T h e
m a g a z i n e
f o r
f r a n c h i s e e s VOL 09 ISSUE 02 jan / feb 2015
AUSTRALIA and NEW ZEALAND
get a slice of the action with
domino’s
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A RECIPE FOR
success Cost effective
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busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
From the
Editor New Year, new start? This is definitely a new start for the franchising industry as the new Franchising Code of Conduct comes into effect 1st January 2015. With the biggest regulatory changes within the industry since 1998, franchisors and service providers can now start to move forward as a long period of uncertainty is put behind us. To ensure you are up to date with the changes to the Code, turn to page 16 where Bianca Sevastos from Baybridge Lawyers outlines for you, the franchisee, the main protections offer by the Code plus important reforms and changes. The start of the New Year is traditionally the time people take stock of their lives and make resolutions to change any negatives. Often these New Year resolutions focus on work and involve making changes for the better. If you no longer want to work for someone else and want the challenge of owning your own franchise, this issue is for you. Our feature, starting on page 43, focusses on the retail industry. Recent figures issued by the Australian Bureau of Statistics show that Australian retail turnover rose 5.7 per cent in October 2014, compared to October 2013. There is an array of expert advice articles, including the Executive Director of the Australian Retailers Association Russell
Zimmerman on page 54 and Brian Walker, the Founder and CEO of the Retail Doctor Group on page 66. Brian highlights how thinking strategically as opposed to tactically can give you the edge over your competitors. Domino’s Pizza Enterprises are on our front cover this issue. What is it about Domino’s that makes it the number one pizza brand in Australia? One page 10, read eight slices of advice from pizza delivery driver turned Group CEO, Don Meij and take a closer look at three of the franchisees working within the ‘People Powered Pizza’ franchise. If you are an existing franchisee or just starting out in your new venture and about to recruit staff for the first time, Saxon Marsden-Huggins, Founder of Recruit Shop asks ‘Should you check your applicant’s Social Media accounts before hiring?’ on page 24. Read his very informative article and pick up some great tips on looking past the ‘edited’ resume. As always, there is a great selection of articles throughout this magazine from leading franchising experts including bankers, lawyers, accountants and consultants. Plus franchise news and updates from the Franchise Council of Australia and the Franchise Association of New Zealand.
BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 9 ISSUE 2, january / february 2015 publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: Samantha Klimecki. accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 8790 8006 COVER IMAGE: Domino’s Pizza Enterprises TO SUBSCRIBE: www.businessfranchiseaustralia.com.au
So welcome to 2015 and if your New Year’s resolution is to become your own boss by buying a franchise business, then you have picked up the right magazine.
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Joanne Tuffy Editor
or www.isubscribe.com.au CGB PUBLISHING
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The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Business Franchise Australia and New Zealand 3
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
Contents january / february 2015 On the Cover 10 Cover Story: Domino’s Pizza Enterprises
Get a slice of the action
38 Practical Planning for your Franchise
Peter Knight & Kate Groom, Smart Franchise
28 Cost Effective Innovation
54 Retail: A Recipe for Success
Russell Zimmerman, Australian Retailers Association
80
28
16
Sharen Verrenkamp, Westpac
In Every Issue
Profiles
6
36 40 58 70 72 78
What’s New!
Announcements from the industry
12 Hit the ground running in 2015 Michael Paul, FCA Chairman 14 Westpac NZ Franchise Awards 2014/15
Graham Billings, FANZ Executive Director
43 Feature: Retail
Franchise Selection InXpress Zarraffa’s Coffee The Leather & Timber Doctor Franchising Expo Jan-Pro
94 Behind the Headlines
Jason Gehrke, Franchise Advisory Centre
96 Professional Services Listings 98 Franchise Listings 100 A-Z Franchise Directory
4 Business Franchise Australia and New Zealand
24
Bianca Sevastos, Baybridge Lawyers
24 Should you check your applicant’s
Social Media accounts before hiring? Saxon Marsden-Huggins, Recruit Shop
Allphones.................................................. 63, 100 Appliance Tagging Services. .................... 100
38
16 Franchisees better protected under the new Franchising Code
Battery World........................................... 57, 100 Bodiez 24/7 Fitness...................................... 100
Bucking Bull..................................................... 100
34 Territories: To be or not to be…
Buy Australian Properties. ..................33, 101
Cafe2U.......................................................... 2, 101
Peter Buckingham, Spectrum Analysis
46 Navigate your way to Success
City Farmers Dogwash............................... 101
Crema Espresso............................................ 101
Tania Allen, Vision Alliance
60 Strategic Alliances
Dream Doors................................................... 102
Fasta Pasta...................................................... 102
Stan Gordon, Franchised Food Company
66 Strategic Retailing: the Right Prescription in tough times
Fastway Couriers.................................. IFC, 102
Brian Walker, Retail Doctor Group
FC Business Solutions................................... 19
74 Conflict Resolution in Franchises
Fibrenew. .................................................. 23, 103
Gold’s Gym...................................................... 103
Mark Sherry, Harmans Lawyers New Zealand
80 Where to turn for Franchise Funding?
Hairhouse Warehouse.....................OBC, 103
Jump! Swim Schools................................... 104
Darryn McAuliffe, FRANdata Australia
Just CutsTM....................................................... 104
Just Lashes. .................................................... 104
Robert Graham, CEO Consulting
90 Preparing for a Cyber Attack
Adam Heitzman, HigherVisibility
16
84 Is Franchising right for me?
Luxaflex® Window Fashions...................... 105
Primal Pantry................................................... 105 RedCat. .................................................................. 1
Franchisee in Action 20 Xpresso Mobile Café 50 Snooze
Scrooz................................................................ 105 Seven Seas Seafood Café......................... 105 Shift 8....................................................................49 Shopinsurance.................................................. 31 Skewerz Kababz............................................ 105
Snapshots 32 V.I.P. Home Services 64 RedCat 88 Local Appliance Rentals
Snap-on Tools................................................ 106 Snooze..................................................... IBC, 106 Spray Pave Australia.................................... 106 Taco Bill............................................................. 106 thebestof................................................... 89, 108 The Coffee Emporium..........................53, 107 The Drug Detection Agency............... 27, 107 The Franchise Whisperer..............................23 The Interface Financial Group.................. 107
34
24
Expert Advice
also in this issue:
Walker Wayland. ...............................................93 Yellow Express....................................... 83, 108
what’snew! Tina Tower: Telstra Australian Young Business Woman of the Year Starting her business at just 20 years old, Tina Tower has followed her passion for teaching, helping children build their confidence through her school tutoring business Begin Bright. In 2008 she decided to license her business and now oversees 17 franchises along the East Coast of Australia. Tina was announced the winner of the Telstra Australian Young Business Woman of the Year in December and in her Award acceptance speech she acknowledged that in business there’s often more pitfalls than there are ups. To build enough capital to chase her business dreams, Tina, her husband and her two young boys rented out their home and moved in with her parents for two years; when she decided to start franchising it took seeing seven different lawyers before she found one that would agree to take her business idea on. An ambitious, bubbly female entrepreneur – Tina’s aim is to grow the business to 200 centres.
Tina’s advice to anyone looking to start their own business is, “Absolutely go for it. Trust your heart, it always seems to know the right thing to do. Know your limitations then go about to defy them. Be bold, be brilliant and always let your light shine.”
BHG have announced that they will be franchising new restaurants to meet demand moving forward. Owner John Gdanski explains, “After numerous approaches from within the food industry, we’ve decided to expand the brand further, and believe that franchising is the best way to grow whilst ensuring the Pinocchio quality our customers have come to enjoy, remains unchanged.” The decision marks a huge opportunity not only for BHG, but also for anyone interested in entering the hospitality industry with an established and endeared Melbourne brand.
Pinocchio’s Next Chapter
Through Wollermann Business Brokers, BHG have released Franchise Information outlining the franchise opportunity as well as their ideal candidates – “enthusiastic, energetic people with a passion for hospitality” but who need not have past hospitality experience.
For more than 43 years, Melbourne dining institution Pinocchio has delighted customers with its rustic Italian fare, family-friendly surrounds and inviting Italian hospitality.
Franchisees can expect a fully operational turn-key business, complete with restaurant design fit-out, equipment, hospitality management training, menu design, access to central buying and a carefully selected restaurant location.
With locations in Toorak and Hampton, the last four decades have seen the business grow in popularity and evolve with the times thanks to astute decision-making by owners Bayside Hospitality Group (BHG).
6 Business Franchise Australia and New Zealand
Franchisees vote first external Director onto Board of national retailer Panel, and an adjunct lecturer at the Asia-Pacific Centre for Franchising Excellence. The network is unusual among franchise brands in that it is owned by its franchisees, who voted Gehrke onto the board as its first director from a non-paint industry background. “The board recognised that to take the business to the next level we needed to add a fresh perspective to the board with core skills in franchising, strategy and critical analysis,” says Inspirations Paint chairman and multi-unit franchisee Glenn Ringrose. “A number of our national office personnel, including our CEO had attended several of Jason’s franchise education events over the last few years, and after a period of due diligence on each other, we extended the invitation to Jason on the condition that it was still subject to a vote by the franchisees.” Australia’s largest network of franchised paint stores, Inspirations Paint, has appointed franchising specialist Jason Gehrke to its board of directors for a two-year term. Gehrke has more than 20 years’ experience in the franchise sector and is the founder of franchise education and consultancy business the Franchise Advisory Centre. He is also the deputy chairman of the Franchise Council of Australia, a member of the Australian Competition and Consumer Commission’s Franchise Consultative
“It is a great honour to join the board of Inspirations Paint and to have received the support of the franchisees in this appointment,” says Gehrke. “This is a business with a great history and enormous potential for an even brighter future as it continues to provide the best range and the highest levels of service and expertise to trade painters and weekend renovators alike. I look forward to contributing to its continued growth and innovation.” Gehrke stated. Inspirations Paint was founded in 1979 and has 134 stores across Australia with an annual turnover approaching $300 million.
BRIDGESTONE REACHES 300 STORES MILESTONE Managing Director Andrew Moffatt said the milestone highlights the strength of the brand and the Bridgestone franchise network.
Bridgestone’s retail network has gone from strength to strength since refreshing its offering, with the company recently reaching 300 franchise and license stores in Australia. The company’s franchise business began with Bridgestone Tyre Centres in 1986 and expanded in 2006 with the launch of Bridgestone Select franchised stores and licensed Bridgestone Service Centres.
“Being associated with the industry’s strongest brand is a good start but if that brand is leveraged through a truly great franchise system, it becomes an unbeatable combination. It’s heartening to know that franchisees understand the power of the Bridgestone brand, continue to respect our unique business proposition and want to work with us to deliver an outstanding customer experience,” Mr Moffatt said. Scott Brereton, owner of the 300th store – Bridgestone Select Grafton – said the Bridgestone Select model offers a better experience for customers and more support for franchisees. “From a customer point of view the Bridgestone Select concept is miles ahead. It looks friendlier, more professional – it’s an
easier way to do business,” Scott said. “From a franchisee point of view, the support offered is great. There are parameters in place to look out for you and mechanical, retail and management teams behind you supporting your store.” Mr Moffatt said Bridgestone was extremely proud to have reached 300 franchise and license stores. “We truly believe our network is the best in the industry, with processes and systems honed over 30 years of retailing in Australia,” Mr Moffatt said. “As it has evolved, our franchise network has continued to raise the bar for the Australian tyre industry and we’re confident 2015 will see another strong year of growth.” The now 300-strong franchise and license network consists of 139 Bridgestone Select stores, 148 Bridgestone Service Centres and 13 Bridgestone Tyre Centres.
Business Franchise Australia and New Zealand 7
what’snew! EXPLORE EVERY OPPORTUNITY AT FRANCHISING EXPO One of the most challenging things for entrepreneurs planning to start or buy a business is deciding which one best suits their skills, budget and lifestyle. That’s why the Franchising and Business Opportunities Expo, which opens in Sydney 27-29 March, is so popular year after year – it showcases a wide range of businesses under one roof, as well as offering expert advice and information. “Events like the Franchising and Business Opportunities Expo allow a close up look at brands you may be interested in,” says the Franchise Council of Australia’s General Manager, Kym De Britt. “One of the fundamental ingredients for success as a franchisee is brand passion and culture fit. Being able to speak face to face with franchisors and compare several businesses under one roof is incredibly valuable.” As always, a wide range of industries will be represented at the Sydney Franchising & Business Opportunities Expo including renowned brands such as The Coffee Club, La Porchetta, Minuteman Press, Endota Spa and Poolwerx. The Sydney Franchising & Business Opportunities Expo is on 10am5pm Friday 27 March – Sunday 29 March 2015 at the Royal Hall of
Industries at Moore Park. Pre-register at franchisingexpo.com.au for a discounted entry fee. Sydney’s show will be followed by the Brisbane Franchising & Business Opportunities Expo 18-19 July at Brisbane Convention & Exhibition Centre, and the Melbourne Franchising & Business Opportunities Expo, 21-23 August at Melbourne Exhibition Centre.
Sherpa Kids International Launches in Ireland St. Joseph’s National School, Clonakilty has become the first school in Ireland to set the trend in offering primary school going students after school care with Sherpa Kids Ireland. Sherpa Kids Ireland aims to roll out the service throughout Ireland within the next 10 years through over 50 franchisees, creating more than 2,000 new jobs servicing over 10,000 families. Sherpa Kids International was founded in Australia in 2011 off its sister company from New Zealand which was founded in 1996, in response to the huge demand for professional outside school care services which promotes and caters for each individual child. Since its inception it has expanded to eight countries with Ireland becoming the latest to roll out the successful model under the directorship of Clonakilty based John Miles who has become Country Master Franchise, Managing Director of the Sherpa Kids franchise in Ireland.
8 Business Franchise Australia and New Zealand
Speaking of Sherpa Kids Ireland, Managing Director John Miles said, “I am thrilled to launch Sherpa Kids Ireland with St. Joseph’s NS as the pilot school. As a dad myself it is important for me to know that children will be safe and happy among trained professionals and classmates.” Vicki Prout, Co-Director, Sherpa Kids International who is based in Australia was also on hand to officially launch Sherpa Kids Ireland at St. Joseph’s NS. Speaking at the launch she said, “Thousands of parents are frantic for affordable, high quality outside school hours care. More than ever, more parents are employed or are working more demanding hours and transport issues can make the school-to work, work-to-school transition a stressful daily chore. Sherpa Kids has answered the demand for care with a franchise model that offers school communities the best of both worlds; strong expertise in childcare and a local heartbeat with local leaders that puts kids and families first.”
BING BOY EXPANDS INTO WESTERN AUSTRALIA Bing Boy has launched its urban Asian street food concept into Western Australia with bold plans to open 10 new stores across Perth over the next two years.
with various fillings, have been enjoyed as popular street food in China for centuries but were only introduced into Australia by Bing Boy three years ago.
The fresh food restaurant chain and its healthy Chinese-style wraps known as “bings” have enjoyed outstanding success since the company was established in Adelaide in 2011, with 33 stores now located across South Australia, Victoria and Queensland.
The company now provides employment for approximately 350 staff in company and franchisee stores across Australia, with dozens of additional jobs set to be created in WA as Bing Boy continues to grow.
The first WA store in the Galleria Shopping Centre in Morley will become Bing Boy’s 34th Australian store and represents the next major step in the organisation’s national expansion plans. “We see enormous potential for Bing Boy in the Perth market,” said Bing Boy Managing Director Ming Ma. “We already have 12 stores in SA, 18 in Victoria and three in Queensland, so we’re really happy that our early success has now enabled us to move into a fourth state. “We have high hopes for Bing Boy in Western Australia and believe the local market is strong enough for us to introduce up to 10 new stores across Perth over the next two years.” Bings, a traditional thin wheat omelette wrap
“We’ve been overwhelmed with the early success of our bings, which consumers have embraced as a quick and healthy lunch or dinner option on the go,” said Mr Ma. “From a business point of view, our growth has also given some fantastic opportunities for people to establish a franchise and run their own Bing Boy business, which will again be the case in Western Australia as we identify more new store locations across the city. “And as each new store requires new staff members, we’re also helping provide new jobs and new training and career pathway opportunities in the retail food sector, which is extremely satisfying. “Our grand plan is to one day have Bing Boy stores operating in every state and territory in Australia, and then from there who knows. A Bing Boy store outside Australia is certainly a possibility one day.”
Jump for Joy with The Bright Eyes Organisation Working alongside her husband Steve in the franchising industry, Karen Wren has been involved with a number of successful retail business models and has gained significant experiences in building and nurturing lasting relationships. Using these experiences, Karen has established not for profit The Bright Eyes Organisation community group who partner with established charities dedicated to rescuing children from the trafficking industry. and is looking for anyone who loves a challenge. On 21st February Bright Eyes are hosting a skydiving day to raise $25,000 for a Rescue home proving aftercare for children rescued in Mumbai. You can help by raising as much as you can from friends, family and work mates to help them reach their goal. Get ready to jump! To register, email Karen at info@brighteyesinc.org or call 0419 155 758.
Business Franchise Australia and New Zealand 9
cover story: Do m i n o’s Piz z a En t er pr ises L i m i t ed
get a slice of the action with
domino’s
Eight slices of advice The pizza delivery driver turned Group CEO, Don Meij, on thriving in the world of franchising 1. Passion – You need to have passion for what you do. We see ourselves as the Pizza experts and focus all of our energy and passion into making and delivering the hottest, freshest, tastiest and most innovative pizzas in our market. 2. The right attitude – At Domino’s we provide extensive training and support to all of our franchisees. That’s what makes it such a great model, particularly for people who haven’t had experience running their own businesses before. However, having the right attitude means the difference between success and failure in this industry.
7. Commitment – As well as instilling a commitment to outstanding product, service, image and safety, we also encourage franchisees to make a commitment to foster positive relationships with the communities they serve, delivering local people something more than just great tasting pizza. 8. People person – You need to be a people person to succeed in this industry. A lot is said about operations and having the ability to multi-task but at the end of the day, you need to be good with people. This will transcend into positive staff morale, productivity and happy customers. Domino’s Pizza Enterprises Limited (DPE)
3. Hands on approach – The misconception that exists in the food and retail market that you can invest your dollars and sit back and watch it grow is far from the truth 4. Trust in the brand – It’s much easier to invest in a brand that is proven, trusted and established. If it’s your first time in the franchising model it’s much better to align with a recognised brand. 5. Hard work – It’s not easy! If you are looking for easy work, don’t enter the franchising world. Be prepared to roll your sleeves up and get busy. This industry is all about having a strong work ethic. 6. Innovation – Another misconception about the franchising world is if you buy into a business such as Domino’s you are hamstrung and limited when it comes to ideas and creativity. That couldn’t be further from the truth. When you buy into Domino’s you are buying into an established brand that welcomes innovative ideas as you are the owner of your own business.
10 Business Franchise Australia and New Zealand
is the master franchisor for the Domino’s Pizza brand in Australia, New Zealand, France, Belgium, The Netherlands and Japan. Across these six markets, DPE and its franchisees currently operate over 1300 stores and sell over 90 million pizzas annually. Over the next four years, Domino’s aims to open its 800th store across Australia and New Zealand. Domino’s offers an impressive and highly developed suite of services including site selection, lease negotiation, store fit out, preopening training, co-ordinations of suppliers, group purchasing power, store appraisals, ongoing training and marketing promotions. Don’t miss your opportunity to get a slice of the action!
What is it about Domino’s Pizza Enterprises Limited (‘Domino’s’) that makes it the number one pizza brand in Australia? Simple, it is People Powered Pizza! Pizza pair are strongest together Profile: Deb & Darren Ramm Stores: East Toowoomba, Westridge and Wyalla
When you work toward something for 30 years, it has to be driven by passion and determination for success. Deb and Darren Ramm have those qualities in spades and it’s their hard work and business sense that has seen each grow to become successful franchisees and corporate leaders in their field. The pair met at work at Domino’s Wyalla in 1998 and married in 2004, combining their love of the company toward the joint goal of owning and operating their own store in Deb’s home town of Toowoomba. In 2009, their dream became a reality and the couple purchased the Wyalla store where they first worked together. “Working together offers us the best of both worlds, spending more time with each other while pursuing our dream and seeing our business that we have together grow,” says Deb. “We believe that the success to working together as a married couple is to let each other excel in our own area of expertise and not step on each other’s toes – it’s easy to spend so much time together when you are best friends.” The couple has won several Domino’s awards together including Franchisee of the Year, the Leadership Eagle Award and Australia and New Zealand Pizza Making Champions of the year in 2012. Deb says the
rewards of franchise ownership are neverending. “The Domino’s network is full of amazing people, from an experienced leadership team to inspiring franchisees,” she said.
Domino’s is a way of life Profile: Leroy Day Stores: Medowie, Coffs Harbour, Kempsey, Port Macquarie, Raymond Terrace, Thornton, Toormina Persistence and a never give-up attitude have been a recipe for success for Domino’s franchisee Leroy Day. “I eat sleep and breathe pizzas, I always have my uniform on,” says Leroy, a passionate storeowner of more than 13 years. “I also try to be the pizza mayor of my local area, sponsoring as many sports and community groups as I can.” Believing in the value of work/life balance Leroy says working in his own franchise also allows him time to pursue his love for motorcycles and car racing. While Leroy has a wealth of business knowledge to share, he is also supported by the vast network of Domino’s franchisees, whose network extends around the globe.
Franchise business all about life balance Profile: Justin Munro Store: Waikiki and Baldivis WA Being a Domino’s franchisee is both a way of life and a lifestyle choice for Justin Munro. “The first couple of years setting up your own business is hard work, lots of blood,
sweat and tears, but once you have a stable crew and management team, the work/life balance is outstanding,” he says. “I have four small children and I want to spend more time with them and my wife. Being a franchisee has changed our family’s lifestyle massively. The ability to pick your own hours, especially with young children, is priceless.” Justin made Dominos Waikiki, WA, his own building the business rapidly over the years, Justin’s hard work resulted in significantly increased sales numbers. “I didn’t think buying a pizza franchise that I would become more of a trainer of people / guidance counsellor than a hands-on pizza guy, but I love it.” Building ties with community is a large focus for Justin, who has a long-standing relationship with the Western Australian Special Needs Kids Christmas Party, as well as various local sporting teams. “Serving the public and getting a chance to shape young people’s lives has been a wonderful journey and I’m looking forward to the future,” he says. To find out more about Domino’s franchising and the stores that are available please contact: Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 888 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise
Business Franchise Australia and New Zealand 11
fr anch ise cou nci l o f aust r a l i a
Due diligence
will help you to hit the ground running in
By all rights, 2015 will be a fantastic year for franchising.
Though there are new provisions to comply with, the new Franchising Code of Conduct, implemented on the first of this month, holds the same fundamental principals associated with best practice franchising.
The last two years have carried the burden of legislative uncertainty and a feeling of the sector being in limbo. Despite this, Griffith University recently released research showing nine per cent revenue growth in the sector for the same time frame. Now the legislation has been implemented and things are far more certain and concrete.
The very nature of franchising when done well is win-win. The business model, along with the importance of brand integrity both to the head office and other franchisees means the franchisor is heavily invested in your success.
The Griffith research also showed a consolidation of brands (from 1,180 down to 1,160) from 2012 – 2014, while the number of franchised business units increased (from 73,000 to 79,000). Though some brands have ceased franchising, those with solid business systems, a key focus on training and support and an investment in brand awareness across the network, continue to ensure franchising grows at a rate that surpasses the wider small business community.
In order for a franchisor to succeed, they rely on satisfied and profitable franchisees, both from a royalty perspective, but also from a brand growth perspective. That’s why, when researching a brand, it is incredibly important to speak to franchisees currently invested in the system. You should never commence negotiations with a brand without a solid understanding of what your day to day life would look like. A good franchisor will make contact details of several franchisees available to you.
12 Business Franchise Australia and New Zealand
Though much of your initial research will take place online, another fundamental part of the discovery process is to talk to your prospective franchisor face to face. By doing this, you will get a feel for culture of the brand, what they’re looking for in a franchisee and whether you fit that mould – and similarly, if that brand fits your expectations. A great place to do this is the Franchising and Business Opportunities Expo. Held across the Eastern seaboard each year, the expo brings together franchisors from a variety of industries as well as legal professionals and other service providers from the sector. Even if the brand you are interested in is not exhibiting you should attend to get a better grasp of the business format and the way different brands have set up their model. There are legal and accounting professionals on hand to help you better understand your rights and obligations and as always, the
“The very nature of franchising when done well is win-win.” Michael Paul | Chairman Franchise Council of Australia
Franchise Council of Australia will help you understand how to do your research and how to get the best out of your day at the expo. If you’re thinking about investing in franchise it is really an opportunity you should not miss. 2015 dates can be found at www. franchisingexpo.com.au
Celebrating Success In my last column I congratulated some of the regional winners at the FCA Excellence in Franchising Awards. These awards are a fantastic opportunity to showcase all the great things going on in our sector. The national winners were announced at the culmination of the National Franchise Convention in October. Held at Allphones Arena to a capacity crowd, the MYOB FCA Excellence in Franchising Awards winners can be found below. On the same night we also inducted a new member into the Franchise Hall of Fame. I would like to take this opportunity to welcome Greg Nathan, Director and Founder of Franchise Relationships Institute to the Franchise Hall of Fame. Greg has worked in franchising for more than 30 years, starting as a franchisee with Brumby’s, before founding FRI, through which he has revolutionised the way we look at the franchisee-franchisor relationship. He has provided invaluable research to brands starting out, in the growth phase and expanding overseas. He is a well-known and revered speaker on all things franchising and a tireless contributor to the Australian sector. I cannot think of a more fitting inductee for 2014.
MYOB FCA Excellence in Franchising Awards 2014 Winners
Franchise Woman of the Year Sharon Jurd, HydroKleen Australia Sponsored by Battery World
Australian Established Franchisor of the Year
Field Manager of the Year
Wendy’s Supa Sundaes Sponsored by 7-Eleven Australia
Supplier of the Year
Australian Emerging Franchisor of the Year
Excellence in Marketing
Danika Heslop, Jamaica Blue
Shift8
Shingle Inn Sponsored by 7-Eleven Australia
OPSM Sponsored by American Express
Franchisor Social Responsibility
International Franchisor of the Year Specsavers Sponsored by LeaseEagle
Multi-Unit Franchisee of the Year Brad and Matt Walker, Grill’d Camberwell, Knox and Southland
Franchisee of the Year, two or more staff
Specsavers Sponsored by Battery World
Franchisee Community Responsibility and Contribution David Price, Grill’d Cairns Sponsored by Crea Legal
Franchise Hall of Fame Inductee 2014 Greg Nathan, Franchise Relationships Institute
April and Tony Carnie, Nicki Nesbitt and Wiesiek Lewandowski, Shingle Inn Mount Ommaney
Franchisee of the Year, less than two staff Rowan Prendergast, OPSM Waurn Ponds
Franchisee of the Year, less than two staff – Rowan Prendergast, OPSM Waurn Ponds
www.franchise.org.au
Business Franchise Australia and New Zealand 13
fr anch ise associ at i o n o f n e w ze a l an d
WESTPAC NEW ZEALAND FRANCHISE AWARDS 2014/15
Winner Focussed on Customers! The Westpac New Zealand Franchise Awards, held at the Crowne Plaza Hotel, Auckland on 15th November and attended by more than 230 members of FANZ and their guests, is the annual showcase for outstanding performers in franchising and suppliers to the franchising sector. New categories for 2014/15 recognise excellence in community involvement and
also individual performance by support staff. Once again, the awards attracted a quality entry and all those who reached finalist status were commended by the Judges. The entries for the Westpac New Zealand Franchise Awards are independently evaluated and judged under the internationally recognised Baldrige criteria for business excellence and administered by the New Zealand Business Excellence Foundation. The highly contested Westpac Franchise System of the Year award went to Specsavers New Zealand Limited in what was their first ever entry to the Awards. In the judges’ opinion, this was a challenging decision because the finalists were so closely matched. However, the systems that Specsavers have developed, their customer focus and their successful business partnerships gave them the edge to take out this award. This was underpinned by their excellent results,
14 Business Franchise Australia and New Zealand
moving what is a high cost product into a volume business through their strong customer focus. The Westpac Franchisee of the Year award was won by The Coffee Club, Bethlehem for the third successive year. The judges commented that this was another challenging decision for them, but franchisees Ivy and William Joe have stepped up performance to yet another level. By combining a proven comprehensive franchise system with innovative ideas they continually retain and expand their customer base. The judges were also impressed by the way they give back to the community that they operate in. Simon Power, Westpac’s General Manager, Business Bank and Wealth said, “Westpac has sponsored the Franchise Awards for 20 years and during that time we’ve seen the industry grow and enhance its reputation both locally and abroad. Franchising is a key
The 20th Westpac New Zealand Franchise Awards Winners: SUPREME AWARDS Westpac Franchise System of the Year – Specsavers New Zealand Limited Westpac Franchisee of the Year – The Coffee Club, Bethlehem
MAIN CATEGORY AWARDS Retail, Food and Beverage Best Franchisee of the Year sponsored by Super Liquor Holdings & Lion – The Coffee Club – Bethlehem Retail, Food and Beverage Best Franchise System of the Year sponsored by Super Liquor Holdings & Lion – Specsavers New Zealand Limited Home & Lifestyle Services Best Franchisee of the Year sponsored by Yellow, – Hire a Hubby - Kapiti Home & Lifestyle Services Best Franchise System of the Year sponsored by Yellow – Green Acres
SUB CATEGORY AWARDS driver of growth in NZ and as the industry has grown in sophistication events such as these serve as a platform to identify strong franchise systems for our business customers and create marketing opportunities for our franchisors’ clients.” Ian Robertson, Chairman of FANZ said, “In entering the Westpac New Zealand Franchise Awards each entrant opens up their business to the scrutiny of the evaluators and judges. Through this process those entrants learn more about their business, its strengths and its weaknesses to enable them to chart the directions for their businesses to follow for ongoing success. Participants in the Westpac Franchise Awards are key contributors to the ever growing pool of business knowledge and acumen within the wider franchise industry of New Zealand”. Brett Marsh, Chairman of the New Zealand Business Excellence Foundation commented, “It is important to acknowledge all the applicants and award winners for whom tonight is a milestone in their journey; the volunteer evaluators who give of their time freely and generously, but who in turn are inspired by the organisations that invite them to share their lives for that moment; and the judges who bring their extensive experiences of business to the process in moderating the results. To all of those involved, thank you, or congratulations, or both”.
Retail Best Franchisee sponsored by Super Liquor Holdings & Lion – Mr Minit – Downtown Food and Beverage Best Franchisee sponsored by Super Liquor Holdings & Lion – The Coffee Club – Bethlehem Retail Best Franchise System sponsored by Super Liquor Holdings & Lion – Specsavers New Zealand Limited Food and Beverage Best Franchise System sponsored by Super Liquor Holdings & Lion – The Coffee Club Franchising (NZ) Ltd. Home Services Best Franchisee sponsored by Yellow, – Hire a Hubby – Kapiti Home Services Best Franchise System sponsored by Yellow – Green Acres Lifestyle Services Best Franchisee sponsored by Yellow, – Just Cabins - Waitakere Lifestyle Services Best Franchise System sponsored by Yellow – Just Cabins
SPECIAL AWARDS Service Provider of the Year sponsored by NZME – Franchize Consultants Community Involvement Franchisee of the Year sponsored by Waipuna Hotel & Conference Centre – sKids Paraparaumu/Otaki Community Involvement Franchise System of the Year sponsored by Waipuna Hotel & Conference Centre – Bedpost New Zealand Retail, Food & Beverage Field Manager of the Year – Under $500k sponsored by Franchise Accountants – Damion Kaukau, NZ Post KiwiBank Retail, Food & Beverage Field Manager of the Year – Over $500k sponsored by Franchise Accountants – Natalie Newton, Harrisons Carpet One Home & Lifestyle Services Field Manager of the Year – Over $500k sponsored by Franchise New Zealand magazine & website – Andrew Kidd, Poolwerx Corp. Pty. (Highly Commended).
Business Franchise Australia and New Zealand 15
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Franchisees Better Protected
Under New Franchising Code The Franchising Code of Conduct which regulates franchise relationships in Australia has now changed in one of the most significant reviews since its inception in 1998. The revised Code aims to create a fairer and more balanced playing field for those partnering under the guise of a franchise. This article now aims to outline for franchisees the main protections offered to them by the Code and the primary relevant reforms and changes.
New Disclosure Provisions The main disclosure requirements on franchisors remain. Franchisors are still required to provide prospective franchisees, at least 14 days before any non-refundable payments are made or before franchisees are to sign any agreement, a current disclosure document setting out key information about the franchise, a copy of the franchise agreement in the form in which it is to be executed and the Code.
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“The revised Code aims to create a fairer and more balanced playing field for those partnering under the guise of a franchise.” Bianca Sevastos | Partner BAYBRIDGE LAWYERS
In addition: • franchisors must now disclose information about online trading to prospective franchisees to allow them to more fully assess the viability of the business and franchisors are now required to provide to prospective franchisees an information sheet which provides an overview of the advantages and risks of franchising generally, in a form set out by the Code. • Where a franchisee leases or occupies premises from the franchisor, the franchisor must now also disclose any incentives or financial benefits which the franchisor is entitled to receive as a result of the lease. Potentially, this could include details of any fitout contributions or other payments the franchisor has received as a result of the lease, introducing far more transparency in relation to occupancy arrangements. • Failure by franchisors to comply with their disclosure requirements now also attracts new civil penalties of up to $51,000. However, franchisors are no longer required to summarise the main provisions of the franchise agreement in the disclosure document and in tiered franchising arrangements, head franchisors no longer have disclosure obligations toward subfranchisees – a change which could limit the ability of franchisees to assess the viability of the overall franchise group. Overall, these changes are intended to offer franchisees more valuable information prior to their entry into a franchise agreement.
New Duty of ‘Good Faith’ One of the most important new additions for the protection of franchisees is an express so called ‘duty of good faith’ incorporated into the Code. Good faith duties put obligations on both franchisees and franchisors to effectively cooperate and mutually act in the best interests of their relationship and each other and to avoid actions which, while they may be permissible at law generally, might be unduly harsh or damaging if the other party has not had a chance to try to address the issue. While franchisors and franchisees were already under common law obligations to act in good faith and cooperate with each other, the amended Code has included an additional, express obligation not only during the term of the franchise agreement, but also during the discussion and negotiating phases of a new franchise relationship and in any disputes which might arise between a franchisor and franchisee under the franchise agreement. This is a significant additional obligation on both franchisors and franchisees which both franchisees and franchisors need to be aware of. The review recommended that the good faith obligation not be specifically defined and the Government has opted not to define the obligation in the Code, although some limited guidance is given. Franchisees and franchisors need to ‘act honestly and not arbitrarily’ and ‘cooperate to achieve the purposes of the franchise agreement’. As a result of this change, franchisors in particular need to be careful in drafting their franchise agreements to make sure
that provisions of the agreement cannot be construed as giving them the power to make decisions or take actions which could be seen as ‘arbitrary’ – a welcome additional protection from the perspective of franchisees which should see franchisors more careful to provide rationale for any powers set out for them in their franchise agreements.
Stronger Enforcement Provisions In a bid to improve compliance, the Government has introduced new penalties for breaches of the Code of varying severity. Serious breaches of some provisions could attract civil penalties of up to $51,000. The ACCC has also received new powers to issue infringement notices for breaches of the Code for fines of up to $8,500, without the need for a court order, although payment of the infringement notice does not amount to admission of a breach of the Code and appeal against these may be lodged with the ACCC. The ACCC can also utilise its audit powers to obtain any documents the franchisor has relied on in its disclosure statements and there is an obligation on franchisors to keep all such documents. The penalties, although these may not be issued lightly, will most certainly put franchisors on notice of the immediate consequences without the franchisee having to take any action and incur any costs.
Limitations on Waivers The new Code also limits to what degree a franchisor can require a franchisee to
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“Prospective franchisees can feel more reassured than ever that the franchise arrangements they are entering into are required to be fully disclosed.�
provide the franchisor a general release of liability or a waiver of any representations made. This provides extra onus on franchisors to ensure that any representations they make are accurate and correct. In the past franchisors would often require franchisees to sign waivers with respect to any prior representations made by the franchisor. It is unclear what effect this practice will now have as franchisees have always had the protection of the law in circumstances where the waivers may have been unreasonable.
New Dispute, Jurisdiction and Costs Provisions Disputes and jurisdiction, including mediation, must now be based in the state or territory in which the franchised business itself is located, and must not be outside of Australia. This is a significant departure from established practice, which would generally seek to set the jurisdiction in the state in which the franchisor operates. Similarly, the Code now provides that a franchise agreement must not include a clause that requires a franchisee to pay the franchisor’s costs in relation to settling a dispute under the franchise agreement.
Capital Expenditure Restrictions The new Code places franchisors under significant new obligations to justify any capital expenditure required of franchisees,
as well as any other payments and their rationale, and otherwise prohibits any requirements for significant capital expenditures from franchisees. While it is unclear how these changes will translate into practice, the new Code provides significant additional protections to prospective franchisees and transparency as to capital costs which they may be required to pay.
Disclosure Requirements for Non Renewable Franchise Agreements The Code now requires that where a franchise agreement does not provide for an option to renew the franchise, clear and bold statements must be provided to the franchisee to that effect. These changes are in line with the overarching theme of greater disclosure to franchisees and greater transparency in franchise arrangements.
Conclusion The overall effect of the new Code is one of greater certainty and transparency for franchisees, with significant new rights and safeguards intended to protect franchisees and significant new obligations upon franchisors. Prospective franchisees can feel more reassured than ever that the franchise arrangements they are entering into are required to be fully disclosed, and that significant protections are afforded to them
18 Business Franchise Australia and New Zealand
to make sure the commercial arrangements required of them are fair and reasonable. Nonetheless, a prospective franchisee must be vigilant against laxity, and must always undertake comprehensive due diligence and obtain professional advice. In this respect the new Code has not changed the importance of quality, qualified advice prior to entering into such important documents. Baybridge Lawyers recommends that all prospective franchisees seek qualified and professional advice prior to signature of any franchise documentation. Bianca Sevastos, a Partner at Baybridge Lawyers, specialises in franchising and licensing, advising on all aspects of franchising industry compliance with the Code, day-to-day management of franchise systems and relationships with suppliers and franchisees. Bianca has extensive experience and advises on a range of national and international transactions, industry master and area development rights and advises both franchisors and franchisees in dispute, obligations under the Franchising Code of Conduct and the Competition and Consumer Act. If you would like a free consultation, contact Baybridge Lawyers at: P: 02 8413 3682 E: info@baybridge.com.au W: www.baybridge.com.au
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FR A NCHISEE IN ACTION : X PRESSO MO B ILE CA FÉ
SETTING THE BENCHMARK:
It’s not good, it’s great!
With a mobile coffee franchise system that’s exciting, cost effective and rewarding all at the same time, now is the perfect time to join THE ultimate mobile coffee experience. Xpresso has been around since 2002 and was the first company in Australia to put a coffee machine in a van. In 2013 the Xpresso concept evolved and Xpresso Mobile Café was launched. Under the guidance of Managing Director Jonathan Payne, alongside Xpresso founder Darren Schultz, Xpresso Mobile Café is aiming to establish itself as Australia’s number one mobile coffee system.
Assisting Jonathan and Darren on this journey to becoming number one are two of the new franchisees that have joined the system this year. Chris Terrell from Adelaide, South Australia and Robyn Simpson from Bribie Island/ Caboolture, Queensland have something in common. They were both looking at another mobile coffee franchise system before coming across Xpresso Mobile Café. Chris says, “After working in the printing industry for a long time, I’d had enough and needed a change. I saw a mobile coffee van at a shopping centre one day and started talking to the franchisee. This ignited the flame to work for myself. I went through the initial process with the other franchise system and was very close to signing with them, when at the last moment I came across
20 Business Franchise Australia and New Zealand
Xpresso Mobile Café, liked what I saw and what was being offered. “With a lower entry cost and exceptional support on offer, I also liked that fact that they were an up-and-coming franchise with no vans already in Adelaide. This meant that I could choose my preferred territory and work in my own neighbourhood.” A change of lifestyle was also the deciding factor for Robyn she says. “Having had a full time job as an office manager for years, I was over the whole office environment, sitting behind a computer, on the phones and managing people. I just needed a change. “I looked into a mobile coffee franchise as there was a lovely lady I used to get my coffee from every day, she must have seen that I’d had enough and needed a change in my life as one day, she saw me amongst the crowd of people, she looked me in the eye
“The vans stock a wide range of the finest Di Bella Coffee beans that can be ground and bagged ‘on the spot’.” and told she was selling her business. “That set me thinking and a few months later, I thought this could be the change I needed, and that maybe I could do this! “She worked for another mobile coffee franchise but after I looked online, made a few phone calls and sent a few enquiry forms, I realised that Xpresso Mobile Café were the ones for me.”
Why should you join Xpresso Mobile Café? With the head turning, fully customised and signed Mercedes Benz Vito van, complete with battery/inverter, refrigeration, commercial espresso coffee equipment and a coffee bean showcase with separate grinder, the business model and franchise system is proven and designed to help you operate your own successful business.
The vans stock a wide range of the finest Di Bella Coffee beans that can be ground and bagged ‘on the spot’. Each mobile café has a coffee bean display cabinet from which customers can choose their favourite blend, which can then be custom ground, weighed, bagged, heat sealed and then purchased, on the spot. Chris says that after becoming a franchisee for Xpresso Mobile Café in July 2014, he is realising just how exceptional the Di Bella Coffee is. “Working within my franchise during the last six months, my belief in the quality of the coffee has grown even stronger. So many people comment about the taste and quality of the coffee and although I do take care to make the coffee just right, the Di Bella coffee bean is a huge advantage.” Di Bella Coffee supplies coffee to more than 1,200 cafés and restaurants around Australia
and it is rapidly becoming one of the most popular online coffee retailers in Australia Xpresso Mobile Café have chosen to partner with Di Bella Coffee for the superior bean quality and also because of their wellestablished ‘Crop to Cup’, green bean buying program. The program focuses on building skills locally, providing job security and growth opportunities for local workers, upholding ethical practices and encouraging sustainable farming. The initiatives that the program supports not only improve the quality of green beans, but the quality of life for those who produce them.
Quality of life Robyn is also experiencing a better quality of life, swapping her heels for runners. “Working 10 - 11 hour days within an office environment I never seemed to see my daughter. I was missing out on so much, school assemblies, sports days, etc and being an Xpresso Mobile Café franchisee allows
Business Franchise Australia and New Zealand 21
FR A NCHISEE IN ACTION : X PRESSO MO B ILE CA FÉ
“Each mobile café has a coffee bean display cabinet from which customers can choose their favourite blend.” me flexibility within my working day. I start at 7am and am home by 12.30pm during the week. I can go for bike rides and do homework, all things that I never seemed to have the time to enjoy with her. “My regular working day consists of my coffee deliveries to local businesses but I also do markets, sporting events, corporate events etc. At the weekend its money for jam as there are so many events I can pick and choose which I want to do. I’m making the same money but working half the hours, compared to my previous role.” Chris’ work/life balance has also radically changed. After working in the printing industry for many years, he’s finally able to take a family holiday during the summer school holidays with his two young children.
day average. This is my core Monday-Friday and at the weekend, if I choose to, I attend corporate events etc.”
Smooth pocess Both Robyn and Chris say that once the initial contact was made, the purchase process was extremely smooth. For an investment of $119,500 plus GST, this delivers a turn-key franchise operation including a Mercedes Benz van with commercial grade fit out, all equipment, start-up stock, training AND an initial income guarantee! There is no percentage royalty fee and no upfront support fees – just a flat weekly service/license fee from month six – discounted for the first five months.
“December and January was an extremely busy time of year in my previous role, printing school diaries etc. I would leave for work early and come home late.
You’ll also receive three weeks of training, stationery, initial stock, uniforms and an exclusive territory for your Monday to Friday business.
“Now my working day consists of my regular coffee round, I visit approximately 30 customers a day, serving 100/120 cups a
The three weeks of training will give you the start you need towards your successful business. The first week is based at one of the
22 Business Franchise Australia and New Zealand
state Di Bella Coffee roasting houses, where you’ll learn all about the leading specialty coffee company. The second and third week are spent on the road with a Barista and Mentor, who not only show you everything you need to know about making the finest coffees but will also show you proven processes and methods that will ensure your business is successful from its very first day. So, ask yourself: • Are you ready to work with an exceptional product? • Are you ready for a great work/life balance with a great income? • Are you ready to join other satisfied franchisees around Australia in setting the benchmark in mobile coffee in your local area? If the answer to any of these questions is yes, why not join Chris and Robyn and start your new life today. For more information contact Jonathan Payne directly on: P: 0433 095 996 E: jonathan@xpresso.com.au W: www.xpresso.com.au
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Should You
Check Your Applicant’s Social Media Accounts Before Hiring? Starting a business can be difficult, especially at first. You’re dealing with a smaller budget and less room for error, and so every decision you make can affect how successful you are in the first five years.
Perhaps no decision is as important as who you hire. It’s imperative that you hire the best, because your employees are going to be your largest investment and the ones that are expected to bring the best return.
How to make the best hiring decisions In order to recruit the best talents, you need information. The traditional recruitment process (resumes/CVs and in-person interviews) are a prime example of this. You get data on the candidates from their resume,
24 Business Franchise Australia and New Zealand
and learn about them as a person through the interview. But is that enough information? Resumes and interviews are heavily edited information. Candidates only put their best histories on their resumes and, thanks to the internet, prepare thoroughly for job interviews long before they step foot in the door. While these are still important parts of recruitment, relying on them alone will not necessarily net you the best candidate. It’s up to you to figure out how to learn more about the candidate. Asking better questions
“It’s imperative that you hire the best, because your employees are going to be your largest investment and the ones that are expected to bring the best return.” Saxon Marsden-Huggins | Founder Recruit Shop
is a good start. You can also request that applicants fill out answers to specific questions up front with their applications, rather than rely on a resume alone. But you’re still getting an edited version of who the candidate really is.
The newest trend: Social Media browsing With so much ‘edited’ information out there, employers are forced to look for other ways to find out about candidates, and many of them are seeking out the applicant’s social media profiles. From Facebook to Twitter to Instagram, employers are finding ways to access candidate social media accounts, and with those social media profiles comes a wealth of private, interesting information that can tell you a lot about an applicant.
Social Media is there – but should you use it? Of course, just because something is available doesn’t mean you should use it. There are benefits and weaknesses to looking at a candidate’s social media accounts, and you should be well aware of these pros and cons before you decide to look at candidate’s social media:
candidates know that some employers look at social media accounts, and they clean them up. While you may not learn as much about these candidates personally, you learn a lot about the character of someone that is smart enough to clean up their social media profile before you look at it, and what they choose to share there. • Attitude Studies have consistently shown that positivity is one of the most important features of a productive employee (and one that you want to work with 40 hours a week), and social media is where candidates tend to unleash their attitude the most. You want someone working for you that is upbeat, complimentary, and doesn’t focus solely on the negative. Viewing a candidate’s social media account is one way to get this information. • Other You’ll also be able to see if the applicant is committed to the field, whether or not they post during work hours, and more. There is a lot of information you can glean from looking at a candidate’s social media profile.
CONS
PROS
• Introduction of biases
• Unedited information
The most problematic issue is the introduction of biases, both positive and negative, as a result of viewing someone’s personal information. For example, you may be more or less inclined to hire a beautiful female candidate, or avoid a candidate of a certain race or age. The problem here is not some type of overt bias. The problem is that everyone has some biases even if they don’t realise it, and as soon as you see a person’s personal life you’re seeing those biases come into play.
Clearly the greatest benefit to looking at social media accounts is that it could be filled with unedited information about the candidate. It’s so hard to get a real look at the candidate from the information they submit to you willingly, so unedited information has the potential to reveal a lot more. • Professionalism privately and publically Of course, we say ‘could be filled with unedited information’ because savvy
• Relevance One of the problems that employers have when they look at personal information on social media is deciding what is actually relevant and what is not. For example, a picture of a male at a bar with friends is probably not relevant to whether they can hold a job. A post about how much drugs they do probably is. For many, this is hard to decipher, because you are hiring a personality, not just a worker, and you want to make sure that personality fits into your workplace. But you also have to make sure that the criteria you use to judge them is only what will affect you professionally. Political beliefs, love of hunting, affinity for wine, or interest in World of Warcraft will have very little to no effect on the workplace, and unfortunately when you look at a candidate’s social media account it’s not uncommon to be tempted into believing this information matters. • Legal and ethical issues Finally, there are potential legal and/or ethics violations that may occur if you happen across an applicant’s profile and the candidate finds out. While there is nothing inherently illegal about looking up a candidate’s social media, it is problematic if the applicant finds out and believes that the reason they were not hired was because of their race, gender, etc. One of the easiest ways to avoid these ethical issues is by simply not looking at all.
How to look at Social Media correctly If you are going to research a candidate’s social media account, consider the following ideas: • Limit to professional social networks
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If possible, try to limit yourself to professional social networks, like LinkedIn. These are still going to be edited, but they provide you with information that the candidate may not have shared directly, while the candidate’s true personal life isn’t being impeded. • Look for reason to hire, not exclude Assuming the temptation is too strong or you are desperate for new information, make sure you use social media as a reason to hire people, not to exclude people. In other words, try to ignore any personal information you don’t like, and look for information that makes you want to hire them. • Use a third party Another strategy you can try is to use a third party. Have someone look at the candidate for you, and have them answer only the questions that you ask. This way you won’t be able to see the applicant’s photos, or personal information that isn’t necessarily something that should affect the hiring process. Have specific questions
“Resumes and interviews are heavily edited information. Candidates only put their best histories on their resumes.” the third party should find and answer (for example, ‘does the candidate show a clear grasp of spelling and grammar?’ and ‘does the candidate share information related to the industry?’) so that you’re only receiving the information that should play a role in the hiring process. Above all else, however, just make sure that their social media is only a small part of the puzzle, and that you have a way to judge applicants that isn’t based only on their personal lives. Social media is information, and its information that the applicant shares willingly in public. But it’s also only tangentially related to the workplace, and should be a part of the overall picture, not something that influences you too strongly. Saxon Marsden-Huggins founded Recruit Shop in 2011 with partners Employment Office and Flight Centre.
26 Business Franchise Australia and New Zealand
Born and schooled in Zimbabwe, in 2006 Saxon founded a not-for-profit overland expedition organisation travelling 50,000km from London to Cape Town through more than 30 African countries. Saxon has an MBA from UQ, is a member of the Entrepreneurs Organisation and is now based in Sydney. Recruit Shop is Australia and New Zealand’s best priced recruitment agency providing low cost recruitment solutions to small and franchise businesses in any industry and location throughout Australia & New Zealand. P: 1300 411 740 E: saxon@recruitshop.com.au
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Franchise Australia and New Zealand 27 Workplace and pre-employment drug testing is Business exploding as a business
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Cost effective innovation 28 Business Franchise Australia and New Zealand
“As tempting as it is to jump on board with the latest innovations, we need to assess any changes and make sure they fit our business.” Sharen Verrenkamp | State Business Development Manager for Franchising Westpac
While it may be tempting to have the ‘latest and greatest’ technology for our franchise business there are some important considerations that need to be addressed before making the investment. Maybe it’s a slight over-exaggeration, but it seems that every day there is a new piece of technology or service innovation available in the market. New apps for the smartphone, improved medical technology, faster and lighter computers, wrist bands that monitor your sleep patterns, and even significantly better mousetraps are paraded before us on a regular basis. And of course, we want it all. We want it for our own business, and even if we don’t, we probably need to implement some technology enhancements because our customers want the benefit that the new technology and innovation brings to them. Ultimately, the benefit of most new technology is that it enables us to do things better, faster or cheaper. In an increasingly competitive environment and to stay relevant to consumers franchise brands understand the importance of branding and imagery in their business. If we implement correctly, we should capture significant value in the form of increased profit.
But, innovation costs money, and with consumer tastes changing as fast as new innovation hits the market, how can we implement technology in a cost effective way, that gives us an advantage in the market and improves our profitability? As tempting as it is to jump on board with the latest innovations, we need to assess any changes and make sure they fit our business. As a franchisee you also need to understand your obligations under your franchise agreement as store refurbishments will be required to provide a consistent brand image across the network. The cost and timing associated with these requirements will need to be factored into your business plan and cash flow projections.
Let’s walk through some of the key considerations: How does it help the customer? Without customers, we don’t have a business. After all, it is our customers who keep the franchise afloat through the purchase of our products and services. Start by assessing how this new technology adds value for the customer. For example, does it speed up a process for them? Does it give the customer something that they didn’t have before? Does it make their life easier in any way? If we can answer yes to any one of these questions, then there is a stronger chance that customers will stay loyal to our business. This is because we are improving the overall experience that our customers have with us.
Sometimes, due to growth or operational issues, we need to improve technology that doesn’t immediately add value to the customer. In these instances, we should aim for the change to be neutral. Or, to put it another way, the customer should be no worse off after the change than they were before. For example, say that we introduce a new record keeping system to keep our customer orders organised. This might mean that we need to obtain additional information from the customer as part of the sale process. However, if obtaining that information inconveniences the customer, or detracts from their experience, we run the risk of losing that customer for future transactions. So, when we implement the change, we need to be sure that there is no negative experience for the customer. As an additional consideration, if the technology significantly changes the customer experience, we need to clearly articulate what the change is and how our customers will ultimately benefit. This way, we can step them through the change, and take them on the journey with us. How does it fit in with the business strategy? When assessing new technology and innovation, we really need to consider how it fits in with our overall strategy. The key question here is: does this new technology or innovation support the direction that the business is taking? While it might sound strange, there are occasions when new technology does not
Business Franchise Australia and New Zealand 29
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align with how we are trying to position our business in the market. For example, if our business focusses on face to face service, it may not make sense to invest in electronic direct mail technology. How will it add to the bottom line? Regardless of the technology that we are implementing, there is always a cost to install it in our business. So, after we have agreed that it makes sense to implement, we need to do a full cost analysis. The best approach is to consider is the return on investment, or ROI. ROI measures how efficient we are at converting the total cost of our investment into profit. Keep in mind that this is the total cost, so we need to include: • The purchase price • The cost of installation • The cost to train our staff and educate our customers in the change In addition to calculating the overall benefit to the business, we should also consider how soon the investment will start making a profit for us. The longer it takes for the new technology to turn a profit, the harder
“In addition to calculating the overall benefit to the business, we should also consider how soon the investment will start making a profit for us.“ we need to scrutinise whether it is worth implementing. How will customers react? As a final consideration, we need to ensure that our customers are on board with any changes that we have made. This starts with training our staff. These are the people who, ultimately, will sell the change to the customers. The better our people understand the new technology, and why we have made the change, the easier it will be for our customers to come on board as well.
Next steps The pace of innovation and technological change is phenomenal. A lot of that change can benefit both us, and our customers. The key to successfully implementing new technology lies in understanding how it helps our franchise business and our customers, and how soon we can get a return on our investment.
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Westpac has supported the franchise sector in Australia for over 20 years. The growth of a specific franchise system is supported by providing streamlined processes for lending, as well as access to other leading transactional solutions. The bank also has a national network of franchise specialist business bankers who are able to deal with the specific day to day needs of the franchise customer. Sharen Verrenkamp is the Westpac Senior Business Development Manager for Queensland specialising in the franchising sector. Contact Sharen at: P: 0438426319 E: sverrenkamp@westpac.com.au W: www.westpac.com.au/business- banking/industries/franchising/
Business Franchise Australia and New Zealand 31
sn a pshot: v.i.p. h o m e serv ices
‘Putting’
his life on track
Dominic Azzopardi has come a ‘fairway’ in a short time after swapping his golf clubs for a lawn mower. Dominic, a former professional golfer and coach, is now happy tending to the grass rather than putting on it. Despite his love of the game, Dominic’s job as a golf pro, coach and running the golf shop combined with working weekends was beginning to take its toll on the father of two. “It was really tough trying to balance being a father of twin girls, a husband and the demands of the job; I realised that a change was needed. Running a golf pro shop has given me many transferable skills that I will be able to use. However, I can honestly say that the training I received from V.I.P has been fantastic. As a coach I recognise good coaching skills, and the thorough training has given me the confidence to go into my business knowing that I have the right skills
and a strong brand behind me to be a real success. It’s also very reassuring to know that I have a support network and mentor to help me as I go,” explained Dominic. Dominic not only changed his career but also relocated to run his own Lawns & Gardens business. Swapping what he describes as the ‘grey skies of Ballarat’ Dominic moved to the Sunshine Coast and hasn’t looked back, “I’m so pleased that I made the move from so many different angles; my career, the new location and especially the lifestyle I’m now enjoying. I get to spend more quality time with the family. My girls love having their dad around and I now feel that I have the work-life balance right. My life in golf has always involved working outdoors, something that I love. I also enjoy working in my own garden so this was an ideal opportunity for me.” Four weeks in to his new business and Dominic says that since his move he hasn’t played golf once and that he is, for now, enjoying a break from this aspect of his life. Presently you are far more likely to find Dominic with his family enjoying a day at the beach rather than a day on the golf course!
32 Business Franchise Australia and New Zealand
Dominic Azzopardi, V.I.P. Home Services Franchisee
If, like Dominic, you are interested in finding out more about running your own franchise business or would like to spend some time with an experienced franchisee to give you an impression of what life could be like as a franchisee, simply contact V.I.P. on: P: 13 26 13 W: www.viphomeservices.com.au.
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Territories
To be or not to be… That is the question
Should a franchise that operates out of a ‘bricks and mortar’ store give territories or not? That is one of the biggest questions in franchising today. There are many opinions, and companies do it differently depending on their size, brand awareness, level of investment required by the franchisee and basically, the view of the CEO or his franchise advisors.
The franchisor’s views are normally around the line of ‘let’s keep it to a minimum as it gives us more flexibility for the future’. The franchisees view is normally around thinking of it as an exclusion zone and therefore a guarantee that the franchisor (or his successor) cannot introduce another store into the area. Some types of franchise systems have a fairly easy solution, as it becomes relatively ‘Black or White’. If you are a service related business such as a Jim’s franchise, a Financial Services franchise (Mortgage Choice, ANZ mobile lending) or a Test and Tag business, then a territory is almost a certainty as it is required for job allocation. Basically any businesses that have a call
34 Business Franchise Australia and New Zealand
centre or leads coming in through the internet must have a fair way of distributing these, which leads to a geographic territory. Many large multi-national chains and some large home grown systems normally have the market power simply to not give a territory, unless it may be a Master Franchise situation. Working for an oil company (in my past life), we never had territories, nor do I believe the likes of KFC, McDonald’s or Gloria Jeans give territories. Some systems like Nandos and Brumby’s are progressively looking at moving away from territories as they undertake renewals over time. Basically, very large franchise systems try to keep their flexibility alive as best they can.
“Having the territory mapped and a demographic report outlining the contents of the territory available, the franchise system becomes easier to attract high quality franchisees.” Peter Buckingham | Managing Director Spectrum Analysis Australia
What is a franchisee’s view? Many franchisees are asked for a long term financial commitment often around the $1M mark over the length of the franchise agreement. This may be made of long term lease commitments, a large upfront fit out cost, and all the other costs associated with starting a business. The Franchise Shop’s Managing Director, Grant Garraway says, “Many potential franchisees want a territory as a form of security. Whether it is a territory or an ‘exclusion zone’, what they want is a guarantee that the franchisor cannot open another store in the agreed area.” Grant has had years of dealing with this issue and tells me it makes a significant amount of difference to be selling a franchise system with a well thought out long term plan and territories already formulated. He feels this gives the franchisee a sense of security, so that even if the franchisor or the CEO moves on, the security of the territory system gives confidence that cannibalisation should not occur. The other issue for a franchisee is financing his new business opportunity, and it is generally felt that banks and other finance companies are more receptive to franchise systems who offer a territory (exclusivity for the area), rather than one that does not address the issue.
The Franchisor’s position If you have market power and a very strong brand, you can basically refuse to offer territories and still attract good franchisees to your system. Look at McDonald’s! Large companies normally have a consistent ethos to consider existing stores in the
decision process to approve a new store. Unfortunately in the view of many franchisees, the franchisors underestimate the effect and this becomes the cause of much dispute.
territory is a big advantage in the sales process. Geoff says, “This give us something more concrete to sell, and instils more confidence in the franchisee for their long term investment.”
We have worked for many franchisors where we have plotted all the customers for a specific store (a dot on the map for every customer). The view is to see how far out you need to go to cover 60 per cent and then 80 per cent of the customers, and come to a conclusion where you feel a reasonable ‘Primary Trade area’ comes to. The view is that stores should probably be a minimum of two times the radius of the Primary Trade area apart, eg. if you feel the Primary Trade area shows at around three kilometres radius, then two stores should be a minimum of six kilometres apart. The main exception to this is if one of the sites is in a shopping centre / mall, which really means the customer drawing power is governed by the generator power of the shopping centre, not so much the individual store.
In many of the businesses he represents, he advises that by having the territory mapped and a demographic report outlining the contents of the territory available, the franchise system becomes easier to attract high quality franchisees.
Many franchisors also like to take the ‘no territory’ position early in the life of the franchise system as they simply want to keep all options open for the future. We like to try and suggest a reality check, especially when we hear of “another chicken franchise” thinking they will be larger than KFC! In many cases this leads to some hard thinking in terms of strategic network planning, to have a vision of what they dream of being in say ten years.
Attracting new franchisees Geoff McDonnell of Business Essentials also believes that when looking at franchisee selection for their customers, having a
If the business is what we call a B2B business, the business demographics can describe the territory in terms of how many businesses are in the area, and the approximate number of employees. This is very important if you are representing a printing / copying business, or sell sushi at lunchtime. Many franchise systems are B2B rather than the B2C model, and therefore the territory needs to reflect this in the territory building process
Summary Territories – to be or not to be: is the question that franchisors and franchisees must address. How do we weigh up the future flexibility of the franchisor versus the attractiveness of buying into the franchise system to the franchisee? Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, the leading Geodemographic and Sales Prediction Modelling Company in Australia. He is also a Director of the Institute of Management Consultants. E: peterb@spectrumanalysis.com.au W: www.spectrumanalysis.com.au
Business Franchise Australia and New Zealand 35
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36 Business Franchise Australia and New Zealand
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Practical Planning
e is h c an r f r f o r yo u Whether we think about it or not, we do a bit of planning every day. For instance, the urgent things that need to be done, the bills that have to be paid, shopping, groceries and school activities for the kids. Planning helps with these short term things, and longer term things as well. For example, if you’re planning a party you would set a date, decide on a theme, invite people, set a budget, work out the menu, buy the food and prepare it. So, you’re setting goals and planning all the time. You just might not have thought about it that way. Planning works out the order of things and breaks them into smaller chunks. This helps you focus on what needs to be done. The same approach applies with your franchise. Planning is extremely helpful when you run your own business. In fact, your financial results depend on it! In a franchise, many aspects of business operations are set by the franchisor. However, the goal setting and planning are your responsibility.
Goals When you’re creating your plan, the best place to start is with your goals. It’s well established that people who have goals are more likely to achieve them. If you run a business it’s important to decide what you want to accomplish. We’ve found that many who do this enjoy their business and have a sense of accomplishment. We’ve seen goals produce extraordinary
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“The reality is your success depends on your own initiative, not only following the operations manual.” Peter Knight and Kate Groom Smart Franchise
results. From achieving sales targets to improving profits, or winning awards. We’ve even seen franchises turnaround from struggle to success. It’s best to start with goals that are achievable and realistic. It can be disheartening if they feel impossible to achieve. Perhaps you can find out what others are achieving and consider what you can do in your business.
Your plan Your plan identifies your goals and the actions you‘ll take to achieve them. It’s critical to write all this down. Here are some points to include in the plan for your franchise.
Pre-work in an exis ting business If you
already have a business , your first step in creati ng your plan is to do some pre-work. This is where you review past perfor mance and consid future goals. It will hel er p you identify areas for attention in the plan. Pre work includes a rev iew of your past financ ial results. Look at sal they go up or down? Lo es, did ok at the big expense ite ms, can they be impro Look at the net profit – ved? how do you feel about it? Doing this review will undoubtedly make you want to set some goals the year ahead! for You should also consid er if your franchise has any specific requirement such as refurbishment, s, or franchise agreement ren ewals. This is also a good time to consider any investment you ma y need to make in you business. For instance, r new equipment or staff training.
Financial goals • Write down how much money you want to make • What level of sales you’ll need to achieve this • Set targets for key expense items, such as Cost of Goods Sold and Wages Actions Write down the actions you will take to achieve these goals. Examples might include local marketing activities and staff training. Local marketing is vital to the success of any business. Tie your local plan in with what your franchise is doing on a national basis. You could run a workshop to improve staff sales skills. You can then set monthly goals for staff members and review on a regular basis. As you can see a good plan will help you manage your business well. It doesn’t need to be complex. The steps above are the foundations for a really good plan for your franchise.
Planning for a new business When you’re just
starting out, planning can be a little more dif there are many things ficult as you don’t know. Howe ver, it’s still important have a plan and your fra to nchisor and bank will expect this. Your plan will help you see how the business mi ght work out financial and what’s required to ly, make this happen. Even though you may not know all the detail s, we think it’s vital to prepare a budget and cas hflow forecast. These can be based on what you’ve discovered as you ’ve researched the franch ise. Make sure your plan ou tlines the total set up cos ts, the costs to run the business on a day to day basis, and what level of sales are needed to cov these costs and make a er decent living.
Peter Knight, FCPA and Kate Groom have created Get Franchise ready, a site to help with the business and financial side if buying a franchise. This article also appeared on their website.
W: www.getfranchiseready.com
Business Franchise Australia and New Zealand 39
PROFILE : InX pr ess
Changing of the Guard InXpress appoints Glen Mckay as General Manager Australia allow Glen to manage the franchise support centre, whilst maintaining relationships with franchisees, suppliers and customers. Glen will work in unison with Lindsay Birley, who after a strong tenure and an explosive year within the Australian business, now moves to the position of CEO InXpress Asia Pacific. InXpress delivers an international customer focused, fully automated shipping solutions ensuring simplified shipping alternatives to suit the needs of small and medium businesses saving time, effort, and money.
Glen Mckay, General Manager, InXpress
InXpress welcomes the appointment of Glen Mckay as General Manager of InXpress Australia. Glen is looking forward to bringing his extensive franchising experience and skills to Australia’s fastest growing franchise model. As General Manager of InXpress Australia, Glen will first and primarily provide support to InXpress franchisees. This role will
InXpress is a trusted shipping advisor in many corners of the world, and Glen plans to continue the implementation of new strategic initiatives to leverage the exceptional buying power of the worldwide network into new business streams. Glen will spearhead InXpress’ plans to further increase the Australian footprint while adding additional value to customers through franchisee training and enhanced services. “This program will allow InXpress to bring the unique benefits of the business to all regions of Australia, whilst capitalising on international business development plans,” Glen explains. Glen comes to InXpress with a wealth of experience; over thirteen years in the express freight industry complementing his strong background in franchising, both as a franchisor, and as a franchisee within various business models. Glen was also responsible for designing and building an online franchise system,
40 Business Franchise Australia and New Zealand
whilst running his own electronics security company. Glen’s strong business acumen and practical application to various industries will forge InXpress Australia into new levels of growth. Glen knows what it takes to run a small freight business, and looks forward to sharing his experience with the InXpress franchise team. “Throughout Australia InXpress is represented across more than 35 offices. Locations have doubled within the past 18 months and I plan to increase this by a further 12 offices over the coming 12 months in key locations.” said Glen. Glen’s previous experience in the franchising sector will contribute to meeting the rapidly expanding carrier’s global objectives of reaching over 300 franchisees worldwide in the coming year. InXpress delivers best-in-class customer service coupled with a proprietary online ‘WebShip’ express freight program to deliver a fully automated shipping process. InXpress global provides economical and efficient solutions to small and medium sized business, assisting them to secure the best possible freight options through the massive buying power of InXpress with recognized carriers such as DHL, Toll and TNT. For more information: Phone: 1300 469 773 Email: sales.au@inxpress.com Web: www.InXpress.com
Want more freedom in your life?
Think outside the box ...
Own your own business, generate residual income and secure financial freedom with an InXpress business opportunity.
For more information on joining the InXpress Franchising Team call Meredith 0418 600 919 or visit inxpress.com M O R E
T H A N
J U S T
Phone: 1300 469 773
G E T T I N G
I T
T H E R E
email: sales.au@inxpress.com
www.inxpress.com.au Business Franchise Australia and New Zealand 41
Resources at your fingertips!
CURRENT TITLES INCLUDE: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGB’s website also provides an additional advertising and information format and complements our publications.
www.businessfranchiseaustralia.com.au
FE ATURE
retail franchising
Feature
Business Franchise Australia and New Zealand 43
FE ATURE
a growth industry By definition, retail is the sale of goods to end users, not for resale, but for use and consumption by the purchaser. The retail transaction is at the end of the supply chain. Manufacturers sell large quantities of products to retailers, and retailers sell small quantities of those products to consumers.
Your product So, as a retailer, or potential retailer, your product is the most important component in your business, right? True, your product is vital. It should be top quality and something you believe in. But to succeed in retail, you must be a shrewd business person who considers all facets of the business. If you don’t have a sound business plan, a strong marketing strategy and a firm grasp on your financial status – the quality of your product becomes second tier.
The potential market According to recent Retail Trade figures by the Australian Bureau of Statistics, Australian retail turnover rose 5.7 per cent in October 2014, compared to October 2013 with online retailing retail trade rising by 9.5 per cent in October, which followed a rise of 8.7 per cent on September 2014. Sectors experiencing growth included household goods retailing which rose 1.4 per cent or $56.9 million in turnover, alongside food retailing (0.5 per cent), department stores (2.0 per cent), clothing, footwear and personal accessory retailing (1.1 per cent) and other retailing (0.2 per cent).
Can you do it? Tempting, isn’t it? Do you have visions of owning your own quaint little dress shop in the local village, or a big name coffee house in the flash shopping centre in the city? Can you get your hands on some of this vast sum of money being handed over by eager consumers?
44 Business Franchise Australia and New Zealand
FE ATURE The answer is yes, but tread carefully. The recent global financial crisis affected nearly every industry throughout the world. Australians are still willing to spend money, but they are much more selective now. Consumers are more conservative, more willing to seek out a ‘good deal’ and more willing to wait for the items they want. This means retailers are competing in a highly competitive arena as they fight to win the dollars that are being spent.
According to the NAB Online Retail Sales Index, currently, online retail spending in Australia stands at $16.19 billion
Add to this the fact that commercial rental rates have gone through the roof, with large shopping conglomerates pushing for leasing rates based not on what the market can bear, but what they can scrape out of their leasees. So, if the cost of doing business has gone up, is it worth the risk of entering the retail market now? The answer, again, is yes, but do your due diligence.
Security in franchising This is where the benefits of entering the franchise industry come into play. If you know you want to own a corner bakery, why not purchase a bakery franchise. It is romantic to envision the sign over your bakery having your own name on it, however this is symbolic of the situation that will follow. You will be on your own. You will have to develop your business plan, secure funding, choose a site, negotiate your lease, supervise your fitout, formulate a marketing strategy, source your products and then actually run the business. Are you tired yet? Imagine if all of this work had been done for you already? Well, at least a great majority of the work. This is the beauty of franchising. Retail is romantic, in a sense, but it is also risky. As opposed to the service sector or the work-from-home business options, in retail you have bigger costs and bigger risks.
The strength of experience But don’t despair. Despite the drop in consumer confidence, people are still spending. Perhaps not as quickly or as easily as before – but they are still
spending. Being part of a franchise system that has weathered previous economic storms, and knowing that you are an integral part of a larger network, can give you the strength and knowledge to not only survive retail lulls, but continue to prosper. Along with the actual site you eventually choose, hopefully with the help of your franchisors site selection strategy, you also now have the online space to consider.
Online spending This is a fairly new arena for many retailers and perhaps a bit daunting as well. According to the NAB Online Retail Sales Index, currently, online retail spending in Australia stands at $16.19 billion, which accounts for around 6.8 per cent of traditional retail spending. But this figure
is surely poised to grow. Social Media is a powerful tool and one that can not be ignored. The benefits of utilising the social media platform include reaching a large audience to develop and instill brand awareness, increasing the effectiveness of marketing plans and creating an interactive experience for your current and potential customers.
Make it happen In the end, the choice will be yours. Whether you decide to go forth into the world of retail and whether you choose to do this as part of a franchise, it is ultimately up to you to define your success. You must be passionate about your product, committed to offering the best service to your customers and willing to work hard to make your business successful.
Business Franchise Australia and New Zealand 45
FE ATURE
E x per t Advice
NAVIGATE YOUR WAY TO SUCCESS
I’m not sure if you have even been white water rafting but trust me when I say it comes with its ups and downs. The key is to get into the zone and control every move as quickly as possible so you can enjoy the ride and the journey with an ultimate aim of getting to calmer waters feeling on top of your game instead of feeling deflated and defeated.
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fe feature at u r e “Be strategically tactical as part of your overall plan and create a difference to your retail business that makes it impossible for customers to compare it with others.” Tania Allen | Founder Vision Alliance
Operating a business is a bit like white water rafting. At times it’s scary, hectic, and sometimes unbelievably out of control. It takes you out of your comfort zone and pushes you into unknown waters. At other times, it’s exciting, challenging and ultimately rewarding. The key to navigating your way through business successfully is the same as navigating your raft through the rapids. Once you know how and what to do, it’s important to be sure you implement that knowledge so that you arrive at calmer waters with confidence and without too many knocks, bumps, cuts and bruises. It’s about making the right moves at the right time and in the right order, so that when you are ready to move to the next level you can with confidence. Doing the right things in the right order is crucial to success. Being sure you take consistent action every day and ensuring that the bulk of your day is focused on income generating activities and not just any activity is a key component to building the business of your dreams. When I speak with many retailers they are often times bruised and battered as if they have been defeated in the rapids and the other times they are on top of the world because they’ve had a great day or week. So how do you achieve consistent success in your retail store so you can celebrate more wins over and over again? The first crucial element to building momentum and success in retail in the franchise sector is to choose the right brand to partner with. A brand that offers a tried and proven business model, one that is committed to seeing you achieve success just as much as you want success yourself. I was speaking with Daniel Isaacs, General Manager of The Coffee Emporium just recently about this. Daniel states that franchisees have a better chance at success when they are supported by a brand that
“Once you know how and what to do, it’s important to be sure you implement that knowledge so that you arrive at calmer waters with confidence.” has learnt to navigate through the rapids and have the tools and the systems in place to get to the smooth consistent waters. Of course it’s the responsibility of the franchisee to work the system and to take consistent daily action towards success however a franchisee backed and supported by a good brand and leadership team will always have a better opportunity of turning their vision of owning a successful business into reality. Working with The Coffee Emporium what I’ve observed is; they ensure every franchised business partner is following the key things to ensure consistent success for their stores. As a retailer regardless of the industry or network you are part of, the principles that are adopted by The Coffee Emporium on a daily basis is something that will serve and support you.
Atmosphere and culture is key When you first hear the name The Coffee Emporium or from the moment you step into one their stores, you instantly feel you’re in a European Coffee Lounge. A place where everyone gathers; a place where you meet your friends, your family, and even your work colleagues. A level of sophistication embraces you and welcomes you. Your sense of smell is aroused with the aroma of freshly ground coffee and from the moment you take your first sip, you know you have found a lifelong companion. This message instantly welcomes the customer. How does your store invite your customers to step inside? Before your customers step inside your store, it must
be welcoming and inviting and match the emotional needs and wants of your customer. It may not be a coffee store; it could be a funky juice bar or burger bar or even a clothing store. The important element is ensure your atmosphere and culture in store invites people in and welcomes people to stay. Spend twenty minutes each morning ensuring your store is neat and clean, well-stocked with pricing visible, good lighting, and appropriate music.
Serve Thy Customer It sounds obvious but many a store I step into are just not interested in their customers. Instead it’s just about the sale. By showing a genuine interest and respect for the customer, the customer is more likely to spend more and to come back more often. What stands out when you’re inside The Coffee Emporium Store is the service. Not only are the staff genuinely interested in you and providing what you want, they make suggestions with what might compliment the beverage or the light meal the customer has ordered. I understand that many of you may think upselling is a taboo in the sense you just don’t want to look like or sound like a McDonald’s store. What if you shifted your thinking and thought it was a disservice to your customer for not asking them if they would like a drink with their meal or a treat with their drink. Instead of thinking it’s just a strategy to fill your pockets look at upselling and cross selling, in other words increasing your average transaction, as a
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or a message that invites your customers to come in store.
“Digital marketing and client attraction is well upon us and if you are not taking advantage of it then you are miles behind.” way of adding more value to your customer. If they don’t buy from you they will definitely be buying from someone else.
Train and support your team members I couldn’t emphasise this enough. My daughter has just started working with the franchise brand Grill’d and I must say I’m very impressed with the training that is available to all staff members. As franchise consultants we can’t emphasise this enough to our clients. The brands that win in this game are consistently training all team members. Training builds confidence. With clarity in what needs to be done and how it is done comes confidence and competence. Customers observe this and experience this. A happy and more confident team member will thrive in his or her role, which supports the overall customer experience. Have a look at the training you are currently offering your team members. Are they confident and competent? If not it’s time to do a refresh. If you’re just looking at getting into a retail brand ensure you explore what training and support is offered by the franchisor.
Consistent marketing is key Once upon a time if you were in retail you would rely heavily on the foot traffic in the centre or on the strip where your store was located. Every now and then you would do a letterbox drop and advertise in the local paper. Gone are the days where any retailer can afford to sit and wait for the customers to come in. If you snooze you lose. So how do you attract your ideal customers and keep them coming back for more? Digital marketing and client attraction is well upon us and if you are not taking advantage of it then you are miles behind. Even if your franchisor isn’t up on it all there’s no excuse for you not to be. Start thinking about how you can maximise your potential with social media. Many people I speak to say they just don’t get results from social media. The reason for this is because they are simply building brand awareness rather than creating direct response offers. Your online marketing should always have the objective of driving people into your store. Think about your activities now. Instead of posting an image or some text, think about your message. Overlay the image with a compelling offer
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Just like The Coffee Emporium, the retailers I see doing well are collecting names, email addresses and mobile numbers in store. They say the gold is in the database. I say success starts with the database however success is always in the follow through. Start to communicate regularly with your customers via SMS or email. Send them offers and invite them back. A great strategy to increase certainty and consistency with revenues is to check your sales by 11am and 2pm. I remember seeing how deflated my mum was on certain days in her retail store when by 6pm when she was closing the till and cashing up for the day and realised they had not reached budget that day. Other days were well above so it got me thinking; the only way to achieve success in retail is take control of the sales and not wait for them to happen. If you haven’t hit budget by 11am, then you can jump straight onto the computer and send out an SMS blast with an offer than compels your customers to come instore to grab that lunchtime offer. Our clients have literally catapulted their sales by adopting just this one strategy alone. These are just a few insights into retail franchising and what you can look for in a franchisor. Have they got a tried and tested and proven model? How are they going to back you and support you? What systems, training and support do they have in place to help you maximise their potential? How will you make your money? What marketing strategies have they adopted to help you achieve more? Tania Allen is the founder of Vision Alliance and author of Franchise Profits. Vision Alliance is a business growth and franchise consulting firm that helps franchisors and franchisees get more out of business and more out of life. For more information about how Tania and her team can support you in finding the right franchise opportunity, or if you would like to learn more about how you can maximise your potential in your franchise or learn more specifically about The Coffee Emporium please contact: P: 1300 76 49 20 or 0419 481 203 E: tania@vision-alliance.com W: www.vision-alliance.com
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Tradies who made the switch to Snooze After working together for 11 years, best mates Chad Rankin and Todd Lightbody knew they shared similar career aspirations. Originally electricians by trade, the pair always wanted to eventually branch out and pursue their own business venture; the only question was where and how? “Having worked in various mine sites across Australia for over a decade, Todd and I really didn’t have much experience when it came to running a business. We’d both reached a point in our lives where we were hungry for change and up for a challenge, but weren’t sure what the launch pad would be to the next phase of our lives “Todd and I had friends who owned a Snooze franchise in Western Australia and told us about the Mandurah store opportunity. We identified the gap in our business skill set, and agreed a Snooze franchise really suited us. With a proven business model securely in place, we immediately had access to support, training and direction, which was invaluable in getting us started in the early stages,” said Chad. Chad and Todd took over Snooze Mandurah in May 2013, an acquisition in Western Australia that would soon form part of the well-performing Snooze store portfolio operating there today. Snooze Managing Director, Simon Beaty
Chad Rankin and Todd Lightbody
“The best piece of advice I can give is to have a clear plan in mind and just have a go at it; take a leap of faith!” says the rapid expansion in Western Australia is a reflection of Snooze’s aggressive growth strategy, with plans to continue momentum at various locations across Australia. “We’ve developed a strong retail footprint nationally, with a particular emphasis in Western Australia more recently. Our expanding local profile in this region continues to impress us,” said Mr Beaty. Before opening doors in Mandurah, Chad and Todd travelled to Melbourne to complete an extensive two week training course, covering everything they needed to know about running their own Snooze store. This included system management and POS tutorials, accounting lessons,
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logistical procedure training and visiting Snooze suppliers. The training formed the framework for their first-ever business. However the support didn’t end there; Snooze continues to offer comprehensive support across: • Full access to exclusive product and services • Advanced award winning digital systems • Sales and product training • Business management support • National marketing programs • Latest insights in industry standards and trends • IT support
fe feature at u r e • Vendor finance assistance to approved applicants • NAB and ANZ Bank accreditation.
Expansion Since finding their feet as franchisees, Chad and Todd haven’t looked back – although they both admit it took six months to find a solid routine. “Eventually we found we were better suited to very different roles. Todd now fulfils the duties of an operations manager and bookkeeper, whereas I focus my energy in-store, training staff, implementing sale promotions and managing product on the shop floor. “To ensure we’re continuously improving and monitoring our performance, Todd and I factor in time to regularly discuss the direction of the business and how its tracking,” said Chad. As mates first and business partners second, Chad and Todd believe their dynamic friendship assists in the strength of their business prospects. In August 2014, the pair proved they were moving from strength to strength with the
grand opening of their second store, Snooze Cockburn – adding again to Snooze’s prominent retail footprint in WA. “Never did we see ourselves becoming multi-site owners, but when offered the great opportunity and having realised the strength of the Snooze brand we knew we were ready to drive our business to the next level,” said Chad. Snooze Managing Director, Simon Beaty has seen a trend of not only attracting interest from external parties, but increasingly existing Franchise Partners who are taking on additional sites. “We’re proud of Chad and Todd, they’ve proven that with hard work, dedication and passion, anyone can realise their career goals with Snooze,” said Mr Beaty. With over a year’s experience of running their own Snooze store, Chad and Todd hit the ground running at Snooze Cockburn, seamlessly applying the knowledge and expertise they had gained since becoming franchisees. “Fortunately, we’ve managed to settle into the new store a lot quicker. It’s been exceptionally efficient being able to streamline our established operations at
Mandurah with the Cockburn store to form a fully functioning multi-site business,” said Chad.
Life as a Franchise Partner A day in the life of Chad and Todd often sees the two of them striking the work life balance, emphasising the importance of making time for their fiancées. “Being our own bosses allow us to manage our lives the way we want to. Work is obviously a daily priority, but the best part is having the freedom to call it a day when we need to. Our fiancées and staff are extremely supportive which we’re both grateful for,” said Chad. Chad and Todd now have plans to progressively appoint others within the business to alleviate the workload as they continue to grow their retail footprint. When it comes to overcoming challenges together, Chad and Todd say it’s an ongoing learning experience. Entering an industry that they knew nothing about, the franchisees find themselves continuously striving to understand the retail landscape. “We face daily challenges, but the most important thing to remember is it’s OK to
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make mistakes. We’ve learned a lot through our errors, and ultimately these have shaped the success of our Snooze journey,” said Chad. Chad and Todd also know success isn’t possible without realising the value of their customers and staff. Managing customer expectations and ensuring their team members are happy remains a top priority day-to-day.
The final thought When asked what makes them most proud, Chad and Todd are quick to agree that it’s reflecting on their journey. “We have had a go at something that was foreign to both of us; we were two electricians diving into unknown waters. Being multi-site owners is a testament to the goals we set and achieved, something we are both very proud of. “Snooze has been overwhelmingly supportive; offering strong levels of communication and guidance. We feel confident Snooze will continue to help us grow,” said Chad. For now, Chad and Todd’s focus is aimed at running Snooze Mandurah and Cockburn to their potential. However, as eager businessmen, Chad and Todd say they’d definitely consider further expansion in the future. “The best piece of advice I can give is to have a clear plan in mind and just have a go at it; take a leap of faith!” said Chad.
Snooze As one of the country’s longest running franchised businesses, Snooze continues to adapt to an ever-changing market by being at the forefront of innovation and customer centric services. Snooze has been listed three times in the top 10 of Australia’s most desired franchises, coming in at number five in 2014. Votes from over 1,000 Australian franchise owners were judged across a range of categories including support, expansion, lifestyle, opportunities and renewals. Snooze ranked highest when it came to brand strength and effectiveness for driving awareness and sales. Proving its dedication to setting industry standards, Snooze was the first Australian bedding chain to launch a mobile and tablet compatible website. In 2011, in an act to further separate them from the competition, Snooze was the first in Australia to offer the
unique bedMATCH™ service which helps take the guesswork out of buying a mattress and the first to launch an online bed building tool in 2013 – bedBUILDER™. These innovations haven’t gone unnoticed, receiving various accolades, including ‘Website of the Year’ at the 2013 Victorian Web Awards, and most recently awarded three new accolades at the 20th Annual Communicator Awards – the leading international marketing and
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communications award program. To learn how to join one of the country’s most innovative and desirable franchised businesses, contact Snooze Franchise Development Manager, Alistair Browne at: P: 03 9830 4166 E: alistairb@snooze.com.au W: www.snooze.com.au.
Join the Coffee Emporium Kingdom We are on the lookout for motivated people to join our strong franchise network, and share in our growing success within the dynamic specialty coffee industry.
The Coffee Emporium has been Perfecting Coffee since 1991. As a business partner of The Coffee Emporium you get the opportunity to become part of a brand that boasts an outstanding reputation for excellent coffee and customer service. The Coffee Emporium seeks and encourages partnerships with like-minded people that take pride in consistently delivering a high quality product to the best possible standard.
If you’re looking to own your own business in a growth market then partnering with The Coffee Emporium is a smart choice! To get ahead in a growth market, contact us today. You’ve got nothing to lose and everything to gain!
To discover more contact | Tania Allen E taniaallen@thecoffeeemporium.com.au M 0419 481 203
We look forward to welcoming to The Coffee Emporium Kingdom.
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RETAIL: A RECIPE FOR SUCCESS As we enter 2015 and take time to reflect upon 2014 - the year that was - retailers are still in the midst of what is for many, the busiest time of the year. As the New Year starts we often think about New Year’s resolutions and exciting new challenges to take on in the next 12 months. For some of you, this may include deciding whether to take the plunge and finally open your own retail business or franchise in 2015. While the number of business format franchisors trading in Australia has fallen since 2012, the country’s franchise sector is in better shape than it was two years ago, according to the 2014 Franchising Australia Report. The biennial survey, carried out by Griffith University’s Asia Pacific Centre for Franchising Excellence in association with the Franchising Council of Australia, shows the industry has experienced net growth in franchise units and sales turnover, particularly in retail franchises, during the past two years. Sale turnover of the entire franchising sector is estimated at a
“Success is often dependent on how many people recognise your brand, so it’s certainly nice to know that you won’t have to worry about gaining a following.”
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fe feature at u r e “Follow your gut feeling (and proper research) and learn from any knockbacks along the way.” Russell Zimmerman | Executive Director Australian Retailers Association
whopping $144 billion, so it’s no surprise that many Australians are interested in opening a retail franchise operation of their own in the near future. There are a number of perks that joining a retail franchise can offer, including the obvious advantage that comes with having a pool of people who are already interested in what you’re selling. Success is often dependent on how many people recognise your brand, so it’s certainly nice to know that you won’t have to worry about gaining a following overall, just in your specific location. You’ll also have assistance with site development, management training, access to market research and operating manuals and even support with advertising and marketing. If you’re still sitting on the fence – now is the time to go out and source some sound advice from people who have been in your shoes and found a recipe for success.
Do your research First things first – assess your own reasons for wanting to own a business and assess the lifestyle and income implications of owning and operating a business. If you’re ready to commit 100 per cent to making a retail franchise work, you can then decide what type of retail franchise business you’re looking for. If you haven’t worked in retail before it’s probably a good idea to obtain some retail experience before moving any further! Once you have defined the area that you want to operate in, go and talk to people who own one or more of those franchise businesses and find out the good, the bad and the ugly. I cannot stress this enough – the most valuable source of information on any franchise system is its existing
franchisees. These are the people who are living the life of a franchisee every day, and they can tell you the reality of what that life will be like for you if you decide to join up yourself. Though you might come across a few characters that are less than helpful with your investigation, the majority of people are usually quite willing to take the time to talk with you. After all, they have all been in your exact position at some point.
Consider financial implications Ensure you have adequate borrowing capacity, including working capital, to successfully establish this type of business. Buying a retail franchise may reduce your investment risk by enabling you to associate with an established company, but the franchise fee can also be substantial. You also need to look at what the set up costs are and consider whether you’ll be taking over an existing retail franchise or going into a completely new franchise business. Talk with your local bank and determine what kind of loan you’re eligible for. Always remember that the worst way to operate a business is with a limited cash flow. You’ll also need to determine whether the head franchise operator holds the head lease, or will it be you, as the franchisee, that is responsible for the lease? If you hold responsibility, you’ll probably need to give a bank guarantee for at least three months’ rent. Also take into account the oncost to the business. If the franchise is a ‘new business’ then it may take 12 to 18 months before the business can return a profit - can you afford to wait that long and do you have the cash
reserves to last until the business starts to make a profit? Will the business have extreme cash flows? Some retail businesses depend on certain seasons for cash flow, for example, a seaside resort will be extremely profitable during summer but struggle to attract consistent customers over winter. Any business that is weather driven or otherwise affected by extreme cash flows will need to take the above ideas into consideration. It’s also a no-brainer to sit down and talk with a finance advisor who understands retail. Work out a cash flow based on two or three scenarios, ensuring that you are able to operate the business successfully even if times are tough.
Roster staff effectively If the franchise is operating seven days a week, you need to realise that you must pay penalty rates to your staff. If the business is a start up, maybe you as the owner need to work on weekends until you get your store up running at a profit. Perhaps consider whether you’re able to operate with junior staff on weekends to save costs.
Know the law Be sure to receive legal and accounting advice from lawyers and accountants with retail franchise experience before making any final commitment. Make sure you also gain a sound understanding of things like consumer law and food health and safety – if you have no expertise then be sure to seek advice. Perhaps offer to assist in an existing franchise store during your investigation phase so that you can thoroughly understand the laws in which you are bound to.
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“If you’re ready to take a leap of faith and open your own retail franchise, 2015 might just be the year you’ve been waiting for.”
Be prepared for early mornings and late nights Lastly, if you think that you’re buying a lifestyle that will allow you to work whenever you want, think again. Often when people open a retail store they think that they will be able to have a lifestyle where they can just work a few hours each week. The harsh reality is completely different as many small business owners end up working 60 to 80 hours per week just to get their business up and running. Prepare to work hard in order to make your business a success, but be sure to stay positive. Follow your gut feeling (and proper research) and learn from any knockbacks along the way. At the end of the day, once you have the formula right then owning a retail franchise can be extremely rewarding. While the retail industry is ever-changing, business owners that get the formula right not only enjoy a sense of career fulfilment but also security. Take Christmas trade for example – during the run up to Christmas
Day, almost every retailer will make the most of increased foot and web traffic and, in turn, improved sales. The ARA and research partner Roy Morgan Research recently revealed that $45 billion was expected to be spent in retail stores from mid-November to Christmas Eve. After what has been a tough 2014 in business, this predicted growth of 4.3 per cent is great news for the retail industry. Looking at 2014’s post-Christmas retail sales, the ARA forecasted another impressive figure of $16.1 billion expected to be spent in retail stores from 26 December 2014 to 15 January 2015, representing a 3.6 per cent increase year on year. Retail sales are increasing year on year which is great news for anyone looking to get in on the action. Australia’s retail industry is one of the most exciting, innovative and challenging industries out there. If you’re ready to take a leap of faith and open your own retail franchise, 2015 might just be the year you’ve been waiting for.
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Russell Zimmerman was appointed as the Executive Director of the Australian Retailers Association (ARA) in 2009. As a natural extension motivated from thirty years of retailing, Russell has continued to foster and engage those around him to raise their potential to achieve and nurture future leaders. With Russell’s stewardship, the ARA has continued to build upon its credibility in the business world. Since 1903, the ARA has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. P: 1300 368 041 W: www.retail.org.au
2015
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Z a r r affa’s Co ffee
Zarraffa’s
Drives Coffee Convenience The Australian-owned company is championing convenient coffee via its popular drive thru stores, opening across regional Queensland and WA. Zarraffa’s Coffee CEO, Kenton Campbell said that the most rewarding part of introducing the drive thru stores, in addition to being able to service customers better, has been the high interest, especially from franchisees and staff. “We pride ourselves on the fact that so many of our existing ‘Zees’ are multistore owners,” a sign says Kenton that the company is doing something right. “But it has been the overwhelming interest in drive thru sites, especially in our regional areas, that has helped shape our strategic planning for new sites and expansion.” “Our company was built on delivering customisable, or ‘perfectly individual’ coffee, every time and the reason our drive thrus are so successful is that we are still able to provide this to our customers from the convenience of their car.” The last 12 months has seen the second Zarraffa’s Coffee drive thru open in Townsville, with both stores opening within six months of each other. Owned and operated by the Blakemore family who opened the company’s very first drive thru store in 2009 at Worongary on the Gold Coast, the move sees two generations of the family running their multi-stores in two separate Queensland locations. “Our experience with Worongary - the first ever Zarraffa’s drive thru - has shown that our customers appreciate the convenience and efficiency of this type of store,” said Corey Blakemore, who relocated his young family to open the company’s northernmost store and drive thru in Fairfield, Townsville late last year.
“Our company was built on delivering customisable, or ‘perfectly individual’ coffee, every time and the reason our drive thrus are so successful.” “We haven’t looked back, and now as we open our second store in Townsville we are glad that we took the plunge and relocated, affording us the opportunity to grow with a brand we know and love,” said Corey. Franchisee Ralph Fioretti is another champion of the brand and the drive thru model. Along with wife Denise, Ralph is the owner of the Carseldine store in Brisbane, and has been a part of the successful franchise system for the past five years, recently opening the company’s only drive thru in Brisbane at Boondall. “We liked the idea of serving great coffee on-the-go and the challenge of offering exceptional service through a faster paced drive thru system,” said Ralph. Ralph said the benefits of opening a Zarraffa’s Coffee store are the opportunities to follow a proven system, one that values exceptional customer service through its commitment to ongoing training. “Our daughter Candice will manage the new drive thru, and she has benefited from
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the support of training for her staff to ensure the whole team is ready for the high demands of a drive thru.” Over eighty per cent of new Zarraffa’s stores are now opened as drive thrus that also include a dining area and traditional storefront, except in WA, where all but one of the stores are stand-alone drive thru structures. “Drive thrus have definitely enhanced our business but the fundamentals still guide our day-to-day…you just can’t beat exceptional service and great coffee,” said Kenton. “It’s ensuring that each of our stores is able to deliver a quality coffee experience, for every customer, each and every time. Our whole company is geared toward consistency and exceptional product and service, no matter whether you have your coffee served to you across a counter or in your car.” For more information on a Zarraffa’s Coffee franchise and available opportunities visit: Web: www.zarraffas.com
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STRATEGIC ALLIANCES:
WHY THESE REL ATIONSHIPS ARE CRITICAL TO ACHIEVING SUCCESS IN FR ANCHISING
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fe feature at u r e “Forming and developing existing relationships that extend beyond the four walls of your business are fundamental to achieving success.” Stan Gordon | CEO & Founder Franchised Food Company
By dictionary definition, an alliance is a union or association formed for the mutual benefit of two or more organisations. In its definition alone it is clear that any business, no matter what sector it’s operating in, relies on alliances to survive! This can include anything from a hairdressing salon having an alliance with local clothing store and partnering to offer special promotions to locals or on a global scale where celebrity chefs partner with airlines to create extraordinary menus that appeal to the target consumer. Forming and developing existing relationships that extend beyond the four walls of your business are fundamental to achieving success. Ice creamery or fashion store alike, the benefit of key associations remains the same: core competences and capabilities are looked after appropriately and you give your business the best possible competitive advantage. Like most effective relationships it’s absolutely critical that both parties uphold the following fundamental components – understanding, transparency and honesty. Working in a manner that is professionally respectful means that suppliers know what to expect and customers can trust in consistency and quality in the goods and services they will receive. For retail franchising, it’s where consumers receive a consistent product or service regardless of location, owner or staff. Alliances can be structured in different ways and most organisations are likely to experience and engage in a number of
different strategic relationships for various reasons and at different stages of growth.
So what type of relationships are considered strategic alliances? The list is exhaustive! These are the external associations a business has to help conduct its day-to-day operations and things that essentially keep a business ticking over – work done by key suppliers and external contractors. This could be anything from the company you rely on for internet connection to the clothing manufacturer that puts together your brand’s garments. Both completely different associations but equally as important to a business, which ultimately leads to the success (or demise) of an organisation.
Why is it so important for alliances to be built into the franchise model? For franchisors and franchisees, strategically driven alliances are at the crux. The whole concept of franchising is based on solid and trusted alliances and building and nurturing these two-way relationships. If you were to purchase a meal from a franchise chain and it was not the same quality you were expecting, you’d be less than willing to visit the said franchise again. They say no one likes a surprise, unless they know what it is. And people definitely don’t like a surprise when they walk in the door of a known and trusted franchise. It defeats the purpose of the whole franchise concept through and through. The beauty of the franchising model is that it provides franchisees with a ‘cookie-
cut’ version of their chosen business, and therefore relies incredibly on consistency. Proven, tried and tested systems are in place, instructions on how to work the brand are stipulated and consistency of stock and product is a given. This is what makes the model so attractive to prospective business owners. There is a benchmark and standard for all elements in the business including, sales results for each store, staff uniform requirements, POS display and merchandising. A quality alliance also opens up buying power that’s advantageous for both franchisor and franchisee. Take Cold Rock Ice Creamery for example. We probably wouldn’t have too many takers keen to buy into the Cold Rock brand if each franchisee had to constantly source all of their own ingredients to create our signature concept – consistency would be out the window, it would be a headache for our franchisees, and ensuring everything was up to the Cold Rock standard, would be bordering on impossible. This is a prime example of where strategic alliance comes into play. We rely on strong and mutually beneficial relationships with trusted milk suppliers, teaming purchasing power and product consistency together for the ideal end result. And unless there was an issue with a product or service, a business would be totally inefficient if it shopped around to secure different strategic alliances too regularly!
Forming Relationships Like most franchise businesses, across the brands at Franchised Food Company we have multiple strategic alliances, or as I refer to them as, ‘relationships’ or even ‘partners’. This might be anything
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“Those with the strongest relationships are often franchisors with the most accolades and they will attract more competent franchisees.”
from an alliance with a major retailer like Coca-Cola, a confectionary company, an insurance broker, a communications agency, equipment suppliers, shop fitters, landlords…the list is endless. We have also occasionally co-branded with another like-minded, non-competing brand to offer something new and unique, like a Cold Rock Express inside a Video Ezy store. Retail trade figures released by the Australian Bureau of Statistics show Australian retail trade turnover is on the up. I’m not sure where they get their information from, but in the fast food and treats retail space, it’s tough. And franchisees need to step up to the plate and hone in on their business’ strategic alliances and relationships… for success. Those with the strongest relationships are often franchisors with the most accolades and they will attract more competent franchisees and keep customers coming through the doors.
Networking Franchising is a great way to network and develop meaningful relationships and broaden your network. My advice to those looking into franchising in the retail or food sector… Do your due diligence and find out for yourself if those on your list have the support networks; relationships and strategic alliances you need to succeed. And if the answer is yes and it’s a good fit for you, I say go forth and conquer! Stan Gordon is the CEO and founder of 100 per cent Australian-owned franchising organisation, Franchised Food Company. The South African born entrepreneur was chosen as the Ernst & Young Business Personality of the Year in 1990 for his work in the advertising and marketing fields, before moving into the franchising sector and then immigrating to Australia in 1996. Now at the helm FFCo, the biggest non-listed franchisor
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in the fun treats sector, Stan’s business ethos and philosophy for success remain the same; enjoy what you do and have fun while you’re doing it. Franchised Food Company is Australia’s biggest multi-system non-listed franchisor dealing in the ‘fun treats’ market. All brands under the FFCo umbrella are fun and unique and include Cold Rock Ice Creamery, Trampoline, Mr. Whippy, Pretzel World, Nutshack and Europa. The journey began in 2000 with purchase of iconic Australian brand Mr. Whippy, expanding with several additional brand purchases and forming FFCo in 2009 to house the interests of the numerous brands. Web: www.ffco.com.au
BE YOUR OWN BOSS DO YOU HAVE A PASSION FOR TELECOMMUNICATIONS? LOVE THE LATEST HANDSETS AND THE LATEST TECHNOLOGY? If you are a natural at understanding customer needs and have that special edge to sell compelling products and services to meet those needs‌ Allphones is the place to be. Not only do we offer the latest and greatest from all of the major handset brands, we help customers connect to a mobile network of their choice with some of the best deals in the market. Be the master of your own destiny in an industry that is ever evolving and shaping the way we live our daily lives. If you have the ability to connect with people and want to be your own boss, Allphones has some amazing franchise opportunities to become part of the mobile revolution and we want to hear from you.
For more information and to register your interest, visit allphones.com.au/franchise or phone 13 8000.
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RedCat
RedCat Franchise Point of Sale Solutions RedCat is an Australian company, with an Australian development team. They have a history of leveraging their flexibility and integration capabilities to implement and develop unique solutions for their clients.
From total head office management, through to localised management and web based reporting tools.
As a leader in hospitality point of sale and accounting software since 1992, RedCat provide the complete business management system. They supply integrated software and hardware solutions for point of sale and accounting that can manage sales, staff, stock and payroll through to accounts, GST, customer loyalty and web based multi-site reporting.
“Another reason for the implementation of the RedCat solution is its simplicity. With stores hiring many younger transient staff, the system had to be easier to grasp and operate to consistently meet their high standards of customer service.
The modular nature of a RedCat system means that it can grow with your business – no need to throw out your investment and start again because of expansion plans. RedCat can also tailor a customised solution to suit your business requirements and even integrate multiple solutions into a single reporting structure. In particular, for the needs of multilocation businesses or franchises, RedCat have developed a flexible centralised management capability that permits multiple levels of control and reporting.
RedCat have provided solutions to some of Australia’s leading franchise groups including Boost Juice, Salsas, Nando’s, Grill’d and many more. According to Boost Juice Management, “RedCat POS enables us to sell our products in a more controlled and secure fashion. It captures vital data and produces key management reports that enable us to run our business more effectively.
“It is the first time we have had corporate reporting across the whole organisation. Franchises can log into the web based system and check KPI’s, best selling products and a whole host of other information. It gives us an amazing insight into certain key aspects of our business.” One of the unique features that RedCat can provide franchises is its loyalty cards or applications. The RedCat SmartLoyalty solution is a mature product that has been under continuous development since its inception as a fully integrated solution well over 10 years ago. It has had a number of significant enhancements in that time including the very first Australian iOS
Mobile Loyalty App to integrate into POS that was launched in 2011. Now into its 5th generation release, the next generation is already being planned with even more enhancements. SmartLoyalty has also been successfully implemented internationally in the UK and selected South East Asian markets, in conjunction with Boost Juice International.
The use of loyalty programs in Quick Service Restaurants and Franchises is widespread. RedCat’s current client applications: • Have over 2 million active users • 40 per cent of transactions are linked to loyalty members • Over 4 per cent growth in sales with a loyalty program • 12 per cent growth in the average spend of members • 20 per cent increase in frequency of member visits For more information contact: P: 1300 4 REDCAT W: www.redcat.com.au
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Strategic Retailing The Right Prescription When Times Are Tough Barely a month goes by without a regular sale period for many Australian retailers. Pre Christmas, Post Christmas, Mid and End of Season, Financial Year End, Easter – shoppers are beginning to lose trust in retail brands believing margins must be too high. ‘Unfit’ retail businesses, who are heavily discounting, are damaging their brand particularly if they fail to understand the important relationship between price, discount and sales, giving away vital profit by reducing their margin too much. Whilst some discounting is necessary and should be used as a sales strategy as opposed to inventory clearance play, ‘fit’ retailers, who are thinking strategically as opposed to tactically, are winning the survival
“If price is the only differentiator, consumers will opt for the lowest price available, whether that is online or in-store. A bricks & mortar retailer needs to offer significantly more than just price if customers are to choose them over an ecommerce offering.” Brent Dowsett, Managing Director, Australian Geographic Retail
race. Retailers need to have the bigger picture in mind to be best equipped for future opportunities, rather than becoming too reactive by implementing short term solutions. Thinking strategically means getting your retail business into good mental and physical condition thus avoiding the tactical reduction of margins and staff cuts.
The ‘Fit’ retailer thinks strategically before acting tactically Brent Dowsett, Managing Director of Australian Geographic Retail understands why so many Australian retailers fall into the cycle of tactical retailing. “It is hard not to revert to tactics when strategies
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seem to be failing. When all around you are going on ‘Sale’ you need a strong will and belief in your strategies to hold the line. The difficulty with dropping your price when things get tough is that you need to significantly increase your top-line to compensate for lost margin and when customers are not buying, this almost always proves to be the downfall of the tactical move. Tactics should be confined to individual trouble spots, whilst the overall strategic plan is being executed.” As well as giving this great piece of advice to other retailers, Australian Geographic Retail has recognised one of the key strategic imperatives to keeping retail ‘fit’ – it values innovation.
fe feature at u r e “Be strategically tactical as part of your overall plan and create a difference to your retail business that makes it impossible for customers to compare it with others.” Brian Walker | Founder and CEO Retail Doctor® Group
Becoming innovation fit Innovation in retail should not be restricted to market entrants as it so often is. Regardless of the economic climate, the shopper is smarter, more connected and seeking more exciting and compelling products and experiences. A ‘fit’ retailer will be constantly innovating and refining the customer experience to make it extraordinary - from the very products offered to the total cross-channel store experience. In doing this, they are creating a value added offer allowing them to retail at full margin since they become hard for shoppers to formally compare with competitors. Innovation starts at the very top of a retail business and should form a vital part of the executive team’s KPIs. If you create a culture of innovation from the top to bottom, you will include every facet of the business from best practice technology through to merchandising, customer service, shopper marketing and so on. Don’t be afraid to seek inspiration for innovation from everywhere – for example, we source extraordinary examples of global retail innovation and thinking through our global retail expert partners at Ebeltoft Group (www.ebeltoftgroup.com) allowing us to advise others through experiences, analyses and global learnings. Taking your retail business online can be one way to innovate and refresh your total retail experience, but it must be approached as a complete multi- and cross-channel experience with a strong business case. As consumers become more fragmented in terms of where they shop and conduct business through multiple channels, expanding the business beyond the bricks and mortar to online and other forms of e-commerce is a matter of customer service, and being able to offer a convenient and enjoyable shopping experience to new and existing customers wherever they are.
“Rather than slashing prices, it’s so important for retailers to create value in their offer. From celebrity appearances and fashion shows to surprising and delightful store experiences – customers are thinking innovatively and so should you.” Customer connectivity fitness To be fit for business, retailers must think strategically when it comes to connecting with consumers and the key to becoming smarter and fitter as a retailer is how you listen and connect with your shoppers. You need to inspire, lead and manage them in new ways. To inspire your customers, you really need to understand them. We apply our proprietary Limbic methodology – a model for motives and decision-making which is unique and which allows our ‘fit’ retailers to base decisions on genuine shopper and marketplace insights. If you put all the tools in place to listen and analyse what your shoppers want, need or have to say, you have enormous intelligence in understanding what motivates and influences them to purchase. Furthermore, you have the ability to personalise their experiences, whether it’s online or in the physical store space, thus adding value and allowing you to be strategic about how you may decide to get tactical.
So how well do you know your customers? • Are you employing social media strategies to communicate and engage with your shoppers? • Do you know who or what influences your customers? Whether it’s a billboard, merchandising display or a friend or family member, if you understand this,
you can communicate to and with them more effectively. • Do you understand how your customers can or have connected with you? What devices are they using? • Are you making this connection easy for them - from internet path to purchase to a helpful App? Can they navigate your stores easily, access sales staff and the counter? • Are you personalising their experiences with you from ‘remembering’ their product selections and preferred payment methods to tailoring their delivery options? • Do you collect details, tailor offers and reward your customers for their loyalty? • Do you understand the differences in your customers across all your channels? • Do you employ cross-channel communication techniques for the total connectivity experience?
Customer service fitness The ‘fit’ retailer understands one of the most powerful weapons in its arsenal is its staff. By investing in increased service levels and staff training, ‘fit’ retailers generate more motivated and confident employees who in turn generate motivated customers. It’s easier for a customer to find a reason not to go back to a store and poor service, poor product knowledge and unmotivated staff are a large contributing
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factor in specialty retail. By measuring your service levels and rewarding excellence, you create a culture of customer service fitness in your retail business, allowing you to trade on the front foot strategically rather than tactically.
Maintain strategic control If you feel like the economy is spiralling out of control around you, don’t get sidetracked into thinking you need to react. The hallmark of a fit elite business is its ability to focus on what it can do rather than what it can’t. ‘Fit’ businesses differentiate themselves and prove their worthiness in the retail industry by controlling all the aspects of their business that they can have control of. This means being strategic instead of thinking tactically. One long term sustainable tactic you can take strategic control of is to increase efficiency across the supply chain.
So what can you control? • Image branding, impact and consistency of visual appearance. • Measurable positioning, advertising and personalised marketing campaigns.
“You can’t control the economy or the weather but you can control your retail business. Inspire, lead and motivate your customers and your staff and create an all-round unique retail experience. It becomes impossible to compare this with others, reducing the necessity to get tactical.” • Customer touch-points though an effective inline multi-channel distribution model. • Product ranging, quality, clever design, uniqueness and actionable customer feedback channels. • Supply chain efficiency – speed to market. • The use of technology to facilitate ‘fitter’ business designs. • The magnificent store experience from design and layout to customer efficiency. • The business leadership – creating a culture of innovation and motivation from top to bottom.
• Measurable paths to purchase and merchandising.
• Superb customer service. Training and rewarding performance excellence.
• Communication with, and analysis of, your customer.
• Measurement of vital ‘health signs’ of the retail business (KPIs).
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• Retail economics, cash flow, planning and expense ratios. So don’t get too tactical when times get tough. Be strategically tactical as part of your overall plan and create a difference to your retail business that makes it impossible for customers to compare it with others. That’s what we call survival of the ‘fittest’. Happy Fit Retailing! Brian Walker is Founder and CEO of Retail Doctor Group. Brian specialises in the implementation of insights driven strategy to build business fitness. For a health check on your ‘strategic business fitness’, contact Retail Doctor Group on: P: 02 9460 2882 E: businessfitness@retaildoctor.com.au W: www.retaildoctor.com.au
DON’T MISS OUR NEXT ISSUE!
Want to learn more about trends and growth industries in franchising? Need help making the big decisions? Every edition we feature advice from the experts to help you on your franchising journey.
Find out more about Success within the service sector in the march / april edition of Business Franchise Australia and New Zealand. On sale 6th March 2015.
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FP C
Want to be in the drivers seat?
…err easy chair? Do you want to really take control? The Leather Doctor franchise is Australia’s largest mobile leather care company and part of a larger group that specialise in mobile furniture repair. Leather Doctors have been the respected name in mobile leather repair for around 20 years. Established throughout Australia and now overseas we have a proven system mostly servicing the furniture market which is a huge, $7Billion p.a. (IBISWorld’s Furniture Retailing market
• 50 Franchisees in Australia, 5 in Dubai • 20 year history • Contracts with Australia’s leading furniture retailers • Proven system ensure success Give us a call and we can help you take the drivers seat in your future… or in our case the easy chair.
research 2012)
The Leather Doctor offers a proven system that ensures success. We have a national customer base of major furniture retailers and manufacturers as well as a well recognised brand within the private market. This is backed up by the fact that our growth has continued each year despite economic conditions.
1300 453 284 Email: info@theleatherdoctor.net.au
www.myleatherdoctor.com.au
National Marketing Manager: Dean Reid - 0438 844 238 Business Franchise Australia and New Zealand 71
FP CGB Franchise AUS & NZ.indd 1
26/11/12 6:03 PM
fr anch isi ng e x po
Meet the experts at Franchising Expo Researching a franchise business can be daunting if you are faced with pages and pages of search engine listings… what you really need is someone knowledgeable to explain it face to face.
“Nothing can replace a real person explaining the ins and outs of their venture.”
That’s why the Franchising & Business Opportunities Expo, which opens in Sydney 27-29 March 2015, is so popular year after year – visitors may check out a wide range of businesses under one roof, and gain expert advice and information. “It’s great being able to research business opportunities on the internet, however nothing can replace a real person explaining the ins and outs of their venture,” says Exhibition Manager Fiona Stacey. According to the Franchise Council of Australia, franchising has been remarkably successful in this region, with Australia and New Zealand having the world’s highest per capita penetration of franchised systems in the world. “Events like the Franchising and Business Opportunities Expo allow a close up look at brands you may be interested in,” says the Franchise Council of Australia’s General Manager, Kym De Britt. “One of the fundamental ingredients for success as a franchisee is brand passion and culture fit. Being able to speak face to face with franchisors and compare several businesses under one roof is incredibly valuable.” Visitors also rate highly the informative seminar sessions on all aspects of the franchising industry, from both the franchisee and franchisor angles. This year a hot topic is sure to be changes to the Franchising Code of Conduct, and their impact on new agreements. “The seminar sessions are an important
Martin Lo Surdo welcomes visitors to the Pack & Send stand
feature of the show,” Fiona Stacey explains. “We aim for a broad range of speakers and topics, with general overviews on the benefits of franchising as well as more detailed topics such as legal and financial issues.” As always, a wide range of industries will be represented at the Sydney Franchising & Business Opportunities Expo including renowned brands such as The Coffee Club, La Porchetta, Minuteman Press, Endota Spa and Poolwerx. Stacey believes the impressive lineup of exhibitors from varied industries will give all visitors the opportunity to compare and research a diverse range of franchise opportunities with investment levels from under $10,000 to more than $500,000. “Some visitors come with specific businesses in mind, while others are open to new ideas, in industries they had never previously considered,” says Stacey. “That’s the magic of the Expo, you never know quite what you’ll find!”
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The Sydney Franchising & Business Opportunities Expo is on 10am-5pm Friday 27 March – Sunday 29 March 2015 at the Royal Hall of Industries at Moore Park. Pre-register at franchisingexpo.com.au for a discounted entry fee. For more information go to: W: www.franchisingexpo.com.au
2015 dates are: Sydney 27-29 March 2015 Royal Hall of Industries, Moore Park
Brisbane 18-19 July 2015 Brisbane Convention & Exhibition Centre
Melbourne 21-23 August 2015 Melbourne Exhibition Centre
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Conflict Resolution in Franchises
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“Each party needs to be constructive in the way they deal with the other and they need to be open to considering opposing viewpoints.” Mark Sherry | Partner Harmans Lawyers New Zealand.
Operating a franchise business in the current competitive environment is difficult enough without having the extra stress of having to resolve a dispute with your franchisor. Disputes can arise within a franchise system for many reasons; some of them can be trivial and triggered simply because of personality clashes, whilst others can be quite major. In recent times, the writer has been involved in several disputes between franchisors and franchisees. Issues involved have included: 1. A franchisor changing supplier of products so as to obtain for themself a larger supplier rebate, whereas the franchisee saw the new product being supplied as inferior and harder to sell to customers. 2. Issues surrounding the franchisor moving to open a new franchise operation where the franchisee felt that the new outlet was going to be too close to their existing operation and would have a significant detrimental impact on it. 3. A funding offer by a franchisor to assist a franchisee with a fit out upgrade was arbitrarily withdrawn. Issues such as these are distracting and extremely stressful. They also create a division in a relationship that is supposed
to be ‘win-win’. Ongoing relationships between franchisor and franchisee can be permanently affected in a negative way if such matters are not dealt with constructively. It can also have a detrimental effect on the value of a franchisee’s business. In New Zealand there is no duty of good faith implied into franchising relationships by statute. Therefore, unless such a duty is actually built into a franchise agreement, and in the writer’s experience this is not common, then franchisors can legitimately make decisions that can negatively affect an individual franchisee simply because such decisions are of commercial benefit to the franchisor. There needs to be the ability to deal with issues that arise in a proactive and dispassionate way. Each party needs to be constructive in the way they deal with the other and they need to be open to considering opposing viewpoints if they are to successfully negotiate their way through the issue at hand.
A point of difference There is no legislative procedure to follow for resolving disputes between franchisors and franchisees in New Zealand. However, if a franchise system has voluntarily joined the Franchise Association of New Zealand (FANZ), then such systems are bound by the Code of Ethics and Code of Practice espoused by FANZ as best practice. The Code of Practice contains a comprehensive dispute resolution clause which effectively provides that parties will meet together to attempt to resolve a dispute by mutual negotiation. If they are unable to achieve
this, they will then attempt mediation using a process prescribed within that code. This normally involves meeting with an independent facilitator to discuss the issues, identify all matters of importance, look for possible solutions and then, if all goes well, settling on a solution that best works for both sides. If mediation fails, then there is the ability to seek resolution through the courts. For those franchise systems that are not members of FANZ, the process to follow in a dispute is often set out within the franchise agreement. In many instances, it provides for an initial discussion about the matter in dispute, followed by a mediation process and then, potentially arbitration or litigation. Arbitration is a process where the parties agree on an arbitrator (often an expert in the area where the dispute has occurred) to resolve the issue after hearing arguments from both sides. The arbitrator has the power to resolve the issue and make orders much as a judge would if the matter had gone to court. The difference between a franchise system that is a member of FANZ and one that is not, is that the code of practice for a FANZ affiliated franchise system includes rules around the standards of conduct between parties. One party is not able to cause significant detriment to another party’s business where their action could be considered unnecessary or unreasonable. There is also a positive obligation to act in an ethical, honest and lawful manner. Whilst this falls short of a ‘good faith’ obligation, it does provide for a greater balance where a franchisee feels that a franchisor holds the position of power.
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“There needs to be the ability to deal with issues that arise in a proactive and dispassionate way.�
Conflict resolution Whatever the situation, if a dispute arises between franchisor and franchisee, it is important to approach the issue, where possible, with the intention of resolving it in a manner that will enable all parties to continue to have a constructive relationship in the future. To do otherwise means that even if the issue itself is resolved, the ongoing relationship can be permanently affected in a negative way, and this in turn can lead to ongoing stress that impacts on productivity and profitability. It is important in scenarios where a franchisee feels that there is a power imbalance or that they are generally not good at dealing with conflict, that they instruct a lawyer with good franchise knowledge and dispute resolution skills to assist them in their time of need. Where possible such advice should be sought as soon as it appears
that the issue may not be able to be resolved by mutual agreement. In many instances it is helpful to seek some brief advice prior to any meeting being held to try and informally resolve an issue as good franchise lawyers will have significant experience in how disputes can best be resolved. A franchisee will find that by seeking proper advice in the early stages of a dispute that they are likely to save a lot of time, cost and angst. The later in time that a lawyer is introduced to assist in resolving a dispute, the more difficult it can be for them to reach an outcome in a cordial manner that is also mutually satisfactory, as parties can already have acted in a way that makes it more difficult to recover a constructive ongoing relationship.
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Mark Sherry, LLB (Hons), BCom, is a Partner with Harmans Lawyers New Zealand. He leads the commercial and property team, specialising in franchising, hospitality, rural law, property matters and asset protection. Harmans is a full service legal firm providing excellent service and advice, allowing Harmans to develop long-term, solid relationships with their clients. For more information please contact Mark Sherry at: Phone: +64 3 352 2293 Mobile: +64 21 524 890 Email: mark.sherry@harmans.co.nz Web: www.harmans.co.nz
Franchise BUSINESS
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profile : Jan-Pro
A WORLD CLASS FRANCHISE With over 12,000 franchisees worldwide, JAN-PRO is a world class commercial cleaning franchise. Starting in the US in 1991, and expanding internationally in 1999, JAN-PRO’s first Australian office opened in September 2011. Consolidating their growth since 2011 in Brisbane, Melbourne and Sydney, offices in Perth and Adelaide have now opened, proving that JAN-PRO as one of the fastest growing cleaning groups in the world and on track to become the best franchise system in Australia. Further proof of the phenomenal annual growth of JAN-PRO is shown from their many accolades received, including in 2014 number one Commercial Cleaning Franchise overall plus number one fastest growing commercial cleaning franchise globally by Entrepreneur Franchise 500 ranking.
The JAN-PRO Guarantee JAN-PRO service any commercial facilities including offices, health clubs, medical centres, banks, churches, restaurants and day-care centres and prides itself on providing all clients a written quality satisfaction guarantee on its services. Riaz Rafiq, Managing Director of JAN-PRO Cleaning Systems for Australia and New Zealand says, “The world famous JAN-PRO Guarantee provides a satisfaction safety net for every one of our clients. This is
imperative in an industry where sub-standard service is unfortunately prominent – we’re doing everything we can to stamp this out.” Anton Martin, Director of JAN-PRO Cleaning Systems Melbourne says “Our customer service, inspection methods and regular customer contact differentiates us from our competitors; we are part of a service-based industry, so we like to put an emphasis on customer service,” he said. With a cleaning schedule customised to fit around the client, JAN-PRO creates corporate cleaning packages and anything other than a fully satisfied client just isn’t an option.
Nationwide Opportunities With the two additional offices to be opened shortly in Perth and Adelaide, JAN-PRO are seeking franchisees from across Australia, to join the 12,000 franchisees across the globe, who generate nearly $300 million in sales per year between them. Master Franchisors for JAN-PRO NSW Andrew Barker and Sam Clifford have recently joined the JAN-PRO business and bring with them a wealth of knowledge. Bringing his experience as a CEO of another global franchisor and with an extensive background in commercial cleaning franchising, Andrew says, “JAN-PRO sets itself apart from other franchisors due to the quality of its training, pricing of client contracts and ongoing operational support. “Our focus is Western Sydney as this has been identified as the fastest growing region in Australia today with massive plans for business and commercial growth in
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Parramatta and all outlying suburbs.” Anton continues, “We look for growth potential when we seek our franchisees and we want people with long-term outlooks, not just those seeking short-term gain. How much money a franchisee can make depends on the type of franchise plan they buy, and of course, how hard they are willing to work to build their business.”
Training and Support JAN-PRO provides all initial training through its five-week training program so previous cleaning experience is not necessary. JAN-PRO thoroughly trains franchisees in all processes, and then continues to support its franchisees going forward as they build their business. Full administrative support is also provided to franchisees, with all billing, collections and operational work completed by Head Office. Riaz adds, “We are different because we empower our franchisees to grow their business. We provide a thorough training program for new franchisees and continually invest in training to make sure our business owners are well equipped to run their business.” With most economists and analysts agreeing that commercial cleaning is a recessionresistant business, and with franchises from as little as $16,500 plus GST, there’s never been a better time to join this global award winning franchise. For further information contact: P: 1300 JAN PRO or 03 9077 0075 W: www.jan-pro.com.au
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Where to turn for
franchise funding? You’ve done your research, found a franchise brand that meets your requirements and had the green light from your advisors to proceed. What next? Unless you are one of the fortunate minority that has existing cash reserves from sale proceeds of a previous business, severance payments or even cash from personal assets, you will need to borrow. Franchise funding generally comes from one of several sources:
Friends and family: This relatively minor provider of finance tends to be more active with lower entry cost brands and is often aligned with younger franchisees yet to accumulate a sufficient amount of their own equity to complete the transaction. It can be a fast, cheap and simple type of funding; backed by those that know, trust and have a very personal desire to see the franchisee succeed. This can be a terrific form of finance but should also be taken on with some clear ground rules around when and how it will be repaid.
The franchisor: This is a growing (and not necessarily positive) trend. A number of franchisors, frustrated with traditional lenders or desperate to convert less capitalised (but otherwise apparently strong potential business partners) into franchisees are effectively financing those new franchisees into their systems. This can be done through direct lending or by using other levers to
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?
“No matter which lender you turn to they will be looking for well organised applicants and solid future business operators.” Darryn McAuliffe | CEO FRANdata Australia
support the purchase price. Stepped royalty payments and special rental arrangements are examples of how franchisors can help franchisees that would otherwise have difficulty financing their franchise acquisition. From a franchisee perspective the upside is they commence trading earlier in the system and often on favourable financial terms, however, significant downside risk can also be created through the additional powers now resting with the (lending) franchisor. A separate issue for franchisors is they could inadvertently position themselves as a NBFI (Non-Bank Financial Institution) which can create an enormous adverse impact on their risk profile with banks and create a possible breach in existing lending covenants.
Banks and other lenders: For most prospective franchisees it will come as little surprise that the banks are still the most common and reliable source of franchise finance. Less well known, and often hard to identify, is who the active lenders and strongest supporters of the franchise sector are. Franchisors, and the professional advisors of franchisees, have long lamented the inconsistent and dislocated approach of lenders in franchising. However, banks continue to be driven by a desire to lend money to borrowers with an acceptable risk profile and on the whole maintain a healthy appetite for franchise lending. The risk profile for franchising can be enhanced by the historical information that can be provided or accessed. History can provide significant comfort (or anxiety) around how the future may look. Some of the key areas that lenders will look at include the existence of a proven business model, the trading performance of existing franchisees, the performance of their existing loan book,
the capacity and willingness of franchisors to support ‘distressed’ franchisees and the depth of the secondary (resale market). Wellmanaged and strong franchise brands can offer a strong and attractive risk profile for banks. For franchisees this should translate to quicker, easier and more competitive finance terms. The major Australian banks remain the most active in the franchise lending space with the ANZ, CBA, NAB and Westpac all maintaining dedicated franchise bankers and franchise lending policies albeit there are significant differences in their models and current activity levels.
Secondly, look for banks that are actively expanding their offering; employing more franchise lending staff, providing more franchise sponsorship and approving more franchise brand accreditations. These are all good signs of their support for the sector.
Thirdly, ask the franchisor to connect you with recent franchisees into the system and ask them to share their recent franchise lending experience.
If your first interaction with the bank does not leave you with confidence that the banker is familiar with your brand and has a clear understanding of required timelines then it is wise to immediately engage an alternate provider. Sometimes a reputable finance broker can be invaluable in this process. An added benefit, of course, is the potential to compare two or more offerings and select the most appropriate deal for you. A little competitive tension between lenders can be a good ingredient for securing the best deal.
Franchise lending activity and appetite is also apparent in regional lenders such as Bankwest, Suncorp and the Bank of Queensland and in recent times we have seen the emergence of specialised lending providers such as Silver Chef, Cashflow It and the new franchise lending fund CAPFAC. Regardless of the lender, there are three key things that new or refinancing franchisees can do to simplify their search and increase their chances of accessing franchise finance. 1. Find a ‘franchise friendly’ bank: Look deeper than a bank’s broader small business messaging. While franchising is a big part of this group it is best looked at independently. Most banks claim to be actively involved in franchising but in reality there is some variance in how active their appetite is for the broader franchise sector. There are a few tricks for identifying ‘franchise friendly’ lenders.
Firstly, identify individual bankers with direct contact numbers for franchising (rather than a central number). These bankers are responsible for servicing the sector, will have generally had specialist training, be actively involved in the sector and better equipped to service your needs.
2. Find a ‘lender friendly’ franchise brand: Ask your franchise brand who to talk to at each bank. (This will provide an immediate test of the strength of their banking relationships and an indication of the effort they have put into becoming ‘lender friendly’).
Banks lend more money and more easily to brands deemed to be ‘lender friendly’. Through a lender’s eyes ‘lender friendly brands’ have: • a desire to be clearly identified as a genuine and quality franchise brand; • a clear ability to provide lender information in a timely and transparent manner; • a commitment to operating under and respecting the Franchise Code of
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“Banks lend more money and more easily to brands deemed to be ‘lender friendly’.”
Conduct; • a sound financial position (franchisor);
and solid future business operators. A fully completed application form with copies of supporting documentation and a simple business plan will go a long way to creating a good first impression.
• a proven track record and skill at recruiting, training and supporting franchisees; • an ability to provide insights into unit performance (franchisees); • an ability to provide insights into the secondary market (unit resale values); and • an ability to work constructively with lenders in the event that expectations are not being met.
Many well managed and strong franchise brands are broadening the number of lenders they deal with to safeguard against any reduced lender appetite from their one or two key existing relationships and restrictions that may arise from any internal wholesale lending limits (sometimes referred to as caps) that lenders may introduce.
Finally, and most importantly: 3. Put your best foot forward: No matter which lender you turn to they will be looking for well organised applicants
Prepare yourself well with a good understanding of what information is required, how much you need to borrow, how you will pay it back and what your ‘fall back’ position will be if your business expectations are not met. In lender terms the ‘fall back’ position is what they think they can rely on if the repayments cannot be made. Whilst they will take on some risk they will always be looking to minimise this through either an acceptable cash contribution by the borrower, an acceptable level of equity in assets pledged as supporting security, comfort in the resale market for the franchise unit or the willingness of the franchisor to buy the unit back from a struggling franchisee.
Whilst not always straight forward, well researched franchisees and ‘lender friendly’ brands continue to find ways to access and
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simplify the funding of new franchise units. Darryn McAuliffe is the CEO of FRANdata Australia and has over thirty years’ experience in the banking and finance sector. He is a CPA and experienced former bank executive across business banking, risk management and industry specialisation. For four years prior to joining FRANdata he ran the NAB’s franchising strategy which included the accreditation and portfolio management of major Australian franchise brands. FRANdata has been supplying independent and credible information to support key franchise decisions for more than twenty five years. Positioning brands for improved finance access is a core specialty. FRANdata operates the Australian Franchise Registry™. P: 02 8346 6093 E: dmcauliffe@frandata.com.au W: www.frandata.com.au www.thefranchiseregistry.com.au
All inclusive vehicle packages No territories Full call center support
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is franchising
right for me? The focus of this article is on you, as a potential franchisee. It is not about which franchise is best to buy or what to watch out for when buying a franchise – it’s about whether franchising is right for you. Before we can examine your fit for franchising, you need to understand that there are many types of franchise models and
even within the same industry you can come across a variety of approaches to franchising as franchisors have designed their commercial and legal models to fit specific strategies or objectives. However we can categorise franchises into three broad types ……and your fit is likely to change based on the type of franchise you are considering.
Sub franchises Sub franchises are the most common type of franchises in Australia. Here you have a direct contractual relationship with the franchisor to operate a site or territory under their brand and system. Usually it is a single site or territory but may also involve multiple sites or territories.
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New entrants to the franchise market most often purchase a sub franchise as the size of the business, the money needed to fund and operate it and the labour to support it fit within the means of the average person coming out of employed roles and starting a business for the first time. The franchisors usually provide initial and ongoing training to new franchisees as well as support in setting up the new business or site. Sometimes they even involve the franchisor providing a complete ‘turnkey package’ where they have found the site, conducted the fitout and set everything up so all you have to do is pay the money, attend training and get ready to start trading.
“Your industry knowledge and business acumen will be critical as well as planning and team management skills.” Robert Graham | Managing Director CEO Consulting
Area franchises Area franchises can also be known as area development or franchise development arrangements. Here, the franchisor grants the rights to a franchisee to develop and operate a larger territory or series of sites. It may be the rights to develop stores or provide services across, for example, all of New South Wales or large parts of Australia. These franchisors may be international businesses looking to have one or a small number of franchise partners in the Australian market or it could be a domestic franchisor that does not want to or does not have the financial resources to operate a franchise network with a large number of franchisees. Either way, the franchisee in this sort of arrangement will typically be a more experienced business person or group with the financial and marketing resources to run a larger business and work to a series of agreed performance milestones for growth or sales performance of the business. It is also common in these arrangements for franchisees to be rewarded with a share of profits or some buy out formula if they have created the agreed value in the network before exiting.
Master franchises The master franchisee is the ‘middle man’ between the franchisor and sub franchisees. Unlike the sub franchise model where the franchisee has a direct relationship with the franchisor, under the master franchise model their relationship is with the master franchisee. The master franchisee has purchased the
rights to develop, operate and provide services to a series of sub franchisees within an agreed area. In Australia, master franchises are most often divided along State lines, so you have a master franchisee for Victoria, another for Queensland, another for New South Wales etc. They sell the franchises in their area and they support the franchisees. You may even need to buy your stock from them. In effect, they become your franchisor and your contract is directly with them.
Understanding what you are getting into In all forms of franchise models you are entering into a fixed term contract to develop and operate a business under the brand and systems determined by your franchisor. They have a model, a product or service range and a brand that has usually been tested in the market and they have worked out the best practices and success factors to make a site or territory viable. You are buying access to their intellectual property and business systems and the franchise agreements will bind you to follow their systems and rules and they may even require you to achieve minimum levels of sales or performance standards. The upside for you is the prospect of a more successful business than if you started one yourself, the training and support that comes with being part of a group and the potential for capital gains when you sell your business later on. The brand and the success of other franchisees has the ability to add a premium to the sale price.
Most franchisees buy a franchise because they want to make money. They want to establish a strong cashflow that can support their wages and savings plans and they want to sell their business at a price higher than what they bought it for, so money and wealth creation is a driver in 99 per cent of cases. Most franchisors want you to make money. When you make money, so do they. Their revenue streams are usually derived from royalties you pay them, products or services you sell for them and fees you pay on the expansion or eventual sale of your business. So if you are shy about making money or talking about money, then this is one of the first things you need to overcome to be a successful franchisee.
Is franchising right for you? – General criteria Whether you are looking to buy a shop based franchise, a service based franchise or a mobile style franchise there are some common requirements that you must acknowledge and accept if you are to enjoy working in your franchised business and being part of a franchised group. • Recognise that a franchise is a business. It is not just a job. • Recognise that the franchise is your business. Therefore it is your primary responsibility to make it work. • Know what you enjoy and what you don’t. Find a franchise that enables what you enjoy and trains or supports you in what you don’t. • Understand what your personal expenses
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and investment criteria are. Starting a business can require significant investment outlays and some franchises generate cashflow faster and stronger than others. If you do not have sufficient money to pay for the franchise and support it during the startup period then you will eat into your lifestyle and home expenses and impact your quality of life or family situation. Make sure you have extra money or an alternate income to fall back on. • Think about your home or family situation. Does your family support your decision to start or buy a business and do you all understand the risks and requirements of being in business and part of a franchised group? • You need to believe in the power of the brand and be proud to represent that brand and wear their uniforms. • You need to be customer focused and recognise sometimes your customers are also the same customers for other franchisees as well (eg McDonalds customers dine at multiple McDonalds outlets). • If your franchise requires you to sell products, you need to be a proactive and effective sales person, not just sit in your office or store waiting for customers to arrive. • You need to be a team player and work collaboratively with your franchisor and other franchisees. • You need to be prepared to follow directions, systems and group requirements. • You need to be trainable and open to learning and following specific procedures. • You need to be focused and keep focused on your business and your role in that business. • If your business requires staff, you need to be able to attract, train, manage and motivate your staff.
Is franchising right for you under a sub franchise model? The key things under a sub franchise model are to have the sustained motivation to develop the business, sufficient money to do it properly and consistently without having to dip into daily lifestyle or home budgets and also being the type of person that can work independently but also follow systems and rules. If you want to reinvent the franchise,
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the product range, the pricing or company policies then you are best to set up your own business and not join a franchise. Franchises thrive on the power of the group providing consistency of service and quality standards as well as the power of group branding and marketing. You can run your own business in a structured and supported environment but you are tied into the culture of ‘we all do it this way’. In most cases that is the safest approach anyway as it is the proven business method and it is really what you are paying for, access to brand, products, suppliers and best practice procedures.
Is franchising right for you under an area franchise model? To be a successful area franchisee you need significantly more experience, resources and financial depth than a typical sub franchise. You are taking on a larger business and usually a tight set of business development targets such as sales performance, rollout of a certain number of stores or operators within a specific period etc. Your industry knowledge and business acumen will be critical as well as planning and team management skills. Often, area franchisees are partnerships or small companies with a mix of people with specific backgrounds such as marketing, sales, retailing, franchise development and/ or finance. Unless you have come from an external role or corporate position that encompasses many of these skill groups, it may be difficult to meet the criteria to qualify as an area franchisee. However, if you are serious about running a larger business you may always team up with colleagues or family to assemble the small team needed to drive and support this style of franchise but it is usually a big stretch for a first time business owner.
Is franchising right for you under a master franchise model? This scenario has two parts: 1. Would you make a good master franchisee yourself? and 2. Is being the sub franchisee of a master franchisee right for you? Master franchising is similar to area franchising in that you are usually developing a larger area or team and your contract requires you to sell a certain number of sub franchises and/or product within a specific timeframe. In turn this requires different management skill sets and more
“Find a franchise that enables what you enjoy and trains or supports you in what you don’t.” money to purchase and operate. The financial returns can be very good but usually the returns eventuate in the medium to longer term so if you don’t have a lot of money or need faster returns then master franchising is probably not the best option for you. Being the sub franchisee to a master franchisee comes with many of the considerations outlined above for being a normal sub franchisee. There are overarching rules for the entire franchise brand and group and then there are local rules and terms that are unique to the master franchisees requirements. A good master franchisee can provide strong and localised support for the sub franchisees in their network. A bad master franchisee can adversely affect your business so the quality of your master franchisee, your relationship with them and how they are supported or governed by the head franchisor will all influence your success and enjoyment of your business with them. The key with being a sub franchisee under a master is to respect their role, treat them like your franchisor but also keep an eye on how other parts of the group are going to make sure you are getting the best quality and level of support possible. If you are not, you need to be the sort of person that is prepared to try and make it work with the master franchisee but ultimately if it cannot, then be prepared to go over their head for the sake of the brand and your local businesses.
Final word Ultimately, franchising is a business and it is your business. To get the most out of being part of a franchised group you need to bring your energy, resources and team mindset to the group. You own a standalone business but you share a brand and business system and the same set of procedures and rules govern everyone in the group. This structure, consistency and best practice can create a lot of financial value for you and your fellow franchisees but at the end of the day any business requires sustained effort, good management, ongoing marketing and superior customer experience. Franchising will be a good choice for you if you recognise these factors and can enhance them by leveraging the knowledge and resources of your franchise group. Robert Graham is the Managing Director of CEO Consulting and one of Australia’s leading Franchising and Licensing experts. Robert specialises in developing new franchise systems and growing existing franchise businesses in Australia and International markets. For more information contact: P: 1300 764 484 E: robert@ceoconsulting.com.au W: www.ceoconsulting.com.au
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sn a pshot: LOCA L A PPLI A NCE REN TA LS
Help yourself while helping others of running the franchise on a day to day basis so all that’s needed is enthusiasm and the desire and determination to grow your own successful business. With an annual conference each year you will be able to attend you will keep up-todate with new methods, new products, and sales and marketing techniques, whilst at the same time interacting with other franchisees and discussing what works for them. Systems and procedures are continuously updated, allowing you to take advantage of this time to increase your skills and improve your business.
Exclusive territories
In an ever increasing home appliance rental market, Local Appliance Rentals are the largest rentals franchise in Australia today. Since franchising five years ago, there are now more than 100 franchisees in Australia, New Zealand and the United Kingdom. With a wide range of products including TVs, computers, game consoles, home entertainment systems, stereos, coffee tables, dining tables, fridges, freezers, microwaves, washers, dryers, air conditioners, beds, baby furniture, BBQs, outdoor furniture, fitness equipment and kids’ play equipment, Local Appliance Rentals helps their customers get what they want.
Differing entry levels As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance. The only requirement is a basic home office and funds available to purchase the rental goods on behalf of the customers. With initial investment required from just $29,750 plus GST, there are three levels of franchise available, Silver, Gold and Platinum.
Silver: This is the smallest franchise level and comes with the minimum territory size of approximately 16,500 people. This franchise level is suitable for operators in a regional area, usually in a small country town. Gold: This franchise level comprises of three franchise units with a territory size of approximately 50,000 people. This is more suited to the full-time operator with more time and capital to invest, and would ideally suit a couple or motivated sole operator. Platinum: This franchise level comprises of 6 franchise units with a territory size of approximately 100,000 people. This enables a full-time operator to either operate the franchise themselves or to have several subfranchisees working under them. How many hours you work in your franchise each week is up to you. If you intend to operate the business part-time it’s recommended that you start with the silver level of franchise. The hours are also very flexible, so you may choose to work 35 hours one week but only 10 the next.
Training and ongoing support The business is easy to understand and easy to run, therefore no specialist skills or experience are required. The Franchisee Kit and training provided will cover all aspects
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Each franchisee receives their own exclusive territory. Divided into franchise units, with each unit consisting of approximately 16,500 people, which experience tells Local Appliance Rentals is the minimum number of people required to run a successful small franchise on a part time basis. For a full time business, ideally there would be three franchise units, totalling a territory size of approximately 50,000 people and these differing territory sizes are reflected in the three levels of franchise available. Each exclusive territory is individually tailored for each franchisee, with areas delineated by postcode.
Why choose Local Appliance Rental? With a team dedicated to providing customers with brand new, high quality products that meet their needs and circumstances, Local Appliance Rentals pride themselves on the service provided to their customers, from the initial contact through to the end of the rental term. Don’t miss out on your opportunity to join the largest rental franchise company in Australia, visit: W: www.localappliancerentals.com.au/ franchising
Bringing trusted businesses and the community together
Probably the best franchise opportunity in Australia today thebestof
Making local life better for everyone in the community! thebestof might not be the most well known franchise here in Australia, but with an eight year track record and more than 250 franchisees in the UK, it’s certainly very successful.
thebestof
After it was launched in 2005 by British entrepreneur, Nigel Botterill, thebestof quickly became the fastest growing franchise in the UK. Over the last few years it has shown no sign of losing pace: thebestof continues to go from strength to strength, with Nigel amassing a cupboard full of awards along the way.
Thebestof hopped over to Australia in 2011 and now, in 2014, with a new head office and Australian team it is set to be an exciting year ahead! Emma Gillings heads up the thebestof Australia and is also a franchisee based in Adelaide, SA. Emma is fully immersed in all aspects of the business and understands first-hand what it takes to be a successful franchisee, and the rewards available. Emma has her own fascinating story about how she came to Australia, is building her franchise and now taking thebestof forward over here ‘thebestof is a business with low overheads and unlimited earning potential, which makes it a very attractive business opportunity. On top of it all, I get to meet some fabulous people and make a difference in the community.’ Emma Gillings Marion and Morphett Vale, SA Franchisee since 2012 Head of thebestof Australia
What is thebestof?
thebestof is a marketing franchise The franchisees work on a local level with only the best businesses in their area. They provide bespoke marketing solutions that actively help those great local businesses get more customers, using both cutting edge online technniques and more traditional offline marketing methods. It’s a powerful combination. thebestof has flourished since its launch in 2005 with many franchisees earning sizeable incomes.
‘Residual income has opened my eyes to a better way to live...’ I was a plumber and gas fitter working locally in Bunbury doing maintenance, but never really loving what I did so I started researching business ideas and opportunities. I found this ‘getthebestof’ website which explained to me how a thebestof franchisee works with only the best businesses in an area to help promote them and really get their name out in the community. I had found my calling! What a brillaint business! Having no background in marketing I was surprised to learn that the most important thing with running this business is PASSION for your local area. I started making a profit very quickly and businesses call me every week to find out how they can join and what it is that we do. Residual income has opened my eyes to a better way to live without so much stress! It is rather comforting to know that X amount of dollars will land in my account every month. Harrison Oakley Bunbury, WA - Franchisee since 2012
Connecting local people and businesses With thebestof, a franchisee becomes part of the community and works to connect local people and the businesses and organisations that serve them. The aim is to make life better for everyone. Because of the nature of the business, it’s a huge help if franchisees are genuinely passionate about their community. At thebestof we are extremely choosy about who we accept as a franchisee - it’s a people business after all. After eight strong years, thebestof team know well the characteristics required to become a successful franchisee. New franchisees don’t necessarily need sales experience or technical skills - as long as you can use a computer and send an email, that’s all you need. What matters most is that each new franchisee is a proper people person. If you’re bright and switched on, unintimidated by hard work to get started and you’re passionate about making a positive difference to your community, then thebestof could be the perfect opportunity for you.
To discover whether your area is available, to get more information or for an informal chat, contact thebestof team on the number below
Get the full story at www.getthebestof.com.au or call Emma on 08 8358 6112 for more information Business Franchise Australia and New Zealand 89
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Preparing for a Cyber Attack So Your Franchise Isn’t Affected this new year
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“You should always back-up your system so that you’re prepared if something ever happens.” Adam Heitzman | Co-Founder and Managing Partner HigherVisibility
Every company needs to have a plan in place to protect their website from a cyber attack, and this is extremely crucial for franchise companies because you have multiple locations and may have multiple websites. While cyber attacks happen everyday, (which you can actually see in real-time at http:// cybermap.kaspersky.com), the New Year is one of the busiest time of year for attackers. There is more financial information out there during the holidays—more shopping going on, more companies getting overwhelmed and distracted, etc.—which makes it the perfect time for an attack. To state the obvious, a cyber attack can clear all of your data and seriously hurt your company, sending you into a legal mess and an even worse cleanup and rebuilding of your business. Fortunately, there are several ways you can make sure your website is prepared and ready to fight off any potential incidents.
Cyber Security Definition and Statistics Before diving into how to be prepared, it’s important to understand what a cyber attack actually is. Essentially, a cyber attack
is when someone/a team of people (or a computer program run by someone) break into your website and steal and delete your company information. Below are a few statistics about cyber security from the IBM Security Services 2014 Cyber Security Intelligence Index: • In 2013 more than 500 million records of personal information were stolen.
How to Make Sure Your Website is Prepared for an Attempted Cyber Attack And so without further ado, below lists a few ways to keep your website protected 24/7: 1. Use software to protect your website and keep it up to date.
• There were 91 million+ security events detected in 2013 with 16,900 attacks. • $3.5 million was the average total cost to U.S. companies for a data breach last year. • Over 75 per cent of incidents targeted five industries: Health and social services, retail and wholesale, finance and insurance, information and communication, and manufacturing. • Malicious code was the primary mode of attack for 38 per cent of cases. • Outsiders instigate more than half of attacks, but there are many cases of ‘insiders’ working to aid attackers. If you’re interested, check out the three biggest server attacks of 2014 thus far at: www.hostt.com/3-biggest-server-hacks-2014. Do note, however, that a cyber attack isn’t something to lose sleep over. Although they happen every day, the majority of companies are not affected. It’s simply important to go over your plan of action every once in a while in the unlikely event that something could happen. You can never be too safe when you own a franchise.
This is of course your first step. Using software such as Bitdefender or Kaspersky, which work well for franchise websites, will be your biggest defense against attackers. What experts continue to say and we all continue to ignore, however, is that this software needs to stay updated. It’s easy to forget about cyber attacks if you’ve never been attacked, but this software is actually updated all the time as hackers begin to figure them out or new threats are introduced. It’s up to you to take advantage of these new updates by constantly checking your software and taking the time to actually accept the changes.
2. Have a back-up system.
You should always back-up your system so that you’re prepared if something ever happens. This will help put your mind at ease and ensure that your information is stored in a separate location. There are quite a few plugins out there to help you backup your information, such as BackUpWordPress. You can also save your information onto an external harddrive with the help of your IT team. A
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“There are several ways you can make sure your website is prepared and ready to fight off any potential incidents.”
good rule of thumb is to backup your website once per week. 3. Use two-factor authentication for logging in to your accounts.
Instead of just asking for a login and a password (which is one-factor authentication), change your website to require the need for two steps of information, such as a code send to a smartphone. The idea here is having layers of security in place to help keep you more protected.
5. Switch to a secure HTTPS server.
4. Keep your passwords different and difficult.
This is highly recommended for personal use, but it’s an easy tip that can help keep a franchise secure as well. Always make sure all of your passwords are different, and make them incredibly unique and difficult to crack. This means using upper and lower case letters, special characters, and keep the length long.
You can always tell whether or not a website is secure based on the URL. Any HTTPS site means it is using something called a Secure Sockets Layer (SSL). The HTTP therefore means that a website is not secure. An HTTPS site will send information across the web that is encrypted, whereas an HTTP site sends information in plain text, which is easier to read and find for people trying to steal information. You can learn more about how to make the switch and how it will actually boost your SEO on our website.
6. Extra Tip: Make sure cyber security isn’t only in place at your head office.
You have to make sure that you have a comprehensive program in place for all
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of your franchise locations. This is the main reason that attackers sometimes find new franchise companies more vulnerable and an easier target. Talk with your IT team to make sure that your software and back-up plans are working for all of your webpages and all different locations (if they have their own website, social accounts, logins, etc.). Adam Heitzman is the Co-Founder and Managing Partner at HigherVisiblity, a nationally recognised SEO firm that offers a full range of internet marketing services. For more information visit: W: www.highervisibility.com
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Behind the
headlines Expressions of interest open for new franchise funding model A non-bank investment fund that will specialise in lending to franchisees of accredited systems, and which converts the loan into equity in a franchisee’s business if a default occurs, will be launched in 2015 and is now seeking expressions of interest from franchisors. The hybrid capital lending model is being pioneered by Queensland-based Elcano Capital, which is currently establishing a major lending fund for the franchise sector
and is registered as a venture capital limited partnership. The new lending model has been developed by retired Bank of Queensland CEO Graham Hart and finance specialist Darren Lelliott to improve the management of lending risk between lender and borrower in a more flexible manner than banks so that franchisors and franchisees can concentrate on maximising business outcomes. Expressions of interest for lending accreditation and pre-approval of franchise systems are now open.
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RFG settles Gloria Jeans’ purchase, buys yet another coffee brand Listed multi-brand franchisor Retail Food Group (RFG) has completed its acquisition of the domestic and international operations of Gloria Jean’s Coffees, as well as related wholesale coffee roasting operations in Australia and the United States, for an estimated $163.5 million. The deal was announced in October and settled on December 3, and adds around 800 domestic and international stores to the RFG stable in up to 40 international markets, plus coffee roasting facilities in Sydney and Los Angeles. RFG has also announced it will buy Brisbane-based coffee roasting and wholesale business Di Bella Coffee for $30 million, plus up to another $17.3 million in milestone and earn-out performance payments. The purchase price represents a multiple of between five and six times earnings.
Jason Gehrke | Director Franchise Advisory Centre
Di Bella Coffee was founded in 2002 by Phillip Di Bella, who was contraversially stripped of the 2014 Telstra Queensland Business of the Year award in June this year after he posted an expletive-laden rant online about State of Origin referees and commentators. The acquisition will increase RFG’s coffee capacity by another 30% (including the recently completed Gloria Jeans deal), and Di Bella will take-up a full-time role with RFG. The deal is expected to settle by January 31. RFG has also cancelled its share purchase agreement to buy pizza restaurant chain La Porchetta after a key sale condition could not be met. In late August, RFG announced its intention to buy the 70-store La Porchetta chain, along with the 236-outlet mobile coffee franchise Cafe2U in a deal collectively worth an estimated $31 million. While the individual price for each purchase was not disclosed, RFG’s acquisition of Cafe2U was not been affected by the cancellation of the La Porchetta deal.
Couriers Please sold for $95 million Australian delivery franchise Couriers Please has been sold by its owners New Zealand Post to a local subsidiary of Singapore Post for AUD$95 million, according to a media report. New Zealand Post, a franchise owned by the New Zealand government also owns and operates the KiwiBank franchise in New Zealand, and has fully-owned Couriers Please in Australia since 2012. Couriers Please is itself a franchise, with 570 couriers providing delivery services in
metropolitan locations around Australia. NZ Post will use the proceeds of the sale to invest in the transformation of its postal services in New Zealand.
Franchise conman captured on TV After more than a year on the run, police have arrested fugitive franchise conman Peter Foster near Byron Bay, with the event captured by a television crew and broadcast nationally. Foster had been on the run after receiving a three-year jail sentence last year for contempt of court for his involvement in the SensaSlim weight loss franchise scam which defrauded more than $6 million from 110 franchisees. Foster now faces additional charges of resisting arrest and assault after he allegedly grabbed at a police officer’s gun whilst being arrested. It has also been revealed that while on the run, Foster is alleged to have made millions from his involvement in an online betting scheme, and claimed to have been caring for his elderly mother. While on the run, Foster had pretended he was in Fiji by posing for photos with a Fijian newspaper, and was even subject to an Interpol alert.
Major franchisee shareholder resigns as director of Collins Foods A multi-unit franchisee of KFC who is the second largest shareholder of listed Queensland company Collins Foods may yet consider making a takeover bid for the company despite resigning from the board after clashing with other directors.
According to a media report, Sheppartonbased Stephen Copulos, owner of of the Copulous Group which is also the secondlargest operator of KFC restaurants in Australia, resigned from the Collins Foods board after a failed attempt to refocus the company’s strategy on its KFC operations, and to divest itself of its struggling Sizzler restaurant chain. Copulos could make a takeover bid for Collins, or sell his shares, but is not reported to have committed to a course of action yet.
Liquidators close Australian operations of Wagamama Australia’s eight Wagamama restaurants operated under a national franchise by Edible Concept Holdings Pty Ltd have been closed while liquidators scramble to find a buyer for the remains of the business. Wagamama had operated in Australia since 2005, and shareholders of the Australian business included former Bank of Queensland CEO Stuart Grimshaw.
Competition review recommendations may benefit franchising A draft report into Australia’s competition policy could be good news with franchisors, with recommendations that retail trading hours be deregulated, and that processes for authorisations and notifications be simplified. The deregulation of retail shopping hours would allow franchisees the freedom to trade longer, while the simplification of authorisations and notifications would make it easier for franchisors to establish exclusive supplier arrangements to standardise supplies across a network.
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A franchise is not like any other business So make sure your accountant
knows
franchising
When you call on the Walker Wayland Australasia network of 13 accounting firms you have access to more than 50 Partners and Directors and hundreds of highly skilled professionals. Our firms are based in every Australian mainland State and in New Zealand. We have worked with the franchise industry for many years and count dozens of successful franchisees among our clients. So, whether you are looking to purchase a franchise and need professional support or you would like to improve the bottom line performance of your franchise business, call a Walker Wayland accountant first. We can assist you with: • • • •
Due diligence services when you are thinking about buying - or selling Growth strategies Marketing fund audits Business planning and structuring
Before you make your next move, call 08 9364 9988 to find out your nearest Walker Wayland franchise-qualified accountant or visit www.wwaustralasia.com
Walker Wayland Australasia Limited Level 2, 129 Melville Parade Como WA T +61 8 9364 9988 F +61 8 9367 3444 wwaustralasia.com
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PROFESSIONAL SERVICES LISTINGS h ot to pics
HARMANS LAWYERS
Ivan Poole Lawyers
6/64 Marine Parade (PO Box 10857) Southport QLD 4215 485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help. Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for.
P 07 5591 2522 F 07 5591 2511 Peter Thelwell - pt@ivanpoolelawyers.com.au Ivan Poole - ijp@ivanpoolelawyers.com.au Sam Rees - sr@ivanpoolelawyers.com.au www.ivanpoolelawyers.com.au Ivan Poole Lawyers has specialised in franchising for over 25 years and also provides expertise in Licensing and Intellectual Property. Acting for over 50 national franchise systems and a number of Licence Systems both in Australia and overseas, Ivan Poole Lawyers develops long-term relationships with franchisors and takes pride in helping them achieve success.
Our Franchising Team can assist with a full range of franchise related services, including:
Ivan Poole Lawyers acts for franchisees of various types of franchise systems when buying, renewing or selling their franchised business with vast experience in:
- Legal rights and obligations under franchise documentation
• Disputes including mediation;
- Business structures and asset protection structures - Financing issues - Employment issues and health and safety - Lease arrangements and agreements - Terms of trade - Dispute resolution We are members of the Franchise Association of New Zealand
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• Distribution Agreements; • Licensing; • Structure of Franchise Systems and Documentation; • Master / State Franchisee models; • Trade Marks; and • Copyright. Ivan Poole Lawyers are Member of both the Franchise Council of Australia (FCA) and the Queensland Law Society (QLS).
Madgwicks Lawyers
JEJAK GRAPHICS
a lasting impression
P 03 8790 8006 M 0422 267 639 Contact Michelle Quinn E jejak@bigpond.com www.jejakgraphics.com.au CREATIVE DESIGN SOLUTIONS
Level 33 140 William Street Melbourne VIC 3000 P 03 9242 4744 F 03 9242 4777 Contact Ed Browne E franchising@madgwicks.com.au www.madgwicks.com.au Madgwicks’ Franchising team has experience across a variety of franchise industries representing both franchisors and franchisees.
Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 18 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including:
Our Franchise team is made up of lawyers from our Business Services, Litigation and Property areas, enabling the group to address the broad nature of legal needs associated with establishing and operating a franchise system.
• Corporate stationery
Our services include:
• Brochures and flyers • Poster and banner design • Educational manuals • Sports programs • Monthly Newsletters • Product labels and packaging Artwork is tailored to your brand and focused on your message and target audience. No job is too big or small. Contact me today to discuss how Jejak Graphics can make your company or organisation leave ‘a lasting impression’.
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A key part of our service delivery is partner accessibility and in-depth industry knowledge. • Franchise agreements and disclosure documents • Advice on business structures appropriate for franchise systems • Franchising Code of Conduct Compliance
• Trade Practices advice including ACCC notification/authorisations • Acquisition, disposal, joint venture and partnership advice • Supplier and terms of trade agreements • Workplace Relations
• Commercial and retail leasing, as well as general property advice • Tax, duty and GST advice
• Litigation and dispute resolution
• Advice on branding, intellectual property and trade marks.
9
MARSH & MAHER LAWYERS
Wisewould Mahony Lawyers
Wisewould Mahony Lawyers
Lvl 1 / 551 Little Lonsdale Street, Melbourne VIC P 03 9604 9400 F 03 9600 3313 Contact Robert Toth E rxt@marshmaher.com.au www.marshmaher.com.au
Level 8, 419 Collins Street, Melbourne VIC 3000 P 03 9612 7297 F 03 9629 4035 Contact Melissa Strain E melissa.strain@wisemah.com.au www.wisewouldmahony.com.au
Robert Toth has moved!
The new Franchise Code commenced 1 January 2015:
Years of Specialised Franchise Industry Knowledge
• What you need to know? • What you need to do?
Email Robert Toth for a complimentary guide for franchisors to the new Franchise Code.
Robert has over 30 years’ experience and industry knowledge and has published articles on franchising and international franchising in journals and online.
Marsh & Maher Lawyers provides fixed fee services to franchise clients for most aspects of work. Member of the Franchise Council of Australia (FCA) and International Franchise Lawyers Association (IFLA),
MARSH & MAHER PRACTICE IN THE FOLLOWING AREAS: • Commercial and Corporate Law • Corporate Reconstruction and Insolvency • Discrimination, Employment Law and Industrial Relations • Media Law • Litigation and Dispute Resolution • Trade Practices and Competition Law
Member of the Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), Franchise Association of New Zealand (FANZ) & US Commercial Service.
FIXED COST FEES to Franchisors & Franchisees based on scope of works. No hourly rate surprises! Services Provided • • • • • • •
Legal and consulting advice to Franchisors & Franchisees Code compliance requirements Dispute resolution – mediation – strategies & solutions Sale/Purchase of Franchise Systems and businesses Employment Law and Workplace Relations Specialists Master Franchising International Franchising
• Accredited Business Law Specialists
Call or email for a complimentary brochure for Franchisors & Franchisees
1Year of
AUSTRALIA and NEW ZEAL AND
One year (6 issues) of Business Franchise Australia and New Zealand for only $24.95 (AUS) or $32.95 (NZD). Packed with information relating to many different areas of the franchising industry, Business Franchise is a valuable and informative source of guidance. CUT HERE
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Name:__________________________________________________________________________________ Address:________________________________________________________________________________ City:____________________________________________________________________________________ State:________________________________________ Postal Code:_______________________________ Phone Number:___________________________________________________________________________ Email:___________________________________________________________________________________ Credit Card No.__________________________________ CVV ________________ Exp. Date____________ Mail to: CGB Publishing Pty Ltd PO Box 968 Mt Eliza Victoria 3930 Australia Email: cgb@cgbpublishing.com.au 97 Business Franchise Australia and New Zealand
Business Franchise Australia and New Zealand 97
FRANCHISE LISTINGS FRANCHISE
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
AUSTRALIA’S LARGEST INDEPENDENT MOBILE PHONE RETAILER
100
-
Various
Various
ELECTRICAL TEST AND TAG
40
FCA
$35,000
$47,000 + GST + Vehicle
RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES
82
FCA
$49,900 + GST
$250,000 + GST
FITNESS & PERSONAL TRAINING
1
FCA
-
$250,000
BOUTIQUE CARVERY FRANCHISE
36
Franchise Council of Australia
$60,000 + gst Incl. Training
$200,000
FRANCHISED PROPERTY INVESTMENT COMPANY
1
FCA
$60,000 plus GST
$100,000 plus GST
MOBILE COFFEE VANS
Over 200 worldwide
FCA, FANZ, IFA
INITIAL FEE INCLUDED IN PURCHASE PRICE
FROM $129,990
MOBILE DOG WASH
34
Franchise Council of Australia
$20,000
$30,000
PREMIUM CAFÉ FRANCHISE
13
Franchise Council of Australia
$50,000 + GST Incl. Training
Dependent on Site conditions $300k$500K
PIZZA FRANCHISE
611
-
$60,000 + GST
$300,000 $600,000
KITCHEN, BATHROOM & BEDROOM REMODELLING
46+ worldwide
FCA & FANZ
From $40,000
$60,000
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
34
Franchise Council of Australia
$50,000 + GST
$650,000 $950,000
COURIER SERVICE
650+
FCA & FANZ
From $25K+GST
$25K+GST
COURIER SERVICE
250+
FCA & FANZ
$10K
$10K
LEATHER, PLASTIC & VINYL RESTORATION
225
IFA
Please contact
Please contact
24 HOUR FITNESS AND HEALTH
2
-
$149,000
Finance available
HAIR & BEAUTY – RETAIL & SERVICE
140
FCA
$66,000 plus GST
$390,000 incl. stock, for Greenfield sites
COMPETITIVE GLOBAL EXPRESS FREIGHT FRANCHISE
250+ franchises across 15 countries
FCA
$49,000
$49,000
COMMERCIAL CLEANING FRANCHISE
50
FCA
$16,500 + GST
$16,500 + GST
SWIM SCHOOL
4
-
$20,000 + GST
$110,000 + GST
HAIRDRESSING
180 across Australia & New Zealand
FCA
$80K - $200K
$160K-$240K
EYELASH EXTENSIONS, THREADING & MORE
5
NEESA
$25,000
$40,000
807, 1 Queens Rd, Melbourne VIC 3004 Ph: 1800 980 650 Fax: 07 3396 8311 Email: sacha@localappliancerentals.com Website: www.localappliancerentals.com.au
APPLIANCE RENTAL
100+
-
-
$29,000
LUXAFLEX® Window Fashions Gallery
blinds, awnings, shutters, window coverings
75 licensed stores
-
N/A
$150,000
ALLPHONES
Level 7, 3 Rider Blvd, Rhodes NSW, 2138 Ph: 13 8000 Website: www.allphones.com.au
APPLIANCE TAGGING SERVICES
80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
BATTERY WORLD AUSTRALIA
PO Box 46, Brisbane Market, QLD 4106 Ph: 07 3373 1764 Fax: 07 3373 1770 Email: admin@batteryworld.com.au Website: www.batteryworld.com.au/franchising
BODIEZ 24/7 FITNESS
260 Brisbane Street, Ipswich QLD 4305 Ph: 1300 642 575 Fax: 02 9337 1066 Email: info@franchiserecruitmentsolutions.com.au Website: www.bodiez.com.au
BUCKING BULL
5 Henry Street, Loganholme QLD 4129 Ph: 07 3423 0555 Fax: 07 3423 0600 Email: franchise@buckingbull.net Website: www.buckingbull.net
BUY AUSTRALIAN PROPERTIES
Franchise Support Office, 2/492 Christine Ave, Robina QLD 4230 Ph: 1300 99 55 12 Email: franchise@buyaustralianproperties.com.au Website: www.buyaustralianproperties.com.au
CAFE2U
Building 7, 81 Frenchs Forest Road East, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: franchises@cafe2u.com.au Website: www.cafe2u.com
CITY FARMERS DOGWASH
190 Main Street, Osborne Park, WA 6017 Ph: 08 9345 7200 Fax: 08 9440 1065 Email: scott.mcintosh@cityfarmers.com.au Website: www.cityfarmers.com.au/dogwash
CREMA ESPRESSO
16B Harvest Court, Southport QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au
DOMINOS PIZZA ENTERPRISES LTD
Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise
DREAM DOORS
Suite 3, 203-205 Henley Beach Road, Torrensville SA 5031 Ph: 08 8351 8588 Email: cam@dreamdoors.com.au Website: www.dreamdoorskitchens.com.au
FASTA PASTA PTY LTD
Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: reception@fastapasta.com.au Website: www.fastapasta.com.au
FASTWAY COURIERS AUS
Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au
FASTWAY COURIERS NZ
Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz
FIBRENEW
1/47 Sunnyside Rd, Scarborough, Brisbane QLD 4020 Ph: 1300 954 812 Fax: 07 3203 4178 Email: info@fibrenew.com.au Website: www.fibrenew-franchising.com.au
GOLD’S GYM
81 Gozzard St, Gungahlin ACT 2913 Ph: 02 6280 4987 Email: ckyrgios@goldsaustralia.com.au Website: www.goldsaustralia.com.au
HAIRHOUSE WAREHOUSE
Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 03 9234 2200 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hhwhfranchising.com.au
INXPRESS
Unit 1/26 Flinders Parade, North Lakes QLD 4509 Ph: 0418 600 919 Fax: 1300 030 066 Email: sales.au@inxpress.com Website: www.inxpress.com.au
JAN-PRO
Suite 107, 12 Cato St, Hawthorn East VIC 3123; Lvl 6/7, 91 Phillip St, Parramatta NSW 2150; Lvl 22, 69 Ann St, Brisbane QLD 4000 Ph: 1300 JAN PRO Email: info@jan-pro.com.au Website: www.jan-pro.com.au
JUMP! SWIM SCHOOLS
6/52-56 Paradise Avenue, Miami QLD 4558 Ph: 0477 800 181 Email: amy.hempstead@jumpswimschools.com.au Website: www.jumpswimschools.com.au
JUST CUTS™
Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 0439 130 499 Fax: AUS 02 9527 5144 Email: luke@justcuts.com Website: justcuts.com
JUST LASHES
PO Box 592, Warners Bay NSW 2282 Ph: 0414 491 977 Email: franchising@justlashes.com.au Website: www.justlashes.com.au
LOCAL APPLIANCE RENTALS SOUTHERN GROUP
338 Victoria Road, Rydalmere NSW 2116 Ph: 02 9638 8000 Fax: 02 9638 8832 Email: mark.futeran@hunterdouglas.com.au Website: www.luxaflex.com.au
98 Business Franchise Australia and New Zealand
FRANCHISE PRIMAL PANTRY
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.primalpantry.com.au
SCROOZ
5-11 Jardine Drive, Redlands Business Park, Redland Bay QLD 4165 Ph: 07 3829 1993 or 1300 794 499 Fax: 07 3829 1283 Email: franchising@scrooz.com.au Website: www.scrooz.com.au
SEVEN SEAS SEAFOOD CAFÉ
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.aktivbrands.com
SKEWERZ KEBABZ
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: franchise@skewerz.net.au Website: www.skewerz.net.au
SNAP-ON TOOLS (AUSTRALIA & NEW ZEALAND) PTY LTD 80 Holbeche Road, Arndell Park NSW 2148 Ph: 1800 762 766 Email: les.coppin@snapon.com.au Website: www.snapontools.com.au Facebook: https://www.facebook.com/SnaponToolsAustralia
SNOOZE SLEEP WELL PTY LTD
21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: alistairb@snooze.com.au Website: www.snooze.com.au
SPRAY PAVE AUSTRALIA
GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com
TACO BILL MEXICAN RESTAURANTS
375 Clarendon St, South Melbourne VIC 3205 Ph: 03 9690 2077 Fax: 03 9696 0868 Email: amigo@tacobill.com.au Website: www.tacobill.com.au
THEBESTOF
PO Box 951, Flagstaff Hill SA 5159 Ph: 08 8358 6112 Email: emma@thebestof.com.au Website: www.getthebestof.com.au
THE COFFEE EMPORIUM
Level 1, 51 Phillip Street Parramatta NSW 2150 Ph: 02 9635 1222 or John Ayoub 0402 563 626 Email: franchising@thecoffeeemporium.com.au Website: www.thecoffeeemporium.com.au
THE DRUG DETECTION AGENCY PTY LTD
PO Box 301678, Albany, North Shore City 0752 NZ Ph: +64 9 479 4332 Email: glenn.dobson@tdda.com Website: www.tdda.com
THE INTERFACE FINANCIAL GROUP
Level 19, 1 O’Connell St, Sydney, NSW 2000 Ph: 1300 940 908 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au
THE LEATHER DOCTOR
2/52 Export Drive, Molendinar QLD 4214 Ph: 1300 453 284 Email: info@theleatherdoctor.net.au Website: www.myleatherdoctor.com.au
THE TIMBER DOCTOR
2/52 Export Drive, Molendinar QLD 4214 Ph: 1300 453 284 Fax: 07 5563 3477 Email: info@thetimberdoctor.com.au Website: www.thetimberdoctor.com.au
V.I.P. HOME SERVICES AUSTRALIA
Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au
XPRESSO MOBILE CAFÉ
35 Railway Terrace, Milton QLD 4064 Ph: 1300 655 559 Fax: 1300 655 569 Email: jonathan@xpresso.com.au Website: www.xpresso.com.au
YELLOW EXPRESS PTY LTD
57 Victoria Rd, Rozelle NSW 2039 Ph: 1300 935 569 Fax: 02 9810 0111 Email: mail@yellowexpress.com.au Website: www.yellowexpress.com.au
ZARRAFFA’S COFFEE
1/54 Siganto Drive, Helensvale QLD Ph: 07 5500 0800 Fax: 07 5500 0900 Email: franchise@zarraffas.com Website: www.zarraffas.com
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
HEALTHY EATING CAFÉ
3
-
$60,000 + gst
$200,000
FIXINGS AND FASTENER TRADE SALES
1
-
$150,000
$350,000 Incl. stock
MODERN SEAFOOD CAFÉ
2
Franchise Council of Australia
$60,000 + gst
$200,000
MEDITERRANEAN FAST FOOD CONCEPT
11
Franchise Council of Australia
$60,000 + gst
$200,000
MOBILE TOOL AND EQUIPMENT STORE
164
FANZ, FCA
$50,000
-
BEDDING RETAILER
71
Franchise Council of Australia
$50,000
$450,000+
SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE
80
-
$15,000 (Licence Only)
$75 P/W
MEXICAN RESTAURANT, BAR AND TAKEAWAY
35
Restaurant Catering Victoria
$50,000
$450.000
LOCAL MARKETING
250+ in UK & AUS
-
$9,995 + GST
Dependent on territory
EUROPEAN STYLE COFFEE HOUSE/CAFÉ
26
FCA
$50K
$350K
DRUG TESTING & EDUCATIONAL SERVICES
20
FCA (pending)
Circa $150K
+ mobile testing unit
PROVIDES UNIQUE SPOT FACTORING PROGRAMME
150+ worldwide
FCA, IFA, CFA, Irish FA
$24,500
$50,000+
MOBILE LEATHER & VINYL REPAIRS
55
-
Starting from $45,000 + GST
$60,000 + GST
MOBILE TIMBER REPAIRS
6
-
$35,000 (plus GST)
$60,000
DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS
1100
FCA
$16,000 + GST
$25,000
DI BELLA COFFEE MOBILE ESPRESSO VAN
28
FCA
COURIER, DELIVERY, FREIGHT, REMOVALS, RELOCATIONS
-
-
Vehicle only
Less than $50,000
SPECIALTY COFFEE PROVIDER AND FRANCHISOR
62
FCA
$50,000-$75,000 depending on store
$400,000 $600,000
$119,500 + GST $119,500 + GST (incl. (incl. FAST TRACK FAST TRACK program) program)
A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 99
A-Z FRANCHISE DIRECTORY allphones With over 100 locations across Australia Allphones is the largest independent telecommunications retailer consisting of company owned, licensed and franchised stores. Allphones started trading as a single store in Mile End, South Australia in 1989. After moderate growth in the early 90’s the business moved into franchising and the operation grew in South Australia to 15 stores. In 1999 the master franchise
APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. 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.
BATTERY WORLD AUSTRALIA Count the number of households in Australia? (Currently 9,117,033 private households in Australia - 2011 Census Data). Now count how many batteries each household will need over the next year? That’s the potential of a Battery World Franchise. Offering a world of batteries for everyone, the Battery World network is national and sells a range of portable power products and accessories throughout Australia. Battery World Australia Pty Ltd, as franchisor, provides
BODIEZ 24/7 FITNESS Bodiez 24/7 Fitness is all about making health and fitness fun, enjoyable and affordable to all walks of life by delivering a 24/7 concept combined with an exclusive interactive personal training system. Bodiez has a low overhead business structure which enables it to meet the market demand and offer no lock in contracts or hidden extras. Bodiez uses the traditional personal trainer system
BUCKING BULL Bucking Bull is Australia’s largest and most successful carvery franchise with nearly 40 store locations around the country. Australian owned and operated, Bucking Bull first opened in Perth in 1999 and has since expanded throughout Queensland, New South Wales and most recently, Victoria. Bucking Bull has built its success on a very simple recipe- providing great value ‘home cooked’ style food that people love to eat, serving nearly 3 million customers each year. Bucking Bull commands
100 Business Franchise Australia and New Zealand
rights were purchased for Western Australia and the first store in W.A was opened in May 2000. Late in 2000, the rights to the franchise system were purchased. During 2001, the group moved into the eastern states opening the first store in Hurstville, NSW. Since that time the group has continually grown and is now a truly national company, operating in WA, NSW, VIC, SA, QLD and NT. For more information and to register your interest, visit allphones.com.au/franchise or phone 13 8000.
No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au
the marketing and operations support to assist franchisees and strong brand recognition. Battery World is committed to helping franchisees build a successful business supported by experienced support office professionals. 82 stores Australia-wide and growing! After 15 years of operation, Battery World continues to be one of Australia’s most powerful retail battery franchises. For more information about Battery World contact 07 3373 1764 or visit www.batteryworld.com.au/ franchising
just like all other Gyms and fitness centres, however where they stand out from the crowd is in the use of their state of the art technology whereby every client has their own virtual personal trainer that communicates with the Gym equipment meaning they can get personal training at all hours of the day or night. For more information contact James or Nick at Franchise Recruitment Solutions on 1300 642 575.
strong brand awareness, a unique positioning and a proven business model. As part of the Aktiv Brands portfolio, Bucking Bull franchisees benefit from comprehensive training, detailed operational procedures and marketing tools and assistance to assist in reaching their business goals. For more information regarding Bucking Bull franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: franchise@buckingbull.net W: www.buckingbull.net
BUY AUSTRALIAN PROPERTIES Buy Australian Properties is the first professional franchised property investment company in Australia. We are leading the industry with safe, ethical and proven ways of investing in residential property with integrity. We supply quality approved direct property investments in brand new full turn key house and land packages, apartments, townhouses, units and row houses Australia wide.
its kind property investment business in Australia. • great work-life balance • work from your home office • a team of highly motivated and dedicated professionals • excellent company culture • comprehensive initial and ongoing training
We have created a simple yet very effective 4 step client engagement process incorporating proven systems and procedures designed to produce outstanding results and highly satisfied clients every time we use them.
• unlimited growth and earnings potential
Franchisees have the opportunity to operate a very unique, first of
www.buyaustralianproperties.com.au
CAFE2U
The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator.
Cafe2U is Australia’s first and most successful mobile café system. With over 200 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success. This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory. Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo.
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
City Farmers Dogwash Beginning more than 20 years ago as a small enterprise, City Farmers Dogwash is now part of the City Farmers Group. City Farmers comprises 42 specialty large format pet stores throughout Australia with many more planned, a mobile network of over 30 City Farmers Dogwash vans as well as pet insurance business and an online store.
• vendor finance available for foundation members Expression of Interest: info.buyaustralianproperties.com.au
If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny. Contact John Stanton - Sales and Franchising Manager on 1300 Cafe2U (1300 223 328) or email: jstanton@cafe2u.com www.cafe2u.com
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
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. • No experience necessary • Full training & support • Strong brand recognition • Exclusive Marketing Zone • All-inclusive start-up package
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 3.7 million pet dogs in
• Work outdoors & be your own boss
Crema Espresso
of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising.
The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point
AUSTRALIA AND NEW ZEALAND
For more information call Scott McIntosh on 08 9345 7200 or visit www.cityfarmers.com.au/dogwash.
“As coffee lovers we were tired of the same old coffee in dark gloomy cafes. Premium coffee and light meals, like we have in our stores, should be enjoyed in a bright sophisticated café with an atmosphere that creates a laid back, enjoyable meeting place for customers”. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au
Business Franchise Australia and New Zealand 101
A-Z FRANCHISE DIRECTORY DOMINO’S Domino’s Pizza Enterprises is the master franchisor for the Domino’s Pizza brand in Australia, New Zealand, France, Belgium, The Netherlands and Japan. Across these markets, DPE franchisees currently operate over 1300 stores and sell over 90 million pizzas annually. New franchises are supported through every
DREAM DOORS Dream Doors is a kitchen, bathroom and bedroom remodeling business that has a proven track record internationally. Established in 2000 in the UK, Dream Doors takes the hassle, and the cost, out of remodeling outdated home interiors. Now with 50+ locations in the UK, 10 in New Zealand since 2009 and now with 7 locations in Australia, we are looking to expand our network of Franchisees throughout Australia.
FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great
FASTWAY COURIERS AUSTRALIA
step of the process including site selection, lease negotiation, store fit out, comprehensive preopening training, coordination of suppliers, group purchasing power, store appraisals, ongoing training and support, and marketing promotions. Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 888 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise
Dream Doors is looking for people with managerial, organizational/communication skills or real go-getters, no formal kitchen design experience is necessary – as long as you have the drive, ambition and enthusiasm to succeed in business we will supply you with the internationally proven and tested formula of the Dream Doors business model. For more information contact Derek Lilly on: T: 1 800 373263 E: del@dreamdoors.com.au W: www.dreamdoorskitchens.com
opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email reception@fastapasta.com.au, or visit our website, www.fastapasta.com.au
• Low start up costs
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au
• No weekend work
*Conditions apply
FASTWAY COURIERS New Zealand
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change we’d love to hear from you. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz
Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy • Guaranteed income package*
Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income packages* • Low start up costs • No weekend work
102 Business Franchise Australia and New Zealand
*Conditions apply
FIBRENEW Since 1987, Fibrenew has grown to 225 locations around the world. Now, we are growing in Australia. Fibrenew is the industry leader in the restoration of leather, plastic and vinyl. We are a mobile service that caters to the aviation, automobile, commercial, insurance, marine, medical and residential markets. With the diversity of all these opportunities across so
Gold’s Gym The substantial difference at Gold’s Gym is the blend of industry leading quality, value and sustainability. The business model we offer provides a structured, calculated and tested blueprint to success. All components will be provided to achieve a harmonic balance between work and living, all the while feeding your passion for the industry. Franchise owners have the ability to leverage off the most recognised and reputable names in the industry, at an affordable price. Sustainability and perseverance are proven through
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
many markets, our company and franchisees have grown and thrived through every rise and fall of the economy. That really speaks to the fact that there is always a need for our services. Right now, there are franchise territories available throughout Australia. This is your chance at an exceptional business opportunity with potential for great income. To find out more about joining our franchise team, visit: www.fibrenew-franchising.com.au
the history of the brand over the years all the while the Gold’s Australia support team will be behind you every step of the journey, enriching your business venture with knowledge and experience. Gold’s offers you the opportunity to feed your passion, join a team of passionate entrepreneurs, all the while creating wealth and success. Become a part of fitness prestige, take your piece of Gold. Contact Scotty (0400 500 755) or Christos (0422 500 002) to commence the application process. http://www.goldsaustralia.com.au https://www.facebook.com/goldsgymaustralia
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
HAIRHOUSE WAREHOUSE
Hairhouse Warehouse has become a household
Hairhouse Warehouse, Australia’s leading hair & beauty brand, has huge plans for the next few years to expand with 20 new stores planned to be opened around the country.
name in Australia, with a proven business model
We are looking for passionate people who want to own their own business, work for themselves and take control of their own destiny.
InXpress – Global Express Freight InXpress provides a revolutionary yet simple concept delivering customers with freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing customers with greater value and personalised service, saving valuable time and money. Operating in 15 countries with over 250 franchisees internationally, InXpress is now accepting applications to grow the Australian business.
AUSTRALIA AND NEW ZEALAND
that continues to evolve and generate strong returns for franchisees. For more information call 03 9234 2200, email franchising@hairhousewarehouse.com.au or visit www.hhwhfranchising.com.au.
Benefits to franchisees include: • Low entry costs • Low risk • No inventory/warehousing • Minimal employee base • High income potential • Ongoing training and support Whatever your location InXpress represents a unique opportunity for you to build financial freedom, within a global network. Start building your future with the right company and the right model, for more information about becoming an InXpress franchisee within your region call 0418 600 919, email sales.au@inxpress.com, www.inxpress.com.au
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A-Z FRANCHISE DIRECTORY Jan-pro cleaning systems Welcome to JAN-PRO and the lucrative world of franchise commercial cleaning. Join a network of over 12,000 franchisees worldwide who have taken a step towards a brighter, more successful future with JAN-PRO Cleaning Systems. Commercial Cleaning is a rapidly expanding industry, proving its economic resistance by positively growing during the economic turmoil of 2009-2011. Incorporated in 1991, JAN-PRO has been the fastest growing franchise system in the world,
Jump! Swim schools
doubling in size from 2006-2011. Learn and benefit from our stringent 5 week training program, our processes and our unique written quality guarantee. Invest and grow at a pace that suits you and your individual goals, JAN-PRO will support your business growth building a secure, financial future for you. Start your JAN-PRO future today by calling 1300 JANPRO or 03 9077 0075 or email Riaz at riaz.rafiq@jan-pro.com www.jan-pro.com.au
JUMP! Swim Schools is leading the way in bringing fun, private facilities for our little swimmers to learn the basics away from the busy aquatic centres If you are looking for a flexible lifestyle franchise, in a secure and established industry, with huge market opportunities then this is the franchise for you. Absolutely no experience necessary, and no need to be in the water! Great locations are still available, no experience necessary and a comprehensive training program provided.
Due to the bookings in advance system, the business is easy to manage as well as consistent ongoing support with our proven management systems. To find out more information on a JUMP! Swim Schools Franchise contact Amy Hempstead on: Phone: 0477 800 181 Email: amy.hempstead@jumpswimschools.com.au www.jumpswimschools.com.au www.jumpfranchising.com.au
JUST CUTS™
to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ cuts a week!
Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you. At Just Cut Cuts™ Franchise Owners have been free
Just Lashes The leaders and only Franchise in Eyelash Extensions in Australia. Clients making an appointment at a Just Lashes lounge expect consistent, professional service and rely on our reputation for delivering the most beautiful results. We help you become an administrator of this truly profitable business ethic! It’s not just the superior workmanship that Just Lashes has mastered, but our exclusive premium products that are manufactured just for us.
Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price. Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere. Contact: Luke Manning 0439 130 499 or luke@justcuts.com Website: www.justcuts.com
turnkey system, you don’t need any formal business experience as our Business Coach will guide you, or prior education in Beauty Therapy as our Lash Expert will train you the right way. We provide everything you’ll need to run this highly flexible, uncomplicated enterprise. Rely on the ongoing professional support supplied by the Just Lashes network and experience the benefits of a rewarding working lifestyle! e: franchising@justlashes.com.au m: 0414 491977
With the support and encouragement of the Just Lashes
w: justlashes.com.au
local appliance rentals
outdoor furniture, fitness equipment and kids’ play equipment, Local Appliance Rentals helps their customers get what they want.
Local Appliance Rentals are the largest rentals franchise in Australia today. Since franchising five years ago, there are now more than 100 franchisees in Australia, New Zealand and the United Kingdom. With a wide range of products including TVs, computers, game consoles, home entertainment systems, stereos, coffee tables, dining tables, fridges, freezers, microwaves, washers, dryers, air conditioners, beds, baby furniture, BBQs,
104 Business Franchise Australia and New Zealand
As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance. The only requirement is a basic home office and funds available to purchase the rental goods on behalf of the customers. Don’t miss out on your opportunity to join the largest rental franchise company in Australia, visit www.localappliancerentals.com.au/franchising
luxaflex® Window fashions Join the Luxaflex Dealer Network There are over eight million households in Australia – think about how many window furnishings that amounts to! The LUXAFLEX® Window Fashions brand is one of the most widely known and respected window furnishing brands in Australia, having sold its products under the Hunter Douglas Group in Australia for over sixty years – and is currently recruiting entrepreneurs looking for a new venture! Hunter Douglas offers an unrivalled partnership to meet
PRIMAL PANTRY Primal Pantry is a new healthy eating café concept based on the Paleo lifestyle and way of eating. Since opening the pilot store in Brisbane in 2013, Primal Pantry has become a phenomenon, gathering a loyal and passionate fan following. Ranked in Brisbane’s Top Ten Favorite Restaurants, Primal Pantry is fast becoming the undisputed leader in Paleo fare in the marketplace. Following increasing demand for additional outlets, Primal Pantry have thrown open their doors with
scrooz We’re Australia’s biggest online and multi-channel retailer of premium range fasteners, fixings and consumables for tradesmen, light industry and serious DIY’ers and we’re revolutionising fastener retail. We’re growing rapidly and to meet the high customer demand for our products we’re starting the launch and roll-out our network of Scrooz® Trade Centres across Australia right now. Want to earn some real money and get involved in
SEVEN SEAS SEAFOOD CAFE Seven Seas Seafood Café is a re-invigoration of the classic Aussie Takeaway Shop with a whole lot more style, sophistication and value. Seven Seas offers a casual dining experience that meets the continually shifting tastes and rising expectations of today’s consumers, serving a refreshing and modern selection of seafood with a contemporary flair. Seven Seas is 100% Australian owned and
SKEWERZ KABABZ Skewerz Kebabz is an exciting and innovative retail fast food concept offering authentic Mediterranean cuisine combined with fresh and exciting flavour profiles for the Australian market. Spicing up food courts in shopping centres around Australia, Skewerz is becoming the nation’s fastest growing kebab franchise. Providing an exciting alternative to the traditional kebab, Skewerz serves up a truly satisfying menu supported by a friendly and fun casual dining environment. The unique menu caters for all three primary trading periods and has
specific commercial needs, under our LUXAFLEX® Window Fashions Gallery and LUXAFLEX® Window Fashions Showcase Alliance programs. This includes marketing support, manufacture and production of all products and fabrics, as well as local on the ground sales support. No experience is required to enter the Programs as all training is provided, which focuses on enhancing the customer experience and increasing your profitability. For more information on our programs, contact National Sales Manager, Mark Futeran on 02 9638 8000 or mark. futeran@hunterdouglas.com.au.
the brand’s first franchised stores opening in 2014. Backed by the award-winning Aktiv Brands franchise system, all aspects of the Primal Pantry business and operation are supported by the category leading marketing, training and operational systems that Aktiv Brands provides. If you are genuinely passionate about the positive difference that clean-eating can make, then please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.primalpantry.com.au
• A $650 billion dollar industry • With highly profitable repeat sales of consumables to the trades and DIY industries • Retailing our premium quality Scrooz® branded product range • With National and webstore driven multi-channel sales • Full training and on-going support provided • Outstanding opportunities for early take up We have limited opportunities for highly motivated people looking for a serious business, so to find out more contact us now for an information pack at franchising@scrooz.com.au
scrooz f a s t e n e r s
operated and benefits from the award winning franchise support at Aktiv Brands. As a Seven Seas franchisee, you can enjoy the advantages of being associated with a well-known and successful franchise group, supplying you with the tools to help your business grow and prosper. For more information about Seven Seas franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.aktivbrands.com
been strategically designed to ensure the concept will thrive in the competitive food court environment. Skewerz Kebabz is part of the Aktiv Brands group of franchise brands, which means that the model has been developed based on years of experience in the retail fast food franchising sector. For more information regarding Skewerz Kebabz franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.skewerz.net
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A-Z FRANCHISE DIRECTORY SNAP-ON TOOLS
clearly surveyed and designated territories, with a rigorous training program and comprehensive support.
Snap-on Tools is a mobile franchise putting high quality tools into the hands of mechanics, engineers and technicians across Australia for over 25 years.
Nominated as a BRW Fast Franchise in 2013, Snap-on Tools a quiet achiever. Today it is one of the largest non-food franchise companies in the world, selling its products and services through franchisee, company-direct, distributor and Internet channels.
Snap-on provides technicians with a high quality range of products and services that make their working life more productive. Over 19,000 state-of-the-art products are offered to customers, including hand and power tools, tool storage, diagnostics tooling and software, information and management systems, shop equipment and other solutions for workshops and repair centres. Snap-on Tools provides high-demand products through its instantly recognisable fleet of more than 160 trucks – a mobile store selling direct to the workplace. Franchisees work within
Take a trial today: http://www.snapontools.com.au/franchise/ discovery_tour Or visit snapontools.com.au and join in the conversation online facebook.com/SnaponToolsAustralia
SNOOZE™
• NAB & ANZ accreditation
As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none.
• Sales and product training
With over 70 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment.
• Business management support • A national marketing program • IT services
Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including:
To take the first step towards a prosperous future, contact Snooze Franchise Network Development Manager, Alistair Browne, to find out what Snooze could mean for you.
• Vendor finance assistance
Email: alistairb@snooze.com.au
SPRAY PAVE AUSTRALIA Pty Ltd
• Learn a range of new lifelong trades.
Earn up to $3,300 per week. That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!
Taco Bill Taco Bill is the longest established Mexican family restaurant in Australia and has built a loyal following since its inception in 1967. Taco Bill’s Mexican food is fun, fresh and affordable and presented in a casual, relaxed environment. The menu consists of a variety of fresh, authentic Mexican cuisine cooked daily on site, including Taco Bill’s special salsas, quesadillas, fajitas, rice and frijoles, enchiladas, burritos, nachos and tacos. Thirty brands of tequila are on offer at the various
business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND
If you are interested in considering whether this business is right for you, we make it easy. We’ve created a Discovery Tour, which steps you through the process of owning and operating a Snap-on franchise.
A-Z Listings re a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
106 Business Franchise Australia and New Zealand
• Guaranteed work available anytime after training. • Head office training plus follow-up on your own job. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • From $7,000 deposit + Support Payment Plan. Established in 1991, Security with Australia’s largest and oldest network. The name of the industry. Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com
restaurants as well as Australia’s largest Margarita – Pancho Villa (fishbowl) - giving the restaurant even more flavour and authenticity! With 35 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas. If you’re interested in becoming part of the Taco Bill family call 9690 2077 or email amigo@tacobill.com.au
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
THE COFFEE EMPORIUM The Coffee Emporium has been Perfecting Coffee since 1991. As a business partner of The Coffee Emporium you get the opportunity to become part of a brand that boasts an outstanding reputation for excellent coffee and customer service. The Coffee Emporium seeks and encourages partnerships with like-minded people that take pride in consistently
delivering a high quality product to the best possible standard. If you’re looking to own your own business in a growth market then partnering with The Coffee Emporium is a smart choice! Contact us today at: franchising@thecoffeeemporium.com.au or visit www.thecoffeeemporium.com.au/franchising
The Drug Detection Agency (TDDA)
training program; Australasia wide business networks; State Office support and large-scale clients that need services in your area.
The Drug Detection Agency (TDDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New Zealand, with a fast growing list of major corporate clients.
TDDA wants highly motivated and business oriented individuals to join the team to share in the success of this proven business model.
With workplace drug screening becoming a necessity for most businesses for safety, legal and productivity reasons, the opportunities are endless to win contracts with Local, State and National businesses.
If you are seeking a next generation business opportunity with huge potential then contact us now to find out more. Phone: +61 439 222 422 (AUS) / +64 21 917 148 (NZ) Contact: Glenn Dobson Email: glenn.dobson@tdda.com
You will also benefit from a comprehensive 100 day
Website: www.tdda.com
THE INTERFACE FINANCIAL GROUP - IFG 50/50
small business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom, the United States, Mexico and South Africa. The new IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return. For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au
The Interface Financial Group franchisees provide shortterm working capital for small businesses by purchasing their invoices at a discount. In the current economic climate small businesses need working capital but banks are unwilling or unable to provide it. Many of these small businesses are turning to Interface for a solution. Interface has been in the ‘invoice discounting’ business since 1972, is the leading alternative funding source for
THE LEATHER DOCTOR Decades of dedication and service have made the Leather & Vinyl Doctor what we are today; Reliable, Reputable and Really good at what we do. We offer: • Repairs to leather and vinyl goods and objects of all descriptions • Re-Colouring of leather and vinyl goods to restore
THE tiMBER DOCTOR The Timber Doctor is the latest franchise brand recently launched by Mobile Services International, who developed the successful Leather Doctor franchise. This mobile service business provides repairs to indoor and outdoor timber furniture, floors and trims. With franchisees already in Brisbane,
them to original or add a fresh new look • Leather cleaning and conditioning service • Sales of quality cleaning products Our success has come from providing professional systems and a ‘white-collar’ Service. For more information on becoming a Franchisee contact 1300 453 284
Sydney, Melbourne and Perth after only six months, you will hit the ground running. The magical onsite repair process would suit those who have some artistic flair and enjoy working with their hands. For more information call Dean Reid on 0438 844 238, or email: info@thetimberdoctor.com.au or visit us at www.thetimberdoctor.com.au.
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A-Z FRANCHISE DIRECTORY THEBESTOF An award-winning franchise, thebestof is an amazing opportunity for the entrepreneurial spirit! Our thebestof franchisees are part of their community and work to connect local people and the business organisations that serve them. Our franchisees identify the best businesses in their local area and then use a suite of marketing tools, unique to Thebestof, and work with the business owners to showcase and promote them. Core income for our franchisees is from the monthly membership payments made to them by local businesses, and, because of the multi-faceted approach, there are additional revenue opportunities.
Why thebestof? • Huge Demand • Low Maintenance • No Stock • No Employees • Residual Income • Respectability • Low-cost • Little Financial Risk Involved • Rapid Payback • Flat Monthly Service Fee Think you have what it takes to become a thebestof franchisee? Call Emma on 08 8358 6112 and we can start you on the road to realising your franchising dream. www.getthebestof.com.au
V.I.P. Home Services australia
In 2009 and 2010 V.I.P. Home Services was ranked number one Best Value Franchise under $50,000 by Financial Review Smart Investor.
V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand. V.I.P. is a professional Home Services franchise with opportunities available in Home Cleaning, Commercial Cleaning, Carpet Cleaning, Window Cleaning and Lawns and Garden Maintenance.
V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work.
XPRESSO MOBILE CAFE
grind beans from a dedicated bean display cabinet and then weigh, heat seal the bag and retail with Eftpos. We also stock Di Bella Coffee specialty capsules that fit the ‘Nespresso’ pod machine. Both of these services are unique to Australia.
Xpresso Mobile Cafes operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts. We supply premium Di Bella Coffee products – both hot and cold. Frappes, energy drinks, bottles of water and light food options such as gourmet cookies that are designed to complement the enjoyment of an awesome espresso coffee. Xpresso Mobile Cafés also have the ability to custom
yellow express Established in 1926, Yellow Express has a proud history servicing the transport needs of a growing nation. We need dedicated people to assist in expanding our delivery fleet. We are looking for customer service focused individuals to become DSOs (Delivery Service Operators) with Yellow Express. Yellow Express provide the call centre and support to handle all phone calls, enquiries, bookings, customer invoicing, weekly payments and IT development. Yellow Express advertises for delivery
ZARRAFFA’S COFFEE Award winning Zarraffa’s Coffee is a specialty coffee company that roasts and delivers the freshest coffee to its 62 stores across south east Queensland, northern New South Wales and Western Australia. The business is founded on the mantra ‘to create an individually perfect cup of coffee – every time!’ and, just like the giraffe on the logo, aspires to be ‘head and shoulders above the rest.’ Great service is the practice and fresh, quality
108 Business Franchise Australia and New Zealand
For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au
Franchisees are supported nationally by Di Bella Coffee, a fully integrated website, social media and Internet presence as well as the Xpresso Mobile Café call centre. We’re setting the benchmark for coffee vans – will you join us? Contact Jonathan Payne at jonathan@xpresso. com.au to register your interest today.
and relocation work in the commercial and retail market. You as a DSO simply complete the allocated work, so you focus solely on your main role. DSOs also have a commission structure on top of their income for new account customers they bring to Yellow Express. There are no franchise fees or buy ins with becoming a DSO, you only need purchase the vehicle in which you operate, which you retain ownership of. For more information call 1300 935569, email mail@yellowexpress.com.au or visit www.yellowexpress.com.au.
coffee the business. Since the opening of the first store in 1996, the Zarraffa’s Coffee experience has become something of an icon to many Queenslanders and since late 2012 has served coffee drinkers in Western Australia. The business has maintained a steady pattern of growth, as is evident both in gross turnover figures and a consistent increase in profile. Applications are open now for various locations in South East QLD, NSW and WA. Visit www.zarraffas.com to register your interest.
JOIN THE
DREAM TEAM
Vendor finance now available* *Available to approved applicants.
We are looking for dynamic people who love dealing with others and are passionate about retailing. The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system. We provide franchise partners with a stable platform to start their business and offer support across the entire business including: Marketing and Promotional Support Product Development and Buying Power Proven operating system that includes comprehensive product and sales training Business Management support from our on the ground field team Assistance in site selection and property negotiations Business finance available to approved applicants
For more details visit snooze.com.au or call Alistair Browne, our Franchise Network Development Manager on 0427 401 169
It’s amazing what a little snooze can do. snooze.com.au
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