Business Franchise AUS & NZ Mar/Apr 2017 by CGB Publishing

T h e

m a g a z i n e

f o r

f r a n c h i s e e s VOL 11 ISSUE 03 mar/apr 2017

AUSTRALIA and NEW ZEALAND

ten top tips for franchisees

AUSTRALIA and NEW ZEALAND

NFIB centralise your

franchise group insurance

the future of franchising

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FINANCIAL & legal ADVICE

LATEST NEWS

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AUSTRALIA and NEW ZEAL AND

AUSTR ALIA and NEW ZEAL AND

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 11 ISSUE 3, mar/apr 2017 publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy.

From the

Editor

editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au publisher’s assistant: Jorgia Rice. PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: Renee Gould. accounts@cgbpublishing.com.au GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com COVER IMAGE: National Franchise insurance brokers TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968

Business Franchise magazine has, over the last eleven years, helped many franchisees find the business opportunity of their dreams! If you have just taken the first step towards business ownership by picking up this issue of Business Franchise Australia and New Zealand magazine, all at Business Franchise welcome you to this valuable source of information. For the first time in four years, 2017 sees the return of the Franchising & Business Opportunities Expo to the heart of Sydney, at the brand new ICC Sydney, located within the precinct of Darling Harbour on Cockle Bay. The first of four shows around Australia, Business Franchise readers once again enter FREE into each of the Franchising & Business Opportunities Expo’s, being held in Sydney,

Perth, Brisbane and Melbourne. Simply go to www.franchisingexpo.com.au and enter BFM when purchasing your tickets. Exhibition Manager Fiona Stacey says, “Grab your tickets now, it’s really time to stop dreaming and start doing!” As well as showcasing a range of different franchise systems, you can also speak to experts within the franchising field, as well as attend the scheduled seminars. Our feature this issue is titled ‘Franchises in Your Price Range’, and features a selection of franchise systems you can afford. Enjoy reading through the varied franchise systems that are within your price range, starting from under $50,000 to over $250,000. There should be something for everybody! As always, there is a great selection of articles throughout this magazine from leading franchising experts including bankers, lawyers, accountants and consultants. Plus franchise news and updates from the Franchise Council of Australia. If this magazine has piqued your interest, after downloading your FREE ticket, why not come along to the Business Franchise stand at the Franchising Expo in Sydney! Enjoy the read. Joanne Tuffy Editor

MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz

SUPPLIER FORUM

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

Business Franchise Australia and New Zealand 3

contents

march/april 2017

On the Cover

Cover Story: National Franchise Insurance Brokers

Why Centralising your Franchise Group Insurance is a Good Idea

Gavin Culmsee, Bedshed

The Future of Franchising – What to Consider in 2017

76 Ten Top Tips for Franchisees Raynia Theodore, MST Lawyers

In Every Issue 6

What’s New! Announcements from the industry

A Dynamic Start to 2017

Special Feature: The Price is Right!

Hot Topics: Behind the Headlines Jason Gehrke, Franchise Advisory Centre

Professional Services Listings

Listings

A-Z Directory

Franchise Council of Australia

Franchises you can afford

Profile 16 Chem-Dry Australia 20 Steve Costi’s Famous Fish

30 Flamin’ Sharp 42 BugROff 62 Mrs. Fields Bakery Café 68 Begin Bright 72

Ovenu

80 Franchising Expo

88 Ayers Rock Resort

also in this issue: Aircoat Australia..................................................................... 98 Appliance Tagging Services...................................... 98 Cashflow It....................................................................................... 2

Expert Advice

Clark Rubber Pool & Spa.................................... 87, 99 Clark Rubber Pool Care....................................... 25, 99

26 How to Effectively Research a New Franchise Venture Tim West, 12 Round Fitness

Clark Rubber Retail.................................................. 75, 99 Crema Espresso.................................................................... 99 Dream Doors Australia.................................................... 99

32 How to Generate Business as a New Franchisee Quickly Matt Mitchener, Evocity Consulting

Dream Doors New Zealand....................................... 99

38 Why Top Performing Franchise Owners are Successful Rod Young, DC Strategy

Fasta Pasta.............................................................................. 100

Ecomist Australia.................................................................. 99

Fastway Couriers...................................................IFC, 100 FC Business Solutions..................................................... 15

46 Funding a Franchise Business Labrina Tsekouras, Westpac

Fifo Capital................................................................................... 49 GroutPro..................................................................................... 101 Hairhouse Warehouse.................................. 101, OBC

60 The ad said… Be your Own Boss! David Banfield, The Interface Financial Group

IP Partnership........................................................................... 94

66 What’s Hot and What’s Not in Franchising 2017 Robert Toth, Marsh & Maher Lawyers 70 Worried about your Cash Flow? Karen Anstis, Australian Taxation Office

Jejak Graphics......................................................................... 94 Jim’s Antennas..................................................................... 101 Jim’s Building Maintenance.................................... 101 Jim’s Pool Care.................................................................... 101 Just Cuts™. ............................................................................. 102

84 Make Changes and Build a Strong Foundation for your Franchise Susan Bromley, HR Central

Krneta Building Surveyors........................................... 94 Kwik Kopy......................................................................... 37, 102 La Porchetta................................................................. 29, 102 Lava Coffee.....................................................................91, 102 Lenard’s Chicken............................................................... 103

Snapshot

Little Kickers & Little Rugby.................................... 103

36 Aircoat Australia

Marsh & Maher Lawyers............................................... 94

64 Ella Baché

Midas.............................................................................................. 103

Magnetite Windows. ....................................................... 103

National Drones................................................................... 104

Snap-on Tools

Novus Glass.................................................................. 65, 104 Oz Bin Cleaning................................................................... 104 Pizza Temptations............................................................. 104

Focus

Redcat. ................................................................................................ 1 Snap-on Tools. ........................................................ 105, IBC Soccajoeys............................................................................... 105

22 Clark Rubber

Spray Pave Australia....................................................... 105 The Energy Alliance............................................................ 35 The Interface Financial Group.............................. 105

Showcase

Theobroma Lounges, Pavilions, Bars.......... 106 Thermawood.......................................................................... 106

82 Cashflow It

V.I.P. Home Services Fencing

& Home Maintenance................................................... 106 Yarra Valley Farms. ........................................................... 106

what’snew! Subway® Surf Series continues to fuel surfing champions of the future

Australia’s junior surfing community is again supported by Subway Australia, with confirmation the brand will continue its successful partnership with Surfing Australia and the World Surf League (WSL) for a third year, through the Subway® Surf Series. Announcing their support of the event two years ago, the partnership with Subway has seen the grassroots competition grow significantly from three events to a sevenevent Pro Junior competition, providing the winning athletes with an opportunity to win a coveted world title at the WSL Junior Championships in 2018. Surfing Australia General Manager of

Sponsorship and Events Jake White said the Subway Surf Series provides a vital stepping stone for the country’s junior surfers to move through to the WSL World Tour. “Without the Subway® Surf Series there would be a significant gap in our sports development pathway and in Australia’s junior surfing community,” said Mr. White. “The series represents an important link in the ‘pathway to the podium’ developed by Surfing Australia, allowing young surfers to progress their junior careers,” he said. Subway® Australia Marketing Manager Kate Brody said the brand’s partnership with Surfing Australia’s national grassroots surfing competition is an extension of Subway’s

commitment to a healthy, active lifestyle. “Subway® Australia is committed to working with the young Australian community to promote healthy eating with the Subway® Surf Series being a perfect opportunity to showcase young surfers and their family and friends getting outdoors and being active,” said Ms. Brody. Australian surfing legends Joel Parkinson and Laura Enever are confirmed as ambassadors for the series in 2017. “Laura and Joel live the Eat Well, Go Surf ethos that Subway embodies, so to have them a part of this competition as inspiration for the Pro Junior kids was a natural fit,” Ms. Brody said.

Accountancy franchise celebrates successful first year TaxAssist Accountants celebrated the end of its first successful calendar year in Australia with a special open day in Sydney. Karl Sandall, CEO of the TaxAssist Group, flew in from the UK to join Master Franchisee Terry Murphy, his Support Centre team and franchisees to mark the network’s first milestone. The event was hosted by franchisee Colin Lua in his Sydney shop – the newest addition to the network. Since the launch of TaxAssist Accountants’ Australian network in March 2016, Terry and his team have recruited three franchisees, including opening two shops and the conversion of Terry’s existing four offices to TaxAssist Accountants. TaxAssist Accountants now operates from seven locations in Australia, including Sydney, Chatswood, Liverpool, Forster, Taree, Woolgoolga and Burleigh.

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celebrating 30 years of expos The Franchising & Business Opportunities Expo kicks off 2017 with the Sydney show on 25-26 March, at the brand new ICC Sydney at Darling Harbour. Featuring a striking contemporary design, leading technology and multipurpose spaces, ICC Sydney is located in the heart of Sydney in the active precinct of Darling Harbour on Cockle Bay.

Cirillo’s First Franchise is a Perfect Match After almost four decades as the ACT’s only one stop shop for builders, homeowners and renovators, Cirillo Lighting and Ceramics (Cirillo) has sold its first franchise. After comparing Cirillo to other franchise opportunities, the Moharami family, decided it was the strongest business model available. The family was also drawn to the design of Cirillo’s Italian products and will open their showroom in Sydney. “No other franchise offers high quality tiles, lights, bathroom-ware and kitchen appliances under the one roof,” explains Sam Moharami. “We were also impressed with the quality of the products, the presentation of the showroom and Cirillo’s commitment to customer service.” Sam, the father of the family, is an electrical engineer with over 35 years of management and business experience. He will manage the Brookvale store on a full-time basis, working alongside his daughter-in-law, Bita. Sons, Bob and Ben will continue to pursue their

“In 2017 we are celebrating 30 years of the Franchising & Business Opportunities Expo with a new venue in Sydney,” says Exhibition Manager Fiona Stacey. “We are also relaunching the Franchise Advice Centre to give visitors quality time with financial and legal specialists to improve or start their own business.”

professions but will both be involved in the franchise, which is seen as a crucial part of their future in Australia. Managing Director, Joe Cirillo, identified franchising as the logical way to expand the third-generation family business in 2013, and has spent nearly three years refining the franchise offering. “Franchising was the next organic step for us,” says Joe. “The Canberra business is a gem, but with the city’s population under 400,000, further expansion in the ACT is difficult. Additionally, there is a clear gap in the market in other states, as nobody else is offering a one-stop shop solution. Franchising the business means homeowners in other states can benefit from our model. “It is very humbling for Cirillo to have granted the Moharami family as our first franchisees; the perfect strategic fit on all levels,” says Joe. “Finding them has given us confidence that our selection process will attract suitable partners who recognise the strength of our offering.”

“The seminars and free panel sessions are always a highlight of the Expo,” says Stacey. “It’s a good idea to check the program on our website before you attend, to make sure you’re in time to hear from any speakers who particularly interest you. Franchising & Business Opportunities Expo 2017: Sydney: 25-26 March at International Convention Centre, Darling Harbour Perth: 7 May at Crown Perth Brisbane: 22-23 July at Brisbane Convention & Exhibition Centre, South Bank Melbourne: 26-27 August at Melbourne Exhibition Centre, South Wharf Reader special: register for free at www.franchisingexpo.com.au by using code BFM.

Business Franchise Australia and New Zealand 7

what’snew! CORE 9 Celebrates First Perth Franchise CORE 9, one of the most highly recognised and disruptive workouts in Australia, has announced the launch of its first franchise in Perth and a national expansion, as it looks set to dominate the fitness industry for the coming year. The innovative exercise plan has taken the healthy living industry by storm in recent months, attracting busy people with its ultra-effective 9 checkpoints, 31 minutes, ‘ no excuses’ policy. With the first franchise, located in Joondalup, Perth, now open, it’s certain that CORE 9 will be in high demand across the country. Craig Arnold, Co Founder and Director, said: “When we set out on this journey, we knew we had a winning combination in terms of fitness, but it’s incredible to think we have created such a huge buzz in the industry itself. We have had demands for franchises coming in for a while, but it has only been recently that we have been able to do it the way we want to, while maintaining our unique and fun approach.” The winning formula for the team has undoubtedly been the attention to detail, coupled with a personal approach to each

and every gym-goer that steps through the doors. And despite growing at an almost unprecedented rate, CORE 9 is determined not to lose this crucial part of the experience as it finalises plans for additional franchises around Australia. “We believe that one of the reasons we will grow so quickly is our personal touch and unique proposition,”added Craig. “Despite our growth, we endeavour to make sure each

and every instructor we have understands this vital part of the business so every person who walks through our doors gets the most out of the workout and enjoys every second. Fitness enthusiasts know that whatever the location, they’re going to receive the same dedication. We’ve translated this ethos into our franchise model too and worked hard to create a product and systems that set both members and franchisees up for success.”

Become a Key Person of Influence FREE BOOK VALUED AT $19.95 An international world-leading business accelerator for small, entrepreneurial businesses, Dent Global operate in 6 cities across 4 countries around the world (Australia, Singapore, the UK and USA). Founded in 2010, Dent specialises in running award-winning business growth accelerators and through a combination of physical workshops, online learning and peer-to-peer accountability, they’ve helped more than 2000 businesses grow and transform. They have also launched three best-selling books on business, won major culture and fast growth awards and raised more than $500,000 for charities around the globe. Key Person of Influence is a 5-step method to becoming one of the most visible, valuable

8 Business Franchise Australia and New Zealand

and connected people in your industry by Dent Global co-founder Daniel Priestley. It turns out your ability to succeed in your business depends primarily on your ability to influence those around you. Many people think it takes decades of hard work, academic qualifications and a generous measure of good luck to become a Key Person of Influence, but Priestley offers proven strategies and tips for fast-tracking your way to the inner circle of your industry, refined from working with 2000+ entrepreneurs globally. Dent Global is offering a physical copy of the book FREE to readers when they go to: http://keypersonofinfluence.com.au/aff. php?p=a4514&w=partr. The book is valued at $19.95.

Fastway Couriers announces successful launch of Blu Couriers for Fastway Courier Franchisees with over 20,000 parcels moved by Blu Couriers over the holiday period. This meant Fastway Courier Franchisees were able to deliver an additional 40 parcels per day, saving up to 4 hours daily. Fastway Couriers new CEO Peter Lipinski says the successful launch demonstrated how Blu Couriers allows Fastway Courier Franchisees to scale up to meet growing demand whilst providing Australians with a flexible work option. “In my role as Fastway COO last year I was heavily involved with the development of Blu Couriers and while we had invested time and resources in optimising the model, it’s been very rewarding to hear such positive feedback from our franchisees, our Blu drivers, and our customers.

New CEO Peter Lipinski, Fastway Couriers

Leading delivery network, Fastway Couriers recently announced the successful launch of its new Blu Couriers system with over 150 Australians signing up to become a Blu Courier over the Christmas period alone. Utilising the existing network of leading

courier service provider, Fastway Couriers, Blu Couriers taps into the growing sharing economy to engage drivers, when they’re available, to provide help to Fastway Courier Franchisees as they need it. The successful rollout in Sydney and Brisbane over Christmas increased delivery capacity

“With three in four internet users in Australia now shopping online, delivery demand is rising dramatically. The successful launch of Blu Couriers over the holiday period has shown how through utilising the sharing economy we’re able to help our Courier Franchisees upscale to meet growing demand.”

Say Olá To Oporto Sobre Rodas Following the recent launch of the Oporto ‘Pequeno’ (Portuguese for small) stores, Oporto is proving that good things DO come in small packages by taking its flame grilled Portuguese chicken obsession to the streets with its Oporto Sobre Rodas (Oporto on Wheels). To celebrate their 30-year history, last year Oporto shot their brand campaign on the streets of Portugal, this year Oporto once again have looked to Portugal for inspiration. Taking their latest idea straight from the streets of Porto and Lisbon, the Oporto Sobre Rodas is modelled on the traditional food carts of Portugal. With a hint of tuk tuk, Oporto Sobre Rodas will be giving traditional big and cumbersome food trucks a run for their money! Making its official public debut at the HSBC Sydney Sevens Rugby, the bespoke-designed vehicle comes complete with a fully functioning grill, refrigeration and built in music system. The outside is wrapped in an iconic Portuguese tile motif that has been specially designed for Oporto. Serving Portuguese grilled chicken with Oporto’s Original Chilli Sauce, it will be a sure hit at any event. Craig Tozer, Oporto CEO has said: “Oporto Sobre Rodas otherwise known as Oporto on Wheels, is yet another nod to the brand’s proud

Portuguese heritage. We are thrilled to be taking our food to the streets and being front and centre at some prominent events and parties on the 2017 social calendar!” Vanessa Rowed, Oporto Head of Marketing has said: “At Oporto we like to do things differently. Whilst food trucks may have been a trend, we went the other way - bringing a slice of Portugal to Australia. Now is the time for us to reclaim our Portuguese heritage and the Oporto Sobre Rodas is the perfect way.”

Business Franchise Australia and New Zealand 9

c ov er sto ry: nat iona l f r an c h i s e in su r an c e b r ok er s ( N F I B )

Why centralising your franchise group insurance is a good idea automated, compliant service that provides clients with full documentation. All policies are underwritten by some of the world’s best insurance organisations, notably Lloyd’s of London – arguably the largest insurance market in the world.

How does it work?

Efficiency in business comes by ensuring all cogs in the business machine are fully functional and optimised. Franchise groups are tasked with monitoring and tweaking all aspects of their operating system to maintain efficiency across the board.

of cover that complies with their industry and their franchisor. Insurance models that specialise in group-standardised insurance packages allow for franchisees to be safe in the knowledge that they’re properly covered, and enable franchisors to be confident that their brand won’t be unavoidably affected by a negative situation in the future.

One of the most important aspects for groups to monitor is insurance – as any successful franchise group will tell you, it’s important that all franchisees have a level

National Franchise Insurance Brokers (NFIB) is a company that specialises in insurance designed specifically for people working in the Australian franchising sector. It’s a fully

Not only does this make life easier for the franchisee – leaving more time for them to run other aspects of their business - it also allows the franchisor to achieve a certain level of control over group insurance matters, without seeming overbearing.

10 Business Franchise Australia and New Zealand

NFIB’s basic premise is simple, to provide a centralised space for franchisors to easier monitor and regulate the insurance affairs of their franchisees; from here a secondary benefit comes to fruition – franchisees gain access to pre-determined covers tailored to their particular franchise group and industry. Making the (often tedious) process of purchasing insurance much simpler. The group-pricing structure available to companies such as NFIB (using ‘people-power’ to negotiate a better overall premium) acts a major advantage – often providing clients with premiums considerably lower than if individuals were to insure elsewhere.

The Benefits For Franchisors Simple, centralised and compliant; these words form the basis of the NFIB system for franchisors. With the aid of an online portal, franchisors that sign up to NFIB gain access to real-time reporting of franchisee insurance affairs – all relevant documentation is readily available through the NFIB website, from Product Disclosure Statements (PDS), to certificates of currency, to live updates referring to the take-up rates of franchisees. Prominent Australian franchisors already signed up to NFIB cite the level of control offered by the system as the most desirable feature. The ability to stay at-arms-length,

National Franchise Insurance Brokers (NFIB) is a company that specialises in insurance designed specifically for people working in the Australian franchising sector. Itâ&#x20AC;&#x2122;s a fully automated, compliant service that provides clients with full documentation. but retain an input into something that could have a potentially adverse effect on the brand if handled wrong, is what sets NFIB apart from other insurers.

For Franchisees In a nutshell, avoiding the tedium and timeconsuming nature of organising business insurance, paired with access to competitive premiums, is what draws franchisees to the NFIB system. Having an online space where documentation, important renewal dates, claims lodgement and risk management information can be quickly accessed, is the defining factor in franchisee decisions to continue insuring with NFIB.

See how NFIB can benefit you At NFIB, the brokers enjoy a 97% yearly renewal rate. With an easy to use system, prompt and personal service, and insurance packages designed to suit you r circumstances - they just might save you time and money. To find out more contact us on: 1800 776 747 info@mynfib.com.au

Business Franchise Australia and New Zealand 11

f r an c h i s e c o u n c i l of aust r a l ia

A dynamic start to

12 Business Franchise Australia and New Zealand

“We are seeing more and more Australian brands are starting to expand into international waters, with New Zealand remaining the most common next step.” Damian Paull | CEO | Franchise Council of Australia

It’s been a dynamic start for the New Year at the Franchise Council of Australia, with exciting new initiatives and a continuation of successful endeavours that we are proud to provide for our members. If you’re interested in knowing more about what we offer and how to be a member and join the great community that we strive to protect, educate and promote, then please contact our head office in Melbourne today. Members of the Franchise Council of Australia are part of a unique association where business lessons, experience and information are shared freely. Membership means solidarity: As an FCA member you belong to an association where your peers work together for the betterment of the sector, a common method of doing business, not a common business itself. If you’d like to make an impact on the small business sector supporting Australian local communities, please feel free to contact us.

THE FUTURE OF FRANCHISING It is clear that the franchising sector continues to mature and steadily grow, according to the new 2016 Franchising Australia survey from Griffith University Asia-Pacific Centre for Franchising Excellence. Sales turnover for the franchise sector is now estimated at $146 billion which contributes to communities everywhere Australia wide. We are seeing more and more Australian brands are starting to expand into international waters, with New Zealand remaining the most common next step due to demographic and similarities in consumer developments. 2016 has been a successful year for innovation,

and gaming has led the way for maximum fun and engagement with consumers. Boost Juice won the 2016 MYOB FCA Excellence in Franchising award in Franchise Innovation due to their phenomenal success with their gaming app by Retail Zoo, Free the Fruit where users can win free drinks and prizes by helping the antagonist Mango Man free fruit from all the Boost Stores around the country - trust me, it’s just as addictive as their drinks are. In just two weeks, it was number one on the App Store under the Free Game category, with almost two million games played. The amount of brand awareness and customer experience achieved by the game is invaluable. It seems that people are getting more accustomed to getting what they want, when they want. Home delivery is becoming more of a here-to-stay thing rather than a trend for the big franchise chains, with Red Rooster now doing home delivery and upping their game by investing a large amount of money in their delivering platform as well as partnering with Menulog. Keep your eyes open for more technological advances- this will show a great increase of digital advances and uses, from shopping and beyond – whether or not businesses will be slow to evolve, or stay in the forefront is another story. Millennials will continue to be attracted to franchising, due to great confidence in franchise brand systems and the opportunity that franchising provides them to own their own business. Millennials have grown up with a ‘anything is possible’ mentality, which enables them to respond faster to opportunities. Their thirst for success will be complimented by training and mentorship. The solution for franchisors is to ensure that they allow them to make their own mark, and allow the young sprouts to flourish. This could mean changing entirely the way franchisors employ franchisees by working towards their values.

Business Franchise Australia and New Zealand 13

f r an c h i s e c o u n c i l of aust r a l ia

“Membership means solidarity: As an FCA member you belong to an association where your peers work together for the betterment of the sector, a common method of doing business, not a common business itself.”

The FCA is proud to assist and nurture the future of franchising, and our commitment to the NextGen initiative is one that we hold close to our hearts. We had three finalists in the International NextGen competition: David Lindsay from Salts of the Earth; Bao Hoang of Roll’d and Nik Leigh of Real Property Photography. They have achieved tremendous success and our three finalists have a huge program of coaching, mentoring, networking and learning ahead of them. We would like to congratulate David Lindsay, founder of Salts of the Earth who came second in the International NextGen competition. To be Runner Up against the other ‘upand-coming’ franchises in the world is an experience he won’t forget easily. David Lindsay founded Salts of the Earth in 2010 after seeing first-hand the effects salt therapy had on his father oversees, a longterm sufferer of chronic respiratory illnesses. “My father tried dozens of medications and unsuccessful surgeries to clear his airways,” Lindsay said. “He did salt therapy as a last resort, and it played a huge role in improving his health and even made his medication more effective.”

Lindsay saw a gap in the Australian market, and knew there would be thousands of people with respiratory and skin conditions, or in need of sports recovery, who could benefit from ongoing treatment. Salts of the Earth is now Australia’s fifth largest fastest growing franchise, and Lindsay said being part of the NextGen competition has been a huge asset for the company. “The competition has provided great exposure for our brand, and an opportunity to showcase our company to some of the largest franchisors in the world,” Lindsay said. To promote excellence in the sector, the Regional awards program has been released and entries are now open and we encourage you to enter! These awards and the awards process have proven to be a huge benefit in raising brand awareness, creating opportunities and improving your business as part of the awards process.

14 Business Franchise Australia and New Zealand

If you have a franchisee or eligible member of staff that has gone above and beyond, then why not help them and nominate them for the recognition they deserve! Our State Chapter teams are currently working through a great line up of events for all our members and the calendar is now available. We know that one of our strengths is the capacity to share knowledge and experiences with others. This generous spirit, encouragement and energy that accompanies it, is the real value of the events program. In 2017 I encourage you to engage with the members, share experiences with that generous mindset and look at the effect and impact that you can have by helping others to learn, grow and be successful. On behalf of everyone at FCA, we look forward to a great 2017 for franchising. www.franchise.org.au

Franchise System Setup

Franchisee Training HR Support & Helpdesk Online Operations Manuals Network Development Strategy Executive Recruitment Operational Team Support Digital Marketing Strategy www.fcbs.com.au contact@fcbs.com.au (03) 9533 0028

Quality ISO 9001

Business Franchise Australia and New Zealand 15

pr o file : C h em -D ry Aust r a l ia

SEIZE THE DAY WITH CHEM-DRY Mark Robinson and Natasha Kunsek are proud franchisees of Capital Chem-Dry. Mark’s ChemDry journey started when he noticed his neighbour’s Chem-Dry van driving up and down the street and, after speaking to the franchisee who offered to take him around, Mark was soon offered a job working for him.

and Natasha seized the opportunity, already knowing they loved the Chem-Dry model. What really appealed to them was the low start-up cost, which included all the necessary equipment, a new website, six months’ of products, a brand new van, complete training, and ongoing support. Mark and Natasha looked at other franchises they thought might suit them, but costs were well outside of their budget. “Chem-Dry have an excellent support network, so if we need assistance, they are only a phone call away,” says Mark. “We felt comfortable investing in a company that is well established and has a good reputation.”

Taught to provide every available Chem-Dry service including cleaning carpets, upholstery, tiles and grout, as well as water restoration services and even pet urine removal, Mark says that working with him also improved his skills in communication, customer service, time management, and business management.

Chem-Dry guided Mark and Natasha through the franchise agreement, and they felt no pressure to sign on at any stage. They allowed plenty of time to discuss with other family members and to organise finances. “Although I had been trained by my previous employer, Chem-Dry insisted that I attend formal training in Sydney. It was very comprehensive.” Mark says the Franchise Development Manager is also available at any time for technical or business advice, and he spends a couple of days on the job or in their home each year discussing the business, advertising options, and possible improvements. Mark and Natasha often attend state meetings to build further relationships with other franchisees around Australia.

Trusted to run the business when the franchisee took holidays, when a Chem-Dry franchise territory became available, Mark

Mark says, “We love how safe the Chem-Dry products are. Customers nowadays are really mindful of the products used, as they want

16 Business Franchise Australia and New Zealand

to make sure the products are safe for their homes and are safe for children and pets.” Mark and Natasha also love being able to remove most stains that competitors have left behind. Chem-Dry has over 40 green certified solutions, with the capacity to clean stains like rust, coffee and pet urine, all with fast drying time. “We can clean all your carpets and upholstery using safe non-toxic solutions. Most of our customers we know on a first name basis.” Mark and Natasha’s favourite aspect of owning their own franchise is that they can run the business from home. Natasha can answer the phone, sort finances, and book the jobs all whilst looking after the kids. Having a mobile business also means they don’t need warehouse space to operate. “We have a storage shelf in my garage with all of our spare solutions on it, and if I need to buy extra it’s delivered the next day to our door.” “Since having this franchise, our lifestyle is better and it’s great to know we have cleaned homes to a high and safe standard. We love the flexibility we have as parents of a young family to balance a busy work life with quality family life. “If you have passion and are prepared to work hard, ask lots of questions and listen to advice, then go for it,” says Mark. If you would like to join the Chem-Dry family, you can find more information at: www.chemdryfranchise.com.au

Are you looking to clean up? Build your future with Chem-Dry Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986.

Franchises available in all capital cities & regional centres

Our unique, hot-carbonated water extraction method, combined with best in-class products and services, and unparalleled training and support, make it impossible to find a better cleaning franchise opportunity. No experience is necessary, as Chem-Dry provide comprehensive training on all aspects of the business. Our on-going marketing and operational support will ensure that you are able to enjoy the flexibility and lifestyle benefits that owning your own successful business can provide.

1800 243 637 chemdry.com.au

If you’re looking ready totomake cleana up clean withbreak your with own your Chem-Dry own Chem-Dry franchise, franchise, simply fill simply out thefillinformation out the information form on our formwebsite, on our website, or call our or franchise call our franchise businessbusiness info line info on 1800 line on 243 1800 637.243 637. Business Franchise Australia and New Zealand 17

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The future of franchising

what to consider in 2017 Griffith University’s newly released Franchising Australia report tells a positive story for retail franchising, despite the flat economic environment Australia’s operated in over the last 12 months. The report found that more than 470,000 people are employed in business format franchises, and that the retail industry dominates the sector, with 26 per cent of brands operating in this segment. While this is great news, the report does raise a few interesting issues. Predictions

of a gradual decline in the number of franchise brands may concern some potential franchisees. However, it also predicts an increase in employment and sales turnover across the industry, confirming the sector is still a healthy option, provided you join the right brand. But what is ‘the right brand’, and how can it be identified? I’ve been in the franchising sector for 20 years, and in that time I’ve picked up some valuable insights on what prospective franchisees should look for when considering a franchise.

Longevity One of the perks of living in today’s world is that we have a wealth of information at our fingertips. As a potential franchisee, you’re

18 Business Franchise Australia and New Zealand

able to consider and scrutinise any potential franchise network with a fine-tooth comb. Any hiccups or red flags should come up pretty quickly. Look for a network that has a proven track record and longevity in the market. A tried and tested network, with years of experience behind it, is going to mean more security and less risk for you. While you’re never going to know exactly what a franchise network is like until you join, one of your best bets is to look at existing franchisees in the network. How long have they been with the network? Can you gauge their level of satisfaction? Ultimately, you don’t want to be investing your money in a franchise that doesn’t have a proven record of success. If a franchise network can prove a history of satisfied

“Each franchise network should have something that makes it unique and different to its competitors.” Gavin Culmsee | General Manager | Bedshed

The Franchising Australia report shows a third of businesses engage in online sales, which I expect will increase over the next 12 months and into the future. Franchises that do not evolve and offer online sales will in all likelihood be left behind. You therefore must consider not only how a franchise network engages customers in-store, but also online. Another essential factor to look for in a franchise network is how it evolves the instore experience. Is it taking steps to stay ahead of the game and adapt to the changing market? At Bedshed, this is something we are constantly striving to champion. For example, we recently implemented an industry leading store fitout (we call it our evolution fitout) which has been immediately effective in engaging and captivating the imagination of our customers while in-store and the corresponding sales growth has been tremendous.

Unique Selling Point (USP)

franchisees and continued growth, then you’re in a much better place.

Future proofing It’s critical for a franchise network to have a proven track record, but they also need to be able to demonstrate that they’re looking to the future. Look for signs that a franchise network is forward thinking and ready to evolve when new opportunities arise. For sales based industries, online commerce is an obvious example of this opportunity. It’s no secret that rapid technological advancements and disruption are a fact of life in contemporary commerce. In order to stay relevant and competitive in the market, it’s essential that franchisors are keeping abreast of the latest technology and trends.

Each franchise network should have something that makes it unique and different to its competitors. Some franchise networks involve their franchisees in much of the business processes, while many others don’t. At Bedshed, we strive to differentiate ourselves by fostering an open, two-way healthy relationship between the Bedshed Central Office and our franchisees. We ensure our franchisees are always aligned with the network and encourage them to get involved in decision-making processes as much as they wish. Other franchises may not offer this opportunity, so be clear about what is important to you and ask the right questions upfront to understand how much input you will have. An example of how Bedshed involves and includes franchisees in the network is the operation of both the Franchise Advisory Council (FAC) and the Merchandise Advisory Council (MAC). Meeting once a quarter,

the FAC contributes to business decisions on everything from operational matters and customer feedback to promotional and advertising campaigns. The MAC is responsible for product related decisions. Both councils are open to any franchisee that is willing to join. While it’s not compulsory for franchisees to participate, they present a fantastic opportunity for those wanting to get involved and share their opinion.

The product It’s all well and good to have a franchise network that’s modern, innovative and successful. However, as a potential franchisee you must consider what it is you’re going to be selling, day in and day out. In 10 years’ time, will that product still be in demand? One of the reasons Bedshed franchisees report successful operation and busy stores is because mattresses and bedroom furniture is always in demand. At the end of the day, people will always need a comfortable bed to climb into! It will always be advisable for them to change their mattress every seven years. Think carefully about not just the business model but the end product before you sign on the dotted line. Gavin Culmsee is the General Manager of Bedshed, a national bedding and bedroom furniture specialist. With more than 30 years’ franchising experience, Bedshed has a long history of satisfied customers and successful franchisees. Bedshed is a trusted member of the peak body for Australian franchising, the Franchise Council of Australia. Bedshed is currently looking for franchisees on the east coast of Australia as the company continues to expand. For more information contact Rod Parker on: 0419 494 480 rparker@bedshed.com.au www.bedshed.com.au/franchising

Business Franchise Australia and New Zealand 19

pr o file : St e v e Cost i ’s Fa m o us F i s h

SET SAIL FOR A NEW BEGINNING

Steve Costi’s Famous Fish mission is to always supply phenomenal seafood, give customers an amazing experience, and create strong exciting seafood diners while giving generously to others. Committed to this mission, Steve Costi along with business partners Jon Sully and Vaughn McGuiness are looking for community minded, entrepreneurial and fun business owners to join the growing team.

AN AUSTRALIAN FAVOURITE Continuing a family tradition tracing back to 1958 and inspired by his father’s passion and success in the seafood industry, Steve Costi got into business for himself and soon the Costi family fish shops started to open throughout the NSW region. While still in his early twenties, Steve began to build what would become a recognisable retail brand and forerunner to the Steve Costi’s Famous Fish franchise. Opening up his second store at David Jones, Market Street Food Hall in Sydney, Steve discovered an entrepreneurial flair and passion for offering the freshest, most affordable seafood available.

THE FUTURE OF SEAFOOD The number one take-away food item sold by independent stores, Australia’s appetite

for seafood has increased by 27 per cent per capita since 1997 and is increasingly seen as the appropriate ‘fast food’ by governments, health agencies and consumers alike. Steve Costi’s Famous Fish have recognised that of the 30,000+ take-away outlets generating in excess of $7 billion in retail sales, there are no multi-unit, integrated seafood operations and there was a niche available for a quality seafood based dine-in and take-away franchise.

BECOMING A FRANCHISEE Committed to attracting an exceptional calibre of franchisees, Famous Fish want everybody involved in the business to have fun, enjoy what they do and look for opportunities to give back to their local community. Living and breathing these principles within the organisation, Famous Fish are looking for franchise partners that embody these values. After an application is submitted and reviewed, it’s time to meet face to face with the team. With support from Famous Fish during every step of the application process, potential franchisees are asked to complete extensive due diligence and work with an accountant or financial adviser to help with the development of their business plan.

SUPPORT & ASSISTANCE WITH EVERY STEP Once the Franchise Agreement is signed, a Store Operations Specialist is assigned whose mission it is to help grow the franchise store. In addition to Famous Fish offering site selection, lease and store layout assistance,

20 Business Franchise Australia and New Zealand

“Committed to attracting an exceptional calibre of franchisees, Famous Fish want everybody involved in the business to have fun and enjoy what they do.” the Store Operations Specialist will walk you through the details of getting your store open, as well as spending the first full week of opening in-store. Alongside a five week training program incorporating classroom and practical training, assistance is also given with hiring and training staff, pre-opening marketing and ongoing operational support.

A LOCAL BUSINESS The Famous Fish promise is to always maintain the spirit and heart of a locallyowned small business, valuing the people within the communities by being good neighbours, treating people well and doing business with integrity. Supporting local community causes such as charities, sporting clubs and disadvantaged people, Famous Fish want to give back to the communities that support them. If you want to be your own boss, have more control of your time and love quality seafood, contact Steve Costi’s Famous Fish now for more information. 03 5975 8614 franchising@famousfish.com.au www.famousfish.com.au

Steve Costi and his family have been in the seafood business since 1958, and after years of success have decided to franchise the Famous Fish business. Coupled with the strength of the Costi Brand, our franchisees will benefit from our comprehensive training, business, marketing and head office support. Set sail in one of Australiaâ&#x20AC;&#x2122;s most successful retail sectors!

SEAFOOD REMAINS THE #1 TAKE-AWAY food item sold by independent take-aways in Australia.

Serving authentic, original and accessible seafood, and delivering an efficient, manageable franchise business.

Join our franchise family! We take an instant liking to committed, hardworking individuals who have a dream of working for themselves and strong ideals about quality, because people that hang onto those ideals always make it! For more information regarding the Famous Fish Franchise opportunity, please contact Sal El-Houli:

P: 0425 786584 E: franchising@famousfish.com.au W: www.famousfish.com.au

fo c us : c l a r k r u bb er

build your POOL &with SPA future BUILD YOUR FUTURE a retail icon WITH A RETAIL ICON

As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 65 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry. Our business development and support teams will assist you in building your successful business. We have a number of new franchise models available and are looking for motivated and business orientated people to join our network. Clark Pool & Spa Shops start from $147,500 plus workingFranchise capital. Australia and New Zealand 22 Business

With a proud retail history Our industry knowledge help over thewill past 70you years, Clark build a strong business, the Rubberbecoming is a recognised local pool specialist in your territory and Australian Retailer. Having helping you work in a lifestyle environment. an award winning national Our franchisees benefit from: franchise network of 65 throughout Australia, • Unparalleledstores national and local support and two franchise • Proven marketing andindividual business strategies models • Group buying power plus a mobile pool franchise, • No franchiseservice renewalterritory fees • Turnkey development set great up there areand many • Retail brandopportunities celebrating 70 and yearsreasons to • Multi Awardjoin winning franchise system this Australian Retail Icon. •

Unsurpassed initial training and ongoing support

“We’re with you every step of the way, whether you are taking over an existing store or starting up a new location or territory.”

Started in 1946 by two men, Charlesworth and Clark, the initial partnership was known as Clark Matting and Rubber. The business grew quickly and, in 1951 the business was listed on the Australian Stock Exchange. In 1961 the name was changed to Clark Rubber stores. In 1982, Clark Rubber was purchased by the Adsteam Group, which continued to operate the business until 1994. At this point the Clark Rubber name and logo were sold to Vita Pacific, a wholly owned subsidiary of Pacific Dunlop, and the network of retail stores were closed. It was at this time that Chris Malcolm, a veteran of Australian retailing, stepped in. After lengthy negotiations, Chris licensed the Clark Rubber brand from Vita Pacific. Deciding that a franchise model was the best way to grow an already established and recognised brand, the first franchised Clark Rubber store opened in Nunawading in 1995. By 1998 the 50th store had opened and Clark Rubber was once again one of the best recognised brands in Australian retail. In 2000, Chris Malcolm bought the Clark Rubber brand from Pacific Dunlop. The store network continued to grow and, in 2003, Clark Rubber was recognised as the Franchise Council of Australia’s Franchisor of the Year in the ‘Entry Capital over $200,000’ category. In the same year, Chris Malcolm was inducted into the Franchise Council of Australia’s ‘Hall of Fame’. Three years later, Clark Rubber was awarded the Franchise Council of Australia’s highest honour, Franchisor of the year.

Great Products – Strong Marketing Clark Rubber franchisees enjoy the combined stock buying power that only comes from being part of a large national network. Our dedicated merchandise team works closely with suppliers to build product ranges across our key categories of pools, foam and rubber. In addition, we source products, develop promotional offers and negotiate terms and pricing. Making sure that products meets

the needs of our customers and the market, no matter which model you choose, you will benefit from the knowledge and expertise relevant to your business. Marketing and advertising are key to the ongoing success of any retail business. At Clark Rubber, each year we invest in brand development and national retail advertising campaigns, across all relevant and current channels, to ensure that we are continuing to drive customers and business to you. We also work closely with all Clark Rubber franchisees to develop and execute effective local area marketing at a local store level.

An ongoing commitment Clark Rubber franchisees benefit from a proven franchise system. Not only providing our franchisees with the knowledge and skills they need, but also ensuring that they have tangible business tools and support needed to help them run their business. We’re with you every step of the way, whether you are taking over an existing store, starting up a new location or territory. We provide support in the areas of site selection, lease negotiation, store development and in-store merchandising. Clark Rubber franchisees and their staff benefit from a comprehensive initial and ongoing training program. Covering product knowledge, customer service, retail operational and compliance topics, training is delivered through a combination of individual, group and online programs.

You will also receive the IT infrastructure required to manage every aspect of your business including stock control, POS, financial reporting and benchmarking. Our IT helpdesk is on hand to assist you with any system related issues, keeping your business operating ongoing.

National Strength, Local Support In addition to the national support team, all Clark Rubber franchisees benefit from the ongoing relationship with a dedicated Regional Sales Manager. Their role is to spend time with you, in your store, working with you to achieve your goals and provide regular feedback and support on all aspects of store performance.

Clark Rubber Franchise Models There are three individual models that make up Clark Rubber, designed to provide flexibility to potential franchisees and markets, whilst capitalising on the strong brand reputation gained over the past 70 years.

Clark Rubber Stores Including a unique product mix of pools, foam and rubber, these stores provide strong customer appeal and income potential across all seasons. Products include modular pools, pool accessories, equipment, rubber matting, extrusions and hoses as well as being Australia’s largest retail supplier of cut foam including an in store foam cutting service, supported by a great range of Sleepmaker

Business Franchise Australia and New Zealand 23

fo c us : c l a r k r u bb er

innerspring mattresses and foam mattresses. Clark Rubber stores also include their own mobile pool van, providing you with the opportunity to build a strong local market.

Clark Rubber Pool & Spa shops Leveraging the Clark Rubber brand and reputation in pools, the Clark Rubber Pools & Spa franchise model has been developed to allow for a complete focus on pools and spas sales and service. All our Pool & Spa franchises operate a pool service van, allowing you to service your customers through both the store, and at their home.g. Being a part of the national franchise network you will also benefit from the great advantages of group buying, marketing and support.

Clark Rubber Pool Care Service Territories Understanding the needs of the pool and spa industry, included as part of the Clark Rubber franchise group is the opportunity to own your own mobile pool service territory. With the ability to market and service your own area, the flexibility to work from home, and the hours that suit you and your customers,

this low-entry business model is a great way to run your own business yet with the support of a national brand and franchise network. At Clark Rubber, our commitment to customer service and providing our customers with solutions helps us to differentiate us in the market and with our customers. Coupled together with our extensive product range, you have the opportunity to build a strong business and retail destination within your local market. All of these franchise models benefit from being a part of a national franchise group. With the initial training program, ongoing support and business development across all areas of the business as outlined above, the national support team is available to assist you in achieving the best results and grow a profitable and successful Clark Rubber business. The national marketing program is developed to help drive traffic and sales for your stores and is to ensure market presence throughout the year, and for all seasons. Products are sourced to ensure the best product mix to meet customer demand and changing trends within the market. Our online shop is designed to drive business direct to your store.

24 Business Franchise Australia and New Zealand

â&#x20AC;&#x153;Marketing and advertising are key to the ongoing success of any retail business. At Clark Rubber, each year we invest in brand development and national retail advertising campaigns.â&#x20AC;? The uniqueness of Clark Rubber stores, with a product range across Pools, foam and rubber, provides a strong market position supported by a well-recognised and reputable brand. Customer service is a key focus â&#x20AC;&#x201C; and is a differentiator of Clark Rubber to many of its competitors. With a strong vision for growth now and in the future, including three franchise models in Clark Rubber store, Clark Pool & Spa shop and Clark Pool Care franchise territory, you can choose the opportunity that suits where you want to go. For more information and to enquire about current opportunities, contact Dirk Heinert on: 03 8727 9999 dirk.heinert@clarkrubber.com.au www.clarkrubber.com.au

BUILD YOUR FUTURE WITH A RETAIL ICON

As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 65 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry. Our business development and support teams will assist you in building your successful business. We have a number of new franchise models available and are looking for motivated and business orientated people to join our network. Clark Rubber Pool Care Service Territories start from $49,500 plus working capital.

Our industry knowledge will help you build a strong business, becoming the local pool specialist in your territory and helping you work in a lifestyle environment. Our franchisees benefit from: • • • • • • • •

Unparalleled national and local support Proven marketing and business strategies Group buying power No franchise renewal fees Turnkey development and set up Retail brand celebrating 70 years Multi Award winning franchise system Unsurpassed initial training and ongoing support

If you would like to hear more about franchise opportunities in your area, please contact Dirk Heinert for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or dirk.heinert@clarkrubber.com.au

clarkrubber.com.au Business Franchise Australia and New Zealand 25

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How to effectively research a new franchise venture Whether you’re already involved a particular industry or have absolutely no experience in the field, it’s vitally important to carry out research into any new venture.

“One of the most important things to honestly assess, which is sometimes surprisingly overlooked, is to question whether you have the right personality to run a franchise in the first place.” Tim West | Managing Director and Founder 12 Round Fitness (12RND)

If you’re a teacher who suddenly has a hankering to open your own beauty salon, no-one is expecting you to become an expert overnight – that’s why franchises already have systems in place to help guide you through. However, for your best chance of running a successful franchise you need accumulated knowledge – preferably as much as possible. If you’re not sure how to go about researching a franchise and its industry, here’s a guide below.

Immerse yourself in research step by step Firstly, scour franchising advice sites, magazines and books as these are a great resource tool. Many articles will have invaluable advice and what to bear in mind when doing your research which will sharpen your focus. If you are not sure as to what kind of industry you’d like to get involved in, often these resources will help spark ideas. Next you should gain as much insight as possible into the industry of your choice and key businesses. This is enormously important if you do not have prior experience in the industry. Research online articles and reports. Identify leaders in the industry and study their success. Check out the comments about certain businesses on social media by looking up their Facebook and Instagram pages. Examine their websites and observe if what they say resonates with you.

Once you have identified a particular franchise business you’re interested in, read up on whatever has already been published about them. If there are favourable articles it shows the company cares about its brand and reputation. Also Google reviews of the business to see what customers are saying. This could yield interesting information as to the business’s reputation. Finally, it’s also important to do research on competitors. Search online sites such as the Yellow Pages website to see who the business’s main competitors are and how many exist in

26 Business Franchise Australia and New Zealand

various areas. Read up on competitors and visit some of the premises to check out how they operate.

Ask the franchisor important questions It’s vital to set up a meeting with a franchisor you’re interested in and ask them the right questions. Although bear in mind that franchisors are also likely to talk up the business as much as possible, so keep whatever they say in perspective. Some important questions to ask include:

• What is your knowledge of the business’s competitive landscape and what is your immediate and future strategy for competing in that arena? Assess whether the strategies sound viable. • What is the main focus for your company? Preferably it should be the success of the franchisees. • What is the reason some franchisees are doing better or worse than others? Understand exactly what is not working for certain people.

• How do you deal with conflicts? Ask about a recent conflict with a franchisee and how the franchisor dealt with it. • What skills do franchisees need the most for this business? You need to be the correct fit for the business. For example, my fitness franchise 12 Round Fitness (12RND) is a purpose-built boxing and functional strength training facility. As our focus is on members’ results and relationships, our franchisees need to enjoy interacting with people and motivating them.

Do your research on the franchisees There are a few ways to go about this. You can visit one of the franchisees and ‘secret shop’ as a customer, observing how the business is run without letting on that you are interested in the business yourself! You could also casually ask the owner how business is going which hopefully will elicit an honest response. Another option is to ask the franchisor to recommend a franchisee you can spend some time with – although remember they will

Business Franchise Australia and New Zealand 27

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t probably recommend their most successful one. If you’re concerned about bias issues, you could cold call a couple of franchisees yourself – their numbers will be in the franchise disclosure document. Set up a meeting with at least one franchisee and pose these important questions to them: • Were you well prepared when you opened? Assess whether the franchisor’s training program was thorough enough. • Do the marketing programs work? Ask if the campaigns actually bring customers through the doors. • What are the financial details? Ask the franchisee about their start-up costs and how quickly they began making money. • Would you purchase the same franchise again knowing what you know now? Take note if their answers resonate with you, or if the issues they raise are irrelevant. If you find yourself identifying with unsatisfied franchisees, it may not be the business for you.

Study the franchise disclosure document (FDD) Understand that anything told to you verbally isn’t an iron-clad guarantee and that you should be ultimately guided by the FDD.

“It’s vital to set up a meeting with a franchisor you’re interested in and ask them the right questions.” Use this as your primary reference as it will contain a lot of key information about the franchisor. It will tell you about what payments you need to make, whether you’ll have exclusive territory and what happens when the agreement ends. You need to be well aware of the costs and circumstances before committing to anything.

Do an assessment – on yourself One of the most important things to honestly assess, which is sometimes surprisingly overlooked, is to question whether you have the right personality to run a franchise in the first place. Understand that what you are buying into is an established system and wealth of accumulated knowledge. There is no point in paying for a franchise system if you merely want to do your own thing. Ask yourself whether you are comfortable following the rules of the business. If you have more of an entrepreneurial spirit and want to implement lots of your own systems, a franchise may not be for you.

28 Business Franchise Australia and New Zealand

Remember knowledge is power when it comes to choosing and running a successful franchise. Read up as much as possible and talk to as many people as you can, and you’ll be on your way to a rewarding business. Tim West is the innovative Managing Director and Founder of 12 Round Fitness (12RND) which aims to provide the most convenient, results-driven product in the world. Each 12RND club is a purpose-built boxing and functional strength training facility, designed to deliver workouts created around the format of a 12-round boxing contest. They combine boxing skills and drills with functional strength and sports-based cardio exercises within a 45minute circuit. Tim has been at the helm of several successful fitness and technology ventures throughout the last 18 years. For more information visit: www.12Round.com.au

OWN A SLICE OF LA PORCHETTA! Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part of serving our guests quality Italian food, to order, using fresh ingredients.

WHY LA PORCHETTA? t " QSPWFO QSPÃ½UBCMF PQFSBUJPO t 8F IBWF TUSPOH MPDBM BSFB NBSLFUJOH support and advice. t #F QBSU PVS EZOBNJD BOE FOHBHFE GBNJMZ PG SFTUBVSBOUT UIBU MPWF QFPQMF t 8F BSF B NVDI MPWFE BOE SFDPHOJTBCMF OBUJPOBM CSBOE t +PJO PVS UFBN PG SFTUBVSBOU PXOFST XIP love getting together and share ideas. t 8F PGGFS B Ã¾BU GFF TUSVDUVSF UIBU BMMPXT ZPV UP CVJME ZPVS CVTJOFTT GBTUFS

0QQPSUVOJUJFT OPX BWBJMBCMF "VTUSBMJB XJEF JO LFZ NFUSPQPMJUBO BOE SFHJPOBM BSFBT

Visit: www.laporchetta.com.au/franchising Email: franchising@laporchetta.com.au OR call (03) 9460 6700.

Business Franchise Australia and New Zealand 29

pr o file : F l a m in ’ S h a r p

THE BUSINESS THAT GIVES YOU FREEDOM

As any tradesperson will tell you, you’re only as good as the tools you use. Flamin’ Sharp, the mobile sharpening specialists, provide comprehensive sharpening services for a wide range of professionals, ensuring that the tools-of-thetrade are ‘Flamin’ Sharp!’ Servicing four distinct customer bases At Home or At Work, the demand for Flamin’ Sharp provides endless opportunities for licensees, Industrial and Commercial: Electricians, Plumbers, Builders, Sheet Metal Workers, Roofers, Fibre Glass Boat Builders, Air Conditioning & Refrigeration Installers, Mechanics and Workshops. Hospitality and Tourism: Hotels, Clubs, Restaurants, Café’s, Deli’s, Fish Shops & Take Aways, Hospital Kitchens, T.A.F.E Colleges and High Schools. Household and Domestic: Kitchen, Home Workshop, Sewing and Hobbies, Gardening and Outdoors. Hairdressing: Salon and Mobile Hairdressers, including Sales, Sharpening and Repairs.

21st CENTURY SOLUTIONS Involved in the sharpening industry for over 40 years, Director Bob Turner has witnessed many changes to the industry. “In the early days, we only sharpened drills but it was soon noted that there was a great demand for the sharpening of ‘Hole Saws’. “Machines that were able to do this were not commercially available, but being a Fitter and Machinist by trade and operating a machine shop, within the month we had designed and built a machine to meet this demand. Hole Saw sharpening soon became the dominant source of income for the business. Further investigation uncovered a need for mobile knife and scissor sharpening and a specialist ‘Wet Grind’ system was soon added to the list,” says Bob. While competitors still use archaic ‘dry grind’ methods which heat up and ruin sharp edges, Flamin’ Sharp have been keeping pace with knife manufacturing technology and deliver 21st century solutions. Mirror Cut®, developed and trademarked by Flamin’ Sharp, is a wet finish system that has become the new benchmark for modern sharpening.

BECOME A LICENSEE In business for 25 years, Bob started licensing Flamin’ Sharp 13 years ago after recognising the huge potential for growth, and it has a presence in most States and Territories. With four new licensees joining in the last 12 months alone, now is the perfect time to join this market leading business opportunity.

30 Business Franchise Australia and New Zealand

Appealing to anyone looking for a career change, Bob says, “Good people skills and a certain amount of hand/eye co-ordination is required but age or gender is not important. I taught my daughter to become a sharpener and we recently trained a grandmother who along with her dog, is sharpening her way around Australia.” Offering comprehensive training and ongoing support and mentoring, Flamin’ Sharp provides 24/7 technical backup and a comprehensive range of spares and consumables. With complete ‘Ready to Work’ packages available, Flamin’ Sharp allows you to operate a profitable business with low overheads from home. For the price of just $88,000 GST inclusive, the Rotary Table System is equipped to service the four distinct customer bases – Industrial & Commercial; Hospitality & Tourism; Household & Domestic and Hairdressing. Equipment is fitted to a custom made service body which is installed to a vehicle you supply. Now is the perfect time to tap into an industry with the potential for unlimited growth. Exhibiting at the Sydney Franchising & Business Opportunities Expo at the International Convention Centre, Darling Harbour on 25-26 March, visit the Flamin’ Sharp stand to discuss in more detail or get in early and contact Bob now on: 0417 877 476 enquiries@flaminsharp.com.au www.flaminsharp.com.au

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How to generate business as a new franchisee quickly! Ready, set, go! It’s an exciting time to be a business owner in Australia and even more exciting working within a proven franchise system. Whilst many franchisors provide a range of services and templates to assist in setting up your business, this article will explore three key areas to hone in on and get you generating revenue, quicker!

1. Before you begin, understand your territory like the back of your hand and focus in on your target market.

“Referral partners are those in aligned businesses to yours which you may be able to send clients back to. Remember, it’s a two way street.” Matt Mitchener | Director | Evocity Consulting

This is potentially one of the most overlooked steps when starting a business. Depending on the product or service you are selling, it makes sense to unlock the information about your territory. You may receive this information from your franchisor also. Using data is key here and websites such as the ABS (www.abs. gov.au), Inivio Landscape (www.inivio.com. au/landscape) and Residex (www.residex.com. au) provide a profile and snapshot of your audience. For example, if you are starting an accounting franchise, you can use the

32 Business Franchise Australia and New Zealand

ABS website to find out how many small businesses are in your territory. If it’s a coffee franchise, what type of demographic base will you be selling coffee to? The data will also demonstrate where and how to spend your time in prospecting for new business. There are also companies which provide foot traffic data which should assist in making your decision on the location of your franchise, this may be more appropriate for a fast food franchise.

spending power and disposable income (i.e Gen Y or millennials). • Community and Social Groups. These could include church groups, knitting clubs, dance halls, LGBT hangouts or specific publications. • Club or Special Interests. Some of these could include golf, cars, hockey, football clubs. By becoming the chosen supplier of your selected club (potentially even sponsoring it) – you will be the first point of call for your services. • Specialist or product knowledge. Play to your strengths by aligning your skillset on a certain product (i.e. an expert on first home buyers, tax for small business, drones for wedding photographers, nutrition for gyms etc). Remember – pick 1-2 niches and keep digging in the one spot to find more gold! Once you understand the territory, it’s time to pick your niche(s) and be an expert. Instead of being all things to all people, let’s find and target your high value market/s is where you will shine. For many food franchises, this may not be as appropriate but for many products and services, this is important for your business and marketing planning. Some popular niches to get you thinking: • Geographic (as a franchisee this is generally standard). This could be your local area (i.e. postcodes or a 10km radius) but should also be coupled with another niche. • Cultural. Examples of these could be the Chinese, Indian, Nepalese or other cultural markets. If you are also from a similar cultural background you should

be immediately able to communicate clearly your value proposition. This works particularly well for professional services (i.e. finance brokers, real estate agents etc). • Industry or Sector. If you focus on industries which are higher value for targeted marketing campaigns, you could be digging where you find the most gold. Examples include the Navy (or military more broadly), teachers, doctors or physios. If your product or service can be aligned to an industry and you can relate to it, give it a shot! • Demographic. A lot of people jump at this one first and choose the age group in which they are in (i.e. Gen X, family groups), however, you may also see higher value in seeking niches with growing

2. Seek Referral Partners and Alliances – the lifeblood of your ongoing success! When you open the doors (or open your laptop) chances are that on day one, a deal is not going to fall from the sky. In order to ‘hunt’ for your own business as well as receiving leads from your franchisor, use referral partners where allowed to boost the first few months of business. Referral partners are those in aligned businesses to yours which you may be able to send clients back to. Remember, it’s a two way street. Connecting with small business owners in your local community could be the best time spent in the first three months of operating.

Business Franchise Australia and New Zealand 33

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“Use your LinkedIn, Facebook and Twitter to let people know that you’re now open for business!”

BE BRAVE:

BE DILIGENT:

• Ask for referrals

• Send Cards & Gifts

• Ask for testimonials • Ask family and friends for help • Call your Circles of Influence

• Write an Article • Get Published • De-Clutter – Tidy Up!

Examples of referral partners include:

• Be specific

v Finance broker with real estate agent / accountant

• Know your audience

v Gym with health food stores and cafes

• Set yourself goals

• Practice your Phrases

v Embroidery company with football clubs

• Focus on your niche.

• Listen-Repeat-Rephrase.

v Coffee franchise with local small businesses v Drones with real estate agents, farmers or wedding photographers v Dog wash with pet stores v Electrician with plumber. Exceptional referral partners may evolve over a longer period than the first few months. Just keep in mind that it’s “no not now”, not “no forever”. Diarise to follow up. Outside of referral partners, you can also form alliances with investment clubs, property clubs, service clubs, retirement groups, schools, sports groups, conferences or religious groups. When pitching your business to a new referral partner or alliance, make sure you understand what’s in it for them too – and align your pitch accordingly. When preparing your pitch also remember that there are detail people, dot point people, story people, process people and fun people – tailor your pitch accordingly.

Social media is also an easy channel to get your new business out to the masses. Use your LinkedIn, Facebook and Twitter to let people know that you’re now open for business! Once you have started seeing clients don’t be afraid to ask them for referrals and testimonials. This not only provides a stream of ongoing business but it also keeps you focussed on providing a great customer experience. Finally, it’s important to work smart. How hard you work and how much you make are not always related. Go out there and make 2017 your best year ever!

3. Use your circle of influence – friends & family – pull out that address book! Most franchisors will provide you with some marketing collateral and a set up package. This should include a step by step guide in how to market your services to those around you. If they don’t, think about the easiest way to harness your contacts. Firstly, ask your family and friends for support by helping you spread the word far and wide, ensure they understand your value proposition and why people would want to come see you over your competitors. Next, ask yourself – how many email addresses do you have? Email marketing is still the lowest cost ‘touchpoint’ for a prospect. Programs such as www.mailchimp.com.au can have an email in all of your contacts inbox within an hour telling them all about your new business.

34 Business Franchise Australia and New Zealand

• Do your Mirror Work

Matt Mitchener (Founder of Evocity Consulting) works with businesses within the Fast Moving Consumer Goods (FMCG), financial services, franchising and real estate industries helping them to grow via marketing, strategy, distribution, technology and partnerships. He is passionate about assisting small businesses develop and prosper. Matt enjoys running, craft beer and travel. He also holds an MBA and an undergraduate in International Business / Marketing. Contact Matt at: www.evocity.com.au

We take the pressure off your business by managing your energy needs One of our key objectives is to work with you, the franchisee, to achieve the cheapest possible electricity and gas pricing. We also work with your head office and other members to form a Bulk Buying Energy Group which creates greater energy purchasing power for the individual members. Our service provides you with individualized ongoing support from our experienced Customer Relations Team. We manage all your energy needs and requirements, specializing in bill and tariff reviews, change of ownership transfers, metering solutions, monthly data reports, energy reduction strategies and up to date market comparisons from start up businesses to established entities.

Our Clients

Contact us now on (03) 9872 6869 or admin@energyalliance.net.au to discuss your businessâ&#x20AC;&#x2122;s electricity and gas needs. ENERGYALLIANCE.NET.AU Business Franchise Australia and New Zealand 35

sna ps h ot: A i r c oat Aust r a l ia

CREATE YOUR FUTURE TODAY

Resurfacing Kitchen and Bathrooms - Join this expanding niche market industry with the experience of Aircoat Australia. Aircoat Australia has built a strong reputation in the resurfacing industry and prides itself on being an innovative company. Multifaceted resurfacing and restoration options include the renewal of worn and damaged fixtures and surfaces such as bathtubs, tiles, porcelain, laminates, fibreglass, vitreous china, appliances, benchtops, floors and timber surfaces. Resurfacing saves up to 70 per cent when compared to costly and messy replacement. The average bathroom renovation of replacing wall tiles and bathtub costs between $3,500 - $6,000 and can take up to three weeks to complete. By comparison, Aircoat Australia can resurface the existing wall tiles and bathtub for approximately $800 - $1,500 and takes just one to two days. Kitchen renovations are even more costly. The average cost is $8,000 - $20,000 to replace cabinetry and takes two to three weeks to complete. By comparison, Aircoat Australia can resurface the existing kitchen in just three days with a typical cost of between $2,500 to $7,000.

A GROWING NETWORK Franchising since 2008 although in business for much longer, Aircoat Australia are now expanding their franchise network, with numerous territories available within Victoria and interstate. An Aircoat Australia franchise offers fantastic income potential; an ideal home based business; an affordable and all-inclusive business package with low overheads along with the freedom to set your own hours and have a more flexible schedule - all without the new business start-up risks. In business for yourself but not by yourself, franchisees receive all the tools and materials required to start making money straight away. Added to this are innovative and best-inindustry products plus unlimited marketing opportunities. Every home, apartment block, motel chain, school, etc, is a potential customer. Seeking qualified, motivated and committed individuals, this growing franchise system is ideally suited to a DIY handy person with great customer service skills and a determination to succeed.

TRAINING AND SUPPORT Encouraging open and constructive development, all Aircoat Australia franchisees have an open line to the franchisor, with ongoing training and support included.

36 Business Franchise Australia and New Zealand

Initial training, over a three week period includes: • Five to ten days technical training; onsite and at the factory (includes all aspects of preparation and spraying, colour matching, procedures for Fleckcote product, kitchen cabinet door replacement and spraying, troubleshooting and more). • Onsite (masking, filling, preparation, kitchen measuring, shower screen removal and refitting, siliconing). • Three to five days intensive quoting and invoicing procedures with customer service skills. • One to two days chip repair instruction and practice. Recognising that everybody is different, initial training and support can be adapted to suit the individual’s needs, ensuring that any particular areas of weakness can be focussed upon. This allows the franchisee to develop at their own pace and ensures all necessary skills are in place before trading begins. Create your future now! If the idea of operating your own business in an ever expanding industry appeals, and you’re committed to offering the best service solutions, contact Aircoat Australia for more information on: 1800 247 262 info@aircoataustralia.com.au www.aircoataustralia.com.au/franchise

Join one of Australia’s top rated franchises.

Owning a Kwik Kopy franchise is your chance to be part of the success story.

WE CAN TAKE YOU FURTHER.

As a member of the Kwik Kopy family, you get to tap into a highly established and recognised brand that gives you plenty of leverage in the market. What’s more, you’ll have an extensive support network all focused on your success.

For more information call 1800 251 680 or visit kwikkopy.com.au/franchise

kwikkopy.com.au

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Why Top Performing Franchise Owners Are Successful

What is the reason why some people become highly profitable, very successful franchisees even in new or modest franchise networks? Why is it that while many franchise owners only have reasonably successful businesses as franchise owners, some of their colleagues are enjoying turnovers and profitability well above the network average and sell their franchises for significantly higher capital gain than others?

While there are over 80,000 franchise owners in Australia, not all are successful and indeed there are those who fail even in the leading franchise systems when others in the same system are thriving. Why is this so? It all starts with your attitude, risk tolerance and responsibility. If you are considering a franchise, you need to be aware that you or the franchisor may fail. Going into any business or any franchise is a risk and you and your life partner need to understand that if you fail, you may lose any cash or assets which are part of the franchise. This may include your home if

38 Business Franchise Australia and New Zealand

you have borrowed against it to finance the establishment of the franchise. Does this sound too risky for you? Are you prepared to lose some or all of your hard won cash and assets? Do you have the confidence in yourself to be a profitable franchisee? If not, then business and franchising may not be for you and best you seek employment with someone who has the qualities that allow them to employ you so that your skills can make them profitable. If you are an existing franchisee and are not in the top 50 per cent of the franchisees in your network you need to understand that it is you who have positioned yourself wherever you are placed in the rankings, not the franchisor.

“While the purchase of a franchise is an excellent way to mitigate risk, the franchisee is still ‘swimming out’ independently and as such should be aware that their actions will determine their ability to ‘grasp’ success.” Rod Young | Chairman | DC Strategy Group

someone may be granted the chance to be self governing and expect strong ROI in the long term with relative certainty. However, this is by no means a guarantee. The importance of sound business acumen, knowledge and best practice cannot be understated. Perhaps now in this everchanging competitive landscape, more than ever before, there is a need for discernment when analysing the health, performance and potential of any franchise you are considering. As with many forms of learning, wisdom with respect to franchising is largely experiential. Following my time in franchising over the last 30 years in Australia and overseas markets, I have been fortunate enough to learn and benefit from some of these franchise life ‘lessons’. I have also been afforded time to observe the various nuances, idiosyncrasies and character traits that I believe embody the spirit of the best franchisees.

Due Diligence This starts with a search for the franchise system that the better franchisees are most confident will succeed.

In my view, there is a strong correlation between those who are confident they will be successful and the development of a successful business.

Most importantly I have seen they seek out and take the best professional advice from financial and legal advisors.

Be Accountable

Some key learnings are:

How do the best franchisees think?

They research a number of franchise systems, they buy and use the products and services to confirm they are confident they can sell them and represent the brand as a proud local ambassador, they talk to existing franchisees, they look at the potential market that they will be locating in and they prepare their own pro-forma profit projections. They also seek to ensure they understand the total capital costs needed to establish the franchise which often includes the hidden costs of their drawings to live on while the business is being established, opening promotional costs, legal and accounting advice, wages while training staff before opening, and importantly working capital to support the cash flow of the franchise before it breaks even and moves into profitability.

A number of variables can quantify the ‘health’ of a franchise. The focus may be on profit and ROI, market share, local area marketing, franchisee satisfaction and growth or with less material data or measures. Successful franchisees understand nearly all of these elements are at their core, influenced by the franchisee as an owner-operator as an individual.

However, the real difference I have seen in out-performers is that they clearly understand that they are completely responsible for their success and do not expect the franchisor to make them successful or even profitable.

The reality is that many unhealthy franchisees have borne the cost of poor advice, or worse chosen not to take advice, or because of poor (or no) research are simply unaware of extraneous details that may cause the business to succeed or fail and have a naive view that the franchisor will make them successful and bail them out if they get into trouble.

A franchise is an excellent choice for many individuals considering a commitment to own their own business. As an opportunity, a franchise represents a vehicle wherein

The best franchisees know education gives rise to inspiration and enlightenment that leads them to understand what they need to do in order for them to be successful.

As a franchisee, the ability to be accountable to oneself is paramount. Successful franchisee candidates that I have come across are generally risk-averse entrepreneurs. The word entrepreneur itself originally comes from the combination of two Latin words ‘entre’, to swim out, and ‘prendes’, to grasp, understand, or capture. This came to be summarised later as someone who undertakes a risk without assurance. While the purchase of a franchise is an excellent way to mitigate risk, the franchisee is still ‘swimming out’ independently and as such should be aware that their actions will determine their ability to ‘grasp’ success. The best franchisees understand that they are accountable to themselves first and foremost. A great example of these qualities is acknowledged in the journey of Daniel Mesiti and Anthony Stahl, multi-unit Boost Juice franchisees and recent recipients of the national FCA Multi-unit Franchisee of the Year Award for 2016. As business partners, both Daniel and Anthony possessed self-accountability and accountability to each other. However their understanding of where the chain of responsibility ends saw them successfully found and run two Sydney CBD cafes and a mortgage broking service before turning to Boost Juice six years later. Their time spent in

Business Franchise Australia and New Zealand 39

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An Understanding of Relationships – Be a People Person Close interdependence of franchisees and franchisors on each other is an inevitable part of the franchising supply chain. As can probably be guessed, tension and strained relationships can be common in this aspect. Over the years I have sat in hundreds of meetings, large and small, with unhappy franchisees and seen the blame game played out.

“The ability to adopt new modes of technology into a franchise can determine whether you thrive or strive.”

business before becoming a large franchisee was an asset to Boost, growing their brand to five stores. As partners, they shared a large and ambitious goal and saw it through. Each partner brought with them their respective talents and responsibilities to the other. Perhaps a partnership is something for you to consider also if accountability can be problematic as a franchisee.

Attitude towards Technology – Be Pro-Tech President Barack Obama noted in his speech to supporters as a senator after the Feb. 5 2008 nominating contest prior to his presidency: “Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” Well, the world is changing. Trump is now President of the United States. And technology is changing at an exponential rate. In the last five years alone, the world has witnessed a paradigm shift in the manner in which people live their lives. From multipurpose drones and 3D printing to crowd funding sites and hover boards, we are living in a time of rapid changes in technology. The

ability to adopt new modes of technology into a franchise can determine whether you thrive or strive. Ian and Irene Hughes of Poolwerx (the 2016 Franchisor of the Year) are one of the best performing franchisees in the Poolwerx network and an excellent example of franchise-owner couples who adopt technology rapidly to improve efficiencies in their franchise. The ability of Poolwerx to adopt and implement new technologies has seen them listed as one of Australia’s fastest growing franchises for the ninth consecutive year by Business Review Weekly (BRW ) - one of only three brands to do so. The Australian Financial Review also judged Poolwerx as a top return on investment franchise for the third time since 2006. As a business, Poolwerx has also recently won the Australian Established Franchisor of the Year for 2016. The story of Poolwerx began 26 years ago as a ‘one man band’ out-of-a-van business and since become a large iconic Australian brand with over 106 partners operating close to 100 stores and the most highly qualified technicians in the industry. The introduction of this standard, new equipment and products has allowed Poolwerx to stay ahead of the market and remain a leading service Australia-wide.

40 Business Franchise Australia and New Zealand

“Not my fault” is not in the vocabulary of successful franchisees. They take responsibility for good relationships and work at it by being communicative and inclusive to the franchisor. They also apply this importantly to their support staff, often volunteering new ideas and being prepared to trial new concepts, products or services the franchisor has developed but not yet proven. As noted by the head of Franchise Relationship Institute and former successful franchisee then franchisor of Brumby’s Bakeries Greg Nathan, the franchise relationship “moves through stages”. Many successful franchise entrepreneurs come to understand and accept not only their own strengths and weaknesses, but those of their business partners, stakeholders and franchisor. As a result, the relationship becomes stronger, more stable and more satisfying, though not without its occasional drama. Nathan points out the “three types of relationships are often referred to as dependent, independent and interdependent”. For the third interdependent type of relationship to prosper there needs to be adequate maturity, acceptance and respect from both parties. In other words, both parties accept responsibility for shaping the quality of the relationship. This responsibility by the best franchisees for good relationships extends to the way in which a franchisee behaves with their community, their customers, their suppliers, their staff as well as their franchisor.

Understanding your ‘Partnership’ – Be Family Oriented The support of your life-partner is a major factor in the lives of successful franchise owners. This does not mean that every spouse works in the franchise with his or her partner but in successful franchises the support of the spouse and family adds so much more to the lifestyle and satisfaction that contributes

â&#x20AC;&#x153;Many successful franchisees often involve life-partners and families in the business, which while having its own challenges can help limit labour costs and boost profitability.â&#x20AC;?

to success. An understanding spouse knows the long hours, stress, administrative obligations and financial pressures are part of the commitment that the best franchisees need to make in order for their business to be successful and are supportive of the time away from family that is needed to build a business for the future of the family.

staff, developments in competitor activity and other factors that impact their business. They respond to these by engaging with the franchisor and support staff to develop and adopt new methods of doing business long before these trends may be spotted by the franchisor.

To become successful often means going without holidays or luxuries in the early years of the franchise while working a 70 hour week. This is when the support of the family is critical and becomes evident in the best performing franchised businesses. Many successful franchisees often involve lifepartners and families in the business, which while having its own challenges can help limit labour costs and boost profitability.

In summary

Observe trends in the macro environment Being a franchisee does not excuse you from having to consider external forces. How the best franchisees respond to change (or not), will ultimately influence the franchise performance for the better (or worse), regardless of market conditions. Good franchisees see changes in the needs of their local community, customers and

This pro-active, positive attitude and acceptance of responsibility for all that occurs in their franchise without blaming others is the hallmark of the successful franchise owner.

By taking complete responsibility for their success, the best performing franchisees are self-reliant, taking responsibility for the performance of their franchise and taking control of their future by relying on what they can control in their franchise.

A versatile management professional with a broad range and depth of experience founding DC Strategy, Rod is considered one of the worldâ&#x20AC;&#x2122;s leading franchise consultants with over 30 years at the forefront of franchising, licensing and business development in Australia, Europe, China, South East Asia, India and the United States.

This includes, faithfully following the franchise system, hiring, training and influencing their teams and the way they will interface with the community, inviting and listening to customer feedback, conducting regular pro-active local area marketing, careful financial and comparative analysis of their franchise on a monthly (or more frequent basis), and being actively engaged and present in their franchise during the busiest periods leading their teams, without relying on external factors that are beyond their control such as the franchisor, suppliers or the weather.

As well as his role of Chairman of the DC Strategy Group, he currently serves as Chairman of Poolwerx (Australian Franchisor of the Year 2016) and is on the Board of several other national and international companies. He is also the Global CEO of Cartridge World, a 1000 store global imaging franchise network founded in Australia and now based in Chicago, and franchised in over 40 countries. rod.young@ dcstrategy.com www.dcstrategy.com

Business Franchise Australia and New Zealand 41

pr o file : B u g R O ff

A sniff in the right direction

Victoria’s leading Pest Control Company, BugROff is a renowned pest control agency in the Wimmera region and a specialist in the detection, removal, and prevention of spiders and insects, termites, mice, and cockroaches. As a prominent pest management company with an outstanding mobile franchise opportunity, Bug R Off also has readily available termite sniffer dogs which make our franchise stand-out in a unique way. The demand for pest control services is high throughout Australia. Therefore, Bug R Off offers you the opportunity to tap into a goldmine by operating a pest control franchise

business - an industry that’s always in demand - in these markets. Our franchise is available throughout Australia.

• Full system to support your business.

Infestations of bed bugs, cockroaches, rats and other pests are intolerable in homes and harm businesses. Our pest control franchise opportunity is the perfect vehicle to serve communities that require pest control services on a regular and recurring basis. Our pest control franchise opportunities are extremely affordable and allow you the flexibility of running your Pest Control franchise right out of your home. This means, low start-up costs and high profitability, giving you more time and money to do other things you enjoy.

• Low-cost entry for large exclusive territories.

We will train you on how to provide integrated pest management and operate your very own pest control services company. Through extensive training, we have developed experience and knowledge in the treatment of General Pest and Termite (White Ant) control. As every house is different so also is our approach to pest and termite control within a client’s home. This tactical approach, asides our skills, results in a very high return rate from customers year after year. Let us teach you how we do this!

• Residential homeowners;

Being a franchise owner with BugROff is being in business with a partner you can trust. Our support team will work as hard as they can to support the business development of your franchise. The other benefits of a BugROff franchise include: • Full on-the-job training provided by the owner. • Full dog handling training.

42 Business Franchise Australia and New Zealand

• Full set up of vehicle & territory for marketing. • The Trained Sniffer dogs are provided by the owner for a flat monthly fee at an affordable rate. • A full system to help you establish your business and then support your business growth from a franchisor team that is genuinely committed to your success. • Outstanding income potential. Our pest control franchise opportunity allows you to offer pest control services to: • Commercial business owners; • Government agencies; • Utilities and railroads; • Schools; and • Much more. Looking to open your own pest control franchise? BugROff, a leading and licensed pest control company is a great place to start. You can learn about additional pest control franchise opportunities by contacting The Franchise Shop today. Take a step towards your future; talk with us today! 1300 139 557 enquiries@thefranchiseshop.com.au

Business Franchise Australia and New Zealand 43

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VOL 11 ISSUE 03 march/april 2017

ce i r P is right! the

Franchises you can afford

funding

a franchise business

FE AT U R E: franchises you can afford

e x per t a dv i c e

Funding

a franchise business “The fundamentals of funding a franchise business have not changed over the years however the financial management tools and information available from the internet and other sources have expanded.” Labrina Tsekouras | Senior Business Development Manager VIC & TAS, Westpac

The franchise sector offers many appealing opportunities with a large variety of options available to potential buyers interested in business. The purchase of a franchise business is a major investment decision which can be both an exciting and stressful time for a potential franchisee. Funding a franchise business is a very unique experience as both the franchisee and the financier needs to consider additional information. The fundamentals of funding a franchise business have not changed over the years however the financial management tools and information available from the internet and other sources have expanded. This makes it easier for prospective franchisees to find good opportunities and also enables franchisors to provide more relevant information to franchisees which will help find the necessary funding. In this article

I will be discussing the various franchise businesses that exist and how franchisees can source funding.

KEY FRANCHISE MARKETS The most well-known business format for franchising is the retailer – retailer model in which the franchisor promotes products or services through franchisees who adopt the franchisor’s business model and set operating practices. In 2017 the key markets in which franchising exist in includes: retail trade, accommodation and food services, administration and support services, personal services, education and training, construction, transport, financial and insurance services, healthcare, rental, hire and real estate services. Many of these growing franchise markets belong to the service business franchise space and often these businesses do not include physical premises, physical stock or assets that can be relied upon by a financier for security purposes. These service based businesses include businesses such as a cleaning franchise business, a mowing

46 Business Franchise Australia and New Zealand

franchise business or a pet grooming franchise business. These franchise operations often also cost significantly less to get into than a retail trade business such as an established fast food franchise chain or an established accommodation franchise chain. Bearing the low cost entry these franchise operations are also generally funded differently due to the lack of business assets that financiers can rely on. Businesses with business assets that can be relied upon can be funded in several ways by financiers, and this can also vary depending if there is a formal accreditation arrangement with the financier where a percentage of the set up costs can be funded against the business. Further detailed discussion about financing follows in the funding section.

CHOOSING A FINANCIER After identifying the franchise opportunity the next step is to determine ways to fund the purchase. It is therefore important to work with the franchisor, financial advisor, accountant and lawyer to find out what is achievable, what is realistic and to put

FE AT U R E: franch ises you can afford together a comprehensive business plan to achieve the right funding available to you. A business plan will assist franchisees to understand the majority of their financial requirements such as purchase price/setup costs, stock requirements, debtor levels and ingoing costs (for example, legal fees, accounting fees, stamp duty, government charges, insurance prepayments and landlord bonds). Franchisees should choose a bank which has expertise in the franchise sector and which provides a range of financial products and services that the franchise business will need. In all probability this will not just be one simple loan but will involve a combination of two or more of the following options:

FUNDING OPTIONS Business Term Loans Bank business term loans are repayable over a specified term and are therefore a well suited finance for the initial purchase, or the set-up of a business. This can include funding for the franchise fee, initial stock,

fit-out and equipment costs. Care should be taken to match the term of the loan with the remaining term of lease and franchise agreements to ensure that business debt is fully paid at the expiry of these agreements. Generally business term loans can be secured against equity in the borrowerâ&#x20AC;&#x2122;s residential property or in some situations the borrower may be able to use the assets of the franchise as part of the security mix. This will depend on the arrangements between the bank and the franchisor and if an accreditation is in place. In practice, if an accreditation is in place this means that a potential franchisee needs less of their own money to get into a franchise business, they can secure part of the investment against the assets and future cash flow of the business. Short Term Funding - Overdraft This type of finance is suited to cover cash flow fluctuations. Overdrafts may be suitable for seasonal business and franchises with a high level of debtors or stock. This facility is generally secured by the borrowerâ&#x20AC;&#x2122;s residential property.

Equipment Finance and Leasing Many franchise businesses require specialised equipment such as pizza ovens, coffee machines, cool rooms, display cabinets and vehicles. Equipment finance is normally managed using the equipment as security and over a term within the useful working life of the item being funded. Equipment finance has the advantage of lowering the equity/investment required, as funding could be up to 80 - 100 per cent of value (if new). This is a facility for a specified term secured by equipment and may be provided by a bank or finance company. Secured Funding This is used extensively, particularly where long-term funding is required or when funding is sought for service based businesses or a franchise operation that may not have a formal accreditation with a bank in place. It may require an ownerâ&#x20AC;&#x2122;s contribution: for example, free equity in a property or the total funding can be secured against the property. Other forms of security or third party guarantees can also be considered. Secured lending would usually

Business Franchise Australia and New Zealand 47

FE AT U R E: franch ises you can afford

e x per t a dv i c e

be the cheapest option and the part of the loan secured against property can often be done over a longer term, which can lower monthly repayments and ease cash flow pressures.

“Care should be taken to match the term of the loan with the remaining term of lease and franchise agreements to ensure that business debt is fully paid at the expiry of these agreements.”

Landlord contribution In some instances another possible source of funding could come via the landlord in the form of fit out contributions and set up costs. Loans from friends or family Friends and family can become investors in your franchise operation if they have the willingness or means to invest. Even though your investor or financier may be your family and friends, it is best to have formal documents still prepared to ensure there are no problems down the track.

INFORMATION REQUIRED Information generally required for a franchise loan application is as follows: • Copy of the proposed Franchise Agreement. • Detailed list of set up costs – for greenfield sites only. • The applicants Curriculum Vitae detailing their background, experience and qualifications.

• A detailed Business Plan, which must include 12 month’s cash flow and profit and loss projections. • Copy of the proposed Lease Agreement. • An executed Business Loan Application – provided by the bank. • The applicant’s personal tax returns for the last two years. • The last two years’ Tax Return and ATO assessments – for existing business. • Tax portal printouts (1 year) - for existing businesses. • A copy of the sale contract - for existing businesses. • The last 12 months’ bank loan and transaction account statements – for refinance applications. • Client contribution details and evidence of any savings.

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Westpac has supported the franchise sector in Australia for over 20 years. The growth of a specific franchise system is supported by providing streamlined processes for lending, as well as access to other lending transactional solutions. The bank also has a national network of franchise specialist business bankers who are able to deal with specific day to day needs of the franchise customer. Labrina Tsekouras is the Westpac Senior Business Development Manager for Victoria and Tasmania and specialises in the franchising sector. Contact Labrina at: 0418 246 903 ltsekouras@westpac.com.au www.westpac.com.au

The information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreements should seek their own independent legal, accounting and other advice.

Beyond the bank

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Business Franchise Australia and New Zealand 49

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Over the many years that Business Franchise magazine has been involved in franchising in Australia and New Zealand, we have dealt with hundreds of different franchise systems on a regular basis. From the newest up-and-coming ‘must-have’ to the ‘old-timers’ established and successful over many years, franchising has never been so diverse. So, where do you start? One of the questions that we get asked by people researching the purchase of a newcfranchise is, “Which one would you buy?” but surely the first question the potential franchisee should be asking is of themselves and should be “Which one can I afford?” If you are lucky enough to know the industry you wish to join, the answer to this will help you decide which franchise systems to approach. If you have no idea of the industry type you wish to buy into, this is a helpful exercise as it will help to narrow down the wide range of 1600+ franchise systems available in Australia and New Zealand.

So what is your price range? Following are some of the current franchise systems available, all categorised by price bracket to give you some helpful information on where to start. For additional information and contact details refer to pages 94 and 95.

experience and guidance. Choose your hours and whether you work solo or hire employees. Using our trusted name and exposure, having access to our continuing support and guidance, your new business can be anything you want it to be. Aircoat Australia has built a strong reputation in the resurfacing industry and prides itself on being an innovative company in multi facet resurfacing and restoration. We specialise in the renewal of worn and damaged fixtures and surfaces including bathtubs, tiles, porcelain, laminates, fibreglass, vitreous china, appliances, benchtops, floors and timber surfaces.

CHEM-DRY Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986. Our unique, hot-carbonated water extraction method, combined with best in-class products and services, and unparalleled training and support, make it impossible to find a better cleaning franchise opportunity.

FASTWAY COURIERS AUSTRALIA & NEW ZEALAND 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

No experience is necessary, as Chem-Dry provide comprehensive training on all aspects of the business. We are looking for franchise partners that have the drive and determination to work hard and enjoy their success.

• Guaranteed income package*

Our on-going marketing and operational support will ensure that you are able to enjoy the flexibility and lifestyle benefits that owning your own successful business can provide.

• A perpetual franchise agreement with no ongoing fees

Up to $50,000 AIRCOAT AUSTRALIA Shining Opportunity from a Leader in Resurfacing Resurfacing has been recognised as one of the most lucrative businesses in decades. An Aircoat Australia Franchise can offer the right person fantastic income potential, an ideal home based service, and an affordable all inclusive business package incorporating high profits with low overheads, the ability to set your hours for a more flexible schedule and begin your new career without the ‘new business’ startup risks. You’re the boss, making all the decisions for your business yet you are under an umbrella of total support with Aircoat Australia’s

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• Low start up costs • No weekend work • Ongoing business support and training • Exclusive territories

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

GROUTPRO Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SET UP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and recolours old grout saving customers time and money without having to re-tile. Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast.

JIM’S BUILDING MAINTENANCE Always dreamt about your own business or you want to grow your existing business? Then talk to us. Jim’s Building Maintenance, part of the Jim’s Franchising Group, are looking for persons with trade experience to join our team. If you are motivated and want to succeed, strive to grow or have your own business and work the hours that suit you, then Jim’s Building Maintenance is for you. We offer the following opportunities: 1 Regional Franchisor (Master) Country wide: • Great growth potential; • Various streams of income; • Build up a great team of Franchisees under you; • Flexible hours; and • Ongoing Support. 2 Franchise Territories: • Fixed monthly franchise fees and no royalties to pay; • Work Availability Guarantee; • Exclusive Territory; • Work anywhere you want without missing out on the work you love to do outside your territory; and • Growth potential.

LAVA COFFEE The coffee franchise with a difference! Ever wondered why coffee franchises are so expensive to set up? So did we…and we decided to do something about it. Gone are the expensive start up fees and overpriced

equipment and fitting costs. At Lava we are all about the highest quality coffee with the lowest possible running costs – giving you every chance to win. Our head office support team are highly experienced in franchising, retail and coffee you will never feel alone. Our focus is ‘out of the box’ store formats and ‘non-traditional’ locations to ensure we stand out in the booming coffee industry. No experience necessary as a comprehensive training and launch program is all part of the package. If it is time for a change and you are ready to join a team that wins contact us today to find out more.

LITTLE KICKERS & LITTLE RUGBY

As excessive noise and energy efficiency are prominent issues plaguing home owners, now is the perfect time to become part of an expert team who solve these issues every day. Magnetite franchisees create world class results for existing windows, without the mess and fuss of replacement systems that add cost to the customer and waste to the environment. Magnetite franchisees specialise in double glazing existing windows, as the core offering in a product range that includes seals, tint and other complementary window treatments. Our solutions provide all the benefits of double glazing without the cost and mess of replacement windows. Join the team that has: • 18+ years technical and practical experience • #1 place in a niche market, with a unique product range • Comprehensive, hands-on training, with ongoing business and technical support • National recognition through membership of key industry bodies

Double brand opportunity! We offer fun, energetic, healthy, imagination based activities for kids aged 18m to 7 years. With over 40,000 children attending weekly, we pride ourselves on being the leader in preschool sport! Little Kickers & Little Rugby offers a business path for people whom are passionate about working for themselves and creating a FUN environment whilst achieving financial success through our Play Not Push ethos. Franchisees need not have a background in business as full training is provided. Being personable and a self-starter is essential. Members of the FCA, the peak body of the country’s franchising sector, since launching, Little Kickers has become the most established and fastest growing preschool program in Australia, replicating the success that the brand has enjoyed around the world.

• Average franchisee tenure now over 12 years.

OVENU Ovenu the professional oven cleaning and detailing service. Established in 1994, Ovenu is the largest oven cleaning and detailing franchise in the world. Using biodegradable, non caustic odour free products, developed exclusively for Ovenu, our system will return any oven back to showroom condition. Franchisees receive full training, back up and support. Generous territories are available in prime locations across Australia. If you are looking for a highly profitable, low entry cost business that delivers great rewards and job satisfaction with the flexibility of being your own boss call us now.

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Seeking interest for Sydney & Surrounds, Canberra, Coffs Harbour, Port Macquarie, Northern Territory and Tasmania (Hobart & Launceston).

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double hung windows, casement windows and doors. Become part of the success story with: • Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. We are looking for passionate self-motivated people to join the Thermawood team.

V.I.P. HOME SERVICES FENCING & HOME MAINTENANCE

SOCCAJOEYS

You genuinely keep all the profits!

Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 8 years. We deliver our programs to over 27,000 children annually with over 300 classes in operation across the country.

• Learn a range of new lifelong trades.

Our mission is to give children the opportunity to develop skills for life through soccer. Transform lives, including yours and become a Soccajoeys Franchisee.

• Customers contract and interest free finance.

We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives.

• From $7,000 deposit + Support Payment Plan.

• 4 Weeks Paid Training - Home Maintenance

Established in 1991, Security with Australia’s largest and oldest network. The name of the industry.

• Ongoing coaching and mentoring

• Ongoing training to boost your success

• Guaranteed work available anytime after training. • Head office training plus follow-up on your own job.

• Lifelong support from 6 Head Office trainers.

• Continuous Head Office support (marketing, operational, financial and systems)

• Trusted Australian brand • Become part of a thriving and energetic network of franchisees • Your own business and exclusive franchise zone

SPRAY PAVE AUSTRALIA 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.

• 8 Weeks Paid Training - Fencing

• Comprehensive Cloud based IT systems • National and local marketing Regional (Master) Opportunities available! Currently we are seeking suitable candidates to take up this excellent but limited opportunity that is available Australia Wide. Husband and wife teams or business partners with integrity, energy and selfmotivation should apply!

• Coaching and mentoring workshops

• Flexible lifestyle.

Affordable Franchise Opportunities NOW available in Melbourne, Victoria and Perth in Fencing or Home Maintenance.

• And much, much more.

• Access to industry leading childhood development programs

• Rewarding career in the childhood development industry

THERMAWOOD Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system. Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise. Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including

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With the Australian tutoring industry worth $6 billion, it’s a great opportunity to join a fresh and positive company.

APPLIANCE TAGGING SERVICES

With a low cost investment and our franchisees benefiting from our exceptional support and proven systems and programs, it’s a great time to find out more about owning your own Begin Bright centre and help children to become happy, smart and confident.

Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 12 years’ experience, ATS are Australia-wide 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. No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff).

BEGIN BRIGHT Looking for a business opportunity with high rewards both personally and financially? If you have a real passion for working with and helping people, a Begin Bright school readiness and primary tutoring franchise could be for you. Begin Bright has opened over 30 centres in the last 5 years and has rapid growth plans.

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From $50,001 to $100,000

BUGROFF Victoria’s leading Pest Control Company has an outstanding mobile franchise opportunity and we have readily available termite sniffer dogs which make our franchise unique. The demand for pest control services is high throughout Australia creating opportunities for a high-income pest control franchise providing pest control services on a regular and recurring basis. Our franchise is extremely affordable and run right out of your home. This means low start-up costs, high profitability, and more time to do other things you enjoy. We will train you on how to provide integrated pest management. Our approach skills and systems results in a very high return rate from customers year after year. Our pest control franchise opportunity allows you to offer pest control services to homeowners, business owners, Government, Utilities, Schools and more.

DREAM DOORS AUSTRALIA A dream opportunity! Do you dream of working for yourself and earning a stable income? Make it a reality with Dream Doors – one of Australia’s

fastest growing franchises. You don’t need any previous experience. It’s easy and affordable to set up your own franchise, backed by comprehensive support and a proven business model with over 14 years of international success. Be your own boss! The unique Dream Doors ‘facelift’ concept makes it possible for Aussies to achieve a ‘new’ kitchen for a fraction of the usual cost, by replacing doors, drawer fronts and benchtops. The market response has been extremely positive, with some of our franchisees achieved $1.0mil in sales in their first year. Call today and make your dream a reality.

DREAM DOORS NEW ZEALAND You can achieve the freedom you’ve always dreamed of with a Dream Doors Kitchen Franchise in New Zealand. Whatever your Franchising “Dream” is, this internationally proven Franchise concept has been successfully working in the UK for 16 years with 70+ Franchise outlets, for 9 years in New Zealand with 10 Franchise areas and 22 sold in Australia. The need for our business is incredible, with customers all the time commenting that we saved them $1000’s on their kitchen refurbishment. The business is growing very strongly in Australia and New Zealand. We are currently recruiting Franchisees for various parts of New Zealand.

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JIM’S POOL CARE & MOBILE POOL SHOPS Join our team and Australia’s largest franchise system to build a business that suits your goals and lifestyle. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. You charge for your time and charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can work and gives you scope to grow the business to a level that suits you.

The initial franchise fee is based on the population base of your chosen Franchise territory. The Dream Doors Franchise business is ideal for partnerships or husband/ wife teams or entrepreneurs looking for a middle-market retail opportunity providing a bespoke service to a growing market.

a secure and proven franchising business model. Each Ecomist franchise has its own exclusive territory based on post codes and purchase price is generally 2x the net income of the existing business.

FLAMIN’ SHARP Become a mobile knife, scissor and tool sharpening professional. Break away from the rat race, ‘be your own boss’ and achieve your own lifestyle and financial goals anywhere within Australia. You get a complete ready to work system and comprehensive technical and business training. Enjoy flexible work hours and because this is not a franchise, there are no territorial restrictions or ongoing fees, work anywhere and enjoy 100% of the profits. All just $88,000 plus a suitable vehicle. Make a fresh start in your life!

JIM’S ANTENNAS ECOMIST AUSTRALIA Established in 1994, Ecomist Australia is a leading provider of premium quality hygiene products and services, specialising in Odour Control and Insect Control. Our core product is an innovative programmable aerosol dispensing system that won an award for the Best New Product from The Aerosol Association of Australia and New Zealand. Our aerosol products are manufactured in New Zealand and we offer natural insect killer and over 50 fragrance options with French perfume.

Join Australia’s leading Digital TV & Home Theatre installation specialists. Jim’s Antennas is a division of the Jim’s Group of companies- Australia’s leading home services company with over 3500 Franchisees operating throughout Australia across 38 divisions. With a reputation for excellence in customer service, Jim’s Antennas has an excess of work available across Australia and is looking for self-motivated and enthusiastic people to join the team. • No Experience Required

Our ultimate aim is to enhance the environments of our customers through our high quality products and excellent aftersales service.

• Paid On the Road Training

Over the last 23 years we have developed

• Franchises Available Across Australia

• Work Availability Guarantee • Work Where You Want, When You Want

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Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same at fee with all training and ongoing support included. If you are ready for a change then you need to put us on your list. We have selected opportunities around Australia so give us a call and come for a ride along.

JUST CUTS AUSTRALIA & NEW ZEALAND Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 90,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you. Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™.

Want to work your own hours and on your own terms? Don’t want the risk of being tied into a shop Lease? Perhaps you’re looking for variety in your workday and enjoy being outdoors, but don’t want to get your hands dirty? Look at things from a different perspective! Exciting opportunities now exist to join National Drones; Australia’s first CASA certified, ISO accredited franchised service provider of aerial photography, videography, spotting and surveying services utilising Remotely Piloted Aircraft Systems (RPAS). With hundreds of potential uses, RPA ’s are being used to cut costs and improve customer’s bottom lines by saving time and improving safety across a range of industries, including agriculture, building and asset inspection, solar panel inspections, civil engineering and construction, mining, insurance assessment, emergency services, commercial photography, cinematography, media and television. No prior experience is necessary as all training is provided. Get your career flying today!

NOVUS AUTO GLASS NOVUS Auto Glass specialises in Windscreen repair technology.

If you are hardworking and service focused with a desire to succeed then don’t miss this rare opportunity - enquire about an OZ Bin Cleaning Franchise or Master License.

PIZZA TEMPTATIONS As a franchisee of Pizza Temptations you will operate your own business. You will receive full training to ensure you are confident operating the business, including all aspects of food preparation. At the core of our business we value: • Delicious Italian food • Exceptional customer service • Value for money • Convenience, Quality, Consistency • Fun Environment • Streamlined Business and Systems. This will enable you to build a reputation for quality and service in your franchised territory. Although you will be working for yourself and will be your own boss, we are with you every step of the way and are committed to providing ongoing support and advice to ensure your business is a success.

If you are passionate about food, like working with people and are looking for a change then this could be the opportunity you have been looking for!

SNAP-ON TOOLS Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country. Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional technicians, with an established network of franchise operations across the globe. After more than 25 years in the Australian market, Snap-on continues to perform, providing robust financial results for its network of over 170 franchisees. Extensive training and ongoing support is provided no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.

THE INTERFACE FINANCIAL GROUP – IFG 50/50 The Interface Financial Group franchisees provide short-term working capital for businesses by purchasing their invoices at a discount. In the current economic climate SMEs need working capital but banks are unwilling or unable to provide it. Many of these businesses are turning to Interface for a solution. Interface has been in the alternative finance market business since 1972. It is the leading alternative funding source for

NOVUS is an international brand with locally owned and operated franchise territories across Australasia. As the inventors of windscreen repair NOVUS offers a franchise package covering everything from technical training to marketing. Enquire today to become part of the NOVUS network.

OZ BIN CLEANING OZ Bin Cleaning is Australia’s largest and fastest growing bin cleaning business. Since cleaning their first bin in October 2001, OZ has revolutionised the bin cleaning market. OZ commenced franchising in 2005 and has a simple proven business model and unique mobile bin cleaning units built locally that clean all sizes of bins.

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NATIONAL DRONES

The business is easy to operate, mobile, requires low overheads, with ongoing repeat income and most areas have an existing client base to get you started. You will be provided with comprehensive and ongoing training in all areas, dedicated network committed to your success who are led by the most successful and experienced Franchisors in the market. Boasting a very impressive customer base you can be assured you will be joining a highly respected team of professionals.

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business, and distributes its service through its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, the United Kingdom, the United States, Mexico and South Africa.

From $100,001 to $250,000

The IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees

Are you interested in a career change, the beauty industry or owning a beauty salon? Do you want to expand your already successful business portfolio?

50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an above-average return.

YARRA VALLEY FARMS Our franchisees service the Hospitality Industry including Restaurants & Cafes with farm fresh fruit & vegetables. Franchisees provide outstanding service to their customers with the help of the Yarra Valley Farms unique computerised systems. Our franchisees benefit from a guaranteed weekly income and direct in territory sales support for the first six months to ensure they get their new business off on the right foot. When our franchisees arrive at our depot in the morning, all their orders are picked and packed ready for checking then loading on their truck for the day’s deliveries. We can even provide a relief driver so you can take a holiday! We require franchisees who are customer focused and can deliver outstanding service and support each day. We require our franchise to continue to maintain and build their customer base within their territory with the help and support of Yarra Valley Farms. We have territories available in Melbourne, Sydney, Gold Coast and the northern rivers of NSW.

Ella Baché

Now in our third generation of family ownership, Ella Baché boasts the country’s largest beauty franchise network and our products and services are available in over 150 salons nationwide. Ella Baché are leaders in skincare products, salons and education in Australia because we attract leaders and evolve with new and innovative products, ideas and techniques. As a franchise owner, you can expect the ongoing support and training you need to create the vibrant lifestyle you want.

MIDAS Midas is a trusted household name with over 40 years of experience in the Australian market. Initially establishing itself as an exhaust and muffler specialist, we’ve become the auto service experts specialising in car service, brakes, suspension and, yes of course, exhausts. There are currently over 88 Midas Auto Service Expert centres across Australia and we have an ambitious plan to grow our network across Australia. We are always looking for new franchisees who have a passion for all things automotive. Midas franchisees are comprehensively supported in all areas of business, including workshop operation, national & local marketing, a fully-integrated point-of-sale system and ongoing local field management expertise.

MRS. FIELDS BAKERY CAFÉ Exciting opportunities now exist to join Mrs. Fields Bakery Café Franchise network throughout Australia. Mrs. Fields’ strong brand awareness, unique positioning, proven business model, comprehensive training, along with detailed operational procedures and marketing tools, will assist you reach your business goals. Mrs. Fields is committed to ensuring our franchisees build a successful business assisted by your Franchise Business Manager. Be in business for yourself, but not by yourself, with assistance every step of the way. Mrs. Fields currently has 38 Bakery Cafés, located throughout Australia, with 15 new opportunities available for motivated Franchisees. Our Franchisees benefit from the strength of Mrs. Fields brand and quality products. Our retail systems and processes, coupled with our award winning coffee, exclusive sweet and savoury product range, will ensure you exceed your customer’s expectations.

STEVE COSTI’S FAMOUS FISH Steve Costi and his family have been in the seafood business since 1958, and after years of success have decided to franchise the Famous Fish business. Consider these facts: • Seafood consumption in Australia has increased by 27% per capita since 1997. • Of the 30,000+ take-away venues, generating in excess of $7 billion in retail sales, there are no multiunit, integrated seafood operations. • Fish & Chips remains the #1 take-away food item sold by independent take-aways in Australia. • Consumption of seafood by Australians under 20, increases at double the rate of meat and dairy, annually.

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through marketing and advertising.

• Professional support team with a range of skills to assist you.

“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.”

With new stores opening in countries across the globe, be part of something special.

$250,001 and above CLARK RUBBER Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network to more than 60 locations nationwide.

Coupled with the strength of the Costi Brand, our franchisees will benefit from our comprehensive training, business, marketing and head office support. Set sail in one of Australia’s most successful retail sectors!

THEOBROMA The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods”. The concept was developed in response to the spiralling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue. Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail. • Highest quality chocolate products.

In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer. Clark Rubber offers a unique business proposition which includes business development, site selection, comprehensive training and ongoing marketing and IT support. Clark Rubber has identified several great opportunities for further growth, and is now looking for friendly, customer service-orientated business people to join its network.

CREMA ESPRESSO The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point of sale terminal, uniform package, store design & fit out together with ongoing research and development supported

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.

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• Full training provided.

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LA PORCHETTA La Porchetta is the largest Italian Restaurant Chain in Australia and New Zealand, and love serving quality Italian food with fresh ingredients. The first La Porchetta Restaurant was opened in Melbourne’s Italian hub in 1985, and soon it became renowned as a special place to experience lovingly prepared food. La Porchetta is now looking to expand the network of franchisees throughout Australia and New Zealand. We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the dream and La Porchetta will provide the recipe for success.

LENARD’S CHICKEN Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 of weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills.

HAIRHOUSE WAREHOUSE Hairhouse Warehouse, Australia’s leading hair & beauty brand, has huge plans for the next few years to expand with 20 new stores planned to be opened around the country. We are looking for passionate people who want to own their own business, work for themselves and take control of their own destiny. Hairhouse Warehouse has become a household name in Australia, with a proven business model that continues to evolve and generate strong returns for franchisees.

KWIK KOPY Start your franchising journey with Kwik Kopy, the leading provider of design, print and online solutions throughout Australia. Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high quality services on-site. Owning your B2B franchise means operating business hours Monday to Friday so you’ll also enjoy work-life balance. As a Kwik Kopy franchisee you get to become your own boss and be part of a supportive community committed to your success. You’ll also receive all the training you require, so no prior print or design experience necessary.

Lenard’s Chicken is Australia’s favourite chicken shop and a leader among Australia’s fresh food retailers. Our unique concept of value-adding to fresh chicken is one our competitors have tried hard to imitate with little success, and truly makes us the chicken specialists. This year we have embarked on an exciting new chapter in our almost 30 year history, introducing a new contemporary store design and range of hot products - including premium, free range Infused Roast Chickens. Already attracting rave reviews from longstanding and new customers, Lenard’s Chicken is destined to tantalise the taste buds of Australian consumers for another 30 years!

A Kwik Kopy franchisee is young at heart with business experience, entrepreneurial flair and most of all – an absolute passion for customer service. We have both existing and new locations for sale throughout Australia.

(E&OE)

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FE ATURE: fr anch ises you can affo r d

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FE AT U R E: franch ises you can affo rd

e x per t a dv i c e

The Ad said…

“It is imperative that you talk to franchisees that are operational on a day-to-day basis to ensure that you have a full understanding of what the franchise entails.” David Banfield | President | The Interface Financial Group

60 Business 60 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand

Why franchising? Quite simply because it represents a well-established and proven method of doing business. Franchises come in all shapes and sizes, but they all have some fundamental traits that set them apart from non-franchise startup businesses. Franchising represents a proven method of doing business. Generally speaking, the franchisor has been there and done that and, as such, established a tried and tested procedure. Everything has been considered right down to the specific location for the franchise. Franchising also represents a speedy entry into business compared to a more conventional ‘starting from scratch’ approach. Franchising brings with it an organised training program and backup and assistance programs so that, although you are the boss, you’re not necessarily on your own. Franchising gives you the opportunity to be open for business in a comparatively short period of time without all the hassle of having to reinvent the wheel in the process. Therefore, if it’s so good, why wouldn’t everyone want to be their own boss? Needless to say, owning your own business, franchise or otherwise comes at a cost. The cost of entry into a franchise varies greatly from an investment of less than $100,000, to investments that range into many millions of dollars. Therefore, it may be that such an expenditure for a business startup may not be in everybody’s budget and comfort zone. And that comfort zone extends not only to a financial involvement, but there will always be a risk involved in any business, albeit well-controlled and managed in a franchise environment. When considering a franchise or even a regular startup business, you have to consider if your temperament is well-suited to business ownership, and being the boss. As the ‘boss’ you are often also the company IT person, the HR department, the maintenance manager, and so on. A

franchise will certainly give you training in many of these aspects, but always remember that when it comes down to actually doing the job, that task will probably fall on you as the owner. You need to therefore ask yourself whether or not you have a mindset and ability range that can cope with wearing many, many different hats. Many people transition from the corporate world into franchising as their second career. Many will tell stories of working 50 or 60 hours a week in a corporate environment, thus their desire to move into business ownership. Owning your own business and being the boss does not make you immune to working those same long hours. The logic behind that is often that “I am the boss and I’m now working for myself”. While that may be completely true, long and unsocial hours are still long and unsocial hours, regardless of who the boss is. At the beginning of every new year, many people resolve to change their circumstances and, in numerous cases, that translates into becoming their own boss. While franchising is an accepted method of entry into the business world and facilitates becoming your own boss in a timely and often cost-effective manner, it must be remembered that this is a very important step to undertake: always look at your own internal inventory to see if you are indeed well-equipped for the life of a franchisee as you work through your investigation process. It is imperative that you talk to franchisees that are operational on a day-to-day basis to ensure that you have a full understanding of what the franchise entails.

“Franchising represents a proven method of doing business. Generally speaking, the franchisor has been there and done that and, as such, established a tried and tested procedure.”

FE AT U R E: franch ises you can affo r d

...and the information that followed talked about an exceptional franchise opportunity. Being your own boss is very often linked to franchising.

In researching any business, be it a franchise or a startup opportunity or resale, it is absolutely imperative to conduct extensive and thorough due diligence to ensure that what you are transitioning into exactly what you think it is, and that you are financially, physically and mentally equipped to handle the challenges that come with being your own boss. We have mentioned many attributes that are inherent in a franchise, and another that should not be overlooked is the fact that as you consider a franchise, there is a wealth of information available to you from existing franchisees, past franchisees and the franchisor. The franchise discovery process should provide you with an abundance of information to ensure that you’re making the right decision to be your own boss. David Banfield is the President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. www.interfacefinancial.com.au/franchise

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PR OFI L E : M r s. F i el ds B ak ery Caf é

Mrs. Fields Bakery Café

Making Plenty of Special Moments in 2017 At Mrs. Fields it is all about “making the moment better” for their customers and their Franchise Partners with delectable, indulgent, softbaked cookies. In 2017 Mrs. Fields Bakery Café plan to make that moment a whole lot better, for many more customers and their Franchise Partners, following their expansion plans for 2017, of the outstandingly successful, new look Mrs. Fields Bakery Café. With their warm and inviting kiosks, along with their delicious new café style menu, Mrs. Fields Bakery Café is currently baking fresh Franchise opportunities Australia-wide to add to their current 38 Cafés, including: NSW: Bankstown, Armidale, Tuggerah, Albury, Wagga, Chatswood. QLD: Northlakes, Robina, Ipswich, Grand Central Toowoomba , Strathpine. ACT: Woden, Canberra Central. VIC: Airport West, Woodgrove. SA: Seaford Central , Elizabeth. WA: Mandurah Forum, Dianella Plaza, Warnbro Centre. NT: Palmerston Darwin, Casurina Shopping Centre. TAS: Eastlands.

About Mrs. Fields Cookies Mrs. Fields was launched in the USA in 1977 by Debbi Fields, who was trying to create the finest oven fresh cookies. Fields opened her first cookie store in Palo Alto, California in 1977. Mrs. Fields then opened its first Australian store in the 1980s, offering customers its signature soft baked indulgent cookies and over the years, they have expanded their menu to include its award winning coffee, with its café style product range, incorporating sweet and savoury

breakfast, lunch and snack options, along with their famous take home cookie packs. Mrs. Fields Bakery Café Franchise group has been busy behind the scenes, undertaking a broad analysis of the brand, which has included identifying the customers of the future and introducing and enhancing its product range. It has also redesigned its packaging, introduced new, hi-tech equipment and exciting café style product range, including breakfast and lunch options, along with their famous freshly baked, indulgent, chewy cookies and award winning coffee. “We’ve completed some extensive market research into what our customers’ want, what works, what doesn’t work and we’ve compiled all the feedback. The results certainly speak for themselves – an exciting new café style menu along with warm and inviting stores,” explains Peter Elligett, CEO, Mrs. Fields Bakery Café. “Our philosophy is about making our customers feel good through simple, special moments, regardless of the occasion. Whether it’s spending some time with the kids, catching up with friends, or enjoying a quiet blissful moment to yourself, our aim is for our freshly baked, mouth-watering treats, to provide a heart warming and memorable experience to all our customers.” Mrs. Fields Support Team are constantly looking to develop new and innovative drink and food products, to add to their café style menu. The newest cookie flavour to be released is their gooey caramel fudge cookie…… heaven! “In terms of what’s next for Mrs. Fields, we’re remaining focused on the growth strategy of our Mrs. Fields Bakery Café concept. We currently have several franchise sites available in a number of key locations around Australia.

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The benefit of the Mrs. Fields brand is it’s longevity and it’s ability to adapt to the current food and coffee trends in the marketplace. Best of all it’s a brand where our goal is to Make Moments Better for both our customers and Franchise partners” Elligett says.Mrs. Fields currently has 38 Franchised Bakery Cafés, located throughout New South Wales, Queensland, Victoria, Western Australia and South Australia, with their newest, Darwin, Northern Territory, due to open in July 2017. Mrs. Fields’ simple business model, comprehensive training programs, great marketing campaigns, along with ongoing support, ensures great work life balance. No experience is required, but passion is a must! For more information regarding Mrs. Fields Bakery Café Franchise opportunities contact Lee Rubino, Mrs. Fields Bakery Cafés’ National Franchise and Leasing Manager on: (02) 9472 8555 leer@cookiecorp.com.au www.mrsfieldsfranchise.com.au or Follow Mrs. Fields Cookies on: Instagram @mrsfieldsau Facebook www.facebook.com/ MrsFieldsAustralia

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sna ps h ot: El l a Bac h é

Shining a spotlight on This issue, Business Franchise Australia and New Zealand shines the spotlight on Ella Baché, Australia’s Largest Premium Salon Network with 170 salons and growing. BFANZ sat down with Ella Baché Springfield and Emporium to talk about their experience in setting up a business and being part of a large franchise network.

CASE STUDY ONE: ELLA BACHÉ SPRINGFIELD May 2016 saw Ella Baché Springfield open in the Orion Springfield Central shopping centre. The luxurious new salon brings Ella Baché to Springfield with its full range of products and iconic beauty treatments. Ella Baché welcomes Jenny Gibson, Springfield’s owner, who shares her experience with Ella Baché and the beauty industry.

Q1: Jenny, tell us about your background. I’ve worked on various project roles with fund managers and hedge funds in Sydney and London.. When I returned to Brisbane I was looking for a career change. Although I don’t have a background in the beauty industry, I always enjoyed providing high level customer service and building relationships in my previous positions, which will contribute to the success of the Springfield salon.

Q2: What attracted you to the beauty industry and Ella Baché? I’ve loved the beauty industry as a consumer and felt passionate about bringing a great salon experience to Springfield. There are so many reasons to choose the Ella Baché brand! The brand has a rich history, prestige and the products are aspirational and attainable. It’s still a family owned company that is caring, compassionate and actively works to produce products tailored to the Australian climate. Ella Baché’s standards are high for treatments and for products, ensuring that customers receive consistently high service standards is a value I am committed to.

means that I am supported and can draw on knowledge and experience from the experts and operate competitively in the market.

Q4: What are you most passionate about in business? My passion is knowing my customer and that the customer always receives the best treatments and service. We are a local business and will only succeed by listening to my customers and evolving to deliver what my customers want - to exceptional standards!

Q5: Why do you think Springfield will love Ella Baché? Springfield and its surrounding suburbs are a thriving community that have embraced the Ella Baché brand and philosophy that everyone’s skin is unique and that skin solutions should be tailored to the individual. My vision is to grow the salon as part of the Springfield community, providing employment opportunities and support for local initiatives.

Q3: Why did you choose a franchise?

CASE STUDY TWO: ELLA BACHÉ EMPORIUM MELBOURNE

I’ve always wanted to own my own business, but the thought of starting something from scratch was a little daunting. Franchising

Ella Baché Emporium Melbourne opened in June 2016 within the Emporium Melbourne CBD shopping centre.

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Ella Baché welcomed salon owner Janice Liu, who has a wealth of franchising experience. Janice recently shared her experience as an Ella Baché franchisee with Business Franchise magazine. New to the beauty industry, Janice cites “great brand awareness” and “a good franchisee support system” as the best aspects of being an Ella Baché franchisee. “Ella Baché is an established brand that has proven itself to be the leading beauty franchise in Australia,” says Janice. As the beauty industry experiences fast paced growth, Janice is excited to learn and become the “go–to” destination for beauty treatments. Focused on the customer experience, Janice believes that “business success is derived from building a loyal client base.” Janice advises investors looking to start their own business or purchase a franchise to research and enter an industry that they are passionate about. “Decide what to do and be prepared to take whatever action is required to achieve success.” Find out if there is an opportunity for you to become an Ella Baché franchisee by contacting: franchise@ellabache.com.au www.ellabachefranchise.com.au

TO THE 2017

FRANCHISING & BUSINESS OPPORTUNITIES EXPO’S

The Inventors of Windscreen Repair International Brand with Strong Global Presence

FOR BUSINESS FRANCHISE READERS! Franchising & Business Opportunities Expo’S 2017: Sydney: 25-26 March

International Convention Centre, Darling Harbour

Locally Owned & Operated Franchises Australia-wide

Perth: 7 May

Crown Perth, Burswood

Brisbane: 22-23 July

Brisbane Convention & Exhibition Centre, South Bank

Melbourne: 26-27 August

Melbourne Exhibition Centre, South Wharf

Industry Leading Marketing & Technical Systems

Don’t pay at the door, entry is free for readers by entering the code BFM when purchasing tickets online.

“Grab your ticket now, it’s really time to stop dreaming and start doing!” For more information go to

www.franchisingexpo.com.au

13 22 34

novusautoglass.com.au Business Franchise Australia and New Zealand 65

e x pert a dvi c e

Whatâ&#x20AC;&#x2122;s hot and whatâ&#x20AC;&#x2122;s not in franchising 2017

Franchising is a dynamic and changing industry. There are opportunities for new franchise systems in a variety of growth industries. Existing franchise systems cannot be complacent and must work to develop and reposition themselves in the market to meet consumer demand and stay ahead of their competitors. Establishing a franchise system takes incredible commitment, resources and money.

Whatâ&#x20AC;&#x2122;s not hot 1. Rolling out a franchise system without proper planning and development. 2. Offering franchise systems without a detailed operating manual. 3. Offering a franchise opportunity without complete transparancy and disclosure. There is a tendency for new franchisors to try to get into the market too quickly before they are ready and compliant. This is usually driven

66 Business Franchise Australia and New Zealand

by enquiries from prospective franchisees and a desire to lock them in before they walk away and/or take up another opportunity. Knowing what to do and implementing the things that need to be done to establish a franchise system, are two different things. Getting the foundations in place will ensure a successful rollout of the system, limit exposure to risk to the Franchisor, and ensure longevity of the system. Seeking the right specialist advice will be the foundation of establishing

“As a lawyer who advises many franchisees, I start from the basic premise that if the franchise opportunity does not work financially for the franchisee, they should walk away.” Robert Toth | Partner | Marsh & Maher Lawyers

Getting the financial model right in advance for both franchisor and his franchisees is critical. As a lawyer who advises many franchisees, I start from the basic premise that if the franchise opportunity does not work financially for the franchisee, they should walk away. All of the other benefits of the system are meaningless, whether it is the branding, marketing, lifestyle opportunity,… if financially it does not work and the franchisee cannot draw a reasonable salary for their effort and obtain a return on their investment.

So where do you find the specialist consultants? The Franchise Council of Australia, which is the peak body representing the franchise sector in Australia, represents franchisees, franchisors and service providers and they are an excellent resource and point of contact.

What is hot in franchising in 2017 There are a number of industries that are experiencing growth in the franchise sector. Sue Campbell from the consulting firm ‘Franchise Right’, highlights the following sectors as areas to look out for:

a successful franchise model. A specialist franchise lawyer and franchise consultant will be able to lay the foundation to ensure compliance and establishment of your operating systems which will minimise legal and commercial risk. Franchising is a regulated industry and many other industries have their own independent regulation and requirements, for example building companies, real estate franchises, financial services and rental companies all have an overlay of their own regulation.

• Aged Care - Based on our aging population over 65, which will substantially increase, this sector will provide long term business growth and sustainability; • Health Services - Particularly in areas such as physiotherapy, podiatry, skin and dermatology. This sector also includes cosmetic and body services, which is following the European trend including weight loss, cosmetic injectables, and other body treatments; • Pet Services & Personal Homecare Services - This includes veterinary, grooming, daycare, boarding, and other pet services based on the

increasing pet ownership in Australia; • Food & Retail - Smart new operators continue to bring innovation in food concepts by also controlling the supply chain. Establishing a franchise system is one thing, however getting it out into the market and commercialising it is different challenge. Social media is now a must. Catherine Kimpton, director of ‘Beyond Business Sales’, who acts for a number of successful franchisor systems, states that engaging a business broker who has a wide and varied client base, and comprehensive portfolio businesses, can add real value to promotion of a franchise system including identifying potential sites and prequalification of potential franchisees. Catherine’s firm has been appointed to act for ‘Tommy Guns’, which is a unique and new concept in male grooming and barber shop. They offer a unique turnkey experience and currently have 12 stores across Australia with more locations rolling out. Catherine also sees growth in the areas of childcare and early learning centres, which will continue to experience growth over the next few years. There are exciting times ahead and it appears another year of exceptional activity in the Franchising sector. The best advice is to get the right advice – to do it once and do it right. Robert Toth is a Partner of Marsh & Maher Lawyers, with over 30 years of experience in franchise law. He is an Accredited Business Law Specialist with expertise in franchising, licensing and distribution and franchise dispute resolution (acting for both international franchisors and franchisees). 03 9604 9400 rxt@marshmaher.com.au www.marshmaher.com.au

Business Franchise Australia and New Zealand 67

pr o file : B eg in B r i g h t

brighten your future Looking for a business opportunity with high rewards both personally and financially? Do you have a real passion for working with and helping people?

Did you know that the tutoring market in Australia is worth $6 billion a year and continues to grow? Build the business you always dreamed of by partnering with a young, innovative and rapidly growing franchise system. An award-winning primary tutoring franchise committed to educating our next generation. A franchise with a highly experienced management team, encouraging the growth of individual franchisees and the entire network.

Maybe you’ve dreamed of running a business and are yet to find that perfect opportunity!

Begin Bright was established in 2008 and began franchising in 2011. The network has grown to 30 centres in five years.

For you, work is more than just a day job – you’re driven to see the positive effects of your hard work.

And it doesn’t end there – with plans to double outlet numbers in 2017.

You’ve always wanted to make a difference for the future generation, especially within the area of children’s education.

With an element of flair, Begin Bright ensures children leave the centres feeling happy, smart and confident, all while franchisees feel rewarded and teachers feel valued.

Giving back to the community is what makes you, you.

Work life balance? Tick.

But as an experienced businessperson you know it is just as important that any venture is profitable too.

Geared toward great income potential? Tick.

Sensible working hours? Tick. Opportunities to own multiple centres? Tick.

And you’d be backed by an experienced, household name in the industry. Begin Bright franchisees benefit from founder Tina Tower’s 12 years of experience in running tutoring centres. Similarly Begin Bright benefits from the expertise and experience of their parent company, Cognition Education Group, a leading global provider of education consultancy services, school management, professional development, media and publishing. Cognition Education Group is at the forefront of global education innovation and impact. You’d have access to exceptional marketing that’s not only effective but affordable too. As a franchisee you benefit from a substantial marketing commitment nationally, as well as tried and tested plans to implement at a local level. Local area marketing is supported by our in-house marketing team who are there to assist you with the delivery of quality and affordable local campaigns. All of Begin Bright’s systems are located on an online portal, making it easy for owners to access the information they need at anytime and anywhere. And if that’s not enough, franchisees are also provided with: • consistent and supportive training, including quarterly state conferences , • a dedicated field support manager to ensure that franchisees are supported and can excel in their business, • a centralised online booking system, making life easy for you and your customers. Begin Bright is committed to making a difference and making sure franchisees succeed. So go on, kick-start your future by learning more about becoming a Begin Bright franchisee. 1300 234 462 franchise@beginbright.com.au www.beginbright.com.au

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Make 2017 your year! FIND YOUR BUSINESS SUCCESS BY ENRICHING THE LIVES OF CHILDREN. Begin Bright is an award winning school readiness and primary tutoring franchise.Our DLP LV WR RσHU PRUH VWXGHQWV WKH RSSRUWXQLW\ WR learn at Begin Bright through school readiness, primary tutoring and holiday programs to enable stakeholders a successful lifestyle, have fun and make a positive impact. ;V ÄUK V\[ TVYL HIV\[ V\Y L_JP[PUN UL^ MYHUJOPZL VWWVY[\UP[PLZ H[ )LNPU )YPNO[

franchise@beginbright.com.au www.beginbright.com.au

e x pert a dv i c e

Worried about your cash flow?

Cash Flow Management Education helping businesses succeed and grow Small businesses in Australia play a significant role in the economic health of the nation. There are three million small businesses in Australia, producing over $330 billion of our nation’s total economic input and employing 4.5 million people. In 2016/17 it is projected that the franchise industry in Australia will continue to grow and contribute $178 billion to the nation’s economy (IBISWorld). Similar to franchises, the types of small businesses are diverse, covering all industries and operating across metropolitan, regional and rural communities. They contribute a range of goods and services to local and international consumers. Small businesses, their accountants, and business advisors indicate that issues with cash flow are a major challenge when running a business, leading to financial problems that impact on business viability. Statistics show that only 60 per cent of small businesses are still trading after four years, 90 per cent of small businesses fail due to cash flow (Kate Carnell, Small Business & Family Enterprise Ombudsman). The key reasons for business failure and insolvency include inadequate cash flow or high cash use. Most starting out in business don’t know what

“Small businesses, their accountants, and business advisors indicate that issues with cash flow are a major challenge when running a business.” Karen Anstis | Assistant Commissioner, ATO Small Business engagement and support

they don’t know. Research shows that despite 79 per cent of new small business owners saying they think about their business tax requirements before or as soon as they start operating, 28 per cent say they don’t actually seek advice from anyone. A further 41 per cent seek advice only from informal sources such as family and friends. The primary source of advice when starting a business is an accountant (25 per cent) and 13 per cent look to business and industry associations. Evidence shows that businesses which seek advice about how to manage their cash flow effectively are more likely to succeed. Owning a business can help you achieve your financial goals, and for many people a franchise can be a great way to go. However, despite the large amount of information on cash flow management already available in the market-place, it is recognised that cash flow remains a significant issue for small businesses. There is a lot of information freely available on how to manage cash flow, nevertheless, the challenge is helping time-poor business owners understand the issues and how to take action to improve their situation.

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To support small businesses in having the best chance of success, the Cash Flow Management Education Program was developed for use by new and existing businesses. The ATO engaged PwC Indigenous Consulting to co-design with industry, small business, advisors and government to develop a simple suite of products on cash flow management based on a conversation between an accountant or an advisor and their client to identify and take action to improve cash flow. For the past five months the ATO has undertaken a pilot consulting with a range of partners across the country including accountants, bookkeepers, business advisors and the franchise sector to familiarise them with the program. The program contains practical tools to help small businesses analyse their cash flow and identify areas where they can take action. For example, improve their pricing or management of debtors. We recognise the value that the Franchise Council of Australia and franchisors add to the training and support of franchise owners. We are excited by the opportunity to work

John Birse is a member of the ATO’s BAS Agent Association Group representing the franchise sector and is also involved with Jim’s Group having started the Jim’s Bookkeeping division. John advised “the franchise sector has systems and training in place for new business owners and I am looking to introduce the Cash Flow Management Education program into the Jim’s group, potentially piloting the program with Jim’s Cleaning division.”

with them to help develop the necessary cash flow management skills and knowledge vital to the success of franchise owners. Everyone learns differently so the Cash Flow Management Education Program has been created to be simple and flexible to meet the needs of individual small businesses.

The Cash Flow Management Education program is based on the four fundamental cash flow success factors – profit, provisioning, liquidity, and meeting goals. Based on ATO user testing and research, we look at the six different knowledge topics a small business owner should understand in order to effectively manage their cash flow.

The effectiveness of the Cash Flow Management Education program is being evaluated in a pilot with advisors, and small businesses. Feedback has been very positive.

These are: • Planning your business • Budgeting and record keeping • Funding your business • Managing your cash flow • Planning your regular commitments, and

The suite of products supports discussions between accountants and small business owners, to understand and positively influence the cash flow position of their business. The products are adaptable for all types of businesses and at all stages of the business lifecycle.

• Tracking your performance.

Whilst every business is different, every business shares the common need to manage cash flow effectively in order to survive and grow.

For example, the Cash Flow Canvas is a tool that provides a simple cash flow picture for businesses to understand and make informed decisions about their ‘Cash In’ and ‘Cash Out’. The Canvas is designed to visualise responses to the four fundamental cash flow success factors.

No matter what industry your franchise is in, what stage of business it is at or what your goals are, you can get help to succeed by addressing the cash flow fundamentals.

Whether you want to learn one new thing about cash flow, or be able to make more informed decisions, you can use a range of tools in the Cash Flow Management Education Program to help drive success in your business.

During the pilot phase small businesses

have been using the Cash Flow Canvas up on their wall and find the Review/Forecast/ Plan & Track options very useful. Using the Change Lever Cards, small business owners can explore a range of options to help make changes to address issues and make improvements in their cash flow and create an action plan.

Accountants have recognised that the program is different to current offerings in the marketplace. It is well designed for small business and supported by industry. We are currently in pilot and further implementation is proposed. Karen Anstis works in Small Business Engagement and Support, focusing on ensuring that small businesses are offered tailored and integrated services that are easily accessible, at the time and in a manner that suits them best. The ATO is the principal revenue collection agency of the Australian government. We aim to be a leading tax and superannuation administration, known for our contemporary service, expertise and integrity.

Business Franchise Australia and New Zealand 71

PR OFI L E : OV EN U

be the FRANCHISE for you? The world’s largest franchised network of oven cleaners was founded by Rik Hellewell in the UK in 1994, and introduced to Australia in 2004 by Bernard and Janet Bannon. Since then the service has expanded across Australia, and their son Daniel has joined the family business.

van on the road, as have many of the Ovenu franchisees.

“Every home has an oven, and everyone hates cleaning them,” says Bernard. “Once a client has had their oven professionally cleaned, it is very unlikely that they will ever attempt the job themselves again.”

GREAT OPPORTUNITIES

INNOVATION Technicians safely and professionally remove all grease, fat and tough burnt on carbon deposits from ovens, ranges, BBQs, microwaves, cooktops and hoods, using non-caustic and eco-friendly biodegradable solutions. Recommended by the Vitreous Enamel Association (which almost all ovens are made of), the Ovenu system can return any oven to showroom condition. As a mobile business, there are no rents or staff to pay. There are no targets to meet, fees are fixed and the franchisees run their own diaries and decide the hours they work.

QUALITY TIME Purchasing his franchise in 2010, Dan Uchytil has renewed his initial five year franchise agreement for a further five years, and expanded his business with an additional

He says, “The thing I like about it is last weekend I had a father son camping trip planned, I just took Friday and Monday out of my diary and went and did that with my sons. If you want to work Saturdays, if you have school fees coming in, you just crank it up and work harder if you want. The thing that surprises you is the people are so happy when you’re done, they are so thrilled that their oven is almost like new again. “If you are interested, then the best thing you can do is go out with one of the guys and see how well we do it, and how fast we do it, and see the client’s reaction for yourself.”

Once you’re ready to launch your business, a tailored marketing campaign is provided to get you up and running, at a pace that suits you. Ongoing support, optimised website, marketing materials and Client Management Software are all available to ensure you’re up and running within your exclusive territory from day one. If you’re looking for a franchise with fixed fees, low overheads, huge growth potential and the elusive work/life balance, then look no further than Ovenu. For more information contact Bernard Bannon now on: 1300 683 682 www.ovenufranchise.com.au

With 34 vehicles on the road, covering Perth, Brisbane and Melbourne the focus has turned to Sydney and Adelaide. There are opportunities available in all States, but Sydney really should be the biggest market, and is virtually untapped. According to the Australian Bureau of Statistics, there are more than 1.7 million homes in Sydney and every householder is a potential client. Working within your local community, an Ovenu franchise generates a high percentage of repeat business and very high profits. The low initial fee includes everything you need to start your business, after the purchase of your white van - taking advantage of a fleet discount with Volkswagen if the VW Caddy appeals to you. Training includes two weeks on-the-road with a Training Manager, while your vehicle receives its eye-catching livery. Along with the Heated Process Tank and ‘Tools-of-the-trade’, exclusive Ovenu consumables are provided to see you through the first three months of trading.

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daniel bannon and The Ovenu service will be featured on Channel 10’s Healthy Homes programme on Saturday March 25th, 2017

WE CLEAN OVENS SO CLIENTS DONʼT HAVE TO A Flexible Profitable Business High Turnover with very low overheads No Rents, No Staff You set your own work / life balance

WE OFFER OUR FRANCHISEES ✓ Generous, exclusive territories for single or multi van operation. ✓ Full training and ongoing support. ✓ Proven systems… Our service will bring an oven back to showroom condition. Purchasing their franchise in 2008, Richard and Melissa Ramsey have renewed their initial five year franchise agreement for a further five years, as have many of the Ovenu franchisees. The franchise is a family business for Richard and Melissa. Melissa does the administration work while Richard focuses on the hands-on side of the business. Sharing the duties involved allows the couple to run a successful business together. According to Richard and Melissa, one of the great benefits of running the Ovenu franchise business is the flexibility they have. “We take holidays when we want, or take a day off to attend our children’s special events at school,” says Richard. “I can be very flexible around the times that our customers request and I get to spend quality time with my wife and two children.”

✓ Using Safe non caustic bio degradable solutions. ✓ Low Start up cost. If you want to be your own Boss, and create the work/life balance and rewards that you and your family deserve...call us now. 1300 OVENU 2 (that’s 1300 683 682) enquiries@ovenu.com.au www.ovenufranchise.com.au

sna ps h ot: Sna p- on Too ls

Snap-on Gala Evening Celebrates

Franchise Success Snap-on Tools Australia and New Zealand’s annual gala dinner recognised the huge success achieved by Snapon franchisees throughout 2016, with an increasing number of franchisees joining the million dollar club, demonstrating the Snapon franchise potential to those wanting to pursue a new career path to financial freedom. The red carpet, black tie gala and awards dinner was held at the Hyatt Regency in Sydney as part of the Annual Franchisee Conference, a once a year opportunity for the Snap-on network to come together, celebrate success, share business strategies and learn more about the extensive Snap-on range and product programmes. “Not only does the Snap-on Gala evening acknowledge strong franchise performance, but with an expanding number of high performing franchisees, it is a clear showcase of the strength of the Snap-on business model,” said Stacey Gilbert, Snap-on National Franchise Manager. Using a unique scoring system that measures all aspects of the franchisee’s business, Michael Phillips from the A.C.T was recognised as the Snap-on National

Snap-on National Franchisee of the Year - from Left...Paul Lynch - National Sales Manager, Michael Phillips - Franchisee, Ajit Ponnambalam - Managing Director.

Franchisee of the Year. Michael, who has been in the business for over 15 years, won an antique gold MG725 Impact Wrench for his business performance.

(NSW) for his expertise in the field, while Michael Carew (QLD) was awarded the Master of Metal for his achievements in tool storage.

“It’s awesome and unexpected and certainly the largest award I’ve ever received. I feel proud that Snap-on has recognised my efforts and I want to thank them for their on-going support. It’s great to be part of the Snap-on family,” said Phillips.

The Snap-on regional winners were Roger Wolf – NZ, Michael Carew – QLD, Don Nicholl – SA/NT, Michael Holmes – VIC/ TAS, Michael Phillips – NSW and Chris Edwards – WA, all receiving a gold wrench for their efforts.

Proving that success can be achieved quickly under Snap-on’s unique franchise program, Rhys Cavanagh (NSW) joined the million dollar club and also received the New Franchisee of the Year award, adding a gold Snap-on wrench to his own collection of tools for his impressive results over 2016. For the first time, it was a father and son team that took out the Number 1 Business Unit Award, with Norm and Justin Child (QLD) sharing their success together on the evening. In a world where vehicles increase in technological complexity, the Master of Diagnostics award was given to Tim Tredrea

74 Business Franchise Australia and New Zealand

After the awards ceremony and formal proceedings, the Snap-on network were treated to music from rock legend Mark Seymour and a memorable evening was enjoyed by all. To find out how easy it is to share in the growth and success of Snap-on by becoming a Snap-on Franchisee, take the online discovery tour at: http://snapontools.com.au/franchise/ discovery_tour or email sota.franchise@snapon.com

BUILD YOUR FUTURE WITH A RETAIL ICON

As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 65 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry. Our business development and support teams will assist you in building your successful business. We have a number of new franchise models available and are looking for motivated and business orientated people to join our network. Clark Rubber Retail Stores start from $420,000 plus working capital.

Our industry knowledge will help you build a strong business, becoming a retail destination store for all things pools, foam and rubber. Our franchisees benefit from: • • • • • • • •

clarkrubber.com.au

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ten top TIPS

FOR FRANCHISEES Franchising continues to be a buoyant sector of the economy. One of the main attractions of franchising for new entrants to the small business community is that there is usually less risk associated with buying a franchise in an established franchise system that has achieved substantial brand recognition as opposed to establishing a totally new business. However, as with setting up any new business, many issues must be considered prior to making the decision and signing any agreements to buy a franchised business. The following are 10 tips that a prospective franchisee should consider before buying a franchised business.

Choose the Correct Business Structure

There are a number of different business structures which a franchisee can adopt. A decision as to the business structure to be adopted by the franchisee needs to be made early on. Some of the reasons for adopting the correct structure right from the outset include, minimising personal risk, protecting personal assets and making the purchase and the subsequent sale of the franchised business more tax effective. A prospective franchisee should bear in mind that each type of structure attracts different set up costs, compliance costs, tax rates and personal risk. The franchisor may also impose restrictions on the structure that can be adopted. Therefore and to make sure an informed decision is made as to the most viable structure,

76 Business Franchise Australia and New Zealand

prospective franchisees should discuss their proposed structure with the franchisor and also seek both legal and accounting/tax advice.

Conduct a Due Diligence Investigation

All prospective franchisees should do their homework before investing in a franchised business. Such research should include obtaining information about: – the particular franchise system in question and the franchisor’s reputation in the market place; – the expansion plans of the franchisor; – the relationship between the franchisor and its franchisees - this can easily be ascertained by talking to other franchisees;

“Other franchisees can be an invaluable source of information about the franchisor, its business and its system.”

Amongst the suite of documents a prospective franchisee may be asked to sign there could be the following additional documents: – a confidentiality agreement. This is usually required to be signed before the franchisee can receive any information about the franchise system and/or any of the franchise documents;

Raynia Theodore | Principal, Corporate Advisory & Franchising Team MST Lawyers

– any current or threatened legal proceedings against the franchisor; – the total amount the franchisee will need to invest in setting up the franchised business; and – if the prospective franchisee is considering purchasing an existing franchised business, then historical trading information and financial reports of the franchised business should be sought from the vendor. A lot of this information will be available in the franchisor’s disclosure document.

Examine the Location

If the franchised business operates from a fixed location, there needs to be additional due diligence performed in respect of the location. Careful consideration needs to be given to the particular area where the franchised business will be based, the demand for the goods and/ or services offered by the franchised business within that area and any direct and indirect competition to the franchised business in that area both immediate and in the future. Where the franchisor has selected the location, the prospective franchisee should request from the franchisor copies of its site selection policy and details of any demographic or site analysis performed in respect of the particular location. Even if the franchisor has entered into the lease of the location with the landlord, a prospective franchisee should seek legal advice in relation to the lease as the franchisee will no doubt, under the terms of the franchise agreement or licence agreement with the franchisor, be bound to comply with the lease.

Take Notes in Preliminary Meetings with Franchisor

A prospective franchisee should take comprehensive notes in each meeting or discussion with the franchisor or its representatives both prior to and post entering into a franchise agreement. Any representations or promises made by the franchisor before the prospective franchisee enters into the franchise agreement should be reflected in the franchise agreement.

This may become crucial in the event of a dispute with the franchisor in the future. If a promise, representation or concession has not been recorded in writing it will be difficult to later prove.

Speak to Other Franchisees

Other franchisees can be an invaluable source of information about the franchisor, its business and its system. Prospective franchisees should endeavour to make contact with as many former and current franchisees as possible. Their details should be in the franchisor’s disclosure document. The inquiries that should be made should include inquiries in relation to: – how the actual set up costs compared to any estimates provided by the franchisor; – whether any estimates or projections provided in any financial information or profit and loss statements provided by the franchisor proved to be accurate; – the level of support offered by the franchisor especially to franchisees that are located outside the state from which the franchisor’s head office operates; – whether the franchisor is accessible, organised, responsive to queries as well as suggestions; – what is the relationship between franchisees within the franchise system; and – where a franchisee has left the system the reasons for the franchisee leaving the system.

Review the Disclosure Document

Pursuant to the Franchising Code of Conduct (‘the Code’), the franchisor must, at least 14 days before the franchise agreement is signed or before accepting non-refundable money, provide to every prospective franchisee the following: – a disclosure document in the form prescribed by the Code; – a copy of the Code; and – the franchise agreement in the form it is to be signed by the franchisee.

– where the franchised business operates from a fixed location which is leased by the franchisor, the franchisee may be asked to sign either a licence agreement or a sublease (pursuant to which the franchisee is granted a right to occupy the location; – where the franchised business operates from a fixed location which is to be leased by the franchisee, the franchisee will need to sign a lease in respect of the location; – where a prospective franchisee is buying an existing franchised business from another franchisee, there will be a contract of sale of business. All the above mentioned documents must also be carefully read and understood by the prospective franchisee and professional (legal and accounting) advice should be sought.

Review the Franchise Agreement

The franchise agreement is the most important document in the suite of documents as it will govern the legal relationship between the franchisor and the prospective franchisee for the duration of the term of the franchise. A prospective franchisee should read the franchise agreement in order to become familiar with and understand its terms. Legal advice should be sought especially in respect of areas that the prospective franchisee does not understand. There is no substitute for a prospective franchisee reading the franchise agreement. A franchise agreement is usually a long term agreement that does not allow much scope for a prospective franchisee to later withdraw from the franchise agreement. The clauses within the franchise agreement that should be given a more careful consideration include: – franchisee obligations; – franchisor obligations; – the territory (if any) granted under the franchise agreement, specifically whether it is exclusive or non-exclusive; – the duration of the franchise agreement including the initial term and any renewal term. The conditions of renewal are also

Business Franchise Australia and New Zealand 77

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“A prospective franchisee should take comprehensive notes in each meeting or discussion with the franchisor or its representatives both prior to and post entering into a franchise agreement.”

important - these conditions may include a requirement to make a further payment, upgrade the location and sign a new franchise agreement on the franchisor’s then current terms, which may be different to the terms of the original franchise agreement signed by the prospective franchisee; – the fees payable; – any minimum performance criteria; – the circumstances in which each party can terminate the franchise agreement; – restraints post expiry or termination of the franchise agreement; and – the ability to resell the franchised business and the conditions associated with such sale, including the granting of a ‘first option to buy’ to the franchisor and the payment of a transfer fee upon any sale. The purchaser franchisee may also be asked to enter into a new franchise agreement on the franchisor’s then current terms, which again differ from the terms of the original franchise agreement that was signed. If the financial terms have changed (e.g. royalties and other payments have increased) this may serve to reduce the value of the franchised business being sold. In most cases, the terms within the franchise agreement will not be negotiable. Prospective franchisees should take some comfort from this as it ensures the same treatment of all franchisees within a franchise system.

Cooling Off Right

One important matter that is often overlooked is that once a franchise agreement has been signed or money has been paid pursuant to a franchise agreement, a prospective franchisee has a ‘seven-day cooling-off period’. This means that the prospective franchisee has seven days within which he/she can change his/her mind about the purchase of the franchise and withdraw from the franchise agreement. However, this cooling off right does not apply to a renewal, extension or transfer of a franchise agreement. If the prospective franchisee exercises its cooling off right then pursuant to the Code the franchisor must refund all money paid under the franchise agreement, less a reasonable amount for costs incurred by the franchisor. A prospective franchisee should before signing a franchise agreement ascertain the amount that will be retained. This should also be set out in the Disclosure Document.

Consider Employment Issues

A prospective franchisee should give careful consideration to all potential employment issues which may arise when entering into a franchise arrangement. This includes, but is not limited to, statutory entitlements, terms and conditions of employment, applicable industrial instruments, termination of employment, equal opportunity and occupational health and safety obligations. These issues should be discussed in detail with a legal advisor prior to signing any franchise agreement.

78 Business Franchise Australia and New Zealand

It is critical that a prospective franchisee is aware of the employment issues that will affect it (whether the franchisee is employing new employees or former employees of a vendor). There is a myriad of pieces of legislation, each imposing different obligations on the parties.

Consider the Costs

Amongst the types of costs a prospective franchisee can expect to pay are the following: – the franchisor’s legal and/or administrative costs associated with the drawing of the franchise documents; – if there is a lease of the location, and subject to retail legislation providing otherwise, the Landlord’s legal costs associated with the lease documents; and – the franchisee’s own legal and accounting costs associated with obtaining advice in respect of the franchise and lease documents. MST Lawyers has over 25 years’ experience in franchising, representing clients throughout Australia and internationally in a variety of industries. Written by Raynia Theodore, Principal, in the Corporate Advisory and Franchising Team at MST Lawyers, please contact the Corporate Advisory and Franchising Team for assistance or further information. +61 3 8540 0242 +61 3 8540 0202 www.mst.com.au

Business Franchise Australia & New Zealand is part of the global network of CGB Publishing

With over 30 years’ experience in providing high quality business information, with a particularly strong focus on franchising, our global presence allows opportunity for international franchise marketing solutions. T H E

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