INTRODUCING STEVE STONEHOUSE NATIONAL SNAPON NEW FRANCHISEE OF THE YEAR 2023
DRIVING TO SUCCESS THE POWER OF MOBILE MARKETING
TERRITORIES FOR SERVICE FRANCHISES MATTERS TO BE CONSIDERED IN RELATION TO MOBILE FRANCHISES
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System, that:
- Stores digital Operational resources (operations manual, Training resources)
- Enables the franchisor to complete compliance audits.
-Creates financial and operational scorecards.
-A process builder to develop additional and customised processes.
-A full learning management system (LMS) executives.
(franchisees and corporate stores) planning
34 Snap-On Tools
Introducing Steve Stonehouse National Snap-on New Franchisee of the Year 2023
42 Xpresso Mobile Café
Petbarn Mobile Dog Wash Appliance Tagging Services
Snapshot
46 Hydraulink: Hydraulink trendsetter doubles his commitment to service excellence with new Bayside Brisbane franchise
40 Pack & Send:
Transforming Franchise Partners in New Zealand
36 Robert Toth: On the Road Again
44 Lauren Clemett:
Driving to Success - The Power of Mobile Marketing
48 Peter Buckingham: Territories for Service Franchises
50 Stewart Germann: Matters to be Considered in Relation to Mobile Franchises
Within the Australia and New Zealand branch of the Snapon family, a robust network of over 185 franchisees brings the company’s top-tier products and exemplary customer service standards to local communities.
Within this community of franchisees, Steve Stonehouse, owner of the Geelong North franchise, was recognised for his commitment to Snap-on and his successes within his first year of franchise ownership. This saw him earn the prestigious New Franchisee of the Year award, collecting the accolade at the annual Snap-on Franchisee Conference, which took place on the Sunshine Coast in January.
With a long list of loyal customers and a significant foothold within the North Geelong community, one could be forgiven for mistaking Steve Stonehouse for a seasoned veteran of the automotive industry. However, Steve’s arrival at Snap-on in 2023 marked a drastic change to his otherwise linear career path.
A family who “settled down quite young”, Steve took his first steps into the working world at the age of 15 as a supermarket trolley boy, before working his way “up through the ranks in various sales roles”.
Decades in the corporate world saw Steve earn status as the Area Manager of Woolworths, before really finding his feet at Rhino Racks as the General Manager of their commercial divisions.
However, growing weary of the corporate world, Steve was “on the lookout for a change of pace”, and following the sale of Rhino
Racks at the peak of the Covid pandemic, an enticing new opportunity at Snap-on arose.
After accumulating a toolkit “full of sales experience, business acumen, and product management skills”, it was time for Steve to set aside his corporate life and follow his passion for the automotive industry with a familiar company.
“Cars and bikes have always been my passion, so I was exposed to the Snap-on brand and its quality for decades”.
Therefore, when the chance to acquire his local North Geelong franchise arose, putting an end to “relentless travel back and forth to offices in Melbourne”, Steve jumped at the opportunity.
“It put me in charge of my own destiny in an industry I love. That’s why the Snap-on brand was the perfect fit”.
While the switch from office to tool truck
may appear abrupt, Steve experienced a relatively smooth transition, owing to his “30 years of sales experience, existing knowledge of Snap-on, and the fantastic support on offer”.
Following a transformative stint in Dallas, Texas, “learning the Snap-on lingo and the Snap-on way”, Steve was ready to turn his love for all things automotive into a fruitful career. And one year on, he’s never looked back.
So, why has Steve been so successful in his first year of franchise ownership? Well, he refuses to accept full responsibility, instead attributing his success to the brand itself.
“My success is a testament to the brand. I just follow the advice to the letter. So, it’s not just my success, really”.
Acutely aware of the significance of his career change, Steve made “a conscious effort to live and breathe the process and the program
from day one”. In doing so, he found great enjoyment in “networking and learning from those that have already done it all before”. This devotion to the brand has proven to be the foundation of Steve’s success, and his efforts to immerse himself “in all things Snap-on, all day, every day” have seen him earn a fantastic reputation among his local community.
Consistency, respect, and positivity are hallmarks of Steve’s approach, and he believes this has helped him “establish mutual trust with the workshop owners”, turning Snap-on admirers into weekly customers, and has even earned him an invite to a wedding.
Steve has thrived on this ability to “develop relationships really quickly”, a product of his efforts to remember the names of each customer’s children, “speak to their wives and receptionists every week”, and even cater to their four-legged friends, armed with tasty treats on every visit.
Steve modestly insists it is merely his way of delivering “the full Snap-on experience in every interaction because when I do, I’m not really selling anything. They’re buying it”.
With a year of successful Snap-on franchise ownership under his belt, Steve has enjoyed a drastically different daily routine, but this has required a great deal of time and effort.
“When you learn new things in a short space of time, it’s always very exciting, but it’s time for me to take a step back and create a more sustainable work-life balance”.
Hence, the next logical step in Steve’s Snapon journey is to employ an assistant, affording Steve more time to “work on the business, not in it all the time”, focusing more of his efforts on securing big ticket items and tending to his business’s ever-expanding administrative needs.
“Don’t be scared of the outlay, it works!”
Steve’s decades-long admiration of the Snapon brand has only strengthened since his arrival, and he’s full of glowing praise for its finely-honed franchise model.
“It’s a fantastic brand and joining is simply one of the best decisions I’ve ever made”.
With a “fantastic onboarding and training process” in place to support a smooth entry into the business, and a network of fellow franchisees to learn from, Steve wholeheartedly recommends franchise ownership to those who are ready to make their mark.
“It might seem like a risk, but really, it’s not. The customers are advocates of the brand and they buy into its culture and the experience”. But what advice does Steve have for those ready to snap up the opportunity?
“Have a go, stick to the process, and don’t be scared to invest some time and money into it. It will work!”
Snap-on Tools is a leading innovator, manufacturer and marketer of highend tools, diagnostics, and equipment solutions. With an extensive range of over 22,000 products, Snap-on is committed to providing technicians and workshop owners with the vital tools required for their services.
Founded in 1920, Snap-on has experienced substantial international growth, and now boasts a global network of over 4,800 franchisees. Decades of sustained success and an esteemed brand reputation have seen Snap-on achieve numerous awards, with each highlighting the exceptional quality of both its product offerings and franchise operations.
Snap-on has some great opportunities across Australia and New Zealand for ambitious, hard-working and goal-oriented individuals.
our team on 1800 810 581 or visit
https://www.snapontools.com.au/ franchise/ for more details.
Ahh mobile franchises, the wind in your hair as you drive to your next appointment in your branded van with dog in the back… freedom from exorbitant rents and staff costs and you can work as many hours as you like… mobile franchises are a great option… or are they?
There are now a multitude of mobile franchises on the market, and these can have certain benefits over the traditional high-cost retail and fixed site business franchises in shopping strips and centers.
Clients and customers now all have an expectation that the business will come to them and fit in with their work and home schedules.
The range of mobile franchises from couriers, home maintenance, care service and repairs, and even mobile banking just keeps expanding. Now Jim’s Group can clean your gutters, install your antenna, cut your grass and give you a facial with their new Jim’s Beauty offering!
Robert Toth is Special Counsel and Franchise Specialist at Sanicki Lawyers with over 35 years of experience in franchise, licensing and distribution law.
Robert is also an Accredited Commercial Law Specialist and regularly publishes articles on franchising in Australia and overseas journals and acts for a number of overseas, local and master franchisors and acts in dispute resolution and mediations.
Contact Robert@sanickilawyers.com.au or even call him on mobile 0412
67 37 57 www.sanickilawyers.com.au
Many Franchised businesses also realised that a mobile business may be a more efficient and profitable way of doing business.
Even though there has been a return to office policy for many employees there remain a great many employees who now work flexi days and still work from home.
These customers still want their cars serviced at home, dog washed, garden mowed, house cleaned, and groceries delivered to the door.
Taking your business to the consumer’s home or office is a great way to generate work and goodwill without carrying the huge overheads of rent and staff costs of a fixed site.
Consumers want convenience and instant
gratification particularly for hardworking families with young children.
The Pros and therefore more affordable. staff as generally owner operated. on your investment.
The franchise fee is usually the biggest cost in a mobile franchise apart from the need to lease a vehicle, branding and equipment costs. A mobile franchise can cost as little as $30,000 and up to $100,000 to establish. This means you don’t need to go the bank and borrow on the security of your home, which has become more difficult with tighter lending criteria by the banks.
With a fixed site retail franchise the franchise fee is usually the lowest cost and by the time you add stock and shop fit out, bank guarantees on a lease, staff costs, insurance and the need for working capital the investment can be upwards of $300,000 and up to $1 million.
The Cons
Its not all “salad days” wind in your hair, dog in the trailer. A mobile franchise may not suit everyone. Being on the road can have its own issues and stress (just look at Melbourne traffic!)
Even though a mobile franchise has less upfront cost (which means less risk) that may also mean a smaller return to the franchisee and restrict the wages a franchisee can draw out depending on the revenue created. For example, with a dog wash mobile business that may generate $200,000 of revenue a year the salary that can be drawn by the operator after all costs and expenses may be limited. That may not be an issue for some people of course, due to the freedom and flexibility a mobile business can provide there is a compromise between freedom and earnings. In some cases, the franchisee can generate a very good return if they work hard and ensure they know their margin (profit) on delivery of the products and services.
Many mobile franchisors charge a fixed royalty fee such as a fixed monthly fee, rather than a royalty based on the gross turnover of the business.
This can be a positive for the franchisee if the business is successful and growing but the fixed fee can also become a debt to the franchisor, irrespective of the franchisee’s revenue.
For this reason, you need to talk to other franchisees in the system you are considering and do your own cash flow projections to see how the numbers “stack up”. You must also get independent and specialist legal and financial advice before your commit. I will say this more than once in this article “If the numbers don’t work, walk away”.
Fixed site retail franchises generally charge a royalty fee, based on the turnover of the business of between 4% to 10% of gross turnover (revenue) and a marketing or advertising fee of around 2% to 5% per cent. On top of this there may be additional IT fees and obligations to be spent on local area marketing. These costs should be set out in the Franchisors Disclosure document from which you can do your own financial due diligence and cash flow projections.
A mobile franchise may charge an up-front franchise fee of around $20,000 to $30,000, plus the cost of the vehicle and equipment, insurances and a marketing fee. The vehicle and equipment can usually be leased, thus reducing the capital outlay. These costs will also be set out in the Franchisors Disclosure document.
It should not be forgotten that a significant cost when setting up the business may be stock which needs to be funded so the working capital requirements for a fixed site franchise over the first six or twelve months of operation will be much greater than for a mobile franchise.
Some relevant questions to consider would be:
non-exclusive territory?
able to compete in your territory?
1300 number and will they refer all leads to you in your territory?
will that impact on your sales?
receive from suppliers?
to where you live – do you want to be travelling across town to service your territory?
your territory to service clients for a small fee in which case there may be little profit in each job that is outweighed by the costs.
without impacting the business if you are a sole trader?
business during the term?
Crunch the numbers!
Even though a mobile franchise has lower entry costs you should still talk to other franchisees in the system to gain feedback and do your own financial due diligence and cash flow projections with the assistance of your accountant and financial advisor. You need to factor into your cash flow projections a reasonable salary, as no one wants to work for nothing. You cannot work on the assumption there will be a profit to draw on, at the end of the year as that rarely is the case. If the numbers don’t work, then don’t commit, as mobile franchises can be difficult to sell.
You should work on the assumption that a mobile franchise will enable you to earn an income but is unlikely to deliver any great capital return at the end or when you sell. That’s just being realistic, some do, but again that is the exception not the rule. There may
be no goodwill value at the end, so you need to take funds out as you go.
You should ensure the franchisor provides adequate up-front and ongoing training and is innovative and will generate product development and provide support as you may need it.
Some franchisors are very hands off once they sign you off. It is important to ask them what sort of support they will give and who will give it. You will need to consider if they have the latest booking applications and payment systems, CRM software for ease of bookings and payment. There is really no excuse these days for outdated software.
Another important fact to consider is does the franchisor have a social media presence and who is responsible for generating these leads. In some case the Franchisor will assist in generating leads but in most cases you have to get out there an network and market and secure the leads and sales. Be sure to check if they are on Instagram and across all social media in comparison to the competition.
Most mobile franchises have a limited life span of 3 to 5 years. Therefore, you need to look at what the transfer or assignment rights and costs are and check any non-compete clauses that may restrict you from carrying on a similar business on the expiry. If things don’t go to plan it can be difficult to get out and sell a mobile franchise and you will franchise term.
The best insurance before committing to a franchise is to seek Specialist professional advice from a Specialist Franchise Lawyer and financial advisor. So, before you “get on the road” like Willie Nelson did back in the 60’s, do your analysis and get the right advice to limit your risk and make an informed decision.
Have you reached a crossroads in your life and looking to make a change for the better?
Secure your family’s future and make a difference in your community, whilst building a business in the thriving and dynamic home care industry with Right at Home.
You’ll enjoy the freedom to grow your own business, with the full support of a top quality, national, home care brand delivering domestic support, personal care, skilled nursing, and allied health services. You do not have to have previous home care or health care experience. You will employ the care and office staff that you need to deliver and organise services to the community. You will be provided with the necessary training to ensure your service is delivered at the highest standard.
The home care market is guaranteed to grow for the next 20 years. The entry costs and overheads are very low compared with most businesses.
Following rapid growth In QLD, NSW and WA, Right at Home is expanding into VIC, SA, TAS, ACT and the NT with prime territories up for grabs.
Make your dreams come true… talk to Right at Home about a home care franchise today.
•Melbourne
•Adelaide
The eCommerce market continues to grow rapidly, with more and more customers shopping online, meaning businesses must adapt to meet these expectations.
Online merchants are looking for a solution to their logistics requirements and most see shipping as a part of their business that takes up a lot of time and energy, and as a result, any partner that can reduce this effort will go a long way in winning that business. The recent launch of
– an innovative platform, designed to revolutionise franchise partnerships and customer experiences, not only sets a new standard for operational efficiency but also Limits business model.
for over 30 years and have had a presence in New Zealand since 2008. In 2021
Wordwide which has further bolstered the global scale.
George Fattal – Sales and Product Manager platform offers a unique opportunity for Franchise Partners to enter the eCommerce industry, allowing Franchise Partners to take the hassle out of shipping and logistics for their customers. The platform has seamless integrations with the major online store providers such as Shopify and Carrier Partners and a range of features and benefits that can be customised to the customer. However, the real benefit
Store Network. Customers have access to their account manager and logistics expert, as well as their physical store location for warehousing and 3PL solutions if required.”
The flexibility, scalability, and
Live can offer a customer are unique in the market, as customers will generally have to engage multiple partners to achieve a complete logistics solution, whether that is carriers, 3PL providers or even packaging suppliers.
customers in Australia since 2019, and over the years it has continually improved to ensure it is meeting the requirements of both the customers and the Franchise Partners.
Partners have been able to tap into new markets and industries that have previously been quite difficult to access. It has also allowed the Franchise Partners to grow their business customers by offering a solution that is customisable and scalable with their customer’s operations.
“Within Australia we are seeing amount of revenue for Franchise Partners.
Some locations now receive over 30% of their customers, and our top performer achieved Live revenue in excess of 60%. This has allowed them to rapidly grow their business and continue to focus on servicing new business customers”, adds Fattal.
New Zealand Franchise Partners are now able to offer the same solution as their Australian offers additional benefits to the Franchise Partner along with access to new customers and industries:
– One of the main customer can manage all the orders and shipments from their own location, meaning that the Franchise Partner is receiving the revenue for shipments that they are not physically handling, or may not normally operation.
–partners by providing real-time tracking capabilities, offering enhanced visibility into the status and location of shipments. Customers also have the same level of visibility on their shipments, further improving operational efficiency in-store.
Streamlined Operations – The platform’s seamless communication tools streamline operations for franchise partners, reducing errors and enhancing overall workflow efficiency. Through integration with the
merchants’ marketplace, the platform ensures the correct delivery and product information is fed through for processing and allocation to the best service available.
– Franchise partners benefit from data-driven insights that enable informed decision-making. The real time empower franchisees to adapt and innovate based on market trends and customer demands.
– The customisable tracking and communication tools contribute to an elevated customer experience, a key aspect of the No Limits philosophy. Satisfied customers lead to repeat business, driving growth for franchise partners without the traditional confines of the logistics industry.
–
model, allowing franchise partners to adapt and expand their operations seamlessly to their customer’s needs. The platform ensures that as businesses grow, franchise partners can embrace new opportunities without limitations, enhancing their market presence.
grow in New Zealand it will offer Franchise partners a fantastic opportunity to not only grow their business but to service new types of business customers. The fusion of operational efficiency, customer-centricity, and scalability not only transforms franchise partnerships and customer experiences but also reinforces the No Limits business model”, Fattal says.
This convergence of innovation positions
logistics landscape, proving that the future is limitless for those who embrace change.
Xpresso Mobile Café is a proven business system operating Australia-wide.
For 22 years, we have been trusted to service businesses quality espresso and related beverages plus an assortment of food products.
Our thorough training, launch & ongoing support system sees licensees enjoy a long-term, strong ROI from their mobile café. Weekends see licensees service any customer, anywhere.
We charge no royalties or administration fees – just a simple small weekly marketing fee of $69.
Our 2024 entry cost is a completely ‘turn-key’ cost of $115,000 inc GST + a small legal fee & insurance. That’s it. You own the mobile café and we include all start-up stock & sundries, stationery, uniforms - everything you need to get started!
We are looking for people who love people. We can teach you the rest!
Beginning 30 years ago as a small enterprise known as Flea Stoppers, the group then became City Farmers Dogwash and has now rebranded to Petbarn Mobile Dogwash.
It is a part of Greencross Ltd (City Farmers, Petbarn & Greencross Vets).Greencross Ltd comprises 400+specialty large format pet Stores (City Farmers & Petbarn) throughout Australia, a mobile network of over 20 Dogwash vans as well as 180+ Veterinary clinics and an online store.
Our Franchisees love what they do and are so passionate about the part they play in a dogs’ health and wellbeing. But with more than 6 million pet dogs in Australia, we’ve got plenty of work to do and are always looking for Franchisees with big smiles and big hearts to come on board and enjoy the ride.
PUT YOUR SKILLS TO THE TEST
Run your own Test and Tag franchise!
Our franchise opportunities are Australia wide, with low entry costs, established client bases and full marketing support. ATS also provide business administration support including client reporting, invoicing, and debt collection.
Looking for a franchise with on-going repeat business, large territories, and access to an existing client base to get you started? For more than seventeen years ATS have specialised Australia-wide in Electrical Testing and Tagging in accordance with AS/NZS 3760:2022. Providing expert technical, admin, business and sales support, access to our national client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses. No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.
No electrical experience is required, and full training is provided. ATS will set you on the right path towards running your own business.
For more information
Contact
Scott McIntosh on:
Phone: 0402 902 620 Web: www.petbarn.com.au/mobiledogwash
You may think that your vehicle is working as your mobile billboard, so what more could it possibly do for your business…but if you want to utilise it to the fullest to be seen and noticed in your community, you should be constantly seeking innovative ways to stand out and engage.
For mobile franchises operating from vehicles, the road to success is paved not just with efficient service delivery but also with creative and strategic marketing. While franchise agreements may have certain guidelines (and it’s vital you check these before you put the pedal to the metal on your mobile marketing) savvy franchisees can explore opportunities within their agreement boundaries to enhance brand visibility and invite customer engagement.
Obviously, there are the basics, because your vehicle is a mobile billboard, parking it in the street where it can get seen and noticed is a no-brainer, but there are loads more opportunities if you get clever with it.
If you have a cleaning business, perhaps having half your vehicle dirty and clean. Or a Hose Doctor parked outside the local medical centre, company with a paddling pool for the local pooches to cool off in the summer heat, or a mobile lawn mower in front of a carpet warehouse with mats being mowed, or a cupcake company holding a garden party, to utilise your vehicle that brings attention to both your service and the community you are part of.
Start thinking outside the box, and of course, properly check OH&S, insurance and your franchise agreement, but these marketing stunts can go totally viral, and your team can have fun doing it and get more engaged with your ideal audience. At least you’d get noticed!
What short term, fun, impactful activities could be just what you need to get seen and talked about? What cleverness could you create that turns your vehicle into a social media sensation?
Consider how you can you work within your agreement guidelines to develop outstanding marketing that gets your brand seen and remembered?
Obviously, working with your franchise partner, discussing ideas with them and giving them feedback and ideas, could help benefit not just you. but other franchisees in your group as well.
Your mobile appearance speaks volumes to your brand story as well as your credibility as a trusted provider of products or services. The way you conduct yourself really is where the rubber hits the road when it comes to building your profile.
The way you and your team behave in the community can have a direct
affect on how your brand is regarded. So before you drive someone to distraction, think about who’s watching. We’ve all heard the road rage stories where the driver flips someone the bird at the lights and that someone turns out to be their boss, or a potential client....
Think deeper than just your appearance and behaviour though. Even the type of music that might blare out of your vehicle is part of your brand image. Consider how you can use that to become memorable. Do you have a special sound to your horn, or can you become as compelling as the Mr Whippy van that everyone knows is near?
This not only adds an element of fun and fits with the emotion of your brand promise, it also helps in creating a memorable association with your services. Of course, you need to ensure that the chosen sounds align with your brand personality and are not disruptive to the community.
Also consider special appearances. Is there a way to hijack events to get seen and noticed in a way that reflects and embodies your brand and culture?
Dressing up your vehicle for Christmas, Easter, Mothers Day,
A visually appealing vehicle not only captures attention but also reinforces brand identity. Getting your team in on the action to come up with clever and creative ways to celebrate the seasons, sporting events and community can be fun, motivating and eye-catching.
Obviously food franchises find this easier, but all mobile businesses can leverage the local community events to get seen and noticed. Offering to be part of school fates, sporting and cultural gatherings, providing the food and drinks from your mobile vehicle, as well as participating in fundraisers and charity events.
Not only is this a great way to support the community and get seen, you also connect your brand with the leaders in the local environment and get to give back. I call it branding by association, and when you
www.yourbrandtruenorth.com
rub shoulders with respectable schools, the council and community organisations, you are putting your brand on their level.
Often there are local media at these events, so you can also be part of a bigger story. Many mobile businesses help out during natural disasters, and when you can run your business from the back of a van, this enables you to not only give a helping hand, but get seen doing it.
Referrals are an awesome way to grow your business, and there is nothing better than referring someone that you’ve seen doing something generous and kind. So getting out and about and being part of what’s happening locally is a great way to start the ball rolling.
Your vehicle can be a powerful tool to drive digital marketing. Encourage customers to share pictures of your branded vehicle on social media platforms, perhaps with a dedicated hashtag. This not only amplifies your brand reach but also encourages user-generated content. You could do this by way of a “Where’s Wally’ style
mobile dog cleaning business can easily get selfies with their clients and pooches outside the vehicle and share them, tagging the owners, who love to share their pet pics. Serving mobile food, encourage customers to snap a pic in front of the van with their meal.
This can be easily done via a QR code and small promotional piece on the counter or vehicle with a competition or gaming style incentive for customers. Also consider utilising geotagging features to let followers know where your mobile franchise will be next, especially if you are turning up at events, creating anticipation and excitement.
Make it part of the process that team members take a selfie with the vehicle when they arrive or leave a location. This creates consistent and relevant imagery and content for your social media channels. The more you get seen, the more you get remembered.
Going it alone in business is tough, and as a mobile business you have every opportunity to get out there to create a supportive and inclusive tribe around you.
your business to a whole new audience. Time to get out of the drivers seat and start exploring partnerships with other businesses or local influencers to amplify your marketing efforts.
For example, service providers such as landscapers, pool cleaning etc could collaborate with a nearby cafe to offer joint promotions. Food based mobile businesses could partner with influencers who align with your brand values and start delivering marketing content, events and activities to benefit you both - breweries and food trucks do this well, so why can’t franchise mobile businesses do the same?
Matching service providers who have the same or similar audiences but offer different solutions also works well. For example, mobile mortgage managers could team up with real estate agents, Open2View creatives and property improvement businesses to develop community-based projects together and make a bigger impact - for the community and their brand awareness.
Partnering not only broadens your reach but also brings a fresh perspective to your marketing strategy. And remember to post on social media and tag the businesses you are nearby or working with to share the love and get even more exposure.
Hopefully this short list of ideas has jump started your creativity so you can keep brainstorming.
Don’t put the brakes on because you fear retribution or ridicule - remember, mobile franchises that transform their vehicles into powerful marketing assets with creativity and strategic thinking are the ones who get remembered and recalled when customers most want what they have.
Familiarity creates memorability and, with so much competition driving around, you want to be top of mind.
While it's essential to adhere to franchise agreements, franchisees should actively communicate and propose their ideas to the franchise group and be the driving force behind their own success.
By combining the basics of vehicle visibility with innovative marketing tactics, mobile franchises can drive success to new levels - start your engines!
One of the pioneers of the Hydraulink hose and fittings organisation in Queensland has backed the success formula of the of the expanding national network by taking up a neighbouring franchise, in the Bayside district of Brisbane.
Martin Smith – who has more than tripled
Brisbane North over the past nine years – has joined with his business partner Andrew Schuler to extend the range of Hydraulink services available to Bayside businesses seeking the same world standards of safety, compliance, cost-efficiency, and operational uptime.
“Brisbane North already has major resources in Brisbane, with a strong engineering home base, established contractors, and a fleet of six vehicles giving 24/7 service. This will be further expanded with more vehicles and resources to back the local knowledge of Hydraulink Bayside’s Andrew Richardson, who is widely respected in the area,” he said. Hydraulink hose and fitting services are used by machinery ranging from forklifts and trucks, through to major civil engineering, primary industry, construction, logistics, manufacturing, warehouse, materials handling, and heavy machinery including diggers, and cranes, including wheeled and tracked equipment. The Hydraulink network – trading under the corporate signature “Best Under Pressure” – now includes 150 service points throughout Australia priding themselves on high ongoing standards of training and product, extensive machinery knowledge, and being able to deliver uniformly high standards of work across single businesses and machines, through to multiple sites and machinery fleets.
Martin Smith has long Queensland experience with the Hydraulink network and the opportunities for its can-do franchise operators, who are selected for their
knowledge, enthusiasm for customer service –and willingness to continuously advance skill sets in a fast-moving area of business. He has worked in association with the Hydraulink network for more than 25 years, establishing the brand in Queensland in 1998 and seeing it grow into a State network extending from Brisbane to Cairns.
“Every market we serve is different – the customer bases in Brisbane North and Bayside are very different – but what they all respect is a commitment to service by people who know their machinery and can deliver the same standards of service and supply excellence over a broad spectrum of jobs.
“Compliance, safety, and traceability of work are so important to businesses today, who want the peace of mind of dealing with trusted local people who adhere to national and world standards of quality and costefficiency. World standards of work, coupled with strong knowledge of the needs of the local market, has been part of our success formula from day one, and will be extended throughout our Hydraulink Bayside services.”
Hydraulink National Franchise Manager Wayne Abbott said Queenslanders such as the clients served by Martin Smith appreciate
quality service personnel who can be relied on to do consistently good jobs, first time, at a fair price.
“All members of the Hydraulink family of franchise operators – exemplified by Martin – demonstrate deep practical knowledge that engenders confidence and trust that fosters ongoing business relationships of benefit to all involved.”
Hydraulink and Hydraulink CCR have 14 company-owned sites in Australia, 135 network partners, and 150 service vehicles offering 24/7 onsite and mobile services to both smaller individual companies and some of the largest companies in the country.
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Where should I go, and how do I know my territory is sufficient to support me?
The great expansion in franchising appears to be in the service industries, and when you are considering a franchise, the questions about territories normally arise.
Within service franchises, there are the indoor ones such as house cleaning, ironing, oven cleaning and many more.
spent in the beautiful outdoors, maybe one of these is for you?
The demand for these types of services correlates very closely to high economic areas. We look at this in terms of SEIFA (Socio Economic Index For Areas), which is an Australian Bureau of Statistics product, and tells us a score for every area in Australia, centering around an average score of 1,000. I like to describe it as a line from Affluent to Effluent, and everywhere in Australia sits somewhere on that line!
High SEIFA areas are typically ones where the housing price is high; most people are in employment, and in most cases in Professional or other well paid jobs. Typically of this are areas such as the northern suburbs of Sydney, Melbourne’s inner east and Perth around the Swan River. Lower SEIFA areas would be both Melbourne and Sydney’s western suburbs in general.
The demand for household services is definitely stronger in higher Socio Economic areas.
To show this, we can use the Household Expenditure Survey (HES) which was conducted with around 9,000 persons asked to fill in how they spent their money some years back. The HES allows you to break down what people spent their money on, and when we look at the map
The master of Service Franchises has been the Jim’s Group, who now have around 3,200 individual franchisees operating in areas from mowing (the traditional start for Jim Penman), thru to cleaning, Test and Tag, fencing, tree lopping and many more.
These maps confirm the relationship the HES show us to spending on Household Services, as compared to higher / lower economic areas.
Peter Buckingham is the Managing Director of Spectrum Analysis
Australia Pty Ltd, a Melbourne based mapping, demographic and statistical consultancy. Peter is a CFE and Certified Management Consultant. Spectrum specializes in assisting clients with decisions relating to store location and territory planning, using various scientific and statistical techniques.
To contact Peter email peterb@spectrumanalysis.com.au or call on (03) 98300077 or 0411 604921.
each territory gives the similar amount of opportunity for a Franchisee. As you would imagine, if we simply split up a market into territories each of 40,000 households, you would much prefer to have the Service franchise for pool cleaning, gardening, or dog washing around Camberwell, Toorak, Double Bay, Hunters Hill or Claremont (WA), than around St Marys, Cabramatta, Hampton Park or Broadmeadows. Some franchise systems wonder why some of their franchises are keenly sought after, whilst others seem to have no interest at all. Inevitably they have split their territories very poorly.
map to a proper, statistical based system so we can give each franchisee similar opportunity within their territory
texta on a large map, strongly influenced by some early entry, self
no data has been used, just a keen eye, and normally as self fulfilling design.
The way we recommend is to firstly understand what makes for a good customer of this service franchise ie. Who is going to be our customer? This can be done by creating a picture of who the ideal customer is, or if the business already exists, plot the customers, and look for areas (post codes ideally) of high concentration (penetration, or customers / 1,000 households) of customers. By then comparing to the demographics of the post codes of high penetration, we can see if our service franchise works best in high vs. low income, areas of older vs. younger people, areas high with families, or whether ethnicity may have some effect on the business.
Once we know which Drivers are good for the business, we can calculate a score for each post code. For example if 1 household was likely to spend $20 on your service on average, then a household in a high demographic area may be considered to spend $30 per household, and a household in a lower demographic area may spend $10 per household If each post code was equivalent in the number of households, say 10,000, then the higher area would offer you $300,000 of potential sales, whilst the lower socio economic area would only offer you $100,000 of potential sales.
Therefore if we decide to do this across the total market such as all of Melbourne, we may conclude the total market offers us 1,400,000 households at an average of $20 per household = $28,000,000.
Being a good franchise system, we may have concluded we want 40 franchises across Melbourne, so we want each franchise to have $700,000 of potential.
To balance the potential so each territory is similar, in a high socio economic area, when we add the post codes together to come up with $700,000 of potential, it may take 29,000 households, and in a lower socio economic area, we may need 50,000 households to give the same amount of opportunity for the franchisee.
This type of calculation can be done for any market, and rather than trying to adjust the franchise fee for a higher potential area, compared to a lower potential area, we believe it is better to keep the franchise fee to offer similar opportunity.
Our experience is that outdoor service businesses definitely have more opportunity in higher socio economic areas than lower ones; however a good Franchisor will balance the territories they create so that each area gives a similar amount of opportunity for the Franchisee.
If your potential future Franchisor cannot properly explain how they have cut the territories, I suggest you look for another franchise system. The wet finger in the air approach is NOT what you want to hear, or be part of.
The number of franchises in New Zealand and Australia where the business is conducted from a van has grown considerably over the years.
There are franchises that are mobile because they have to be. For example, there are pool valet services, electrical or plumbing services, couriers, and cleaning. There is Laser Electrical, Laser Plumbing, Aramex (formerly Fastway Couriers) and Poolwerx. There are also mobile businesses which can deliver products and services to customers. For example, carpet retailing, carpet cleaning, car tuning, coffee and book-keeping.
If you are looking to invest in a mobile franchise which is commonly called “a man with a van”, then you must do your due diligence. Apart from talking to the franchisor and asking a lot of questions, it is essential to talk to mobile franchisees who are already running their own businesses to see if they like it, what pitfalls they have discovered, and the operating costs. In addition to the normal expenses to operate a business you will have petrol or diesel costs, maintenance costs for the vehicle, annual registration fee, and insurance.
The franchise agreement between the franchisor or owner of the intellectual property for the business system and the
Stewart Germann founded Stewart Germann Law Office (SGL) in 1993 as a boutique law firm at Auckland, New Zealand, specialising in franchising, licensing and business law.
Stewart has over 40 years’ experience in franchising law and acts for franchisors in New Zealand, Australia, USA and the UK. SGL also act for franchisees and provides legal advice. Stewart has spoken at franchising conferences in New Zealand, Australia, Italy, South Korea and USA and he was on the Board of the Supplier Forum of the International Franchise Association (“IFA”) for 6 years until March 2007.
Email: stewart@germann.co.nz | Web: www.germann.co.nz
franchisee will contain some unique clauses including the use of the trade marks and colour schemes, specifications of the type of motor vehicle and territorial restrictions. Can the mobile van drive anywhere? If the answer is no then the franchisor must think carefully about the division of territories, the population base, and how to distribute a territory fairly among franchisees. A courier van is an interesting case study. We all see couriers driving everywhere but even the courier/franchisee should have a specified area or territory. For example, Auckland is such a large city in land area so it would be hopeless to allow a courier to drive from West Auckland to East Auckland delivering parcels. The same would apply to Sydney or Melbourne so careful thought and research must be undertaken in relation to territories. It is also important for mobile franchisees to comply with all relevant legislation and regulations. In New Zealand, if you drive a diesel or another type of non-petrol
fuelled vehicle, you need to pay Road User Charges (RUC). These charges go towards maintaining and improving the roading network. Petrol vehicles contribute towards these costs through an excise tax on petrol. There is no tax on diesel which is why these vehicles need to pay RUC instead. RUC is charged according to how many kilometres a vehicle travels, and its type and weight. Vehicles pay a set amount for every 1,000 kilometres travelled. For example, a powered vehicle with two axles and under 3.5 tonne will pay NZ$76 per 1,000 km and heavier vehicles pay a higher rate of RUC.
In conclusion, it is important for a potential mobile franchisee to do its due diligence, to read the franchise agreement in full and to take independent advice from a franchising lawyer and accountant. The number of mobile franchises is certain to increase so watch out for a new brand appearing where you live.
