Nov/Dec 15 Feature: Health, Fitness & Beauty

VOL 10 ISSUE 01 nov/dec 2015

health, fitness & beauty

the

l Gooind Feefactor franchising

secrets of a

ccessful Sufranchise business

ising Adonveratlevel playing field

Business Franchise Australia and New Zealand 37

what’snew!

Anytime Fitness Australia Announces Shannan Ponton as Brand Ambassador Shannan returned to Series 10 of The Biggest Loser as fitness trainer and mentor. The Biggest Loser continues to be amongst one of the highest rating shows on the Ten Network, with Shannan the most successful Biggest Loser trainer, having trained five of the Series’ winners so far.

Anytime Fitness, Australia’s number one health club, announces the reappointment of celebrity personal trainer Shannan Ponton as their Brand Ambassador.

With over 20 years’ experience in the health and fitness industry, Shannan Ponton has acquired extensive experience and knowledge in the areas of exercise, fitness, nutrition, health, people management and the media. Shannan is a well-respected and in demand health and fitness expert having developed and delivered innovative personal training, fitness, motivational and general life solutions to many participants. In 2015,

“After working in the health and fitness industry for more than 20 years and being part of so many massive transformations in people’s lives, I’m still in awe of the resilience of the human body and spirit and amazed at how much and how quickly the body can change with the right diet, exercise and self-belief. I’m eternally grateful for the opportunities I get to transform people’s lives. That’s why my partnership with Anytime Fitness is so strong. It’s all about transforming lives,” says Shannan Ponton.

The master franchisors for Anytime Fitness Australia, brother-and-sister team Justin and Jacinta McDonell, commented on the partnership, “Shannan is a great choice for us as a Brand Ambassador because his values and beliefs mirror ours. The Anytime Fitness

Existing staff members take the leap with Fitness Enhancement Fresh off having franchisees start in Melbourne and Sydney, the rapidly growing Personal Training franchise has had two of their own staff members take the leap into being franchisees themselves.

Eli King who has worked for Fitness Enhancement for a year has purchased a franchise in North Lakes, North Brisbane.

Troy Symons who has been with the company for five years as a Personal Trainer and then Studio manager has also purchased the Beenleigh QLD territory.

CEO and founder Scott Hunt stated “every new franchise is extremely exciting for us, but it is extra exciting to have our own staff who know the business inside out also see the amazing opportunity there for the taking.

The fact that they have chosen to leave a good job to take up this opportunity is further evidence of the great direction we’re all heading in” New franchisee and former Studio manager Troy Symons says, “I had a great career working for Fitness Enhancement, but I always had the dream of owning my own business and the rewards that come with being your own boss. Fitness Enhancement was nowhere near franchising when I started with them five years ago, so I was more than content with a great job. However the more successful I saw other Fitness Enhancement franchisees becoming over the last 6 to 10 months; the more I wanted to follow my original dream of owning my own business.

Only this time I wanted to do it with the amazing support from Scott and the team.”

38 Business Franchise Australia and New Zealand

brand is all about transforming lives and making a difference. We start with small steps and take bigger ones as soon as we can. Our business transforms the lives of our members, our franchisees, our staff and the broader community through our support for charitable organisations. We are pleased to be partnering with Shannan and are excited about how the Anytime Fitness brand will continue to grow in 2015 and beyond.”

Shannan’s new relationship with Anytime Fitness will include the supply of exercise and nutrition programs, a regular column in the Anytime Fitness monthly newsletter, contributing social media content and public appearances.

Justin and Jacinta launched the highly successful US franchise Anytime Fitness into Australia in 2008 and there are currently over 400 clubs open throughout the country.

With over 2700 clubs and 2 million members worldwide, since Anytime Fitness launched into Australia in 2008 it has become the quickest growing segment of the world’s fastest growing fitness chain.

Celebrating creativity and passion at Hairhouse Warehouse The powerhouse of hair Hairhouse Warehouse (HHWH) recently held their annual convention at RACV Royal Pines Resort, Gold Coast QLD. Bringing together franchisees, store managers and staff from across the country, the three day event included keynote speakers, a presentation of the upcoming Christmas campaign, supplier expo plus the highlight of the convention, the gala dinner, announcing the HHWH 2015 Award Winners.

HHWH speakers included CFO Michael O’Connell, Marketing Communications Manager Anni Lattouf and MD Emad Nayef, with a keynote presentation from Clint Paddison, who delivered an inspirational and very personal account of his journey with Rheumatoid Arthritis and his family’s dream to improve the life of fellow sufferers. Fellow keynote speaker was Tony Doherty, owner of 6 Doherty’s Gyms and promoter of the Arnold Classic in Australia.

Having travelled from Bendigo to Melbourne

in 1994 with nothing but a truckload of broken gym equipment, $250,000 worth of debt, and a dream, Tony shared his inspirational story and also disclosed his secrets for success.

However, the true stars of the convention are the franchisees and employees of HHWH. Year Franchisee of the Year (3+ sites) was awarded to Joe Kmaid, DFO South Wharf, Highpoint, Melbourne Central, Spencer Street, Victoria Gardens and Williamstown (VIC) and Franchisee of the Year (1–2 sites) to Greg Banis, Blacktown, Bondi Junction, Chatswood, Rousehill (NSW).

Salon of the Year was won by Mt Druitt (NSW), owned by franchisee Paul Banis with Greg and Paul Banis being inducted into the Hall of Fame.

Other winners on the night included Ross and Kyle Britton; Nic Nayef and Melissa Sciberras.

“Dream big – you have every right to success.” Tony Doherty

Melissa Sciberras

Australia’s fitness industry elite revealed at annual awards Australia’s fitness industry elite have been recognised at Jetts’ annual conference.

The annual event, held on Saturday 29 August, celebrated the leading 24/7 fitness group’s best in health and fitness across the country.

Award recipients were recognised across six categories on both a state and national level. Each category was judged on a range of criteria including business performance, club culture and appearance, customer service, member feedback and excellence in other operational areas within each club.

The national winners were as follows: Business Owner of the Year: Susan Chau, WA Club of the Year: Northcote, VIC New Club of the Year: Doncaster East, VIC Club Manager of the Year: Shannon O’Loughlin, Jetts Annerley QLD Personal Trainer of the Year: Amanda Brown, Jetts Kingsway NSW Making a Difference in the Community: Jetts Mandurah, WA With the addition of winners crowned across each state, there were 30 winners chosen on the evening.

Elaine Jobson, Jetts General Manager, said: “At the end of the day it’s the way our people make our members feel that determines the

success of Jetts. We want every community to be better for having a Jetts in it and the contribution of our Business Owners, Club Managers and Personal Trainers is paramount to us delivering on that vision.

“Our people help us to inspire our members to live a better life. We are passionate about making our clubs as accessible as possible from when a member first walks through the door to when they finish their session. We have some fantastic people running our clubs across the country and I’d like to congratulate all of our winners and thank them for the hard work they put in every day.”

Business Franchise Australia and New Zealand 39

FE ATURE: H ealth, Fitness & B eau t y

the

d o o G l e e Ffactor in franchising

“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.�

40 Business Franchise Australia and New Zealand

FE ATURE: H ealth, Fitness & B eau t y undertaken - found that nearly two-thirds (63 per cent) of the population are now classified as overweight or obese.

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

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.

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.

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, self-confidence 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!

Expanding waistlines

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

Two of the top three on BRW’s fast franchise 2014 list are fitness outlets with Jetts Fitness at number two, and Anytime Fitness coming in third. Indeed, five of the top ten are health, fitness or beauty related with the top ranking taken by beauty based franchise Laser Clinics Australia.

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

Improving your bottom line 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.

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.

Check out the figures

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

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:

The 2011-12 Australian Health Survey - the largest check up on the nation’s health ever

• about $1.7 billion on gyms and personal training;

Business Franchise Australia and New Zealand 41

FE ATURE: H ealth, Fitness & B eau t y

owning a customer-focused franchise that helps to promote a sense of well-being and happiness can be just as rewarding, not to mention lucrative!

• about $380 million on weight-loss services; • about $292 million on dietary supplements; and • 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 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.

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, higherpriced services.

• 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.

• Having a loyal customer base. It is important for a salon to build up a base of satisfied clients, to ensure repeat visits and attract new customers through good word-of-mouth.

42 Business Franchise Australia and New Zealand

• Ability to control stock on hand.

Controlling stock levels, particularly hair-care 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.

An alternative approach 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.

Financial figures showed the sector, which includes Chinese medicine, acupuncture and other therapies to grow by around six per cent per annum over the next five years.

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

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

Alternative health therapies are also becoming increasingly popular among people searching for alternatives to prescription medicine.

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!

Look out for our next special feature:

The Price is Right Business Franchise Australia and New Zealand 43

FE ATURE: H ealth, Fitness & B eau t y

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.

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

Secrofetsa

successful franchise business Did you know in 2013 the market for anti-aging products and services grew into a global industry valued at an estimated $261.9 billion?

This went up from $162 billion in 2008 according to BCC Research, a publisher of technology market research reports based in Wellesley, Mass. In 2015/2016 we expect to see an annual growth of 18 per cent - this is fantastic news for anyone working in this space and provides massive opportunities for franchisees.

If you are interested in establishing a new business or converting to a successful franchise business model in the aesthetics or cosmetic industry, now is a great time to invest. A franchise provides an established business model which enjoys widespread brand-name recognition due to its association with proven treatments methods and service products. A franchise business can also offer significant opportunities and benefits including: • Proven business concept and operating model; • Established operating policies, procedures and standards; • Lower statistical risk of failure and easier to obtain finance than starting a new

44 Business Franchise Australia and New Zealand

business alone; • Profitability through established brand equity and centralised marketing of the franchise; • Shared marketing costs; • Established customer base; • Ongoing training; • Increased buying power; • Head office support; • Assistance with problems which may arise from time to time in the course of business; and • A team approach to business growth.

Australian Skin Clinics’ strong history has enabled us to hone our skills, system

Deb Farnworth-Wood | Founder and Managing Director Australian Skin Clinics

and business model. Our forward thinking mentality and organisational culture of innovation and excellence, has seen the company grow rapidly since opening our first franchise clinic just four years ago.

So what is the secret to running and maintaining a successful franchise business?

1. Look for a business model that is positioned for rapid and substantial growth With consumer spend on cosmetic procedures and related treatments in Australia at over $1 billion, the mediaesthetics industry is well positioned for considerable growth over the next 12 months. Of all cosmetic procedures, antiwrinkle injections, cosmetic and dermal fillers, laser and IPL are on top of the list.

Given that it is estimated that only one per cent of the population have experienced cosmetic injectables, the potential in this market is guaranteed to continue to grow.

2. Find a franchise that you are passionate about and one that has a strong brand image Australian Skin Clinics was founded over nineteen years ago in 1996 and has maintained and continued to build upon its already recognised and trustworthy brand foundation. A modern franchise business will understand that brand image and reputation is just as important as the high quality goods or services it provides to the market. This has, and continues to be a powerful asset to both the franchisor and franchisee.

3. Simple, strong and forwardthinking system With any business you need to have solid

systems that are maximised for efficiencies.

Unfortunately this is not often fully established in many businesses, who choose to develop their policies progressively as the business evolves. This can take many hours of hard work and can be a costly exercise. Choose a business model that has everything in place eliminating this headache. These solid systems could include: o Centralised and integrated computer systems and software; o Systemised accounts and payroll; o Benchmarking and performance management systems; o Simplified administrative requirements allowing time to focus on the performance of the business; o Communication, training and compliance portals; and o Medically-approved treatment protocols for all services.

4. Ongoing training programs Ensure the franchise business you choose has a heavy focus on training and compliance at the highest standard. This will not only allow you to up-skill, but will also ensure you and your team continue to grow professionally.

Training is one of the unique selling points of Australian Skin Clinics. Founded in Queensland, the company commenced operation in one of the most highly regulated states for laser licensing in Australia. As such, the company made a commitment to develop standards that aimed to exceed these requirements to ensure the highest quality service standards were set for the benefit of the client, setting the benchmark in the industry. Despite other states, including Victoria and New South Wales having

no licensing regulations, Australian Skin Clinics enforces its training standards and protocols across all states to ensure consistent and high quality service is delivered across the brand.

5. Strong support by professionals Investigate the network and ensure the franchise has a strong support system in place for franchisees. While some businesses aim to reduce expense by minimising support personnel, a successful franchise business will embrace the importance of setting a strong foundation and providing quality service to franchisees and thus clients.

Deb Farnworth-Wood is the founder and Managing Director of the Australian Skin Clinics franchise. She is an MBA graduate with incredible vision and passion for the aesthetics industry. While she has 20+ years’ experience in the management of large, complex and multidisciplinary health care organisations, she also has significant experience in the multi-outlet retail sector.

Founded on the Gold Coast in 1996, Australian Skin Clinics is one of Australia’s original laser and skin rejuvenation clinics. Launched in 2011, the franchise company has achieved rapid expansion due to its successful business model and growing consumer demand for its services. Australian Skin Clinics’ mission is to make its customer’s look and feel fantastic about themselves.

If you would like to learn more about becoming a successful franchise business owner please visit: W: www.ozskin.com/franchise

Business Franchise Australia and New Zealand 45

FE ATURE: H ealth, Fitness & B eau t y

“A modern franchise business will understand that brand image and reputation is just as important as the high quality goods or services it provides to the market.”

FE ATURE: H ealth, Fitness & B eau t y

H y pox i

WELCOME TO THE FUTURE HYPOXI Australia launched its first studio in Sydney, Australia in 2005 and health and image conscious Australians quickly embraced the concept. The HYPOXI network has since grown to 84 studios across the country, and HYPOXI Australia is proud to celebrate its 10 year anniversary this year.

In 2012, Goodlife Health Clubs, one of Australia’s largest and most successful full service health club chains, piloted an in-club HYPOXI studio to offer a premium, targeted weight loss service to its members.

Based on the success of that first studio, Goodlife developed an in-club studio concept and through its parent company, the ASX listed Ardent Leisure Group, acquired the exclusive distribution rights for HYPOXI in Australia and New Zealand.

HYPOXI Australia now oversees and is looking to grow the national network of HYPOXI studios with strong independently owned franchised studios.

TARGETED FAT BURNING Developed by esteemed Austrian sports scientist, Dr. Norbert Egger, a pioneer in the use of weight loss and compression technology, HYPOXI is a globally

proven and trusted exercise and targeted weight loss method. Since launching in the European market in 1997, HYPOXI has helped people fine tune their bodies, expanding its presence to more than 50 countries.

HYPOXI combines low impact exercise, healthy nutrition and vacuum and compression therapy to target stubborn fat in problem areas. Scientific studies have proven HYPOXI to be up to 3 times more effective than traditional exercise at targeted fat burning.

A one on one experience, clients undergo an initial consultation and assessment and are introduced to the technology. Based on a number of factors such as age, fitness level, skin tone and texture, muscle density etc a personalised programme, incorporating 30 minute treatment sessions, is prescribed based on the client’s core problem areas.

Completing on average, a four week programme, with 12 dual sessions, clients can lose a dress or pant size in the core area targeted.

JOIN THE GROWING NETWORK Under Ardent’s ownership and investment in the brand, the HYPOXI network has experienced a phase of rapid growth, cementing the brand’s presence as a leader in the targeted weight loss sector.

Franchisees are considered to be business partners and must possess a passion and genuine desire to help people. No formal qualifications from the health and beauty industry are required as all business and HYPOXI product training is provided.

Franchisees come from a variety of professional backgrounds.

46 Business Franchise Australia and New Zealand

Each franchisee’s journey is individually tailored to them, dependent upon their background, experience and whether or not they have previously owned a business.

All prospective franchisees, if they haven’t already, are encouraged to undergo their own HYPOXI journey because seeing first-hand how the technology works and developing that belief in the technology is an essential part of the process. By undergoing their own HYPOXI journey, each franchisee has their own story to share when they open their studio.

There are two different franchise options available, a studio within a fitness centre or clinic or a standalone HYPOXI studio.

A standard HYPOXI studio concept which typically consists of 3 HYPOXI devices as a starting point, appeals to many prospective franchisees because it’s low on staff overheads as the owner/operator can operate the business on their own.

GOING STATESIDE Due to the success of the Australian network, Goodlife now holds the exclusive distribution and franchise rights to North America and Canada, and is taking its HYPOXI studio concept to the USA. HYPOXI USA will open its first two studios in Scottsdale and Phoenix, Arizona in October 2015, with plans to then launch its HYPOXI franchise concept nationwide. In addition to independent franchise operators, HYPOXI USA will target health club chains who are looking to add a premium point of difference or convert underutilised club floor space into a profitable studio.

For more information contact: www.hypoxi.com.au/start-a-franchise

Give yourself the technological advantage and invest in a globally recognised brand and studio concept. The HYPOXI-Method combines low impact exercise with advanced technology and healthy nutrition to target stubborn areas. HYPOXI is a simple, low cost, low staff business model that delivers strong revenue opportunities for franchisees and measurable results for clients.

HYPOXI.COM.AU/START-A-FRANCHISE Business Franchise Australia and New Zealand 47

FE ATURE: H ealth, Fitness & B eau t y

Just Cu ts™

JUST A GREAT STORY It’s been a busy year for Just Cuts™ - along with celebrating our 25th anniversary in the franchising business and the second birthday of our exclusive haircare and styling range, JUSTICE Professional™, we’ve just cut the Grand Opening ribbon on our 12th new salon for the year. And that’s not including any of our salon refurbishments. But behind all the numbers is just a great story; it’s about one man with a simple idea that would change the hairdressing industry forever.

48 Business Franchise Australia and New Zealand

Just Cuts™ was the brainchild of Denis McFadden, who, back in 1982, owned a hairdressing salon with only six months until his lease ran out. Always one to make the most of every situation, he decided to run a promotion and offered all clients a “no appointment, $6 Style Cut” to boost business. The response was outstanding, and the idea of Just Cuts™ was born. The following year, the inaugural Just Cuts™ salon opened its door to the public.

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 locations

Turn your dreams into reality with Just CutsTM If you’ve ever dreamed of owning your business, look no further...At Just CutsTM, it’s all about you. We believe in making things easy, comfortable and convenient for all our Franchise Owners.

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 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.

in Australia and New Zealand now open.

That’s an average of one new salon every six weeks! Just CutsTM has grown to be the largest hairdressing company in the southern hemisphere, and we perform over 80,000 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 25 years of business.

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.

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

As a business owner, this means you don’t need to worry about how to best develop a system to ensure your customers leave satisfied. You don’t need to worry about creating training programs for your staff, 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.

We’ve tried, tested and refined this system over 25 years of business in franchising – that’s why it just works and is continuing to work, despite challenging retail conditions.

It’s no wonder why almost half of Just CutsTM Franchisees own two or more salons each.

Business Franchise Australia and New Zealand 49

FE ATURE: H ealth, Fitness & B feature eau t y

“At Just CutsTM, it’s all about you. We believe in making things easy, comfortable and convenient for all our Franchise Owners.”

FE ATURE: H ealth, Fitness & B eau t y

Just Cu ts™

“I opened my first Just Cuts™ franchise six years ago and it’s been so successful that I now own eight salons! I was previously a Stylist, but decided to stop cutting so that I could spend more time with my wife and children. I’ve never had a better work/life balance and now I work when it suits me!

The Just Cuts™ head office Academy Team give me all the support I need and my 60 Stylists are great. I enjoy working with my team and running my own business is truly rewarding.”

- Oliver Adams, Owner of 8 JUST CUTS™ salons in Australia

“Just CutsTM has grown to be the largest hairdressing company in the southern hemisphere, and we perform over 80,000 Style Cuts™ cuts each week.”

JUST SOME OF THE BENEFITS OF OWNING A JUST CUTSTM SALON • Enjoy the stability of fixed franchise fees • Become a part of an established homegrown brand with greater brand public awareness • Share a common pool of resources, ideas and information • Benefit from shared marketing costs • Increased flexibility and work/life balance • Grow your salon by tapping into an existing network of suppliers, Clients and contacts • Combine security with independence

50 Business Franchise Australia and New Zealand

• 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.

Want to find out what Just CutsTM can do for you? Just contact our Business Development Manager, Luke Manning, for a friendly, obligation-free chat today.

P: 0439 130 499 W: justcuts.com/franchising Follow Just Cuts Franchising to stay up-to-date with the latest Just CutsTM corporate news.

Resources at your fingertips!

Current titles include: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGB’s website also provides an additional advertising and information format and complements our publications.

www.businessfranchiseaustralia.com.au

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

g n i s i t r e v d A ON A LEVEL PLAYING FIELD In an industry accustomed to pushing the limits to be healthier, fitter and faster, it might also be tempting to stretch the truth in advertising to win new customers.

However, recent actions by the Australian Competition and Consumer Commission show this strategy is fraught with danger if you can’t back up your claims.

Under the Australian Consumer Law it is illegal for a business to engage in conduct that misleads or deceives consumers, or which is likely to do so. It’s also unlawful for a business to make false or misleading claims about their goods or services.

Advertising and franchising Usually franchisees contribute to a marketing fund, with the franchisor taking responsibility for designing and implementing promotional campaigns.

That said, it’s still important that franchisees also know where they stand, since the law applies to all promotional activities–including your own. The law extends to everyday consumer interactions like displaying prices, social media, online reviews as well as things you and your staff promise to customers.

“Think about the overall impression created by your advertising. How would the average consumer view your headline claims?”

Fair game Rules around honest advertising are important for two reasons. Clear and accurate advertising allows consumers to make informed purchasing decisions, which is especially important when it comes to health and well-being. Truthful advertising also improves competition by giving businesses the opportunity to compete on their merits, not by cheating. The ACCC has taken a string of actions to ensure these objectives are realised in the health and fitness industry.

‘No Contracts’ We have warned gyms about using the phrase ‘No Contracts’ in advertising where consumers were required to sign membership contracts with conditions for termination and payment. We found ‘No Contracts’ advertising is an attempt by some gyms to distinguish their shortterm membership from gyms which offer long-term memberships. However, using the phrase does not provide consumers with clarity about this distinction. The lesson here is to think about the overall impression created by your advertising.

52 Business Franchise Australia and New Zealand

How would the average consumer view your headline claims? Have you left out or hidden important details in the fine print?

Are there any contradictory statements or unnecessary jargon? Do logos, symbols and pictures create the wrong impression?

Walk the talk In 2014, the Federal Court ordered Reebok Australia Pty Ltd to pay a penalty of $350,000 for making false and misleading representations about the benefits of Reebok EasyTone shoes. The court found Reebok’s claims that wearing a pair of EasyTone shoes would increase the strength and muscle tone of a person’s calves, thighs and buttocks more than traditional walking shoes were false and misleading.

If you make claims that your products have certain performance characteristics and benefits, you have a responsibility to ensure those statements are accurate and supported by credible evidence.

Ab crunch Here’s another example. Danoz Direct Pty Ltd recently acknowledged the ACCC’s concerns about possible misleading claims

Dr Michael Schaper | Deputy Chairman ACCC

made during infomercials for the Abtronic X2. The Abtronic X2 is designed to be strapped around a person’s mid-section, providing electrical stimulation to the muscles. Danoz made claims about weight loss and fitness benefits of the device which it could not substantiate. For example, Danoz claimed use of the device without any other exercise or dietary modifications, will tighten, tone, sculpt and flatten the stomach. To resolve concerns, Danoz has provided undertakings to improve procedures and ensure they can substantiate claims. The outcome is reminder for all businesses to put in place stringent systems to vet and approve promotions.

Skewed reviews Another key thing to know is that the same rules apply online as they do offline. It’s an area of growing importance as e-commerce and online consumer reviews take on more significance. Recently, Citymove Pty Ltd paid $30,600 after the ACCC issued three infringement notices relating to allegations that the removalist company used fabricated customer identities to post testimonials on Google+ and YouTube. The laws also apply to your firm’s social media activities. Using social media such as Facebook, Twitter and YouTube as promotional tools brings with it the responsibility to ensure all content on your pages is accurate, irrespective of who put it there.

Skinny on the facts The laws around misleading claims also protect franchisees. The ACCC took court action against SensaSlim and the individuals involved in supplying an oral spray which they claimed could cause weight loss and was the subject of a ‘worldwide clinical trial’. The spray was distributed through franchisees to be onsold to consumers through retail outlets.

The Federal Court found that SensaSlim

(in liquidation) engaged in misleading or deceptive conduct by making false claims about the role of its officers, the ‘worldwide clinical trial’ and the earning potential of franchises. Misleading claims about important aspects of a business opportunity such as earnings can cause significant harm.

Penalties The ACCC has a range of tools to take action against false or misleading claims.

We have the powers to require businesses to substantiate their claims and the ability to issue infringement notices. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws. Infringement notices carry a penalty fixed at $10,800 for a corporation (or $108,000 for a listed corporation) and $2160 for an individual. The ACCC can also resolve matters by accepting court enforceable undertakings and we can seek penalties in the courts of up to $1.1 million per contravention.

Further information For information about the Australian Consumer Law and advertising and selling download a copy of the ACCC’s free guidelines at http://www.accc.gov.au/ publications/advertising-selling For the latest ACCC small business news and events you can follow the ACCC on LinkedIn, or sign up to our Franchising Information Network email updates at http://www.accc.gov.au/media/ subscriptions/franchising-informationnetwork Dr Michael Schaper is Deputy Chair of the Australian Competition and Consumer Commission.

W: www.accc.gov.au/franchising

The rules around franchise marketing funds If you contribute money to a marketing or cooperative fund, the franchisor can only spend the marketing fund money on: • expenses that were set out in the disclosure document; • legitimate marketing or advertising expenses; • expenses that have been agreed to by a majority of franchisees; and • administering and auditing the fund.

The franchisor must prepare an annual financial statement of all the fund’s receipts and expenses for the last financial year, and do so within four months of the end of its financial year. The statement must provide meaningful information about who contributes to the fund and how the money is spent.

The statement must be audited, unless 75 per cent of franchisees who contribute to the fund vote that an audit is not required.

The vote must be revisited every year.

The franchisor must provide you with the financial statement and auditor’s report (if required) within 30 days after their preparation.

When buying into a franchise, it’s a good idea to find out whether you will be able to sell your goods or services online.

If you can, will the franchisor impose any conditions? Can the franchisor, its associate, or other franchisees also sell goods or services online? If so, to what extent will the franchisor supply those goods or services in your territory?

This information must be set out in your disclosure document.

Business Franchise Australia and New Zealand 53

FE ATURE: H ealth, Fitness & B eau t y

“Misleading claims about important aspects of a business opportunity such as earnings can cause significant harm.”

FE AT U R E: H ealth, Fitness & B eau t y

B od y O log y

THE LEADERS IN INNOVATION Gwendoline McCracken, a pioneer within Australian franchising, recognised that the cutting edge technology now used by BodyOlogy Franchising was innovative and unique.

While operating her successful chain of eyelash stores – which she has since sold – Gwendoline started to import weight loss products from Europe and quickly identified a growing market within Australia and world-wide. In 2010, she started to investigate the different technologies available to aid weight-loss and discovered advanced Medical Grade micro-current technology. Developed in the US, with over 100 world class patents and designed for weight loss solutions, she requested a sample. Within three months of receiving and testing the sample, Gwendoline contacted the company and purchased the worldwide rights. Using her well-honed business skills and franchising experience, Gwendoline, over the last three years, has developed the systems and procedures to roll out this exciting franchise opportunity.

ON A MISSION Gwendoline says, “At BodyOlogy Franchising, we are on a mission, to smash the old myth that you can’t spot reduce.

This technology blows people away.

“We can spot reduce by 2 - 8 cms in targeted areas. Helping post-natal women to shift fluid, reduce belly bulge in men, or even university students short on time, there is no limit to the number of clients we can work with, all of whom want to build lean

muscle and re-shape their body, without lifting a weight!.“ Losing on average 8 – 10 kilos - sometimes more - and in conjunction with the micro-current technology, on a 10 week programme BodyOlogy Franchising offers clients meal replacements that have been researched and developed to work in conjunction with the micro-current technology.

FLEXIBILITY AND CHOICE The BodyOlogy franchise is for born leaders who know who they are, where they are going and what they want!!

Offering a selection of franchise options, franchisees can work from home, sublet within an existing business, have a standalone clinic, use a pop up kiosk or go mobile in your own company branded vehicle.

With limited franchisees being selected per state capital, this allows you to purchase multiple franchises if you choose. In the six weeks since the release of the franchise, three territories have been sold, to join the flagship outlet at Docklands, Melbourne.

Gwendoline says, “By restricting the number of franchisees per state, this will allow the franchisees to really grow their businesses and by the close of 2016 we expect to have 40+ on board in Australia.

“We have already been receiving enquiries from the UK, and now that our trademark is in place, we are expecting that our first UK franchise will be in early 2016.”

TRAINING AND SUPPORT Although the new franchisees in Australia do have a medical background – two nurses and a doctor – no medical experience is required. With comprehensive training in place, as long as potential franchisees have common sense and great customer service skills, it will only be a matter of

54 Business Franchise Australia and New Zealand

Gwendoline McCracken

time before you would reap the rewards of working within your very own business.

BodyOlogy do not charge a marketing levy, they simply charge a set royalty fee of 25 per cent. This means franchisees keep 75 per cent of the profits, all while the National Support Office takes away the day-to-day administration and running of the business.

With the National Support Office processing all enquiries, bookings, schedules, reporting, Main Stream Marketing and product training plus much more, BodyOlogy franchisees can focus on their business and clients. Flights and accommodation is included for interstate franchisees.

BodyOlogy’s experience has taken the science of weight loss to new levels of effectiveness, with clinically proven methods that gain real results, for real people, in real time.

With a reduced start-up cost of $59,000 plus GST for a limited time, now is the perfect time to join this marvel of modern science. For more information contact Gwendoline on: P: 0438 245 555 E: info@bodyologyfranchising.com.au W: www.bodyologyfranchising.com.au

Franchising

A marvel of modern science

ENTRY FROM $59K for a limited time

Offering Flexibility & Choices Join the $6.6 billion weight loss industry in OZ GO MOBILE

HOME BUSINESS

SUBLET WITHIN A BUSINESS

POP UP KIOSK

BodyOlogy franchising is innovative and unique!

Using exclusive cutting edge technology, BodyOlogy has revolutionised the weight loss industry and myths attached to it about spot reduction and building lean muscle without weights, as we can do this and much more.

FRANCHISES NOW RELEASED AUSTRALIA WIDE ENQUIRE NOW 1300 FABABS (1300 322 227) OR 0438 245 555 XXX CPEZPMPHZGSBODIJTJOH DPN BV t JOGP!CPEZPMPHZGSBODIJTJOH DPN BV Business Franchise Australia and New Zealand 55

FE ATURE: H ealth, Fitness & B eau t y

H ave Your Say

HELPING YOU

r e t t e Feel B

56 Business 56 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand

My sister Jacinta McDonell & I, with our business partner Richard Peil, launched the highly successful U.S. franchise Anytime Fitness into Australia in 2008. IBIS World report recently ranked Anytime Fitness as the largest health club chain in Australia with over 410 locations currently open and still growing.

Since Anytime Fitness’s launch into Australia, it has become the quickest growing segment of the world’s fastest growing fitness chain. Globally there are over 2500 locations and 2.5 million members.

Not a bad result for a business that opened its first franchise in the New South Wales country town of Gunnedah in 2008, population 7888.

We chose Gunnedah as a test location for the network because the site fit the global business model – it was located next to a supermarket. The rent was also low, allowing a relatively risk-free first foray into the market. Just two months later, we opened a second gym in Wodonga on the New South Wales/Victorian border.

Jacinta and I grew up in the fitness industry, with our parents running clubs when we were young. We opened our first club straight after school and have been in the industry since 1992, so this experience is what really cemented the path to our success with Anytime Fitness Australia.

When Jacinta and I were considering taking the Master Franchise opportunity for Australia, we looked at two different gym franchises that were already successful in the United States and also considered going it alone. After a lot of research and consideration, the benefits of being able to

access the Anytime Fitness infrastructure, marketing and I.T. support, as well as the name, convinced us to go ahead with the agreement.

Since launching Anytime Fitness into Australia we’ve seen the brand go from strength to strength. Proof of this is demonstrated by Anytime Fitness ranking No. 1 on Entrepreneur magazine’s annual Top Global Franchise list this year.

Averaging more than 300 new gyms a year for each of the past eight years, Anytime Fitness will soon open its 3,000th franchised unit – in less years (13) than it took other franchising companies like McDonald’s, Subway, 7-Eleven and Pizza Hut to reach that same milestone.

Both the 24/7 gym concept and business model was unique to the industry and the Australian market at the time of us signing the Master Franchise agreement.

Typically the industry was dominated by larger chains that had everything from juice bars, group exercise classes and crèches.

Anytime Fitness gyms provide members access at any hour, with 24 hour entry, state-of-the-art equipment and top notch facilities 24/7. Local franchisees also offer communities an exceptional product at an exceptional price with the added benefit of convenience; clubs are located near to home to make exercise easier for members.

Trained staff or franchisees are available during normal trading hours to provide assistance in using the equipment and working with members to identify and achieve their goals. After hours, members can access the gym safely and securely by using their key card. The franchisee can then monitor the gym from anywhere - the Anytime Fitness franchise model was built around the concept of freedom. Anytime Fitness franchisees can run multiple clubs remotely and require low labour, providing them with more free time and a balanced lifestyle. Anytime Fitness’ monthly franchise fees are also low and fixed which allows franchisees to benefit from their own business’ growth.

We give franchisees support acquiring property or signing a lease and they also have access to an in-house architect and the business’s support team of 45 people, as

well as ongoing coaching.

This business model allows flexibility and autonomy to the clients who use the gym, as well as to the franchisees who own the gym.

Keys to success Our business has provided a solution to health conscious Australians.

We set big goals to grow our network quickly and dominate the market in which we operate. We knew we needed to run fast to do this, so we reached for the stars.

As to how the business has managed to sustain such stellar growth since it launched, many franchisees own multiple franchises – the top franchisee has ten gyms – which has helped drive expansion.

Growth has come from our internal networks and through referrals from existing franchisees. When selecting potential franchisees, we look for a passion for health and fitness, good business acumen or previous sales and marketing experience.

If you attend our new franchisee training sessions, you’ll find accountants and personal trainers as well as people who have been involved with other franchises that are attracted to the low-staffing model.

We are driven by technology, understanding our members and our consumers and ensuring we keep evolving and keeping our products and service offerings fresh because we’re very conscious that the product needs to keep evolving and be around long term.

Anytime Fitness Australia will continue to offer an exceptional product in convenient locations, allowing easier access for members to achieve their health and fitness goals. We plan to continue to expand our already extensive club network, with more new club openings scheduled in all states throughout the rest of the year.

Open 24 hours a day, 365 days a year, Anytime Fitness prides itself on providing members with convenient and affordable fitness options in friendly facilities which feature top-quality exercise equipment.

Justin and Jacinta McDonell grew up in the fitness industry, with their parents running clubs when they were young and opened their first club straight from school.

This experience cemented the path to such success with the Anytime Fitness franchise. www.anytimefitness.com.au/franchiseopportunities

Business Franchise Australia and New Zealand 57

FE ATURE: H ealth, Fitness & B eau t y

“Anytime Fitness Australia will continue to offer an exceptional product in convenient locations, allowing easier access for members to achieve their health and fitness goals.”

FE ATURE: H ealth, Fitness & B eau t y

B ra zilia n B u t ter f l y

THE METAMORPHIS OF BRAZILIAN BUTTERFLY to work 24/7 and prefer the elusive work/ life balance, Brazilian Butterfly is not a ‘cookie-cutter’ franchise.

Adam says, “We’ve completely modified the way we do business. Offering vendor finance; we have a number of different partnership models - it depends on the individual franchisee. It’s about them and their particular circumstances, what they are looking for and how we can create a legitimate partnership. We provide assistance for everything - from finance, operational support, marketing, social media, design as well as much more.”

In the role of CEO for 12 months, Adam Simon and his team, in collaboration with the board of directors and founders Scott and Tanya Farrar, are tasked with transforming the brand, taking franchise system Brazilian Butterfly into the future.

With more than 20 years’ global experience across sales, franchising, human resource management and finance, Adam’s immediate responsibility has been to foster a National Support Office culture, and transition from simple Head Office into a National Support Office; redevising the way the departments interact and hiring key personnel specifically for the task at hand.

Adam says, “Moving away from having people that traditionally have been wearing multiple hats; we’ve hired specialists to work within the National Support Office to fundamentally support our franchisees in what they want to achieve.”

FUTURE GROWTH With 33 salons nationwide, Brazilian Butterfly are focusing on interstate growth as well as regional Victoria.

Recognising the landscape is changing in franchising, the business is moving and moulding on a daily basis. Attracting over 40,000 new clients a year nationally, “We are making informed decisions about how we move forward, in a way that’s going to benefit the whole brand as one as opposed to one individual above another,” Adam states.

In the 12th year of franchising, Adam says that they only progress a small number of their enquiries through to the application stage. “It’s extremely important that we partner with the right people that are customer service focused and not just interested in the significant profits that the brand achieves”.

OWN YOUR OWN BRAZILIAN BUTTERFLY SALON

“Our franchisees come from all walks of life. We have accountants, sales managers, beauty therapists and everything in between. The one thing that’s pivotal to our success within all our salons is that the franchisees are customer service focused; we can teach them how to run a business, we can teach them how to wax but we can’t teach them to be focused on the end user, which is the fee paying client.”

By joining one of Australia’s largest and most successful beauty salon franchise groups, you have access to the Brazilian Butterfly professionals who can advise you every step of your journey, you just have to be committed, driven, customer service focussed, passionate, and have the desire to succeed.

Dedicated to growing the number of franchise salons; Brazilian Butterfly offer a number of different models. While some franchisees prefer to work within the salon all day, every day they are open, some franchise partners prefer the hands-off approach and install management. Aware that not all franchisees get into business

58 Business Franchise Australia and New Zealand

Brazilian Butterfly can give you all the tools and support you need to be your own boss.

If you’re serious about a new start, join Adam and his team on their exciting journey into the future.

For more information contact: T: (03) 9756 9700 E: franchise@brazilianbutterfly.com W: brazilianbutterfly.com

SMOOTH OPERATORS WANTED! Be your own boss with Brazilian Butterfly, Australia’s favourite & most successful beauty network.

Find out more today! brazilianbutterfly.com/franchise Business Franchise Australia and New Zealand 59

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

t r a t S Kick your workplace relations routine It is easy to put off starting a new health kick despite good intentions. We all know that following through with our goals can be tough, particularly if you don’t know where to start.

laws, but sometimes find the process overwhelming. However, we know that the consequences of not applying a healthy regulatory regime can be disastrous. It can also have serious implications for your brand.

At the Fair Work Ombudsman we see the same - many small business owners and franchise operators have the best of intentions. They want to understand and comply with Commonwealth workplace

In our information and digital-driven world, consumers are more powerful now than ever. Social media has enhanced our capacity to inform ourselves about our choices, of which there is no shortage.

60 Business Franchise Australia and New Zealand

As a franchisee the reputation of your brand is one of your most valuable commodities.

You should do everything you can to ensure that your brands positive image is maintained.

Why is this important?

FE ATURE: H ealth, Fitness & B eau t y

“Negative media coverage can result in consumers making a conscious decision to take their business elsewhere, impacting your bottom line.”

Lynda McAlary-Smith | Executive Director of Proactive Compliance and Education Fair Work Ombudsman

Unfortunately not all publicity is good publicity. Negative media coverage can result in consumers making a conscious decision to take their business elsewhere, impacting your bottom line.

It is important to protect the reputation of your brand, and to position your business as an employer of choice. This will help you to ensure that this doesn’t occur.

What steps can you take?

The last thing you want to see is your brand in the media for the wrong reasons.

One way to protect yourself from this is to put in the time and effort to ensure that compliance with workplace obligations is the norm in your franchise business and not the exception.

As a member of the franchisee community it is important that you take a best practice approach in regards to your workplace relations obligations. Doing so will allow you to set an example that can be followed by others in your franchisee network and will help you to position yourself as an employer of choice.

Further, both you and your franchisor can play a major role within the industry in setting the competitive and lawful employment conditions for employers at the smaller end of the industry structure. This is particularly important as these smaller businesses often do not have access to a head office for support and guidance.

To ensure that you are compliant you first need to know what your workplace obligations are. You need to: • Know the correct rates of pay for your

staff and if penalty rates and overtime are payable; • Be aware of what employment records need to be kept and make sure that they are up to date and accurate; • Understand what leave and breaks your employees are entitled to and ensure that they receive them; and • Know how to end an employment relationship and what, if anything, your employees might be entitled to if you do.

Once you have this information, you should openly discuss with your staff what this means for them. Creating a well-informed workforce can help to increase employee engagement and reduce the likelihood of workplace disputes. This is because your employees will feel comfortable discussing their entitlements directly with you.

By putting time and energy into your workplace relations obligations, you are not only investing in good relationships with your staff, but also giving your business the best chance for success. If you are aware that others within your franchisee network aren’t complying then you should let your franchisor know.

Reputational harm damages all the players in your franchise space including your franchisor, so at the Fair Work Ombudsman we expect them to take an active role in ensuring compliance across their franchisees and the industry.

How can the Fair Work Ombudsman help you?

At the Fair Work Ombudsman, we know that there is a lot you need to understand

and consider when operating a franchise business. However, we also know that making sure your business is compliant with workplace laws may not always appear to be a high priority. However, by not factoring in the correct entitlements into your business model you run the risk of facing unexpected wages costs that can sometimes be staggering for small business.

To put this into context, between July 2010 and April 2015, the Fair Work Ombudsman recovered over $2.2 million for 1700 workers within the Hair and Beauty industry.

To assist you with starting your new routine and to make compliance easier, we have developed a number of tools and resources designed to assist you and the significant number of employees employed within franchise businesses.

Pay and Conditions Tool (PACT) PACT, our pay and conditions tool is designed to give you access to reliable advice on wages and entitlements on-thego. It can help you to locate the correct Modern Award for an employee’s position and quickly determine what wages apply, including overtime, penalty rates and allowances. The tool can also be used to assist with the calculation of apprentice and trainee rates of pay.

In addition to wages, the PACT can also help you with calculating an employee’s entitlement to annual and sick leave as well as notice and redundancy.

You can access PACT from the Fair Work Ombudsman website at: www.fairwork.gov.au/pact.

Business Franchise Australia and New Zealand 61

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

“As a member of the franchisee community it is important that you take a best practice approach in regards to your workplace relations obligations…to position yourself as an employer of choice’”

These courses have been designed to provide you with practical advice and assistance on core workplace topics including managing difficult conversations, hiring employees and managing performance. We have also developed an online course called ‘Starting a new job’ that will help your young employees understand their rights and obligations in the workplace.

To access our online training, go to www.fairwork.gov.au/learning.

Workplace Basics Our Workplace Basics quiz contains seven modules designed to test your knowledge about everyday workplace issues including pay and awards, leave, record keeping and termination. At the end of each module, you’ll be provided with a customised list of links to relevant resources and information.

The Workplace Basics quiz can be accessed at www.fairwork.gov.au/basicsquiz.

Why not take the test and see if you are achieving your goals of being a proactive, fully compliant franchise operator.

Where can you get further assistance?

If you do need further assistance understanding your rights and obligations under the Fair Work Act, you can contact us via www.fairwork.gov.au or during business hours on 13 13 94. You should also speak to your franchisor to discuss the type of support that they can offer to ensure that you are well prepared to meet the demands of your business and your obligations to your workers.

My account My account allows you to create your own personalised account within the Fair Work Ombudsman’s website. By registering for My account you can get priority support from the Fair Work Ombudsman. You can also save results from PACT, bookmark your favourite pages, ask questions and save our replies.

When you register, you will be asked

to provide information about yourself including your industry. This information allows us to tailor information for you.

To create a My account, go to www.fairwork.gov.au.

Online training One of our most popular resources is our online learning centre, which contains free and interactive courses for employers, employees, supervisors and managers.

Lynda McAlary-Smith is the Fair Work Ombudsman’s Executive Director of Proactive Compliance and Education.

Lynda’s branch is responsible for proactively assisting Australian workplaces and educating them about their workplace rights and obligations.

The Fair Work Ombudsman is an independent statutory office responsible for ensuring compliance with Australia’s workplace laws and promoting harmonious, productive and cooperative workplace relations.

T: 13 13 94 W: www.fairwork.gov.au

62 Business Franchise Australia and New Zealand

Fran

Franshise_Ad_185X272_OL.indd 1

31/07/2015 5:15 pm

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

- by Ca m e ro n C o o p e r

How to navigate your franchise options and hit the road to

s s e c c u S

Two former corporate executives share their experiences about evaluating and investing in a franchise system – and they outline some lessons that have helped them flourish.

A lot has to go right for a franchise business to succeed. The right industry. The right time. The right city. The right people.

In Australia, where franchising is omnipresent, choosing a target market can be a make-or-break exercise for potential franchisees. Silvio Del Vecchio understands the gravity of the decision and can rest easily in the knowledge that he got it right.

As franchise owner of Laser Clinics Australia clinics at Erina Fair on the

“The thing that I love about this business is that people come in, they have their treatments and leave feeling good about themselves. And that makes me feel happy as a business owner.”

- Micky Bittoun

64 Business Franchise Australia and New Zealand

Del Vecchio is achieving those goals with Laser Clinics Australia, a franchise that since its launch in 2008 has grown into a 50 plus clinic operation that made the BRW Fast 100 list in 2014, and placed 1st in the BRW Fast Franchise 2013 rankings.

“I love having my own business and feeling like I am in control of my own destiny,” Del Vecchio says. “I work harder today than I’ve ever worked and I love to challenge my own boundaries – to keep testing new ideas, to keep learning, to keep growing as a person.”

Del Vecchio says the experience of running his first clinic at Erina Fair, which opened in 2011, has been instrumental in an even smoother ride for the Charlestown Square clinic, which opened a year later.

“There were a fair few mistakes made the first time, which of course we learned from and didn’t make the second time around.”

Those lessons include fine-tuning the recruitment process and allocating more of the budget for extra staff – a relatively modest expense that has driven superior customer service and repeat business.

“As with any new business to some extent I was counting my pennies,” Del Vecchio says. “I learnt that having an extra staff member actually adds to your bottom line because it frees their time up to spend more time with customers, which in turn makes people feel comfortable to make purchases.”

For wannabe franchisees considering their options, Del Vecchio advises choosing a franchisor such as Laser Clinics Australia that has robust systems and processes in place to assist with the big business issues such as recruitment, training, human resources, technology and marketing.

“It gave us a huge springboard into the efficient operation of the clinics,” Del Vecchio says.

FE ATURE: H ealth, Fitness & B eau t y

Central Coast and Charlestown Square in Newcastle, the former Macquarie Bank executive runs two thriving businesses after opting to “hop off the hamster wheel” of corporate life. Rigour in assessing his options five years ago is now paying dividends, and he recalls that a brief wishlist steeled his mind. Although he was prepared to work hard, he wanted freedom, flexibility and, most of all, to work in a sector that continually stimulated his business instincts.

Go for growth During the past seven years, Laser Clinics Australia has tapped into the booming demand in Australia for its three key service areas: laser hair removal, cosmetic injections and skin treatments.

The provision of affordable, accessible and results driven cosmetic treatments has generated significant interest from a diverse range of franchisees – from corporate executives wanting to make a career switch to couples and individuals seeking to run their own small business with the backing of a proven franchisor.

In upmarket Neutral Bay in northern Sydney, new Laser Clinics Australia franchise owner Micky Bittoun is relishing the day-to-day challenge of running a small business after opening her clinic in late August. Following a 20-year corporate career spanning executive roles with IBM, 3 and Apple, she brings a wealth of business experience to the clinic. In determining which sector to pursue, Bittoun narrowed her choice down to two preferred areas: technology led aesthetics and childcare. She also insisted on joining a business with a strong brand and track record.

Silvio Del Vecchio

“It’s incredibly important for me to be with a brand leader,” Bittoun says. “I’ve always worked for companies that have had a huge market presence.”

Finally, she wanted to enter an industry that focuses on service, not products, after being involved in stock management at Apple for high-profile products such as the iPad and iPhone.

“I was keen on a service-based business, one that I could scale up and down as I needed,” she says. “I then looked at areas that I knew would be in high demand and I started basically calling different franchises that fitted the categories I was interested in.”

By setting clear parameters, it made Bittoun’s final choice easier. She adds that it is critical for both the potential franchisee and franchisor to put each other through a rigorous assessment process. For her, that meant ensuring Laser Clinics Australia could provide the requisite back-office support, in addition to best-practice inclinic products and services.

“I have found all of that incredibly valuable and it’s made life so much easier.”

Just as significantly, according to Bittoun, Laser Clinics Australia put her “through

Micky Bittoun

the wringer” with an intensive application process that put the onus on her to check out competitors, present best-case and worst-case financial scenarios and outline possible marketing plans. With her clinic performing well, she can now reflect on the importance of that process.

“It wasn’t just about signing the paperwork and then opening a clinic,” she says. “If all the other owners are going through the same process, I have faith that the brand will stay strong.”

Cut the clutter Courtesy of his NSW clinics, Del Vecchio has years of experience in the Laser Clinics Australia fold. One of the key lessons he

Business Franchise Australia and New Zealand 65

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

- by Ca m e ro n C o o p e r

“For me, it’s about reducing the clutter and focusing on the key things that drive business success – look after your staff, look after your customers and look after yourself.” - Silvio Del Vecchio has learned – and which he advises other franchisees to take on board, regardless of the sector – is to concentrate on what is important, and what is not, for business success.

“For me, it’s about reducing the clutter and focusing on the key things that drive business success – look after your staff, look after your customers and look after yourself.”

The latter is crucial given that life as a franchisee is incredibly busy.

“This business is seven days a week… You need to build in rest and recovery because without that rest and recovery you do burn out.”

Building the right culture is also important, not only within the clinic but also more broadly throughout Laser Clinics Australia’s operations, according to Del Vecchio.

“As franchisees across different parts of the country we embody the culture of Laser Clinics Australia the corporation, but at the same time we also create and foster our own culture at a local level,” he says.

“For me, it’s one of care and love and family and looking after each other.”

Enjoy the rewards As she welcomes a steady flow of customers into her Neutral Bay clinic, Bittoun can vouch for the value of nine months’ of due diligence and business planning that went into her decision to join Laser Clinics Australia.

While the commitment is significant in terms of up-front investment and hours on the job, the mother-of-two appreciates the work-life balance that running her own business offers. She now has the ability to better manage work and a vast array of family duties such as getting her children to soccer on time.

“I wanted a bit of flexibility with the hours I work, but also I was a bit over making other people a lot of money and wanted to make some money for myself for a change – and

it’s absolutely possible to do that with Laser Clinics Australia.”

Bittoun is enjoying the chance to use her considerable business skills and interact with her team and customers.

“The thing that I love about this business is that people come in, they have their treatments and leave feeling good about themselves. And that makes me feel happy as a business owner.”

For Del Vecchio, his background in the financial services sector meant he was well-equipped to ask the right questions and calculate the risks and returns of his investment in the Erina and Charlestown clinics. Nevertheless, he says franchisees

66 Business Franchise Australia and New Zealand

still have to trust their instincts.

“At the end of the day you still need to pull the trigger and sometimes, when it comes to the crunch, it’s gut feel that overrides all of the analysis.”

LCA first opened in 2008, and has since established a dominant position in the cosmetic clinic market. They have carved a new niche, creating an exceptionally strong brand and large customer base through the supply of affordable, accessible and reliable cosmetic treatments.

For more information contact: E: franchising@laserclinics.com.au W: www.laserclinics.com.au/franchising