auSTRalia & NEW ZEalaNd
franchisor B u S i N E S S
VOL 07 ISSUE 02, 2019
MaRSh & MahER
RiChMONd BENNiSON:
MORE THAN JUST LEGAL ADVICE
aCCREdiTaTiON:
TAKING YOUR FRANCHISE NETWORK TO THE NEXT LEVEL
ThE EffiCiENT OuTSOuRCER THE CHANGING FACE OF AUSTRALIAN
fRaNChiSE RECRuiTMENT
Business Franchise Australia and New Zealand 29
NEWSitems
Entries are now open for the Franchise Marketing Awards 2019! Could you be a winner?
1 July deadline for Single Touch Payroll
The Franchise Marketing Awards (FMAs), some of the industry’s most highly coveted accolades, are now open for international entries.
Regardless of whether you’re a franchisee or a franchisor, if you have 19 or fewer employees you are required to implement Single Touch Payroll (STP) by 1 July 2019.
Franchisors can enter the awards in one or more of the following categories:
The Australian Taxation Office (ATO) requires greater visibility into employer payrolls to ensure that they pay their PAYG withholding amounts and meet SGC superannuation obligations. The benefit to employers is also significant, saving time at the end of the financial year because they will no longer need to issue group certificates to employees.
• Best Print Advert
Some franchises have already taken up the STP challenge, with the likes of Retail Zoo (Boost Juice, Salsas Fresh Mex) and Soul Origin already rolling out their STP setup.
• Best Overall Marketing Campaign
So, what does it mean for those who haven’t started the process yet? For franchisors Here are three hot tips on how franchisors can prepare for successful STP implementation: 1. Educate, educate, educate your franchisees all about STP 2. Direct them to reach out to their bookkeeper, advisor or accountant for help 3. Ensure they have STP-ready accounting software. Part of the education process is understanding what it all means and how it will impact your franchise. Your franchisees will need to review all their employee payroll information. You should also advise them to speak with their employees about the change and why they should set up a myGov account. For many employers and payroll officers, getting a business STP-compliant means that they’ll need to be up to speed with system updates, and learn how to use them for STP. Their advisor can guide them through with ease if they don’t have internal resources to do so. The FCA’s advice is: Don’t let your franchise run into trouble with the ATO because your processes or your franchisees’ processes aren’t up to scratch. Get in touch with your advisor and begin discussing your STP requirements and payroll systems today. For an in-depth look at Single Touch Payroll, head to page 76 for an expert advice article by John Shepherd of the ATO.
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• Best Website
• Best PR Campaign • Best Online Marketing Campaign • Best Franchisee Marketing Support
The awards acknowledge and celebrate innovative and effective marketing campaigns and tools provided to franchisees. They evaluate the design, execution and results of marketing programs from numerous franchise brands and pick out the best in the business. With prospective franchisees increasingly prioritising marketing success, brand strength and dedicated franchisee support systems, brands need to stand out from their competitors to be worthy of investment. In this highly competitive market, entering the FMAs gives franchisors the chance to be formally recognised for their achievements. It gives their brand an edge over a rival investment opportunity and boosts their chances of recruitment success. Previous winners include Snap-on Tools, easyGym, The Creation Station, McDonald’s, ChipsAway and many more. Neil Apter, marketing manager at Expense Reduction Analysts (ERA), which won Best Overall Marketing Campaign 2018, commented on the benefits of entering the FMAs: ‘The award further confirmed to prospective franchisees that when it comes to delivering high quality, usable marketing collateral that delivers clients, we’re leading the way in the franchise industry.’ The FMAs, sponsored by Business Franchise magazine, are open to all franchisors who operate an ethical franchise and can demonstrate marketing excellence. The awards are judged by an independent panel of industry experts. The judges look for entries that display innovative practices and effective marketing support offered by franchisors to their franchisees. The deadline for entries is Friday 5 July 2019 at 5pm. Download the entry criteria and entry form today and start preparing your winning entries! https://www.franchiseinfo.co.uk/franchise-marketing-awards
Music proves increasingly crucial in the future of marketing
Rise of personal smartphones in the service industry highlights the need for Bring Your Own Device (BYOD) policies
A new study reveals that more than half of casual employees say their current role prevents them from maximizing their full potential at work. The research from WorkJam, a leading digital workplace platform, found that 61 per cent of frustrated employees cited scheduling and communication pain points as reasons for leaving. The study also found that the workers had little resistance to the idea of implementing a Bring Your Own Device (BYOD) policy at work. Younger Australians place more value on music as a key element of marketing than older generations, according to research from audio branding specialist PHMG. In the study, which surveyed 1000 Australian consumers, 75 per cent of 18 to 24-year-olds and 62 per cent of those under 45 say that music helps them feel more connected to a brand, compared to just 41 per cent of those aged 55 and over. Daniel Lafferty, Director of Music and Voice at PHMG, said: ‘As the expectations of audiences shift, it’s important that organisations don’t get left behind. Millennials place greater importance on music in marketing, so businesses should be planning now to cater for future success with the consumers of today and tomorrow. We live in an increasingly multimedia world where audio is fast becoming the modus operandi, from Alexa and Siri to voice-driven car infotainment, so how a brand sounds is just as important as how it looks.’ ‘It’s clear from the research that marketing departments need to think how they can integrate audio into the marketing mix,’ added Lafferty. ‘Younger consumers engage better with brands that carefully consider audio, and make assumptions about the professionalism and reliability of the brand according to the sounds they hear. ‘If businesses want to ensure they attract and retain the Millennial and Generation Z markets, they need to focus on the audio just as much as the visuals in their campaigns.’
The study polled over 1000 US-based hourly employees and employers across the retail, hospitality, logistics, healthcare, and banking industries to determine sentiment around BYOD policies. Results showed that 57 per cent of millennials would prefer to use their personal mobile devices to access information such as schedules and training materials. WorkJam also found that more than two thirds (69 per cent) of employees believe that with the right mobile app, they’d have an easier time picking up shifts that accommodate their schedules. According to Steven Kramer, president and CEO of WorkJam, these findings should call attention to the impact that implementing a BYOD workplace policy can have when it comes to building a more engaged and productive workforce. ‘It’s never been more imperative that employers put the power of communication and scheduling into employees’ hands,’ Kramer said. A digital workplace platform can help employers to boost employee productivity, increase transparency throughout the company, and improve the employee experience by harnessing the power of their personal devices. For example, getting in touch with a manager is only a few taps away, and important training materials can be accessed whether the employee is at home or work. This gives employees greater control over their work-life balance, boosting morale and lowering instances of turnover.
PHMG is the world’s largest audio branding agency with more than 32,000 clients in 39 countries worldwide.
Organisations that make this investment now can get ahead of the competition while enhancing culture and creating opportunities for increased efficiency. ‘It’s no longer a question of whether organisations should adopt a digital workplace policy,’ Kramer said. ‘It’s about when they should make the change.’
https://www.phmg.com/
https://www.workjam.com/
Business Franchisor 31
COVER STORY: Marsh & Maher Richmond Bennison
Marsh & Maher Richmond Bennison: more than just legal advice
Franchise law has always been a particular passion of mine, and I still get excited when a new business opportunity comes along.”
Robert also had visions of playing professional football (soccer), which he played at the State League level, and of being a rock star, as he played guitar and wrote songs with his brother Tom. But a stable profession was needed, the Toth family having migrated from Hungary in 1958
Robert Toth, partner at Marsh & Maher Richmond Bennison (MMRB), is a franchising legal specialist and an accredited business law specialist with a wealth of expertise.
with nothing.
It’s been quite a journey for Robert over the past four decades – from working in criminal law and visiting clients in Pentridge prison, to a general practice in St Kilda for several years and then establishing his own firm, Toth & Co, in Elsternwick in 1987.
fixed-fee practices.
Early days – Ted’s Training Before and during his legal studies, Robert worked with his brother Ted in the iconic Ted’s Cameras stores. Yes, Ted is his brother, and this is where Robert learnt about business, marketing and branding. The hands-on retail experience at Ted’s over many years stood Robert in good stead when he established his own practice, and also when it came to advising business clients.
32 Business Franchisor
Transparency and flexibility for clients Once Robert began practising law, with his retail background he quickly realised that clients didn’t like the hourly rates and billing methods of lawyers, and he was one of the first to bring in He also established a practice early on that he continues today – the practice of giving clients fee estimates based on the scope of work. ‘I felt this way we could be more transparent with our clients,’ Robert says. ‘Our clients could also budget properly for their costs, so they didn’t get that surprise bill at the end.’ Clients are updated during the course of their file, with interim bills, flexible fee structures and payment options. ‘It’s all about transparency,’ says Robert, ‘so we can get on with the work and our clients can focus on their business. ‘We look to supporting our clients over the long term and through the good and the tough times.’
A growing practice Toth & Co grew, as Robert says, ‘to a point where it was too big to be small’. While acting for Philip Murphy Wine & Spirits in a huge case involving the Australian Liquor Group Ltd and Coles Myer, Robert decided to merge his practice in 2003 with another iconic Melbourne firm, Wisewould’s. Robert headed up their corporate and commercial practice and brought across his franchise practice, and Wisewould’s became well known as a franchise practice. As Robert says, ‘I had to do something, otherwise I would have been a headline in the Herald Sun: “Lawyer found dead of stress at his desk”!’ After 12 years as a partner with Wisewould’s, Robert joined MMRB in late 2014 as a partner, again bringing across his established franchise practice and industry reputation to the firm.
A passion for franchising Throughout his practice, Robert has maintained a keen interest in business and franchising and advised many clients in the sector, understanding the issues that arise for franchisors and franchisees. As Robert says, ‘Franchise law has always been a particular passion of mine, and I still get excited when a new business opportunity comes along, and then seeing that business roll out to the market.’
Robert works for overseas franchisors and companies entering the Australian market, and is a local agent and resident director of a number of overseas companies. He also assists Australian companies to expand overseas via his international connections and membership of the International Franchise Lawyers Association (IFLA), a worldwide network of franchise and licensing lawyers.
Giving back to the community
We have a strong network of allied consultants who can assist and support our clients to establish their business model, from financial modelling and feasibility to marketing branding and systems support.” A specialist legal team The MMRB Franchise Licensing and Retail Group is a dynamic group of lawyers with expertise in intellectual property, consumer and employment
Giving back is a key value of Robert’s practice, having acted pro bono for 17 years for the Bonnie Babes Foundation, and been a director of the Elwood Community Bank for over 15 years, under franchise with the Adelaide and Bendigo Bank.
law.
More recently, Robert joined the board of a notfor-profit (NFP) assisting disadvantaged youth, and is a director of Greater Good International, a company that supports Aid Hub International. Aid Hub is a worldwide NFP that supports NGOs around the world to deliver on the United Nations sustainable development goals, which, as Robert says, will hopefully ensure that there continues to be a liveable planet for our grandchildren to enjoy in the future!
branding and systems support,’ says Robert. ‘Our
‘We also have a strong network of allied consultants who can assist and support our clients to establish their business model, from financial modelling and feasibility to marketing clients can therefore come to us as one-stop shop to get their model established.’ The firm is also a member and strong supporter of the Franchise Council of Australia (FCA) and the US Commercial Service. Robert’s unique experience in business and retail means he not only knows the law, but he can offer business and market knowledge.
‘We know what’s going on in the world of franchising,’ Robert says. ‘This is knowledge and experience your local lawyer around the corner may not have.’ ‘Recently a client looking to develop their business in the childcare sector came to me, and when I told them that I actually have equity in the freehold of childcare centres with my brothers, he said, “Wow – I didn’t think I would find a lawyer who was actually involved in the sector”.’ Being in business not only as a lawyer really does bring added skills and know-how to the advice Robert can bring to establishing or setting up a business enterprise.
Franchising industry experience Robert has worked for over 35 years assisting franchisors, franchisees and master franchisees,
Business Franchisor 33
for some clients and founders, franchising is just not the right model, and we talk about these matters openly at the first sessions.”
and is regularly involved in mediation under the Franchising Code and also in general commercial disputes. He is a great advocate of being direct and trying to resolve disputes without litigation. ‘Picking up the phone and talking to the opposing lawyer up front often cuts through the issues,’ says Robert. ‘It helps us understand how close or far apart the parties really are, and if there are any other agendas going on.’ Robert has also written numerous articles based on his expertise, such as ‘Why can’t I sue my franchisor?’, ‘Help get me outta here’ and ‘Do class actions work in franchising?’, which are regularly published online and in journals.
ThE modErn franchisE markET Robert has seen the Australian franchising landscape change significantly since the 1980s. ‘Back then, there was little sophistication; no Franchising Code of Conduct as we know it today, and little by way of consumer law protection,’ he explains. ‘People bought into a franchise, and it either worked or it didn’t. If it didn’t work, the franchisor generally disappeared, or simply carried on regardless with very little accountability.’
Robert states: ‘It is more of a horizontal relationship, rather than the traditional vertical relationship where the franchisor has total control over the franchisee. ‘The Laser Clinic’s franchise model is good example of how branchising can work well. I am not saying it is suitable to all, and this is where our expertise can assist clients, along with their advisors and consultants. ‘The branchise model also addresses current financial issues in the sector following the banking royal commission. Banks have tightened lending policies and indicated they will not lend to franchisees where the only security is the equity in their home.
‘These days we are seeing more of a partnership developing between franchisors and franchisees,’ Robert says. ‘We are looking to new and relevant business models for the modern market, including innovative models such as branchising.’
‘Branchising means the franchisor contributes to
‘We discuss whether franchising is the right model for expansion. For some clients and founders it is just not the right model and we talk about these matters openly at the first sessions.’
franchisor.’
The term ‘branchising’ describes a system in which a franchisor and franchisee enter into a partnership or shareholding arrangement, with the franchisor taking equity – usually the majority equity stake in the franchise – with the franchisee.
34 Business Franchisor
the set-up costs of the franchise making it more affordable. The franchisor has a vested interest to ensure that the business is successful, and the franchisee feels more readily supported by the
ThE franchisE indusTry Today Robert has seen the franchise sector change over the past 40 years into a much more controlled environment, with the Code review in 2014 and now the parliamentary inquiry into franchising in 2019, although the recommendations are yet to be introduced.
‘We are living in a different world of risk and reward for franchisors and franchisees,’ Robert says. ‘The multitude of regulators, such as the ACCC, Australian Securities and Investment Commission (ASIC) and the Fair Work Ombudsman, all have greater funding and powers to ensure compliance by franchisors and business alike. So getting the right expert advice from specialist lawyers is even more important for all in the sector. ‘The retail sector has also undergone huge change over this period. With restricted lending by banks, funding franchisees into the business is more of a challenge. Franchisors need to make entry more accessible and affordable, and also ensure the model works for their franchisees to avoid disputes arising.’
a TrusTEd advisEr Robert and the Franchise Licensing and Retail Group at MMRB look to establishing long and supportive relationships with their clients. They provide more than just legal advice, with their experience and specialised expertise in all aspects of business, retail and franchising. For more information, contact Marsh & Maher Richmond Bennison at: 03 9604 9400 (east Melbourne) 03 9580 8311 (Mentone) enquiries@mmrb.com.au www.mmrb.com.au
Business Franchise Australia and New Zealand 35
expert advice: Corina Vucic
The efficient outsourcer Outsourcing professional services is a great way to keep a franchise head office streamlined – on budget, if staffing overheads are proving challenging; flexible to adjust to changing business conditions; and on track of critical projects.
36 Business Franchisor
While outsourcing everything in an office is not possible, and potentially not always advisable depending on the needs of clients, staff and franchisees, there are key benefits to be gained by bringing in external experts in areas such as finance, marketing, information technology or administration far beyond the practical and financial.
going to be up-to-date with the latest trends,
Outside ideas can inject fresh thinking and new ways of doing things into your business. For example, an expert social media consultant is
Before engaging a third-party provider, it’s
data and platforms. Freelancers, consultants and third-party businesses can bring a fresh approach and recommendations, while freeing up time for your employees to work on other projects within their expertise and job descriptions. important to set clear goals in what you are hoping they will achieve for your business. Are
corina vucic is the Director of Fc Business Solutions. With over 20 years in the franchise industry, and extensive operational and management experience, she works closely with leaders to take their business to the next level. Whatever their goals, corina coaches, mentors and supports business owners and executives to maximise success and minimise risk for long-term business prosperity and security.
before engaging a third-party provider, it’s important to set clear goals in what you are hoping they will achieve for your business.”
you merely seeking them to undertake a task and depart – for example, writing fresh website copy? Alternatively, are you seeking them to run something on a day-to-day basis, such as bookkeeping services, to free up administration time from your team so they can focus on other tasks? Perhaps you are working on a critical project and want the business to build something, such as a website, software or strategy. From there, do you want the third party to run this new website or implement the strategy, or to hand it back to your employees for ongoing, day-to-day management? Depending on your goals with the process, you will need to ensure that this is made clear to the third-party business and steps are taken within that process to ensure that you are getting what you need for the short, medium and longer term. Let’s take the example of building a website. You may want a new website with specific capabilities, new content and original design. However, once the site is created, you ideally want your central employees to be the ones updating and maintaining it. As part of working with a third party, you need to be assured that the website, once completed, can be regularly and quickly updated by your own staff –any training or resources should be provided, and support mechanisms put in place to ensure that the site can be customised as needed. Without these assurances, you may be left with a website that is unworkable unless you continue to engage the designers, which may be more expensive and time-consuming than you had initially budgeted. Alternatively, in the case of a bookkeeper, this may be ongoing work that is outsourced. You are not expecting the bookkeeper to teach your staff how to order receipts and account for payments; you are paying for the bookkeeper to handle this task on your behalf, so their processes, templates, equipment or software may be of little concern to you. You anticipate it to be an ongoing
relationship and you are paying for their time and expertise over the longer term. It’s vital to know the difference between these types of outsourcing so you can set clear goals, guidelines and processes. In addition to core goals that are expressly communicated by way of contract or agreements with third-party providers, it’s important to continually assess the relationship to ensure that value is still being provided. Regularly check any briefs or arrangements to ensure that it is still what you require, and adjust if necessary. By setting clear goals and monitoring the
practicalities of the arrangement on an ongoing basis, you can help ensure that outsourcing is handled efficiently, effectively and adds value to your business. To discuss how corina’s expertise can help take your business to new heights, contact: 03 9533 0028 cv@fcbs.com.au https://www.fcbs.com.au
Business Franchisor 37
expert advice: James Scurr
Accreditation: Taking your franchise network to the next level
Despite the ever-changing challenges faced by franchisors in the Australian market, there are two consistent barriers to overcome: finding quality franchisees and equipping them with finance. Accreditation is a tool that can help franchisors to overcome both. Accreditation programs by lenders are an important part of the finance offerings available to the franchise network. Despite the number
38 Business Franchisor
of lenders operating within this space, access to finance can still be a major barrier for new prospects and can dampen the potential growth rate of franchise networks. Gaining accreditation with a range of bank and non-bank lenders is something that franchisors can do to help incoming and existing partners overcome this barrier. Accreditation ultimately establishes a framework to support long-term growth. Accreditation programs take into consideration how strong a franchise network is as a whole, and then, based on this assessment, provide preapproved funding up to a certain amount for both new and existing franchise partners. Although this can be a somewhat time-consuming process for the franchisor, it is an important step for any growing network and can become the
cornerstone of their franchise finance strategy. Prior to the rise in popularity of alternative lenders, bank accreditations were a staple of the franchise industry. However, Australia’s lending landscape has seen a tumultuous time through the banking royal commission, and as a result the industry has seen a diversification of lenders and finance offerings. Now most banks and alternative lenders offer some form of accreditation program to support the franchise industry, resulting in a wider range of choices. Accreditation is not a one-size-fits-all solution, and franchisors should seek accreditation with more than one lender to ensure that their franchisees have a range of options to suit their needs.
While bank accreditation is often the first choice, stricter requirements mean that this is out of reach for some franchise networks. Bank accreditation programs are often limited to franchise networks of at least 50 units, and place restrictions on the amount of the purchase price they will lend, capping it at 50 per cent. Unfortunately, this makes it an unrealistic option for franchises that are still in the growth phase or operating a smaller network. In addition to this, many traditional lenders have shied away from funding small business, franchises included, preferring to lend in traditionally less risky markets. Despite difficulties with more traditional lenders, many franchise networks have found success in opting to explore accreditation with an alternative provider. Non-traditional lenders have seen heavy adoption rates in both the consumer and commercial space, as their more flexible offerings allow for unique funding solutions to fit their customers’ needs. Their willingness to take on a higher risk makes them accessible to small business owners, who are seeking the ability to borrow smaller amounts on more flexible terms. Non-traditional lenders have also seen praise for their high levels of transparency – something that has become highly valued by consumers as mistrust of traditional lenders grows. While some franchisors may see accreditation as a tool that only helps incoming franchise partners, this is certainly not the case. Existing franchisees face new expenses throughout the life of their business, and the ability to access quick and easy funding through accreditation allows them to commit to refurbishments, equipment upgrades and expansions without putting their capital at risk. Providing franchise partners with simple access to finance forms a platform to drive internal growth, giving existing franchisees the tools they need to take advantage of new opportunities, without the deterrent of lengthy applications and approval times. Putting in place an accreditation program can also encourage adoption of franchisor initiatives such as new equipment rollouts, new store designs and rebranding activities, as finance is pre-approved. Holding an accreditation with one or more lenders also acts as a key selling point throughout the recruitment process. Accreditation adds to the credibility of a franchise brand and reflects the success of the network overall. Having the
James Scurr has extensive franchising and small business experience, spending almost a decade as a successful multi-unit franchisee for companies including Boost Juice, Dreamy Donuts and other independently owned businesses. He is an internationally recognised Certified Franchise Executive (CFE) and a FRANdata Registered Franchise Lending Specialist. James founded Cashflow It in 2014 which now operates as Franchise Finance Australia.
Accreditation adds to the credibility of a franchise brand and reflects the success of the network overall. Having the backing of one or multiple lenders is a drawcard that may attract prospects to your network over others.” backing of one or multiple lenders is a drawcard that may attract prospects to your network over others. Often prospective franchise partners are well aware of the challenges they face in entering a network, and gaining the funding required to get their business up and running is one of the most daunting. The appeal of a streamlined recruitment and on-boarding process – without the stress of seeking finance – can aid in recruitment success and subsequently fuel network growth. Ultimately, accreditation is a tool that is beneficial to both franchisors and franchisees. Being able to offer existing franchisees pre-approved funding is important when encouraging growth, and accreditation with multiple lenders gives each franchise partner the opportunity to seek a solution that fits their business’s unique needs. When recruiting new franchisees, putting
accreditation in place ensures that quality prospects are never lost due to an inability to access the funds they need to start their business. Take your franchise network to the next level through accreditation. Franchise Finance Australia is a specialist funder to the franchise sector, with unrivalled knowledge of franchisees’ funding requirements as well as direct relationships with the franchise networks operating in Australia. Founded in 2014 by directors with a background in franchising, FFA has remained committed to offering flexible funding solutions that allow franchisees to start a new business or improve their existing business. www.franchisefinanceaustralia.com.au
Business Franchisor 39
pROfilE: ShifT8
REVOluTiONiSiNg pOS fOR fRaNChiSES
feedback from our customers forms over half of our new features roadmap.” amy renae, general manager, shift8
ShiFT8 iS a leaDeR in PoinT oF Sale ManaGeMenT anD RePoRTinG SYSTeMS, DeveloPeD WiTh The SPeciFic PuRPoSe oF DeliveRinG FRanchiSe-cenTRic TechnoloGY ThaT SeRveS The neeDS oF ManaGinG MulTi-SiTe anD FRanchiSe neTWoRkS. arE you gETTing ThE laTEsT in TEchnology from your providEr? Shift8 combines the S8pos point of sale (POS) system with the latest in technology trends and franchise know-how. This allows for customisable loyalty and order-ahead apps, enabling you to reward your customers your way. Unify your brand with easy-to-configure intelligent digital signage (S8DV) that dynamically recognises day, date, time, temperature and duration. With playlists centrally controlled from the cloud, you can monitor what is playing across all of your locations right now, as well as create new playlists and schedule future promotions. You can dramatically reduce the cost of
40 Business Franchisor
traditional signage by deploying S8DV to your franchise network. Ongoing development, upgrades and new features are all included. Your brand will always have the latest enhancements, as Shift8 frequently releases new features for all customers.
livE daTa and up-To-daTE rEporTing & analyTics The POS platform allows Shift8 to instantly capture live data from the stores. Our suite of 700+ reports gives you access to live data, anywhere, anytime. With an unlimited number of users, you set the role and permission levels. Franchisees and area managers always on the go? S8mini is the mobile dashboard app that gives store owners and head office staff the ability to check on their stores while they are out and about. Shift8’s cloud-based reporting system enables you to schedule which reports you require and when, sending them straight to your inbox. ‘Not only do our franchisees love it, and use it constantly throughout the day to monitor their business, but it’s the technology that sets Just Cuts’ franchise system apart from the other
brands out there when it comes to franchisees selecting a franchise system to invest in,’ says Amber Manning, CEO of Just Cuts.
has shifTing your pos sysTEms always sEEmEd challEnging? Making the ‘Shift’ with Shift8 is a wellplanned and organised process. With years of experience in dealing with the most complex of implementations, the Shift8 team has a unique skill set that makes it easy. All conversions are handled by an experienced team consisting of project managers, trainers and support staff, who will ensure that everything runs to plan and on time, from the lead up to when your systems go live. The rollout is scheduled to match your brand’s needs. Whether you choose to transition groups of stores at a time, or your entire brand in one day, Shift8 is primed to handle these situations with ease. You’ll be wishing you’d made the shift sooner. For more information contact Shift8 at: 02 9571 4126 info@shift8.com www.Shift8.com
POINT OF SALE
HEAD OFFICE DASHBOARD
DIGITAL SIGNAGE
MOBILE DASHBOARD
REPORTING CONSOLE
ONGOING DEVELOPMENT
ORDERING APPS
LOYALTY PROGRAMS
02 9571 4126
info@shift8.com
expert advice: James Young
42 Business Franchisor
the chanGinG face of aUstralian
franchise recrUitment
James young has over 15 years’ experience in the franchise industry. he has recruited franchisees for over 40 major franchise networks in Australia and internationally. James also assists franchisor clients in recruiting experienced operational and head office personnel. he is a licensed business broker who assists franchisors with exit strategies and negotiations and franchisees looking to sell their franchise business.
ThErE hAS nEvEr bEEn A MOrE InTErESTInG TIME TO FInD, SElECT AnD rECruIT QuAlITy FrAnChISEES. AlThOuGh ThE FrAnChISInG InDuSTry hAS SEEn A nuMbEr OF SETbACkS, IT’S AlSO SEEn A WEAlTh OF GrOWTh AnD POSITIvE ChAnGES. WhIlE ThE nEGATIvE STOrIES MAy bE TArnIShInG CErTAIn brAnDS, ThE InDuSTry AS A WhOlE IS STrOnGEr FOr IT. We currently have a perfect storm of bad industry press, difficulty accessing funding, and increased competition, with more franchises than ever before fighting for a reduced pool of talent. There are over 1200 active franchise systems in Australia, with many more ‘franchises’ that have not yet granted their first franchise – all out there competing for franchise partners. Successful networks grow stronger. Simply put, you attract the franchisees you deserve.
Franchise networks are finding it increasingly harder to attract suitable candidates, as there are currently fewer quality candidates considering the franchise market. Potential franchisees are more educated and cautious when it comes to buying a business. As we are seeing in the real estate world, it is a buyers market at present, and thus franchisees come with more demands and higher expectations. Franchisees expect to be a priority, and they expect their money and their effort to provide a strong return on investment. So how do you separate yourself from the pack and ensure that you are worthy of quality franchisees? How do you position yourself at the top of the pool and show that your business is ‘buyable’, i.e. profitable, proven and successful? If you are new to franchising and currently launching your franchise offer, you need to make sure that you have invested in the right systems and structures, as well as partnering with the very best franchise consultants and lawyers. This is to ensure that your franchise offer will withstand the tests of competition; franchisees with a critical eye; funding difficulties; legal
reviews; accountants testing the financial offer; and, not to mention the toughest hurdle of all, the ‘pub test’ – friends and family who have all heard a horror story with the word franchising attached to it. The first challenge for all franchisors is linked to finding ways to attract a potential franchisee. How do you generate a lead and then how do you continue to increase the standard of the leads your system is receiving? The quick answer is that you need to invest in all of the touchpoints through which your franchise customer will come into contact with you. Do you look successful? Do you look like you are worth investing seven years and potentially hundreds of thousands of dollars in? Your website (yes, you need a separate franchise website), franchise brochures, quality of messaging and franchise lead generation strategy need to look better and function more effectively than the competition’s in order to fight for the best franchisee lead. They need to instil trust and confidence in your brand, and your processes and systems to recruit franchisees will stand testimony to this.
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The key to a successful franchisee recruitment strategy is having everything you need to deliver in place. from financial details and legal documents to application forms, these should all be prepared before you start your franchise lead generation and recruitment journey.” have an even more attractive offer for potential franchise partners.
if you are new to franchising and currently launching your franchise offer, you need to make sure that you have invested in the right systems and structures, as well as partnering with the very best franchise consultants and lawyers.” If you were buying a car, you would base your decision on a number of factors including customer service, brand and price. Buying a franchise business is no different! Your offer needs to be competitive, you need to have a quality brand, and the process for purchasing the business should be hassle-free and inviting. Make sure that you have the necessary systems in place to ensure that every stage of the process is achievable. Be prepared and know what needs to be done. The key to a successful franchisee recruitment strategy is having everything you need to deliver in place. From financial details and legal documents to application forms, these should all be prepared before you start your franchise lead generation and recruitment journey. You also need to invest in generating leads. Currently, our firm – which works with approximately 25 franchisors looking to grow across Australia and overseas – has an average investment per sale of approximately $4500. The industry average can be quoted at almost three times this amount. But these results are not just based on the look and feel of your franchise offer. What we do know is that you need to invest in marketing in order to generate leads and be able to take them through the recruitment process.
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The key to successfully growing your business is that behind the sizzle and sales pack there is real substance and proven and profitable success. You need to be able to prove this statement and back it up with factual data. Your training systems, your operations manuals, your franchisee support, your head office skills, industry knowledge and point of difference are valuable. These all make for saleable offer; they define your brand and make it a franchise opportunity worth investing in. Your recruitment and franchise sales process then becomes just as critical to a successful lead generation and sales result. Consider who is representing your franchise to the market and ensure that they have enough knowledge and skills to do so. Remember that your existing company store’s performance and profitability all become critical to whether the leads you generate will move through the steps to joining your network. The positive to launching a new franchise brand is that you can shape your network, invest in your first franchisee’s satisfaction and success, and use this to attract even more quality candidates. You can also continue to improve your company locations and tighten your systems, so that you
If you are an existing franchise, it is time to review and reflect on your support model and franchise systems, and invest in your franchisees’ success. After all, your current pool of franchisees will be advocates for your brand, and you want them to share positive stories in order to grow your franchise network. Potential franchisees – now more than ever – will be looking to your current system for insights into their future success. If there are skeletons in your cupboard, like many of the stories we have been hearing about from some of Australia’s bigger franchise systems, they will be exposed and it will send quality applicants running. The Franchising Code of Conduct has put systems in place to protect franchisees, and the ACCC is ensuring that all the regulations are met and that franchisors are adhering to industry standards and the law set out by the Code. Now is the time to invest and not to cut corners. Ensure that your franchise business is transparent and able to show its offer in a positive way. Put your best foot forward and ensure you have put everything prepared, thus setting your franchisees up for success. Never take your franchisees for granted and never forget that their success is your success. So go out there and get the franchisees you deserve! They are out there, and they are crying out for honest, quality franchises run by quality people. Good luck! Contact James on: 0404 078 782 james.young@dcstrategy.com www.dcstrategy.com
C A R D S H E L L & E N E R G Y V I VA
Shell card is the smarter way to fuel your business Viva Energy is committed to keeping you moving with Shell Card. Packed with benefits, it’s an easy way for small businesses and franchisees to streamline admin, manage paperwork, and access discounted prices on Shell’s quality fuels. Even better, if you’re a Head Office managing a franchise network, there may be greater savings per litre in store with a solution tailored just for you. Enjoy receipt free glove-boxes for your business, with Viva Energy and Shell Card. If you are a franchisor we can tailor an offer for your group, call Shakeeb on 03 8823 8497
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expert advice: Pamela Jabbour
The Importance of Uniforms for Franchisors
A brand is one of a company’s most powerful assets, and at a time when workplaces are changing at a phenomenal rate, and the competition has never been so fierce, the power of brand image has never been more important. The successful companies and brands that are making waves in their space are those with consistency across all elements of brand marketing, from store fit-outs to packaging and advertising material. A brand can signify quality and inspire confidence, and a company uniform is one of the first contact points that your customers have with your brand. First impressions count, and uniforms are a key part of selling your brand message and story, ensuring
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Pamela Jabbour is the founder and CEO of Total Image Group, which designs, sources and manufactures uniforms to some of Australia’s leading brands such as Dan Murphy’s and Fantastic Furniture. With offices in Sydney, Melbourne and China, Total Image dresses over 300,000 Australians per day in their work wardrobe.
your business and team really stand out from the crowd. As a franchisor, it is pivotal that your brand is protected and correctly represented by your franchisees. You head up a large community of business owners representing the brand, and the power or impact that brand has on the market. The clarity and consistency of your brand across all its locations – and the power of the brand message – is down to the support of each individual franchisee. If each franchisee
coordinates their own uniforms and doesn’t follow the brand requirements, they risk diluting the power of the brand and membership which they are technically paying to be a part of. When a brand develops a consistent look and feel across multiple locations, it builds confidence in that brand and lets customers know that they can expect the same experience, regardless of which location they have visited. A great example of a brand that successfully manages consistency and impact worldwide is
McDonald’s. McDonald’s has over 35,000 stores in 110 different countries, yet it doesn’t matter if you are in America, Japan or Australia – you are going to have a comparable experience wherever you are. It is arguably one of the most successful franchises of all time, and I can’t help but admire and respect the level of consistency that the McDonald’s brand has achieved globally. Their success is in the level of detail – from branding to food, to store fit-out, right down to the uniforms – which ensures a similar experience regardless of location. Uniforms can serve different purposes in different situations, but there are some common benefits. If you are debating whether or not to introduce a uniform for your business, or if you’re unsatisfied with the current uniform and looking to make a change, learning why team uniforms are so important may help you to decide.
Team uniforms promote your brand If your corporate clothing features your brand logo, or even your brand colours, you are building recognition every time someone sees an employee wearing it. It’s free advertising and it reinforces your brand plan and objectives in the work environment. Companies spend thousands of dollars each year on marketing, in-store branding, and trying to communicate what they are about. Uniforms are an economical dual service marketing function: they benefit and motivate your employees, as well as telling your brand story to all who come into contact with them.
Team uniforms promote equality Uniforms are a great equaliser. Your staff may occupy different levels in the chain of command, but when they’re all dressed in the same uniform there is a greater sense of team spirit. A uniform also provides a level of comfort and structure for employees and eliminates the pressure of what to wear to work – saving them from having to keep up appearances and spend an inordinate amount of personal money on clothing for work!
Team uniforms promote loyalty When your employees associate themselves with your brand, they are more likely to feel positively about it. When they wear your uniform or branded accessories in public, they become brand ambassadors. A company uniform defines what you are about as a business, and ensures
A brand can signify quality and inspire confidence, and a company uniform is one of the first contact points that your customers have with your brand.” that your team is on the same page. Team members will wake up each day and be reminded, as they get dressed, who they work for and what that represents. A good uniform can help employees to feel excited and motivated, creating a feeling of team spirit and a sense of belonging.
will ensure that your team all look, feel and act
Team uniforms BOOST performance and sales
and the direct impact on staff morale, sales and
We live in a society where the clothing you wear represents your values, beliefs and purpose, and helps others to identify with you. In business, effective branding can make you appear more approachable, professional and confident, and often make or break a sales opportunity.
countries – as a franchisor can be difficult, and
Winning business is tougher than ever before, and companies that take the time to ensure their staff uniform represents the best version of their brand, culture and purpose are more likely to get ahead in sales and performance and be market leaders in their field. If done correctly, a uniform
the part, and that your clients are confident, comfortable and proud to be associated with your brand. Today, more than ever, businesses are aware of the importance of a strong purpose and culture performance. Communicating that message across multiple locations – and even different a uniform is a key part of achieving consistency and confidence in brand messaging. A company uniform defines what you are about as a business, and ensures that your team is on the same page, regardless of the location in which they are based. Are your team members excited and motivated to put on their uniform every day? Does it resonate with what your business stands for? Find out more at www.totalimagegroup.com.au
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francHisinG & business opporTuniTies eXpo The Franchising & Business Opportunities Expo is an exciting event that brings together the best franchise and business systems with potential franchisees and investors. It is the only exhibition endorsed by the Franchise
naTional francHise insurance broKers NFIB meets the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses. Our service is fully automated, compliant and
marsH & maHer ricHmond bennison laWyers Marsh & Maher Richmond Bennison Franchising, Licensing and Distribution Group act for local and overseas companies entering the Australian market and have a network of experienced consultants to assist clients with demographic, feasibility, market research and preparation of business entry plans to ensure the best success for our clients. Marsh & Maher Lawyers provide fi xed fee services to franchise clients for most aspects of work.
sHifT8 Shift8 is a leader in point of sale management and reporting systems, formed with the specific purpose of meeting the needs of managing multi-site and franchise networks. Both emerging and established franchisors are among the over 50 quick service food, restaurant and café brands that have a comprehensive solution in Shift8’s cloudbased management suite. Detailed business analytics and powerful reporting capabilities are invaluable for all their customers, to be able to have a point of insight at the point of sale.
ViVa enerGy ausTralia Viva Energy is the sole licensee of Shell products in Australia. Our fuel management card, Shell Card, is packed with benefits, and is an easy way for small businesses and franchisees to streamline admin, manage paperwork, and access discounted prices* on Shell’s quality fuels. Viva Energy can tailor a Shell Card offer for your franchise group. Enjoy receipt free glove-boxes for
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Council of Australia and has been delivering great results since 1987. The show runs annually in Sydney (March), Brisbane (June) and Melbourne (August). For further information please contact Fiona Stacey on tel 03 9999 5464, email fiona@specialisedevents.com.au or visit our website www.franchisingexpo.com.au.
provides you with full documentation. Put simply, NFIB is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business. For more information call 1800 776 747, email info@mynfib.com.au or visit www.mynfib.com.au.
• Commercial and Corporate Law • Corporate Reconstruction and Insolvency • Discrimination, Employment Law and Industrial Relations • Media Law • Litigation and Dispute Resolution • Trade Practices and Competition Law • Intellectual Property • Retail Licensing and Distribution. For more information contact us today: Ph: 03 9604 9400 | Email: robert@mmrb.com.au Website: www.mmrb.com.au/
Being 100% Australian owned, designed and developed, Shift8 is primed to meet their customers’ present and future needs, with the software suite constantly updated to ensure their position as a leader in the field. Their senior management has extensive programming, financial and operational experience gained in the Australian retail landscape, and over 50 years combined experience in franchising as both franchisors and store owners. This gives Shift8 a unique edge in software design and service. For more info call 02 95714126, email info@shift8.com or visit www.shift8.com
your Business. Shell Card is the smarter way to fuel your business! To learn more about how Shell Card can help your franchisees manage their fuel usage, visit: www. shell.com.au/business-customers/shell-fuel-card/ franchise.html Or, contact Shakeeb from Viva Energy on 03 8823 4897, to discuss a customised solution for your franchisees that will better fuel their success. *Discounts available vary.