of leather, plastic and vinyl. We are a mobile service that caters to the aviation, automobile, commercial, insurance, marine, medical and residential markets. With the diversity of all these opportunities across so
AUSTRALIA AND 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 *Conditions apply
many markets, our company and franchisees have grown and thrived through every rise and fall of the economy. That really speaks to the fact that there is always a need for our services. Right now, there are franchise territories available throughout Australia. This is your chance at an exceptional business opportunity with potential for great income. To find out more about joining our franchise team, visit: www.fibrenew-franchising.com.au
Business Franchise Australia and New Zealand 103
A-Z FRANCHISE DIRECTORY FROG RENT Frog Rent take managing residential property seriously. Serious enough, that it’s all that we do. Frog Rent is unique in that we are a Property Management franchise. We do not sell property, but specialise in managing property for owners of residential real estate. Frog Rent was founded by two successful builders with franchise operations in Australia and overseas, two property investors and a real estate agent. All five have long and successful business careers, with
Gold’s Gym The substantial difference at Gold’s Gym is the blend of industry leading quality, value and sustainability. The business model we offer provides a structured, calculated and tested blueprint to success. All components will be provided to achieve a harmonic balance between work and living, all the while feeding your passion for the industry. Franchise owners have the ability to leverage off the most recognised and reputable names in the industry, at an affordable price. Sustainability and perseverance are proven through
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
AUSTRALIA AND NEW ZEALAND
four of the five having established and run successful national and international franchise systems. Frog Rent recruit franchisees, based on their personal qualities and abilities. We have the software, processes, skills, manuals, materials and extensive and ongoing training in place, so we believe we can teach and oversee excellence, with the recruitment of the right people. For more information please email admin@frogrent.com.au or phone 1300 783 658 or visit www.frogrent.com.au
the history of the brand over the years all the while the Gold’s Australia support team will be behind you every step of the journey, enriching your business venture with knowledge and experience. Gold’s offers you the opportunity to feed your passion, join a team of passionate entrepreneurs, all the while creating wealth and success. Become a part of fitness prestige, take your piece of Gold. Contact Scotty (0400 500 755) or Christos (0422 500 002) to commence the application process. http://www.goldsaustralia.com.au https://www.facebook.com/goldsgymaustralia
• 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
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
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
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
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
InXpress – Global Express Freight
• Low entry costs
InXpress provides a revolutionary yet simple concept delivering customers with freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing customers with greater value and personalised service, saving valuable time and money. Operating in 15 countries with over 200 franchisees internationally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include:
• No inventory/warehousing
Jan-pro cleaning systems
doubling in size from 2006-2011. Learn and benefit from our stringent 5 week training program, our processes and our unique written quality guarantee. Invest and grow at a pace that suits you and your individual goals, JAN-PRO will support your business growth building a secure, financial future for you.
Welcome to JAN-PRO and the lucrative world of franchise commercial cleaning. Join a network of over 12,000 franchisees worldwide who have taken a step towards a brighter, more successful future with JAN-PRO Cleaning Systems. Commercial Cleaning is a rapidly expanding industry, proving its economic resistance by positively growing during the economic turmoil of 2009-2011. Incorporated in 1991, JAN-PRO has been the fastest growing franchise system in the world,
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.
local appliance rentals Local Appliance Rentals are the largest rentals franchise in Australia today. Since franchising five years ago, there are now more than 100 franchisees in Australia, New Zealand and the United Kingdom. With a wide range of products including TVs, computers, game consoles, home entertainment systems, stereos, coffee tables, dining tables, fridges, freezers, microwaves, washers, dryers, air conditioners, beds, baby furniture, BBQs,
• Low risk • Minimal employee base • High income potential • Ongoing training and support Whatever your location InXpress represents a unique opportunity for you to build financial freedom, within a global network. Start building your future with the right company and the right model, for more information about becoming an InXpress franchisee within your region call 0418 600 919, email sales.au@inxpress.com, www.inxpress.com.au
Start your JAN-PRO future today by calling 1300 JANPRO or 03 9077 0075 or email Riaz at riaz.rafiq@jan-pro.com www.jan-pro.com.au
At Just Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ 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
outdoor furniture, fitness equipment and kids’ play equipment, Local Appliance Rentals helps their customers get what they want. As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance. The only requirement is a basic home office and funds available to purchase the rental goods on behalf of the customers. Don’t miss out on your opportunity to join the largest rental franchise company in Australia, visit www.localappliancerentals.com.au/franchising
Business Franchise Australia and New Zealand 105
A-Z FRANCHISE DIRECTORY PARASERVE Paraserve – excellence in franchising If you are keen to own a franchise business, Paraserve is an excellent option. Our franchises are safe, affordable and rewarding businesses. Paraserve is the largest cleaner of public schools in Victoria, cleaning over 75 schools plus major recreational facilities and commercial offices. Through our owner-operated franchisees we deliver high quality school and commercial cleaning plus specialist services including carpet cleaning, window cleaning and floor polishing.
PRIMAL PANTRY Primal Pantry is a new healthy eating café concept based on the Paleo lifestyle and way of eating. Since opening the pilot store in Brisbane in 2013, Primal Pantry has become a phenomenon, gathering a loyal and passionate fan following. Ranked in Brisbane’s Top Ten Favorite Restaurants, Primal Pantry is fast becoming the undisputed leader in Paleo fare in the marketplace. Following increasing demand for additional outlets, Primal Pantry have thrown open their doors and will
RED ROOSTER 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
SEVEN SEAS SEAFOOD CAFE Seven Seas Seafood Café is a re-invigoration of the classic Aussie Takeaway Shop with a whole lot more style, sophistication and value. Seven Seas offers a casual dining experience that meets the continually shifting tastes and rising expectations of today’s consumers, serving a refreshing and modern selection of seafood with a contemporary flair. Seven Seas is 100% Australian owned and
SKEWERZ KABABZ Skewerz Kebabz is an exciting and innovative retail fast food concept offering authentic Mediterranean cuisine combined with fresh and exciting flavour profiles for the Australian market. Spicing up food courts in shopping centres around Australia, Skewerz is becoming the nation’s fastest growing kebab franchise. Providing an exciting alternative to the traditional kebab, Skewerz serves up a truly satisfying menu supported by a friendly and fun casual dining environment. The unique menu caters for all three primary trading periods and has
106 Business Franchise Australia and New Zealand
Our franchisees are independent business owners supported by a successful, award-winning company established in 1979. We train and guide new franchisees in efficient service delivery, financial and staff management, client service, marketing and new business development. Successful applicants start with a base income which suits your budget, typically from $75,000 per annum and we help you to win new clients. You will be able to earn a comfortable living and may even add new business contracts which can be traded for capital gain. To find out more call Bill Wu or Ray Liew on 1800 041 876.
begin franchising in 2014. Backed by the awardwinning Aktiv Brands franchise system, all aspects of the Primal Pantry business and operation are supported by the category leading marketing, training and operational systems that Aktiv Brands provides. If you are genuinely passionate about the positive difference that clean-eating can make, then please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.primalpantry.com.au
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
operated and benefits from the award winning franchise support at Aktiv Brands. As a Seven Seas franchisee, you can enjoy the advantages of being associated with a well-known and successful franchise group, supplying you with the tools to help your business grow and prosper. For more information about Seven Seas franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.aktivbrands.com
been strategically designed to ensure the concept will thrive in the competitive food court environment. Skewerz Kebabz is part of the Aktiv Brands group of franchise brands, which means that the model has been developed based on years of experience in the retail fast food franchising sector. For more information regarding Skewerz Kebabz franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.skewerz.net
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
With over 70 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment.
• 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 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
SPRAY PAVE AUSTRALIA Pty Ltd Earn up to $3,300 per week. That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!
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
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.
AUSTRALIA AND NEW ZEALAND
• Learn a range of new lifelong trades. • Guaranteed work available anytime after training. • Head office training plus follow-up on your own job. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • 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
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
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, it need not be new. Most established franchisees are regularly taking over $2,500 per week. Ring Bruce Miskin on 0499 399 355 for an information pack.
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A-Z FRANCHISE DIRECTORY THE INTERFACE FINANCIAL GROUP - IFG 50/50 The Interface Financial Group franchisees provide shortterm 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
TOP SNAP MARKETING Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are a professional real estate photography franchise, with territories available across Australia and New Zealand. We are renowned for the outstanding quality of our photographs, which thanks to powerful custom-built technology, are professionally retouched and delivered direct to our clients by next day.
small business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom, the United States, and Mexico. The new IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return. For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au
As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for professional property photography and marketing tools. Our franchise start-up costs are competitive, and no photography experience is needed, as comprehensive training and ongoing support will be provided, along with ongoing marketing and technical support.
We are currently looking for positive, enthusiastic, customerfocused individuals to build their own professional photography business, with the support of an established franchise system behind them.
Contact Top Snap on: 1300 TOP SNAP (1300 867 762) or Rob Watkin on 0414 217 019 or email sales@topsnap.com www.topsnap.com
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 Xpresso Mobile Cafes operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts. We supply premium Di Bella Coffee products – both hot and cold. Frappes, energy drinks, bottles of water and light food options such as gourmet cookies that are designed to complement the enjoyment of an awesome espresso coffee. Xpresso Mobile Cafés also have the ability to custom
yellow express Established in 1926, Yellow Express has a proud history servicing the transport needs of a growing nation. We need dedicated people to assist in expanding our delivery fleet. We are looking for customer service focused individuals to become DSOs (Delivery Service Operators) with Yellow Express. Yellow Express provide the call centre and support to handle all phone calls, enquiries, bookings, customer invoicing, weekly payments and IT development. Yellow Express advertises for delivery
108 Business Franchise Australia and New Zealand
For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au
grind beans from a dedicated bean display cabinet and then weigh, heat seal the bag and retail with Eftpos. We also stock Di Bella Coffee specialty capsules that fit the ‘Nespresso’ pod machine. Both of these services are unique to Australia. Franchisees are supported nationally by Di Bella Coffee, a fully integrated website, social media and Internet presence as well as the Xpresso Mobile Café call centre. We’re setting the benchmark for coffee vans – will you join us? Contact Jonathan Payne at jonathan@xpresso. com.au to register your interest today.
and relocation work in the commercial and retail market. You as a DSO simply complete the allocated work, so you focus solely on your main role. DSOs also have a commission structure on top of their income for new account customers they bring to Yellow Express. There are no franchise fees or buy ins with becoming a DSO, you only need purchase the vehicle in which you operate, which you retain ownership of. For more information call 1300 935569, email mail@yellowexpress.com.au or visit www.yellowexpress.com.au.
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
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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 0451 370 060
hairhousewarehouse.com.au/franchising
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