VOL 16 ISSUE 03 march/april 2022
cover story
Snap-on Tools National Franchisee of the Year
Franchise
territories for mobile operations Franchising on the road…
10 things to consider
before buying a new franchise business franchise MAGAZINE 25
JOIN HYDRAULINK YOU’D LOOK GREAT IN YELLOW Whether you are looking at operating your own mobile Hydraulink Sales Service Technician business, or would like the opportunity to expand and employ other technicians by owning a Hydraulink Hose Centre - Hydraulink can be the right franchise opportunity for you to grow a successful business of your own with a secure future. Hydraulink has been a trusted brand for the supply and manufacture of high quality hydraulic KRVH DQG ðWWLQJV VLQFH ZLWK RYHU VHUYLFH locations across Australia, New Zealand and Asia 3DFLðF
BUSINESS IS BOOMING AT HYDRAULINK Hydraulink’s services are in high demand. We SURYLGH PRELOH K\GUDXOLF KRVH DQG ðWWLQJV breakdown and repair services for essential, thriving, and growing markets including: manufacturing, waste management, agriculture, construction, transport, marine, mining and materials handling.
LIFE AS A HYDRAULINK FRANCHISEE Our Franchisees look forward to developing new skills and WDNLQJ FRQWURO RI WKHLU FDUHHU (YHU\ GD\ LV GLσHUHQW DV D Hydraulink technician and successful Franchisees come from DOO ZDONV RI OLIH $Q HQJLQHHULQJ TXDOLðFDWLRQ WUDGH VNLOO RU PHFKDQLFDO DSWLWXGH DUH EHQHðFLDO +RZHYHU +\GUDXOLQN KDV IRXQG WKDW WKH PRVW VXFFHVVIXO IUDQFKLVHHV OLNH WR ð[ WKLQJV have a passion for their business, motivation to succeed and provide great customer service.
YOU CAN BE YOUR OWN BOSS IN A HYDRAULINK MOBILE SALES AND SERVICE TECHNICIAN FRANCHISE - STARTING FROM:
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FOR A CONFIDENTIAL DISCUSSION CONTACT: Wayne Abbott, National Franchise Manager - Hydraulink M: + 61 455 478 699 | E: wayne.a@hydraulink.com.au | W: www.joinhydraulink.com 26 business franchise MAGAZINE
contents
mobile franchising Cover Story 25 Snap-on-Tools National Franchisee of the year 2021
In Every Issue 30 Franchising Featured Article Franchises on the Move
Focus Feature 36 Hydraulink Hydraulink Evolves its Franchise Model
Expert Advice
25 36
N E T P O T F R A N C H IS IN G
E - O N T H E M OV
36
34 Peter Buckingham: Franchise Territories for Mobile Operations 38 Tony Meredith: 10 Things to consider before buying a new Franchise 42 Brian Keen: Franchising on the Road
Franchisor In Depth 40 Jim’s Pool Care The Great Resignation
40
business franchise MAGAZINE 27
franchising feature
cover story: Snap-on Tools
Snap-on Tools National Franchisee of the Year
National Snap-on Tools Franchisee of the Year 2021 – Dave Sarno High achievers are recognised and presented with awards at the Snap-on Franchisee Conference and Tool Show. The top award for 2021 being the National Franchisee of the Year was presented to David Sarno from the Central Coast region. He was selected based on his significant achievements including sales of over $1 million despite COVID lockdowns and restrictions, fifth consecutive year in the $1million club and high sales in trade card, diagnostics and tool storage. Russell Hafey, the Business Manager for NSW, WA states the reasons why Dave was carefully chosen out of all the franchisees across Australia and New Zealand as the National Franchisee of the Year. “Dave is a great ambassador of the Snap-on brand. He is continually providing positive input at sales meetings, the annual Snap-on Franchise Conference and training events. He is a continual proven performer year in, year out. Consistently in the top end of the bell curve for Snap-on Tools and we are proud 28 business franchise MAGAZINE
“
Someone who is focused, self-motivated and has passion for customer service and passion for the brand is what he believes are the traits of a successful Snap-on franchisee... you do work hard however it is rewarding, says Dave.
”
of the level of customer service and support he provides to technicians in that area. He is a great ambassador for the brand and the business network.” Dave provides insights about his journey about becoming a Snap-on Tools franchisee and what it means to be selected as National Franchisee of the Year.
The journey to becoming a Snap-on Tools Franchisee Like other franchisees, Dave started his career as a mechanic. He took on an apprenticeship as a 15 year old and worked for eight years in the trade, during which time he used Snapon Tools. After deciding to leave the trade, he bumped into a local Snap-on franchisee who he used to buy a lot of tools from. The franchisee offered Dave an opportunity to run a second franchise for him and said if
he liked the opportunity and business that he could buy the run from him. In two and a half years, he ended up taking on the Snap-on franchise and became an official franchisee.
What effects did COVID have on the business Snap-on Tools are heavily used by mechanics and workshops and was considered an essential service during the pandemic. The Automotive industry was operational as usual throughout lockdown though Dave did have some customers who asked him not to visit whilst others were happy for him to continue his visits with his Snap-on truck. He mentioned that there were positive effects from the pandemic. “Customers had more cash to spend as people were not travelling”. In fact, Dave says, “Not only did I survive but thrived!”
With over 100 years as a “ Global business, Snap-on Tools provides high quality hand and power tools, tool storage, equipment, diagnostics, repairer information and management systems.
”
What it means to win the National Franchisee of the Year Being selected out of almost 200 franchisees across Australia and New Zealand, Dave felt honoured to be named National Franchisee of the Year. He says, “he was not expecting it.” Initially, starting off as a franchisee on his own, he did “okay” but then his performance went downhill as he did not understand his numbers. After guidance and getting his confidence back, he turned things around and went on to become one of Snap-on’s highest performers. This shows how character building owning a franchisee can be and how supportive Snap-on is to their franchisees.
Best part about being a franchisee Dave says that the “relationships that he builds with his customers” is the most rewarding part of being a franchisee. Having now run his Snap-on franchise for over a decade, he has seen apprentices starting off who now own their own workshop. He has watched their growth and development over the years and been able to support them throughout their tool buying journey. He has built a life-long trust and bond with them. “I know the customers even better than I know my friends.”
Advice for future franchisees “A Snap-on Tools franchise is an enjoyable business to run for the right person with the right attitude,” says Dave. Someone who is focused, self-motivated and has passion for customer service and passion for the brand is what he believes are the traits of a successful Snap-on franchisee. “You do work hard however it is rewarding,” says Dave. During the time he has been a Snap-on franchisee, he has brought his wife into the business to assist him, they have bought a new house, he earns a comfortable living and provided a quality lifestyle for his family. “I’m in charge of my own destiny,” Dave states.
The pandemic continued to affect many businesses and industries in 2021. Lockdowns in different states, irregular stock supply and logistic delays impacted Snap-on Tools Australia and New Zealand. Despite the challenges, Snap-on Tools Australia and New Zealand went on to record the best sales result ever in its 34 year Australian history in 2021. This is an impressive feat considering all the issues that the pandemic brought on. Thankfully, the business was considered an essential service so the entire network of Snap-on mobile stores were still able to service customers even during the prolonged lockdowns in New South Wales and Victoria. The uplift in Snap-on sales was in part due to the increase in the number of franchisees recruited in 2021. Successful recruitment advertising campaigns resulted in people signing up to become a Snap-on franchise owner. In the meantime, Snap-on franchisees were able to carry on business as usual inside our customers workshops across both Australia and New Zealand throughout the year. This shows how strong and resilient the business is and how being a Snap-on franchisee is a great opportunity even through challenging times. With over 100 years as a Global business, Snap-on Tools provides high quality hand and power tools, tool storage, equipment, diagnostics, repairer information and management systems. Franchisees play an critical part of the business bringing the mobile showroom to highly skilled mechanics and workshops. There are now over 4,200 franchised mobile stores globally. Snap-on is
one of the largest non-food franchisors in the world, operating in 130 countries. The Snap-on Tools franchise network has operated in Australia for over 34 years since 1988, delivering quality automotive tools and equipment direct to mechanics and workshops. Multiple awards have been presented to Snap-on including; • 10,000 Feet Top 10 for Expansion 2021 • 10,000 Feet Top 10 Franchise Award 2020 • 10,000 Feet Top 10 Franchise Award 2019 • 10,000 Feet Number 1 for Expansion 2018 • 10,000 Feet Top 10 Franchise Award 2018 Held annually in early January, franchisees individually are acknowledged and given awards at the yearly Snap-on Franchise Conference. It is a highlight in the events calendar and one that all Snap-on franchisees look forward to. Generally held in person, the decision was made to hold the Conference virtually due to the surge in COVID-19 cases. This ensured everyone’s safety and allowed all franchisees to be included no matter where they were located in Australia and New Zealand. The annual Conference provides franchisees an update about how the business has tracked over the year, learn about upcoming promotions and provide more knowledge about Snap-on products. It is an event designed to get franchisees excited for the year ahead especially to launch the 2022 Summer Sale promotion with fantastic major prizes. v Drive your own success by becoming a Snap-on Tools franchisee. Learn more about this fantastic franchise opportunity by speaking to our Snap-on team on 1800 810 581 today or visiting www.snaponfranchise.com.au business franchise MAGAZINE 29
franchising feature
FEATURE ARTICLE
Franchising on the
move
Two years of a global pandemic have changed life enormously, and the need to adapt inspired enormous innovation. Business has moved with the changes; working from home is a new normal, and opportunities for working small and quick, on wheels, have never been more varied or exciting. With business and living de-centralising from the cities, regional development is humming and home-based businesses thriving. Franchise opportunities can barely keep up with the ever-growing landscape of marketable territories, niche businesses and the services all of them require. In today’s market, mobile franchising remains on top in terms of affordability, lifestyle and range of options. For the franchisee, operating out of a van means lower overheads and the elimination of issues such as maintaining business premises, management relationships and lease requirements. In many ways there’s never been a better time to become a franchise business owner, especially one that’s mobile. Starting a new business from scratch is daunting, but purchasing a franchise means most of the work: a business plan, equipment, procedures, and a territory of ready clients, is already done. A van is a small and manageable workspace; each day is varied, immediate, and satisfying. Training is included and franchisees join a network of like-minded people who understand what’s involved. Ongoing support is a click or phone call away. Home maintenance services are in high demand as people set up a home office, cater for visiting customers or, being at home more, 30 business franchise MAGAZINE
are simply more mindful of what needs doing. Home-based workers require business-related services, while time-poor workers of all kinds need help with domestic jobs to balance work and lifestyle. These days, a home-cleaning service may be part of the employment package.
To start the search for an inspiring franchise business, take a look some opportunities we have showcased below.
Grayson’s Gutter Guard
Almost any service you can imagine, from accountancy to tool supplies, has a mobile, home-visit option and operating a mobile business from home gives the business owner greater autonomy, room to juggle work/life balance, and there are tax benefits, too.
Founded as a one-man business in 2001, Grayson’s Gutter Guard, for example, has grown to four regional suburban Melbourne locations and is offering franchises throughout Victoria. Being operational throughout the pandemic has been a bonus, as the business is Covid-safe and gutter cleaning is an essential service.
The satisfaction of personal accomplishment through giving good service to customers is a great way to build financial security and ongoing employment. For those choosing (or forced) to find a new career, or who wish to move from employee to self-employment, look to a field that you enjoy, find interesting or feel passionate about.
A Grayson’s Gutter Guard franchisee investment includes a proven business model and a fully kitted-out custom-built vehicle, plus hands-on training in all aspects of operation and safety. Ongoing support is provided through a cloud-based operations manual, so a new Franchisee can be confident of the right guidance at all times.
Deckseal Rejuvenating decking is an important facelift that also saves money for the customer, since replacement is far more expensive. Burwood (Melbourne)-based Deckseal was founded in 2007 by Brian and Danielle Burgess, driven by their love of timber and desire to protect and extend the investment and life of timber decking. Deckseal offers large franchise territories in a niche business, and with their reputation for excellence, demand is spreading. With Deckseal providing everything from training and guidance to marketing, advertising and most of the leads, all the Franchisee has to do is quote and win the job, and complete the work. As the majority of clients are happy to transition to Deckseal’s structured ongoing maintenance program, franchisees enjoy longterm clientele. For a handy person with high standards, a future with Deckseal is a solid and sustainable choice.
City Farmers Dog Wash
Jim’s Group
Companion animals play an important role for residents and home-based workers. The pet industry is growing exponentially, along with home-based care services for beloved pets. Once a small, privately-owned enterprise, the City Farmers Dog Wash mobile network is now under the Greencross umbrella, which also comprises 220-plus specialty large-format pet stores throughout Australia under the Pet Barn and City Farmers banners and over 150 veterinary clinics.
Everyone is familiar with the highly successful Jim’s group, and Jim’s Cleaning (featured on our Front Cover) and Jim’s Pool Care have the same commitment to excellence in customer service as every other branch. With so many people working from home or too busy working outside the home, home cleaning is big business. More Franchisees are desperately needed in this high-demand sector and a Jim’s Franchisee can expect outstanding start-up training and support.
The City Farmers Dog Wash mobile network is the most hands-on service of all. Caninecaptivated franchisees are needed in many areas to provide excellent customer service, and take advantage of a huge retail customer base and exclusive products, to enhance their income stream. City Farmers Dog Wash franchisees love dogs and are passionate about their role in maintaining the health and wellbeing of their customers’ animals. With more than 3.7 million pet dogs in Australia, there is plenty of work to do!
Pool care is a specialised business and Jim’s Pool Care is a top-class maintenance service and mobile one-stop shop for all pool requirements. There are 125 Jim’s Mobile Pool Service vans/franchisees already on Australian roads, driven by owner-operators who love to get pools sparkling, help with pool pump repair and pool equipment maintenance or provide a free pool heating quote. Jim’s guarantees customer satisfaction and supplies Franchisees with all the gear, training and equipment necessary to succeed and prosper.
Donut King Mobile Joining a national brand does have advantages: familiar, well-established products, market knowledge and national and local advertising campaigns. With more than 220 stores around Australia, Donut King has gone mobile and is seeking franchisees. In this popular and enduring snack food brand, mobile Donut King franchisees are offered guaranteed sales in carefully mapped territories, while the entry package includes a week of training at Retail Food Group’s world-class academy on the Gold Coast, barista training, strong goods supply and ongoing guidance.
business franchise MAGAZINE 31
franchising feature
FEATURE ARTICLE
Aramex
Hyraulink
Courier services have grown exponentially throughout the pandemic. An essential for business and private clients, this will only continue. With the world opening up again, local, highly-regarded courier service Fastway has branded with Aramex, an international courier service that will provide Australian businesses and Regional Franchisees with global opportunities. Aramex is the service provider of choice for more than 95,000 customers around the globe. Local customers include Naked Wines, National Storage and eBay. Aramex is looking for Australian franchisees, and no prior experience is required as all training is included. Opportunities are available across 29 regional franchises and over 900 franchise partners, from Cairns to Perth and pretty much everywhere in between.
Mobile services are essential to countless businesses across this vast country, providing franchise opportunities almost anywhere. Local manufacturing is a growth sector and service and delivery opportunities exist alongside this. An example is globallyrecognised Australian manufacturer and supplier of high-quality hydraulic hose assemblies and fittings, Hydraulink. Through 400 service points throughout Australia, New Zealand and the Asia Pacific, Hydraulink provides supply, rapid repair, workshop expertise and on-site support at remote largescale projects to industries in earthmoving, mining, farming, road transport, fishing, construction, waste, energy supply, industrial manufacturing, and materials handling to local Councils and golf courses. Hydraulink Mobile Service provides 24/7
services to keep their clients fully operative and productive. With an Australian distribution network of over 75 Service Centres and 170 Mobile Service workshops operating in every state and territory, exciting opportunities exist in this dynamic industry, either as a Hydraulink Mobile Service Owner or Hydraulink Hose Service Centre Owner. It’s possible to start small with a homebased Mobile Service. Franchisees own their territory and develop it at their own pace, adding more mobiles and, eventually, a trade counter.
Snap-on Tools Industrial start-ups, technical trades, building sites and tradies are in constant need of equipment, but having to down-tool to get what’s required halts productivity. Snap-on Tools is an award-winning global franchise that brings its famous range of more than 22,000 hand tools, power tools, tool storage products, diagnostics, equipment and related accessories, in a complete retail mobile showroom, to their many customers’ place of work. In 1920 Snap-on founders patented a range of five unique handles and ten sockets that snapped on interchangeably, coining the phrase, ‘Five do the work of Fifty’. One of the longest-running and successful franchises in the world, Snap-on has operated in Australia since 1988 and is rapidly expanding through business resales and new routes being developed. Mechanical experience isn’t required, just computer and people skills, and great work ethic.
32 business franchise MAGAZINE
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For more information or to register you interest, please call 1800 332 525 or email admin@deckseal.com.au
s 3ALES AND "RAND -ARKETING AND !DVERTISING business franchise MAGAZINE 33
franchising feature
EXPERT ADVICE: Peter Buckingham | Managing Director | Spectrum Analysis Australia Pty Ltd
Franchise territories for mobile operations
In the times where COVID-19 is having a strong influence on what we do, more and more mobile franchises are coming onto the market. The lower cost of entry makes these more affordable to the potential franchisee, along with not having the hassle of a retail lease. A potential client rang me the other day and said he and his wife were looking at going into a mobile franchise relating to the auto industry. He said the franchisor had given him a territory, and could we do some work to decide if it made business sense! Well, while I feel I am reasonably astute in these areas, my first question was what did your franchisor tell you in the 34 business franchise MAGAZINE
Peter Buckingham CFE CMC, is the Managing Director of Spectrum Analysis Australia Pty Ltd, a Geodemographic and statistical consultancy. Peter is the Go To person as to where to open new stores in Australia and New Zealand. Peter is both a Certified Franchise Executive (CFE) and a Certified Management Consultant (CMC). Spectrum Analysis is the winner of the FCA 2021 Supplier of the Year. To contact Peter email peterb@spectrumanalysis.com.au or call on 0411 604 921.
disclosure document, and what are the basic assumptions about the market and specifically the brand and business you are becoming part of? The answer was very little! This seems to me to be a common problem, especially with small franchise systems, where the potential franchisee sits between a franchisor telling them enough to raise interest, and trying to avoid saying anything
of substance in fear of later recriminations (legal), if there is a problem. My view is if some logical work and assumptions have been formulated by the franchisor, then there is a reasonable case to give a territory with a realistic explanation, not just ‘This should work GREAT, but don’t ask me how we came to that conclusion!’ – Which then evolves into a ‘Beer and Pizza map.’
The ‘Beer and Pizza map’ is normally the map on the wall derived by a few early entry franchisees and the franchisor after beers, red wine, pizza, and a black texta on the boardroom table.
Some research and arithmetic As a potential franchisee, you are predominantly interested in your own market and probably not other capital cities where the franchisor may operate. For this example let me consider we are in the automotive aftermarket business. Maybe we are joining a system doing mobile tyres as a franchise. The first question is always – How big is the market? Let us imagine we are going into business in an area of Melbourne – so we can visualise. On a national basis, if we undertake some research, we may find a report that incorporates the following: ‘The Australia retail tyre market is expected to be $5.1 Billion (according to IBISWorld) in 2022’. This may be able to be broken down to state level, and ultimately to specific areas. The franchisor should have a business plan that addresses issue like total market size and forecast market share, and a good understanding of where the opportunities lie for the business. The franchisor and their advisors have decided that they feel with their mobile system, they will target to be 2% of the Melbourne and Geelong market, or $20 Million pa. NOW WE ARE STARTING TO UNDERSTAND THE MARKET! Whilst you may dispute the detail, at least we are gathering an understanding of the big picture, so now we need to understand: 1. Is the franchisor’s assumptions realistic? 2. How many territories should be made and what should a territory comprise of?
The franchisor’s assumptions In your ‘Due Diligence’ – fancy wording for doing your own investigations to decide whether you proceed or not, you have every right to ask the franchisor to convince you that what they are putting before you is reasonable. This information should be available and included in the Disclosure Document. That is an obligatory right, for you the franchisee has to receive this detail. It does surprise us at times how some franchisors come to us for territory planning advice, and when we ask what is in their business plan and what the assumptions as far as market size and market share, there is a blank look.
City
Persons
Households
Pop. Ratio
Sydney (Newcastle / Central Coast / Wollongong
5,672,390
1,933,915
34%
Melbourne (Geelong)
4,647,007
1,637,362
28%
Brisbane (Gold Coast / Sunshine Coast)
3,118,322
1,097,575
19%
Perth (Rockingham & Mandurah)
1,942,730
690,081
12%
Adelaide
1,234,468
470,906
7%
*Based on Census 2016 population estimates * NB - Census 2021 expected release date June 2022.
In our view a Franchisor should consider the question of territory numbers in one of 3 ways: 1. Have some successful territories that can be measured and replicated, and therefore you understand that each territory has been built to meet a requirement. We call this the ‘Cookie Cutter’ approach, when a franchisor can say that certain successful franchisees have been able to successfully operate the system based in the following territory. Normally this may be based on population, number of households or number of businesses in a B2B type application. This is then adjusted in size if the area (and postcodes) is seen to be better or worse than the average as far as likely to consume the service you are offering. 2. The franchisor may have an internal view that a franchisee needs to invoice out $800,000 pa. to cover own labour, return on investment, parts they would expect to use in mobile servicing and other operating costs and make a reasonable profit. If the Melbourne / Geelong target market is $20M, then we should be able to support 25 franchisees when we approach maturity. This may need to be the 5 – 10 year plan, but at least you can issue some franchises and ask the franchisees to ‘care take’ other areas until the system can support the mature number of franchises. 3. Sometimes a franchisor has been successful in another market, and therefore we can use the territory numbers and size of territories from elsewhere and transpose that into the market we are working in. If we have been operating for some years and have 30 territories in Sydney, Newcastle, Central Coat and Wollongong, this would be equivalent to having 25 territories in Melbourne and Geelong, which is based purely on population and household numbers.
Whichever way it is put to you by the franchisor, you should expect to see realistic assumptions, facts and data to support this view.
Commitment of the franchisor Many jobs we receive on territory planning at Spectrum Analysis start with the franchisor asking us ‘How many territories should I have?’ Our initial reply is that we do not write their business plan, and this type of work should be considered as a priority before any territory planning can occur. We walk them through most of the steps described here to come out with a logical and realistic position. In our view once established it should probably be a Board ratified decision, as it is fundamental to the future of the system. Recently we had an inquiry on behalf of an overseas franchise wanting to come to Australia, and we were told based on their English experience, they should have 200 – 250 territories. The concept was IT based, and when we delved deeper into the logic, it was a wet finger in the air approach based on the number of businesses. Once a franchisor has undertaken reasonable research, they should be able to show you a logically thought out set of information based on realistic assumptions, with mapping to back it up.
Summary If you are looking at taking on a mobile franchise, ask the franchisor what research they have done, and more important, what assumptions are they making in working out your territory, and whether it has a reasonable chance of sustaining the business. If the answer is cloudy or blank, may I suggest either: refer the franchisor to a company such as ours; or look at another franchise system. v business franchise MAGAZINE 35
franchising feature
focus feature: Hydraulink
Hydraulink evolves its franchise model
to inspire more pathways for individual success Hydraulink National Franchise Manager, Wayne Abbott discusses the changes Hydraulink has made to its franchise model to allow greater flexibility, provide stronger support, and inspire confidence in franchisees. Franchise models typically take one of two routes – a full-service model with everything provided, or a more economical turnkey solution. Whilst full-service models often require large upfront investments, the Hydraulink Franchise model provides flexible turnkey solutions and the tools to succeed at a more modest investment. Hydraulink’s options have been specifically and thoughtfully designed to focus on providing lots of individual parts that are useful to the franchisee. Hydraulink then provides the guidance on how to connect all of these individualised component parts, and what to do next, once you’ve joined their franchise team. This is where Hydraulink has sought to separate itself from the pack – in its evolved franchise model. Hydraulink franchise owner Ben Walker has scaled up his involvement with Hydraulink over several years with the organisation. After successfully building up the Granville NSW franchise, he bought an additional franchise in Blacktown, NSW, and is looking at further expansion in the future.
Hydraulink aims to provide franchisees with the support and tools they need – to not only succeed, but also to continue to expand and thrive. This leads to multi-site and long-term franchisees with the opportunity for future family generations to take over the business. Unlike other offerings, Hydraulink provides a strategic plan for every step of the process, from pre-opening through to ongoing support once the business is up and running. The move is part of a larger organisational plan, as Hydraulink focuses on franchise expansion. Hydraulink entered the market in Australia in 2001, after becoming a market leader in New Zealand, where it began in 1945. Building on its success in New Zealand, the business initially used a dealer and distributor model in Australia. As a business new to the country, that strategy made sense at the time, but now that Hydraulink has expanded to cover almost every corner of Australia, it’s the franchise model that allows for both greater expansion and greater success in the future. All whilst bringing its tight-knit network of franchises closer together, so that everyone grows together and succeeds together. You might say that in the Hydraulink Franchise model, “when the tide rises, all the boats float.”
Adapting to Franchise Code changes The aim is to be as easy as possible to deal with, so, as part of Hydraulink’s evolved franchise model, the organisation has updated its practices to ensure compliance with the new Franchise Code. Simple explanations of complex terms are provided with contracts and paperwork to assist prospective franchisees to understand exactly what it all means.
Hydraulink aims to provide franchisees with “ the support and tools they need – to not only succeed, but also to continue to expand and thrive.
”
As a leading hydraulic hose, fittings, and associated service organisation, with more than 400 service points across Australia, New Zealand and the Pacific Islands, Hydraulink has refreshed its franchise model to provide every franchisee with the best chance of success. Hydraulink shows franchisees how all the parts fit together and provides assistance with everything from finding property and vehicles, to setting up finance, providing safety training, helping with insurance, providing strategies to launch your business and everything in between 36 business franchise MAGAZINE
Franchise owner Jeff McCoskery, left, converted a Mercedes bus to provide additional stock and support to Badgerys Creek, NSW, as the new airport is constructed.
Former aircraft engineer, Peter Thomson, bought a Hydraulink franchise in Logan, Queensland to provide ongoing stability for his family, and to use his engineering and mechanical skills to expand his future possibilities.
“
You might say that in the Hydraulink Franchise model, when the tide rises, all the boats float.
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Hydraulink isn’t looking for a particular person who fits a particular box. Instead, they’ve opted to customise terms to suit each franchisee’s unique requirements and individual situation. When it comes to success, Hydraulink understands that one size doesn’t fit all. Franchisees for Hydraulink come from diverse walks of life – from aircraft engineers to underground miners, to experienced business operators from totally different industries. Being mechanically minded is certainly advantageous – and diesel, plant or automotive mechanics regularly make outstanding franchisees. However, as long as the individual is motivated, driven and embodies the Hydraulink “can do” attitude, there’s always an opportunity to work with them to set up a franchise that best suits their needs and lifestyle. “This ensures individuals who are interested in a Hydraulink franchise have more autonomy, more control over their future, more freedom than a regular job, and the ability to spend time enjoying the things that matter most in their life.”
Competitive fees, and ongoing training and support One of the ways Hydraulink has sought to differentiate itself from other franchise models is through its competitive low fee and support structure. Hydraulink does not charge a Marketing Levy and instead, incentivises franchisees to invest in business development, growth plans and marketing tools that suit their business and their local area. Active and experienced national marketing support is fully included, and franchisees are encouraged to capitalise on this to support the progression of their business.
As a leading hydraulic hose, fittings, and “ associated service organisation, with more than 400 service points across Australia, New Zealand and the Pacific Islands, Hydraulink has refreshed its franchise model to provide every franchisee with the best chance of success.
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Hydraulink pathway allows franchisees to progress from being an individual Mobile franchisee, right through to a multi-site Hose Centre franchisee. Hydraulink uses advanced modelling, mapping, and demographic research to identify the best areas for franchise opportunities across all stages. Plus, franchisees are given support and encouraged to own their own assets along the way, including vehicles, buildings, and stock. This means, at the end of their career, they have built up their personal inventory and set themselves up with a succession plan for a comfortable retirement, or a tangible asset to pass on to the next generation. For however long someone is with Hydraulink, there is a desire to ensure they are better off for having been with the company. Hydraulink’s intention with its evolved franchise model is that all new franchisees will be so successful that they become “lifers” and stay with the business for the rest of their career. Of the business’ current dealer and franchise network of more than 150 companies, the average tenure is around 10-15 years with an extremely low turnover. This showcases the dedication network members have to the company, as well as how well they feel supported throughout their journey. Some Hydraulink network members have now arrived at a stage where they are looking at succession planning and bringing in a second generation to take over the family business. So, for mechanically minded, motivated, and driven individuals seeking a new franchise, Hydraulink encourages you to ask yourself – do you want a one-size-fits-all, franchise-in-a-box model? Or, do you want a customisable, flexible franchise that you can drive – one that you can scale up throughout your career, and one that comes with ongoing training and support along the way? Hydraulink’s sponsorship of the Jim Read Racing Top Fuel racer continues to make hearts race. Photo Credit: Half Light Photographic
There are also performance-based incentives to further encourage franchisees to keep growing, expanding, and succeeding as part of the Hydraulink network. To provide new and existing franchisees with all the tools they need to run a successful business, Hydraulink has invested in an impressive in-house training program named Hydraulink Academy. This specialised training provides product, technical and safety courses, as well as courses on sales, administration, stock control, and operations, so that every aspect of the business can be optimised. This ongoing support includes not only nationally accredited units, but also helps demystify the franchise process, and inspires confidence – optimising results from franchisees.
Taking the next step – evolving a franchise Entrepreneurs are rarely satisfied after one success, so the evolution of the Hydraulink Franchise model includes a pathway to assist motivated franchisees to continue to expand their businesses. The
For franchise enquiries, please contact Wayne Abbott, National Franchise Manager – Hydraulink Australia, Ph: 0455 478 699, wayne.a@hydraulink.com.au Or visit www.joinhydraulink.com to discover franchise opportunities near you. business franchise MAGAZINE 37
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EXPERT ADVICE: Tony Meredith | Director and Head Coach | Tony Meredith Coaching
10 Things to Consider
Before Buying a New Franchise
N E T TO P M OV E E H T N O G N I S FR ANCHI
Making the decision to purchase a franchise is one of the biggest decisions you can make, therefore it’s a decision that shouldn’t be taken lightly. People buy into a franchise model because of the benefits, such as branding, marketing, systems, training, and support, to name a few. Whilst it’s easy to get swept up in the excitement of this decision and all of the positives, there are plenty of factors that you need to consider before signing on the dotted line.
Tony Meredith, Director and Head Coach at Tony Meredith Coaching, has over 25 years’ experience working for some of the world’s largest corporations in a variety of senior sales and leadership roles. Tony Meredith Coaching started in 2018 and works with hundreds of small-medium businesses across Australia, in Franchising, Retail, Services, Manufacturing, and Property. Tony Meredith Coaching focuses on helping business owners Grow Sales, Increase Profits, and Regain Time. To contact Tony email info@tonymeredithcoaching.com.au or visit https://tonymeredithcoaching.com.au/
not the primary reason, as money is a byproduct.
As a Business Coach, I constantly see what makes a successful franchisee, therefore I’ve summarised these into my top 10 things to consider before buying a new franchise.
Your primary reason should be doing something that you love. With so many choices available, find the franchise model that you can see yourself really loving day in, day out. As Steve Jobs said, “The only way to do great work is to love what you do.”
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Why
Always start with understanding your why or reason. Why do you want to buy a new franchise in the first place? Why do you want to buy into the franchise model you’re considering? Whilst owning a franchise can be incredibly rewarding, it can also be tough and challenging, therefore you need a deep reason as to why you want to get started in franchising. Interestingly, money is generally 38 business franchise MAGAZINE
What do you want?
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Self Belief
Henry Ford famously said, “Whether you think you can or think you can’t, either way you’re right.” You must believe that you can create a successful franchise business, as ultimately, your success is up to you. As mentioned, some of the benefits of buying a franchise are access to comprehensive systems and ongoing support from your franchisor, however you’re ultimately responsible for the actions you take across your territory.
Get clear on what you want. What are your short, medium and long-term goals? Take the time to understand what you want to accomplish from your new franchise. The clearer you can be on your goals, the easier it is to know if you’re on or off track.
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In addition, you need to plan for your franchise success. Goals without plans are wishes, hence you need to build daily, weekly, monthly plans.
Don’t be impatient with your purchase, as
Conduct Due Diligence
Make sure you understand everything about the new franchise you’re buying. Your due diligence should include brand research, current franchisee feedback, the future direction of the franchise model, and so on.
failure to conduct thorough due diligence can result in costly mistakes. Purchasing a franchise also involves various legal and tax implications, therefore be sure to seek advice from trusted advisors.
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To establish the true picture of a franchise’s commercial viability you need to understand how much things cost. Things like raw ingredients, materials, equipment, labour, rent, utilities, marketing, fees (ie. franchise fees), and so on.
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Expected Turnover
Forecasting potential gross sales is essential in determining the commercial viability of a franchise, however it’s difficult to ascertain what the sales revenue will be of a ‘greenfield’ or new franchise. Instead, seek sales information from the franchisor and other franchisees. Get an understanding of what other successful franchises look like, specifically, what they did in the early stages of their franchise, along with the franchise potential.
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Understand Costs
To establish the true picture of a franchise’s commercial viability you need to understand how much things cost. Things like raw ingredients, materials, equipment, labour, rent, utilities, marketing, fees (ie. franchise fees), and so on. It’s great to have plenty of sales, but ultimately, it’s about your profit, or what’s left over after all the costs and expenses have been deducted.
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Be Purchase Ready
Buying a new franchise requires capital, therefore you need to consider how you’ll fund the initial investment. Numerous franchise models already have some financial solutions, however you can also be organised by familiarising yourself with what lending is on offer.
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Learn to Love Numbers
Franchise success is based on numbers (data), not emotion, therefore you need to be open to loving numbers. I encounter plenty of franchisees who are great at their trade or profession, but don’t understand how their business is performing.
It’s great to have plenty of sales, but ultimately, it’s about your “ profit, or what’s left over after all the costs and expenses have been deducted. ” Support and ongoing training is one of the key reasons that people decide to buy a new franchise, however you still need to be confident in asking for assistance.
Creating awareness of your franchise and the goods or services you provide is essential in your ongoing success. Let people know about what you do.
Nowadays, there are comprehensive programs available to capture all the data relating to your franchise, but, in the end, it comes down to you having a basic level of financial acumen to be able to interpret this data.
In addition, recognise that whenever you start a new franchise it will probably feel unfamiliar and uncomfortable, therefore you need to be prepared to do what’s required in order to learn new skills and constantly improve.
Whilst there are countless ways to create awareness, if you don’t take any action you’ll never sell a secret.
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Be Resourceful
You don’t have to have all of the answers, but you do need to have the desire to find the answers. This is known as ’resourcefulness’, or the ability to find quick and clever solutions.
Create Awareness
In summary, this top 10 list is by no means exhaustive, rather it’s a guide of key considerations before you hand over your hard earned money.
The franchisor should already be marketing and promoting the franchise model, however there’s also an opportunity for you to market and sell locally.
Buying a new franchise is an exciting time, filled with enormous potential, therefore just make sure that you buy into the right franchise model for you. v business franchise MAGAZINE 39
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franchisor in depth: Jim’s Pool Care
Jim’s Pool Care
The Great Resignation Jim’s Pool Care offers a wonderful opportunity for those searching for a real change in their career and lifestyle. Our Franchise owners are from all walks of life looking for a profitable business and seeking that ideal work life balance. We have now hit 125 franchisees and still have opportunities in key locations. Jim’s Pool Care have Mobile Pool Shops in all major cities around Australia and the recent growth being driven from people wanting to take control of their work/life balance and many wanting to work closer to home. Jim’s Franchise owners can sell ongoing services, retail items, chemicals and charge for their time. All these income streams ensure that owning a Jim’s Pool Care Mobile Shop gives you flexibility and multiple ways to make money from a growing industry. Services include pool cleaning, regular maintenance, pool heating, pool inspections, lighting, pool blankets, and robotic cleaners.
Why does Jim’s Pool Care continue to grow? As a key division of the Jim’s Group, Jim’s Pool Care began around 15 years ago Mr Blair believes a key success factor has been franchise satisfaction, by offering a system that is easy to follow and allows owners to build a business to suit their lifestyle and goals. Brett says, “The Jim’s Pool Care concept is a true mobile pool shop that not only provides pool maintenance but sells a full and complete range of pool equipment and chemicals. Our team are mobile pool shops on wheels. This means our franchisees can charge for their time and earn great margins on lucrative chemical and pool equipment products. You can work smarter and not harder by building long term relationships with customers”. Brett told us, “Reflecting on the last 13 years and this amazing growth of Jim’s Pool Care, I am very proud of the team and the individuals who invested in our business and invested in themselves. Their reward is they are in a business that has no limits on their growth, they have full flexibility over how hard they work, their lifestyle choices and they are in fact their own boss. It is not easy for any new business to start up and it takes hard work each time, but my team are always here and committed to be there for their journey.”
Jim’s Group – Huge National Brand As part of the Jim’s Group – there are currently over 4000+ Jim’s franchisees - making it one of Australia’s recognised brands. This strong support network is reinforced with an annual franchise convention, where franchisees fly in from all around Australia. 40 business franchise MAGAZINE
“ Our team are mobile pool shops on wheels. This means our franchisees can charge for their time and earn great margins on lucrative chemical and pool equipment products.
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The conventions are usually 3 - 4 days where they get to hear from other franchisees, industry experts and sales and motivation coaches, which provides a great opportunity to learn and network with other franchisees.
Come for a Ride-a-long After they have been out on the road and experienced for themselves how the business works and if keen to move forward, the next step is to start formalising the application.
Part of this process is selecting a territory to build the business. Usually the location is close or near to home to help reduce travel times and to help maximise chargeable hours for the franchisee. It also means that they can pop home if needed or help out with family commitments if they arise. “We have franchisees from all walks of life including trades, banking, engineering, administrative and existing industry professionals. Our franchisees don’t need to have existing industry skills as Jim’s Pool Care provides comprehensive training; they just need to be willing to try new things, follow the systems we have developed and provide great customer service,” Brett says. This in-house training starts with three days at the Jim’s Group Training Centre in Melbourne. All franchisees, from around the country, fly to Melbourne to meet Jim Penman and to learn more about the Jim’s
system and how to become successful in business. The franchisees then go back to their respective cities and states where they complete an on-the-road and face to face pool school training program which lasts approximately 15 days with their local Franchisor and trainer. Working with the best brands in the pool industry, including Astral, Zodiac, Maytronics, Daisy and Sunbather, the support that the franchisees receive from the brands with regard to ongoing training and product support is impressive. “Ongoing training is provided by using a local regional franchisor model. This is perfect for a new business owner. We have someone on the ground in every region that provides the ongoing training and support. Once trained, every month, as a minimum, the regional franchisor will contact the franchisee to provide technical and business support. There are between 6 - 8 local regional meetings a year, which allows all the franchisees in that particular region to get together and share ideas and attend a range of supplier training. This provides our franchisees with a strong support network,” says Brett. A Jim’s Pool Care franchise is a mobile retail business with huge opportunities. This system provides you with the opportunity to work outside, to work your own hours, to be your own boss and to build your business without limit. If you too would like to take control of your future, contact Jim’s Pool Care now on: 131 546 info@jimspoolcare.com.au www.jimspoolcare.com.au business franchise MAGAZINE 41
franchising feature
EXPERT ADVICE: Brian Keen | Founder | Franchise Simply
Franchising on the road… Having been through several recessions and challenging business environments in Australia over the years, the one thing I have found is that when the economy begins to emerge from a difficult period, there are enormous opportunities for the franchise sector, especially that part of the franchise sector offering simpler, low-cost service units. Moving on from the disruption of COIVD will not be an exception. I believe there will be a sharp increase in demand for low-cost, niched service franchises as we move forward. And mobile service franchises will fit into this category perfectly.
Why will demand increase? Well… 1. So many of us have had time at home through mandated or other forms of lockdown and this has given us the opportunity to reflect on the lifestyle we want for ourselves and our families 2. Associated with the lockdowns, many of us have also had stretches working from home and being with our families for extended periods of time. For many of us, the less stressful working environment and reduced commute has been a welcome relief. And the closer relationship with family has come as a welcome surprise. 3. We have not travelled or had opportunities to spend on luxuries, so savings are up, a lot 4. Many of us have seen a significant increase in the value of our homes and the resulting growth in our equity.
to work from home. We want to control our own destiny. We want the flexibility to organise our working lives so we can take the kids to swimming lessons or watch them play soccer, working around these events. And the move away from employment into a business of our own fits the bill.
What are we looking for? Well… 1. Obviously, something we can do from home, or a home base. 2. For most this will be the first step into business, and we will have no idea how to make it all work. So, we are looking for something where we will be given the opportunity and training to be successful. 3. We are also looking for something we will enjoy doing. Something that fits our abilities and interests and often something that will make a difference
5. Many have lost jobs but benefited from redundancy payment lump sums
4. Most importantly, many will be looking for something they can grow into a career path or business growth opportunity.
The net result is, so many more of us are cashed up and looking to change our lives, no longer wanting to be beholden to the 9 to 5 work in the city. Many of us are looking
Many will be happy to take on a greenfield site, work hard to build it up and then sell with a good return and more business experience and move on to the next project.
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Others will be looking for a career path within a group such as Poolwerx where franchisees start with a mobile van franchise, servicing pools. They are then given the opportunity to grow their business skills so they can manage several mobile units and then on to owning a shop, managing the
The tricks to making it work Jim really hit the nail on the head all those years ago when he set up Jim’s Mowing. 1. Niche it.
“ Build the relationship, provide training, and make sure your franchisees are doing everything correctly – your way.
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retail outlet as well as all the mobile units in the territory. Training in the best franchise groups such as this starts with the technicalities of servicing a pool but fast moves onto business coaching, dealing with staff management, financial control, local area marketing and more. Poolwerx’s long-term multi-unit franchisees (most stay on for 20 years or so) are very sophisticated business owners.
Simpler, service orientated mobile franchises fit the bill Jim’s Mowing is the archetypal franchise which fits this category. Jim’s first group just provided a lawn mowing service. No gardening. No rubbish removal. His franchisees just pushed a lawn mower each day. In those days, Jim also made sure he organised the way the group ran so the franchisor support office did all the
marketing, took all the calls, made the bookings, invoiced customers, and took payments. Support also managed all the books. Why? Because he wanted each franchisee to be mowing lawns as much as possible every day because it is the mowing which brings in the money. He didn’t want his franchisees, or their partners distracted by business tasks they would not be so good at. Or spoil their weekends doing that chore Today, Jim’s is made up of over 50 service divisions and there are over 4,350 Jim’s franchises Australia-wide.
Choose one or two elements and deliver to your ideal market. Select the most profitable and easiest part of your business to franchise. Don’t try to franchise the whole lot unless you have very good reason to, and then maybe you have more than one franchise group. Window cleaning and then gutter cleaning is a case 2. Help your franchisees focus on the job and bring in the money. Work out the characteristics of the person you want to deliver the service to your customer in a way your customer will love. This means they must have the skill and personality to get the job done well and to relate to your customer base. 3. Then take away the tasks they hate and will be distracted by or which they will ignore.
I am watching the building industry do the same thing. Specialist mobile franchises are emerging in the niched home building and renovation market. Gutter cleaning, gutter installation, kitchen cabinet supply and installation, roof restoration, outdoor pergola and decking, holiday letting, etc.
Today’s digital business environment makes this part of the job for a franchisor easier – provided you have the skills. And if you don’t, bring in staff with the skills to handle the tech. None of us with growth aspirations can handle a business today without a good technical base.
The same thing is happening in the medical industry. Remedial massage to the aged community, ear cleaning and care, home care services.
Marketing, lead generation, sales, POS systems tied into a central accounting system, stock control, customer service, central call service – the list goes on.
And in the cleaning industry I see niched franchises servicing strata units, domestic cleaning, commercial cleaning, window cleaning and so on. The list is long.
4. And provide support to your franchisees Build the relationship, provide training, and make sure your franchisees are doing everything correctly – your way. Your main job as franchisor is to train and support your franchisees to become as happy and profitable as they can possibly be. That way you will be happy and profitable too. v
Brian Keen has been involved in the franchise industry for more than 30 years and, today, is the Founder of Franchise Simply. His on-theground business experience as a multi-unit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years has been fed into Franchise Simply, helping today’s SMEs grow their business by franchising. www. franchisesimply.com.au business franchise MAGAZINE 43
