Jul/Aug 2019 Feature – Fixed vs Mobile Franchises. BUSINESS FRANCHISE Australia and New Zealand

MOBILE FRANCHISING

VOL 13 ISSUE 05 JUL/AUG 2019

ON THE ROAD MOBILE FRANCHISES MOBILE FRANCHISE TIPS

PUT YOURSELF IN THE DRIVERS SEAT THE PROS AND CONS OF A MOBILE VS A BRICKS AND MORTAR FRANCHISE

BEING AGILE IN A FAST-PACED WORLD Business Franchise Australia and New Zealand 41

what’snew!

CAIRNS COURIER RECOGNISED FOR DELIVERING SUCCESS Peter was praised for his hard work and dedication delivering exceptional service for the Cairns community.

He thanked his customers and colleagues for their support and said he had enjoyed watching the business grow and his customers’ businesses grow.

‘I love my role delivering to the Cairns community. It’s been great to see not only our business grow over the years but also many local businesses especially with the growth of online shopping in recent years. Thank you to all of my customers and the rest of the Fastway team for your ongoing support,’ says Peter.

Regional franchisee Josh Bollman congratulated the couriers and thanked the team and their customers.

Six years of service and over half a million kilometres has seen Cairns courier Peter Capes recognised at a special Fastway couriers’ event.

The event kickstarted Fastway couriers’ annual courier day acknowledging the hard work and dedication of couriers and celebrating success in the network.

Cairns courier Peter Capes was in the spotlight, recognised as Fastway Cairn’s longest serving courier franchisee, celebrating 16 years of delivering in June 2019.

‘Fastway’s annual courier day event is a great opportunity to take a moment to reflect on the year, thank our team and recognise important milestones. Thank you to all of our customers and of course our hardworking couriers and staff who continually go above and beyond to deliver excellence every day,’ says Josh Bollman.

‘A special congratulations to Peter Capes for his 16-year milestone.

Peter has built a well-earned reputation for delivering the best to customers. This was recognised on the national stage a couple of years ago when he was named the prestigious National Fastway Couriers (Australia) Courier Franchisee of the Year,’ says Josh.

Josh Bollman also congratulated Tristan Rich who was voted the local Courier Franchisee of the Year for 2019. www.fastway.com.au

JIM’S POOL CARE TEAMS UP WITH SPASA AUSTRALIA have completed, at minimum, a Certificate III in Swimming Pool and Spa Service in recent years and understand the benefits to their customers and their own business this brings.

Jim’s Pool Care has recently joined in collaboration with the Swimming Pool and Spa Association of Australia to develop a streamline accreditation for franchisees.

Accreditation for pool servicing may not, at first glance, seem like an obvious necessity, however, it is an important part of becoming a pool care technician. The majority of Jim’s Pool Care franchise owners around Australia

Peter Holland from SPASA Australia, recently met with Brett Blair, General Manager of Jim’s Pool Care Australia, to begin working in collaboration to build and improve on the course integration of this Pool & Spa Certificate into one of Australia’s largest franchise systems. The new course requirements will ensure that all franchise owners will be applying the best up-to-date practices when servicing swimming pools around Australia, ensuring they are certified to do so and ensuring the continuation of quality standards within the industry.

The benefit of certification is not just for the pool professional but also for the public and pool owners around Australia. The longerterm goal of SPASA and Jim’s Pool Care is to have an accredited workforce of pool care

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professionals who can provide feedback into the accreditation process, which in turn will enable more of the Pool and Spa industry to work according to this great national standard. For Jim’s Pool Care it will also help more than 100 of their franchise owners build the skills required to be the best in the pool industry.

Brett noted that he was ‘happy to support SPASA Australia’s efforts to educate pool professionals which will in turn, help to support pool owners all over Australia.’ Peter was equally as excited with the collaboration, ‘It is great to have the opportunity to enhance the industry standards, and great to work with Brett and Jim’s Pool Care in order to do so. The idea of having all new franchisees enrolled and immediately educated in the best practices of the industry is always good.’

131 546 info@jimspoolcare.com.au www.jimspoolcare.com.au

INTERNATIONAL BUSINESS TOUR UNLOCKS MILLIONDOLLAR GROWTH FOR POOLWERX

Big business is on the rise at Poolwerx with more than 10 per cent of its Australian franchise network set to achieve turnover of more than $3 million within the next five years.

The goal was spurred by a business exploration tour to the United States, where a contingent of top performing Australian franchise partners spent the week reviewing operations of their larger international counterparts.

Poolwerx Australian COO Andrew Kidd, who initiated the trip, said 50 per cent of its American network generated between $3 to $8 million turnover and the visit proved the potential to reach similar scale in Australia.

‘This was an inaugural trip to leverage our power as an international brand and give our Australian franchise partners more insight into the enormity of the industry and how they can harness it,’ he said.

‘Our franchise owners were able to see how a multi-million-dollar operation needs to be led and managed. They learned how staffing could be scaled and controlled. Overall, they took away how vital it was for them to focus on the strategic direction of the business, and accurately understand how to measure business profitability.’

Malcolm Price, owner of Poolwerx Turramurra in New South Wales and Poolwerx’ highest performing franchise, said the trip was invaluable in helping confirm his long-term business goals.

‘Visiting our business in the US really broadened the lens at which I look at my business and gave me a moment to distil what is possible and what is important to me,’ he said.

‘There is no denying what I experienced on this trip has given me the confidence I am with the right system to support my growth and that it is possible to replicate big business success in Australia too.’

VISION PT INVESTS $1.3 MILLION IN TECHNOLOGY OVERHAUL Vision Personal Training has invested $1.3 million in digital innovation this year including a new MyVision app, Vision Academy online learning program, and a Vision Ready Meals home delivery service that allows people to select chef-designed weekly menu plans based on their individualised macronutrient profile.

This latest technology overhaul propels the largest Australian-owned personal training franchise success story into the next phase of its remarkable journey that started 20 years ago with a vision to create premium personal training services with a holistic approach to emotion, education, eating and exercise.

“It blows my mind to think I didn’t even own a mobile phone when Vision first started 20 years ago. We’re all so connected now in a digital ecosystem we could have never imagined back then. This latest technology investment positions us strongly for the next phase of our growth, and supports our existing network of clients, owners and trainers in really practical, innovative ways,” says Andrew Simmons, CEO and founder of Vision Personal Training.

The Vision Ready Meals home delivery service, available since 24 June via the MyVision app, is a new revenue opportunity for Vision Studio Owners who can earn 50 per cent of margin on all meal orders.

‘We have always had a focus on growth with a clear business development path for our franchise partners. Our aim is for this week-long international learning experience to be part of the next level training for those with large business aspirations.’

Easily the biggest ticket item at $520,000 is the new MyVision app available. The revamped food diary feature on MyVision connects vision clients with a database of more than 75 per cent of food brands and products available across Australia and New Zealand. Clients with the best results are those who are intentional and conscious of tracking their food. MyVision makes it super easy to enter what they’ve eaten each day and track those choices against their Vision macronutrient goals.

www.poolwerx.com.au

Visit www.visionpt.com.au for more inspiration.

Mr Kidd said the company proposed to make the trip a permanent initiative as part of the growth planning process for high performing franchise partners.

Business Franchise Australia and New Zealand 43

what’snew!

GYMBAROO JUMPS FOR JOY AFTER WINNING KIDS’ AWARDS Australia’s premier developmental program for babies and pre-schoolers has won four awards at the What’s On 4 Kids 2019 Awards.

GymbaROO and KindyROO took out the awards for:

Choice)

Choice) Toddler Kindy Gymbaroo CEO Beth Pocklington says the company is thrilled to win the awards, which reflect the importance of their programs to the community.

‘It is the biggest awards platform for children’s activities in Australia,’ she says.

‘Winning any of the awards is recognition from our peers and our industry and most importantly, the families who take part in our programs that what we do is worthwhile and having an impact. Our success represents our children’s success.’

Mrs Pocklington says GymbaROOKindyROO, which has been operating since 1982, has stood the test of time and offers parents a unique opportunity to be directly involved with their children’s development.

‘Parental involvement in the classes is critical and families are given fun activities to do at home, which further facilitate learning and bonding,’ she says.

‘All of our programs are based on more than 30 years of scientific research that shows children who exercise regularly have improved cognitive function.’

Mrs Pocklington says GymbaROO’s programs offer children time away from electronic devices, giving them a chance to develop their language, self-regulation and creativethinking skills.

She says GymbaROO teachers, who are usually tertiary qualified, receive training from the company to ensure they understand the science behind the activities. After five years of teaching at a GymbaROO centre, they can train to become an early childhood neuro-developmental consultant and assist

parents who have concerns about their child’s development.

There are more than 100 GymbaROO centres throughout Australia, and many overseas, supporting the natural physiological development of babies, toddlers and preschoolers. www.gymbaroo.com.au

AUSSIES SHOP PRODUCTS ON LOW PRICES OVER HIGH QUALITY on price, compared with 32 per cent who say quality is the most important. and jewellery category. poor product.

On the back of new research, leading parcel delivery service CouriersPlease forecasts that the online shopping industry will have a greater focus on low prices, as the industry respondents to consumer preferences.

A survey of an independent nationally representative panel of 1000 Australians who shop online, commissioned by CouriersPlease sought to gauge just what those consumer preferences are – quality, receiving the product quickly, or low prices?

It seems that low prices not only trump other factors, but consumers might not have very high expectations of quality when buying on price. When asked about the most important factor to them when

44 Business Franchise Australia and New Zealand

shopping online, over half (57 per cent) of Aussie shoppers said it is low prices. Only 32 per cent said that the quality of the product is more important, while receiving the product quickly is the least important (chosen by 11 per cent of respondents).

CP spokesperson Jessica Ip says: ‘More often than not, Aussies expect to get a good deal when shopping online compared with shopping instore for the same product. At CP, we believe this expectation will only grow as the retail industry continues to shift to online, and e-tailers will follow suit.’ www.couriersplease.com.au

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THE RIGHT INGREDIENTS FOR A BRIGHTER FUTURE LA PORCHETTA SATISFIES AN APPETITE FOR CHANGE Much loved brand La Porchetta recently joined a select list of franchises that measure their success in decades and innovation, this has been one of the key drivers of its longevity and success.

The brand that was built on providing traditional Italian meals with warm service, is also a market leader when it comes to adapting to the demands of the contemporary consumer.

The La Porchetta brand began more than 30 years ago, when two young Italian migrants purchased a run-down pizzeria in North Carlton, close to Melbourne’s Italian hub. It was 1985 and La Porchetta was then a takePantaleo and Felice Nania were passionate and hard-working, and their reputation for preparing great food spread quickly. In that pre-delivery era, there were soon long lines of people waiting outside the small shopfront to pick up a La Porchetta pizza or pasta to take home. was to transform La Porchetta into a licenced, a-la-carte restaurant. Their great meals and excellent value were already legendary and now customers could enjoy both, in a welcoming and vibrant restaurant. La Porchetta became renowned as a special place to experience good food and a passion for life, and the seeds were sown for its future success as a much loved brand. had become clear. They wanted to develop the largest Italian-style, franchised restaurant group in Australia and New Zealand

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“Throughout our growth and modernisation, we’ve retained that unique offering, while still meeting the challenges of a changing marketplace.” in Melbourne’s north. It served the same delicious food and had the same, warm, family atmosphere as the Carlton restaurant.

It quickly became a local favourite.

As La Porchetta grew, consumer expectations began to change and La Porchetta needed to adapt. Increasingly time-poor customers preferred to meet with family and friends in their favourite local restaurant, rather than prepare a dinner party at home, so La Porchetta restaurants created function spaces for special events.

With the brand’s family values, a natural addition to functions was the introduction of children’s birthday parties. La Porchetta created “Mini Chef” events at which children could not only have fun, but also learn about food preparation by making simple pizzas with basic ingredients.

Consumer tastes change with new and emerging trends and La Porchetta regularly reviews its menu to reflect these. With an increased focus on health, the brand responded with innovative menu changes that provided lighter options, while retaining the authentic Italian flavours that customers wanted.

While changes such as these may look simple, at La Porchetta, each new innovation is preceded by extensive consultation with franchisees and research and planning by the support office team. Many ideas are collaborated on with franchisees via the Franchise Advisory Committee.

“As a brand, we’re very focussed on innovation and development to stay ahead of the game,” says La Porchetta CEO Sara Pantaleo. “Our team has ears to the ground when it comes to food and restaurant trends and we’re also informed by the latest industry research. For us, innovation is a team effort, with input from everyone involved, including franchisees, customers and suppliers. We listen to what all our people are telling us and that’s what helps us retain our loyal customers and attract new ones.”

As customers and businesses moved online, La Porchetta was an early adaptor with electronic solutions, such as web and app ordering, as well as, electronic menu boards in restaurants.

“Each new development is designed to make the customer experience as easy as possible,” says Ms Pantaleo. “And that helps drive sales for franchisees.”

Today’s consumer wants the convenience of home delivery and La Porchetta was

quick to respond. In order to ensure smooth introduction of this new service, restaurants. Before being introduced across the group, all La Porchetta’s technology platforms, including online ordering and point of sale, were reviewed to ensure customers could easily order by phone and online. listens to franchisees and moves with the times and that’s one of the reasons he has been with the brand for over 20 years.

“La Porchetta really supports innovation,” says Mr. Barrese. “They understand that franchisees know best what their customers want. The secret to success in a business like ours is to go where the public is taking you and that’s exactly what they do.”

make them as easy as possible. “As focussed as we are on customer demands, we ensure that innovation and modernisation are not difficult or stressful for franchisees and their staff,” said Ms Pantaleo. “We develop comprehensive training and support packages for each new innovation, and the beauty is, all these changes ultimately enhance revenue potential for franchisees.”

VOL 13 ISSUE 05 JUL/AUG 2019

La Porchetta is today a transnational franchise and a trusted brand, known for its quality, value and warm service. “We began as a family-run, family-oriented business, which was like a local Italian kitchen for many of our customers. Throughout our growth and modernisation, we’ve retained that unique offering, while still meeting the challenges of a changing marketplace. That’s why we’re now enjoying the custom of younger patrons as well,” says Ms Pantaleo. “Over the last 30 years we’ve worked hard to ensure we stay ahead of the game without compromising our core values.”

La Porchetta

In recent years, Mr. Barrese noticed a distinct trend among his customers towards vegan dining. This was supported by research coming into La Porchetta that veganism and “flexitarianism” - where people want to eat vegetarian or vegan once or twice a week - was an emerging trend. Following an exhaustive process of researching menu options, ingredients and customer responses, a new vegan menu was rolled out across La Porchetta late last year.

THE RIGHT INGREDIENTS FOR A BRIGHTER FUTURE Opportunities are now available for aspiring

restaurant franchisees who want to be part of a long-established and successful franchise system.

For Mr. Barrese, menu innovation is just one of the ways in which La Porchetta has innovated to meet changing consumer trends.

“La Porchetta has changed a lot in recent years,” he says. “If you owned a franchise 15 years ago, you wouldn’t recognise it today, because we’ve developed so much. That’s one of the strengths of this brand.”

WHY LA PORCHETTA? brand.

TOP TEN TIPS FOR TAX TIME

Each new innovation also requires La Porchetta to review its systems and processes to streamline changes for franchisees and

advice. development. can network and learn from other likeminded professionals.

SPECIAL FEATURE www.laporchetta.com.au

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LOOKING TO OWN A FRANCHISE BUSINESS

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FE ATUR E : FI XED VS M O B I L E FR A NCH ISES

FE AT U R E A R T I C L E

ON THE ROAD:

MOBILE FRANCHISES

LOCATION, LOCATION, LOCATION! All good businesses know the importance of choosing a great location to operate from. You want to be close to your customers and maximise your exposure for the lowest cost.

But one sector of franchisees doesn’t need to worry about a location. So, what exactly is a mobile franchise?

Taking it to the people An ever-changing view, mobile franchising means not sitting in the same office every day. You take your product or service directly to your customers and you both

win. Service their car at their workplace so they don’t have to waste the weekend.

Bring fabric samples to their house so they can find exactly the right shade against the whole room. Diagnose technical issues faster in its usual place so you have all the relevant information. Wash dogs in familiar surroundings to reduce anxiety. People are recognising the benefits of a good worklife balance and need services that can fit in with their varying schedules. A mobile business gives you the flexibility to meet your customers when and where they need you.

And the benefits continue From as little as $10,000, mobile franchises are a low-cost entry, so you can be on the road earning money sooner. With no business property to maintain, there are lower overheads and no landlord or centre management relationships to manage. This

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means they can be a simpler business to run and so often no extra employees are required.

And while all franchise businesses allow you to take control of your lifestyle, mobile businesses have an extra level of freedom in that a store doesn’t need to close or replace you if you have other commitments in business hours. In fact, your business hours are whatever works best for you and your product or service.

Support Mobile franchises come with the same support a bricks and mortar style franchise does. The source organisation can help you with all aspects of the business from practical things such as supplier lists, to industry specific training such as how to create the most profitable and efficient coffee run. Usually a franchisor will also provide business and administration support such as

“With no business property to maintain, there are lower overheads and no landlord or centre management relationships to manage.”

“Running your own mobile business doesn’t mean you have to go it alone.” branding, stationery and a social media and/ or web presence. This means you can focus on the work you love, knowing these other important aspects have been covered by the experts in those areas. Many franchisors will also offer mentoring and run conferences where you can be inspired by your fellow franchisees. Running your own mobile business doesn’t mean you have to go it alone.

Growth Mobile franchising is a fast-evolving sector.

Familiar business Jim’s Group, most wellknown for its mowing service, now has 52 divisions and growing, having recently added Jim’s Real Estate. There is potential for a mobile franchise for any interest under the sun. Pets, property and coffee are amongst the most popular as are office supplies and services. Some existing franchises are adding a mobile arm to their current businesses such as McDonald’s and Red Rooster and there are sure to be many more to follow their success. A 2016 survey by the Franchise Council of Australia estimated the total sales turnover for the franchising sector between 2014 and 2016 at $144 billion. If you have a passion, it’s likely you will find a mobile franchise to turn your dreams into dollars.

Before you jump in When considering a mobile business, it’s important to do your research and understand the factors unique to mobile

franchises. Be sure to carefully consider whether your desired business is a good fit for you. Like any business, your mobile business will flourish when it ticks three important boxes for the customer: quality, service and price. Without a shop for potential customers to wander in to, the quality of your work will be the main draw card. You may decide that some extra training or experience would help before you branch out on your own. Do you have the personality to build and foster customer relationships? Depending on the type of work you do, repeat business could be your main income, and customers return to where they feel valued. Identify any other challenges you might face and what you could do to overcome them.

Due diligence Franchisors are required to provide you with a number of documents and details related to the franchise and it is your responsibility to ensure you have fully understood them.

Examine the franchise’s financial health record and see if it lines up with your expectations. Contact previous and current franchisees about the business, the franchisor and any issues they encountered. Double check your assumptions will pan out as you expected. Consider specialist business and legal advice. Check out the Australian Tax Office (ATO), The Australian Competition and Consumer Commission (ACCC) and Government websites for franchise information too. Do your homework thoroughly and keep records in case of any issues down the track. You don’t want to find out you have to generate all your own leads after you’ve laid down your hard-earned cash. A fully informed decision is likely to

be far more successful and rewarding in the long run.

Territories Some franchises organise their franchisees into areas or zones to ensure equality in their customer base. Make sure you are clear about where you can and cannot work/service.

Your franchise agreement will explain whether you have an exclusive territory or not, where you are permitted to market your business and any other exclusions and rights you have. Be sure to understand everything in this document before you sign up.

Research Owning your own business doesn’t necessarily mean every dollar you earn is yours. Find out what fees and other costs are involved in the franchise you are considering and don’t forget running and maintaining your vehicle. Some are initial and some will be ongoing. If you’ve worked for a salary, your tax requirements could be quite simple. Taking on your own business means knowing what your reporting obligations are. Check in with the ATO or a trusted accountant about franchise specific requirements. There are also potentially very different insurance needs. You want adequate coverage if you are working on private dwellings or at the very least, income insurance if the business would not be able to run if you were sick or injured.

Go for it If you value your freedom, have a marketable skill and are driven to succeed, then a mobile franchise may be just the ticket.

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“Like any business, your mobile business will flourish when it ticks three important boxes for the customer: quality, service and price.”

FE ATUR E : FI XED VS M O B I L E FR A NCH ISES

E X PER T A DV I C E

THE PROS AND CONS OF A MOBILE VS A BRICKS AND MORTAR FRANCHISE At any given moment there are thousands of people across the world looking at buying a business and many of those will be looking at a franchise.

There are as many types of franchises as there are businesses.

The franchise model is usually a safer way of starting a business for the first timer as a franchise’s established brand and systems can help the many would-be entrepreneurs who would otherwise join the alarming number who fail at their first attempt in business. A major reason to acquire a franchise business

is that it can give you the franchisor’s tried and tested knowledge on growing a business, and then you can use that knowledge in any future business venture, franchised or not.

of emotional and physical energy, so you need to do some thorough research.

Among the many essential things, you need to do before you buy your first franchise is to work out if you are most suited to a mobile, generally a service business model, or a bricks and mortar business model, generally selling a product. Ultimately this means you must decide if a ‘service’ franchise or ‘retail’ franchise is a better fit. It’s an important distinction in terms of both entry requirements and operational realities, and it’s a decision which can determine your ultimate effectiveness as a franchise operator.

So, first let’s look at some of the typical service businesses that operate successfully today. The good news here is that this sector has been growing rapidly since the turn of the century and it’s a trend that is tipped to continue. Popular examples include, various specialised cleaning businesses, car washing, mobile mechanics, pool maintenance, garden services, building trades, building maintenance, children’s tutoring, health services, home care, mortgage and finance broking, bookkeeping and real estate… and there are plenty more! So, you see that there are plenty to choose from!

Whichever model you choose, you are going to invest a sizeable amount of funds and lots

48 Business Franchise Australia and New Zealand

The mobile business model

Similarly, as a one-man band, if you are sick or not available to work maybe all the money flow will stop.

The bricks and mortar business model Everyone is familiar with the typical retail or product businesses that fill every shopping mall and strip shopping area. Drive around an industrial area and you’ll see many more, often very profitable business-to-business outlets.

Between them they offer literally any product you can imagine.

Whilst these outlets can be a very good choice, and provide a good return on your investment, make sure you do your homework and take care with your decision.

Some cons It’s a busy marketplace in which there are often new entrants, many new businesses up for sale, and many vacant sites, all looking too tempting at first sight.

“Do not fall for the trap many do by thinking everything will be done for you, and that franchising suits everybody, because that just isn’t necessarily true.”

Trade-based mobiles are typically ‘skills based’ and often best suit those with the ability, interest, and dedication to be active and ‘work with their hands.’ Not everyone can fit. And of course, you need to have or be eligible for the appropriate qualifications.

The pros Because many mobile businesses do not require a showroom or factory unit their overheads are kept to a minimum. Always a bonus, especially when cash-flow is tight.

In these circumstances, often it’s easy to create a positive cash flow, especially when you have few, if any, employees.

And, working hours can be flexible – often by appointment only – so you’re not restricted by long retail hours. This can be

a big plus for some lifestyles. But keep in mind, like most businesses, the more you work the more you earn.

With this is mind, consider that mobile service businesses generally can offer more economical start up and operating costs, and often they require few if any staff for their day-to-day operation. And of course, being home-based they may well offer a lot of flexibility. Looking to the future it’s worth noting that this also gives you the advantage of expanding to more areas at a minimal cost if you want.

Some cons Does this all sound too good to be true?

Because what suits one doesn’t necessarily suit another, the flip side of the benefits I’ve described is, depending on your ambition and resources, the points outlined above can each be viewed as disadvantages. Particularly in limiting your growth potential.

Is your family going to be happy about filling your home with stock, for example?

You may also find you have more admin work than you would like. Without a showroom, maybe you must generate the sales. And if you’re not experienced in

Don’t be fooled by attractive rent offers and incentives because you’ll be committed to a lease of several years which you’ll be liable for whether you make a profit or a loss!

In the case of many business types, despite receiving rental incentives, there’s a significant initial investment with fit-out and stock among your start-up costs. In many cases this can be half a million dollars or more!

To add to the mix, in most cases there will always be lots of competition. Often very strategic, with ruthless price-cutting and sales methods. So, it’s not a field for the novice.

However, for the wise and well-prepared, there can be significant profit and capital gain for when you come to sell.

So, as you can see, there have been many pros and cons you have considered.

Assuming that by now you’ve made your choice between a mobile and a bricks and mortar franchise, let’s look closely at franchising.

The next step Beware of snake oil salespersons.

Regrettably many business buyers fall in love with a business or whoever is selling it.

Whether or not it really is the right business

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“Whichever model you choose, you are going to invest “When considering a sizeable amount of funds and lots of emotional and the value of such physical energy, so you need to do some thorough contracts, take into research.” account the length Brian Keen | Founder | FRANCHISE SIMPLY of the contract and the rights of the client to cancel or terminate the contract. Ask to see a copy of a sample contract.”

a role the hours you must spend calling on prospects can be disheartening and ultimately, if you don’t hit your sales budget, financially crippling.

FE ATUR E : FI XED VS M O B I L E FR A NCH ISES

E X PER T A DV I C E

for them inadvertently becomes second in line. And be aware that sadly, not all businesses or franchises turn out the way everyone wanted, and for a whole number of reasons.

You can best avoid being one of these numbers by doing your research properly and choosing the ideal franchise for you. In this way you are optimising your chance of success so you can achieve your goals and no doubt create a business asset that you can one day sell at a handsome profit.

Learn about franchising You’ve thoroughly researched the marketplace and selected your franchise.

BUT, what do you really know about franchising?

Is your opinion accurate? Or is it based on rumour and urban myth?

Franchising really is a marvellous business model that has helped endless hundreds of thousands of franchisees become wealthy, but do not fall for the trap many do by thinking everything will be done for you, and that franchising suits everybody, because that just isn’t necessarily true.

“Doing your research properly and choosing the ideal franchise for you is the best way of optimising your chance of success so you can achieve your goals and no doubt create a business asset that you can one day sell at a handsome profit.”

Carefully ask yourself a whole range of questions and determine just what your skillsets are.

Consider your answers carefully and decide if franchising really is suited to your skill sets and personality.

Free Help – I’ll pause here for a moment to recommend you enlist the free help of Dr John P Hayes, one of the most authoritative people in the world when it comes to franchising. Go to surveymonkey.com/r/ howtobuyafranchise and complete his free franchise-specific DiSC Profile.

You’ll receive some very valuable information from John that will help you considerably.

This step alone could well save you your investment!

So, now’s the time to review your research results and, if you feel confident this franchise is the one for you…

Congratulations!

50 Business Franchise Australia and New Zealand

Now call your chosen franchisor. Because if you’ve asked enough questions of the right people, and critically, of yourself, you have optimised your chance of success. Just like the many other happy and successful franchisees prospering in this exciting and dynamic world of franchising.

Brian Keen has been involved in the franchise industry for more than 30 years and today is the Founder of Franchise Simply. His on-the-ground business experience as a multi-unit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years has been fed into Franchise Simply, helping today’s SMEs grow their business by franchising.

For more information on Brian can be contacted at Franchise Simply on 1300 960 136 or go to www.franchisesimply.com.au

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MOBILE FRANCHISEE TIPS

PUT YOURSELF IN THE DRIVER’S SEAT A mobile franchise business could be your vehicle to a more flexible and dynamic career.

You can be your own boss and call the shots or sell the shots (if you buy a coffee van), but as part of a franchise you shouldn’t be left to navigate your new territory alone.

Before buying a mobile franchise business, you need to be satisfied that the franchisor will provide the training, technology and ongoing support you will need to build your business as part of a reputable brand.

Training Most mobile franchises offer three to four weeks of initial training, giving you the chance to learn about the equipment, booking system, financial management, marketing and setting goals. But is ongoing training part of the franchise agreement? Do you get a mentor? This training could relate to new products, technology or innovations.

You may need new skills to stay competitive in a changing market. Are you able to access training modules from your smartphone or tablet? Does the franchise agreement cover the cost of a new qualification if you are, for example, an electrician branching into

“You can be your own boss and call the shots or sell the shots (if you buy a coffee van), but as part of a franchise you shouldn’t be left to navigate your new territory alone.”

Corina Vucic | Director | FC BUSINESS SOLUTIONS

solar installation? Being given a DVD or a YouTube link isn’t going to cut it. Ongoing training reflects the quality of the franchise.

Equipment As a mobile franchise business, your vehicle is your number one asset. It will be a good quality vehicle of a certain type, with branding on the exterior that identifies and promotes your business. You will either buy or lease the vehicle, depending on the franchise agreement. For example, one mobile coffee franchise sells the vehicle as part of the franchise fee for up to $150,000, while another franchise retains ownership of the van and equipment and the franchisee pays a licence fee of $250 plus GST per week. You may need to pay extra for such tools as a trailer and the ride-on mower. Does the franchise agreement cover vehicle maintenance or comprehensive car

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insurance? Is so, for how long? Consider how much you’ll spend on petrol each week, especially in a regional area. A GPS system is required, but software that syncs with the company’s CRM system to show routes and update appointments is even better.

HR helpdesk and support You might start out alone, but then find you need to employ other people because you have successfully increased business.

Does your franchise have a HR helpdesk that covers workplace compliance? Does the franchisor offer advice on hiring, onboarding and managing staff? You will need to know current IR laws, regulations, wage requirements and the relevant regulatory bodies. You may have no experience hiring staff, so you need to find out if the franchisor will provide training. You do not want to risk a fine or penalty or end up damaging

Service providers Many franchises have particular products and suppliers that franchisees must buy, use and/or sell. Find out if the franchisor gets a rebate or other financial benefit from these arrangements. Sometimes, the franchisor sells key products or services directly to franchisees. Check if you can source your own suppliers and if there are any limitations. If you choose your own suppliers you will need to consider reliability, quality, cost-effectiveness and warranties.

Another consideration is storage and access.

Is there a centralised warehouse or do you need your own storage or office facility? For example, if you’re running a tyre business, where do collect the tyres from for your next job? If it’s a pool-cleaning business, where are dangerous goods stored? This information should be in the franchise agreement and disclosure document.

Technology You’re on the road, so you want easy access to the information you need to run your business. You should be able to get client details and your schedule with a few taps on your phone. The franchise may expect you to buy particular software and IT, which could mean a new laptop computer, tablet or smartphone as well. Check if you will be able to access tasks, instructions, the operations manual, training materials, policies and procedures from any location or any device via cloud technology.

Is there a centralised system to provide local referrals and if so, what costs are associated with it? This system should cover CRM, scheduling, online booking, estimating, dispatch, routing, GPS, invoicing, payments, royalty collection and reports. Do you need to carry a portable EFTPOS machine or are payments made online? You’ll know the franchisor is up to date if they are using a mobile app to deal with payments, communicate, deliver training modules and audit.

Communication Do you have the ability to stay connected with the franchisor? Unlike a fixed site, where you can ask the person sitting next to you for advice, you’ll need to get answers and support in real time on the road. You don’t want to get bogged down with multiple phone calls and emails. Is there an instant messaging service? Does the franchise use cloud-based platforms, such as Google Docs

“You’re on the road, so you want easy access to the information you need to run your business. You should be able to get client details and your schedule with a few taps on your phone.” or Dropbox? Many franchises have an online message board, forum or social media group for franchisees to connect with each other to share ideas, marketing suggestions and ask for advice. You should also expect regular communications about company news, policy changes, product launches and new franchisees and staff.

Compliance You will need to know your rights and obligations under the Franchising Code before you enter into a franchise agreement.

Decide if you can comply with the operations manual. What mentoring and guidance will you get? This is particularly pertinent when you’re the sole representative of a franchise and its core values in a local area. Do you have the personality to develop a quick rapport and make people feel at ease? Your vehicle will also be advertising your business. You’ll need to obey all road rules, be courteous to other drivers and keep the vehicle clean and repair any damage as soon as possible. You don’t want potential clients remembering the brand for all the wrong reasons. If you do have an accident, how will you manage the business while your vehicle is out of action? Does the franchise agreement include the temporary use of another vehicle in such incidences?

Consistency and compliance are the keys to a successful franchise business.

Marketing and social media A percentage of your sales will go towards

marketing. Check if the franchise is using SEO (search engine optimisation), PPC (pay-per-click), social media and local search engine marketing. Research shows most people use their smartphones to search for a business, so check if the franchise has a mobile-optimised website. How does the franchise’s central website and social media help you at a local level? Your market, demographics and local competition may be different to a franchisee operating in another state. How does the franchise deal with those differences? Does the franchise use newspaper advertising, email or SMS to reach potential clients? It is unlikely you will be allowed to run your own social media because of quality control but find out if it’s an option.

Corina Vucic is the Director of FC Business Solutions. With over 20 years in the franchise industry, and extensive operational and management experience, she works closely with leaders to take their business to the next level. Whatever their goals, Corina coaches, mentors and supports business owners and executives to maximise success and minimise risk for long-term business prosperity and security.

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

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your reputation, the reputation of the brand or breaching the franchise agreement because you have failed to meet compliance requirements.

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HOW THE VIRTUAL WORKPLACE IS TRANSFORMING HUMAN RESOURCES A business is only as good as its people. That’s one of the most commonly used clichés in business, however that doesn’t make it any less true.

Every business leader knows that talent is your real competitive advantage, and without a stable, engaged workforce, your

client and customer relationships will suffer.

In other words, if you don’t have the right people in place, you’ll lose business to your competitors that do.

Recruitment is becoming a major business challenge as big fish compete for the pick of the limited talent pool. While the big end of town can – and often do – throw money at the recruits they want, smaller businesses with fewer zeroes in their payroll budget often find it more difficult to attract indemand talent.

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The virtual workplace as a recruitment tool However, the virtual workplace model has the potential to change all that. It allows small and medium businesses to offer the work flexibility that most big-company employees can only dream about. With a virtual workplace model in place, your team can work from home – or any location of their choosing – and say goodbye to the long commutes to and from a city office.

This work flexibility is highly valued among

Ruth MacKay | Founder and Managing Director | OURTEL SOLUTIONS

a wide range of employees, and can allow small and medium business to attract the top talent away from more cashed up corporations who rely only on money as a recruitment tool.

The virtual workplace model also unlocks hidden talent that is often not available to traditional bricks-and-mortar companies.

For example, at my company our 100 per cent virtual model has allowed us to recruit talented agents who live in remote areas away from cities, mature-aged employees who bring a wealth of experience to our team, and people with disabilities or mobility issues who may be unable to travel to a bricks and mortar workplace.

Retaining staff with more than money Staff retention is another challenge that keeps many business owners up at night.

When an employee only works at your company because of the salary you pay them, they are usually open to other offers and will often head to your competitors if that’s where the money is.

In other words, if money is your only retention tool, you’ll likely find yourself paying out more and more to keep your key staff until you hit a tipping point that is completely unsustainable.

drastically reduced our recruitment and training costs, but also ensures we have a stable foundation of employees who can build long-term relationships with our clients.

Human resources in the virtual workplace However, the virtual workplace doesn’t run itself, and requires a strong commitment to ongoing human resources management to ensure employees feel supported, included and on a defined career path.

Technology is a key tool here. We hold daily social catch ups in virtual classrooms where staff can feel free to chat about nonwork issues and develop strong personal relationships with each other. This helps to foster a sense of inclusion within our teams, and helps to ensure our agents don’t feel isolated.

Also, technology helps us to closely track employee performance against their KPIs. This allows our team leaders to recognise and reward high performers, and to identify when an employee may require further support or training so none of our people feel lost, overwhelmed or forgotten.

The virtual workplace model, on the other hand, gives your employees reason to stay with your company over and above their salary. Once they experience the superior work/life balance of a virtual workplace, it becomes much more difficult for your competitors to steal them away with offers of more money alone.

For example, more than 60 per cent of our employees have been with us since our launch eight years ago. This had not only

A virtual model allows you to recruit employees who bring a wealth of experience to your team including people who live in remote areas or people with disabilities or mobility issues who may be unable to travel to a bricks and mortar workplace.

Of course, the virtual workplace isn’t a good fit for everyone. That’s why it’s vital to get your recruitment right in the first place.

Don’t underestimate the importance of the right soft skills here. Even the most technically gifted employee may struggle to thrive in a virtual work environment if they don’t possess the necessary characteristics.

From my experience running a virtual workplace, I know that high-performing virtual workers tend to be results-orientated people with high-level communications skills. They must also be pro-active relationship builders, self-sufficient, self-disciplined and willing to set clear boundaries between their work and personal lives.

Get that right, and the virtual workplace model will not only help you recruit the top talent without busting your payroll budget, but will also make it easier to retain them and create a stable long-term workforce you can build your business on.

Ruth MacKay is the founder and managing director of OURTEL Solutions where she manages a 100 per cent virtual workforce. She is passionate about helping businesses gain a competitive advantage, improve profits and retain top talent through leveraging proven virtual workforce models. Ruth is also the author of the new book, The 21st Century Workforce. For more information visit www.ourtelsolutions.com

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“With a virtual workplace model in place, your team can work from home – or any location of their choosing – and say goodbye to the long commutes to and from a city office.”

Key attributes of a successful virtual worker

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H AV E YO U R S AY

BEING AGILE IN A FAST-PACED WORLD Agility may be a buzz word in business, but it’s the key to staying competitive and relevant in a fast-paced, rapidly changing world.

Since taking on the role of CEO at GymbaROO 18 months ago, Beth Pocklington had to be as agile as the thousands of children who climb, jump and swing on GymbaROO’s equipment every day. She had to listen to franchisees and customers, challenge the status quo and take risks to help the business evolve.

GymbaROO CEO Beth Pocklington

Research shows GymbaROO founder Margaret Sasse was well ahead of her time in recognising the link between exercise and cognitive development but in many ways, the franchise had become old school. We spoke with Beth to find out how she transformed the business from old school to the business it is today.

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Understand technology It is important to understand the effects technology will have on your business operations; technology can affect business culture, efficiency, staff relationships, and your profit. Ensure everybody in your business is using the same platforms and technology – you want everyone on the same page. Communicating via platforms like Zoom video conferencing allows you to have face-to-face interaction with staff members you might not be able to get out and see.

Make sure emails are purposeful and to the point. Many franchisees are working on their business at night, after an exhausting day running their business, emails need to deliver important information at a glance.

Many businesses still don’t have enough of a presence online or aren’t using their websites to their full potential. When I started at GymbaROO the magazine that documented all the scientific research that backed-up our programs was still printed and not

readily available online for our customers and franchisees. A well-maintained website can help you gain a competitive advantage and improve your brand. Your website is often your first impression you give potential customers.

Set goals Goals are powerful and are hugely important for every business owner. Be sure that your goals tie back to your mission, ensure they are realistic and consider the actions needed to achieve these goals. One of our first goals was to remind the community that we had more to offer than our competitors, that our programs are evidence-based and give parents the chance to actively contribute to their child’s mental, physical and social development and readiness for school.

We started working on our goal by updating our branding. We launched our new website in July 2018 and within the first nine weeks, we had 1000 unique enquires about classes. The content doesn’t need to change, sometimes just the design of the website can make a huge difference.

Rebuilding a brand includes creating an agile mindset and culture within the organisation, especially in terms of technology and marketing.

“It is important for a leader to demonstrate respect for their franchisee’s knowledge and experience, and earn trust, which is an ongoing process.

Passion should come before profit.” their space with other businesses. How do you protect your assets when you are not there?

Be an open leader Naively, I expected that the franchisees would be thrilled to have new leadership.

But many had been in the business for a long time and they weren’t going to trust a new leader right away. It is important for a leader to demonstrate respect for their franchisee’s knowledge and experience, and earn trust, which is an ongoing process. Passion should come before profit.

Be agile

GymbaROO was originally devised as a mobile franchise, and about half of our franchisees still have pop-up centres for parents and children rather than a fixed location. Mobile franchises are very popular and while they offer flexibility, they also present unique challenges. The church halls and community centres are often run down and desperately need a lick of paint. Assembling and disassembling all the equipment is hard work and usually, it’s one person doing it.

Being agile means accepting that not all changes will immediately work. This was the case with our social media strategy.

We updated all of our term program social media posts and uploaded them to our intranet portal but less than a handful of franchisees used them. Ensure you don’t just provide the tools; franchisees need to have instructions on how to apply the tools. So, go back to basics and run webinars on how to use Facebook and Instagram. For those franchisees who don’t want to run their social media, take full control of their pages and post centrally for them.

When choosing a mobile or fixed site it’s important to understand that many of the sites do not have the infrastructure to run an online system. This often means there will be an upfront investment in computers and internet access and presents logistical challenges for mobile franchises that share

We’ve also harnessed the expertise that exists within the franchise. I implemented a Franchise Advisory Council and the representatives are senior franchisees who have significant standing in our network.

Don’t underestimate the power and knowledge within your team.

Recognise your challenges

To reap the rewards of being agile, you have to take risks. I had no certainty that the changes I was making would work. I often had to act outside of my comfort zone. My default is to be careful and considered, but that is not how I have been operating since becoming CEO. I’ve been lucky to have mentors to assist me along the way and I’ve found the franchise community willing to share and help me grow.

The attractiveness of franchising is that the product or service can change, but as long as the franchise has a solid foundation, it’s never too late to go back and build up the business again. A family-run franchise needs to recognise when it’s time to commercialise and get external help, especially if they’ve been around for a long time and need help adapting to the digital age.

Beth Pocklington is the Chief Executive Officer at GymbaROO. Beth is an experienced franchise operations professional with a career of more than 10 years in the industry across health and fitness, food retail and allied health systems.

GymbaROO is an iconic brand that has provided amazing neuro-developmental programs for children for more than 35 years. Everything we do at GymbaROO is about ensuring that each child has the opportunity to lay the crucial foundations for later learning and fostering the normal sequence of development appropriate to each child’s stage of development. www.gymbaroo.com.au

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“The attractiveness of franchising is that the product or service can change, but as long as the franchise has a solid foundation, it’s never too late to go back and build up the business again.”

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THE ONLY 4 THINGS YOU NEED TO KNOW ABOUT

MARKETING YOUR FRANCHISE BUSINESS

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“All marketing activities must work towards building brand value. Brand value is the collective sales advantage founded on the speed of which your brand comes to the customer’s mind and purchasing hand during the critical buying moment.”

Troy McKinna | Co-Founder | AGENTS OF SPRING AND CALM & STORMY

Purchasing decisions are made quickly.

According to Daniel Kahneman, 97 per cent of decisions are system one, that is they are unconscious, automatic and effortless.

Picture the simple but every-day challenge of deciding what’s for lunch. As you walk out of the office, someone asks ‘what’s for lunch?’

Easy enough question, but there are so many options, how to decide? What’s the criteria?

Do you want something tasty or healthy, takeaway or sit down, is it a hot or cold day, do you want something light or something hearty?

In this and every decision, brands offer a short-cut for customers decision making.

As business owners we would like to think customers consider all options and make a rational decision, but the reality is they make fast, emotional decisions. Today I feel like a burrito. A strong brand connects the customer problem with a compelling solution. Providing rich experiences and embedding strong memories ensure it is recalled faster than the competition.

All marketing activities must work towards building brand value. Brand value is the collective sales advantage founded on the speed of which your brand comes to the customer’s mind and purchasing hand during the critical buying moment.

Behind every strong brand are 4 simple foundations.

Find customer problems What problems will customers pay you to solve for them? The first foundation to building a brand is identifying a deep human insight that motivates customers to buy. It is easier to find something customers are internally motivated to act on, rather than trying to convince them.

There are 3 key elements to a motivating insight:

“The first foundation to building a brand is identifying a deep human insight that motivates customers to buy.”

1. A contextual fact about how people behave or what they are doing.

2. A functional, social or emotional need that are looking to satisfy.

3. A problem, frustration or challenge that stops them from satisfying the need.

busy to decode your corporate jargon and will struggle to remember the offer in the critical buying moment. To make your product or service sticky you must articulate the benefit it delivers in customer language, with a distinct reason to believe.

Design solutions

A benefit ladder is a tight articulation of your product or service solution. At the bottom are the features that set your brand apart from the competition. These features ladder up to deliver a functional benefit. What does it do for the customer? Functional benefits in turn ladder up to deliver emotional benefits.

How does the customer feel once they have experienced your product or service?

Can you articulate your solution to customers problems in a motivating and meaningful language? Customers are too

The best benefit ladders are single minded.

Snickers is packed full of peanuts, which fills you up and helps you feel satisfied or

The Grill’d burger chain have identified that people like to escape the office because they want to eat something tasty for lunch, but it can’t be unhealthy or make them feel sick after eating. They exist to solve the tension for customers between healthy and tasty.

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If you operate in a competitive industry you need a strong brand to thrive. Adults make approximately 35,000 decisions a day. The reality is, customers are time poor and deciding what to buy is just another decision in their day.

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“The average adult is exposed to 5000 messages a day. To cope, the brain has a filter keeps most of messages out. It’s like a bouncer that decides what messages to let in and what to reject.”

Snickers really satisfies. The biggest trap to avoid is being all things to all people. A failed local restaurant thought they could successfully offer pizzas, tacos, seafood and curries. Customers were confused and the venue went out of business.

Sell experiences How does your sales environment create a memorable experience for customers?

The retail world is going through a large consolidation; the retail apocalypse. Average retailers are getting squeezed out of the market. On one side are the low-cost price dealers and on the other are the experience providers.

Each store is architecturally designed.

Shoppers are offered green tea. Ambience and aromas add to the entire experience.

Embed memories How is your brand embedding memories in your customers minds? You may own the trademark for your brand, but the true value of your brand sits in the minds of your customers; the memories and associations about your brand.

The key is to map the service journey through the eyes of your customers. What points in the journey represent opportunities to delight and what are the biggest pain points that need addressing?

The average adult is exposed to 5000 messages a day. To cope, the brain has a filter keeps most of messages out. It’s like a bouncer that decides what messages to let in and what to reject. Getting past the bouncer involves telling an engaging story. Strong brands have a consistent tone of voice, a clear message about what they stand for and against and a platform expertise to broadcast the message.

Science shows engaging more than one sense can improve memory recall. Aesop stores offer an amazing luxury skin care experience.

KFC’s tongue and cheek campaign ‘shut up and take my money’, is a great example of a brand amplifying its voice in an engaging

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way in an advertising channel that they clearly know how to execute in.

Great marketing builds brand value by mastering four foundations. Does your business know the problem you solve for customers? Can your business articulate solutions in a meaningful and motivating language? Are the solutions sold as part of an amazing customer experience? Are you consistently building memories in customers’ minds?

Troy McKinna is an entrepreneur and brand building specialist. He is the cofounder of Agents of Spring and Calm & Stormy. A sought after innovation consultant, facilitator and speaker who helps senior leaders and teams build customer-led growth strategies. He is also the author of Brand Hustle – 4 critical foundations to accelerate brand growth.

For more information go to: www.agentsofspring.com.