Business Franchise Aus & NZ Nov/Dec 16 Feature

VOL 11 ISSUE 01 nov/dec 2016

health, beauty & fitness

AUSTRALIAN SKIN CLINICS

a franchise like no other

Healthy Body, Healthy Mind, Healthy Business.

Feel Good franchising

Business Franchise Australia and New Zealand 35

FRANCHISE OPPORTUNITIES

NOW AVAILABLE Australia’s leading

hair and beauty brand.

The future looks bright for Hairhouse Warehouse, with careful product curation, outstanding professional services and stylish, contemporary brand positioning ensuring it’s the go-to place for good hair, wherever you are in Australia.

“By joining Hairhouse Warehouse, you not only become part of a recognised brand, but you also have a huge amount of resources at your disposal in the form of training, systems and support.

”

- Michael Godbee, Tamworth Franchisee

What you get: A proven profitable turnkey operation Support with leasing, store design and setup Induction program and ongoing training A full retail marketing program A strong team culture Exclusive stock of the world’s leading hair and beauty brands

For more information about franchising with Hairhouse Warehouse contact Peter Fiasco on 0451 370 060 or email franchising@hairhousewarehouse.com.au

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Contents On the Cover Image: Australian Skin Clinics

46

40 Cover story: A Franchise Like No Other

Australian Skin Clinics

42 Feature: Feel Good Franchising: Health, Beauty & Fitness 46 Expert advice: Healthy Body, Healthy Mind, Healthy Business

Tania Allen, Vision Alliance

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36 Hairhouse Warehouse 38 What’s New! Feature news 50 Franchisor in Depth: Just Cuts™ 54 Have Your Say: Health Care – A Growing Sector

Lee McBriarty, Home Instead Senior Care

58 Profile: Core9 60 Expert Advice: Entering a Saturated Market

FC Business Solutions

62 Expert Advice: Franchising VS. Licensing – Which is Right for You?

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Ty Menzies, 9Round Australia

A regular of Business Franchise Magazine, our special supplement in franchising showcases a different industry each issue To share your specific expert industry advice or to feature your franchise in the next issue, please contact: Kathleen Lennox, Sales & Marketing Manager Phone: 03 9787 8077 Email: kathleen@cgbpublishing.com.au Business Franchise Australia and New Zealand 37

what’snew!

Hairhouse Warehouse: Exclusive Products, Exclusive Guests.

Soul Origin Partners with “The Nude Nutritionist” Lyndi Cohen Rapidly expanding healthy fast food brand Soul Origin has announced its partnership with well-known Australian dietitian and nutritionist Lyndi Cohen, AKA The Nude Nutritionist.

A regular nutrition consultant on Channel 9’s Today Extra and a non-believer in “diets”, Lyndi’s mantra of “everything in moderation”, eating mindfully, incorporating wholefoods and eating foods you enjoy is perfectly aligned with Soul Origin’s own food philosophy.

“As a dietitian, I don’t believe you have to miss out on the foods you love to be healthy. Eating well is about filling up on plenty of fresh, healthy food and eating mindfully,” says Lyndi.

“Soul Origin makes eating well convenient, easy and stress-free. I’m delighted to come on board as Ambassador and Nutritionist for Soul Origin - a fantastic Australian company that I feel really proud to be aligning with. Their commitment to serving up fresh, Australian produce makes the partnership between Soul Origin and The Nude Nutritionist a no-brainer for me.”

Soul Origin General manager Chris Mavris says he couldn’t be happier to welcome Lyndi into the Soul Origin family.

“We’re looking forward to starting our partnership with Lyndi with some very exciting new products we are launching soon. Soul Origin shares Lyndi’s belief in the health benefits of fresh, nutritious, simple food and know that she will be extremely valuable in helping us communicate this message to our customers.”

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The Hairhouse Warehouse House of Hair Annual Franchise Conference was held at the RACV Royal Pines Resort in Queensland, hosting world exclusive visitor– John Paul DeJoria, American billionaire and co-founder of Paul Mitchell Hair Products which are found within all 140+ Hairhouse Warehouse locations across Australia.

The four-day conference was attended by over 300 delegates with a key focus looking to the future and building on the brands strong fundamentals.

John Paul DeJoria travelled to Australia to exclusively share his story and passion with the Hairhouse Warehouse conference delegates.

DeJoria, often mentioned on Forbes rich lists, shared his rags-to-riches story, inspiring delegates to bring out their inner hero each and every day.

For two and a half hours DeJoria shared his trials and tribulations from being born to immigrant parents, to working as a janitor and living on just $2 per day.

The conference ended with the Annual Gala Dinner, where the best performing franchisees and staff-members were acknowledged for their contribution and commitment to the brand.

Hairhouse Warehouse is currently going through the most exponential growth period in the brands history, having acquired Ella Rouge Beauty which subsequently merged with Australian Skin Clinics in July 2016 to further expand its dominance on the hair and beauty industry.

“It’s a testament to the strength of our brand that each year we continue to grow, when many of our competitors are struggling.” said Peter Fiasco, National Franchise Development Manager for Hairhouse Warehouse. “It’s the strength of all franchisees working together to continue to prosper and we are blessed to have such a great dynamic group of franchisees.”

LEADING PRIVATE EQUITY FIRM BUYING BIG Following on from its acquisition of Goodlife Health Clubs, private equity firm Quadrant has recently acquired Fitness First, HYPOXI and 24/7 gym franchisor Jetts - making Quadrant the largest combined gym group in the country.

According to media reports, the deal was agreed with PWC Australia having advised Jetts and Ernst & Young and King & Wood Mallesons advising Quadrant.

Founded on the Gold Coast by Brendon Levenson and Mark Stocks in 2007, Jetts has 270 clubs across Australia, New Zealand and the Netherlands – and more than 200,000 members.

Shortly after launching Jetts, Levenson explained “what we have created is the ultimate exercise experience for today’s market – never closed, with easy, close to home access, no crowds, no contracts and memberships at half the rate of traditional operators.”

Research conducted by the group prior to the launch of its franchised-clubs model indicated that many members at other clubs simply did not have time to use pools, steam rooms and

the other services that members paid for oftern didn’t use. On top of that, Levenson saw that lengthy contracts and high pricing points created barriers to entry, limiting penetration rates and membership uptake in most metro and suburban markets across the country.

He explained “what we provide is the equipment that most people use on a regular basis, such as resistance machines, treadmills, bikes, cross trainers and free weights.

“The club atmosphere is fresh and in line with

market expectations, creating a truly enjoyable and valuable exercise experience.”

Quadrant had set up a holding company Fitness Lifestyle Group to purchase Goodlife and to make other acquisitions in the sector.

The private equity firm’s Executive Chairman Chris Hadley said he was expecting the $2 billion national gym sector to grow at 6 per cent a year for the next five years.

Jetts is currently embarking on an expansion of its European operations.

QUEENSLAND MULTI-UNIT OWNER TAKES OUT JUST CUTSTM TOP GONG A Queensland Franchise Owner has taken out the top gong at the Just CutsTM Franchise Awards held during the company’s Annual International Conference in Queenstown, New Zealand.

Yvonne Salisbury took out the award for Franchisee of the Year, as well as the Local Area Marketing Award. Yvonne is the proud Owner of four Just CutsTM salons; one in Bundaberg, one in Mackay and two in Rockhampton, all located in Queensland.

Yvonne was awarded for her outstanding operational performance, successful local area marketing initiatives and her ongoing commitment to the Just CutsTM brand and franchise system and took out the top spot ahead of over 90 other Just CutsTM franchisees.

Working closely with the Just CutsTM Academy head office Team, Yvonne regularly organises and implements her own local area marketing initiatives to actively engage the local community and has established a large and loyal Client database. Her salons

are also avid supporters of local sporting clubs, giving back to the communities that help them thrive. Yvonne is humbled by the acknowledgement, which she will be celebrating with all her salon Teams. “I feel so honoured to receive these awards and can’t wait to celebrate with all our amazing Team Members,” she says. “And I couldn’t have done it alone – I’m only here thanks to these fantastic Stylists and because of the ongoing support of the Just CutsTM Academy head office,” she added.

“Yvonne has been a standout amongst our network of Owners over the past 12 months.

Her commitment to and passion for the Just CutsTM way of being is contagious and she really is an embodiment of everything we stand for – quality, excellence and positivity.

Yvonne is also an active member of her local communities and regular contributor to charity, something we are very passionate about as a brand”, says Denis McFadden, CEO and founder of Just CutsTM.

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c ov er sto ry: Aust r a l i an Sk i n C l i n i c s

A FRANCHISE LIKE NO OTHER! Australian Skin Clinics was established in 1996 and commenced into a successful franchise business in 2011 thanks to the vision and leadership of Managing Director, Deb Farnworth-Wood.

It has grown rapidly into an award winning business that is passionate about making customers look and feel fantastic. The growing demand for Australian Skin Clinics services further proves the success of their business model and strategy.

With Deb at the helm driving the company with an unwavering passion, there is no surprise Australian Skin Clinics have firmly cemented their position as industry leaders.

As Australian Skin Clinics and Hairhouse Warehouse announced their joined forces in August, Business Franchise magazine were keen to catch up with Deb and find out about this exciting new development.

Thanks for catching up with us today. Can you tell us how many franchisees you currently have?

We currently have 32 franchisees from our original 26 clinics, but we are currently merging with the Ella Rouge Beauty franchise, which was acquired by HairHouse

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Warehouse. So, 24 more franchises will be converting to the Australian Skin Clinics model.

What type of person ‘fits’ your franchisee profile?

This has actually changed over time. During the past five years the industry has grown considerably, along with the competition.

We firmly believe our franchisees need to work on their business and be actively involved. They need to develop their teams, maintain brand culture, demonstrate strong people skills, monitor their KPIs and drive the business. We look for tenacious people with a desire to succeed and develop a strong business over a number of years.

Warehouse at all - in fact they only came up on our radar before Christmas 2015. We didn’t commence serious discussion until after that Christmas period. In truth, the due diligence process for the merger may have slowed us down somewhat. It sapped resources and key team members were tied up in extra projects, but despite all this we managed to stay on track.

What is the short/medium/long term plan for this partnership?

We have many synergies with Hairhouse Warehouse. We service the same demographic, we share a passion for beauty and we both focus on affordable, quality services. This partnership is about utilising our combined skills and knowledge to develop the biggest and best hair and beauty group in Australia. The merger is also about longevity and sustainability as we have ambitious plans for the future.

You previously announced an aggressive growth plan for 2015/2016, has that been realised and how?

Our five year growth has been phenomenal and we are currently experiencing a record number of enquires. According to my initial business plan, we would have had 18 clinics by the time we reached our fifth birthday this October. I’m thrilled to see we have more than surpassed this figure.

Any new products or services recently launched?

Yes, in December last year we started working on another merger with a niche skincare range. As this is now complete, we launched Balense, which is our new range of 15 highly active cosmeceuticals products this October. It’s incredible because at the start of negotiations, we envisaged our Balense range would launch into 26 clinics; it will now be launching into 53 clinics. Naturally, this meant our initial production run doubled, further increasing economies of scale.

Our new Balense skin care range will provide franchisees with a point of difference with our competitors and increase profit margins. It also guarantees we will not offer something available to discounted online shopping sites.

How are you different to your competition?

How does this affect existing Australian Skin Clinics and Ella Rouge Franchisees? What are the benefits that you foresee will be felt by the franchisees within the existing networks?

We are very much focused on being a medical model and this is reflected in everything we do. Our look, feel, presentation, standards and treatment protocols are all medical, yet we also try and incorporate a sense of fun and “can do” which really exemplifies the Australian approach to business.

The merger has brought significant value to the two brands. At the time of the merger both companies had 24 clinics, so we literally doubled in size overnight. This brought about incredible economies of scale, strengthened resources and increased buying power in all areas.

We are not about short-term client relationships; we are about longevity and sustainability. The children of our original client base in our first Ashmore clinic are now coming in to be treated for acne concerns. We look forward to treating generation after generation which is why our “here forever” culture sets us apart. It is important to the brand we retain our integrity, honesty and our high standards.

Australian Skin Clinics had been slow to break into the NSW shopping centres, so the acquisition of the 24 Ella Rouge clinics in prime Sydney locations was really the driver behind the merger.

Was a part of this growth plan the ‘joining forces’ with HHWH and how did it come to fruition?

We now have the opportunity to tap into the knowledge and skills of Hairhouse Warehouse, who are a more established franchise system. This provided the ability to form a shared services agreement where leasing, franchise recruitment and finance departments work for both businesses. This has strengthened our team and provided economies of scale which translated into a reduction in franchise fees.

The original plan did not include Hairhouse

We also incorporated the Ella Rouge

Where are locations or territories available?

We are receiving a record number of enquires for sites and availability every week.

We are targeting all major shopping centres and welcome enquires to our franchise recruitment office.

If you would like to learn more about joining this award-winning franchise visit: www.ozskin.com/franchise

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“According to my initial business plan, we would have had 18 clinics by the time we reached our fifth birthday this October. I’m thrilled to see we have more than surpassed this figure.”

management team into ours and they brought some hard-to-find skills, due to their longevity in the industry. Again with the economies of scale, we have been able to restructure our national office and this has poised Australian Skin Clinics for the next stage of growth.

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Health, Beauty & Fitness:

Feel Good franchising

Health, fitness and beauty franchises are attractive businesses that are guaranteed to make you feel good!

Whether you simply want to join these booming industries for the financial returns or you enjoy a healthy lifestyle and keeping fit, then look no further than franchising to provide you with a multitude of exciting business opportunities.

Franchising has proven to be a fantastic format for successful businesses across these growth areas. People are becoming more aware of the benefits of maintaining a healthy lifestyle, and have the desire to take better care of themselves than ever before.

The health, fitness and beauty industry covers an enormous choice of businesses, ranging from gyms to spas, to hairdressers and a wide range of beauty services including nails, hair removal, and male grooming.

The 2014-15 Australian Health Survey – the largest check up on the nation’s health ever undertaken - found that nearly two-thirds (63 per cent) of the population are now classified as overweight or obese.

Keeping in shape, being healthy and wellgroomed can make you feel vibrant and attractive, on the inside and out. Fit and healthy people radiate happiness, selfconfidence and vitality. Likewise, owning a customer-focused franchise that helps to promote a sense of wellbeing and happiness can be just as rewarding, not to mention lucrative!

Men are more likely to be overweight or obese (70 per cent) than women (56 per cent) while one quarter (25 per cent) of our children are overweight or obese.

Expanding waistlines The number of people who are overweight in Australia continues to rise according to the Australian Bureau of Statistics.

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With these staggering figures, it’s no wonder that fitness franchises have experienced rapid growth over recent times.

Improving your bottom line One such franchise, showcased within this feature is Core9. Founded by power duo Craig Arnold and Jason Dolan in 2013, Core9 was developed as a training framework with the foundations of

kickboxing training’s three-minute high intensity workout, resulting in the ‘lane based’ 31-minute program. Members can visit Core9 without a booking and know that there is a personal trainer on duty, and that they will finish their workout in 31 minutes.

Check out the figures

Many franchised gyms, in varying formats, have experienced similar success in recent years.

• about $1.7 billion on gyms and personal training;

In recent years, franchised gyms have experienced outstanding success as people become more and more aware of the importance staying active and looking after their physical wellbeing.

• about $292 million on dietary supplements; and

Added to the mix are 24 hour gyms – catered specifically for our busy lives, single sex gyms and more - and you have a sector of franchising that has boomed across the country and the world.

A report released by IBISWorld states Australian fitness industry revenue of $2.9 billion and estimated to reach, over the next five years, $3.4 billion. Australians are expected to spend:

• about $380 million on weight-loss services;

• about $121 million on surgery.

The Australian Fitness Industry Report 2012 (by Deloitte Access Economics for Fitness Australia) highlights some key statistics: • Among Australians, aerobics, fitness or gym workouts are now the second most

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“Fit and healthy people radiate happiness, self-confidence and vitality.”

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“These days, people are spending more money on beauty than ever before, and the industry is constantly growing and evolving.”

popular physical recreational activity after walking.

• Over four million Australians participate in fitness industry activities.

• Users are typically female (42 per cent) and younger (25-34 years).

• The biggest increase in users was from the 45-54 year age group.

• Looking forward, participation will continue to increase exponentially with total demand increasing to 7.15 million users by 2020.

Big business The beauty business is big business. These days, people are spending more money on beauty than ever before, and the industry is constantly growing and evolving.

Women have always loved to be pampered and preened, and now with ‘man-scaping’ rising in popularity it’s men too who like to be buffed and waxed – not just their cars!

Just about every aspect of the beauty industry is covered by franchising. From teeth whitening to cosmetics, hairdressing, manicures and pedicures, massages, waxing, tanning, and all the beauty products to keep you looking great, there’s a business opportunity out there for you.

Perhaps you have been a beauty therapist working out of a salon for many years; now may be the right time to build your own business based on a tried and tested successful formula offered by a franchise.

Australian Skin Clinics (ASC) was established in 1996 and commenced into a successful franchise business in 2011 thanks to the vision and leadership of Managing

Director, Deb Farnworth-Wood. It has grown rapidly into an award winning business that is passionate about making customers look and feel fantastic. The growing demand for ASC services further proves the success of their business model and strategy and with Deb at the helm driving the company with an unwavering passion, there is no surprise Australian Skin Clinics have firmly cemented their position as industry leaders.

ASC are currently undergoing the process of merging with the Ella Rouge Beauty franchise chain, after joining forces with Hairhouse Warehouse (HHWH) in August 2016. HHWH has huge plans for the next few years to expand with 20 new stores planned to be opened around the country.

Becoming a household name, the proven business model continues to evolve and generate strong returns for franchisees.

According to an IBISWorld report (Hairdressing, Beauty Salons Market Research Report) key success factors for operators in the industry include: • Having links with local health professionals. Beauty salons can benefit from client referrals from local doctors and dermatologists.

• Use of specialist equipment or facilities.

Having specialist equipment enables salons to provide value-added, higher-priced services.

satisfied clients, to ensure repeat visits and attract new customers through good wordof-mouth.

• Ability to control stock on hand.

Controlling stock levels, particularly haircare and beauty products, is important to maintain the liquidity and cashflow of the business.

• Superior financial management and debt management. Financial and business management skills are vital to ensure cashflow and the survival of the salon.

• Access to highly-skilled workforce. A salon depends on the skill of its hairdressers and/or beauticians. Maintaining and updating skills is important to stay abreast of new hair styles and beauty treatments.

• Marketing of differentiated services.

Salons can move away from price based only competition by offering quality, value-added and higher priced services.

Offering a fixed franchising fee, with flexible finance options and ongoing support, Just Cuts ™ have recently announced a kiosk option, with only 49 sites available Australiawide. This is in addition to their hairdressing network of outlets, that service over 90,000 clients each week.

An alternative approach

• Proximity to key markets. It is an advantage to be located in a high profile, preferably wealthy area with significant passing pedestrian traffic and easy parking.

Alternative health therapies are also becoming increasingly popular among people searching for alternatives to prescription medicine, which has resulted in an increase in the popularity and use of herbal remedies in recent years.

• Having a loyal customer base. It is important for a salon to build up a base of

Financial figures showed the sector, which includes Chinese medicine, acupuncture and

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According to the Australian Trade Commission; “The Australian natural (complementary) healthcare industry has domestic sales of over $1 billion per year.

Market research shows that the popularity of natural healthcare products is increasing with a growth rate of seven per cent year on year. Three-quarters of Australians, including 92 per cent of women aged 2024, take at least one dietary supplement and a quarter of the population visit complementary healthcare practitioners each year.

The Australian industry continues to grow to meet these requirements. Already attuned to alternative approaches to health, discerning baby boomers (Australia’s largest population group) increasingly demand greater choice and adopt a preventative healthcare approach to maintaining healthier lives. In Australia, the fastest growth areas are nutritional oils, men’s health and eye health.

Making the right choice The decision to purchase a franchise is no doubt a difficult one, and with so many successful offerings out there on the market, how do you decide which one is right for you?

Passion for the industry is an obvious must. Franchisors are looking for people who are passionate about what they will be committing a large part of their lives to. If you already love to spend time at the gym, enjoy exercising and living a healthy lifestyle, then that passion for the industry will be a great backbone for building a successful business.

“In recent years, franchised gyms have experienced outstanding success as people become more and more aware of the importance staying active and looking after their physical wellbeing.”

Becoming a franchisee could be a great step towards improving your lifestyle. Once you’ve done the hard yards in establishing the business it could give you more opportunity for flexibility to work around family life, or other commitments.

Is the price right?

Once you have made the decision about which industry is right for you, the next step is working out whether you can actually afford it!

You must then get with your franchise banker and put together a realistic sum of money you can afford to put into this new venture. This will most likely weed out some systems quite quickly – as the larger, more well-known fitness names come with a hefty price tag. They are strong, tried and tested and have proven success stories – but you must truly be able to afford to buy into them.

Once you have an amount in mind, you can begin to shop around. You will be able to narrow down your search, but don’t rush. If you get to your shortlist, it is time to direct all your attention to the franchise system and the franchisor.

Know your franchisor The franchisor holds the key. The management system, the operational procedures, the leasing agreements, the contracts, and the fees have been generated

by the franchisor. Check the franchisors background – is it solid? Meet with him or her. Do they seem to be a person of integrity?

Do they answer all of your questions openly and honestly? Do they invite you to do your own investigations into the company?

Are they eager for you to talk to existing franchisees?

If at any point you feel pushed, rushed, bullied or even ignored by the franchisor – it is time to consider walking away. Hopefully though, the franchisor will be professional, honest and open.

The next step is to meet with existing franchisees. While it’s fine to have all the manuals in place and have the franchisor tell you how great and successful the business may be, it’s the franchisees that have the real story. Visit them in their place of business, ask questions, and ask their employees if they enjoy working there.

The hard work begins!

Once you have made the decision to purchase your franchise then the hard work really begins, and that’s where your passion and drive to succeed will be vitally important.

So if being healthy, looking great or keeping fit is something that will get you out of bed every day, ready to work hard at growing your business then perhaps a franchise from one of these exciting growth areas is the one for you!

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other therapies to grow by around six per cent per annum over the next five years.

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e x per t a dv i c e

Healthy Body, Healthy Mind, Healthy Business. “Be sure you are thinking the right thoughts, and are taking the right actions in the right order at the right time so you create the results and outcomes you want.�

Tania Allen | Founder | Vision Alliance

Most small business owners I come across are working harder than ever before and not getting the results they want. They are time poor, experiencing slow or no real progress because there is just so much to do and many are in a state of stress, overload and overwhelm in general.

What I know to be true is we can always make more money but we can never get

back our health and our time. It is therefore critical that as we build our businesses, we design our business to serve and support us personally rather than the other way round.

by that is they prioritise building a healthy mind and a healthy body, which enables them to easily and effortlessly build a healthy business.

Sadly for many business owners, running a business comes with far too much sacrifice.

They are trapped spinning on a hamster wheel going around in circles, often times doing the same thing over and over, yet expecting a different result.

Before I continue, please allow me to share with you, very briefly, my story.

Since 1990 I have been building and growing 6, 7 and 8 figure businesses. Some my own, and some owned by my clients. I’ve had the absolute privilege to have spent time with and learn from business greats like Richard Branson and John Assaraf just to name a couple. One thing that stands out among all the high achievers in the world is they know how to put themselves first. What I mean

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I started in business at the age of 20 with my late husband Simon. The year was 1990.

We were married young and as Simon was an electrician we embarked on the journey of establishing, building and growing an electrical contracting business. Our formula for growth and success was fairly simple.

Attract the type of customer we wanted to serve, in other words our ideal customer.

Lead and build an amazing team, provide an excellent service and keep the customers coming back for more or send referrals our way.

Developing a healthy mindset is much easier than you think if you know what to do and when to do it. It’s important to look at your self-talk, your limiting beliefs, change your language patterns and make a commitment to meditating and re-training your brain every single day.

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Shifting your beliefs A belief is a way of seeing the world. It is what we believe to be true. Our own beliefs, both negative and positive, cause us to perceive and act in a certain way. Whilst some beliefs allow our businesses and lives to function smoothly, other beliefs can hold us back. Keeping us stuck and unable to make the shifts and the leaps we so truly desire.

Through a lifetime worth of events and experiences, we actually learn what to expect whether it happens or not. Because we naturally expect things, we often achieve what we anticipate. This is why it is so important to hold positive expectations in the mind.

The good news is no matter where you are right now, your beliefs can be changed and you can bounce forward and break through.

New beliefs lead to new actions The formula pretty much worked for us, well the business that is. We doubled the business year after year. It certainly didn’t serve and support us personally or emotionally.

Working 70 - 100 hours per week, we were stressed out and burnt out. We genuinely thought that was how business was meant to be. Work hard now and enjoy the fruits of our labour later was our philosophy.

Does something need to change? If so, what?

Sadly, later never came and in 1999 my husband, business partner and father to my children tragically died.

So let’s dive in to how you can build a healthy mind, healthy body, and healthy business.

You may be reading this with a heavy heart and on some level I hope so. As it is with a heavy heart we somehow are instantly drawn in to reflect on our own lives. Take a moment right now to reflect on your business and your life. Is it looking good or could you do with a little more support?

I am confident to say change starts with acknowledging that something must change and then making a commitment to doing whatever it takes to make that change. I know too closely the cost of success however, I have now realised it is possible to balance your focus and create a successful business and more importantly, a great life.

Transform your thinking!

Thought is the seed of creation for everything we create in our lives. If you look at your current results and then analyse your past thoughts and beliefs you will more than likely find a connection.

Take a quick look at the thoughts you have regularly each day. Are they helping you move closer to where you want to be or further away? Do they empower action or contribute to procrastination. Empowering thoughts inspire you to act. Disempowering thoughts lead to you doing things that move you further away or doing nothing at all. The key point here is your current reality is as a result of the consistent thoughts you think and the actions or lack of action you take.

Thoughts + Actions = Results Be sure you are thinking the right thoughts, and are taking the right actions in the right order at the right time so you create the results and outcomes you want. If a disempowering thought comes your way, make it a habit to quickly replace it with an empowering one.

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“When you’re in good physical, emotional and spiritual health – the hard things are easy. When we’re not in good physical, emotional and spiritual health – the easy things are hard.” - John Assaraf.

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e x per t a dv i c e

Make an effort to meditate. Meditation is one way to practice mindfulness. Current research suggests that meditation sharpens your skills like attention, memory and emotional intelligence. Meditation also builds resilience and performance under stress. Meditation boosts emotional intelligence, enhances creativity, improves your relationships and helps you focus.

Importantly, meditation is not just “one more thing to do”. Adrianna Huffington said this so well, we don’t ‘do’ meditation; meditation ‘does’ us. The only thing to ‘do’ in meditation is nothing and this type of doing nothing can have real results.

If you’re not sure how to get started with meditation, there are plenty of resources on YouTube. Some will guide you through the process. The key is to find something that suits you best.

Mind and body intrinsically connected The mind and body are intrinsically connected. First you must change your mind, then you must maintain physical fitness in order to experience an increased level of clarity and energy to take the right actions and get things done.

“When you’re in good physical, emotional and spiritual health – the hard things are easy.

When we’re not in good physical, emotional and spiritual health – the easy things are hard.”

John Assaraf Let’s face it; we have all taken our health for granted at some stage in our lives. We all say we are too tired, too busy, have too much on to take time out to exercise, take a break away or even just go for a quiet walk. Studies have now shown – I’ve proven it with my clients and with myself. The more we work on creating a healthy mind and the more we commit to getting and staying healthy, the more things flow in business and in life.

Exercise is one of the things most successful people do. It helps build confidence and enhances clarity and is one of the most important habits you can develop to transform your life. I know myself my revenues are much higher in the months I exercise and meditate more often. It is a proven fact now that working out can make you healthier. When you are healthy, you sleep better, your mental sharpness is increased and you have more energy to get things done in less time. So get exercising as often as you can and see your results shift in the right direction.

Before you think I’m about to say reduce your alcohol and your carbs, I won’t be.

Well at least I won’t be telling you to reduce your alcohol. A leading cardiologist at a CPD seminar held in the Sydney CBD only

48 Business Franchise Australia and New Zealand

“One thing that stands out among all the high achievers in the world is they know how to put themselves first. What I mean by that is they prioritise building a healthy mind and a healthy body, which enables them to easily and effortlessly build a healthy business.” recently confidently reported that two glasses of red wine a day was in fact very good for you. Thank goodness for that. We may not be able to have our cake and eat it too, but a daily dose of meditation and mindfulness coupled with some regular exercise and good eating habits can achieve a healthy business that serves and supports us rather than the other way around.

Tania Allen is the founder of Vision Alliance & TaniaAllen.com. A transformational leadership coach, business growth and franchise expert, she helps business owners create a business and life they love.

You can contact Tania at: 1300 76 49 20 tania@taniaallen.com www.visionalliance.com.au

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FR A NCHISOR IN DEPTH : j ust cu ts™

YOU DON’T HAVE TO BE A HAIRDRESSER TO OWN A JUST CUTS™ Mark Nagyivan

When you join the Just Cuts™ Franchise Owner community, you’re never on your own! Experts agree that franchise businesses have a better chance of success than independent small businesses.

The reason is simple – with a franchise like Just Cuts™, you’re partnering with a well renowned brand and retail product offering, in addition to being provided with all the systems and processes you need to drive your business to success. Coming to the end of another successful year, Just Cuts™ has continued to grow at a rapid rate and bring in a few more salon Grand Openings before the year closes. We celebrated the third birthday of our exclusive haircare and styling range, JUSTICE Professional™ and introduced three new products to the

50 Business Franchise Australia and New Zealand

growing range. But behind all the numbers and achievements is just a great story; it’s about one man with a simple idea that would change the hairdressing industry forever.

JUST A GREAT STORY Just Cuts™ was the brainchild of Denis McFadden, who, back in 1983, turned a simple idea into a business concept that would change the hairdressing industry forever. Always ahead of the curve, McFadden decided to run a promotion at his humble Sydney salon to boost business

“Owning my own business has given me the freedom to work when I want, so I have more time to spend with my children. I have never looked back in the 25 years that I have been a Just Cuts™ Franchise Owner.” - Lynne Ryan, Owner Of Three Just Cuts™ Salons Across NSW

TAKE HOME HAIR COLOUR

JUSTICEhair.com

“I opened my first Just Cuts™ franchise seventeen years ago and it’s been so successful that I now own eight salons! I’ve never had a better work/life balance and now I work when it suits me!” - Oliver Adams, Owner of Eight Just Cuts™ Salons across NSW

DRY SHAMPOO

and offered all Clients a “no appointment, $6 Style Cuts™ cut”. The response was outstanding and the idea of Just Cuts™ was born.

In 1990, the first Just Cuts™ franchise opened in the suburb of Engadine, in the south of Sydney. And we’ve continued to expand ever since, with over 190 in Australia and New Zealand now open.

That’s an average of one new salon every six weeks! Just Cuts™ has grown to be the largest hairdressing company in the southern

hemisphere, and we perform over 90,000 Style Cuts™ cuts each week. We believe that this success comes down to our franchise model, which has been tried, tested and refined over the past 26 years of business.

with hair experts worldwide to create a line of products made by hairdressers, for our Clients, so they can now experience a professional salon finish from the comfort of their homes.

THE DETAIL’S IN THE RETAIL

GET ALL THE SUPPORT YOU NEED

In 2013, we answered the calls of our Clients and launched JUSTICE Professional™ – a range of salon quality, paraben free haircare and styling products available exclusively in all our salons at a competitive, affordable price. Our line has something for everyone, including every day shampoos and conditioners, antidandruff and dry scalp treatments, toning products, nourishing leave-in treatments and a range of hair styling waxes and sprays. And this month we launched the brand new take home Hair Colour range.

We scoured the globe for the finest ingredients on offer and have consulted

With a long and successful history in the franchising sector, Just Cuts™ is well positioned to take the guesswork out of opening your own business. We provide our Franchise Owners with a proven, successful system that will guide you through every step of opening your salon - we’ve tried, tested and refined this system over 26 years of business in franchising – that’s why it just works and is continuing to work.

As a Franchisee, you’ll enjoy the ease of the Just Cuts™ business model, which has already been set up for you with operational, ordering and marketing systems all built into

Business Franchise Australia and New Zealand 51

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COLOUR

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FR A NCHISOR IN DEPTH : j ust cu ts™

THE JUST CUTS™ SMART CHOICE CHECKLIST At Just Cuts™, it’s all about you.

We believe in making things easy, comfortable and convenient for all our Franchise Owners. Check out some of the benefits of becoming a Just Cuts™ Franchise Owner: • Enjoy the stability of fixed franchise fees so your earning potential is never restricted • Become a part of an established homegrown brand with greater brand public awareness • No hairdressing experience necessary – just a love of people and eagerness to learn • Share a common pool of resources, ideas and information

At Just Cuts™, it’s all about you.

We believe in making things easy, comfortable and convenient for all our Franchise Owners. We have grown to be the largest hairdressing company in the southern hemisphere,and we perform over 90,000 Style Cuts™ cuts each week.” it. The model has also been fully digitalised with a range of support available online, including an e-learning platform, print marketing ordering system, retail reward program and Point of Service (POS) tools.

Our dedicated Academy Team will also guide and support you throughout the whole process of opening your salon, including training, pre-opening assistance, management advice, a comprehensive Operations Manual and a bespoke Grand Opening marketing campaign. On top of this, you’ll get all the ongoing support you need from the Team, who will provide you with any business, operational and marketing guidance that you need once we’ve got you up and running.

As a business owner, this means you don’t need to worry about how to best develop a system to ensure your Clients leave satisfied.

You don’t need to worry about creating training programs for your team, or nailing down operational processes for accounts and stock inventory. All this is packaged up for you for you when you move into your salon, providing you with the fundamentals you need to get your business up and running smoothly.

THE JUST CUTS™ KIOSK SALON The Just Cuts™ Kiosk salon is the latest innovation to traditional salon formats and designs. Designed as smaller compact sites, Kiosk salons are positioned in prominent, high foot traffic flow areas within shopping centres. They can also act as satellite sites to an existing salon.

All Kiosk salons are designed to the same high standards as regular Just Cuts™ salons, however with the added benefits of shorter term leases, plus they require less regular maintenance and upkeep. They also require a significantly lower initial investment from Franchise Owners. In fact, you can get your own business up and running from just $85,000!

Want to find out more on how to become your own boss? Contact our Business Development Team for a friendly, obligation-free chat today.

02 9527 5444 0439 130 499 justcuts.com/franchising Follow Just Cuts Franchising to stay up-to-date with the latest Just Cuts™ corporate news.

52 Business Franchise Australia and New Zealand

• Benefit from shared marketing costs • Potential to easily expand into multiple salons – in fact, over half of our Franchise Owners own two or more salons • Increased flexibility and work/life balance - the average Just Cuts™ Franchise Owner spends less than 30 hours working on their business • Grow your salon by tapping into an existing network of suppliers, Clients and contacts • Combine security with independence • Receive ongoing training and operational support • Save time, effort and money with the guidance of our marketing experts • Take time to work on your business, not just in it

“I’ve always dreamt of running my own business and within six months of opening my first Just Cuts™ Franchise, I knew my dream had been realised.” - Brooke Edmonds, Owner Of Just Cuts™ Rockdale, Nsw

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h av e yo u r s ay: Ho m e In st e a d S en i o r Ca r e

HEALTH CARE: A GROWING SECTOR

Mark McBriarty, a Human Resources Director for Hilton International for 20 years, and Lee McBriarty, an experienced palliative care nurse, were disappointed with the home health care options available to Lee’s elderly mother.

“The services available in her area were limited, and she lacked control over the health services she received,” Lee said.

“Fifteen minute check visits and fortnightly house cleans simply weren’t enough to keep her living independently and healthily at home.”

This was the catalyst for the establishment of their Home Instead Senior Care franchise in Adelaide, South Australia, in 2008. The service is based on a personalised model of home health care that coordinates caregiver teams to provide care for older people in their homes.

54 Business Franchise Australia and New Zealand

“Our tailored approach to home health care is poles apart from the typical one-modelfits-all scenario that we encountered,” Mark said.

“We meet with clients and families, we get to know their needs and interests, and we match them with a team of skilled CAREGivers and a dedicated Client Care Manager who coordinates all aspects of their health care.

“It’s a simple approach that recognises every client is unique – the health care needs of older people aren’t homogenous, and as Australia’s population continues to age, we

Lee McBriarty, Franchisee, Home Instead Senior Care

workforce are aged over 50 and four are aged over 70, many having been recruited after a long career, a period of caring for a loved one, or following retirement.

“Our mature CAREGivers bring a wealth of experience from their personal and professional life which enables them to easily connect with clients,” Lee said. “The quality of the connection between our clients and our CAREGivers is a key component of our personalised service delivery and a real differentiator for our business.”

There is no doubt that the quality of the care older people seek is increasing. Access to digital information, experience as consumers and greater personal expenditure on health care have paved the way for higher expectations.

“The ageing population won’t just increase demand for health services, it will change the way these services are delivered,” Mark said. are going to see a more diverse range of care needs than ever before.”

Australia’s ageing population is a dominant driving force behind the health care sector’s ongoing growth. In 2013, 1 in 26 Australians was aged 80 and over. By 2030, this number will rise to 1 in 18.

The ageing population brings with it an increase in chronic health conditions, such as diabetes, dementia and Parkinson’s disease, all of which require much more than physical assistance.

“Maintaining independence and having a

sense of purpose are the top priorities for many people as they age, especially in the face of a chronic condition,” Mark said.

“Carers need to provide meaningful interactions and encourage clients to participate in tasks as much as they are able to – independence and purpose simply cannot be achieved when carers do it all.

“This is where our dedication to matching our CAREGivers with the diverse personalities and needs of our clients really matters.”

More than 65 per cent of Mark and Lee’s

“They want more options, more information, more input and higher standards of care, and government policy will support them.

“They will no longer accept being told what they need – their opinions and preferences will need to be part of the dialogue, and this is the way it should have been a long time ago.”

From February 2017, funding for Home Care Packages will follow the consumer so they are free to select any approved provider to deliver their care.

“These legislation changes will revolutionise the delivery of home health care services in Australia,” Mark said.

Business Franchise Australia and New Zealand 55

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“Australia’s ageing population is a dominant driving force behind the health care sector’s ongoing growth. In 2013, 1 in 26 Australians was aged 80 and over. By 2030, this number will rise to 1 in 18.”

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h av e yo u r s ay: Ho m e In st e a d S en i o r Ca r e

“I would encourage those who are new to the industry to attend as many conferences, meetings, presentations and exhibitions as they can.”

“Undoubtedly, we will see new, innovative entrants popping up in the market, but those providers who fail to deliver choice, control and flexibility will find it difficult to thrive.”

“It can be overwhelming trying to navigate the industry in the first few months, but at the end of the day the work that we do is incredibly rewarding and meaningful.

According to Mark, the key to ongoing success for a business in the fast-paced home health care industry is the recruitment of and investment in suitable staff members.

“It’s a gratifying feeling knowing that we play a big part in encouraging older people to live the way they want to live, while reducing worry and stress amongst family members.

“Hire for the qualities you can’t teach,” Mark said. “Understand the qualities required of each role in your business, and hire people based on those qualities. You can’t train people to be compassionate or client-driven – but you can invest in people with these qualities and support their professional development.”

Lee adds that, for people new to the health care industry, there is a lot to learn about systems and processes.

“I would encourage those who are new to the industry to attend as many conferences, meetings, presentations and exhibitions as they can,” Lee said.

• Sufficient capital: Have enough in reserve to allow for start-up/cash flow issues that will inevitably keep you awake at night.

With 5 years’ experience as a palliative care nurse and a carer for her own Mum, Lee McBriarty established the Home

“We have no regrets establishing ourselves in this industry, and we know that we will be growing in line with our ageing population.”

Instead Senior Care Adelaide East office

Tips for Health Care Franchisees:

ageing in South Australia.

• Understand the language: If you are new to the health care industry, there is much to learn. Attend conferences, meetings and presentations and ask lots of questions.

Home Instead Senior Care is an

• Recruitment is the key: Understand the required behaviours for each role in your organisation and focus on developing your recruitment skills to identify the right people.

care services to older people such as

56 Business Franchise Australia and New Zealand

with her husband, Mark, in 2008 with the very clear intent to change the face of

international network of independently owned and operated franchises. The network provides non-medical home personal care, meal preparation, light housekeeping and transport. www.homeinstead.com.au

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pr o fi l e : co r e9

CORE9: No Boundaries

Core9 was founded by power duo Craig Arnold and Jason Dolan in 2013.

The vision was clear – to develop a fitness philosophy that would be able to improve the health and wellbeing of Australians.

The Core9 training framework is built on a strong passion and experience for health, fitness and well-being.

Craig, an elite world series adventure racer and national level gymnast alongside Jason’s military service within the Australian Defence Force and over two decades of Muay-Thai kickboxing training. These attributes bring together the perfect combination of experience to build a unique training program that people enjoy every day.

The business was born from the two mates being inundated with requests from friends and family wanting to exercise in a way that was easy to implement into a busy lifestyle

whilst also keeping up the intensity for an effective workout.

9 checkpoints. 31 minutes. No boundaries.

With the foundations of kickboxing training’s three-minute high intensity workout followed by 30 seconds rest, the concept was blended with gymnastics, military and extreme sports training techniques to create the current ‘lane based’ programs where a member can work through a series of cardio, weight and resistance stations in a 31-minute period whilst being coached by a physical training instructor.

“We identified a unique gap in the fitness industry,” Craig says. “The majority of people are paying $15-25 per week for a gym membership, or upwards of a $100 for a personal trainer and not taking advantage of their investment.”

This is why Core9 thrives in a busy environment. Bookings are not required. You show up, a personal trainer is on duty and you start immediately – you’ll be finished in 31 minutes.

This model allows there to be a personal trainer (PT) available when they need one

without having to pay the high price of a one-on-one PT session. They also undertake a workout that can be adjusted to their level of fitness and their personal goals.

The discipline in Craig and Jason’s respective careers has led them to excel in everything that they have set out to achieve, living by the motto of ‘no boundaries’ the guys want to unleash the best out of Core9 members.

“Core 9 is a seriously addictive boutique gym.

The more you go, the more you want to go! The 9 stations are designed to give you a total body work out in just 31 minutes.” Core9 Member.

Outperform Yourself As the new kids on the block, they’re not trying to revolutionise the industry, they simply want to partner with franchisees that are hungry for success, hungry to connect with people and hungry to make a difference in other people’s lives.

Having identified franchising as the best vehicle to share their passion for the fitness industry, Core9 gives personal trainers an unparalleled brand and business model that helps grow their business, ultimately sharing the passion to help thousands of Australians improve their lives through health and fitness.

By building the foundations right from the outset, and developing the best possible tools, such as a member management system and robust franchise operations manual, the Core9 model is well placed to support franchisee success.

The business model is simple - the branding, marketing and business back end are all taken care of. The franchisee’s key focus is to be the face of the business, and the go-to fitness guru within the local community.

“At Core9 it is not just about the workout and fitness, it is also about fun and friendships together with the fantastic structure of every workout - you always want to go and it is never a chore.” Core9 Member.

“Having identified franchising as the best vehicle to share their passion for the fitness industry, Core9 gives personal trainers an unparalleled brand and business model that helps grow their business.”

58 Business Franchise Australia and New Zealand

If you’re passionate about improving the health and well-being of all Australians and would like more information on joining this unique franchise brand, contact Craig Arnold at: 0417 214 917 franchise@core9.com.au

AVAILABLE NOW

F I T N E S S

Contact Craig Arnold 0417 214 917 franchise@core9.com.au www.core9.com.au

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e x per t a dv i c e

Entering a Saturated Market

One of the most difficult aspects for any business owner is getting new customers through the door. We’ve all heard the 80-20 rule where 80 per cent of your sales come from 20 per cent of your customers, but that doesn’t stop business owners from wanting more…

probably has a handful of personal training groups on any given morning. As a new entrant to the industry, or even someone who’s been around the block for a while, this can be daunting – is a competitor’s service better than mine? Are they going to poach my members? How am I going to sell my business better than my competitors?

When it comes to the fitness industry there is a key problem that a business owner needs to address on day one. How do you deal with the market saturation? It seems like there is a new gym popping up at every shopping complex, yoga studios around every corner, and then your local park

Saturation

Saturation vs Education

The first path way to explore is entering a saturated aspect of fitness, such as 24/7 gyms. Your customers will know what to expect from your service – but will you be able to compete with all of the other 24/7 gyms? Will you be able to get your customer to drive past the three other gyms on their way home from work, just so that they can train at your gym?

A common issue facing in the fitness industry is that of Saturation vs Education – should I setup a business that will be easy for my customers to understand, or should I setup a business that differentiates itself and nurtures the market place to understand what we are doing?

According to the IBISWorld Gym and Fitness Centres Australia report there are over 3,300 gym/fitness businesses in Australia, in conjunction to increasing annual growth and the consumer health consciousness index – the saturation of the industry will continue over the next five years.

There’s no right or wrong answer, as a business owner you will face challenges in both scenarios – that’s why it’s important to develop a detailed business plan that outlines all of the potential challenges you can foresee, and how the business will overcome them.

To sparkle in a saturated industry, you need to make sure that your marketing initiatives are one step ahead of your competitors.

Chances are that you will be unable to compete on pricing, so being a local area marketing and engagement guru is key.

Building community awareness to your

60 Business Franchise Australia and New Zealand

Common Ground Regardless of the industry you are in, the fundamentals of marketing your business do not change. You need to engage with your local community to make sure that they know who you are and what you have to offer. You have to make sure that all of your marketing initiatives have a purpose and result in a positive return on investment.

A gym or fitness studio is often more than just a place to exercise – it becomes a hub within the community that attracts people to socialise rather than just a destination. For a franchisee or business owner it’s important to ensure that you and your business are constantly in the spotlight so that the community is aware of who you are and what you are doing – this will make them want to be a part of your hub.

The Perfect Solution There’s no perfect solution – being a business owner is difficult work. Ask yourself these questions before buying a business in any industry.

1. What are your competitors doing? Will you be able to realistically compete with them?

business via sponsorships, community programs and advertising campaigns will help you succeed.

customers about why your business is different, and the advantages that you offer in comparison to your competitors.

As a franchisee you will most likely be paying a marketing royalty – but that’s not where the buck stops. The best performing franchisees will invest a further 5-8 per cent of gross revenue into marketing.

A key component of any successful business is having a unique selling proposition (USP) – without a clear USP it becomes difficult to build loyalty and repeat customers with your business. In comparison to a saturated business such as a 24/7 gym, a business that has differentiated itself from the pack will often find it difficult to convert customers because they are unaware of the services and benefits that the business will provide them.

With a highly saturated market you will also find that it becomes increasingly difficult to retain your members for long periods of time. Customers do not build an emotional relationship with the brand because likebusinesses are a dime a dozen. So how are you going to make sure that you are able to retain your customers from month-tomonth?

Education The second pathway is to educate your customers. It’s not about educating your existing customers as to the service that you provide and how they can improve their health – it’s about educating your potential

Marketing your services or products may seem like one of the fundamentals any business owner does, but when you have something that is unique and potentially never seen on the market before – how are you going to convince the audience that your offer is better? how are you going to market your business? how is your target audience going to react to offer? how are your competitors going to react to your offer? are they going to copy you?

2. What are the hurdles that you will need to overcome? Do you have a plan how to overcome the hurdles?

3. What is the USP? Is your USP better than what your competitors are offering? How will you sell it?

4. How will you promote the business in the local community and engage with your target market?

FC Business Solutions is an integrated consultancy firm specialising in developing, growing and marketing franchise systems. A professional team provides expert service exclusively to the franchise community, in system development, marketing and communications, business health checks, and business operations. They also offer solutions in documentation, training, and human resources.

Contact: 03 9533 0028 contact@fcbs.com.au www.fcbs.com.au

Business Franchise Australia and New Zealand 61

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“To sparkle in a saturated industry, you need to make sure that your marketing initiatives are one step ahead of your competitors.”

Having a unique selling proposition over your competitors is highly desirable, but if your proposition is too unique – you may find it difficult to attract enough market share from the saturated sectors.

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e x per t a dv i c e

Franchising vs. Licensing

– Which is right for you?

“When it comes to choosing the right investment model, there’s no one size fits all approach.”

62 Business Franchise Australia and New Zealand

While the prospect of becoming a Franchisee or Licensee may be daunting, it can be an exciting and potentially prosperous endeavour when pursued in the right way.

There are several benefits and disadvantages that need to be weighed up before entering into any kind of business agreement.

We asked 9Round Australia National Sales Manager, Ty Menzies to share his key insights into the two business models.

FRANCHISING The franchising model is heavily adopted in the fitness industry, as it enables franchisees to have access to a well-known brand and reputation with support from the franchisor to guide them every step of the way. Some of the notable brands who utilise this model in Australia include Snap Fitness, 9Round, Anytime Fitness, Jetts and Genesis Fitness.

The Pros 1. Offers a set and exclusive territory to operate your business within.

This one is likely to vary based on the specific franchise contract, but the majority of franchises do grant exclusive territory to their franchisees. This enables the franchisee to have a set geographic area which they can market to, without threat from another franchisee.

2. The independence of being a business owner with the support of a large successful organisation.

Franchisees are provided with significant corporate support from the franchisor, which includes tried and tested systems and suppliers that they can lean on in getting the franchise up and running. This support really helps in the early stages.

Franchisees can enjoy this security, while still having a feeling of independence from owning their own business.

As well as this, the franchise model gives you access to a well-known brand and reputation, which typically means less time and resources will be required for marketing.

“As the franchisee you are bound by your franchise manual and the actions of the franchisor. So if the franchisor decides to introduce new products, branding or pricing – you are obliged to follow suit.”

Ty Menzies | National Sales Manager | 9Round Australia

3. Minimal experience is required and significant training is usually offered to new franchisees.

You don’t necessarily require business experience to own a franchise (although it definitely helps). The franchisor will usually provide you with the training necessary to operate the business.

4. Finance can often be easier to secure due to proven track record.

If the franchise is well known with a proven track record and a good degree of accuracy in sales projections, there will be a lower perception of risk which will assist with financing. Significant research is still required by the franchisee before making an investment.

5. Franchises have a higher rate of success than independent small businesses.

Depending on the strength of the brand and guidance of the franchisor, opening a franchise will typically create a more impactful impression when first establishing your presence in a local market.

The Cons 1. Lack of flexibility in running the business the way you want.

As the franchisee you are bound by your franchise manual and the actions of the franchisor. So if the franchisor decides to introduce new products, branding or pricing – you are obliged to follow suit.

This often also relates to site location and fitout.

2. Poor performance or actions from other franchisees can negatively affect your business.

As the reputation for your business’s brand is in the hands of a number of franchisees, the franchisor must enforce compliance standards across the whole network to avoid the actions of one franchisee negatively impacting the business of all.

3. You must comply with all of the franchisors rules and regulations for operating the business.

It’s important to remember that when it comes to franchising, you are in business for yourself but not by yourself, so you will still be required to follow direction from the franchisor.

4. You will be required to pay an ongoing fee or percentage of turnover to the franchisor.

As well as paying to join a franchise group, franchisees are required to pay an ongoing fee on a periodic basis for the life of the business.

5. When selling your business the franchisor has the right to refuse any potential buyer if they are not a good fit for the brand.

Although this may delay the process, the franchisor does have the right to be selective about their franchisees to ensure the long-term integrity of the brand.

LICENSING The licensing model is again very common in the fitness industry as the IP of fitness training is unrestricted, creating an opportunity for the licensee to develop a point of difference whilst operating under a branded license agreement. Some of Australia’s most well-known fitness brands that adopt this business model include; World Gym Australia, F45 Training and CrossFit.

The Pros 1. Licensing often allows you to be more flexible in the delivery of the product or service.

Typically, licensing has fewer barriers to entry with the licensor retaining little to no control over how the licensee choses to operate the business. This leaves the licensee with significant flexibility to make their own business decisions.

2. Typically the upfront and ongoing fees with licensing are lower.

After the initial purchase of a licensing agreement, there is often very low to no further financial obligation between the licensor and licensee.

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FE ATURE : h e a lt h, b e au t y & fi t n ess fr anch isi ng

A career as a PT can present more opportunities than just training clients, with many of the major Australian fitness brands opening their doors to owner operators through franchising and licensing arrangements.

FE ATURE : h e a lt h, b e au t y & fi t n ess fr anch isi ng

e x per t a dv i c e

“Above all else, the franchise you are looking to invest in must be something you are passionate about and can see yourself being a part of for the long term.”

3. Often a licensed product or service can be sold alongside other products and services you might have.

As part of the flexibility and control of a licensee, they are often able to sell their own products alongside the branded ones of a licensor.

4. Licensing offers faster growth potential in the beginning.

As licensing requires very little capital outlay, it should provide faster growth and a high rate of return on the initial capital invested.

5. Much easier to on-sell a license agreement onto someone else.

As the licensor has lessened control over the individual licensees, you can sell a license agreement onto someone else without the considerations required when selling a franchise.

The Cons 1. No set and exclusive territory to operate your business.

Often licenses are sold with no set exclusive territory between each other and can be sold to competing businesses, depending on the style of license.

2. Often minimal training and ongoing support is supplied to the licensee.

With minimal training and support provided by the licensor, prior business experience and an understanding of business practices is a must. Especially as product development, inventory management and store replenishment are usually the responsibilities of the licensee.

3. Licensees are not protected by a governing body.

Where franchisors are regulated by the ACCC, there is no governing body to regulate licensing in Australia.

4. There is less credibility with licensed models and it can be more difficult to secure finance.

Having an established and proven business model to present to the creditor will allow for a far smoother process when looking to secure finance. When a franchise grows to more than 20 they can apply to their main banking institution to become a lender of choice allowing for an even easier access to finance for the franchisee. This option often isn’t available for licensees.

5. Licensing a product or service can be more expensive for the licensor.

By licensing you lose out on the buying power that comes with franchising purchase deals. You will likely also pay premium for the most part when it comes to the supply of stock as this is controlled in a franchise setting and is continuously reviewed by purchasing experts.

When it comes to choosing the right investment model, there’s no one size fits all approach as Ty’s comments demonstrate.

Ultimately it comes down to personal choice and previous experience.

Those who have run their own business before may find more freedom and room to be innovative by operating under a licensing agreement, as those same people would likely become frustrated under the brand or operations control of franchising.

If you’re looking for training, support,

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structured and measurable marketing, purchasing power and brand power then franchising is likely a more ideal business model for you. Before investing, however, make sure you do your homework to ensure that the business is viable long term and that ROI can be reached in a reasonable timeframe (generally between 1 - 3 years).

Asking all the right questions of your franchisor and of their franchisees to ensure you are comfortable making the investment and finding out what an exit strategy looks like is extremely important. Above all else, the business you are looking to invest in must be something you are passionate about and can see yourself being a part of for the long term.

Starting his fitness career as a personal trainer in Melbourne, Ty Menzies moved quickly into roles within sales and club management before opening his first of four health clubs at the age of 22. After selling and moving to Queensland, Ty completed an MBA before stepping back into the industry as the National Sales Manager for Lift Brands Australia.

Lift Brands is the world’s largest franchised wellness company occupying more than 3000 facilities across the globe, and with its latest addition - 9Round taking the industry by storm they are continuing to grow here in Australia, with 100 9Round clubs planned to open across Australia in the next 3 years. www.9round.com.au