T he
ma g a z ine
VOL 08 ISSUE 03 march / april 2014
for
franchisees
AUSTRALIA and NEW ZEALAND
win your own
ADDA -
kwik kerb business
step up for good in the community
Due Diligence:
10 Top Tips Planting the
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LATEST NEWS
seeds of success FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
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p. 0800 4 FASTWAY w. fastway.co.nz
*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769 | Fastway Couriers (NZ) Ltd T/A Fastway Couriers, New Zealand. Fastway Couriers is a franchised courier network and its businesses are independently owned.
3733
YOUR KEY TO FUTURE SUCCESS
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busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
From the
Editor
Joanne Tuffy - Editor
BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 8 ISSUE 3, march / april 2014
Franchising…what does this mean to you? For some, the old adage of “being in business for yourself, not by yourself” is the most important factor and for others it’s being part of an industry that contributes $131 BILLION to the Australian economy and is proven to grow at a better rate than other small business. Whatever your reasons, you’ve taken the first step on your franchising journey by picking up this issue of Business Franchise magazine and we welcome you. This issue takes a closer look at mobile franchises and home-based franchises. Does the idea of working from home, wearing your PJ’s appeal? Read the insightful and amusing expert advice from Karli Furmage from Franchise Relationships Institute on page 64 who explains that it’s not all about sending
an email, making a call and then watching daytime television. How about being out on the open road, meeting different people every day? We take an in-depth look at two of the most popular mobile franchise systems, Fastway Couriers and Xpresso Mobile Cafe within our Feature, starting on page 61. Our Expert Advice writers have come from all areas of franchising to help you in your franchising journey. From maximising your potential with Tania Allen from Vision Alliance on page 18 right through to how to franchise your own business with Kevin Bugeja from Franchise Selection. There’s a wealth of knowledge and experience waiting for you within this issue. If this magazine has piqued your interest, why not come along to the Franchising Expo being held in Sydney 28th – 30th March at the Royal hall of Industries, Moore Park in Sydney. As well as showcasing a range of different franchise systems under one roof, you can also speak to experts within the field all offering expert advice and information. We hope to see you there!
publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: Anna Francis. accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 8790 8006 COVER IMAGE: Australian Drug Detection Agency TO SUBSCRIBE: www.businessfranchiseaustralia.com.au
Joanne Tuffy Editor
or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au
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The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Business Franchise Australia and New Zealand 3
Contents MARCH / APRIL 2014 On the Cover 10 Step Up for Good in the Community
Australian Drug Detection Agency
18 Planting the Seeds of Success
Tania Allen, Vision Alliance
48 10 Tips for doing Due Diligence
48
In Every Issue 6
What’s New!
Announcements from the industry
88
Lorelle Frazer, Griffith University
26
Profiled Franchises 16 Bodiez 24/7 Fitness Club
10 Cover story – Step Up for Good in the Community
30 Kwik Kerb
12 So, You Want to Buy a Franchise?
36 Oceanmaster
Australian Drug Detection Agency
Michael Paul, FCA Chairman
14 Conference 2014
Graham Billings, FANZ Executive Director
61 Feature: Home-Based v Mobile Franchises.
Which one’s for you?
99 Behind the Headlines
Jason Gehrke, Franchise Advisory Centre
101 Professional Services Listings 102 Franchise Listings 104 A-Z Franchise Directory 4 Business Franchise Australia and New Zealand
46 Snap-on Tools 52 Franchise Selection 60 V.I.P. Australia
61
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
26 Every Business starts with a Dream
Sharen Verrenkamp, Westpac
42 Fending for Yourself
Katherine Grace, Graceful Marketing Solutions
56 How Healthy is your Business?
Nik Konidaris, FC Business Solutions
64 Rules, Tools and Wearing No Shoes
Karli Furmage, Franchise Relationships Institute
78
Expert Advice
also in this issue: Allphones................................................41, 104 Appliance Tagging Services............... 104 Australian Drug Detection Agency............................................................ 104 Battery World.................................OBC, 104 Brazilian Beauty................................. 77, 105 Cashflow It....................................................... 91
72 Teleworking: Making it work for you
Fasta Pasta................................................... 106
Fastway Couriers............................ IFC, 106
Barbara Lepani, Department of Communication, Australian Government
78 Resolving Franchise Disputes
David Newton, Office of the Franchising Mediation Adviser
82 What Happens if my Franchisor
Decides to Sell?
Derek Sutherland, HWL Ebsworth
88 Digital Disruption: The Impact on
franchising
Richard Brodie, Deloitte Private
94 How do I Franchise my Business?
Kevin Bugeja, Franchise Selection
FC Business Solutions. ............................ 17 Fibrenew. ...............................................98, 106
42
First Class Accounts........................51, 107
Frog Rent........................................................107 HairHouse Warehouse..................... 2, 107
HiDow...................................................... 85, 107 Hudsons Coffee................................ 29, 107 Inspect My Home..................................... 108 Jim’s Fencing. ......................................87, 108 Just Cuts........................................................ 108 Lava Carts..................................................... 109
22 Ella Baché
Red Rooster................................................. 109
38 Crema Espresso
Redcat................................................................... 1
68 Fastway Couriers 74
Xpresso Mobile Café
22
Franchisor in Depth
Sleepy’s........................................................... 110 Snooze.................................................. IBC, 110
Spraypave Australia.................................. 110
Franchisee in Action 32 Listen to Read
Taco Bill. .......................................................... 111 The Concrete Cutter................................ 111 Thebestof................................................45, 111 Toolforce. ................................................ 81, 111 Top Snap................................................ 51, 111
Spotlight on Service
Total Tools.............................................. 21, 112
54 Smart OHS
Trading, Property & Franchise Expo. ................................................................... 35
58 National Franchise Insurance Brokers
Unscratch the Surface............................ 112
96 Franchising Expo
Walker Wayland............................................ 83
what’snew! forward to making coffee for many more as part of our new community in Cleveland.” The Zarraffa’s Coffee Cleveland location is situated in an ideal suburban belt, east of Brisbane and is the 68th store for the company. Zarraffa’s Coffee Executive Director, James Barritt, said 2014 will be another huge year on both the east and west coasts of the country for the company. “Cleveland will be the first of a number of Queensland locations, with a great mix of existing franchisees reinvesting in the brand along with a new set of franchisees ready to join the fray.”
Bumper Year Ahead for Zarraffa’s Coffee With an expected ten stores slated for opening in 2014, the Australian-owned franchise coffee chain kicked off the year with a new drive thru store in Cleveland, Brisbane.
Street premises being redeveloped but has given the franchisees the opportunity to take their skilled team to brand new suburban location to deliver great coffee to whole new community.
The Cleveland store is owned and operated by long term franchisees Rosie and son Robbie Hicks, who recently relocated their Albert Street franchise to new premises at 33 Shore Street West, Cleveland, QLD.
“Starting fresh in such a fantastic location will give us the chance to take what we have learned over the decade at the Albert St store,” said Mr Hicks.
The move was precipitated due to the Albert
“We really enjoyed our time in the city and had some great customers and we look
Win your own business with Kwik Kerb Kwik Kerb are giving one lucky reader the opportunity to own and run their own business and achieve their own financial success, AT NO COST. Marketing Manager, Alex Colls explains, “We are giving away, free of charge, a brand new fully equipped trailer, along with the same materials, training (plus accommodation if inter-state) and support that someone who purchases a Kwik Kerb business would receive. The competition is exclusive to Business Franchise magazine and you’ll find the terms and conditions of entry on page 31. The closing date of the competition is Friday 19th September with the winner announced in the November/December 2014 issue.
6 Business Franchise Australia and New Zealand
Mr Barritt said focus will be paid to building the strength of the Western Australian stores and planning for potential franchise opportunities available at existing and potentially new sites. “We’ve enjoyed a healthy 12 months of trade in the West with a strong customer following and improved operations. Franchising will be an option in this exciting, coffee-loving market.” Regional Queensland is also expected to enjoy new openings across the year with stores in Cairns and Dalby and further expansion in Townsville expected. “With the opening of our first store in Townsville late last year there is a clear interest in our products and drive thru convenience by customers and we expect to replicate this as we move further west and north in the state.”
CAFE2U sets its sights on expansion in New Zealand’s North Island Cafe2U, the world’s largest mobile coffee franchise has revealed plans for significant expansion in New Zealand, setting its sights on the North Island. With a well established coffee culture, New Zealand’s discerning market has been earmarked as an ideal fit for the highlydeveloped international mobile coffee franchise system. John Stanton, Cafe2U’s Australasian Recruitment Manager is positive that Cafe2U’s high quality product, proven business model, guaranteed income and opportunity for great work/life balance will appeal not just to the discerning coffee drinkers of New Zealand, but also to New Zealand resident’s seeking alternative models of employment. With over 200 franchises worldwide, including Australia, UK and the U.S.A,
Cafe2U has a proven record of local and international success, which John credits to a high quality product offering for both end-consumer and franchisee, as well as the attractive incentives and support the company has to offer. “What particularly differentiates Cafe2U from other mobile coffee franchises, is the ‘Acceleration Package’, a unique, comprehensive four-week training and support program for new Cafe2U Franchise Partners. The Acceleration Package enables new Franchise Partners to be trained and in operation in only 4 weeks, with a guaranteed minimum turnover of $500 a day,” Stanton added. As part of the Franchise Package, Cafe2U provides Mercedes Benz vans housing state of the art coffee making equipment, enabling franchisees to pull up outside of work places and events and provide a service once
restricted to a coffee shop. Cafe2U is aiming to appoint 15 new franchises within the next twelve months across New Zealand, with approximately half of these on the North Island.
Explore every opportunity at Franchising Expo “It’s great being able to research business opportunities on the internet, however nothing can replace a real person explaining the ins and outs of their venture,” explains Exhibition Manager Fiona Stacey. Stacey adds that The Sydney Franchising and Business Opportunities Expo will give all visitors the opportunity to compare and research a diverse range of franchise opportunities with investment levels from under $10,000 to more than $500,000. “Entry is free if you pre-register online, and there is an abundance of information available on every aspect of being your own boss,” she says. “It’s really time to stop dreaming and start doing.” The Sydney Franchising and Business Opportunities Expo is on Friday 28 March – Sunday 30 March 2014 at the Royal Hall of Industries at Moore Park. Entry is $15 at the door or free with preOne of the most challenging things for entrepreneurs planning to start or buy a business is deciding which one best suits their skills, budget and lifestyle. That’s why the Franchising and Business Opportunities Expo, which opens in Sydney 28-30 March, is so popular year after year – it showcases a wide range of businesses under one roof, as well as offering expert advice and information.
registration. Sydney’s show will be followed by the Brisbane Franchising and Business Opportunities Expo 19-20 July at Brisbane Convention & Exhibition Centre, and the Melbourne Franchising and Business Opportunities Expo, 22-24 August at Melbourne Exhibition Centre. For more information and free registration go to www.franchisingexpo.com.au
Business Franchise Australia and New Zealand 7
what’snew! Meet the talent behind Vietnamese food sensation, Rolld From one small store to 15 in just over 12 months, Vietnamese food sensation, Rolld, is not slowing down. Rolld now has its sights set on providing fast, fresh and flavorsome Vietnamese street food to a national customer base with a target of 100 stores over the next two years. Currently operating in three states, Rolld is now looking to penetrate the NSW market and has appointed former leasing executive Quintin Mansell as its NSW State Manager to oversee the expansion process. With extensive experience in retail leasing and an exceptional knowledge of shopping centre development, Quintin is well placed to manage the successful rollout of Rolld’s expansion strategy for New South Whales. “I’m thrilled to be a part of the Rolld team during this exciting growth period and look forward to exploring some fantastic opportunities in the Sydney market,” says Quintin. Bao Hoang, Co-founder of Rolld says: “I developed a working relationship with Quintin during the negotiation of our leasing agreement for the Eastland store and was extremely impressed with his experience and aptitude. I have full confidence in his ability to help us achieve our goals in NSW.” Heading up Rolld’s operations in Queensland, Michael Jamieson’s experience and knowledge is equally impressive, according to Bao.
One of the first franchisees of well-known Australian sandwich franchise, Healthy Habits, Michael has won several awards including the 2007 ARA (Australian Retailers Award) Franchisee of the Year and 2010 Franchisor Award for his ability to successfully maximise growth and sales profitability. “As the State Manager for Queensland, along with his extensive experience as a successful franchisee, Michael will be heavily involved in creating and implementing new systems, managing expansion operations and training new franchisees,” says Bao. “Rolld’s progression from one restaurant to 15 in under two years is extraordinary,” says Michael Jamieson. “I’m delighted to have the opportunity to help further expand the Rolld business in Queensland and I am confident we have the right team and systems in place to grow the business significantly over the next two years and beyond.”
Quest Wodonga Makes Donation to Local CFA Early February, Quest Wodonga franchisees Noel and Madeleine Wood and Jason and Natasha Callewaert presented the Wodonga CFA with a donation of $2,000. On accepting the cheque, Paul King - Operations Manager Wodonga CFA explained how grateful he was to Quest Wodonga for the donation. “Bushfires are a big problem in Australia and this part of Victoria has a recent history of serious fires. CFA currently has over 2000 volunteer and career fire fighters protecting communities in our district,” Mr. King said. “We are very grateful for the $2000 donation from Quest Wodonga. It will be going towards a mobile cool room to allow us to provide cold drinking water to fire fighters in the field,” Mr. King added. Quest Wodonga franchisees Noel and Madeleine Wood and Jason and Natasha Callewaert expressed their delight in being able to make this donation to a local and very worthwhile charity. “We were keen to give something back to the Albury/Wodonga community, as we have been so grateful for the support they have offered us since our business opened in August 2013. “Over the last five months we have grown close to the community and
8 Business Franchise Australia and New Zealand
have come to know the great work done by the CFA. We realise the service the Wodonga CFA provide to the community is invaluable.” Quest Wodonga is located at 46 Reid Street, Wodonga. For more information on Quest Serviced Apartments go to www. questapartments.com.au or for more information on the Wodonga CFA go to http://www.wodongacfa.com/.
DreamS DO come true with Narellan pools Ruby Ormsby-Qualtrough received the surprise of a lifetime when Narellan Pools delivered her dream of a new pool just days before Christmas. Narellan Pools franchisees from across the country descended on Ruby’s doorstep to transform the Ormsby-Qualtrough’s backyard into an outdoor oasis in just four days. Three-year old Ruby suffers from PraderWilli syndrome, a rare genetic condition that affects around one in 25,000 Australians. A key feature of the condition is excessive eating. “Ruby’s DNA does not have that answer to say I’m full,” says her mother Tanya. “She is literally hungry 24/7 and you have to lock everything: the fridge, any food sources, any water sources, anything like that. If they get away and on their own, they will eat anything and continue eating because they don’t have a shut off point,” she said. A priority for Ruby’s parents is to make her
childhood as normal as possible before the syndrome starts to rule her life. Narellan Pools Managing Director, Chris Meyer, was touched by Ruby’s story and chose to deliver the family’s dream of a new pool in time for Christmas. “Narellan Pools Franchisees rallied behind us, and flew into Brisbane from right across the country to help, generously offering their skills,” says Meyer.
to surprise the rest of the family with their dream pool.
“Other community members, many of whom had not met Ruby but were moved by her story also donated their time, services and products.
“We selected a Symphony 6 in Bermuda Blue for it’s contemporary design and childsafety ledge, which is perfect for Ruby,” says Angela.
“We pride ourselves on bringing dreams to life, and feel privileged to be in a position to help Ruby and her family enjoy a lifetime of memories in their Narellan Pool.”
“We have provided a Mineral Pool water option, which harnesses the healing powers of magnesium to enhance health and wellbeing.
The pool was designed by Narellan Pools’ Brisbane South franchisees Tony and Angela Kennedy to accommodate Ruby’s needs.
“Deciding on which pool to build was easy, it was keeping it a secret that I found difficult.”
Angela work closely with Ruby’s father Scott over the past few months to devise a plan
Ruby will exercise daily in her new pool, enjoying the feeling of weightlessness in the water
The Coffee Club forecasts significant domestic growth According to General Manager Arif Khan, the group received over 400 enquiries from potential franchisees in the last year and attributes the strong interest to the fact that The Coffee Club offers attractive business opportunities within a credible home-grown brand which has seen success at both a national and international level.
Australia’s largest home-grown cafe group, The Coffee Club, is targeting 56 new stores globally in 2014 on the back of a record number of annual enquiries and in the lead up to its milestone 25th anniversary later this year. With their sights on key growth areas such as Victoria and Western Australia, the group will continue a strategy of consistent and steady growth in a bid to provide viable business opportunities in its domestic network.
“We operate in a competitive retail hospitality sector and a very rewarding marketplace. Our success is fuelled by our passion for coffee, our customer-centric focus and our savvy business owners who recognise opportunity for themselves in that,” said Mr Khan. “We have an outstanding team of business owners in our network who play an integral role in driving their own business growth with the support of our award-winning model.” Late last year, The Coffee Club embarked on a brand transformation which saw the biggest changes the group has ever made,
introducing a more modern and premium cafe and dining experience. “We introduced some exciting elements such as a new menu and a new look store design, to reinvigorate our appeal to consumers. By listening to our customer and instilling the feedback we received, we are now offering them a enhanced experience in store,” said Mr Khan. “The Coffee Club model is one that welcomes innovation and potential franchisees want to be part of that. We attract business owners that share our love for coffee and share our aim to provide a welcoming, enjoyable and contemporary cafe experience.” Committed to providing good food, great service and excellent coffee, The Coffee Club welcomes those who recognise there is opportunity in creating jobs and providing a fantastic product and a friendly place to meet.
Business Franchise Australia and New Zealand 9
COV ER STO RY
STEP UP FOR GOOD IN THE COMMUNITY
From forestry and fishing, to airlines, education, and manufacturing - this business is helping make a difference and saving lives in the process. Standing relaxed and smiling in a beautiful forestry setting, seemingly far away from his day-to-day world, you wouldn’t suspect Kirk Hardy is a man who knows more about drugs and their effects than your average criminal. Kirk, CEO and Founder of the International Drug Detection Agency (global franchisor for the Australian Drug Detection Agency), lives with a passion rooted in the desire to help others; and it explains why they aim to be one of the fastest growing franchises in the southern hemisphere. Kirk explains, “I’ve seen firsthand the negative effect of drugs in the workplace, they destroy businesses and rip families apart.” With the DDA group I saw an opportunity to help organisations and individuals within these organisations to reduce their lost moments in life and revenue because
of alcohol and drugs; and to help make a difference. In 2007, the Australian Drug Law Reform Foundation published research which stated illicit drug use was costing Australian businesses $3.3 billion a year in lost productivity, absenteeism and injury. Nine years earlier Kirk Hardy had recognized this and started the New Zealand Drug Detection Agency (NZDDA) as a way to make a positive difference to society and help reduce the harm in that country. Natural expansion into nearby Australia led to the formation of the Australian Drug Detection Agency (ADDA), which was officially established in 2011 with its first State master franchisee in Queensland starting in 2012. Since then, Queensland now have seven regional franchisees with the New South Wales master franchisee starting in 2013 and actively marketing for franchisees throughout the State. Glenn Dobson, the International Franchise and Business Development Manager, says they are really keen to develop franchisees who have integrity, are passionate about what they do, and follow best practice in this fast growing and vital area of health and safety. He adds, “One of the great parts of the
10 Business Franchise Australia and New Zealand
business is that no two days are the same. The day-to-day business could include employee drug testing at a workplace, a pre-employment hair test at the office or a methamphetamine property inspection for a client prior to them purchasing a house. It could also include speaking at industry forums, delivering education seminars to workplace employees or training senior managers in how to deal with drug effected employees in the workplace.”
USING THE POWER OF the BRAND TO ENHANCE PEOPLES LIVES Alongside the technical testing processes, ADDA train all team members in the knowledge of the impact drugs have on workplace safety, individual performance, productivity and company culture. Glenn explains, “ADDA is all about safety in the workplace, but it also goes a lot further than that. The group’s vision is: “using the power of the brand to enhance peoples lives.” We see our services as not only making the workplace a safer place to be, but also making a positive change on people’s personal lives, their families and their friends.
“Some time ago we conducted a standard drug screen test on a worker at his workplace, and he returned a positive test for cannabis. Our technician discussed the result with his employer and as part of his employment contract, they put him through a rehab programme. “He was tested by our same technician about six months later and he passed 100% clean. But that’s not all, he then told us how he had undertaken the rehab course and stopped taking drugs. Several weeks into his rehab, his grandchildren came to his house on a Saturday morning and he played ball with them at the park for an hour or two. “He then went back home and told his wife that it was the best time he had ever spent with his grandchildren and wondered why they had never asked him to play ball with him previously. His wife then revealed to him they had frequently come around in the past to play but he had been too wasted to know what was going on, leading them to leave disappointed. “The intervention of our drug detection services not only prevented him from a possible work accident but secondly allowed him to break the cycle and enjoy his grandchildren again. This was a story he was really proud to tell, and one that we’re really pleased to have been a part of. It really sums up what we’re trying to achieve.”
CUTTING EDGE ADDA has an extensive commitment to developing and maintaining superior methodology. They want their people to be leading the competition on all levels; Kirk explains “R&D is a key driver for us. We were the first to the market with testing for synthetic cannabis in Australasia and continually strive to be proactive around drug trends and changes.
“I truly love what we do and what differences we make out there.” international trends in the drug and alcohol testing industry.
SUPPORT AND PASSION Central to the on-going operation of ADDA is the support for regional franchisees provided through the State Master Franchisees out of the State Support Office. This includes day-to-day operational advice, support with State, national and international clients, technical advice and IT systems, complimented by the support of the global franchisor (the International Drug Detection Agency) through brand and IP protection as well as drug industry knowledge and R&D. In conjunction with this ADDA have updated franchisee training to include a comprehensive induction programme to ensure all new franchisees have all the technical and business skills they need. Another key element of ADDA’s continued success is the passion of the existing team. Kirk in particular highlights the importance of each franchisee’s values, “we can teach business skills, we can teach people about the processes and what drugs do and what the emerging technology is, however we can’t teach honesty and integrity. This is DNA and you can’t change that. You either have it or you don’t.
Kirk Hardy - Founder and CEO of the International Drug Detection Agency (franchisor to ADDA)
we make out there, that is why qualities like empathy, integrity and clearly passion for making a difference in our communities is so important for us and what the Australian Drug Detection Agency stands for.” For more information on franchise opportunities with ADDA contact Glenn Dobson: Email: glenn.dobson@tadda.com.au Web: www.tadda.com.au
“What makes our organisation so special is the people and why we do what we do, why I still get out of bed in the morning and continue to work 11 plus hour days. “I truly love what we do and what differences
“As part of our drive to ensure we are always up to date with technology and to provide the best service to our clients, we are about to release two Drug Detection Agency apps across Apple and Android smartphones. These apps have been 12 months in the making and will give our franchisees, their clients and the public the ability to access relevant drug detection information and tools to deal with drug and alcohol related issues in the workplace and community It’s also worth noting Kirk is on the DATIA (Drug and Alcohol Testing Industry Association) General Board of Directors. This is an international drug testing association based in the US which assists in keeping ADDA abreast with local and
Glenn Dobson - International Franchise Manager with one of the drug testing devices used by ADDA
Business Franchise Australia and New Zealand 11
fr anch ise cou nci l of aust r a l i a
So, you want to buy a business? “If the idea of being your own boss with the added benefit of a support network, training and a recognisable brand sounds appealing, then franchising might be for you.” You can invest in a proven concept, brand and product, one that your future customers will already know. Michael Paul - Chairman, Franchise Council of Australia
Congratulations. If you’re considering going into business for yourself, and you have picked up this magazine, you’ve taken your first steps towards success. There are many reasons to go into business for yourself. Key among them, the opportunity to be your own boss, the challenge of building something, and work/life balance. If the idea of starting a business from scratch doesn’t appeal to you, there are other ways.
If the idea of being your own boss with the added benefit of a support network, training and a recognisable brand sounds appealing, then franchising might be for you. As written about in previous columns, the most important thing you can do before investing in any business is research. On franchising as a business model, on the type of business you’d like to invest in, on your brand of choice, and most importantly, on yourself. But how do you go about it and what resources are available to you? Franchising in Australia is worth an estimated $131 billion in annual revenue to the Australian economy, which is a sizeable portion of GDP, and something the Government takes seriously. As such, it is a regulated way of doing business. The Franchising Code of Conduct (the Code), monitored by the Australian
12 Business Franchise Australia and New Zealand
Competition and Consumer Commission (ACCC), ensures that while Australia is the most regulated place to franchise on the planet, it also boasts best practice and therefore the most fertile breeding ground for franchisee success in the world.
What should you know before signing up? The previously mentioned Franchising Code of Conduct, while heavy source material, is essential reading before committing to a franchise business. By gaining an understanding of the Code, you will be well placed to ask the right questions during the recruitment process. It is essential you understand the mechanics of a franchise agreement and exactly what you’re signing up for. Research from the Asia Pacific Centre for Franchising Excellence at Griffith University last year cited a lack of contractual understanding as one of the key reasons franchisees fail. If the Code is too much to digest at the beginning, Griffith have developed a free
“Owning and running your own franchise business can be very rewarding, but it can also have tough times.”
online franchise pre-entry education course. Consisting of five modules and sponsored by the ACCC, this course is a key part of any prospective franchisee’s due diligence. You can find the course at www.franchise.edu.au.
What else do you need to consider? Once you’ve decided on the kind of business you’d like to own and the level of investment you’re prepared to make, having the support of loved ones is very important. Owning and running your own franchise business can be very rewarding, but it can also have tough times. It is very important to have supportive loved ones to help you do your best; and to
provide support if things do get tough, so you can have the tenacity to work through the rough times.
discuss their experience with the brand and get a feel for what day-to-day life would be like.
What should you ask for from a potential franchisor?
Attending events like this month’s Franchising and Business Opportunities Expo in Sydney provides an excellent opportunity to ask those questions face to face. Should you be in a position to attend, the FCA strongly recommends visiting as part of your initial research and due diligence.
Apart from the obvious, like investment amount and inclusions, length of term and training, you will also need to know renewal arrangements, end of term obligations, territory restrictions and marketing plans. This is by no means an exhaustive list. The pre entry course mentioned features a module on questions to ask franchisors. A good franchisor will also put you in touch with multiple current franchisees so you can
Start your research today! Web: www.franchise.org.au
Business Franchise Australia and New Zealand 13
Franchise Association of New Zealand
Conference 2014 10 - 13 July Millennium Hotel & Copthorne Hotel Queenstown
This year’s Franchise Association Conference will be returning to Queenstown, the location for 2009’s highly acclaimed conference, ‘Strategies for Success’. Queenstown is one of New Zealand’s top visitor destinations and sits on the shore of the crystal clear Lake Wakatipu set among dramatic mountain ranges. If this becomes your first visit to the region you’ll soon understand its attraction. The Millennium is the main conference hotel and is set against the stunning alpine
backdrop with the Copthorne, just across the road, providing some alternative accommodation and some conference functions, with many rooms overlooking the lake. The Franchise Association of New Zealand’s conference will bring together the franchise community over three days to: network, exchange ideas and interact with other systems and service providers; catch up on industry trends and hear what experts in the field of franchising have to say. Conference registration will include invitations to three social events where delegates can relax, recharge and enjoy their surroundings. An array of talented speakers will be led by the opening session presented by well-known television personality, clinical psychologist and author, Nigel Latta. Afternoon workshops provide delegates with an
14 Business Franchise Australia and New Zealand
opportunity to drill down on some specific areas of interest. Smaller groups made up of like-minded individuals, facilitated by an industry expert; provide a valuable insight into the world of franchising. As an acknowledgement to the previous Queenstown Conference, this year’s theme will be ‘Pathways to Success’ and will take delegates on a journey through the opportunities and issues to be faced at the different stages of the development of a franchise – definitely one not to miss! The natural beauty, collegial environment, and inspirational speakers will combine to ensure a conference that is vital dynamic and must do for those in franchising and registrations will soon be available online at the FANZ website www.franchiseassociation.org.nz
Select Committee recommends pro franchise changes to Part 6A of the Employment Relations Bill The recently released report from the Transport and Industrial Relations Select Committee contained significant amendments to the initial proposal as far as the ‘Associated Persons’ clauses are concerned. Following strong lobbying by FANZ, the initial intention to include the persons employed by the franchisor as well as the franchisee when assessing the definition of a small business (i.e. employing fewer than 20 people) has been changed to one where franchisees who bid for and subsequently manage contracts should enjoy the same exemptions as any other small business. FANZ Chairman, Ian Robertson thanked all FANZ members who contributed to the campaign through the submissions process and by direct lobbying with MPs and officials. As Ian said, “It’s a fantastic outcome and shows the effectiveness of the Association working on behalf of its members!”
“Conference registration will include invitations to three social events where delegates can relax, recharge and enjoy their surroundings.”
Millennium Hotel
Copthorne Hotel
Business Franchise Australia and New Zealand 15
profile : BO DIE Z 24/7 FIT N ESS CLU B
Your key to wellness With a number of 24/7 gym franchises already available in Australia, how does the ‘new kid on the block’ stand out and make everyone take notice? By offering a unique point of difference with their ‘Wellness Key System’! As well as 24/7 access and no lock in contracts, Bodiez 24/7 Fitness Club gives their clients the patented ‘Wellness Key System’, a virtual personal trainer that records all of the client’s details and then customises a workout each and every time they go to the gym. This is then modified over time to increase the level of fitness. Operating in a popular and fast growing market place, Bodiez 24/7 is all about making health and fitness fun, whilst being available 24 hours a day. With memberships starting at under $2 per day fitness has never been this easy or affordable with other gym franchises often costing twice this. Having proven success with the opening in 2010 of the first Bodiez 24/7 Fitness Club in Ipswich, with over 800 members and continuing to grow, it’s now time to share
“Operating in a popular and fast growing market place, Bodiez 24/7 is all about making health and fitness fun, whilst being available 24 hours a day.” the experience, with the launch of the Bodiez 24/7 Fitness Club Franchise. Purchasing a Bodiez 24/7 franchise will give you a turn-key business. This means from day one, your club is fitted out and stocked with the latest Technogym equipment, all computerised to keep track of an individual’s progress. No specialist experience or knowledge is required, as a comprehensive training program is given to you, although franchisees need to have a Cert iv in personal training or employ a manager that has these qualifications. You and your staff are fully trained and ready to start from the day of opening. On top of this, all marketing strategies are in place and ongoing support is readily available for any questions you may have. All of this, including 24/7 remote camera monitoring, allows you to enjoy a more flexible lifestyle, as you don’t always need to be on site. With an emergency duress system in place clients can be rest assured that help is never too far away, 24/7. Whilst the total cost of investment depends on the exact location and size of the store, prices start from $250,000 plus GST, all inclusive. For that, you’ll get a designated territory with the guarantee that no other Bodiez 24/7 franchise will be able to set up in the same area, latest state of the art equipment, cutting edge integrated technology and advertising and marketing strategies managed by a team of experienced franchisors who are right there with you every step of the way. The management team brings with them over 36 years of proven success and experience within their respective industries. Director Annie Longmuir is ready to guide the franchise roll out for Bodiez Fitness across Australia and then internationally, using her background in importing and exporting. Alongside her is Fitness and Training Director Darren Jolley and Fitout Consultant Stephen Southgate. Darren is a qualified
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personal trainer with extensive knowledge of sport, exercise and fitness and Stephen, while also being an active sporty person heads up the fitout department. He has a wealth of experience in interior design and fit out having run several of his own successful companies. To join this formidable team and become a Bodiez 24/7 franchisee, you need to be self motivated, positive and want to inspire clients to meet their weight loss or fitness goals, while building rapport to facilitate repeat business. If you’re passionate about owning your own business and are interested in joining the next evolution in fitness with a franchise expanding nationally, then contact Bodiez 24/7 Fitness franchise at Franchise Recruitment Solutions on: Phone: 1300 642 575 Email: info@franchiserecruitment solutions.com.au Web: www.bodiezfitness.com.au
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PLANTING THE SEEDS OF SUCCESS
Growing a business can be extremely challenging, and also very rewarding. The key is to strike a balance in all key areas of business that feed the foundations and support growth. I thought as we creep towards another quarter in the year it would be a good time to look at what will help you close some of the
gaps in your foundations, create a smoother ride and create more momentum in your business. For some of you, you may be just starting out on your journey and for others you may have been in business for sometime now. Regardless, these simple principles when implemented may just support you to achieve more consistent results both financial and non financial. Success and continued success starts with planting seeds. Imagine for a moment your business as a freshly planted apple seed. Like your business when it first started, you took the care to choose the right spot for the
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seed to be planted, ensuring it’s in the right place with a good balance between sun and shade. Poking a small hole in the mineral rich and dense soil, you placed the seed ever so gently in the hole and then covered it with more fresh soil. Once covered you then gave it the right amount of water every day.
Success Starts with WHY! Why did you plant the seed? This could also be asked about your business. Why do you do what you do? Why did you get into business in the first place and why do you continue to stay in business? You planted your seed so that over time it would grow and
“It all starts with knowing your why! Without knowing your why, it’s almost impossible to produce consistent and long-term results.”
Let’s continue with our little apple seed…
produce perfectly tasting apples, the fruit you often imagined. The same goes for your business. Every year it’s important to plant new seeds and with the right knowledge, a good balance of attention and action and a bit of work you can produce fruit time and time again. What fruit do you want to produce this year? And what impact do you want it to have? It all starts with knowing your why! Without knowing your why, it’s almost impossible to produce consistent and long-term results. It is also almost near impossible to stay inspired and motivated if you don’t have a strong enough reason why you are doing what you are doing.
As you get up from planting the seed you vividly imagine eating the fruit this plant is going to produce for you and your family as it grows over time. With the right knowledge and a little bit of work, you know you can have an apple tree producing enough fruit for you and your family. Each day you check on your seed, giving it the right amount of water. You wait in anticipation but never lose sight that unless you make the consistent daily effort to feed it and water it, it will never have the opportunity to grow and produce a large amount of fruit. Time passes by and still no sign of any plant let alone fruit. Over time it becomes a young tree and even after a few years it’s still not producing the fruit you had imagined. This is the time that some choose to give up, say it’s not worth the wait and walk away. A business, like any apple tree can take years to produce a large amount of fruit. Watering it, feeding it and pruning it will help it reach full maturity and will begin to produce more and more fruit, just like your business. Doing the right things in the right order at the right time will help your business start to produce consistent revenues, cashflow and
profits. Like some plants, a business may not produce consistent fruit in the first one or two years and some even longer, but over time it will. What do you need to do in your business to get it on track for producing a good amount of fruit this year? If you are not sure take a quick look back at what you could have done better last year. You already have the answers, just more often than not we are just not willing to look at it. It all seems too hard and then we fall into the trap of blaming the economy or the lack of customers or poor positioning or sometimes even the mother in law. The bottom line is there will always be something that could and will impact your business at some stage. It’s about having clarity about your why, taking consistent action every day towards what it is you want, having access to the right people and support to help you achieve the results you desire, assessing and reviewing to determine if your course of action needs to change and balancing the key areas of business to ensure foundations are supporting the continued growth. If you are not sure about your why or what you want to achieve, take out a pen and paper and start writing. Sit under a tree, or on a rock overlooking the water or even shut the
Business Franchise Australia and New Zealand 19
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Tania Allen - Founder, Vision Alliance
“Maximising your potential isn’t that hard, it’s about doing the right things in the right order at the right time.” door in your office and take the phone off the hook for just a moment and write. Imagine your plant growing. What fruit do you want to produce this year? What does it look like for you? How much fruit will there be? Can you taste it? Is it sweet enough? Allow your imagination and your senses to take over. Connecting with what it is you want will help you set a solid course of action in taking the necessary steps to ensure the plant grows and more importantly that the plant produces enough fruit year after year.
Take Consistent Action to Produce Results What actions do you need to take over the course of the next year to achieve what it is you want? Starting with the end in mind work backwards to determine what you want to achieve each quarter and then each month. Breaking it down will help you get clear about what needs to be done each and every day to ensure your business is sure to produce the fruit you want. What resources do you need to help you produce the fruit? Like the apple tree you need a balance between good nutrient rich soil, water and then ongoing pruning and maintenance and food. Your business needs a balance between the right food, the right people, the right actions and, the right amount of pruning. Pruning could be cutting
costs or it could be cutting staff that are no longer contributing or it could be pruning and getting rid of the customers that you have hung onto for so long that just don’t support your business. You know the ones I’m talking about. They pay late, or don’t pay at all and are just not a joy to be around.
Attract Your Ideal Client With this in mind as you are taking time out to get clear about what it is you want to achieve this year, take some time to get clear about who your ideal client is. Who are they? Why do they buy? What do they want? Remembering that people don’t buy what they need, they buy what they want. Once you know who your ideal client is and why they buy your product and service you are then in a much better position to market your services and effectively communicate your message, focusing on the benefits of your product or service and matching the reasons why they buy. Taking a closer look at your ideal customers decision-making process reveals who you really need to be communicating your message to. When I speak with business owners they oftentimes say but I can’t just work with my ideal client and turn everyone else away. No you can’t. Getting off topic for a moment, think back to when you were a child and you had your favourite toy. You played with your
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toy all the time; you gave it more attention than your other toys didn’t you? Of course you did. It didn’t mean you didn’t play with your other toys, it just meant you spent more time playing with your favourite one. The same could be said for your ideal client. Spend more time with your ideal client. It’s the 80:20 rule in life. You can still have your other customers but be sure you spend more time with your ideal client as they are the ones that will produce more for you and your business with less effort.
Plant Many Seeds Just like it’s important to plant many seeds to ensure the right amount of fruit is produced, having multiple lead generation activities working for you and building multiple streams of income is important as the multiple pillars will support you to produce consistent growth year after year. If one seed is slower to grow, the others will support you until it catches up. Maximising your potential isn’t that hard, it’s about doing the right things in the right order at the right time. Make a decision today to get clear about what you want to achieve through the year and commit to planting the right seeds and taking the right amount of daily action to ensure they produce the fruit you desire. Tania Allen is the founder of Vision Alliance and author of Franchise Profits. Vision Alliance is a business growth & franchise consulting firm that helps franchisors and franchisees get more out of business and more out of life. For more information about how Tania and her team can support you contact: Phone: 1300 76 49 20 or 0419 481 203 Email: tania@vision-alliance.com Web: www.vision-alliance.com
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newstores@totaltools.com.au or + 61 3 9261 1900
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FR A NCHISOR IN D EPTH : El l a Bach é
In the skin business
“Joining the Ella Baché family means learning from our inspiring history and contributing to our exciting future. It means you won’t settle for anything but the best.” Pippa, CEO, Ella Baché.
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The Ella Baché story started in 1936 with revolutionary cosmetic chemist, Madame Baché, a modern woman who knew that improving the condition of a woman’s skin could not only improve her overall appearance, it could also unleash her inner radiance. Madame Baché recognised that the standard way of diagnosing skin types by dry, oily or normal was over simplistic. Instead she moved skincare into a new era, where solutions were individually tailored based on the skin’s condition on a cellular level. This philosophy still underpins everything Ella Baché does today. Ella Baché has become a uniquely Australian story thanks to the inspiration of Edith Hallas. Married to Madame Baché’s cousin, Edith brought Ella Baché to Australia in 1954, creating one of Australia’s most enduring and respected skincare companies. Now in their third generation of family ownership, and sixty years since launching a small range of French products, they boast the country’s largest franchise network with their products and services available in over 156 salons nationwide and 35 David Jones stores.
ALWAYS EVOLVING Investing heavily in developing diagnostic tools that are the best on the market and using technologically advanced devices, including TrUView, exclusive to Ella Baché, beauty therapists see below the surface of every customer’s skin to identify skin conditions quickly and accurately. Potential problem areas are revealed so they can be treated long before they surface and become visible to the naked eye and each diagnosis is complemented by a treatment solution that addresses the specific needs of the skin. Employing an Australian team of researchers to create products that cater for the needs of Australian skin and with a belief in natural ingredients and not testing on animals, their search for new skincare solutions is ongoing.
“Comprehensive marketing support is developed to drive customers into your salon. JOIN AN ESTABLISHED BRAND The beauty industry is ever changing and exciting, and the rewards are abundant. Helping customers glow with a newfound confidence is an endless thrill, and the opportunities to keep learning and developing are boundless. When you’re part of the Ella Baché family, these rich benefits and opportunities are revealed in all their glory. There’s no secret to the enduring success of Ella Baché. In essence, the brand reflects the traits Australians tend to value and admire most, like authenticity, curiosity, hard work and confidence. They’re also a family affair –taking care of each other. As a franchise owner, you can expect the ongoing support and training you need to create the vibrant new lifestyle you want. If you love all things beauty and skincare and you’re committed to continuous improvement, you’ll fit right in. Ella Baché are leaders in skincare products, salons and education in Australia because
they attract leaders. Their business has always been based on understanding and respecting individuals, which means they get the best out of their own people. Every person within the network is valued and recognised as being one of their most valuable assets and in order to stay competitive they need to stay at the cutting edge, and it’s their people who keep them there. Most of the people who run Ella Baché franchises were clients who loved their experiences with them and jumped on board. While many are qualified beauty therapists, many are not. What unifies them is a belief in the philosophy, a readiness to learn, and a desire to change their lifestyle. Does that sound like you? Franchise opportunities don’t come more nurturing than this. Ella Baché are in the business of providing women with a look, feel and experience that’s second-to-none, whether they’re customers or franchisees.
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FR A NCHISOR IN D EPTH : El l a Bach é
“The Ella Baché approach is tried, tested and proven, and they’re eager to share it with you if you’re as committed.” of top salons and selects individuals in each state for their performance and commitment. 6. Business Benchmarking
The family oriented nature inspires salon owners across the network to share business and management intelligence, performance tips, best practice protocols and margin strategies to achieve greater returns. You have the opportunity to share your challenges with fellow salon owners, to learn how they’ve coped in similar circumstances and share your solutions to help your peers grow
7. Annual Conference
Each year, salon owners are offered the opportunity to attend the conference which offers business tools to improve operational efficiency, ideas to inspire business development and opportunities for professional growth through networking.
8. Franchise Advisory Council
SUPPORT AND TRAINING Your success is Ella Bache’s success, so you are provided with an array of market leading tools, resources and services to give you a boost wherever you need it.
live web updates, check user statistics and send e-newsletters directly to their subscribers list. 3. Media Centre
1. Marketing Support
The Ella Baché brand is embedded in the Australian beauty landscape, it’s trusted, respected and well known. You receive comprehensive marketing support, including; top line brand awareness campaigns, social media toolkits, monthly promotional plans, localised marketing material, cooperative advertising and generous rebate programs.
2. Virtual Salon Website
Ella Baché is the first and only company to offer salons a new and exciting way to communicate with their customers. Virtual salons are personalised websites that allow customers to browse your menu of services, check out your special offers, book an appointment online and more. Owners are provided access to make
An easy to access online location for all franchisee services, online resources and business management tools, including manuals, advertising templates, image libraries, training videos and more.
9. Training
One of the many benefits of owning an Ella Baché salon is the ongoing training that you and your team will receive. An energetic and expert team of field trainers are responsible for coaching and training your salon team so they deliver superior service and treatments. As a franchisee you will have access to regular in-salon training that focuses on your team’s individual training needs and, to keep your experienced beauty therapists engaged, they are also offered advanced skin seminars.
As a new salon owner, you will be provided with all the training support you need to prepare your team for a successful opening day and a vibrant future.
4. Online Retailing
A rebate is provided to salon owners for online sales, with customers directed into salons post-purchase.
5. Recognition
Passion and hard work are prized at Ella Baché, who love to see beauty therapists, salon teams and salon owners glow with pride when they’re recognised for their outstanding achievements with incentives like international travel, training and bonuses. The annual ‘Ella Awards’ is a glamorous event that applauds the performance
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Communication is key to maintaining a healthy and constructive relationship with salon owners. The Franchise Advisory Council promotes open and two-way interaction, and actively seeks out ways to improve the transfer of information and promote all the support that’s available to you.
10. Education
The Ella Baché College of Skin & Beauty Therapy is among the most highly respected education providers of its kind in the world. 98 per cent of graduates find employment within the industry. Therapists can gain qualifications and units of competence for new procedures and techniques through ongoing postgraduate training. It is also an invaluable asset to salon owners in fulfilling their salon staffing requirements. With a state-of-the-art facility in the centre of Sydney and over 50 years of training and education, it’s the best place to learn to become a beauty therapist. The college is nationally and internationally accredited as a Registered Training Organisation and it’s also an Educational Sponsor of the Advanced Association for Beauty Therapists (AABTH), the beauty industry’s premier professional beauty association. They even offer a distance education program called Stellar Learning, which allows pupils to study off-campus and at their own pace.
A GLOWING FUTURE When you join the Ella Baché family, you are provided with a dedicated Business Manager
“The contemporary look and feel of the salons plays an important role in the perception Ella Baché customers have of the brand.” to give ongoing support and training, as well as business coaching, planning support and guidance on how to effectively market your salon. Your targets will be easier to meet and your business will be easier to manage with their continued motivational support and advice, which includes in-salon business coaching; regular face-to-face business planning support; help to create and implement marketing plans; in-salon sales training and advice on promotional activities and help to maintain high standards in customer service, presentation and practice standards with independent benchmarking
SUPERIOR SALONS The contemporary look and feel of the salons plays an important role in the perception Ella Baché customers have of the brand so, not only do they offer the ultimate in salon design, they also assist you to bring it to life at your site. From your shopfront, to your waiting area and treatment rooms, you are guided through the salon design process so your appearance matches the superior experience awaiting the customer inside. With a recommended salon size of 85sqm, ideally consisting of four cubicle treatment
rooms, Ella Baché also ensure that your site is compliant with all Australian standards and regulations. In-house design support is offered to assist with initial site measurements, preliminary concept and drawings with a unique and attractive conversion model in place for nonElla Baché salon owners looking at joining this prestigious and profitable brand.
MAKE IT HAPPEN The Ella Baché approach is tried, tested and proven, and they’re eager to share it with you if you’re as committed to providing resultsdriven skin care and beauty therapy as they are. The path to becoming an Ella Baché salon owner is packed with considerations and decisions, and they’re with you all the way to answer questions and help you decide if salon ownership is right for you. If you’re passionate about skin and interested in salon ownership, visit the website to learn more about franchising opportunities. Web: www.ellabachefranchise.com.au
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Every Business
Starts with a Dream Every business starts with a dream; however every dream doesn’t necessarily become a business. At the outset the dreamer needs to establish if they are the right person to turn that dream into a reality. Do you have the skills and qualities required to run your own franchise business?
Purchasing a franchise and running your own business may be one of the most exciting things you ever do. It can offer lots of potential rewards however you need to understand the risks involved in running your own enterprise, both financially and personally. Ask yourself if you have what it takes to be your own boss; why do you want to be in business; is this really for me? Above all you will need passion and a love for the franchise business you choose to get
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into. Then, there are certain attributes that someone starting their own business ideally has: • risk appetite - you should be comfortable with a certain level of business risk; • numeracy - while you don’t need to be a mathematical genius, you do need to understand numbers and be confident in dealing with cash flow; • aspirations - without a boss to guide you,
“Planning will help you to test your ideas and decide on strategies to reach your goals.“ you will need to be self-motivated and have the ability to inspire and lead others; • resilience - because ‘the buck stops with you’, you need to have the stamina and persistence to work the hours needed; and • innovation – it will be up to you to anticipate potential problems or opportunities, to think logically about those situations and look for successful outcomes. Small business owners and franchisees need to understand or be willing to learn about day-to-day business management, planning, and sales and marketing. There are short (and longer) courses you can take to acquire any skills you may be lacking. Don’t forget that one of the best skills is to ask questions and seek advice. One of the benefits of buying into a franchise system is that the franchisor often provides regular training opportunities for its franchisees. However, don’t just rely on the franchisor. Find an accountant, lawyer and bank manager that you trust and respect, and make sure you research material on how to manage your business – you may be surprised how much you already know and how many skills you already have, though you should always be willing to learn more.
• do you know why your customers would choose to buy from you rather than your competitors; • what are the opportunities for the business, and what strengths will help you make the most of those opportunities; • what weaknesses may potentially threaten the business; • do you have sufficient funds to pay for opening costs and cash flow needs for, say, 12 months; • do you have access to more funds if you need them; and • how much money and time are you prepared to risk on this business? This list is not exhaustive but may help you get started. Take time to develop your business plan, outlining your goals, your strategies, your prospects and how you will achieve them. Each business will have its own unique plan so while it is good to work from a template, discard any headings that don’t specifically apply to your business. Don’t treat it as ‘homework’ but as a serious analysis of how your business will work. Planning will help you to test your ideas and decide on strategies to reach your goals.
Whether you are getting into your own business because you have identified a gap in the market, or you simply want to be your own boss, it is good practice to flesh out your ideas on paper. Many small business owners fail to write business, marketing and financial plans which can lead to the business under performing. Your first job then, is to gather sufficient information to help you write these plans.
The nature of markets and consumer needs change rapidly, and planning can help you to recognise potential problems that may require external sources of information and assistance. While it cannot predict change, planning can help you recognise changes more quickly enabling you to adapt. Planning can also help you to avoid unexpected crises and achieve smooth business growth.
Ask yourself these questions:
• does the franchisor have similar goals and values to you, because you will need to work effectively together;
Your plan is your roadmap to success. It helps you to regularly monitor your results against a set of goals and performance standards and, if you find yourself taking a detour away from your objectives, your business plan will help you find your way back to the main road.
• do you know who your customers are, and who your competitors are;
Above all, keep in mind your purpose for going into the business. At the end of the
• do you fully understand the franchise business you want to get into;
Sharen Verrenkamp - State Business Development Manager for Franchising, Westpac
day, what is it that you want to achieve out of running a business? For many this will be wealth creation to provide a lifestyle. Remember though that in a business the ‘wealth’ is tied up in the business until such time as the owner decides to exit that business. It is therefore critical to have a strategy for how that ‘wealth’ is going to be maximised and then extracted from the business at that time. Anyone going into a new business or franchise should always do so with an ‘end’ in mind.
THINGS TO REMEMBER: Your plan key ingredients: • Direction: A business plan should establish your business’s priorities. Don’t try to do everything, and don’t try to please everyone. Be specific about what you want to achieve. • Milestones: A business plan should detail objectives to be achieved with deadlines, budgets, resources available, standard to be achieved, measurements, and what success looks like. This will help keep you on track. • Cash flow: Cash is the lifeblood of every business and is different to profit. A business plan should show month by month projections of the cash needed to operate and compare actual cash flows regularly to help ensure it has the cash available to survive. • An ‘end game’: A business plan, even for a new business, should also address what the owner eventually wants to achieve from the business and how that will be realised.
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While the prospect of a new business or franchise is always exciting, any foray into the business world should be approached with caution. Information will be your best friend so find out as much as you can about the market you will be operating in, the franchisor and brand, business management, and your own skills and strengths. The Davidson Institute’s ‘Ready for Business’ guide may be a useful starting point as you embark on your journey. Additional insights into business financial management are available from the Davidson Institute. The Davidson Institute, a Westpac initiative, is committed to providing financial education that will make a real difference in helping Australian’s achieve their financial goals. Our education is designed for businesses, individuals and not-for-profit organisations, offering a comprehensive range of topics from cash flow to business planning and superannuation to investment. As part of Westpac’s commitment to
“Whether you are getting into your own business because you have identified a gap in the market, or you simply want to be your own boss, it is good practice to flesh out your ideas on paper.” building long term sustainable businesses and communities, the Davidson Institute has developed a range of financial and business education, insights and tools that may be helpful in your business. Visit www.davidsoninstitute.edu.au.
Westpac Franchising works with over 60 National Franchise brands and their state based franchise specialists drive local strategy as well as manage the training and development of specialist local bankers.
Sharen Verrenkamp is the State Business Development Manager for Franchising at Westpac with over 25 years’ experience in Banking & Finance in Retail and Commercial Banking. Sharen holds a Bachelor of Business and has over 10 years’ experience working in industry specialisation and the franchising sector.
Westpac is well regarded in the franchise sector and has built a solid reputation through its support and commitment to franchise brands over many years.
Sharen is also responsible for monitoring the Bank’s franchise banking portfolio and the ongoing approval and reviews of accreditation requests.
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For further information contact: Email: sverrenkamp@westpac.com.au Web: www.westpac.com.au
CHANGE YOUR
WORK/LIFE
BLEND
BECOME A FRANCHISEE WITH US Email: franchise@hudsonscoffee.com.au Phone: (03) 8631 7700 www.hudsonscoffee.com.au/franchising Business Franchise Australia and New Zealand 29
profile : K w i k K er b
Start ahead of the game “You are never on your own, head office is only ever a phone call away.” product available and is even more profitable for Kwik Kerb business owners. Kwik Kerb business owners start their new business already well ahead of the game. All kerbing equipment comes in a bright red specially designed trailer, which acts as mobile advertising. Just being seen driving around creates Kwik Kerb business. A unique machine called the ‘Edgemaster’ is the cornerstone of this truly innovative business system.
For more than 25 years, Kwik Kerb have been the world leaders in domestic continuous concrete edging. With a strong market share, it would be easy to sit back and enjoy the success and reap the rewards; however, Kwik Kerb is always one step ahead, offering the very best to its business owners and customers. During the 1980’s various styles of plain and coloured kerbing were being produced by Kwik Kerb business owners. Kwik Kerb quickly began to innovate and develop new and previously untried processes which resulted in developing a one-day process for stamped and patterned kerbing - the famous Eurostyle® range. Unmatched by any other – Eurostyle® is the premier concrete edging product in the world. Kwik Kerb then added the brand new Eurobrick® range of kerbing, which creates an authentic brick and mortar appearance. Eurobrick® is currently the hottest kerbing
The Edgemaster can extrude concrete edging on site at up to 60 metres per hour, with experienced Kwik Kerb operators able to install 100m or more in a day. This efficiency allows for an excellent earning potential for the business. Combining the unique Edgemaster machine along with a complete business system containing all the equipment, promotional materials plus training, you benefit from using the unique and proven system, all designed to make you, the business owner, successful from day one.
TRAINING AND ONGOING SERVICE The comprehensive training course has been successfully developed over the last 25 years and ensures that new owners are ready to lay kerbing from the first day, meeting the high standards that customers expect from the Kwik Kerb name. Some of the areas covered in the training include quoting, marketing and advertising techniques, hands-on operation of all machinery, service and maintenance of tools and machinery and presentation and customer service skills, You are never on your own, head office is only ever a phone call away. Plus, you also
30 Business Franchise Australia and New Zealand
have access to an online Operator Forum where you can get technical advice from other Kwik Kerbers around the world and access exclusive marketing and technical documents. Kwik Kerb is a licensed business opportunity, not a franchise. What this means to the business owner, is that once the licence is purchased, the business is yours. There are no ongoing royalty fees and no restrictions on territories. You are free, without boundaries, to expand your business as you see fit and keep all the profits. Since its inception, Kwik Kerb has grown to more than 300 business operators in Australia and all Kwik Kerb equipment is designed and manufactured here in Australia. This is then distributed internationally to the thousands of Kwik Kerb business owners established in countries around the world.
INTERESTED? Win your own Kwik Kerb business Kwik Kerb are giving one lucky reader the opportunity to own and run their own business and achieve their own financial success, AT NO COST. Marketing Manager, Alex Colls explains, “We are giving away, free of charge, a brand new fully equipped trailer, along with the same materials, training (plus accommodation if inter-state) and support that someone who purchases a Kwik Kerb business would receive.” If this sounds like your dream business, make sure you enter the competition by the closing date of Friday 19th September. To contact Kwik Kerb: Phone: 1800 773 231 Web: www.kwikkerb.com.au
WIN
Y T I N U T R O P P AN O E M I T E F I L A OF
Kwik Kerb will be giving away a full new Business Package to one lucky reader of Business Franchise magazine. THE BUSINESS PACKAGE WILL INCLUDE: s All machinery s All tools s All marketing material s Sign-written box trailer s Comprehensive training s Flights to and from training* s Accommodation at training* s Ongoing service from Head Office To enter please email giveaway@kwikkerb.com.au with the subject line ‘Kwik Kerb Giveaway’. Please attach a one page presentation outlining why you would make a great Kwik Kerb operator and small business owner, including any relevant work history/ experience. Also tell us why you would be interested in owning a Kwik Kerb Business and how you plan to make it a success. To be eligible you will also need to include your:
s s s s
FULL NAME ADDRESS PHONE NUMBER EMAIL
We look forward to viewing your presentation.
Entries will close on Friday 19th September with the winner to be announced in the Nov/Dec edition of Business Franchise magazine. *Note: The flights and accommodation aspect of the Giveaway will be included only if the winner is from outside a reasonable distance to travel by car to training. This decision will be at the discretion of Edgetec International Pty Ltd.
Business Franchise Australia and New Zealand 31
FR A NCHISEE IN ACTION : LISTEN TO RE A D
WHAT A REWARDING WAY TO EARN A LIVING!
MAKe A REAL DIFFERENCE IN THE LIFE OF A CHILD OR ADULT WITH READING DIFFICULTIES
“The Listen To Read Multi-sensory program uses a unique reading curriculum combined with special Sound Therapy filtering.” Maria Meagher, owner of the Listen To Read franchise in the Southern Highlands of New South Wales which services the areas of The Southern Highlands, Campbelltown and Goulbourn, loves her work with Listen To Read and is glad she made the decision to take a change of direction in her teaching career. In late 2011 Maria decided to move from the Eastern Suburbs of Sydney to Mittagong in the beautiful Southern Highlands, a one and a half hour drive from Sydney. It’s said that moving house is one of life’s stresses, how about buying and starting a business in an area you are not familiar with as well? “I enjoyed the challenge and spent a lot of time laying the ground work for the business in the latter part of 2011. I took on my first students in 2012,” explains Maria. Maria had been teaching in the area of Special Needs for about 12 years and was always passionate about improving the literacy of her students. She had used a few other reading programs throughout her
32 Business Franchise Australia and New Zealand
LISTEN TO READ IS A GROUND BREAKING PROGRAM WHICH IS CHANGING THE LIVES OF STRUGGLING READERS A chance meeting several years ago of three independently successful women, Catherine McLennan, Rafaele Joudry and Helen Walden, has resulted in the creation of a world first Australian owned and developed, multi-sensory reading program known as Listen To Read. The Listen to Read program is gaining momentum in the quest to find real answers for the estimated 46 per cent of Australians who have some difficulty with reading tasks. Listen To Read is an app based reading program which combines two specialised programs.
“Listen To Read enables me to do what I love. I can effectively change a child or adult’s life in matter of weeks.” career but when she saw the Listen To Read program she knew she wanted to be involved. The Listen To Read Multi-sensory program uses a unique reading curriculum combined with special Sound Therapy filtering. The program is delivered via an app for iPad or computer. The curriculum focuses on intensive phonics instruction and advanced word attack skills. The audio lessons are recorded using special Sound Therapy high frequency filtering, which stimulates the neural pathways to retrain the auditory centres in the brain. This improves memory and concentration and enhances the development of reading skills through intensive auditory stimulation. Franchisees, like Maria, use the app in weekly tuition sessions working with up to three students in a class at a time. The progress of each student is closely monitored throughout the average 12 week program. Students purchase the app based program to use at home as well and are expected to do 30 minutes of active listening a day to ensure their success. Extra passive listening, whilst going to sleep for example, aids the development of reading skills through extra stimulation of the neural pathways. Franchisees can also sell the app to interested clients who cannot attend weekly tuition sessions and/or choose to complete the program as a home based study program.
When asked what she enjoys about running her Listen To Read franchise, Maria explains it in this way; “Throughout my teaching career I have always gravitated towards and enjoyed teaching small groups of students. Listen To Read enables me to do what I love. I can effectively change a child’s or adult’s life in matter of weeks. It is extremely rewarding to watch their reading progress rapidly, however witnessing the transformation in confidence and self esteem is what I enjoy the most.” After reading many testimonials from satisfied clients, the founders of Listen To Read, Catherine McLennan, Rafaele Joudry and Helen Walden were not surprised that Maria was nominated in the category of ‘Excellence In A Small Business’ in the 2013 Southern Highlands Business Awards For Excellence. “Maria embodies what we are looking for in our franchisees, she is passionate about helping struggling readers, has a caring nature, is highly organised and is able to follow our policy and procedures very effectively. She understands that being successful as a franchisee is about getting out and promoting herself in the local area. We look forward to extending Listen To Read in 2014 to other states in Australia and hope to attract many more franchisees who possess the qualities that Maria does,” explains cofounder Catherine McLennan.
Firstly the Listen to Read Reading Curriculum teaches through a combination of intensive phonics, advanced word attack skills and some whole word approaches. The Sound Therapy component is a unique listening system based on the discoveries of ear specialist Dr. Tomatis. It uses high frequency sound to stimulate neural pathways to retrain the auditory centres in the brain. This intensive auditory stimulation improves memory and concentration and enhances the development of reading skills as the reading jigsaw is pieced together. The voice and classical music in the program which supports the phonics framework are recorded with special high frequency Sound Therapy filtering. The program employs auditory, visual and kinaesthetic (body awareness approaches) throughout to teach the brain to decode unknown words. A detailed workbook reinforces the concepts of the program and is a great way for franchisees and parents to monitor improvements throughout the administration of the program. At present the Listen To Read Program is available in New South Wales through weekly small group classes in franchised areas. At present we have classes in the Sutherland Shire, the St. George area, The Southern Highlands and the Illawarra.
Option 1: Franchisees conduct a thorough assessment to determine problem areas which need development.
Business Franchise Australia and New Zealand 33
FR A NCHISEE IN ACTION : LISTEN TO RE A D
“This intensive auditory stimulation improves memory and concentration and enhances the development of reading skills as the reading jigsaw is pieced together.” individuals and schools show students making gains of up to two years in their reading age in just 12 weeks. The client (usually the parent) is informed regarding findings of the assessment. Recommendations are made and discussed. Commitment is given. Student is signed up for weekly tuition classes at the earliest opportunity and the app is purchased for use in classes and at home for homework purposes. Classes begin and the student is closely monitored by a trained teacher as they progress through the 12 week program using the app. Homework and revision is given by the teacher at the end of each lesson and discussed with parent.
The founders of Listen To Read are keen to expand in 2014. “We are looking for highly motivated people with either a teaching or business background to help us make this program readily available to all those who need it.” Do you: • Have a teaching qualification or degree or wish to engage teachers to work in your franchised business? • Still love teaching but want to be your own boss? • Have a passion for education and literacy? • Believe in using the latest technology to help make learning easier?
Student is reassessed to ascertain overall reading age improvement at the end of the course.
• Want to work from home, start part time and build the business up?
Option 2:
• Highly rewarding work
Parents choose to purchase the Home Based Program and supervise the lessons for the student themselves.
• Low cost entry
Franchisee makes several support phone calls throughout the 12 week course. There are two income streams for franchisees: Tuition Fees and App sale commission. Early trials of the program with both
The Listen To Read franchise offers: • Generous franchise boundaries • High market demand • Fast return on investment • Ongoing support from Head Office • Part time staff when you get busy • Running your business part time or full time
34 Business Franchise Australia and New Zealand
• Highly structured program delivery (all the work has been done for you) • An experienced, committed team • Excellent Program results (we offer our money back guarantee with confidence) • A great team of committed, passionate people, and • A comprehensive Policy and Procedures Manual Come and join us. Help all those who struggle with reading. The work is enjoyable, stress free and exceptionally rewarding. It really does feel good to make a difference in the life of a struggling reader! We are extremely passionate about our work and want to find others who are also passionate about helping those who struggle with reading. Let’s make Australia, the lucky country, the literate country as well All franchisees are allocated an exclusive territory and are given initial and ongoing training in the delivery of the program, and in the policy and procedures for running an effective franchise For more information contact Catherine McLennan: Phone: 1300 473 234 (1300 4 READING) Email: catherine@listentoread.com.au Web: www.ListenToRead.com.au Program enquiries should be directed to 0410 618 472
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profile : OCE A N M ASTER
MASTERS OF THE SEA ‘food’ With a history spanning 30 years, Oceanmaster, which is famous for fresh cooked fish and chips, has been a successful and highly rewarding franchising system.
“A profitable, simple & smart turn-key operation for the astute franchisee.”
Following the recent re-launch, which has revamped the entire look and feel of the business, Oceanmaster are set to cause a storm. General Manager, Gerry Texeira explains more about how Oceanmaster allows you the flexibility to work ‘ON’ your business, rather than ‘IN’ it! “One of the unique features of the rebranding is the ‘ARMS’ system (Active Remote Monitoring System). The ARMS system allows you to monitor your business, using remote cutting edge technology via a computerised integrated IT closed circuit system. “Using up to 16 cameras within each store, you can see your shop and staff in ‘real time’ via your Smartphone or computer. So, as long as you have access to the internet, you can monitor your business at ARMS length... from anywhere in the world!” “As well as acting as a security monitor, the ARMS’s system also records all transactions as they are made... in ‘real-time’ allowing you to maintain inventory control minute by minute.” Head office also receive this data to assist and also create sales reports which is then sent to you via email, whilst comparing to historical data in order to identify any potential for increased profitability.
The Ocean Master franchisee New franchisees must share the Oceanmaster vision, which focuses on constant improvement and solid positive growth. Any potential new franchisee will not only have an open and positive attitude, but also have a natural drive and be hungry for vast personal success. You must be business minded and understand the concept of owning multistores (a minimum of three to start with).
Put simply, Oceanmaster are looking for individuals who recognise the difference between working ‘IN’ their business, rather than working ‘ON’ it. Gerry adds, “Once your first store has been set up, Oceanmaster will assist in the funding and development of your additional stores, which will be expected to happen within the first 6 to 12 months.” “Head Office manages the complete store setup right up until opening. This includes hiring of staff, on-going training, how to manage your stores remotely and more.” “By following the plan of owning at least 3 to 4 stores, it can place you on target to comfortably achieve a six figure ‘net’ semi-passive income from your investment of approximately $350,000 - $450,000 per store.”
Freshly cooked With all food cooked fresh to order, plus their unique two stage cooking process using their unique ‘Flash Seal’ method, Oceanmaster stands head and shoulders above the rest. “With the first stage, the fish is dipped into higher temperature oil. This seals the batter around the piece of fish/seafood into a pocket so that when it’s dipped into the second oil,
36 Business Franchise Australia and New Zealand
at a lower temperature it cooks the seafood in its own juices. So in effect, it’s being steamed inside in its own juices,” explains Gerry. Along with fresh healthier alternatives added to the menu, like; salads, lean burgers, etc., Oceanmaster prides itself on continual improvement of their premium quality products which caters to all tastes.
‘ON’ it, not ‘IN’ it! Working ‘IN’ your business does not allow you the time or the opportunity to stand back and really see what your business needs. You’re just too busy being ‘hands-on’ to be able to attend to your business’ real needs. Instead, working ‘ON’ your business allows you to literally see what’s going ‘ON’, to make improvements required to maximise your business’ potential. Via the ‘ARMS’ system and its support structure, Oceanmaster gives you the potential to reach your ultimate goal and achieve the business success you really want... which ultimately, is the reason for any such venture. For further information contact: Phone: 1300 OCEANMASTER (623266) Email: info@oceanmaster.com.au Web: www.oceanmaster.com.au
Work ‘ON’ your business, rather than ‘IN’ it!
Use cutting edge technology Rewards and Coupons Achieve maximum profitability
Semi-passive income
Solid positive growth
...and more
Oceanmaster allows you the flexibility to work ‘ON’ your business, rather than ‘IN’ it using the unique ‘ARMS’ system (Active Remote Monitoring System). The ARMS system allows you to monitor your business, using Rewards and Coupons remote cutting edge technology via a computerised integrated IT closed circuit system New franchisees must share the Oceanmaster vision, which focuses on constant improvement and solid positive growth. With the investment of your first store, Oceanmaster gives you the potential to reach your ultimate goal and achieve the business success you really want.
s 100% AUSTRALIAN s UNIQUE TWO STAGE COOKING PROCESS s WORK ON YOUR BUSINESS, NOT IN IT s MAXIMISE YOUR BUSINESS POTENTIAL
Contact us on 1300 OCEANMASTER (623266)
www.oceanmaster.com.au Business Franchise Australia and New Zealand 37
FR A NCHISOR IN D EPTH : CREM A ESPRESSO
Sydneysiders enjoy their holiday favourite Crema Espresso has always been about the coffee, since the opening of their first store in 2005 in Gold Coast holiday hotspot Main Beach, Queensland to the latest opening at Westfield Parramatta, Sydney.
With a focus on providing premium coffee and light meals, Crema Espresso Managing Director, Antony Forbutt explains why this franchise system is enjoying exponential growth and looks forward to an exciting 12 months ahead. “We are in a period of sustained growth and have recently branched out from our home base on the Gold Coast with stores opening in Brisbane, regional Toowoomba as well as our very first store in Sydney, based at Westfield, Parramatta. “As we use only the highest quality coffee beans and make our coffee using the best
38 Business Franchise Australia and New Zealand
equipment, it follows on that we only select the very best locations for our franchisees.” With stores opening in Indooroopilly, Mackay, Garden City and Carindale, Crema Espresso are targeting extremely profitable, premium locations often within sight of Myer, David Jones and designer stores. With 16 stores already in the system, all to be open by Christmas, now is a good time to join an established, award winning Gold Coast favourite as they branch out interstate, taking this favourite amongst holiday makers and locals alike national.
Why Crema Espresso? Crema Espresso’s exclusive coffee blend was developed from testing and comparing different blends from around the world. Eventually the perfect balance and flavour combination was decided on and it quickly became a favourite with coffee drinkers. Antony explains, “The blend has consistently medalled in the CSR Golden Bean Competition and really enforces the company slogan it’s all about the coffee. Our focus
“As well as quality coffee, Crema Espresso also offers a fresh and healthy menu that has been developed based around customer demand.”
is on ensuring that we only serve the best quality coffee available. “Due to the rise in popularity of quality coffee over the past few years, people have come to know the difference between a great cup of coffee and a poor one. We grind the beans per individual cup, rather than in large batches which ensures that our customers always receive the freshest coffee.” As well as quality coffee, Crema Espresso also offers a fresh and healthy menu that has been developed based around customer demand. “People wanted fresh meals that they could eat while catching up with friends and family. We don’t do deep fried foods, and provide premium options such as salads and deluxe sandwiches, as well as a breakfast menu, all of which are value for money compared to other coffee houses,” he said. The stores have been specifically designed to shy away from the traditional coffee house encompassing their dark wood décor and predictable food, with bright modern interiors, incorporating lots of light to catch the shopper’s eye and entice them inside to experience a relaxed, sophisticated and modern environment.
Franchise opportunities It’s an exciting time for the Crema Espresso family,” says Antony. “We’re looking for people with the skills and passion to want to build their own successful business, and we’re selective about who will suit our franchise model.
“It’s important that everyone in the franchise network is passionate about the business,” he said. “Crema Espresso franchisees are the heart of the operation. They are the face of the brand and work on the front line of the business. Each store is encouraged to have staff front of house, greeting customers and getting to know them on a personal level. Our customers are not just numbers but considered friends, and this brings them back day after day. “With this in mind a Crema Espresso franchisee must be dedicated, with a true drive and ambition to succeed. Running your own business is a time consuming job, so having support from family and friends has proven to make the transition smoother.” No experience or qualifications is necessary for potential franchisees but prior experience managing staff and an outgoing personality is beneficial. “We’re not looking for baristas, or cooks, that experience can be employed into the business. Rather, we are looking for people who know how to manage a business well,” said Antony.
Training and support Each Crema Espresso franchisee owns an independent business. The franchise system ensures each franchisee works in conjunction with other franchisees as the health and
prosperity of each business strengthens the Crema Espresso brand and in turn this benefits each franchisee. Franchisee success means greater marketing and advertising power, more brand awareness and market penetration, new and improved systems, and more team members to share knowledge, ideas and strategies. The Crema Espresso franchise offers you all possible support including comprehensive training, ongoing mentoring and business advice. Once a potential franchisee has been accepted to enter into the Crema Espresso network, a comprehensive business plan must be prepared prior to signing the franchise agreement. In return for the franchise fee Crema Espresso provides certain services. These include: • Initial screening and selection of the franchisee. • Site analysis, selection, negotiation and acquisition assistance. • The very valuable Crema Espresso trade mark and trading name. • Access to the management and product systems developed by Crema Espresso. • A four week Crema Espresso training program.
Business Franchise Australia and New Zealand 39
FR A NCHISOR IN D EPTH : CREM A ESPRESSO
“We grind the beans per individual cup, rather than in large batches which ensures that our customers always receive the freshest coffee.” • Store design. • Access to Crema Espresso unique coffee bean blend. • Planning, construction and management of the total store fit-out. • Assistance with initial staff requirements and recruitment. • Assistance with opening promotion planning. The franchise fee also gives the franchisee an exclusive trading territory. A licence fee of seven per cent of sales is remitted weekly, with a two per cent national advertising levy. The weekly licence fee is the income which enables Crema Espresso to continually provide the ongoing benefits to franchisees participating in the chain. These benefits include: • Marketing programs. • Business Management and systems support. • Technical advice. • Assistance with initial staff training and selection. • Group buying power.
Best practise franchising Ongoing business reviews are one way Crema Espresso assists in the success of its franchisees. “All our franchisees receive quarterly business reviews from our external provider – Best Practise Franchising. This includes a review of the business plan and looks directly at any issues affecting the bottom line,” says Antony. Using a ‘Green Flag Program’ each franchisee should have six green flags, each focussing on different areas of the business. Once an area flag goes amber this sets a process in place allowing the team to immediately resolve any issues before becoming detrimental to the group. Antony explains, “The beauty of this is that any issues are established early and dealt with before they become a real problem to the success of the business. The reviews have worked extremely well for us and our franchisees.”
It’s not just about the coffee! All too often, the story of cancer is a personal one. The Crema team all have accounts of family, friends and colleagues
40 Business Franchise Australia and New Zealand
who have fought, lost or won the battle with cancer and as a result of this 35 people entered the 2013 Gold Coast Marathon, racing for Team Crema, raising funds for this worthy charity. Following on from this success, as well as running in the 2014 Gold Coast marathon, seven teams entered into the Noosa Triathlon, Team Crema is the largest corporate team to participate in the Kokoda Challenge 2014, with 5 teams entered which will raise a minimum of $10,000 to help the Kokoda Challenge Youth Program, supporting young people within the community. Whilst these charitable efforts foster a great mateship and positive attitude within the Crema Espresso family, you don’t need to be an Iron man/lady to join. As long as you are looking for a new challenge, not afraid of rolling up your sleeves and enjoy being around people in a communal environment, then Crema Espresso is for you! For further details contact Crema Espresso on: P: 07 5532 7727 E: antony.forbutt@cremaespresso.com.au W: w ww.cremaespresso.com.au
BE YOUR OWN BOSS DO YOU HAVE A PASSION FOR TELECOMMUNICATIONS? LOVE THE LATEST HANDSETS AND THE LATEST TECHNOLOGY? If you are a natural at understanding customer needs and have that special edge to sell compelling products and services to meet those needs‌ Allphones is the place to be. Not only do we offer the latest and greatest from all of the major handset brands, we help customers connect to a mobile network of their choice with some of the best deals in the market. Be the master of your own destiny in an industry that is ever evolving and shaping the way we live our daily lives. If you have the ability to connect with people and want to be your own boss, Allphones has some amazing franchise opportunities to become part of the mobile revolution and we want to hear from you.
For more information and to register your interest, visit allphones.com.au/franchise or phone 13 8000.
Business Franchise Australia and New Zealand 41
e x pert a A dv ice
FENDING FOR YOURSELF: WHY MARKETING DOESN’T STOP AT THE FRANCHISOR
Working with both franchisees and franchisors (and having had a go at being both at one time or another) has given me a good chance to understand their different perspectives throughout the whole up and down cycle of the franchise relationship.
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“At the end of the day, a franchise is a small business with the added bonus of a brand and support system to give you everything you need to succeed.” Often, the biggest frustration that franchisors have is that their franchisees aren’t doing much in the way of local area marketing that is, building up the business name close to home in support of the brand promotion done on a wider scale. My response to this is that (in the nicest possible way) both the franchisee and the franchisor need to share the blame, and to take responsibility for promoting the business. There is almost always generous scope for franchisees to work within their system and branding rules and still do lots of local area marketing. So if franchisees aren’t doing anything to promote their business we can usually pin it down to one of three reasons why: 1. They have been ‘spoilt’ with a good market or strong reputation and haven’t needed to fend for themselves; 2. They haven’t been taught or encouraged to local area market from day one; or 3. The franchisor has been too quick to bear all the responsibility for keeping the franchisee busy and hasn’t insisted on it being a partnership exercise. At the end of the day, a franchise is a small business with the added bonus of a brand and support system to give you everything you need to succeed. However it is still your business (and probably your family’s business) and with so much on the line it is important that you do everything you can to have people lining up at your door.
WHAT IS LOCAL AREA MARKETING? Local Area Marketing, sometimes called Self Promotion, is simply anything you as the franchisee can do to help bring new customers into your business. Usually, it involves working at a local level or with the community, as these things are specific to your business site as opposed to the whole franchise group.
Local marketing is the opposite of broad mass marketing (which is why you need both) – where mass marketing is expensive, local marketing is often cheap (or even free), where mass marketing reaches thousands or millions, local marketing reaches hundreds of your closest neighbours. Some examples of types of low cost local marketing that are usually allowed within a franchise system (check first obviously) include: 1. Networking with local businesses and people. (I call well-connected people ‘sneezers’ as you can let them know about your business and they will tell everyone - you become highly contagious!) 2. ‘Giving back’ or sponsoring local schools, kinders, sporting clubs or community groups. (There is an effective and non-effective way to sponsor things – to ensure you get ROI try to package in ways to meet the members face to face rather than just getting a sign on a fence).
Katherine Grace - Director, Graceful Solutions Marketing
effectively in my medical business – top referrers have increased to generating us over $1000pm each since we introduced thank yous. 9. Host beneficiaries with other local businesses such as gift vouchers or free trials for their clients. 10. Appearing in local directories, school newsletters or discount booklets (NB: advertising copy must always be approved by the franchisor first). 11. Offering your team (and customers) incentives for referrals. 12. Going to the bank, post office and school pick up wearing your uniform!
WHAT LOCAL AREA MARKETING DOES THAT THE REST DOESN’T
3. Appearing at fetes, festivals, markets, council events, home shows or trade expos. 4. Joining your local BNI chapter, rotary group, chamber of commerce, etc. (As the business owner of a well-known brand you need to become a little bit famous in your local area – even if you’re a bit too humble!) 5. Leaving business cards for your services in other businesses, on bulletin boards, etc. 6. Advertising your services within key employers in your area (such as council, hospitals, large manufacturers etc). 7. Running promotions or sales specific to your outlet and distributing (franchisor approved) flyers to letterboxes. 8. Thank you letters to customers for using your services or to the top 10 referrers in your client base. We use this one very
No amount of money or brand exposure can replace local marketing. What we are looking for is a powerful combination of the macro and the micro – mass media and the local engagement working simultaneously to give you the most thorough impact. After doing your own marketing for a while, you will notice that running your business becomes exponentially easier as the percentage of self-sourced customers increases. This is because in many ways, customers won over by interacting with you locally are way better for business. Here’s just a few: 1. Referred work averages a 90 per cent conversion rate. Clients who come to you via word of mouth (or simulated word of mouth such as introductions by
Business Franchise Australia and New Zealand 43
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“Local Area Marketing, sometimes called Self Promotion, is simply anything you as the franchisee can do to help bring new customers into your business.” a third party) are part-way converted before you speak to them and most times an effortless sale. 2. Customers are at the start of the buying decision. This means that they might decide to come to you after talking out loud to a friend (“I’ve been thinking about getting a fence/haircut/home loan”) or when they get some marketing piece from you. They are coming to you first, so you set the rules. On the other hand, customers that come in as a ‘lead’ usually decided some time ago to make a purchase and are at the ‘yellow pages’ stage of shopping around (often on price). 3. Market penetration is deep rather than wide. Your franchisor’s advertising is akin to flying a helicopter over your area and chucking flyers out the back. Yours is like knocking on every door individually. Reaching all of the people close enough to buy from you needs doing at a local level – your franchisor cannot possibly hope to reach each and every one of these people just using mass media. 4. Marketing can be highly targeted. If you are looking for customers in a particular demographic – mothers, fathers, students, professionals, DINKs, etc, you can tailor cheap but extremely effective strategies just at these groups by working with other businesses, community groups or clubs that they frequent.
with local marketing gives us so many other benefits. They build their own profiles in the community which brings in more business but also increases their confidence and business skills. We have FUN. We celebrate when a particular event or campaign goes well because we were all involved. Team camaraderie is at an all-time high when we get things underway and you simply can’t measure what effect all that positivity has on our sales.
5. Your business value increases. Having a strong reputation locally increases your attractiveness not only to potential customers but too the best employees (who of courses want to work for the best companies) and to potential purchasers should it come time to sell. In addition, having control of your own work levels and a proven marketing system gives any purchaser a water tight guarantee about keeping your goodwill after the sale.
7. You are not at the mercy of other people. Inherently, marketing gives you control of your own income – which pretty much solves every other problem you can have in business (it’s why I moved from business coaching to marketing in the first place). Even if your franchisor is generating bucket loads of work via their own marketing plan, having something going for yourself not only gives you more control over the type of customers you get (read: better quality), it also means you have your own know-how insurance against anything changing in the future.
6. Your whole team can get involved. In my businesses having the team help
Marketing to me is all about being in control of your own business and how busy you are.
44 Business Franchise Australia and New Zealand
This responsibility is yours – it doesn’t go away just because you belong to a franchise system, and when you think that it does it leaves you dangerously at risk. Because really – whether the market is good, bad or otherwise – things can change and it’s so much better to know how to fish than be dependent on fish from others. A former CEO for the Jim’s Group, Katherine has over 17 years’ experience in franchising. She has worked with many brands, been a successful ActionCOACH franchisee (#14 in the world) and was runner-up Franchise Woman of the Year in 2010. Graceful Solutions is a marketing company specialising in no-cost, low-cost and local area marketing. Their team of 12 offer services including websites, online advertising, marketing plans & low-cost strategies to engage existing customers and find new ones. Phone: 0400 865 277 Email: Katherine@gracefulsolutions.com.au Web: www.gracefulsolutions.com.au
Bringing trusted businesses and the community together
Probably the best franchise opportunity in Australia today thebestof
Making local life better for everyone in the community! thebestof might not be the most well known franchise here in Australia, but with an eight year track record and more than 250 franchisees in the UK, it’s certainly very successful.
thebestof
After it was launched in 2005 by British entrepreneur, Nigel Botterill, thebestof quickly became the fastest growing franchise in the UK. Over the last few years it has shown no sign of losing pace: thebestof continues to go from strength to strength, with Nigel amassing a cupboard full of awards along the way.
Thebestof hopped over to Australia in 2011 and now, in 2014, with a new head office and Australian team it is set to be an exciting year ahead! Emma Gillings heads up the thebestof Australia and is also a franchisee based in Adelaide, SA. Emma is fully immersed in all aspects of the business and understands first-hand what it takes to be a successful franchisee, and the rewards available. Emma has her own fascinating story about how she came to Australia, is building her franchise and now taking thebestof forward over here ‘thebestof is a business with low overheads and unlimited earning potential, which makes it a very attractive business opportunity. On top of it all, I get to meet some fabulous people and make a difference in the community.’ Emma Gillings Marion and Morphett Vale, SA Franchisee since 2012 Head of thebestof Australia
What is thebestof?
thebestof is a marketing franchise The franchisees work on a local level with only the best businesses in their area. They provide bespoke marketing solutions that actively help those great local businesses get more customers, using both cutting edge online technniques and more traditional offline marketing methods. It’s a powerful combination. thebestof has flourished since its launch in 2005 with many franchisees earning sizeable incomes.
‘Residual income has opened my eyes to a better way to live...’ I was a plumber and gas fitter working locally in Bunbury doing maintenance, but never really loving what I did so I started researching business ideas and opportunities. I found this ‘getthebestof’ website which explained to me how a thebestof franchisee works with only the best businesses in an area to help promote them and really get their name out in the community. I had found my calling! What a brillaint business! Having no background in marketing I was surprised to learn that the most important thing with running this business is PASSION for your local area. I started making a profit very quickly and businesses call me every week to find out how they can join and what it is that we do. Residual income has opened my eyes to a better way to live without so much stress! It is rather comforting to know that X amount of dollars will land in my account every month. Harrison Oakley Bunbury, WA - Franchisee since 2012
Connecting local people and businesses With thebestof, a franchisee becomes part of the community and works to connect local people and the businesses and organisations that serve them. The aim is to make life better for everyone. Because of the nature of the business, it’s a huge help if franchisees are genuinely passionate about their community. At thebestof we are extremely choosy about who we accept as a franchisee - it’s a people business after all. After eight strong years, thebestof team know well the characteristics required to become a successful franchisee. New franchisees don’t necessarily need sales experience or technical skills - as long as you can use a computer and send an email, that’s all you need. What matters most is that each new franchisee is a proper people person. If you’re bright and switched on, unintimidated by hard work to get started and you’re passionate about making a positive difference to your community, then thebestof could be the perfect opportunity for you.
To discover whether your area is available, to get more information or for an informal chat, contact thebestof team on the number below
Get the full story at www.getthebestof.com.au or call Emma on 08 8358 6112 for more information Business Franchise Australia and New Zealand 45
PROFILE : Snap- on Too ls already know it. I challenge you to find anyone who is interested in working with their hands to not know about the Snap-on brand.” Michael is a successful franchisee, and is deeply proud of the business he operates. But even he accepts he wouldn’t have been able to do it without the support of important people both inside, and outside, the business. “I know that I wouldn’t be the best I could be in this business without the unfailing support of my partner, Lucy,” he explained. “She is the one behind the scenes who assists with paperwork and supporting me in my enterprise. But at the same time, our decision to purchase a franchise has helped us invest in a better lifestyle for both of us.
“I don’t have to do any selling to convince people of the quality of the product; they already know it.”
A MAN WITH A MISSION It’s often easy to assume that purchasing and running a franchise is an older person’s game, but the success Michael Carew from Queensland is enjoying is proving the rule wrong.
At a tender 31 years, Michael has been operating his Snap-on Tools franchise in Paget for two years. Trained as a diesel fitter, Michael knew he was not going to be content only taking a salary. He realised from a young age the power in controlling his own employment and spent a lot of time looking into business opportunities, and a Snap-on franchise was one of these. The self-starter went on to be employed by the local Snap-on franchisee before taking the leap and investing in his own franchise. Michael had a great handle on the operation
of the business even before he starting running his own.
“The Snap-on business is really simple to run,” said Michael. “At its heart it is simply about building up relationships with your customer and following the rules of the franchise. You can’t fail.” For Michael the secret to success is not only the simplicity of the franchise system, it is the support from head office that he receives on a daily basis. “It’s incredible,” he said. “There are so many programs and ways to get support. From product information to getting my hands on discontinued stock, I can’t fault it. My direct support team, the Sales Development Managers, they step up that extra notch to help you out.”
“We have been able to afford to send Lucy to university, to study and work towards something she really enjoys. We would never have been able to do that before Snap-on.” Michael is keen to see the business grow and over the short time he’s run it he’s seen his weekly billings increase by 25 per cent with no sign of slowing. But Michael is a man with a mission “I’m looking to retire early. I reckon Snapon just might be the way to do it,” he said, laughing. If you’re interested in taking out a Snap-on Tools franchise, and you want to know if it’s right for you – take the Discovery Tour. The Tour is an interactive program of 6 modules that takes you behind the scenes of operating a Snap-on franchise. Work out if the business will work for you, and get to ask the hard questions. Take a trial today: http://www. snapontools.com.au/franchise/discovery_ tour
• Hand tools, workshop equipment and diagnostics products for the professional mechanic and technician • $50,000 initial investment is all that is required. • Snap-on Tools provides a complete credit program to get you behind the wheel of a truck
Although to most of mainstream Australia the Snap-on Tools brand might be a bit mystifying, Michael is under no illusions when he is out in the field and selling product.
• Open territories exist around the country
“The Snap-on brand is known by everyone. I don’t have to do any selling to convince people of the quality of the product; they
• 19,000 products available
• All territories are surveyed, with potential customers pre-identified • Supportive and committed staff
46 Business Franchise Australia and New Zealand
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tips for doing due diligence
Lorelle Frazer - Director, Griffith University’s Asia-Pacific Centre for Franchising Excellence
When buying a franchise it is important to fully understand the commitment you are making, before signing a franchise agreement.
You should be cautious of any attempt to rush you into signing a franchise agreement before you are ready.
This means thoroughly researching your decision, (otherwise referred to as conducting due diligence) to ensure you are making an informed decision.
Here are ten tips to assist you with your due diligence:
As part of this process it is essential to get professional advice and the Franchising Code of Conduct (the Code) encourages this by recommending you get accounting, legal and business advice. The Code also requires a minimum 14 day period from when the franchisor provides you with a disclosure document before you can legally sign a franchise agreement, which provides you with an opportunity to get the necessary advice. If you feel you are not yet ready after the 14 days and need more time to obtain advice and undertake further research into the franchise offer, then don’t be afraid to tell the franchisor or broker.
48 Business Franchise Australia and New Zealand
By the same token, if during the disclosure period you come to the conclusion the franchise you have been considering is no longer for you, then you should withdraw from the process gracefully and before you incur further costs.
Tip #1 Get advice from experienced advisors When seeking professional advice it is a good idea to seek out professionals with experience in franchising as they will have a better understanding of the business model. Many potential franchisees often assume their family lawyer, who may have done their wills or some property conveyancing for them previously, will be franchise experts. This is unlikely to be the case and as a result, you could end up with poor advice, or a more expensive bill as a result of the extra time the advisor needs to get up to speed in dealing with the matter.
Tip #2 Read everything In addition to getting professional advice, you must invest the time and effort to read the franchise agreement and disclosure document (and anything else provided) for yourself. This will put you in a better position to understand the advice from your professional advisors, and to get a better sense of the extent of the obligations you will be undertaking.
Tip #3 Speak to current and former franchisees The disclosure document will include a list of contact details for current franchisees, as well as former franchisees who have left the franchise system in the last three years. Where possible, try to contact as many current and former franchisees as possible to discuss your interest in the franchise, and their experiences with the franchise too. This can provide great insight into the business and its ability to succeed, as well as reveal potential concerns.
Tip #4 Talk with current or potential customers Speak with current and potential customers to get an idea of the demand for the business’ goods and services, and how the brand will be perceived in its intended destination. This can be an informal type of market research that may lead to a more detailed assessment at a later stage.
Tip #5 Verify the information you have received As much as possible, you should verify the information presented to you in the disclosure or other documents.
“In this day and age, the world is more interconnected than ever, making it easier to find out information about an organisation and the people behind it.” For example, if the franchisor’s site selection methodology indicates the territory has a certain population of homeowners, or that a certain number of cars go past a proposed shopfront, you should try to independently verify the figures provided. You can do this by obtaining information from the Australian Bureau of Statistics (www.abs.gov.au), plus local and state government agencies, as well as landlords and providers of demographic information and modelling. Further information on assessing a site or territory is included in the Pre-Entry Franchise Education program.
Tip #6 Undertake web searches In this day and age, the world is more interconnected than ever, making it easier to find out information about an organisation and the people behind it.
information about companies including a list of directors. • The Australian Stock Exchange (ASX) - www.asx.com.au: The ASX website may be relevant if you are considering a franchise which is part of a public company. On this website you can find information about the company, its share price and its announcements to the stock exchange, including annual reports and dividend information. • Australasian Legal Information Institute www.austlii.edu.au: This website contains a list of legal judgements for both State and Commonwealth courts. A search of this site will identify court action relevant to the franchise. • IP Australia - www.ipaustralia.gov.au: To confirm the franchise has registered the trademarks it has claimed in its disclosure document.
Tip #7
Common web searches on the franchise and its directors or executives worth considering are:
Engage your partner/spouse, family and friends
• Google - www.google.com.au: To see just what comes up. Also try other search engines such as www.bing.com.au and www.yahoo.com.au;
A franchise investment will often involve borrowing against assets that may be jointly owned by a couple, so it is vital that a partner or spouse who may not be expecting to be involved in the business is at least involved in the due diligence process.
• Australian Competition & Consumer Commission (ACCC) - www.accc.gov.au: The ACCC polices the Competition and Consumer Act 2010 and the Franchising Code of Conduct, so if a company or an individual has breached either, chances are that a search of the ACCC website will reveal their name and the relevant circumstances. • Australian Securities & Investments Commission (ASIC) - www.asic.gov.au: ASIC regulates the conduct of companies in Australia, and maintains a range of
Similarly, many franchisors may consider the moral and emotional support of your spouse or partner in their assessment of you as a potential franchisee along with family or friends, particularly if they are to be involved in the business in some way.
Tip #8 Assess your own living costs While at first the requirement to assess your own living costs may not seem relevant to
Business Franchise Australia and New Zealand 49
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The amount of time and effort you put into your due diligence should be proportional to the size of the investment you are considering.
Additional due diligence resources Please note the above tips are only a sample of the steps you can take when doing your due diligence. Griffith University’s Asia-Pacific Centre for Franchising Excellence has developed a free, online Pre-Entry Franchise Education Program to further assist people to assess franchise business opportunities. The program is funded by the Australian Competition and Consumer Commission and can be accessed at: www.franchise.edu.au/ home/education/all-education-and-training/ pre-entry-franchise-education. Remember, there are no short cuts, and the more thorough your due diligence the less surprises you will have later on.
“You must invest the time and effort to read the franchise agreement and disclosure document.” buying a franchise, it is. The reason is simple: If your monthly household expenditure is high, you have to ask yourself if the franchise you are proposing to buy can consistently deliver a large enough income for you to meet your household costs. Franchisees often draw a similar wage from the business as the income they previously earned through paid employment, rather the wage they would pay if they were to employ a manager in their place. This needs to be considered along with your living costs as any wages you draw from the business need to be realistic.
Tip #9 Do a business plan Many franchisors will need a business plan before granting you a franchise.
Accountants will also need a business plan (or help you create one) to determine the viability of the business, and banks will need one before lending to most businesses. Many banks offer templates on business planning, as well as a number of business planning tools. State and government agencies can also help individuals and groups in preparing and presenting a business plan. See www. business.gov.au.
Tip #10 Take your time To properly research a franchise offer takes time, patience, and a little money. Rushing the process could lead to a disastrous outcome. It is far better to take a bit longer and do it right than to rush into a hasty decision and overlook key items of vital information.
50 Business Franchise Australia and New Zealand
And remember, if you are not satisfied with what you learn during the due diligence process, take more time for further research or simply do not buy the franchise. Professor Lorelle Frazer is Director of Griffith University’s Asia-Pacific Centre for Franchising Excellence and one of the world’s leading franchise researchers and educators. Lorelle has been actively involved in franchising research and sectoral policy initiatives for more than 15 years. She also lectures in franchising and is a member of the Australian Competition and Consumer Commission Franchising Consultative Panel. Her research is often used to inform sector policy and in 2010 Lorelle was awarded the Franchise Council of Australia’s national Contribution to Franchising Award. Griffith University’s Asia-Pacific Centre for Franchising Excellence aims to drive franchise sector best practice through practical, independent research and education. To find out more visit: Web: www.franchise.edu.au
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Love Photography. Love Real Estate. It’s time to own a Top Snap Franchise! You don’t have to be a professional photographer or have owned a previous business to become a Top Snap franchisee. Our franchisees come from all walks of life with different sets of skills and experiences. If you love photography, we provide all the training you need to become a Top Snap franchisee. With all retouching done in-house, all you need to focus on is the photoshoot and building relationships with your clients. Top Snap has franchisees operating in 42 territories across Australia and New Zealand, and is continuing to grow! )RU PRUH LQIRUPDWLRQ RQ WHUULWRULHV DYDLODEOH DFURVV $86 DQG 1= FRQWDFW 7RS 6QDS 72'$< WR ÀQG RXW PRUH
1300 TOP SNAP sales@topsnap.com www.topsnap.com
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Spotlight on Service : sma rt o hs
SIMPLIFY WORK HEALTH & SAFETY
FOR YOUR FRANCHISE GROUP Making workplace health and safety pain free for franchise groups and their franchisees. “Unlike our competitors, we have the flexibility to be able to offer franchise groups the economies of scale they are used to in delivering the highest quality, lowest cost technology to allow work health and safety to be managed easily and without a commitment of resources by the franchisor.”
With over 3,000 Australian workplaces using its simple but state of the art work health and safety system technology, and another year of working with Australia’s leading franchise groups as clients, Smart OHS is quickly being recognised as the leader in franchise work health and safety. “Simplify. Engage. Comply. Those three words sum up perfectly who we are and we do with respect to work health and safety for our clients,” said National Sales Director, Michael Kim. “There are so many misconceptions surrounding the concept of work health and safety (WHS/OHS). One of them is that the creation of some documents such as procedures manuals and standard checklists means you’re ‘covered’. It certainly does
not. Another misconception is that work health and safety will mean a considerable commitment in financial cost and time. Smart OHS is about expunging those common myths,” said Michael. Smart OHS started nine years ago with the founders, OHS consultants, finding that for the most part, small businesses neither had the time nor money to engage the services of a consultant to implement a health and safety management system. Smart OHS was built as an online system to make ongoing work health and safety compliance much easier and far more cost effective for small business. Smart OHS works by creating the business a WHSMS Plan, linked to a series of ongoing instructions for the business to login to their ‘Member Area’ within the system and use the online forms to records such items as: workplace inspections, hazardous substance registers and inductions. Businesses only need to login to the system after they’ve received an email reminder to do so and can track their performance over time via a ‘Risk Rating’ score. For most small businesses, after the initial 30-minute phone call set up with a Systems Administrator, undertaking the ongoing tasks is about 15 minutes per week of work only. “We’ve spent the last nine years evolving our system in response to the feedback of our clients to the stage where we are undoubtedly now the leader in what we do,” said Michael Kim.
54 Business Franchise Australia and New Zealand
“In the past two years in particular, we’ve been inundated with enquiries from franchise groups, who are essentially a large collection of small businesses with a common goal and product. The franchisor recognises a responsibility to provide a safe system of work and want to implement that hassle free. The franchisees understand they too have obligations, but want the solution to be endorsed and rolled out by the franchisor. That’s where we come in.” Michael Kim came aboard on 2011 with a brief to focus on working with franchise groups, much of the time offering the product as a managed service to alleviate the need for a commitment of resources from head office. In the past year alone, business growth has been exponential; Smart OHS has signed an ASX listed organisation with 135 locations, Australia’s second largest franchise group, and a community organisation specialising in aid projects, disaster relief and with a retail component of Op Shops. “Simplify. Engage. Comply. It’s what we help franchise groups do,” said Michael Kim. For more information about Smart OHS please contact Michael Kim. Mobile: 0416 210 818 Phone: 1300 858 818 Email: michael.kim@smartohs.com.au Web: www.smartohs.com.au
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How healthy is your business? For more than two decades I have been involved in the operations and management of retail and franchise businesses, and during that time I have assisted many franchisees to recognise the need for changes within their business. In franchising, a proven system is the first key area that attracts a new franchisee. Everything else flows on from there – business support, training, systems and procedures, leadership, financial management, marketing and PR and of course brand awareness. A franchisor who runs a successful business model provides all the training and support that the franchisee requires, assists with financial and business management, provides the local area marketing and public relations to support the franchisee and provides the leadership and mentoring to ensure he or she is provided with all the tools to succeed. However, as a franchisee, you also need to ensure that your business is in the healthiest condition it can be to ensure sustained growth. It is important to have a close, hard look at your operation and to ensure that your business is in a healthy position to expand and grow. Does your business plan reflect correctly
the changes and innovation that need to be adopted to ensure your ongoing success?
undertaken the Franchise Health Check, with outstanding results.
What has been working well for your business over the past 12-24 months? What are the areas that you believe need improvement in order to take your business to a new level within the next three years?
Following the comprehensive Health Check, we were able to work with these clients to assist them to develop a strategic plan which comprehensively articulates their intended business vision, key objectives and a prioritised framework for realisation of the strategy over the short, medium and long term.
Time for a check-up In my role, I work closely with franchisors to assess their franchise system to identify opportunities for improvement and efficiencies for all stakeholders. The Franchise Health Check provides a comprehensive review of a franchise system across a broad range of business imperatives grouped in six key categories. Results are thoroughly analysed and recommendations devised and prioritised to provide the business with a clear road map towards best practice. The Health Check takes a microscopic view of the key elements of the business. These elements include:
As one CEO pointed out; “The Health Check process identified a broad and very relevant range of important recommendations to strengthen the operations of our business and position it for growth and higher levels of profitability. I believe that the implementation of these recommendations will assist in the development of a corporate environment that will enable us to relaunch the franchise system and restart its growth phase in a manner that is consistent with the objectives for the franchise and the brand.”
The Head - Business Planning and System Development
On a franchisee level, there’s simply no reason that you shouldn’t be going through the same checks on your own business to ensure that it is performing as well as it can be.
The Face - Public Relations & Communications / Marketing & Promotion
You need to be asking yourself some important questions about your business;
The Backbone - Organisational Structures and Personnel
Business Planning
The Heart - Franchise Performance & Financials The Hands - Network Management & Support The Eyes - Policies, Procedures & Legal In very recent times, franchisors, including House of Golf, Kumon Learning Centres and Cincotta Discount Chemists have all
56 Business Franchise Australia and New Zealand
How do you know if my business is heading in right direction? Is my strategic/ business plan robust enough to challenge me without demotivating me? How often am I reviewing my business performance against my business plan? Are my business goals realistic and do they tie into my personal goals? A well balanced business plan is the blue
“It is important to have a close, hard look at your operation and to ensure that your business is in a healthy position to expand and grow.” print of the direction you intend on driving your business in. A practical business plan is a valuable document that becomes the checklist towards success including sales, profit forecasts and targets, expansion and growth strategy. Business plans need to be reviewed regularly, not only to ensure that you are heading in the right direction towards achieving your goals, but also so that new goals can be established if your existing ones have already been met.
Sales and Marketing How do you tell the market what you do? Is your business getting the best exposure possible? Are you taking advantage of PR opportunities wherever possible? Are you measuring the return on investment that your marketing dollars are earning? Are you able to track and measure each of the actions that will bring you closer to your goals? If your sales and marketing plan is not aligned with your business plan the reality of achieving your sales, profit forecasts and targets decreases incredibly. Ensure that your business plan effectively recognises the importance of marketing in achieving your goals.
Operations Are you using your operations manual? Is it easy to access for reference at any time? As a franchisee, you are provided with an operations manual by your franchisor – use it! It should be an easy-to-access resource within your business, and is the key to operating your business in the tried and tested formula perfected by your franchisor.
Human resources Does your business have the right structure and the right talent to achieve its goals? Are you succession planning with your people? Do you invest on training and up skilling your people to maximise return on investment? How often do you appraise staff and review performance to ensure alignment towards business goals? Is your team or network aware of the business goals and are they aligned with their departmental/ individual goals?
You can’t build a successful business on your own – take control of the most precious asset that exists in your business, your people. Building a successful team also involves planning the right structure that is best suited for your business and then identifying areas of responsibilities that belong within these structures. Communication, and more importantly, consistency in the communication that you impart on your team is essential to ensure that everyone is on the same page and moving in the same direction with the same motivation and end goal in mind.
Innovation Be innovative and think about the best way that you can analyse your business with fresh eyes and an objective approach. You may be surprised about some of the issues that are identified once you begin to look closely at the operations of your business, however there is no better time than now to start rectifying them and moving forwards on your path to greater success. Nik Konidaris is General Manager Franchise Operations at FC Business Solutions. He has a wealth of experience in franchising, holding senior roles with national brands including Betta Electrical, Clark Rubber and most recently, Quest Serviced Apartments. Nik has a passion for developing and nurturing relationships, mentoring and coaching individuals to get the very best out of their business aspirations and opportunities. Contact Nik on: Phone: 03 9533 0028 Email: nik@fcbusinesssolutions.com.au Web: www.fcbusinesssolutions.com.au
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Spotlight on Service : N ATI O N A L FR A NCHISE I NSUR A NCE B RO K ERS
Another successful year for NFIB “We are also proud to announce that we will soon be represented in New Zealand by one of the largest broker networks in that country.” they offer a web-based insurance platform that has been designed exclusively for all kinds of franchised businesses around Australia. What’s central to NFIB’s success is two-fold: inexpensive insurance premiums regardless of the franchised business being insured, and the ease at which a franchise business can insure their business. NFIB Executive Director Darryl Morris
Having recently been a finalist in the 2013 Telstra Small Business Awards and after another year attracting more and more of Australia’s best known franchise businesses, National Franchise Insurance Brokers (NFIB) is fast becoming an insurance force to be reckoned with. “Our goal has always been to penetrate the market with the most competitive insurance premiums for franchised businesses, and that goal is now beginning to be realised,” said NFIB Executive Director Darryl Morris. “And our recent nomination for the Telstra Small Business Awards really was the icing on the cake.” For those of you not familiar with NFIB,
“Four clicks of a computer mouse to get a franchised business covered is what we’ve always promised,” said Mr Morris. “And that’s precisely what we’ve delivered.” What makes insuring with NFIB so easy is the fact that there are only four basic pieces of information required in order to arrange cover for a franchised business: 1. The replacement of plant, equipment or stock 2. The gross profit of the franchised business 3. The level of public liability required by the franchised business 4. Whether machinery breakdown is required by the franchised business Plus, there isn’t any paperwork or forms to complete and there are no signatures required. It really is quite a simple and ingenious process. “We spend a great deal of time and effort travelling around the country speaking to both franchisees and franchisors and their feedback is extremely positive,” said Mr Morris. “Our online system allows the franchisor to make sure that all of their individual franchisee’s businesses have adequate insurance cover. From the franchisee’s perspective, our ability to ‘bulk buy’ insurance cover means their costs are
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significantly reduced when compared to what they may have paid for insurance in the past.” The NFIB business model has been so successful that the group has now ventured abroad with the recent launch of Worldwide Franchise Insurance Brokers or WFIB. “We are continuing discussions with insurance brokers in the UK, Europe and in both North and South America. We are also proud to announce that we will soon be represented in New Zealand by one of the largest broker networks in that country. This is the first partnership formed offshore and we are confident that this union will assist local and regional franchises in New Zealand to take advantage of the ease and simplicity in purchasing their insurance programmes online.” Mr Morris said that he strongly believes that the future of the business lies in his group’s ability to provide the cheapest insurance costs available. “We all hate getting insurance premium renewals. That’s a fact of life. People want the most adequate cover for the lowest possible price – it’s as simple as that. What we’ve focused on from the beginning and what is still central to everything we do today is to make sure our customers save money on their business insurance,” Mr Morris said. For more information about National Franchise Insurance Brokers please contact Darryl Morris or Brad Dixon. Phone: 1800 776 747 Email: info@MYNFIB.com.au Web: www.MYNFIB.com.au
:(
:)
BEFORE.
AFTER.
As we continue to make franchised business owners extraordinarily happy with our lower insurance premiums, you really need to ask yourself why you’re not with NFIB. �anks to our highly simplified online system together with our reduced premiums, we are fast becoming the preferred insurance provider for Australian franchised businesses.
To find out how you can insure your franchised business in just four clicks of a mouse, speak to Brad Dixon today on 1800 776 747 or email info@mynfib.com.au
MYNFIB.COM.AU National Franchise Insurance Brokers Pty Ltd is an authorised representative (ARLN 277977) of LTM Group Pty Ltd (AFSLN 245374)
NFI082BUSINESSFRANCHISE
Business Franchise Australia and New Zealand 59
building & la ndscaping feature
PROFILE fr anch ise : V.I.P. couaust nci lro a lf i aaust r a l i a
Sinking his teeth into a new career Working weekends and late evenings finally persuaded Mark Palmer to make a change. Working as a National Purchasing Manager in the dental supplies industry, Mark longed to get his ‘teeth’ stuck into something else. Juggling a hectic and high pressured job with the demands of a family with five children left Mark with virtually no time for himself, let alone his family. Mark’s first stage was chatting with V.I.P. Home Services, before spending the day with one of V.I.P.’s experienced home cleaning franchisees. This is a stage that all new franchisees have to go through before they make the decision if it is for them or not. The whole experience gives the person interested in a franchise business the chance to actually find out what life may be like as a franchisee. It was this hands on experience and the chance to talk directly with existing franchisees that really gave Mark the confidence that this was the right choice for him. One year on and Mark, and his family, couldn’t be happier. “Often I wouldn’t get home until after 8pm and would also go into work on a Sunday evening just so I could get a head start for the week ahead. I now feel like I have taken control of my life. I have time for me and time for the family,” explained Mark who has a V.I.P. home cleaning franchise. One of the many aspects of the business Mark researched was the importance of the power of the brand, knowing that to get a head start in business you need to go with a company that has the professional image and expert backing. “In my business having a brand behind you such as V.I.P. really is priceless. People know the brand and what’s more they trust it. But it is so much more than the brand – it is what’s behind it too. Even before I started I was fully supported. After my training I wasn’t just left alone. I take advantage of the ongoing training
One year on and Mark, and his family, couldn’t be happier...“I now feel like I have taken control of my life.” as I know that gives me the best chance of growing my business even further,” continued Mark. Mark did his ‘homework’ on franchising and for him it was clear to see just why V.I.P. have won so many awards for their franchise system. Over the last 35 years they have helped over 4,000 people from all walks of life and from all over the country to become successful business people. Their training and mentoring is ongoing, franchisees can start with an established client base and the provided start-up kit gives you everything you need to get going. What’s more their affordable franchise options gives you access to a whole network of franchisees that can work together to help you grow.
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With the help of V.I.P. Mark has quickly grown his business and had achieved his initial business goals before schedule. “It’s been a great start to not only have a new career but also a new life really. I’m looking forward to developing the business further. With the help of V.I.P. I have set myself other business and personal goals and am now looking forward to the future rather than dreading the Monday mornings or Sunday evenings!” If like Mark you would like to change your life and wish to start your own business call V.I.P. to see how they can help on: Phone: 13 26 13 Web: www.viphomeservices.com
FE ATURE
Home-based v Mobile franchises Which oneâ&#x20AC;&#x2122;s for you?
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FE ATURE “Deciding which kind of franchise is right for you is one of the greatest decisions you will make when entering the world of franchising.”
Do you fancy sitting at your desk in your slippers and PJs? Or is hitting the open road more your style? Deciding which kind of franchise is right for you is one of the greatest decisions you will make when entering the world of franchising. In this edition of Business Franchise Australia & New Zealand we take an in depth look at home based franchises and mobile franchises.
lawn mowing, house cleaning, car washing, selling tools, servicing cars, package delivery, fence building, business consulting…phew! The list just goes on and on. You name it, and there will probably be a mobile franchise available for you to make all your own.
Apart from the obvious difference between these two kinds of franchise businesses, each in fact share a number of similarities – including (sometimes) lower start-up costs, and the flexibility to work around your personal schedule. First let’s take a close look at mobile franchises.
The one thing they all have in common is that they do not operate from fixed premises.
HIT THE ROAD Ever felt tied down by travelling day in and day out to the office, staring at the same four walls? Then perhaps a mobile franchise is for you. The freedom and diversity you will gain by hitting the road and visiting your clients could be the change of scenery you are looking for. The variety of mobile franchise opportunities is vast and ever-expanding. Everything from food vans, dog washing,
TERRITORY Territory, as with most franchise business, is particularly important when operating a mobile business. With a mobile franchise, your income will be received from the clients that you establish within your specified territory, so of course it is imperative that you know the exact parameters of your allocated territory. It is also important that when doing your research into a mobile franchise that you investigate whether it is actually possible to generate the income you require – or desire! The ways in which franchise systems divide
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their territories may differ – whether it is by postcode or physical boundaries – you will need to investigate the area thoroughly. Some franchise systems offer exclusive territories, in which you will be the only operator of that franchise in that area, while others offer non-exclusive territories. In non-excusive territories you will face competition from not only other similar businesses but also from other franchisees in your network. Always check with the franchisor as to the specifics of territory allocation for the franchise system you are investigating.
FREEDOM As a mobile franchise operator, you are master of your own daily schedule. Need to drop the kids at school? No worries! Surf’s up? Grab the board and hit the waves! Obviously you’re not going to make much money if you spend all your time running errands and hanging ten, but when the occasion does arise, it’s great to be able to have some flexibility in your day.
FE ATURE As with any business, you are only going to get out of it as much as the hard work you put into it. With a mobile franchise you can choose to work as little or as much as you want.
CUSTOMER SERVICE Good customer service can set you apart from your competitors, and is what will keep your clients coming back. When operating a mobile franchise, this is truer than ever before. Be on time, be well presented, and ensure that you have everything you need to perform the job, or have the stock your client wants, every time. The presentation of your vehicle is also imperative. It is representative of your business – keep it clean and well maintained and it will show your clients and members of the community that you take pride in your business.
$$$ In most cases a mobile franchise will be cheaper to purchase than a franchise operating from a retail outlet, the obvious difference being that fixed premises is not required therefore eliminating the need for a lease and rent payments and the cost of a shop fit out. Mobile businesses often operate from a home office, also keeping overhead costs at a minimum. To get started all you may need is a phone and computer. In addition, mobile franchises often eliminate the need to employ additional staff members into the business, so the costs of doing so, and the associated paperwork, also disappear. However, just because your investment into the business may not be as high as that of a retail outlet, this does not mean your due diligence should be cut short.
HOME SWEET HOME Working from home is on the rise in Australia. The rapid development in technology over the last 20 years has changed the face of business, with technology available that allows us to communicate instantaneously, even face to face via video conferencing if we desire, with people anywhere in the world. For those working from home, we are no longer isolated; we are connected, both faster and clearer, than ever before. A home based franchise could be the right way for you to skip the daily commute, leave the office grind behind, and establish
a business from home using the tried and tested formula of a successful franchise system.
due diligence you will increase your chances of making a good decision and of future success.
Whilst many of us envision working from home slouching around in PJs and slippers, watching the odd day time movie, the reality is that working from home should be treated as a normal job. Setting a daily schedule, showering and dressing as if for the office and closing your office door behind you, is likely to be a more productive and motivating way to go about your day.
Due diligence is the process of evaluating the prospective business purchase by getting information about the financial, legal, operational and other important aspects of the business.
Some home-based franchise systems will require you to visit your clients in person, others will allow you to conduct your work via phone calls and emails, and there are even franchise systems available that could provide passive income - meaning you can earn money by doing very little at all!
• How much will you need to invest to buy and operate your business?
Some of the questions that need to be answered include: • Do you enjoy the work involved in this franchise?
• What initial and ongoing training will you receive? • What level of support will you receive with managing your business? • What kinds of marketing activities are conducted by the franchisor?
FLEXIBILITY One of the greatest advantages of operating a home business is that of flexibility. These kinds of businesses are perfect for a stay at home parent; work can be completed in between school hours, late at night or early in the morning whilst the house is still sleeping, even whilst baking a cake. The little ones may be happily settled in for a nap while you catch up emails and correspondence. It’s this flexibility that appeals to those operating a business at home. Or you may be an entrepreneur wishing to set up business but without all the associated overheads involved with employees and setting up a shop front.
SUPPORT AND TRAINING As with any franchise, it is important to ensure that your franchisor provides adequate support and the ongoing training required to operate your business. This is one of the major benefits of being involved in a franchise system; you are becoming a part of a successful formula that is replicated again and again, and it is the franchisors job to ensure that their franchisees are adequately supported to be able to operate their business effectively. Ensure that you discuss with your franchisor what will be provided in order to begin operating your franchise, and what ongoing training will be provided.
DUE DILIGENCE Regardless of the type of franchise you choose to purchase, by conducting thorough
• How will you receive leads? Will they be provided by the franchisor or will you be responsible for generating them for yourself? • Does the franchise have the ability to remain competitive and maintain its brand value? Evaluating a prospective franchise business is not an easy process and professionals in franchising can help you carry out your due diligence. An accountant, lawyer and your bank are important sources of advice and knowledge. Talking to those already involved with the franchise system is a great starting point; franchisees can share firsthand their experiences with operating within the franchise system. The franchisor should be forthcoming with the contact details of current franchisees. It’s also recommended you read the Franchising Code of Conduct to understand your rights as a franchise and those of the franchisor. The Franchise Council of Australia has an abundance of information relating to the code as well as recent changes and reviews of these changes on their website www.franchise.org.au.
ENJOY THE RIDE So whether it’s a mobile franchise or a home-based franchise that suits you best, we hope this brief guide has given you some insight into the benefits of each, and wish you luck on your franchising journey.
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E x per t Advice
Rules, Tools and Wearing no Shoes: How to Productively Work From Home Once upon a time, I worked in an office. Lots of offices really. Big corporate ones with workstations, soughtafter corner offices, lots of people, fluro lighting and fights over missing staplers. One of my offices was kind of a dungeon and if you stood on tippy toes you could see the car park, almost. But now? Now I work from home and have done so for the last four years. At the moment I have three kids, my partner, four dogs, a lizard and a budgie in the house. It’s school holidays. While I have an office separate to the house, during school holidays it needs to be sound and shake proof, a sensory deprivation cell designed by NASA, to not be impacted by the cacophony generated ‘out there’. And it’s not just inside the house.
“Ultimately, yes, you can be productive working from home. But it will require commitment to make it work.” 64 Business Franchise Australia and New Zealand
FE feature ATURE working from home. Use their advice and build on their experience. Secondly, think about where your home office should be. Having a separate space, preferably with a lockable door is great. So, think about where this could be in your home. What will need to change? How will it impact the family and family life? What about visitors and meetings?
Outside, as I write this, there are five children squealing in our pool, a heated street cricket match happening and the neighbour next door obviously has a new stereo and wants to test just how loud it can go. And you know what? Give me ‘working from home’ any day of the week. I am biased, I love it. I love the freedom, not having to commute, the flexibility and not wearing any shoes. There are downsides. If something breaks, I have to fix it and no one organises morning teas or raffles. At first, working from home was a life changing event. And, as a new franchisee, you will be facing a number of life changing events. This might be the first time you’ve been in business, leaving the security of an employed job with clear expectations, routine and a regular pay check. You might be starting business with your life partner or a friend, which always brings excitement and fresh challenges to existing relationships. You may find everything new - the products or services you will be selling, new skills to master and new relationships to make. On top of all of this, you will be changing where you work. Our environment is important to most of us. Over the years, I have seen hundreds of individuals move from the comfort of office based jobs to being a franchisee, making significant changes to how and where you work. Our research tells us that one of the major
motivators for people becoming franchisees is ‘business autonomy’, the chance to be your own boss. Working from home seems to be part and parcel of this and I want to share some hints and tips based on common questions I get asked.
Can I be productive if I work from home? There is a fair spectrum of what it means to work from home. You may have a retail outlet and do some bookwork and reports from your home office. You may be based at home full time. You may spend time at home and time on the road. It all depends on the franchise system you invest in. But ultimately, yes. Yes you can be productive working from home. But it will require commitment to make it work. Read on.
How do I get started? In creating (or renovating) your home office, you may be tempted to get a bunch of new stuff. If you’re like me, places like Officeworks are heaven sent, where you can go manic, convincing yourself colour coordinated hole punches and elastic bands are essential. Firstly, determine what you need. Your franchisor should provide you with an office set up checklist – a list of things you need for your home office. I encourage you to invest money in a good computer, a good chair, a dedicated desk and fast internet. I also encourage you to tap into what other franchisees are doing and how they set up their home office and how they manage
You will have people coming to your house. Some of them may be your customers, but your field manager might come to help set up, or do a business review with you. Where will your bookkeeper sit? Having a comfortable, welcoming office space in your home is essential, a space that you can be proud to call ‘my business’. I know of a pool building franchisee who uses his own pool to show customers a real life example of the product he sells. Can you imagine the surprise his wife got one afternoon while she was having a quick dip with their 6 month old in the nuddie? He wasn’t popular and now they have very strict protocols in place for having customers in the house (unsure if he got the sale!). Thirdly, getting started in setting up your home office and working from home needs a plan and more importantly, it requires getting into routine and setting clear expectations with those you live with. Finally, protecting your business stuff, stationery, equipment and records is really important. Somehow, it is always the fun stuff that goes missing first. You go to print a document, only to find the ink has run out and someone has forgot to replace it or tell you. For me, it’s sticky tape. I was forever running out of sticky tape (I’m pretty sure the kids eat it). Now, they have their own supply and don’t touch mine.
How can I set rules and expectations with those I live with? Being productive while working from home requires discipline and rules, so everyone knows how to best support you. There will be much excitement and change occurring in your and your loved ones’ lives when you are a new franchisee. It may be seen
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E x per t Advice
What tools do I need?
“I love the solitude of working on my own. It’s where I do my best work. I can go for hours without speaking to anyone and still call it a terrific day. But, I need balance.” as a major disruption or change to normal household operations. Setting expectations, or even hard core rules, and discussing them with those you live with is a must before you start working from home. Things like the following can be agreed to and put on the fridge: • When the door is closed I am working and can’t be interrupted. • Give the office dedicated opening and closing times and close the door at the end of every day. • Keep the level of noise and carry on happening in the house to a minimum during office hours. • What to do when customers and visitors come to the house. • How to answer the phone or greet visitors at the door. It’s not just your behaviour that needs to change. It’s everyones. I used to get little notes poked under my office door enquiring when I would be finishing, or would I like a drink, or a news flash the dog had just eaten a thong. Now I write my working times on the fridge. It may take a while for the household to adjust, but be patient, be kind and be consistent. There is a flip side to this too … What happens when you are procrastinating? Taking a long lunch break? Spending more time out of your business and more time doing household things? What permissions
are you going to give those you live with to get you back on track? Some people in your network may have the perception that working from home is a bludge. That all you do is send a couple of emails, make a phone call or two, check out Facebook, watch Days of Our Lives, do some chores and send an invoice. Being disciplined around your work day is critical. While friends and family may think you have plenty of time to run an errand or meet for lunch, saying “not today, I’m working” will be your new superpower. This applies to chores as well. ‘Chore Creep’ is the phenomenon where you start to add little household jobs into your day (such as picking up the dry cleaning, doing the grocery shopping, hanging out a load of washing). You have the autonomy and opportunity to do that. The danger is your day can quickly fill up and you have not given the time you need to run your business. A good friend of mine fell victim to Chore Creep and was having to work late at night and on the weekend to make up for it (she had a clean house though). When I first starting working from home, I was obsessed with being able to do my washing every day. Chore Creep, it can hit you anytime, anywhere. If that’s your choice … great! … but it can become crippling and definitely something to watch out for. You still have a business to run.
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Our daily team meeting is done over Skype, allowing us all to work from home around Australia. However, a hush settles over our team whenever these dreaded words are said: “My Internet is playing up…” Worse still is what we call Code Red: a SMS from a team member saying that the Internet is down and they will have to dial in using the ye olde ancient telephone. The key here is to have a contingency plan. How will you continue to run your business when the Internet is playing up? For me, I hit the local café for their WiFi or use my phone as a hotspot. My EA ‘borrows’ Internet from the neighbour … The Internet is a powerful business tool. Nowadays, you cannot do business effectively without it. As a result, you will learn new skills. You have to. In an office, if your computer is on the fritz you can walk down to the IT Department and make it their problem. Unfortunately there won’t be an IT team waiting on your couch. You’re the IT Department. Google has saved my life on more than one occasion (simply Google your problem and like magic, answers appear). Having an IT savvy buddy or child may also provide you with the support you need. If you don’t have basic technology skills, then go to school on it. Do a short course or get a tutor. A franchisee friend of mine traded computer lessons with his 16 year old neighbour for driving lessons. But beware! In a recent webinar I conducted with a client, I had a nice shirt on (business attire from the waist up) and my favourite PJ bottoms on, hidden under the desk. It is part of my ‘day to night wear’ range. At the end of the webinar the client asked if I had any copies of our publications to send them. I jumped up to check, flashed my ‘Owl You Need is Love’ PJ bottoms, gave them a laugh and have since added another line to our pre-webinar checklist: ‘is your bottom respectable?’
Will I go insane working from home and not being around people? If you are a social critter you may miss being in an office, but you certainly will be around people. Working from home doesn’t mean being in isolation. You will
FE feature ATURE “I am biased, I love it. I love the freedom, not having to commute, the flexibility and not wearing any shoes.” be speaking with customers, suppliers and supporters every day. I love the solitude of working on my own. It’s where I do my best work. I can go for hours without speaking to anyone and still call it a terrific day. But, I need balance. I need to chat and be social and have human interaction. I’ll be climbing the walls without it. Ultimately, the choice is yours. If you crave working in a team, find how other franchisees in your system have done it. What can you do locally for your daily dose of human contact? How many customers will you call? Who can you visit? Find a support network that works for you. Can I create my own routine, something that works for me? Short answer: yes. If you are prone to wasting time in an office, you are highly likely to waste time at home too. Changing your environment doesn’t fundamentally change your personality. If you are easily distracted
by your work mates (or the one doing the distracting), wanting to be involved in loud conversations and group happenings, you will be just as easily distracted by hours of TV or a chat with the postman. Setting a routine, being disciplined around it and making changes to it when it doesn’t work for you is important when you’re starting out. Your routine will change over time, but when starting out, be disciplined and trust your routines. A franchisee I’ve worked with gets up at 4am to do her paperwork. She then does the school run, goes out on client visits and finished her day by lunchtime. Works for her. Good franchisors will have some tools and experiences to share when it comes to creating a schedule and routine that works for you. Tap into their experience, learning and advice – it’ll help you get to where you want to be quicker! The moral to the story is this … Working from home is a gift, one that gives you freedom and choice. But it requires
Karli Furmage - CEO, Franchise Relationships Institute
discipline, time and effort to make it work for you and those you live with. Knowing yourself and how you are productive is the key to making it work. Karli Furmage works with The Franchise Relationships Institute, a research and training organisation that has been helping franchisors and franchisees create profitable partnerships for 24 years. To have Karli or one of her team talk at your next conference contact: Phone: 07 3510 9000 Email: info@franchiserelationships.com Web: www.franchiserelationships.com
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Fast way Cour iers
CONNECTING CUSTOMERS FOR 30 YEARS In 1983, Fastway Couriers was established in New Zealand, providing a low cost courier service between Napier and Hastings. A year later, Fastway became the first ever transport company to enter the franchising arena. Fastway Couriers has been operating in Australia since 1993, where their success was immediate with upwards growth
continuing to this day. Today there are 17 Regional Franchisees operating delivery hubs around New Zealand with over 250 Courier Franchisees. In Australia, there are 25 Regional Franchisees and over 700 Courier Franchisees moving in excess of twenty million parcels per year. Fastway offer a cost effective, reliable, timetabled courier service with local, shorthaul and national courier distribution around New Zealand and Australia. Backed up by the latest computer technology and online parcel track and trace facilities, Fastway is the ideal choice for small to medium sized businesses. Fastwayâ&#x20AC;&#x2122;s prepaid courier label system enables their customers to enjoy savings
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on their usual freight costs, as well as providing a simple system free of any extra paperwork or add-on charges. For medium to high volume senders, they also have an electronic labelling system. Fastway are also rolling out a new consumer service called Parcel Connect. This is a network of agents (Petrol stations / convenience stores) where customers can send or return a parcel, rather than queuing at the post office as well as collecting their parcels if theyâ&#x20AC;&#x2122;re not at home when the courier calls.
Could you be a Fastway franchisee? Fastway Courier Franchisees are motivated, self-employed business people who work
FE feature ATURE “With a Fastway franchises business, there’s no weekend work plus the opportunity to enjoy the freedom to working for yourself.”
under the recognised Fastway brand name. With a Fastway franchises business, there’s no weekend work plus the opportunity to enjoy the freedom to working for yourself. With low up-front investment and ongoing professional support, a Fastway courier franchise is an ideal entry-level business ownership opportunity. You’ll operate with an exclusive territory, collecting and delivering parcels and supporting local businesses by being their physical point of contact with their customers. Courier Franchisees come from all walks of life and range from 18 to 80. Over the years, those that succeed are enthusiastic, energetic and have the desire to build a successful business within the guidelines of the Fastway franchise system.
Location, Location, Location Fastway have 25 regions throughout Australia, covering 85 per cent of the population and 17 regions in New Zealand. Each region is serviced by Courier Franchisees, ranging from just five or six in the smaller regions to 80 in Auckland and over 200 in Sydney. Combined, there are almost 1,000 Courier Franchisees across both countries. For switched on business operators, there are a number of Regional Franchisee opportunities on Central North Island and Lower South Island of New Zealand along with Courier Franchisee opportunities available in Australia and New Zealand.
For more information on available territories, please visit the Fastway website.
Why Fastway? In recent years online retail has grown strongly and this is increasingly important for the courier industry which has traditionally been oriented more at delivering to businesses than consumers. Much of the expected growth will come from both domestic and international e-commerce sites that rely on the industry to deliver goods within Australia and New Zealand. As owner-operators, the franchise partners
Business Franchise Australia and New Zealand 69
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Fast way Cour iers
“Fastway believe that comprehensive and effective training is paramount to the success of their franchise partners.”
are dedicated to providing each and every customer with exceptional service; going the extra mile to ensure that parcels are delivered on time and with the utmost care. The Courier Franchisees are the foundation of the business. Increasingly, customers are demanding a greater level of flexibility when receiving goods. Fastway is particularly well suited to provide the ‘last mile’ solution to retailers given the franchise territory structure of their network, lower cost facilities, owner operators and internet based technology factors. Fastway know that their customers are time poor, and it doesn’t matter if they’re a startup home internet business running out of their garage or a large multinational in an impressive glass building, there is a freight solution to suit just about everyone. The Fastway difference… ➢ No fuel levies - A common hidden cost amongst many freight providers ➢ Parcel coverage - Limited liability coverage included of up to $1,500 per parcel ➢ Online Track & Trace facilities - Online parcel tracking and signature proof of delivery within minutes ➢ No hidden charges - Account keeping and other hidden fees can spiral your freight costs ➢ No re-delivery fees - Particularly important when delivering to residential customers
Training and Support Fastway believe that comprehensive and effective training is paramount to the
success of their franchise partners. Within the Fastway organisation, a strong emphasis is placed on both the initial and ongoing education of franchisees. For Courier Franchisees, introductory training takes place at the depot, and includes a combination of classroom, practical, and self-training modules. Topics covered in the classroom section include the full scope of operating a courier franchise. The practical training takes place by accompanying an experienced and established Courier Franchisee and observing courier operations in first hand. This is backed up by self-training modules, which include DVD and multimedia presentations that Courier Franchisees can watch in the comfort of their home. Access to the Fastway Courier Franchisee manuals are provided for initial training purposes and can be used as an ongoing reference guide. It includes a wide range of promotional materials and handy reference matter. Ongoing training is offered by way of short training sessions, the franchise partner intranet and conferences along with the Regional Franchisee and Franchise Business Managers from the Franchise Support Office regularly accompanying the Courier Franchisees on van rides to assist in improving their businesses operations and winning new business. There’s also a Courier Franchisee intranet with provides a one stop shop overview of their business. Courier Franchisees can see their top customers, their earning, sales, number of parcels picked up and delivered with the click of a mouse. They can also see their KPI, compared to other couriers in the region and throughout the network
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A comprehensive range of tools and programs are available for ongoing marketing and business promotion. Fastway operates several Saturation Marketing programs throughout the year which include flyers, parcel stickers and personalised emails as well as providing individual marketing solutions to both Regional and Courier Franchisees as required. The process is backed up by a dedicated Sales Representative who follows up leads to make sales. Sales Representatives are required to work closely with Courier Franchisees to help build their business rapidly. Access to a PR agency is also provided free of charge to all franchise partners to assist in gaining local media coverage. Beyond operations and business growth support, full legal, IT, marketing and administration support is provided via the Franchise Support Office to assist Regional and Courier Franchisees to grow their business If you’re ready for a change, Fastway Couriers would love to hear from you: Ph: (AUS) 1300 FASTWAY Web: www.fastway.com.au Ph: (NZ) 0800 4 FASTWAY Web: www.fastway.co.nz
DONâ&#x20AC;&#x2122;T MISS OUR NEXT ISSUE!
FOOD AND BEVERaGE FRANCHISES
Want to learn more about trends and growth industries in franchising? Need help making the big decisions? Every edition we feature advice from the experts to help you on your franchising journey.
Find out more about FOOD AND BEVEraGE franchises in the MAY / JUNE edition of Business Franchise Australia and New Zealand. On sale 2nd May 2014.
Business Franchise Australia and New Zealand 71
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E x per t Advice
TELEWORKING
MAKING IT WORK FOR YOU Implementing successful telework policies to improve your workplace flexibility and attract and retain talented employees has never been easier. Recent research by ACMA has revealed that 39 per cent of SMEs allow their workforce to work at home at least one day a week. SMEs, including home-based micro business and virtual companies, are leading the way, taking advantage of the Cloud to gain affordable access to the latest information and communication technologies and support services and deliver flexibility to their employees and customers. Drawing on the experience of the 185 organisations that have become Telework Partners with the Department, the Telework Kit, www.telework.gov.au/kit steps you through the issues. It provides four tools on how to assess your readiness to telework, assess different types of telework to suit your needs, assess your technology and
assess ICT security needs, as well as tools to take you through the â&#x20AC;&#x2DC;how-toâ&#x20AC;&#x2122;, to successfully implement telework. The most common form of telework is working from a home office in a hybrid arrangement that combines some days working in the office with some days working from a remote location, including your home. However some teleworkers successfully work full time from their home office. Megan Reed, the Global Leader of Language Strategy for IBM, works with a global team across five continents from her home office on the Gold Coast. Her approach is to start any team project with a budgeted face-to face meeting where possible, to build trust and engagement around shared goals and communication protocols. This then allows the team to work virtually using a range of tools from telephone hook-ups to high end video conferencing, depending on local conditions and individual member preferences. There is also growing interest across Australia in telework via smart work hubs that create new style local work communities, combining telework for employees, coworking for freelancers, and local economic and business support services.
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The proven benefits for employers include improved productivity and the ability to attract, engage and retain staff with the skills that will build your businessâ&#x20AC;&#x2122;s strategic competitiveness. This is especially important for firms with global reach across different time zones, or who are attempting to provide help desk and sales service to their customers, sometimes on a 24/7 basis. Staff engagement and loyalty to meet these requirements through flexible arrangements, including the ability to provide this assistance as a home-based agent, translates into greater productivity and cost effectiveness. The proven benefits of telework for employees include job opportunities independent of location and the ability to improve their work-life balance by reducing the number of days in the week they have to commute to work. For many thousands of workers in our large cities, this can involve daily commute times of between three and five hours for those who live in the more affordable housing areas on the urban periphery with high environmental value, such as the Sunshine Coast, Moreton Bay and Gold Coast near Brisbane and the Central Coast, Blue Mountains, Southern
FE feature ATURE “41 per cent of workers take work home and about half those hours were unpaid.”
Highlands and the Illawarra near Sydney. This is especially true for working families with carer responsibilities for young children or older adults, with women now being the principal income earner in 1 in 4 households. While some organisations have outsourced services to call centres in low wage countries, principally India and the Philippines, others such as Westpac’s BT Financial Group, Canon, iiNet and Medibank have developed ‘work@home’ policies to provide help desk functions through home-based help desk staff, known as home-based agents. The BT Group’s ROI metrics report a 94 per cent engagement score for their home based agents. iiNet, Australia’s second largest ISP is set up as a virtual company, providing staff wherever they are located with online access to all of their corporate systems. Of Medibank’s 4,400 employees, 2,600 of them, including health professionals and help desk service workers, work as homebased agents. This trend is growing rapidly, and there is advice on how to do it well: http://www.telework.gov.au/kit The 2012 Australian Work and Life Index survey (Centre for Work and Life) found 41 per cent of workers take work home and about half those hours were unpaid. If telework is to deliver on improved work/ life balance, it is therefore important to distinguish between the use of digital connectivity to allow staff to work from home or another remote location instead of coming into the office and allowing staff to work from home or while travelling in addition to their work in the office, often referred to as ‘day extenders’. The most significant lesson from Telework Partners is that while technology enables virtual teaming, it is the people who make it work. Therefore, while it is important to get the right technology solutions that are appropriate to your business, attention to business strategy and culture is where you will get the dividends. This is particularly important if you are seeking to save on the cost of your downtown office accommodation by introducing activitybased-work (ABW) organisation, whereby
it is assumed that less than 80 per cent of employees will be in the office on any one day. Flexible use of space is combined with an emphasis on team collaboration to drive innovation and productivity, with work spaces are assigned according to changing activity rather than permanently assigned to functions according to status. Prominent Australian examples of the adoption of ABW include the GPT Group, Macquarie Bank, and the Commonwealth Bank of Australia in Sydney and Microsoft in Canberra, who report real estate savings of up to 30 per cent. Maximising the benefits of adopting telework as part of your flexible workplace arrangements requires an organisation to make this part of its corporate strategy, rather than an adhoc arrangement. This requires attention to the development of, or access to, telework training and culture change programs that address the following: • a focus on management by agreed task outcomes on a regular short term and medium term basis, rather than visual surveillance of staff at their desks and adhoc allocation of tasks; • the recognition that not all employees are suitable for telework, which requires a good understanding of your job and its responsibilities, an ability to plan and organise your work to meet agreed task outcomes, to have good communication skills using phone and other virtual technologies, and an ability to handle the extra dimension of virtual teaming; • as part of any transparent telework agreement, to have agreed communication protocols, WHS assessment of remote office environments and KPIs for regular reviews; • monitoring work/life balance to address any tendency for work to intrude unacceptably into an employee’s personal and family life; and • the provision of training to both employees and line managers to meet the demands of virtual teaming and running a home office.
In addition to the downloadable Department of Communications’ Telework Training Program, www.telework.gov.au/training for employees to implement telework is provided by many of our Telework Partners, including online training providers www. telework.gov.au/partners and through a range of industry associations as part of their Digital Business Kits – see: http:// www.communications.gov.au/digital_ economy/digital_business_kits. The Commonwealth Government’s support of digitally enabled anywhere working is part of its strategy to advance Australia as a leading digital economy. Working with its Telework Partner organisations and stakeholder engagement networks, the Government has highlighted the benefits of telework and its implementation challenges in a National Telework Week campaign in November 2012 and 2013. For further details contact Barbara Lepani, Stakeholder Engagement and Senior Policy Officer on: Phone: 02 6271 1692 Email: Barbara.lepani@ communications.gov.au 1 ACMA, Research Snapshot 3, October 2013 2 The Future of Regional Work Space, the Digital Work Hub Project, a collaborative Regional Development Australia Project (Sunshine coast, Moreton Bay, Brisbane, Logan/ Redland, Gold Coast), December 2013 3 Department of Finance and Deregulation, Flexible and Efficient Workplace Design Guidance, September 2013, Australian Government.
Business Franchise Australia and New Zealand 73
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X presso M obile Café
The Best Coffee. The Best Vans. The Best Decision You’ll Ever Make!
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FE feature ATURE “Our ambition is to deliver the finest coffee available in Australia to all work environments and events.” Why join Xpresso Mobile Café? With the head turning, fully customised and signed Mercedes Benz Vito van, complete with battery/inverter, refrigeration, commercial espresso coffee equipment and a coffee bean showcase with separate grinder, the business model and franchise system is proven and designed to help you operate your own successful business.
Xpresso Mobile Café is on a nationwide search for franchise partners in Australia. With a mobile coffee franchise system that’s exciting, cost effective and rewarding all at the same time, now is the perfect time to join THE ultimate mobile coffee experience. Xpresso has been around since 2002 and was the first company in Australia to put a coffee machine in a van. In 2013 the Xpresso concept evolved and Xpresso Mobile Café was launched. Under the guidance of Managing Director Jonathan Payne, alongside Xpresso founder Darren Schultz, Xpresso Mobile Café is aiming to establish itself as Australia’s number one mobile coffee system. Jonathan explains more, “With our exclusive license to use Di Bella Coffee and with Philip Di Bella as a proud Xpresso
Mobile Café ambassador, this allows us to sell the finest artisan coffee to a wide range of people. “We have truly raised the bar with regard to coffee quality. The days of ‘no name’ coffee in polystyrene cups are over. These days, customers expect more. Just because someone works in an industrial area, why shouldn’t they have access to the best coffee available? “Why should people that can’t visit a fixed location cafe not have access to the very best coffee? Our ambition is to deliver the finest coffee available in Australia to all work environments and events.” “As well as the exclusive territory given, covering a wide area of industrial areas, for the Monday to Friday business, you are also encouraged to attend events within your local and wider community, of which there are no boundary restrictions.” With the majority of franchisees plus the Head Office in Queensland, Xpresso Mobile Café is excited to have launched their first mobile cafe in Sydney, which hit the road mid February. With a population double the size of Brisbane, the growth potential is huge for Sydney with prime locations available.
“We have truly raised the bar with regard to coffee quality. The days of ‘no name’ coffee in polystyrene cups are over.”
The vans stock a wide range of the finest Di Bella Coffee beans that can be ground and bagged ‘on the spot’. Each mobile café has a coffee bean display cabinet from which customers can choose their favourite blend, which can then be custom ground, weighed, bagged, heat sealed and then purchased, on the spot. You’ll receive three weeks of training, stationery, initial stock, uniforms and an exclusive territory for your Monday to Friday business. The three weeks of training will give you the start you need towards your successful business. The first week is based at one of the state Di Bella Coffee roasting houses, where you’ll learn all about the leading specialty coffee company. The second and third week are spent on the road with a Barista and Mentor, who not only show you everything you need to know about making the finest coffees but will also show you proven processes and methods that will ensure your business is successful from its very first day. Jonathan adds, “Essentially the outcome of the three weeks of training is to not only give franchisees confidence in their business but to give them a working business generating income from the end of their third week of training. By this stage our franchisees will be selling approximately 70 cups per day with a goal of 100 per day. “This affords an excellent work/life balance, with the ability to work flexible hours and be close to home, creating a great income but with more time available for the kids or hobbies.”
From crop to cup® Di Bella Coffee supplies coffee to more than 1,200 cafés and restaurants around
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X presso M obile Café “We are looking for enthusiastic, committed, driven and positive people to join us as franchise partners.”
quality crops, ensuring they are grown and farmed under ethical and sustainable conditions.
Australia and it is rapidly becoming one of the most popular online coffee retailers in Australia. The Di Bella Coffee master roaster blends and roasts daily 11 signature blends, along with micro lots and single origins, all of which are thoroughly inspected to ensure only the highest quality coffee. To ensure you always receive the ultimate coffee experience, Di Bella Coffee only purchases the best beans from the world’s finest coffee growing regions. Xpresso Mobile Café choose to use Di Bella Coffee because of their well established ‘Crop to Cup’, green bean buying program. The program focuses on building skills locally, providing job security and growth opportunities for local workers, upholding ethical practices and encouraging sustainable farming. The initiatives that the program supports not only improve the quality of green beans, but the quality of life for those who produce them. Di Bella Coffee’s green bean Specialist travels to the coffee growing regions working directly with the growers who supply their coffee, to select the highest
Di Bella Coffee selects only the most responsible coffee growers and rewards them with prices that reflect the high quality of their crop. This in turn, affords the opportunity to implement positive changes for their workers, through respectful employment, healthcare and educational programs for them and their children.
A great Return on Investment with no hidden costs For an investment of $115,000 plus GST, this delivers a turn-key franchise operation, equipment, initial administration and a one off franchise fee. There is no percentage royalty fee and no upfront support fees – just a flat weekly service/license fee, and these are discounted for the first six months while you get up and running!
Xpresso Mobile Café franchisees Jonathan believes that Xpresso Mobile Café will establish itself as Australia’s number one premium, mobile coffee company. “We are looking for enthusiastic, committed, driven and positive people to join us as franchise partners. We have the best coffee product available in Australia but that can only take us so far. People buy into other people so when a franchisee pulls into a business or a community event,
76 Business Franchise Australia and New Zealand
you may be the highlight of their day so it’s good to be friendly. Our great products can take you so far but ultimately it comes down to the person they are buying their coffee from.”
Come and see the difference for yourself! So, ask yourself: • Are you ready to be home from work by 1pm? • Are you ready to earn a good, very good or great income? • Are you ready to be satisfied in your job and meet a whole range of customers that will soon rely on you? If the answer to any of these questions is yes, why not come and see for yourself what Xpresso Mobile Café has in store for Sydney. A fully equipped van will be at the Franchising Expo being held in Sydney between 28th – 30th March at the Royal Hall of Industries, Moore Park. With the management team on hand to answer every possible question you may have, there’s no better time to become part of this franchise family with its proven and profitable business model. If this sounds like the franchise system for you, contact Jonathan Payne directly on: Phone: 0433 095 996 Email: jonathan@xpresso.com.au Web: www.xpresso.com.au
W I
230 clients in the first 6 days. Up to 30 clients had to be turned away each day. 90% booked out until the end of month. Over $15,000 turnover (at normal prices) in the first 6 days. 60% of clients rebooking.
When you put a proven business model into a great location the results can be stunning. If youâ&#x20AC;&#x2122;re interested in a franchise check out our website www.brazilianbeauty.com.au Business Franchise Australia and New Zealand 77
feature
CHECK OUT THE BEAUTIFUL FIGURES COMING OUT OF OUR NEW FRANCHISE.
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Resolving
Franchise Disputes Franchise Disputes are often caused by: 1. Poor communication, for example where there are a number of franchisees in a system and a franchisor is unable to spend more than a short amount of time with each, or where a franchisee does not feel comfortable raising an issue with their franchisor. David Newton - Franchising Mediation Adviser, OFMA
2. Unrealistic expectations, both of the business and of what the franchisor can provide.
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3. Feelings of inadequate support and training, particularly where a franchisee’s background may not be in business, or in the franchise area. 4. Poor franchisee selection processes. Franchise disputes often concern: • Quality, price or delivery of products or services, recommended or required by the franchisor. • Failure of the franchisee to pay amounts due or a dispute over royalties. • Alleged misrepresentations, misleading
“We need to confront problems as soon as they arise and express them to the other person as soon as possible.” conduct or unconscionable conduct by the franchisor. • Territory. • Termination. • Contributions to an advertising fund or the use of these funds. • Rent or lease obligations. • Communication. • Disclosure. • Issues with following the franchise system. • Financial viability.
Negotiating Solutions to Franchise Problems
and about the other person. Tell the other person what you find good about them. • Briefly state the problem from your point of view – use neutral, non-blaming language – example: “We are losing money because…” not “You lied about how well this franchise would go for us”. • Listen carefully to what the other person says – ask them to disclose all the reasons for their point of view – restate them back to them to be sure you have it right. • Keep your cool – keep concentrating on the problem rather than blame the other person. • Take time out if necessary – have a break – come back another time.
Communication or negotiation is the main way we deal with problems. Ninety nine per cent of our problems are resolved this way.
• Acknowledge what the other person says – they will listen to you when they feel you understand.
We need to confront problems as soon as they arise and express them to the other person as soon as possible. Sitting on them can only make them worse or lead to resentment or suspicion.
• Assert in non-blaming language the problem from your point of view – give reasons and details.
Negotiation skills can be learned. Each culture or context in which they may be applied might be different, for example, negotiating on a building site is different from negotiating with a superior in an office environment. Negotiation skills also need to be applied differently according to the personality type you are dealing with. Here is a list of steps to take when negotiating to find a solution to problems, between franchisors and franchisees: • Negotiate with someone who has authority to do something about the problem. • Research and prepare your facts before negotiating. See ‘Getting to Yes’ by Fisher and Ury. • Look for what you value about the franchise, franchisor or franchisee. Do not be negative about everything. Focus on what is positive about the situation
• Focus on your needs and objectives, rather than your rights – for example, it may be important for a franchisee to cut their losses and leave the system rather than fight in court to try and recover their ‘entitlement’. • Try to understand the other person’s needs and objectives – for example, a franchisor may be prepared to agree to something only if it does not create a precedent involving other franchisees. • Try to identify realistic solutions that meet your needs and objectives and the other person’s needs and objectives. • Be prepared to consider more than one alternative.
Office of the Franchising Mediation Adviser (OFMA) The Office of the Franchising Mediation Adviser is a national, federally funded office which was established by the Australian Government in 1998 under the Franchising Code of Conduct. The Code is a Regulation under the federal Competition and Consumer Act. OFMA has a panel of experienced mediators across Australia and its role is to appoint mediators from that panel when requested to do so by any party to a franchise dispute. OFMA has no regulatory or enforcement role.
Mediation Mediation is like a structured negotiation where an independent third party, called the mediator, helps the parties work together to reach an agreement. The mediator facilitates the negotiation and creates a safe environment for the parties to address the problem. The mediator does not act as a judge or arbitrator. The mediator will not decide who is right or wrong. The mediator does not decide the case but may make suggestions for resolving the dispute. Mediation is a very effective way to resolve franchise disputes: • It may be able to repair or even save a business relationship and improve the communication between the parties for the future. • It provides an opportunity for the parties to better understand each other’s side of the dispute. • It also deals with all the issues at hand and helps the parties reach an agreement that best suits their needs.
• Agree on a solution you can at least live with bearing in mind what your other alternatives are.
• The mediation process is a quick one. It reduces the stress resulting from the dispute and enables the parties to move forward sooner than might otherwise be possible.
If negotiation does not work the first time try again – when negotiating with a franchisor try someone further up the line.
Another advantage of mediation is that it is considerably cheaper than most other dispute resolution processes such as litigation,
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“Though mediation is not a legal process, an agreement signed by the parties at the conclusion of the mediation is legally binding like any contract.” OFMA Statistics The OFMA has now received almost 5500 new dispute enquiries and made in excess of 1600 mediator appointments. The dispute settlement rate is approximately 75 per cent which includes cases where the mediator has assisted the parties to reach settlement prior to the mediation. OFMA also manages disputes between one franchisor and multiple franchisees where the franchisor consents to the matters being joined into the one mediation process.
Early Intervention Services arbitration or conciliation. Parties to a franchise dispute are often unable to afford litigation. Though mediation is not a legal process, an agreement signed by the parties at the conclusion of the mediation is legally binding like any contract. Mediation through the OFMA costs $275 (incl GST) per hour with up to a maximum of three hours of preparation time. These costs are shared equally between the two parties and are generally in the region of $1250 each plus any legal representation costs or room hire costs. This is a small fraction of the cost of court proceedings. You do not need to bring a lawyer to mediation but it is usually helpful to obtain legal advice first.
Part 4 of the Franchising Code of Conduct The dispute resolution procedures set out in Part 4 of the Franchising Code of Conduct cover disputes between parties to a franchise agreement. In other words, they will cover a dispute between a franchisee and a franchisor, but they will not apply to a dispute between a franchisee and a supplier, for example. To initiate mediation under the Franchising Code of Conduct a party must first send a letter or Notice of Dispute to the other party. OFMA has prepared a suggested format
for this document to help people who want to start the mediation process. Once the Notice of Dispute has been sent to the other party, the Code provides a 21-day period to enable the parties to resolve the dispute themselves prior to mediation. At the end of this time either party is free to contact OFMA in writing to request that a mediator be appointed. OFMA will appoint a mediator from its national panel of mediators within 14 days of receiving the request to appoint. Before confirming the appointment we check the general availability of the mediator and verify that there is no conflict of interest as the mediator must be neutral and impartial during the mediation process. Mediators are experienced in franchising matters. OFMA then sends confirmation of the mediator’s appointment to the parties along with the mediator’s contact details and a copy of the mediator’s resumé. Following appointment, the mediator will contact the parties involved in preparation for the mediation meeting. The mediator will either meet with the parties individually or discuss the dispute with them by telephone in order to gain an understanding of the issues and positions at hand.Mediations are normally held within four weeks of the mediator’s appointment.
Since January 2011 OFMA staff have been providing assistance to dispute enquirers giving them the opportunity to resolve the problem prior to the appointment of a mediator where the issues are relatively straightforward. This has taken the form of informing the respondent by telephone that an enquiry has been received and providing the respondent with an opportunity to resolve the matter directly, or with assistance through our office. Parties have found this to be an effective way to resolve these types of disputes. There is no cost for this service. David Newton has been the Franchising Mediation Adviser under the Franchising Code of Conduct since 1998. He is a solicitor, mediator, conciliator and facilitator of business, government and organisational conflict. The Office of the Franchising Mediation Adviser (OFMA) is a national office established by the Australian Government in 1998 under the Franchising Code of Conduct to assist to resolve franchise disputes. For further information: Phone: 1800 150 667 Web: www.franchisingmediationadviser. com.au
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TF33
QUALITY 1ST
JOIN TOOLFORCE, A FORCE TO BE RECKONED WITH! For some there comes a time when working for the boss just isnâ&#x20AC;&#x2122;t fun, or as rewarding as it should be. If youâ&#x20AC;&#x2122;re looking for an opportunity to be your own boss, with a proper business system that rewards you and your family for your efforts, look no further. Toolforce van operators sell high quality professional use tools including the most well-known and respected brands in the business. Backed by an effective marketing program including ongoing marketing and promotions, you and your trade customers will be the winners. Join the team of independent Toolforce operators who have never looked back! Call us today to discuss joining Toolforce.
02 9831 6555
BE YOUR OWN BOSS
avernon@newtools.com.au 1 Romford Road, Kings Park NSW 2148 Business hours: Mon - Fri, 8am - 5pm
www.toolforce.com.au Business Franchise Australia and New Zealand 81 TF3322.indd 1
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What happens if my franchisor decides to sell? It is not uncommon during the life of a franchise network for there to be a change in the ownership or control of the franchisor. This can occur as a consequence of planned family succession, a management buyout or one of the existing owners buying out one of the other existing owners. In extreme cases change in control or ownership may arise as a consequence of the insolvency of the franchisor. In most cases, however, it is due to the owners wishing to dispose of their ownership to a third party. A franchise agreement will usually contain a provision which expressly allows for a change in ownership or control of a franchisor to occur at any time without the need to obtain the consent of that franchisee. Existing franchisees, as well as parties who are considering buying a franchise, should be aware of the impact that a change of ownership or control of the franchisor can have on the franchise network.
Should franchisees be concerned with a change in ownership or control of the franchisor? Sometimes a change in ownership or control of a franchise network can cause a degree of concern to franchisees because: 1. they fear and do not understand the consequences to them of the change; 2. the new owners may not have the same reputation or offer the same supporting or nurturing culture and environment that was there when the franchisee originally joined the network;
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â&#x20AC;&#x153;If you are an existing franchisee or are considering buying a franchise, you should be aware that a change in ownership or control can happen.â&#x20AC;?
3. the new owners may already operate another similar business or operate a franchise network which is in direct or indirect competition to the existing franchise network (sometimes in close proximity to existing businesses); 4. the new owners may not have the same level of financial, human or physical resources to support the network as well as the former franchisor did;
can typically occur by virtue of:
5. the new owners may have a totally different strategic vision, direction or future plan for the network to the original franchisor, including expansion plans or wanting to introduce or phase out the involvement of master franchisees in the network;
(b) a transfer of the franchise agreements and other assets to another entity by way of a business sale or asset sale;
6. the owners may have a different attitude or way of dealing with franchisees in terms of breaches, credit terms, renewal, transfer, support, etc which can change the relationship;
(d) the appointment of an external controller such as an administrator if the franchisor becomes insolvent under administration.
7. the new owners may want to introduce changes, including changes to procedures, to introduce new fees or charges, or to change the brand or image which may come at a cost to the franchisee; or 8. the new owners may not honour commitments made by the former franchisor if they have not been agreed to in writing as a term of the franchise agreement. It can be extremely difficult and concerning to a franchisee to be confronted with the news that their franchisor is selling or transferring control of the franchise network, and the parties have to work through these concerns if they want a change to occur and be successful. Not every change in ownership or control results in a bad outcome. There have been many successful franchise systems that have blossomed under new ownership or control. However there are also examples where new owners have done the exact opposite. Franchisees should always approach a change of this kind with an open mind and get advice on how it may impact on them.
How does a transfer of ownership or control of a franchise network occur? Ownership or control of a franchise network
(a) a change in the underlying ownership or control of the franchisor entity;
(c) the appointment of a master franchisee to assume some of the rights or obligations of the franchisor under the franchise agreements; or
What obligations does a franchisor have on a transfer of the franchise network? The Franchising Code of Conduct (Code) does not really contain a clear process dedicated to transfers by franchisors. It has simply been left to the parties to agree what process will apply under the terms of the franchise agreement. As a consequence, procedures can vary greatly depending on the franchise system. The Code does however impose an obligation on a franchisor to give notice of a change in materially relevant facts to franchisees and any prospective franchisee within a reasonable time (not exceeding 14 days) after becoming aware of that change (see clause 18(1) of the Code). These materially relevant facts include a change in majority ownership or control of the franchisor (see clause 18(2)(a) of the Code) as well as a change in the ownership or control of the intellectual property that is material to the franchise system (see clause 18(2)(h) of the Code). The obligation to give a notice also extends to circumstances where the change in control is due to the franchisor becoming an externally administered body corporate (clauses 18(2)(g) and 18(4) require the franchisor to tell the franchisee of the appointment and the name and address of the administrator, controller or liquidator).
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Do I have to be consulted or be asked to give my consent? In most cases the franchise agreement will not impose that obligation on a franchisor, however commercially a purchaser will want to ensure that the entire network is supportive of the change. The purchaser is making a significant investment and their contractual commitment to buy may be dependent on the existing franchisor ensuring that the franchisees are happy and will agree to the change. In some cases, transactions are structured to ensure the franchisor must obtain the support of a specified percentage of the network to agree to the sale as a precondition to the sale completing or it may affect the purchase price payable.
Do I have to sign or receive anything? Usually the franchise agreement will outline if you need to sign or do anything. Most agreements do not impose any requirement for you to sign a document, although a purchaser may impose a condition in the sale contract that the franchisor has to get all (or a specified percentage) of the franchisees to sign documentation to evidence their agreement to the change in ownership. There may also be a clause in the franchise agreement that requires a franchisee to sign a deed of assignment or novation or other document such as a certificate to the purchaser that you have no claims against the franchisor. In many cases, you will not be asked to sign a document to give effect to the transfer or novation of your franchise agreement and the franchisor will simply enter into an agreement with the purchaser to assign the rights and assume the obligations under the franchise agreement and notify you of the change. Quite often a franchise agreement will provide that you specifically release the franchisor from ongoing liability for the
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“Not every change in ownership or control results in a bad outcome. There have been many successful franchise systems that have blossomed under new ownership or control.” performance of obligations that occur after a transfer or novation of the franchise agreement. Usually this is coupled with an obligation that the franchisor must obtain a deed or agreement from the purchaser expressed in favour of the franchisee that the purchaser agrees to be bound by the terms of the franchise agreement (by taking over the rights and assuming the obligations) with effect from completion. These deeds are often not required to be signed by you but may be expressed for your benefit.
Does the purchaser have to give me a disclosure document before it buys the network? The Code does not make it clear if and when a disclosure document has to be given to you before the network is transferred to a purchaser. In a share sale transaction, a disclosure document would not be required to be given before completion as the agreement remains with the current franchisor.
If the transaction requires the transfer or novation of the franchise agreements, then there is a widely accepted view that when the purchaser becomes the assignee or novatee, it is “entering into a franchise agreement” with the franchisee. If this view is correct, then the purchaser would be required to: (a) create a disclosure document; and (b) give to the franchisee the disclosure document, a copy of the Code and a copy of the franchise agreement it required the franchisee to sign at least 14 days before it entered into the franchise agreement (i.e. before it completed the transfer or novation of the franchise agreements). It would also be required to obtain from you the statements and certificates required under clause 11 of the Code. Irrespective of that view, clause 19 of the Code imposes an express obligation on a franchisor (which would include the
86 Business Franchise Australia and New Zealand
purchaser when it became the franchisor) to give a current disclosure document to you within 14 days if you make that request in writing.
Conclusion If you are an existing franchisee or are considering buying a franchise, you should be aware that a change in ownership or control can happen. Always check your franchise agreement to see how a franchisor handles this process and whether your consent or cooperation is required. Always seek appropriate legal advice. Derek Sutherland, Special Counsel, is a well regarded specialist in franchising law. He advises many well-known and successful franchisors, master franchisees, and franchisees in all areas of business. HWL Ebsworth offers the largest and most experienced team of legal experts in Australia in retailing and franchising. Offices are located in Brisbane, Canberra, Melbourne, Norwest, Perth and Sydney. Contact: Phone: 07 3002 6754 Derek Sutherland Phone: 03 8644 3542 Tony Garrisson Web: www.hwle.com.au/expertise/ retail-and-franchising.html
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As a former furniture/cabinet maker, Danny was confident ‘on the and found the transitionmaker, to fencing quite easy. Astools’ a former furniture/cabinet Danny was confident ‘on the However as he the hadtransition never owned his own business tools’ and found to fencing quite easy.before, he knew he would nd had the administration salesbusiness side a challenge, the However asfihe never owned and his own before, hesoknew 8 Week Paid training program was defi nitely an infl uencing factor he would find the administration and sales side a challenge, so thein his decision to buy. 8 Week Paid training program was definitely an influencing factor in time was right and I wanted to work for myself,” Danny said. his“The decision to buy. “During the training period as well as learning the practical, hands “The time was right and I wanted to work for myself,” Danny said. on side of it, I learned I needed to know to set up the business and “During themy training period as well as out learning practical, hands develop sales skills before I went in the the field.” on side of it, I learned I needed to know to set up the business and “From my a hands-on point of view, learning develop sales skills before I went out inthe thedifferent field.” techniques used when building different types and styles of fences was “From hands-onThe point of view, the different techniques very aimportant. trainer I hadlearning was extremely supportive, used when building different types and styles of fences was knowledgeable and very helpful.” very important. The trainer I had was extremely supportive, Danny Frood – Jim’s Fencing (Blackburn) knowledgeable and very helpful.”
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Digital Disruption
The Impact on Franchising Introduction
Richard Brodie - Partner, Deloitte Private
Digital disruption has been well publicised and many businesses have already felt the impact. In 2012 Deloitte, as part 2 of its building the lucky country series published Digital disruption, Short fuse, Big bang. This publication identified that one-third of the Australian economy was facing imminent and substantial disruption by digital technologies and business
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models. Whilst this poses a threat to many businesses, many have also seen this as a significant opportunity. This article will reiterate some of the main points in the 2012 Deloitte report, but this time with a focus on the impact on franchising. We will also share with you how our Deloitte Private professionals have used this information to reengineer our own business and the impact this is having on the way we interact with our franchise clients.
What is Digital Disruption? The 2012 Deloitte report talks about Digital Disruption in the following manner. In some ways, today’s innovations – broadband, smartphones, the cloud, the ability to analyse complex data sets, social media and other tools that make it possible to ‘digitise’ business processes – are just extensions of the computing and online advances of the past few decades. Yet it is a mistake to see the digital revolution as a function of technology rather than one of business evolution.
Figure 1: Deloitte’s Digital Disruption Map
Moreover, even as extensions of existing technologies, these innovations are powerful, pervasive and have multiple indirect impacts. Digital reduces barriers to entry, blurs category boundaries, and opens doors for a new generation of entrepreneurs and innovators. In turn, incumbent market leaders will face substantial pressures. For some, digital disruption will be explosive and immediate – a force that rocks the foundation of their business. For others less vulnerable to digital trends, the changes will be slower and more subtle. For others again, digital innovation will be the cornerstone for future value creation. So how did Deloitte assess digital disruption for each sector? Initially the following factors were considered: • The extent to which products and services are delivered physically • The propensity of customers to use digital channels • The importance of broadband and computing infrastructure in business operations • How mobile a company’s customers and workforce are, and their average age • The significance of social media and innovations like cloud computing • How digital innovation might be inhibited by government regulations or other factors. This gave a ranking of how different industries will be more or less affected and whether it will be soon or down the track. If this disruption is to occur within three years, then this is said to be a short fuse. Deloitte then assessed the size of the impact, or ‘bang’. This was defined as the expected change in percentage terms across a range
of key business metrics. Businesses that can expect to see a 15-50 per cent change in their metrics, such as a mix of revenue channels or cost structures will experience a ‘big bang’.
• Household goods (including furniture, electrical, hardware, building and garden supplies etc.) • Clothing, footwear and personal accessory • Department stores
What sectors are significantly impacted?
• Other retailing (including newspaper and book, recreational goods, pharmaceutical etc.)
The sectors identified as ‘Short Fuse, Big Bang’ represented 32 per cent of the Australian economy and included:
• Cafes, restaurants and takeaway food services.
• Retail Trade • ICT and Media • Finance • Professional Services • Arts and Recreation • Real Estate. As franchising is diverse and each of the above sectors will have a franchising impact, I wish to focus the remainder of this article on two of the above. Firstly, retail trade and then through the live example of Deloitte Private, the impact on professional services.
Retail Trade Retail Trade falls into the following categories: • Food (including Supermarket, liquor, and specialised food such as fresh meat, fish and poultry etc.)
There are also many and varied sub categories within each of these. A large proportion of franchised business falls into one of these categories. Generally, retail trade businesses face a relatively short fuse and an average magnitude of digital disruption. It is important to note that there will be a difference in both fuse and bang for the different businesses that comprise retail trade. For an assessment of your business, you can use the above factors that Deloitte used to assess fuse and bang. For example, entertainment goods stores will face greater and more imminent digital disruption, as opposed to supermarkets that face fewer direct threats from overseas players, due to the perishable nature of grocery goods and the relatively low value of many items, which means that online sales are still a low proportion of total grocery sales. However, I do note that Costco and
Business Franchise Australia and New Zealand 89
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S
“Franchisees often question why they are required to purchase a product from an approved supplier when they can buy the same product cheaper elsewhere.” Aldi are representing a major threat to more traditional Australian supermarkets. It will be interesting to see how digital disruption may be used to create a competitive advantage in this space. The other important factor to remember is that digital disruption has many dimensions other than sectoral. Location and size are also important. Many bigger businesses have faced relatively more disruption to date, meaning smaller businesses may face more incremental disruption from here. This has important implications for franchising as franchising consists mainly of smaller businesses. However, on a positive note, the collective power of a franchised network may result in the disruption presenting more of an opportunity against more independent businesses. However, the race is on between franchised businesses in the same sub sector to gain any competitive advantage.
The Deloitte 2012 report identifies three primary responses leaders can implement. Recalibrating cost structures – digitallypowered, low cost business in this sector will have distinct advantages moving forward. To compete, leaders will have to consider their people, supply chains and overheads. Replenishing revenue streams – This represents building new sources of revenue across segments, geographies and business models as legacy streams dry up in the wake of digital disruption. For many franchised businesses this may prove difficult, but if the disruption is large enough, competitors will take advantage of the opportunity and take market share from a slow to move franchise. A prime example of this is the book and publishing industry.
Franchise Systems So how do a franchisor and the individual franchisees within a network go about assessing the threats and opportunities of digital disruption against other businesses, including other franchised businesses?
Reshaping corporate strategies – this is a response where the business reconsiders assets, risk and corporate agility to position the organisation for success in an increasingly digital world.
The Cloud – A disruptor for Franchise Systems A major disruptor has been the cloud. To illustrate how digital disruption can shape a business, I will now demonstrate how technology (in particular the cloud) has impacted our own business, Deloitte Private. As a result of the digital disruption report Deloitte Private, which fits within the professional services sector, undertook a review of its own business. Deloitte Private has had a long history of acting for privately held businesses and their owners. The following key challenges and opportunities were identified: • Cloud based accounting software packages were beginning to have an impact on the market, with the main disruptor being Xero • This was beginning to change the way advisors interacted and serviced their clients • It was changing the way businesses structured their business architecture and the way in which they managed their business.
Figure 2: This model assists in identifying areas for focus from available responses and levers. 90 Business Franchise Australia and New Zealand
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“The real-time features may include 24/7 mobile access where franchisees will be able to log in anytime, anywhere via a laptop, tablet or mobile to access an up-to-date view of their financial position.”
In response to this, Deloitte Private established Deloitte Private Connect. This was then adapted to the franchising sector. Where in the past, Deloitte Private provided services mainly to franchisors, this disruption has provided efficiencies through the use of technology enabling franchisees and franchised systems to utilise the services of Deloitte Private. This offer comprises the Deloitte Private Portal which offers a real-time, single shared accounting system. Within the cloud, individual franchisee system requirements, including a fully integrated accounting system, point of sale, payroll inventory and other systems as required by the specific business form the basis of the franchisee business architecture. The real-time features may include 24/7 mobile access where franchisees will be able to log in anytime, anywhere via a laptop, tablet or mobile to access an up-to-date view of their financial position. Bank feeds are automatically uploaded to the cloud system, helping to ensure your data is accurate, complete and up to date. The portal includes a secure environment for document sharing and storage that can be accessed anywhere via cloud technology. Through the use of Optical Character Recognition (OCR), much of the previous manual data input now becomes automated. Business Activity Statements, payroll and payments approval happens via the cloud, as does any queries regarding unknown invoices. The cloud and in particular the Deloitte Private portal provides a secure environment for management reporting and other documents such a trust deeds, income tax returns and the like to be exchanged in the cloud. In the past, accountants have been very reactive. For many of their clients, particularly businesses the size of a typical franchisee, a review of the years trading does not occur until anywhere from two months to 11 months after year end (driven by tax obligations). With the adoption of cloud computing, this has changed forever. Now the accountant can work in a real time environment with the client. Xero’s approach in the cloud has also enabled other third party suppliers to innovate plug in modules across point of sale, payroll, inventory etc. In particular there are a number of products that deal with data
analytics. For a franchise system this may include a KPI scorecard, benchmarking and profit improvement. As these are fully integrated to the source accounting data and this is produced in a timely and accurate manner, these reports become very powerful for the business owner. And the best part, once all the reports are mapped, the initial production of these reports is efficient and cost effective. In fact, it is our experience that through the portal which includes the tools identified earlier, Deloitte Private is able to act for the franchisee as the bookkeeper, external accountant and strategy partner all in one. For no greater cost than what the business owner is already paying the bookkeeper and external accountant, the franchisee is now gaining more, as they now also receive the base data analytic reports. This is a prime example of the opportunities digital disruption can provide for both the service provider and the franchise systems. I have spoken to many businesses recently that are in industries where they feel the need to assess the impact of digital disruption. This discussion ranges from a simple technology based improvement, through to changing the underlying business model. It has been well publicised that business are now not only having to deal with change, as this has occurred since the inception of
92 Business Franchise Australia and New Zealand
business, but it is the ever increasing rate of the change. Best practice and a competitive advantage today may be long forgotten about in a matter of months (some may say weeks). Richard is a Deloitte Private partner based in Melbourne and has been involved with the franchise industry for over 17 years, both as an advisor to clients and roles within the Franchise Council of Australia. As one of Australia’s leading professional services firms, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Deloitte Private has over 80 partners and 800 dedicated staff, with offices in every state across Australia. They work with families and individuals who are passionate and hands on with their business. For further information contact: Phone: 03 9671 7474 Email: rbrodie@deloitte.com.au Web: www.deloitte.com.au Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.]
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How do I franchise my business? So you think you may like to franchise your business but are not sure if this is the right way to go or if your business is even suited to franchising. At Franchise Selection we see many concepts that struggle to expand or find franchisees once they are established, as they did not use a franchise consultant that understands franchisee recruitment. They may have just created a great set of franchising documents (or perhaps not so great) as there are franchise consultants and there are great franchise consultants. Secondly, the consultant should also ensure it is something that people will ultimately want to own and will leave their jobs for. We find the best franchisees are ultimately still employed but looking for that opportunity to start again, perhaps in an area that they have no experience of or formal training for, which is why they will be attracted to a franchise in the first place. The business also needs to have a sense of appeal, the best test for this is what we call the simplicity test. If the business is simple to explain and simple to run then you will normally find franchisees will be attracted to the model. This is really important when considering franchising your business as there is no point building something you can’t sell, the other alternative may be just to expand your company operations yourself. Just because a particular business can be franchised does not mean it should be franchised. Any business owner who is considering expansion would be well advised to assess whether franchising or companyowned expansion is a better alternative for growth before embarking on either strategy. But what kinds of factors need to be taken into account? And how do you go about making the decision? Perhaps the best way
to start is by understanding the relative advantages of each path, and the myths that surround them.
The Advantages of Franchising Franchising, as a growth vehicle, has several distinct advantages over the alternative of company-owned expansion. In a nutshell, people turn to franchising for four reasons: capital, motivated management, speed of growth and reduced risk. First of all, since the franchisee provides all the capital required to open and operate a unit, it allows you to grow using the resources of others. By growing using other people’s money, you’re virtually unfettered by capital when it comes to your ability to grow. Moreover, since franchisees are highly motivated by the investment of their own money, combined with the fact that you’re usually compensated based on the top line (with royalties) instead of bottom line performance, you’ll probably have far fewer problems managing your growth. And since the addition of each new franchisee brings another ‘body’ into the organisation, you can also leverage off of the efforts of these franchisees when it comes to site selection, lease negotiations and other startup functions - allowing you to grow with fewer internal resources as well. The combination of these factors provides you with another significant benefit: reduced risk. You can grow to hundreds or even thousands of units with a limited investment and without spending any of your own capital on unit expansion.
Debunking the Myths Franchising also harbors its share of misconceptions. The first and foremost among these misconceptions is that franchising is a legal minefield simply waiting to explode on some unsuspecting franchisor. The fact of the matter is that franchising
94 Business Franchise Australia and New Zealand
Kevin Bugeja - Managing Director, Franchise Selection
need not be any more litigious than any other endeavor and, in fact, may be considerably less so. But let’s face it we are becoming a more and more litigious nation and anyone can sue anyone else for seemingly anything including the coffee spilled on one’s lap - so there is no absolute proof against litigation but it is interesting to note that less that 4 per cent of the nation’s franchisors were involved in any kind of litigation with franchisees last year. That said, it is important to understand a few reasons why franchising is actually less prone to litigation. First of all, the typical franchise agreement is a very one-sided document. And, if written by a lawyer who specialises in franchise law, it is likely to afford you a great deal of protection. Over the years, the litigation centering on franchising seems to have come in waves. Some years ago, there were a number of cases involving the proper use of advertising funds. As decisions were reached and case law established, we saw fewer and fewer such lawsuits. Later, we saw several lawsuits on the issue of territorial encroachment. And again, as decisions were reached and case law established, fewer such lawsuits occurred. Why have these lawsuits subsided? Because the lawyers who specialise in
“If the business is simple to explain and simple to run then you will normally find franchisees will be attracted to the model.” franchising have followed these cases closely and have learned how to write clauses in their contracts that allow franchisors to avoid such litigation. The fact is, the franchise agreements that are written today afford you even more protection than those written a decade ago - as long as the right lawyer is drafting the agreement. The two issues that always remain ripe for litigation, of course, are violations of the franchise code and fraud in the inducement of selling a franchise. But even these issues can be largely inoculated against. First and foremost, train all your people on franchise law and, of course, hire a good franchise lawyer. Be sure everyone on your staff is scrupulous in their honesty. Mystery shop your recruitment team and, of course, ask each and every franchisee in their closing interview about the recruitment process and any representations that were made. Many franchisors will use a written ‘representations checklist’, and some have gone as far as recording those interviews. And, lastly, institute a no tolerance policy if you do find any infractions. On the upside, franchising affords you a significant ‘liability tradeoff’. In other words, when making a decision about franchising versus company-operations, you need to consider the litigation exposure you are avoiding as a part of this same equation. Yes, as a franchisor, you gain some potential contractual liability with each franchise agreement you sign. Every time you sign any contract, of course, you’re obligated to live up to the letter of that document. And while these documents are one-sided, there is no denying the potential liability. But consider the alternative of companyowned operations. With company-owned operations, you have the liability for every lease you execute - whether it’s for equipment, a vehicle or a building. In franchising, that liability is the franchisees. With company-owned operations, you have the liability for every employee you hire - personal injury, sexual harassment, discrimination, employment law, crime in the workplace, the list goes on and on. Again, with franchising, that employment liability is largely that of the franchisee. The same
holds true for customer liability - everything from breach of contract to personal injury. To be clear, franchising may not stop someone from suing you, but if you have a well-written contract and a well-written operations manual (allowing you to avoid claims of negligence and inadvertent agency), the liability will likely be limited to the franchisee. Add to that other protections (such as the requirement of the franchisee to obtain insurance coverage and name the franchisor as the co-insured), and it becomes readily apparent that significantly more liability is associated with the growth of an equal number of company operations. The second big myth in franchising involves control and the improved unit-level performance that some argue comes with it. Control advocates believe the ability to terminate employees at will is a big advantage, and, of course, with company operations, you can hire and fire at your own discretion. While you have a great deal of control over unit operations in a franchise, terminating a franchisee is certainly more difficult. We would argue, however, that the ability to terminate does not equal improved unit operations or brand performance. Both independent studies and our own observations of franchisors have repeatedly shown that similarly-situated franchiseeoperated sites typically outperform their company-owned counterparts in almost every imaginable category - from revenue
to perceived cleanliness to customer satisfaction.
Why? Two reasons: First, franchisees are highly motivated and take a pride of ownership that is difficult to instill in someone with nothing on the line. Their franchise is their business, and thus they usually keep it cleaner and run a tighter ship than their non-franchisee counterparts. Instead of constantly training and re-training and hoping for the best, franchisees develop a depth of knowledge and experience that is virtually impossible to replicate in a company-owned operation at the unit level. But while franchisees not performing up to your standards can always be terminated, of course, the process can be slow. And if you have a franchisee living up to the letter of the agreement and operations manual, termination will not be an option. This is why the process of franchisee selection is so important to franchisors. If you choose the right franchisee, these issues likely never arise. Choose the wrong franchisee, and you may need to live with your mistake for years. Kevin Bugeja, Managing Director Franchise Selection Phone: 1300 FRANCHISE (372 624) Email: kevin@franchiseselection.com.au Web: www.franchiseselection.com.au
Business Franchise Australia and New Zealand 95
fr anch isi ng e x po
A world of opportunities
under one roof Finding a franchise that ticks all the right boxes is so much easier when you can compare many different businesses under one roof. That’s why the Franchising & Business Opportunities Expo, which opens in Sydney 28-30 March, is the first stop for anyone planning to buy their first franchise, expand their network, or franchise their existing business. “The internet is a great way to research different opportunities, however nothing can replace a real person explaining their business to you,” says Exhibition Manager Fiona Stacey. “Also a lot of people find that they come across franchises they never knew existed at these shows.” Stacey adds that visitors to the show not only benefit from meeting franchisors on the stands, but also from listening to experts present informative sessions as part of the
free seminar program. One such expert is Jane Lombard, a master franchisee and consultant from The Franchise Shop, who will be presenting a seminar about master franchising and how it works. “There are currently some excellent opportunities in the marketplace to purchase master franchises,” she says. “The seminar sessions are all very informative, offering everything from basic information to real life discussions with franchisors and franchisee panels, so there is really something for everyone, adds Lombard. “Visiting the show provides people with fantastic opportunities to gather information and research, but more importantly meet face to face with the people representing the franchised systems in the room.” Kym De Britt, General Manager of the Franchise Council of Australia, agrees. “The importance of being able to meet franchisors and their staff, to experience their passion, and often interact with franchisees, is an opportunity not to be overlooked,” he says. “One of the fundamental ingredients for success as a franchisee is brand passion and culture fit. Being able to speak face to
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face with franchisors and compare several businesses under one roof is incredibly valuable. “Add to that the extensive experience of other professionals working in franchising, the additional support services like FCA and wider resources available on the day, and the expo is an event not to be missed by anyone serious about investing in a franchise.” De Britt says franchising has been consistently recognised for many years as an incredibly successful way to do business. “The support of a network of likeminded small business owners, along with the assistance and experience of a franchisor, and proven robust business systems ensure franchises businesses have a greater likelihood of success than independent small businesses,” he says. The Franchising & Business Opportunities Expo will be held at the Royal Hall of Industries at Moore Park in Sydney’s Eastern Suburbs. “This venue is only 10 minutes from the CBD, with easy access by car or public transport, and cheap or free parking,” says Fiona Stacey. “Entry is free if you pre-register online, and there is an abundance of information available on every aspect of being your own boss,” she says. “It’s really time to stop dreaming and start doing.” The Sydney Franchising & Business Opportunities Expo is on Friday 28 March – Sunday 30 March 2014 at the Royal Hall of Industries at Moore Park. Entry is $15 at the door or free with pre-registration. Sydney’s show will be followed by the Brisbane Franchising & Business Opportunities Expo 19-20 July at Brisbane Convention & Exhibition Centre, and the Melbourne Franchising & Business Opportunities Expo, 22-24 August at the Melbourne Exhibition Centre. For more information and free registration go to:
See many business opportunities all under one roof at the Franchising & Business Opportunities Expo.
96 Business Franchise Australia and New Zealand
Web: www.franchisingexpo.com.au
Business Franchise Australia and New Zealand 97
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h ot topics
Behind the
headlines Australia Post to raise stamp price amid bank license and reduced delivery claims Following recent media speculation about any possible privatisation of Australia Post, the government-owned entity has again come under the spotlight amid claims that it could be issued with a banking license to compete with the existing ‘big four’ Australian banks. While the banking suggestion has been made by the Communication Workers Union, the business is also staving-off suggestions that it will wind back mail deliveries to three times a week following a survey of customers. Meanwhile, Australia Post is also seeking federal government approval to increase the cost of postage for a standard letter from 60c to 70c in what would be a 17 per cent price hike, but which still is lower than the comparitive cost of postage in most other developed nations. A Senate inquiry conducted late last year into the operations of Australia Post is yet to present its findings.
Gloria Jean’s sold to Singaporean directory business Gloria Jean’s Coffees and its global supply chain, as well as master franchises, and Gloria Jean’s and It’s a Grind intellectual property has been sold in a $35.6 million deal to listed Singaporean database and directories company, Global Yellow Pages Ltd. The announcement of the sale of the 17-
year old Australian-owned business will transfer control of the brand’s 800 oulets in 39 countries to a business that traditionally publishes directories and compiles databases, but which has recently commenced a strategy of diversifying into food businesses. The sale includes a combination of cash and Global Yellow Pages shares, and is being partially funded by a rights issue. Gloria Jean’s executive chairman Nabi Salleh will continue to be involved with the business.
Franchisor sues US government for damage to reputation A franchisor is suing the the United States Department of Labour for damaging the reputation of the franchise’s brand and for arbitrarily classifying volunteers who work in the franchise as employees. The chain, Rhea Lana, has 63 franchisees throughout the US and conducts giant consignment sale events for children’s clothes and toys, similar to events conducted by charities in Australia. Volunteers are given early entry to the event and first pick of the items for sale, in return for helping out, however the US Department of Labour has classified the volunteers as employees, and stated that they are all entitled to back pay at the minimum wage rate.
Jason Gehrke, Director, Franchise Advisory Centre.
in Sydney offering a McDelivery service of family value meal packs between 5pm and 9pm, seven days a week. However the service has been criticised as an incentive to eat food high in saturated fat and salt, and the choice of North Parramatta has also come under fire for its high proportion of obese adults, according to a media report. The family value packs do not offer McDonalds’ healthier range of menu items, and requires a minimum order value of $25. The fast food chain currently offers home delivery in several Asian countries.
Harvey Norman franchisees fined $30,000 each for consumer breaches The Federal Court has issued fines of approximately $30,000 each to five Harvey Norman franchisees where were found to have misled customers about their rights to refunds, or to have defective products repaired or replaced. The stores in Tasmania, Victoria and New South Wales were handed fines ranging from $28,000 to $32,000 each, and were also ordered to display in-store corrective notices and undertake a consumer law compliance program.
McDonald’s trials home delivery in Sydney
A further five Harvey Norman franchisees are alleged by the ACCC to have engaged in misleading consumers about their rights, with judgements pending in those cases.
McDonald’s is trialling home delivery in Australia, with the North Parramatta outlet
The ACCC alleged that the franchisees engaged in misleading or deceptive conduct
Business Franchise Australia and New Zealand 99
h ot topics
by making false or misleading statements to consumers about their rights under the consumer guarantee provisions of the Australian Consumer Law (ACL). Proceedings against all the franchisees were originally launched in the Federal Court in New South Wales in November last year, were disallowed as a group action, and susbequently relodged against each respondent in their respective home state. The ACCC did not allege that the franchisor of Harvey Norman was involved in making the representations.
Salsa’s gives away a free Melbourne franchise in radio competition A couple from the Melbourne suburb of Bacchus Marsh have won their own Salsa’s Mexican-food franchise in a competition held by Salsa’s parent company Retail Zoo and Melbourne radio station Mix 101.1 FM. The couple won the franchise during a live broadcast from the Bridge Road, Richmond store on November 29 after completing a
Salsa’s weekend boot camp along with two other finalists.
operations, but is in discussions with those franchisees about their next steps.
To enter the competition, Mix 101.1 FM listeners were required to register on the station website, then call when their name was broadcast to register for the boot camp. Finalists were then selected at the camp.
Competitive Foods divests KFC outlets
The winner is granted a license to operate the store for six months, after which they will be required to sign a franchise agreement and continue to operate the store as their own, or vacate the premises and accept a $50,000 cash prize.
Super Retail Group buys fitness franchise assets Listed Australian company Super Retail Group, owner of Supercheap Auto, Rebel Sports and several other retail brands, has bought the brand name, intellectual property, inventory and store assets of former fitness franchise Workout World. Super Retail Group is also taking over 21 of Workout World’s 26 company-owned stores, as well as a number of employees and employee entitlements. However it is is not taking over Workout World’s franchised
100 Business Franchise Australia and New Zealand
Competive Foods, the parent company of Hungry Jacks, has sold its 44 KFC outlets in Western Australia and the Northern Territory to listed Queensland-based KFC operator Collins Foods for $55.6 million. The deal brings to an end the involvement with KFC of Hungry Jack’s founder and franchise pioneer Jack Cowin, who made his start in Australian franchising by securing the rights to KFC for WA and the NT in 1969. The deal also ends a long-running dispute between Competitive Foods and KFC parent Yum! Brands. Collins Foods operates 125 KFC outlets mainly in Queensland, and listed two years ago, however its share price halved within months of listing, and is currently trading at around $1.78, down from its list price of $2.50. The company also owns 27 Sizzler restaurants and plans to open another 25 to 30 KFC stores in WA over the next 10 years.
PROFESSIONAL SERVICES LISTINGS
Madgwicks Lawyers
Revive Projects
77-79 Canterbury Road, Canterbury VIC 3126 Level 33 140 William Street Melbourne VIC 3000 P 03 9242 4744 F 03 9242 4777 Contact Ed Browne E franchising@madgwicks.com.au www.madgwicks.com.au Madgwicks’ Franchising team has experience across a variety 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: • Franchise agreements and disclosure documents • Advice on business structures appropriate for franchise systems • Franchising Code of Conduct Compliance
• Trade Practices advice including ACCC notification/authorisations • Acquisition, disposal, joint venture and partnership advice • Supplier and terms of trade agreements • Workplace Relations
• 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.
Wisewould Mahony Lawyers
Wisewould Mahony Lawyers 419-425 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
P 1300 836 863 F (+613) 9886 5371 Contact Maria Abadilla E admin@reviveprojects.com.au www.reviveprojects.com.au
TACTICAL PR & MARKETING FOR YOUR FRANCHISE If you’re a franchise or considering expanding your business into one, you need solid marketing support. In-house marketing is expensive, and with a small in-house team it may be hard to keep the idea-well fresh all the time. Revive Projects has been helping franchises attract, engage and retain customers since 2007. Our multi-talented, hand-picked team of senior marketing executives, copywriters and PR specialists develops integrated and outcome-focussed solutions by catering to your unique business needs. As our clients, you get: • Increased visibility among your prospects • Franchise sales acquisition support
• New market entry plan and execution • Targeted Local Area Marketing • Advertising & Promotions • Online marketing strategy
• Web and copywriting that converts
• Social media training delivered to your team
• Raise your Public Relations profile when you don’t have the time to do it.
Contact us today to discuss how we can support your business ATTRACT - ENGAGE- AND RETAIN your customers.
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Professional services listings are a great way to promote your business for more information call 03 9787 8077 (+61 3 9787 8077 from outside Australia) and speak to one of our sales executives. www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz
Business Franchise Australia and New Zealand 101
FRANCHISE LISTINGS FRANCHISE
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
ALLPHONES
AUSTRALIA’S LARGEST INDEPENDENT MOBILE PHONE RETAILER
100
-
Various
Various
ELECTRICAL TEST AND TAG
40
FCA
$35,000
$47,000 + GST + Vehicle
DRUG TESTING & EDUCATIONAL SERVICES
20
-
POA
POA
RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES
80
FCA
$49,900 + GST
$250,000 + GST
FITNESS & PERSONAL TRAINING
1
FCA
-
$250,000
BEAUTY AND CUSTOMER SERVICE EXCELLENCE
17
FCA
$45,000
$250,000 $350,000
PREMIUM CAFÉ FRANCHISE
9
Franchise Council of Australia
$45,000 + GST Incl. Training
Dependent on Site conditions $250k$450K
SKIN CARE, BEAUTY INDUSTRY
160+ Nationally
Franchise Council of Australia (FCA)
$22,000
$100,000 - $300,000
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
AUSTRALIA’S LARGEST BOOKKEEPING FRANCHISE
150+
FCA, AAT, ICB
$36,000 + gst
$36,000 + gst
RESIDENTIAL PROPERTY MANAGEMENT
1
-
$35,000 (GST inc)
$110,000
HAIR & BEAUTY – RETAIL & SERVICE
140
FCA
$66,000 plus GST
$400,000 plus SAV for Greenfield sites
MANUFACTURERS & DISTRIBUTORS OF MEDICAL DEVICES
60+
AMA & Aus. Health Funds
Nil
$4,500
CAFÉ FRANCHISE
68
FCA
$60,000
$300,000 $400,000
PROPERTY INSPECTION SERVICES
1 Franchisee/ 2 Company Owned
FCA
-
$25,000
FENCE INSTALLATION SERVICES
APPROX 150
MBA, FCA
Included in Purchase Price
From $50,000 + GST
HAIRDRESSING
175 across Australia & New Zealand
FCA
$38.5K
$160K-$240K
DOMESTIC & COMMERCIAL CONCRETE EDGING
300+
-
POA
POA
COFFEE SPECIALISTS
7
-
-
$180,000 min + GST
Level 7, 3 Rider Blvd, Rhodes NSW, 2138 Ph: 13 8000 Website: www.allphones.com.au
APPLIANCE TAGGING SERVICES
80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
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
BRAZILIAN BEAUTY (AUST) PTY LTD
45 Crosby Road, Albion QLD 4010 Ph: 07 3262 8984 Fax: 07 3857 6212 Email: headoffice@brazilianbeauty.com.au Website: www.brazilianbeauty.com.au
CREMA ESPRESSO
118 Varsity Parade, Varsity Lakes QLD 4227 Ph: 07 5562 5516 Fax: 07 5562 5543 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au
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
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 362 994 Fax: 07 3203 4178 Email: info@fibrenew.com.au Website: www.fibrenew-franchising.com.au
FIRST CLASS ACCOUNTS
Suite 8, 34-36 Glenferrie Drive, Robina QLD 4226 Ph: 1800 118 611 Fax: 07 5578 9028 Email: info@firstclassaccounts.com Website: www.firstclassaccounts.com
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
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
HIDOW AUSTRALIA Unit 18/38 Kendor Street, Arundel, Goal Coast QLD 4214 Ph: 1300 911 442 Email: sue@hidow.com.au Website: www.hidow.com.au HUDSONS COFFEE
Level 6, 257 Collins Street, Melbourne VIC Ph: 03 8631 7700 Fax: 03 8631 7799 Email: franchise@hudsonscoffee.com.au Website: www.hudsonscoffee.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
JIM’S FENCING
PO Box 686 Mount Martha VIC 3934 Ph: 131 546 Email: franchise.sales@jimsfencing.net Website: www.jimsfencing.net
JUST CUTS™
Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 1800 334 498 Fax: AUS 02 9527 5144 Email: bdm@justcuts.com Website: www.justcuts.com
KWIK KERB
PO Box 103, Mt Ommaney QLD 4074 Ph: 1800 773 231 Fax: 07 3717 6777 Email: kkinfo@kwikkerb.com.au Website: www.kwikkerb.com.au
LAVA CARTS PTY LTD
PO Box 3, Mooloolaba QLD 4557 Ph: 0458 202 649 Email: manager@lavacarts.com.au Website: www.lavacarts.com.au
102 Business Franchise Australia and New Zealand
FRANCHISE LISTINGS FRANCHISE
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
LISTEN TO READ
TUTORING AND MULTISENSORY READING INSTRUCTION
3
Franchise Council of Australia
$12,000
-
BOUTIQUE FISH & CHIPS
2
-
$35,000 + GST
$350,000 + GST
FAST FOOD OVEN ROASTED CHICKEN
370+
FCA
$50K
$450K+
MATTRESS RETAILER
23
Bulky Goods Assoc/FCA
$40,000
$180,000 - $220,000
MOBILE TOOL AND EQUIPMENT STORE
164
FCA, FANZ
$50,000
$37,000 with Snapon finance
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
LOCAL MARKETING
250+ in UK & AUS
-
$9,995 + GST
Dependent on territory
MOBILE CONCRETE SAWING
9
FCA Member
$45,000
Initial fee + vehicle
AUTOMOTIVE TOOL SALES
15
-
N/A
$40,000
REAL ESTATE PHOTOGRAPHY
N/A
FCA
$39,950 plus GST
$39,950 - $60,000
TRADE & INDUSTRIAL TOOL RETAILER
40
FCA
$50K
POA
GLASS RESTORATION AND PROTECTION
8
-
$35,000 + GST
$55,000 + GST
DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS
1100
FCA
$17,500
$25,000
DI BELLA COFFEE MOBILE ESPRESSO VAN
28
FCA (pending)
$110,000 + GST (in total)
$110,000 + GST
2 Flagstaff St Engadine NSW 2233 Ph: 1300 473 234 / 0410 618 472 Email: hello@ListenToRead.com.au Website: www.ListenToRead.com.au
OCEANMASTER INTERNATIONAL PTY LTD
43/52-58 Parramatta Road, Homebush NSW 2044 Ph: 1300 OCEANMASTER (623266) Fax: 1300 623 286 Email: info@oceanmaster.com.au Website: www.oceanmaster.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
SLEEPY’S PTY LTD Unit 9/16 Metroplex Avenue, Murrarie QLD 4172
Ph: 07 3895 4100 Fax: 07 3395 6096 Email: guy.elliott@mattressinvestments.com.au Website: www.sleepys.com.au
SNAP-ON TOOLS (AUSTRALIA & NEW ZEALAND) PTY LTD 80 Holbeche Road Arndell Park NSW 2148 Ph: 1800 762 766 Email: les.coppin@snapon.com.au Website: www.snapontools.com.au Facebook: www.facebook.com/SnaponToolsAustralia
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
THEBESTOF
PO Box 951, Flagstaff Hill SA 5159 Ph: 08 8358 6112 Email: emma@thebestof.com.au Website: www.getthebestof.com.au
THE CONCRETE CUTTER (FRANCHISING) PTY LTD 2 Cormorant Parade, Pakenham VIC 3810 Ph: 0499 399 355 Email: bruce@theconcretecutter.com.au
TOOLFORCE (Newtools Australia)
1 Romford Road, Kings Park NSW 2148 Ph: 02 9831 6555 Fax: 02 9831 6996 Email: avernon@newtools.com.au Website: www.toolforce.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
TOTAL TOOLS
5B, 730 Lorimer St, Port Melbourne VIC 3207 Ph: 03 9261 1934 Fax: 03 9261 1995 Email: newstores@totaltools.com.au Website: www.totaltools.com.au
UNSCRATCH THE SURFACE
Level 10, 50 Market Street, Melbourne VIC 3000 Ph: 1300 500 408 Fax: 03 8677 6962 Email: unscratchthesurface.com.au www.unscratchthesurface.com.au
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
A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au
Business Franchise Australia and New Zealand 103
A-Z FRANCHISE DIRECTORY allphones With over 100 locations across Australia Allphones is the largest independent telecommunications retailer consisting of company owned, licensed and franchised stores. Allphones started trading as a single store in Mile End, South Australia in 1989. After moderate growth in the early 90’s the business moved into franchising and the operation grew in South Australia to 15 stores. In 1999 the master franchise
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 either Master or 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-
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
AUSTRALIA AND NEW ZEALAND
rights were purchased for Western Australia and the first store in W.A was opened in May 2000. Late in 2000, the rights to the franchise system were purchased. During 2001, the group moved into the eastern states opening the first store in Hurstville, NSW. Since that time the group has continually grown and is now a truly national company, operating in WA, NSW, VIC, SA, QLD and NT. For more information and to register your interest, visit allphones.com.au/franchise ot phone 13 8000.
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
purchase/pre-occupancy property 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. 80 stores Australia-wide and growing! After over ten years of operation, Battery World continues to be one of Australia’s most powerful retail battery franchises. For more information about Battery World contact 07 3373 1764 or visit www.batteryworld.com.au/ franchising
business franchise australia and new zealand
For more information call 03 9787 8077
A-Z Listings are a great way to promote your
www.businessfranchiseaustralia.com.au or
business.
www.businessfranchisenz.co.nz
104 Business Franchise Australia and New Zealand
(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to
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. Bodiez uses the traditional personal trainer system
Brazilian beauty Welcome to the Brazilian Beauty franchise model where beauty and brains meet. Proven to have successful franchisees from an array of backgrounds embracing the beauty industry and the Brazilian Beauty brand to create profitable lifestyle businesses that engage, challenge and motivate. Proven operational systems, award winning marketing and advertising; team and individual guidance; training and personal development;
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. For more information contact James or Nick at Franchise Recruitment Solutions on 1300 642 575.
weekly in salon and monthly group meetings are all part of the package. “At Brazilian Beauty we work together to share our knowledge, ideas, passion and goals to gain a competitive advantage over all other beauty competitors.” Francesca Webster, founder. Visit us at www.brazilianbeauty.com.au and www.salonfranchise.com.au. Call 07 3262 8984 today and take the first steps towards making your business dream happen.
business franchise australia and new zealand
For more information call 03 9787 8077
A-Z Listings are a great way to promote your
www.businessfranchiseaustralia.com.au or
business.
www.businessfranchisenz.co.nz
Crema Espresso
of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising.
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
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.”
(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND
“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
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 www.franchise.ellabache.com.au
Business Franchise Australia and New Zealand 105
A-Z FRANCHISE DIRECTORY FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great
FASTWAY COURIERS AUSTRALIA
Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email reception@fastapasta.com.au, or visit our website, www.fastapasta.com.au
• Low start up costs
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au
• No weekend work
*Conditions apply
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FASTWAY COURIERS New Zealand
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change we’d love to hear from you. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz
Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy • Guaranteed income package*
AUSTRALIA AND NEW ZEALAND
opportunity to be part of our winning national organisation.
Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income packages* • Low start up costs • No weekend work
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. Withthe diversity of all these opportunities across so
106 Business Franchise Australia and New Zealand
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*Conditions apply
many markets, our company and franchisees have grown and thrived through every riseand 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
FIRST CLASS ACCOUNTS First Class Accounts is Australia’s leading bookkeeping franchise with over 150 franchisees nationally. We are looking for motivated individuals who wish to develop their own business while being part of a supportive nationwide network. First Class Accounts operators take pride in delivering a range of services to help small and mediumsized businesses work smarter through delivery of accurate bookkeeping services, timely management reporting, compliant tax and statutory returns, set-up of accounting software and cash flow management.
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
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
HiDow Australia HiDow Australia, manufacturer and wholesaler of the painPod medical devices in Australia and globally, TAPS ITS’ MARKET like no-one else – and it feels oh-so-good! As seen on ACA & Today Tonight, the painPod provides fast-acting, DRUG FREE pain relief, improving mobility and quality of life of our Aussie sufferers! Most sort after pain relieving medical device, fully portable. Don’t miss your chance to secure a FREE distributorship in your area. NO franchise fees! HiDow is now poised for rapid growth in all states,
hudsons coffee Looking for a better work/life blend? Whether it’s the sound of milk frothing, the lingering coffee aroma, or the taste of a perfect espresso, there are fewer pleasures than the perfect coffee. At Hudsons Coffee, we’re looking for business partners that share our passion.
We provide nine weeks extensive training via both correspondence and live-in training, after which you will be licensed to commence business as a First Class Accounts business owner. The training is conducted under the supervision of a registered training organisation and upon successful completion, you will receive a Certificate IV in Financial Services (Bookkeeping). You will be able to provide BAS services under supervision while you work toward gaining your own accreditation as a BAS agent. For further details call 1800 118 611 or email info@firstclassaccounts.com
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
• 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
HUGE profit margins, INCREASE your business potential without increasing overheads and costs. • Minimum setup • Full support and training • Exclusive products • Health Rebates Apply Ready for the next BIG thing? No experience necessary Get involved in something BIG! NO Franchise fees: Secure your area today call Sue Lamb on 1300 911 442 or email sue@hidow.com.au for a FREE Information Pack! EXCLUSIVE AREAS AVAILABLE CALL NOW!
www.hidow.com.au
matching the right franchisee to the right site is imperative. This has resulted in a dynamic, satisfied team of franchisees that share like-minded business goals, and are a great support network for one another. Looking for the top job? Take the Espress route.
Tired of counting someone else’s beans?
Our property team will work with you in selecting sites in a range of areas including central business districts, hospitals and regional areas.
We believe that behind every great coffee is a great person with a real passion for real coffee, just like us! We place great importance on franchise selection,
So, if you’re interested in becoming your own boss, contact our Franchise Department on 03 8631 7700 to find out more.
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A-Z FRANCHISE DIRECTORY Inspect My Home As a leader in the property inspection industry inspectmyhome is fast becoming a recognisable brand across Australia and is now franchising its business model and systems. We Offer - A generous exclusive territory area - Computerised booking system and database - Electronic reporting systems - Full onsite training to obtain Pest Inspectors License - Telephone Support/IT Support/Marketing Assistance - Personalised web pages linked to
Jim’s Fencing Jim’s Fencing franchise opportunities were launched in 1997, initially in Melbourne; to date Jim’s Fencing is Australia wide with approx 150 franchise owners of which includes contractors (who work for the franchise owners) building fences every day of the week. Due to the over supply of work which we cannot service Australia wide, Jim’s Fencing needs more franchise owners to service our customers. Some of the benefits of joining our Jim’s Fencing team are; • 8 weeks paid for training @ $1000 inclusive p/w
JUST CUTS™ Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you.
KWIK KERB Kwik Kerb® is the world leader in continuous concrete edging and can now be found in over 20 countries. We are looking for motivated people right around Australia who want to improve their lifestyle and take control of their financial future. As a Kwik Kerb® business owner you will be supported every step of the way with our knowledge and experience in marketing, a full training program and on-going product development.
AUSTRALIA AND NEW ZEALAND
www.inspectmyhome.com.au - National 1300 number Inspectmyhome is looking for current property inspectors to join our team as we grow our network of professionals across Australia. Or If you are a Licensed Builder looking to join the industry this franchise opportunity is ideal for an enthusiastic and motivated person looking to grow a successful property inspection business. For further information call 1300 337 447, email info@inspectmyhome.com.au or visit www.inspectmyhome.com.au
• 3 month bookkeeping assistance package • Work availability GUARANTEE • Ongoing support and personal mentoring • Strong brand recognition • Over supply of work • And much, much more If you are looking for a self-employed business opportunity and enjoy working outdoors, then why not join the team here at JIM’S Fencing. For more information on this Franchise opportunity and Jim’s Fencing, you should go to our website: www.jimsfencing.net or call us on 131-546.
At Just Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ a week! Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price. Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere. Contact: Luke Manning 1800 334 498 Website: www.justcuts.com
Kwik Kerb® business owners work for themselves, building their own business from strength to strength and determine their own income level. With Kwik Kerb® YOU keep all the profits! We have Kwik Kerbers earning $500 to $1000+ in a day. If they can do it, so can you! Owning a Kwik Kerb® proven system is all about creating a lifestyle that suits you. You choose the hours of work that match your financial and lifestyle goals. For more information freecall 1800 773 231 or visit www.kwikkerb.com.au
business franchise australia and new zealand
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108 Business Franchise Australia and New Zealand
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LAVA CARTS Lava Carts offers specialty Espresso coffee and freshly made accompaniments. Our vision is to position the finest coffee possible into strategic locations delighting the customer and retailer in terms of satisfaction and success. A coffee cart strategically placed at the front entrance of a busy regional hospital proved a winning formula for the original Lava Cart and founder Simon O’Brien. Today the latest in design innovation has upgraded the cart to a modern and functional shopping centre kiosk whilst maintaining the grass roots cart like qualities of
cost consideration and position. Our winning formula means our turnkey franchise package is a fraction of the cost of our competitors with no compromises on quality. We currently have excellent high profile opportunities in super and major regional shopping centres, particularly in Qld, Victoria and WA. Having already experienced proven national growth Lava Carts has erupted onto the stage with a vibrant difference. Discover the substance behind our brand. Visit our website www.lavacarts.com.au ph 0458 202 649 or email manager@lavacarts.com.au
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Listen to Read A home tutoring system for reading with proven results. Using a unique curriculum plus multi-sensory home study tools, Listen to Read repairs the gaps in reading ability. The comprehensive curriculum simplifies the reading process by breaking it down into 14 areas of critical development. Small group tutoring combines with a home study system using an App and workbook for self-regulated multi-sensory study.
(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND
and Director Catherine McLennan has 26 years of teaching experience specialising in teaching reading. Individual training with Catherine ensures success for all franchisees. Early trials show students making gains in their reading age of up to two years, in just 12 weeks. A proven system combining a unique reading curriculum with Sound Therapy and multi-sensory programs for I-pad or computer. Email: hello@listentoread.com.au
The program has been developed by a literacy expert and a team of specialists in multi-sensory learning. Co-founder
Phone enquiries: 1300 473 234 / 0410 618 472
Oceanmaster
business, using remote cutting edge technology via a computerised integrated IT closed circuit system.
With a history spanning 30 years, Oceanmaster, famous for fresh cooked fish and chips, has been a successful and highly rewarding franchising system. Following a recent re-launch, which has revamped the entire look and feel of the business, Oceanmaster are set to cause a storm. Oceanmaster allows you the flexibility to work ‘ON’ your business, rather than ‘IN’ it using the unique ‘ARMS’ system (Active Remote Monitoring System). The ARMS system allows you to monitor your
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
Website: www.ListenToRead.com.au
New franchisees must share the Oceanmaster vision, which focuses on constant improvement and solid positive growth. With the investment of your first store, Oceanmaster gives you the potential to reach your ultimate goal and achieve the business success you really want. For further details about how to be a part of this semi-passive system, contact Gerry Texeira on: 1300 623 266 or email: info@oceanmaster.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
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A-Z FRANCHISE DIRECTORY Sleepy’s
programs and support from the management.
Sleepy’s unique selling proposition is ‘The Mattress Experts’. We focus on
With Sleepy’s low entry costs, simple business model, and proven selling system you too will become a mattress expert!
• providing the right mattress for our customers • backing our sales with peace of mind: 60 day comfort exchange guarantee
Sleepy’s currently has 23 stores and has embarked on an aggressive national growth plan. Make an enquiry today.
• creating a superior customer experience
Please contact Guy Elliott on 0434 254 154.
Sleepy’s offers our franchisees high quality initial and ongoing training, national marketing programs, local area
Email: guy.elliott@sleepys.com.au
SNAP-ON TOOLS
clearly surveyed and designated territories, with a rigorous training program and comprehensive support.
Snap-on Tools is a mobile franchise putting high quality tools into the hands of mechanics, engineers and technicians across Australia for over 25 years. Snap-on provides technicians with a high quality range of products and services that make their working life more productive. Over 19,000 state-of-the-art products are offered to customers, including hand and power tools, tool storage, diagnostics tooling and software, information and management systems, shop equipment and other solutions for workshops and repair centres.
Nominated as a BRW Fast Franchise in 2013, Snap-on Tools a quiet achiever. Today it is one of the largest non-food franchise companies in the world, selling its products and services through franchisee, company-direct, distributor and Internet channels.
Snap-on Tools provides high-demand products through its instantly recognisable fleet of more than 160 trucks – a mobile store selling direct to the workplace. Franchisees work within
If you are interested in considering whether this business is right for you, we make it easy. We’ve created a Discovery Tour, which steps you through the process of owning and operating a Snap-on franchise. Take a trial today: http://www.snapontools.com.au/franchise/ discovery_tour Or visit snapontools.com.au and join in the conversation online facebook.com/SnaponToolsAustralia
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.
AUSTRALIA AND NEW ZEALAND
Website: www.sleepys.com.au
• 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
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SPRAY PAVE AUSTRALIA Pty Ltd
• Learn a range of new lifelong trades.
Earn up to $3,300 per week. That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!
110 Business Franchise Australia and New Zealand
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• Guaranteed work available anytime after training. • Head office training plus follow-up on your own job. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • Low deposit + Support Payment Plan (SPP) Established in 1991, Security with Australia’s largest and oldest network. The name of the industry. Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com
Taco Bill Taco Bill is the longest established Mexican family restaurant in Australia and has built a loyal following since its inception in 1967. Taco Bill’s Mexican food is fun, fresh and affordable and presented in a casual, relaxed environment. The menu consists of a variety of fresh, authentic Mexican cuisine cooked daily on site, including Taco Bill’s special salsas, quesadillas, fajitas, rice and frijoles, enchiladas, burritos, nachos and tacos. Thirty brands of tequila are on offer at the various
THEBESTOF An award-winning franchise, thebestof is an amazing opportunity for the entrepreneurial spirit! Our thebestof franchisees are part of their community and work to connect local people and the business organisations that serve them. Our franchisees identify the best businesses in their local area and then use a suite of marketing tools, unique to Thebestof, and work with the business owners to showcase and promote them. Core income for our franchisees is from the monthly membership payments made to them by local businesses, and, because of the multi-faceted approach, there are additional revenue opportunities.
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.
TOOLFORCE This is a fantastic chance to become a part of a growing company and join successful owners/operators selling automotive tools and equipment direct to end users. You will be backed by a team of tool professionals, dedicated to customer support and committed to high quality service. Toolforce will be with you through each stage of your investment. As a group, Toolforce offers a proven partnership package. This includes: • No expensive commercial leases on retail premises – a Toolforce operator owns their retail space: it has four wheels!
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. 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.
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
Why thebestof? • Huge Demand • Low Maintenance • No Stock • No Employees • Residual Income • Respectability • Low-cost • Little Financial Risk Involved • Rapid Payback • Flat Monthly Service Fee Think you have what it takes to become a thebestof franchisee? call Emma on 08 8358 6112 and we can start you on the road to realising your franchising dream. www.getthebestof.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.
• No ongoing franchise royalties • Advertising, marketing and promotions provided by Toolforce • Ongoing negotiations with suppliers to ensure Toolforce operators achieve the best available price. • Opportunity to expand/sell or divide an area as some vannies have already done • Toolforce’s success is directly linked to the success of its van operators – we want you to succeed so we’ll give you all the backing we can. Contact: Andrew Vernon Phone: 02 9831 6555 Email: avernon@newtools.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. 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
Business Franchise Australia and New Zealand 111
A-Z FRANCHISE DIRECTORY THE NEW LOGO
total tools BUILD AUSTRALIA WITH US! With 25 years’ experience, Total Tools has firmly established itself as the market leader in professional tool retailing, servicing the daily needs of Australia’s tradesmen who use their tools for a living. Total Tools is currently on a growth trajectory and is looking for professionals that share the vision and have a desire to own an iconic Australian franchise in the trade tool and retail sector.
Stacked logo
Unscratch the Surface Don’t replace damaged glass. Unscratch The Surface franchises are the solution that all commercial, construction and residential industries have been without. saving them $1000’s in replacement costs and critical time wastage. Great environmental advantages by preventing glass being broken up into landfill. Key benefits: • Low entry costs • Low running costs • Low on-going fees • Full training & unlimited support
Enquire now for exclusive Tier 1 Territories available across Australia. For more information contact Anthony, Head of Development on 0481 006 715 or newstores@totaltools.com.au. www.totaltools.com.au/franchise Opportunities
Franchisees will receive: • Extensive advertising • Leads supplied by head office • Professional sales website • Powerful CRM website • High-grade trade tools & supplies • Uniforms • Complete corporate branding We are looking for people with a positive attitude and are dedicated to providing great customer service. For more information on this franchise opportunity, you should call us on 1300 500 408 or go to our website: www.UnscratchTheSurface.com.au
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 Starting a new café is daunting especially with overheads and expensive shop leases etc. A fixed cost and great value alternative is an Xpresso Mobile Café franchise. Xpresso Mobile Cafés have exclusive licensing to use the Di Bella Coffee products and branding. Our Mercedes Benz vans are fitted with quality custom fit-outs and commercial high grade espresso coffee making equipment. An Xpresso Mobile Café is also fitted with a coffee
AUSTRALIA AND NEW ZEALAND
Total Tools external research consultants have located a number of ‘Premium Territories’ that are now available and are strategic to the growth of the company.
For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au
bean display showcase where a franchisee can display, custom grind, bag, heat seal and retail. Franchise partners primary income is earned Monday to Friday in an exclusive territory and they may choose to earn secondary (considerable) income from various events and markets on weekends. Franchisees are supported by our fully integrated website and social media and Internet presence coupled with our national call centre. Contact Jonathan Payne at jonathan@xpresso.com.au to register your interest and be part of our success story.
business franchise australia and new zealand
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112 Business Franchise Australia and New Zealand
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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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