Franchising Magazine Nov-Dec 2012 by Octomedia Pty Ltd

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THE FREEDOM FACTOR

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INVESTING IN A LICENSED BUSINESS

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FRANCHISING

Your essential guide to buying a franchise Nov/Dec 2012 VOL.25/No.6

WORKIN WORKING CAPITAL

WORKING CAPITAL

NOV/DEC 2012

What you need to know

Freeze factor THE BUSINESS OF ICE CREAM

State of the industry: FRANCHISING SURVEYS

Take the plunge Pool and spa opportunities

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Healthy Habits

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The boss and the rebrand

BE INSPIRED: MCDONALD’S, JIM’S, PRICELINE, AGL, BAKERS DELIGHT

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Contents NOV–DEC 2012 |YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE 68

Take the plunge Running a pool and spa business

The freedom factor Why licensing could be an option for you

Issues

Inspire 16

16 REGULARS 5 6 10 126 129 131 132 134 150

Editorial News Interview Legal Sketch People Glossary Checklist Company listings

A seachange turned gold mine McDonald’s franchisee

Lenard’s new look Refreshing the brand

A fencing first A Jim’s franchisee makes her mark

Back to business Franchisee Q & A

Badge of distinction Priceline in Penrith

Baker’s dozen Roger Gillespie’s tips

Energising the model Big changes at AGL

Opportunities 40

The inside scoop Ice cream and desserts

Hearts and minds Passion in the beauty sector

Making the numbers work for you Financial services franchises

Unlock the potential of real estate Domini Stuart reports WWW.FRANCHISE.NET.AU

The state of the industry Franchising surveys

It takes all sorts Franchisees are not all cut from one mould

Intelligent connections The annual franchise convention

100 Winners and grinners The FCA Excellence in Franchising awards

How to... 104 10 best questions What you must ask before you buy 108 How to pick the right brand Check the franchise marketing strategy 114 Brain gain Three training case studies 120 What you need to know about working capital Why you need it and how to manage it

100

NOV/DEC 2012 FRANCHISING | 3

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Welcome

Franchising Publisher Martin Sinclair martin.sinclair@reedbusiness.com.au Editor Sarah Stowe sarah.stowe@reedbusiness.com.au Direct: 02 9422 8900 Journalist Danielle Bowling danielle.bowling@reedbusiness.com.au Direct: 02 9422 2667

Challenges and champions

Sub Editor Richie Kenzie richie.kenzie@reedbusiness.com.au Direct: 02 9422 8851 National Sales and Marketing Manager David Strong david.strong@reedbusiness.com.au Direct: 02 9422 2905 Contributing Journalist Domini Stuart Columnists Greg Nathan Andrew Terry Esther Gutnick Production Co-ordinator Laura Panameno laura.panameno@reedbusiness.com.au Direct: 02 9422 8772 Creative Art Director Julie Coughlan julie.coughlan@reedbusiness.com.au Designer Louis Santos louis.santos@reedbusiness.com.au Managing Director Jeremy Knibbs jeremy.knibbs@reedbusiness.com.au Editorial Inquiries Tel: 02 9422 8900 Advertising Inquiries Tel: 02 9422 2905 Fax: 02 9422 2722 Subscription Inquiries Tel: 1300 360 126 Fax: 02 9422 2633 Franchising is a publication of Reed Business Information ABN 132 719 861

SYDNEY OFFICE Tower 2, 475 Victoria Ave Chatswood NSW 2067 Tel: (+612) 9422 2999 Fax: (+612) 9422 2722 www.reedbusiness.com.au

SARAH STOWE Editor

omehow it’s October, Christmas decorations are in-store and everyone’s talking about their summer holiday plans. Another year has almost passed us by, and it’s time for the latest sector updates: the biannual Franchising Australia survey and the PWC Industry Sector reports have been released. And despite the challenging economic times, particularly for the retail side of business, the franchising industry has emerged, if not unscathed, then certainly stronger for its battles and focused on a future of growth. Yet there is plenty that is new and fresh in the sector that we’re profiling, from the unveiling of the exciting rebrand undertaken at Healthy Habits to the restructure of the franchise model at energy business AGL. There are franchisees and franchisors whose high level of performance has netted them not just financial gain but the accolades of their peers in the FCA Excellence in Franchising awards (see page 100). One of the keys to continued success is facing up to the challenges of an ever-changing marketplace, and it is heartening to read tales of business owners making the move to embrace the new consumer demands. You can read how Theo Theodorou did just that with his Priceline franchise, on page 30, and how moving across the country to take up a McDonald’s franchise has proved a gold mine for Grant Smith (page 16). In this issue we also take a look at opportunities in financial services, real estate, the pool and spa sector, beauty salons, and a choice of licensed businesses. And if you thought ice-cream was just a summer business then think again. Danielle Bowling has found out how dessert franchises are cooking up a year-round customer base. When it comes to committing to a business, there are some essential questions to ask and we highlight the ACCC’s top 10 on page 104, and consider which questions will best help you understand the marketing and branding strategy (see page 108). This month we have a bumper pack of franchising information for you: our regular magazine plus a bonus publication - our annual Yearbook & Directory, jammed full of the best and most useful features from the year, alongside a comprehensive, easy to use guide to Australia’s franchised companies. It could be your best Christmas present to yourself...

The franchising industry has emerged ... stronger for its battles and focused on a future of growth

In festive spirit Average Net Distribution Period ending Mar ’12 6,841

All Franchising material is copyright. Reproduction in whole or in part is not allowed without written permission from the Editor. © 2011. Opinions expressed in Franchising are not necessarily those of Franchising or Reed Business Information.

Sarah Stowe Editor

This year we are thrilled to be celebrating the 25th anniversary of Franchising magazine.

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NOV/DEC 2012 FRANCHISING | 5

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

GroutPro gets a fresh start a long and prosperous future The new owners of the for GroutPro and a period of GroutPro Australia business strong growth.” have signed contracts with The New Zealand based 10 existing franchisees after tile and grout restoration taking over the business in company entered the June 2012. Australian market in 2010 Wayne Burns and Geoff and has since experienced Biddle bought the rights rapid growth. But the to operate the Australian business had been put into business and brought with voluntary liquidation earlier them years of experience in this year by the franchisor business management, retail following an internal legal tile and floor covering, as challenge. well as technical services. Some of the 22 franchisees Geoff Biddle explained left the business before “We’ve just recently finalised Burns and Biddle bought the purchase of the business the Australian rights, and with former franchisees out of the 16 remaining, 10 re-signing in the knowledge franchisees have re-signed. they will now have excellent There are now 14 territories support, stability and the A D _ F R F U R MA Y _ 1 2 . p d f Pa ge 4 1 9 / 0 4 operating. confidence to build their own Biddle said “We’ve businesses. We all anticipate

absorbed legal costs for the franchisees on signing up to a new agreement to make it as painless as possible.” A more user-friendly franchise agreement has also been introduced, he said. Biddle told Franchising, “My business partner who is now part owner was E x p E formerly a franchisee of GroutPro so he has seen the business intimately from

“ /

inside and out. We both saw the potential of the business due to its significant success in New Zealand, where they recruited around 40 franchisees in three years. “The system is a multiaward winning franchise in NZ for good reason and has systemised a unique set t F r a n c h of services combined with the best professional grade products on the market.”

i s E L a w

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NEWS BRIEFS

RFG offers financial package to aid recruitment The retail food brand manager and franchisor Retail Food Group has unveiled an assistance package for potential franchisees to help them invest in a business. This includes providing financial assistance and fee discounts to approved applicants. ASX-listed RFG is the franchisor of Donut King, Michel’s Patisserie, Pizza Capers Gourmet Kitchen, bb’s café, Brumby’s Bakery and Esquires Coffee Houses which together total more than 1,250 outlets across seven countries. The Gold Coast based franchisor indicates the initiative is in response to a 64 percent inquiry spike nationally in the period between June and August. RFG head of emerging markets Gavin Nixon said inquiries from former Queensland public servants have been growing in recent months, with a spike following the announcement of QLD government redundancies. “Understandably, there are many people exploring their options and looking to take control of their own destiny by starting their own business. At the same time, starting out by yourself can be daunting, which is why proven franchise systems are appealing,” Nixon said. “As a strong Queensland-based business, RFG can offer franchisees a new career, supported by a public company operating six strong retail food brands with over 20 years

Anytime Fitness is celebrating the fourth anniversary of its Australian launch and the 200th club opening Sydney-based franchise Lifetime Distributors is defying the book publishing slump with the opening of a new $2m warehouse in Brisbane Coffee franchise Bean Bar has been sold to a separate company controlled by franchisor Ronald Basset, one day before the Federal Court ordered liquidation of the parent business Basset Holdings US consultancy Edwards Global Services has teamed up with The Franchise Shop in a search for master franchisees, kicking off a number of brands’ expansion into Australia Beaumont Tiles plans to strengthen its market position with the appointment of a chief operations officer who will oversee store expansion, increased efficiency and new product offers

experience in the industry.” Nixon added that RFG has developed relationships with Australia’s leading financial institutions. “If finance is required, our potential franchisees can take advantage of these relationships and are able to apply for financial assistance not normally available to small business investors,” Nixon said. RFG also released an update in regards to its aquisition of the popular Crust Gourmet Pizza franchise, announced in August this year. Following due diligence the terms of purchase have been revised so that the fixed consideration

25%

is now $41m and subject to performance within the 24 months following completion, the vendors are entitled to a maximum of $4m in additional payments. Crust CEO Michael Logos will be RFG’s QSR divisional director with responsibility for both Crust and Pizza Capers systems. RFG Tony Alford said “the company’s due diligence inquiries have not only provided further comfort regarding future Crust contribution to RFG earnings, they have validated our initial interest and motivation for the transaction itself.”

of Accor hotels are franchised, and this percentage is expected to increase

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Franchisees’ revenue has grown by six percent in the last 12 months, and will continue to grow, according to PwC’s Franchise Sector Indicator Just Better Care has relaunched its brand to make the most of reforms to the disability and aged care sectors and to reflect the growing trend for online communication The first Bucking Bull store to be integrated into a supermarket model has opened in Goodna, west of Brisbane, outside the IGA Outback Jacks Bar and Grill, the casual dining franchise chain, has appointed two business partners as the master franchisee for NSW and ACT Aussie food franchise Pie Face is targeting the New Zealand market with plans to open more than 60 outlets over the next 10 years

NOV/DEC 2012 FRANCHISING | 7

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IGA launches ad campaign to highlight growth The independent supermarket chain IGA is poised to launch a major marketing and branding campaign to convert consumers to its brands. The $3.5 million campaign across TV, outdoor and digital platforms will specifically promote SUPA IGA’s expanded number of large format stores – 42 of which are new or proposed – across the state. IGA is currently expanding its branded stores in NSW from 272 to 346 supermarkets following acquisition of the Franklins supermarket. Silvestro Morabito,

chief operating officer of IGA’s supplier Metcash Food & Grocery, said “We have reached the point of conversions from Franklins when we can now go to consumers with a strong and unified brand message.

“The SUPA IGA brand positioning builds on the positive brand image of IGA, but on a larger scale with very competitive pricing and ranging against the national chains.” The 198 IGA format

stores across NSW – with 32 new and proposed outlets following the Franklins integration – will also promote their great value, service and range as a separate channel to the SUPA IGA brand. Morabito said “The campaign is effectively communicating that the expanded SUPA IGA network, following the Franklins integration, is everything consumers like about their smaller format and convenient local store, but on a larger scale with very competitive prices.”

Strong growth plans for Discount Drug Stores Discount Drug Stores is set for further expansion across Australia as it celebrates the opening of its 100th store. Just six years after it first began franchising in Queensland, the Australian pharmacy chain Discount Drug Stores opened its 100th store in Hillsdale, NSW in October, with the chemist group set to use the milestone as a platform to cement an even stronger presence across the state Planning to reach 200 stores nationally by 2017, Discount Drug Stores is targeting NSW to take the bulk of this growth. General manager of the pharmacy franchise, Douglas KuskopfDallas, said the state’s large population of active consumers gives the group the most potential for expansion. “Our current NSW stores are very strong performers and record some of our highest turnovers,” he said. “It therefore made the most business sense to focus on maximising this success as we continue to expand across Australia.” Discount Drug Stores now has 20 stores in NSW, making the state its second most prosperous region behind Queensland where it has established 8| FRANCHISING NOV/DEC 2012

over 60 stores since the company was founded in 2001. “We have experienced significant success in Queensland and are proud to have built a strong presence in nearly every regional and metropolitan town,” said Kuskopf-Dallas. “This is what we now want to replicate in NSW and eventually in every Australian state and territory.” The 100th outlet in the chain, the Hillsdale located Southpoint Discount Drug Store, has been purchased by well-known pharmacists and owners of The Douglas Pharmacy Group, Steve Thompson and John Douglas. The pair own more than 40 pharmacies across Canberra, NSW and Queensland, three of which are with Discount Drug Stores. Discount Drug Stores has taken a different route to its discount pharmacy competitors by providing customers with a comprehensive range of health testing services and educational programs for illnesses such as heart disease, type 2 diabetes and asthma. “What separates us from other discount pharmacies and more importantly from grocery chains that are now encroaching on our market is WWW.FRANCHISE.NET.AU

that we provide quality service,” adds Kuskopf-Dallas. “Customers don’t just come to us for cheaper prescriptions; they come to our stores to gain professional healthcare advice.” Co-founder John Clark is proud of how far the brand has come in such a short space of time; it’s on track to turn over $350 million this year. But he believes the company is only just getting started. “We have achieved a considerable amount since 2001 and learnt even more,” he said, “but I never want to become complacent or too comfortable with our success. To me, it’s important to always be moving forwards and evolving and that’s exactly what we plan to now do in NSW.”

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Inspire|Interview

GETTING INTO A

NEW HABIT Sandwich chain Healthy Habits has a brand new look. Sarah Stowe spoke to managing director Merrill Pereyra to find out more

10| FRANCHISING NOV/DEC 2012

errill Pereyra has set himself the task of redefining the franchised chain of sandwich bars, Healthy Habits. The business was established 16 years ago by Victorian-based Katherine Sampson but since 2009 it has been owned by the Dymocks Group. Pereyra has been managing director for a year, and in that time has set in motion a fundamental re-brand and menu overhaul that he believes pares it back to its core values, serving healthy, affordable and fresh takeaway food. While he is new to the sandwich market Pereyra comes with good fast food credentials: he has spent much of his career developing overseas sites for McDonald’s. Franchising first chatted to Pereyra a year ago, when he took on the mantle of managing WWW.FRANCHISE.NET.AU

director, and we got a taste of how big the changes might be. Six months later and we had a sneak preview of the brand’s earthy new look – a far cry from the bright, cheerful branding that Sampson built her business on. Now Pereyra is ready to launch the rebranded business with a new store in Melbourne and has 10 existing franchisees keen to adopt the new livery. “These are exciting and challenging times,” Pereyra says. “Our website has launched and we’re now testing products. The perfect scenario would be to take the menu and test it in three or four stores but we don’t have that luxury. I have people helping me review the current results and what will work better with the Healthy Habits business. “McDonald’s has 10 stores to do something like this, but three months into the

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Interview | Inspire

launch and we’ll review it. The board is confident of the potential in the market.” Fundamental to the brand’s success is meeting the growing consumer demand for healthy meals, and to ensure the menu fits the bill not just in appearance but nutritionally. Seventy percent of customers want healthy but tasty food, Pereyra says. “I hired a nutritionist early on to review the menus, pick out which were too high in sodium for instance, and that really helped us.”

option. Most meals come under 2000 kilojoules. Rather than offering fried chicken as a sandwich or filling, the chicken will be baked. Adopting alternative cooking methods produces efficiencies and maintains the nutritional aspects of the food – high-pressure processing, power vacuum-sealing under very low temperatures for

I hired a nutritionist early on to review the menus, pick out which were too high in sodium for instance, and that really helped us

So what’s on the menu?

Pereyra has been schooled in instance, and there’s no need for the famous three-legged stool extraction systems in-store. principle beloved of McDonald’s – And Pereyra is banking on an franchisor, franchisee and supplier Australian twist to the menu to Franchisees believe more on the must all be profitable from attract customers; spiced up dishes menu equates to more sales, says the relationship. Major supply are inspired by the natural flora of Pereyra, but he believes less is contracts have been maintained, Australia, such as lemon myrtle more. The offer has been fineand the supply chain is now and pepperberry. “Hopefully the tuned: there are now five rather A D _ F R H O WS E P _ 1 2 . p d f Pa ge 1 2 0 / 0 8 / 1 2 , 6 : 0 9 PM driven by health rather than price. spices will add a nice new edge,” than 35 bread choices, and a But of course price is going to he says. signature bread is a low sodium

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Inspire|Interview

will come as the brand grows its footprint. But for now, with a new menu and a new look, the focus is on consolidating the message and building up customer loyalty. The lunchtime hours of 11am to 3pm remain the major source of sales.

existing franchisees to ensure there is a good financial return. The franchisor is contributing nearly 40 percent of the refit costs for franchisees already in the network. The tight budgets also mean there is negotiation with shopping centres’ over their

I want my franchisees to understand we came up with a new brand and a new menu, but what happens when the customer walks in? Will they come back? “Based on the rebrand investment, we know we need to bring in x number of customers, and this should flow to the bottom be an issue; it doesn’t make sense line. It’s better to be upfront so to sell items costing above $10. franchisees know what target we And this is a challenge. Although are aiming at,” says Pereyra. the sandwich bar chain has The aim has been to bring benefited from the resources at investment down to under hand in the Dymocks Group, it A D _ F R MA D MA Y _ 1 2 . p d f Pa ge 1 1 4 / 3 / 1 2 , : 2 0 AM $300,000 for new9stores and to still lacks the economies of scale effect a low-cost rebrand for that directly affect costs; these

stringent refit demands which can influence the level and type of lighting, in-store counters etc. Many landlords are requiring more elaborate works that will affect the ROI. Pereyra is hoping the tough retail environment is softening the shopping centres’ approach. While 50 percent of the business is already committed to

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Inspire|Interview

the rebrand, Pereyra says, these initial refits will be used as examples to inspire the remaining outlets. There are other plans for the system, once any glitches in the new model have been smoothed over and the re-brand is earning its keep.

Looking ahead

Pereyra has his sights set on alternative models, broadening the locations and the set-up to appeal to a variety of high volume takeaway dining markets. For instance, street front concepts, hospitals, universities, schools – perhaps even a link with the bookstore side of the parent company. Designs on the table include sandwich bars with a createyour-own juice bar element, all packed into a neat 50 sq m footprint. “You don’t

A QUICK BITE The new Healthy Habits Theme: sophisticated, fun, modern Australia with an ecological edge Earthy palette reflects Australian landscape Orange and white branded uniforms Branded feature walls Slimmed down menu with local flavours Improved training and operations need a walk-in fridge, you can use three commercial fridges,” Pereyra points out. The rebrand has been born out of a desire to create an affordable, more compact menu with creative yet healthy

Customisation

We try to be transparent with franchisees, we don’t have all the answers but can go back to change and do things better. We’re small enough D _ F R Y mistakes B M I C _ 1 3 . and p d f then P a g echange 1 1 2 / them 0 9 / 1 2 , 4 : 2 8 toAmake

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options, at the same time tightening efficiencies. The developments have been grounded in customer research. And that’s not over yet. In 12 months there will be more surveys conducted “to see what really happened,” he says. “We try to be transparent with franchisees, we don’t have all the answers but can go back to change and do things better. We’re small enough to make mistakes and then change them. It’s execution, not brand and menu, that effect the change. “I want my franchisees to understand we came up with a new brand and a new menu, but what happens when the customer walks in? Will they come back? “We will keep evolving. There are no expectations that it won’t be challenging.” F Healthy Habits will be building its brand awareness through a variety of channels, including the sponsorship it has secured for the Sandwich Championships with the aim of targeting the kids’ market, and introducing the youngest generation to the PM practice of making a healthy sandwich.

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Inspire|Franchisee

Grant Smith, a McDonald’s franchisee who picked up his life and his family and moved to a small mining town in Western Australia to start afresh has no regrets

A SEACHANGE TURNED

GOLD MINE F

eeding thousands of hungry miners is quite a task, but it’s one that Grant Smith, McDonald’s licensee in Western Australia’s town of Collie, is only too pleased to perform. “They love their Double Quarter Pounders and their Mighty Angus burgers. They are big eaters. They’re hungry guys and they’re on large money as well,” Grant told Franchising. 16| FRANCHISING NOV/DEC 2012

Grant took over the Collie site in late 2009 after he and his wife decided they wanted a new challenge, after both spending years as primary school principals in Queensland. Unlike most adults looking for a seachange, Grant and his wife, Amanda, didn’t want to wind down or smell the roses, they were looking for a new business opportunity that would reward them for hard work and long hours. WWW.FRANCHISE.NET.AU

“I got to a point where I wanted a higher return on investment for my sustained high performance. In the industry that I was in, my wife and I considered ourselves to be high performance operators, but I guess our salary earnings and our return on our efforts was capped. I found that very, very frustrating. For the hours that we contributed to our jobs, whether we contributed a minimal amount or a large

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Grant, an ex-school principal, enjoys interacting with his young staff and the local community

amount, it didn’t reflect in our salary and I found that very suffocating,” says Grant. But then a close friend, and McDonald’s licensee, recommended that Grant look into joining the fast food giant. After going through the stringent due diligence process and being approved to enter the franchise’s training course, Grant met with three existing licensees and was convinced this was the right investment for him. “They all said that it was a tremendous amount of hard

now. The more time we spend in our restaurant the better our restaurant runs both in efficiency and in regards to customer service.” McDonald’s allocates sites to its licensees and the only guarantee Grant received from the franchisor was that his store would be in Australia. He ended up with the Collie site, two hours south of Perth – a big move from Brisbane, especially with two young boys in tow. However, with his experience in education, Grant knew his boys

We spend a lot of time with our crew and identify career paths for them ... We just want to show people that ethics and hard work does pay off work, but that didn’t bother us at all. We were most excited about that. If we wanted to work 20 hours a day, that would be reflected in our profit and loss, and that’s what’s happening 18| FRANCHISING NOV/DEC 2012

would be resilient enough and says McDonald’s site allocation is a careful process which the licensee needs to trust. The franchise term is 20 years so a good match between licensee WWW.FRANCHISE.NET.AU

and location is important to both parties. “They try and match the licensee to the community,” says Grant. “And obviously all stores are priced differently, so you can have very, very expensive stores or less expensive stores. They match the personality of the licensee plus their financial backing, to the area. It’s not just a whim and a prayer, there’s careful consideration with regard to the allocation of stores.” Some licensees would be concerned at being allocated a store in a town of just 9,500, but not when a big percentage of customers coming through the door are big, hungry miners with money to spend. Operating in a small town and being very hands-on in the business means Grant has a great relationship with both his customers – many of whom he’s on a first-name basis with – and his staff. Despite leaving his career as a principal, Grant still considers himself an educator and takes great pride in

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a valued member of the golden developing the skills of his staff, arches’ team. regardless of whether or not those “The McDonald’s system skills can be put into practice in has been built on the diversity his store. of skill and experience that our “I wouldn’t say I do it better franchisees have brought to than any other licensee but my the business in over 50 years of knowledge of adolescent developfranchising. ment and Gen Y, the technologies “Grant is a great example they use, how to interact with of someone coupling an ability them, being fully conversant with to engage with people, with a them, has greatly assisted us in commercial focus. Grant came connecting with our crew. to us a couple of years ago, “We spend a lot of time with having spent his career teaching, our crew and identify career paths mentoring and relating to for them ... We just want to show students in his role as a principal people that ethics and hard work in Brisbane. He was looking for an does pay off. If we drive them to opportunity to utilise those skills a career in McDonald’s, great, if in a business that would allow we drive them to be the best that him the opportunity to realise his they can possibly be in another potential,” he says. field, then we find that equally “He and his wife have quickly enriching.” integrated themselves into both Bert Cotte, franchising manager the local community of Collie, and at McDonald’s Australia, says also the McDonald’s family. They that Grant’s passion for the Collie community, his staff and the A D _ F R O U T N O V _ 1 2 . p d fare achieving P a g e some 1 1 great 8 / 1results, 0 / 1 2 , and haven’t looked back.” F growth of his business makes him

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Aussie chicken retailer Lenard’s has unveiled a new look logo, brand new TV campaign and a refreshed brand focus as it celebrates its 25th anniversary

LENARD’S NEW LOOK L

enard’s’ new brand direction, “Let’s Make Something Special”, encompasses a new logo and strapline designed to reflect the relationship between the home cook and Lenard’s. It is being launched through a television campaign, complemented by digital activity and through a new store design, new uniforms and a new online presence. It all started with casual conversations across the counters of Lenard’s stores between staff and their customers and led to a six month research project conducted by insight consultancy, All About Eve.

The research

According to Linda McGregor, business principal of All About Eve, today’s cooks now have a range of conflicting demands on their dinner skills. “Women, who are still the main cooks, are telling us it’s no longer just about the core of tasty food. It now also has to be fresh, natural ingredients where possible, healthy, value-for-money, provide exciting flavours and be quick and easy – the list goes on,” McGregor explains. Lenard’s national marketing manager,

Zoe Jacovou, says “The redevelopment work was fondly called, “Mission Possible” by the team of strategic, creative and media experts that we pulled together to help us embrace the changing meal environment that our customers, old and new, we’re having to deal with. “The aim was to showcase our role as the consumer’s partner in getting quality, tasty meals to the table. The research showed us that cooks didn’t want full solutions handed to them and the associated guilt trip. Rather, they wanted to feel they were still in charge of dinner decisions and provisions, but with a handy partner in the wings sharing the workload to make better weekday meals possible. “Supplying ideas and recipes isn’t enough,” adds Jacovou. “We needed to lead the way as retailers and offer more than that and provide it in a way that makes weekday meals fun and exciting again. “With this new brand direction, we have completely reconstructed our consumer and brand strategy,” Jacovou says. “We have made the customer experience our biggest priority and positioned Lenard’s as a trusted partner

We have made the customer experience our biggest priority and positioned Lenard’s as a trusted partner in the kitchen, offering more, better and easier chicken solutions than our competitors 20| FRANCHISING NOV/DEC 2012

WWW.FRANCHISE.NET.AU

in the kitchen, offering more, better and easier chicken solutions than our competitors.”

Promoting the brand

To get the message out to consumers, television commercials will appear across selected free-to-air networks in metro and regional areas, as well as national pay TV spots. Digitally, the campaign will encompass a cross-category approach targeting display and video advertising on a range of websites, including the Ninemsn Network, Taste.com.au, Best Recipes and Kidspot.com.au. This will be complemented by Facebook advertising to drive awareness of social media-driven promotions. The reinvigorated brand direction is accompanied by the launch of three new ranges: Char-Grill Split Chickens, Fresh Marinades, Barbie Bags featuring Smokey Spanish Paella, Snags & Onion Gravy and Creamy Mushroom Risotto. F You can check out the new 30 second tv commercial at www.franchise.net.au/news/ lenard-s-marks-25th-year-with-brand-refresh

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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

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A FENCING FIRST As Jim’s Fencing’s only licensed female franchisee, Liz Olivier is prepared to get her hands dirty, and is ready to recruit like-minded, passionate professionals to help manage her territory on NSW’s central coast

iz Olivier isn’t afraid of hard work. Originally from South Africa, in 1999 she, her husband and three daughters moved to Australia where she worked in the outback on commercial farms before setting up her own meat exporting business in 2008. After 10 years running Olivier Meat Exports, Liz wanted a new challenge and decided franchising was the way to go. “We looked at various different franchises and settled

on the Jim’s Group, and Jim’s Fencing seemed to me to be a very, very good business model,” she says. Liz dived head-first into the business, taking on the central coast and northern NSW as regional franchisee, without any previous fencing experience. While Jim’s Fencing has a number of husband and wife franchisees, most women in the business tend to perform administrative roles, whereas Olivier is as hands-on as they come.

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“I went to get a qualification in construction, so now I’ve got my fencing licence and I’m the first woman in Jim’s Fencing to have a licence. I don’t know about the rest of the country but when I did the course at TAFE they had never had a woman do that course.” Liz bought the regional rights in February, started operations in May and has been working 60 to 70 hour weeks since, trying to build the business and its clientele to a point where she can be confident her franchisees will hit the ground running. “I’ve had a few people enquire but I haven’t even attempted to go down that road [until now] because I wanted the area to be really ready for NOV/DEC 2012 FRANCHISING | 23

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them, and I wanted the area to be switched on. I want Jim’s Fencing to be switched on. I want the phone to ring,” she says. “It’s been an enormous task in that I’ve come in as a master franchisee and I needed to learn everything. I really do believe that whatever you do, you need to

benefits of working for such a well-established system. “Jim’s Fencing, or any of the Jim’s brands, is extremely recognisable and that’s why I took it on. I think in areas such as Western and South Australia and down in Melbourne, they have that many franchises in a concentrated

We also win a contract or a job just because we’re part of the Jim’s Group. A lot of people don’t want just anybody in their backyard and they feel very secure when they choose a national group understand your subject enough if you’re going to be a leader, because you cannot lead without actually having the experience and being able to bring quality and knowledge to whoever you’re leading.” The group’s brand recognition has gone a long way in getting Jim’s Fencing off the ground in AD_ F RJ ANNOV _ 1 2 . p d f Pa ge 1 Liz’s territory, and she’s confident her franchisees will reap the

area, even here in Sydney, that you very often see the utes and trailers and I think that is one of the strongest branding opportunities, actually seeing the vehicles. “We also win a contract or a job just because we’re part of the Jim’s Group. A lot of people don’t want just anybody in their backyard and 1 1 / 1 0 / 1 2 , 1 2 : 5 1 PM they feel very secure when they choose a national group,” says Liz.

While she’s been putting in the hard yards and the long hours to establish the brand in her territory, Liz insists Jim’s Fencing franchisees can rest assured that the business offers flexible hours and extremely rewarding financial returns. Male or female, she says any franchisee wanting to come onboard and work with her must be passionate, hard working and proud to be part of a national brand. “This is not a salary that you’re earning. It really is a lifestyle and therefore you need to really want it. I think that is the way that I will be offering franchises here. If they’re people that want to be part of a team and part of the success story, then we can help them on their way and we can help them with the systems we’ve got, but they’ve got to be keen and wanting to put on that Jim’s Fencing shirt – keen to be one of the Jim’s Fencing team members.” F

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BACK IN

Anthony Belcher is the Sydenham franchisee with physiotherapy chain Back In Motion Health Group. We asked him some questions about being a franchisee

BUSINESS Why did you decide on franchising as a business model? “I was running a physiotherapy practice myself, and I was literally the only person in the business. I soon realised it wasn’t a business, it was a job. After reading a few books such as Rich Dad Poor Dad I decided to get into the franchise model so I could learn how to run a business properly.”

How long have you been a franchisee? “I’ve been a Back In Motion Health Group franchisee for just over five years now. I started when I was 25 and am now 30, I’m glad I began my journey as a franchisee quite young as the first four years were so time demanding, which wouldn’t have worked if I had kids. Now that I have two kids, I can spend time with them without the business taking away all of my time.” 26| FRANCHISING NOV/DEC 2012

What made you choose this brand? “Back In Motion is the only franchised physiotherapy business in Australia, though importantly, the group has a purpose, vision and values which aligned with mine. I knew that if I embraced Back In Motion Health Group’s philosophies and adopted their franchise model and systems, I would achieve great results, as many other franchisees already had.” How much research did you do beforehand? “It took me about three to six months to research, write a business plan and complete an application to join Back In Motion. I researched buying a franchise, the physiotherapy industry, and Back In Motion itself. The time it took was longer than it had to be. I was probably allowing the idea

WWW.FRANCHISE.NET.AU

to simmer in my head as I knew it was an all or nothing decision. “The interesting part is that if I listened to my accountants and solicitors, I probably would not have joined the group. It is their job to pick the teeth out of things, but they can also get you to think quite negatively if you let them. In the end I knew it felt right and I was willing to have faith and take a risk.” How did you fund your franchise investment? “I borrowed some money from my brother, had some money myself, and borrowed the rest from the bank. In 2007 banks were fairly generous to lend as it was pre-GFC and they were much more willing to lend to a franchise, than a start-up business. In 12 months from now all of the debt will be repaid and we will have a highly profitable business.” What will you do when your agreement comes up for renewal? “Our renewal came up very recently. We signed for another five years and I’m fairly certain we’ll be at Back In Motion for another 10 years after that. The model is so robust, so successful and the people align perfectly with my own values. The only

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time I’ll leave is when I’ve had enough of being a business owner, probably many years away yet.” What is the biggest lesson you’ve learned as a franchisee? “How much work goes into running a true business. I thought business was about knowing a lot, but it’s really about working hard to establish the operation, and then working on yourself to learn skills of delegation, management, financial management and continually trying to improve. “The process of developing the business never ends, which I never understood prior to becoming a franchisee.”

A Back In Motion treatment room

Is franchising a lifestyle or an economic decision for you? “It’s both. I firmly believe that the economic result comes first, and once that What has been the biggest challenge as is sorted out, it’s up to me what sort of a franchisee? lifestyle I lead. “Coming to the decision that if anything “I don’t want to be perceived as goes wrong in the business, it’s my fault. someone who only cares about money, but “It’s easy to blame the franchisor, emin society so many of us are restricted and ployees, clients, the market, the economy dictated to by our financial circumstance or any other factor. However, by accepting (including me). I want to break free of this all mistakes are my fault, it allows me to AD_ F RJ USSEP_ 1 2 . p d f Pa ge 1 1 4 / 0 8 / 1 2 , 9 : 4 1 restriction so that I can choose what to do move forward with solving problems and with my time and my life.” learning from them in the future.”

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What goals have you achieved since being a franchisee? “The first goal was to learn how to run a business, and while that goal will always be there I certainly have many more skills now than I did five years ago. “Secondly I have freed myself operationally from the business, which allows me to work when I want. Now I AM spend plenty of time with my family, which is the most important thing to me.” F

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BADGE OF

DISTINCTION What happened when a Sydney pharmacist invested in a Priceline franchise?

t was the advent of the competitive discount model that persuaded long standing Penrith pharmacist Theo Theodorou that he should look for support in his business. Located in a plaza with stiff competition and a small 200 sq m footprint, he realised it was time to change. Initially Theodorou thought

a buying group would be the answer, but he found that despite joining forces with like-minded pharmacists there was too much diversity within the group to drive change. â&#x20AC;&#x153;I wanted to go more to the natural health market but the others were not interested,â&#x20AC;? he says. Finding Priceline proved the

I was naive to think that if I just gave good service my business would thrive. Without the marketing, joining forces with others, isolated on my own it was a struggle 30| FRANCHISING NOV/DEC 2012

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AD_ F RCOS 3 NOV _ 1 2 . p d f

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Outsource the really boring stuff... and concentrate instead on building your business!

Theo Theodorou, awarded Priceline’s Franchise Store of the Year

solution to his problem. “I couldn’t go past the Priceline model, I knew where they were going. For me, my personality suits it. I did look at discount models but decided they wouldn’t suit my personality. I want to be doing more than counting the dollars, I like to be out there, getting information, offering advice.

Retail focus

“I’ve noticed a definite change since switching to the Priceline model, young women come in, go to look to the cosmetics; the testers, they can touch and feel; they’re all quite relaxed and spend a while in-store. Our staff can approach them, offer them some help. They really buy into the “come in and play” idea that Priceline is trying to promote. And the more popular ranges you have, the more they buy. “We also have more of the 45+ and 65+ profile that are very loyal; they come in two or three times a year and fill up their baskets with vitamins. They’re more interested in natural health and alternative therapies etc, and are very keen to tap into my knowledge.” Priceline has developed a great synergy between what the traditional pharmacist

can offer and what a retail pharmacy does, he says, and it all goes to improving the customer experience. “From my own experience, consumers expect pharmacies to be accessible and pharmacists to be knowledgeable but I didn’t know what people expect from local pharmacy in terms of what it should stock etc. “It’s what separates this model from the discount models – the discounters will win the absolute price war but if someone cheaper comes along, they will lose. Whereas if you build a loyal customer base who knows that you will supply what they need and give them good advice, they will keep coming back to you because they value the service as well as the price. “I was naive to think that if I just gave good service my business would thrive. Without the marketing, joining forces with others, isolated on my own it was a struggle. “Now I’ve married the commercial reality of retail pharmacy with the knowledge from my training.” Cosmetics, skincare and vitamins are now the big sellers for the pharmacy. Despite this, investing

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“After 15 years my wife, Nayia, has just come back to the family business after having children – our youngest is now three. Nayia works with me three days a week – she’s an accountant by trade, so she does the books and is in charge of the marketing and the look and feel of the store. “We did a lot of work on how we present stock to clients and share with other stores’ knowledge of what does and doesn’t work. We also get continuous feedback from business development managers – we don’t always get it right first time but keep tweaking. “We concentrate on making the store fun and adhere to basic principles of display. We make sure that it’s always stocked, looks neat and tidy and we experiment with ways of displaying products. Our staff make a big difference.”

Above: Theo Theodorou at the new store Right (L to R): Julia Morris (MC); Nayia and Theo Theodorou; Bridget Blake, GM store operations and Stephen Roche, API

Pink power

in the Priceline brand has boosted customer numbers and prescription volume is up. And now, as a franchisee, Theodorou gets the kind of backup support that he couldn’t afford on his own. “I couldn’t afford research, for example, to tell me what’s happening in the pharmacy industry, how the industry might change in the next five years. There are great benefits to being part of the franchise and I greatly

appreciate it. It’s very useful.” One of the biggest challenges for an independent business rebadging is the customer confusion over ownership. It was the same for Theodorou who says, “Most people understand now – originally they thought we’d sold to Priceline rather than becoming a franchise, so we make sure we make the point in our marketing that it’s still me, my wife and children running the business, it’s just the branding that’s changed.

I started with pretty much nothing but with tremendous support from my family have built a tiny pharmacy with a $1 million turnover into a much larger store with a $5 million turnover 32| FRANCHISING NOV/DEC 2012

WWW.FRANCHISE.NET.AU

About a year ago Theodorou moved away from his crowded, triangular shaped store with the old red branding to larger premises with a rectangular, very wide frontage and better exposure to clients. The move was the perfect time to adopt the new pink branding and the overall result has been exponential sales growth, says Theodorou. So what’s next? “Our immediate plans are to keep setting benchmarks and working on my business rather than in it, so I can be at home a bit more. I’d really love some time off to go skiing – I don’t ask for much! “In the future, I would like to be financially independent, maybe look for another Priceline store and establish a lifestyle for retirement. “I started with pretty much nothing but with tremendous support from my family have built a tiny pharmacy with a $1 million turnover into a much larger store with a $5 million turnover.” F

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A D _ F R WI S J A N _ 1 2 . p d f

A BAKER’S

DOZEN W

hen Bakers Delight founders Roger Gillespie and his wife Lesley took their baking skills to San Francisco for a spell it paid dividends. Roger Gillespie told the National Franchise Convention 2012, “San Francisco taught us the value of franchising, and about American sourdough. The Americans didn’t like our bread, but they loved franchising.” The couple came back to Australia with a taste for franchising, and have built

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TOP TIPS: THE BAKER’S DOZEN The first lesson is empowerment Nothing succeeds like success When you see a problem, deal with it immediately Hire ahead and get the right people for the job When it comes to staff, know when to hold and when to fold - don’t hang on to inadequate team members 6. Be authentic and commit to a cause - “fan the fire and make a difference” 7. Stay focused, but evolve the busines. Deliver on your promises and delight your customers. Business will increase if you focus on what you do well 8. There are four Ds that can undo you: death, disease, divorce, discontent - you can work to ensure the last doesn’t get a hold in your business 9. Act quickly - if you see an opportunity to make a difference, step in 10. Nurture love for your brand by finding out what it is about your business that people love 11. Get your franchisees/staff to love your business - “it’s all about how you recruit, they have to fall in love with your business” 12. Network unity - creat a network that’s united and can see common vision. Don’t assume people know what you’re on about 13. And the last one’s for franchisors: invest in technology. “We spend about $10,000 on technology per year per franchisee.” 1. 2. 3. 4. 5.

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Inspire|Franchise story

ENERGISING THE MODEL A brand new franchise model has been introduced at AGL

GL Energy Limited has launched 10 flagship AGL Smarter Living retail stores this spring to meet the growing demand for customer end-to-end energy solutions. The opening of the stores marks the roll out of a new franchising model in which the goods and services that were separately provided by AGL Energy Shops and AGL Assist are now all available from the same one stop shop, and supported with access 36| FRANCHISING NOV/DEC 2012

to the AGL Smarter Living online centre. Mark Brownfield, AGL general manager marketing and retail sales, says the decision to re-draw the franchise model came from the ongoing conflict of having two separate channels. “We are overlaying the functions so the customer can deal with only one point of contact. Secondly, our shops needed an overhaul, they had become too expansive.” The new concept AGL Smarter

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Living stores provide access to energy efficient products, as well as essential electrical and gas fitting services, supporting appliance installation, maintenance and repairs. AGL Smarter Living stores also specialise in the provision of general electrical and plumbing services, solar hot water and solar PV. “In the model we have, there is no direct competition. General retailers such as Harvey Norman, Bing Lee and the Good Guys sell

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An investment with the lot. We specialise in fresh-grilled chicken and burgers with the unique and authentic Oporto ﬂavour. And have done so for over 25 successful years. That’s why if you’re looking to buy a franchise, Oporto is an opportunity you won’t want to miss. • Over 140 stores across Australia, New Zealand, USA and China, opening an average of 15 new stores p.a.

• Investment levels to suit a range of budgets, with food court, street front and drive-thru formats.

• More than 15 million customers served every year.

• We oﬀer franchisees the highest level of support in all areas of the business.

• Opportunities available in Sydney, Brisbane, Melbourne, Adelaide and many regional locations.

• Listed in BRW’s Top 50 Fast Growing Franchises issue for the past 8 years.

To invest in this 100% Aussie-owned business, contact our Franchising Team on 1300 727 129 or visit oporto.com.au

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similar types of products, but their propositions are based on price,” Brownfield says.

The franchise offer

The unification of the two franchised elements of the business has resulted in a shrinking of the franchise portfolio down to five. “There are fewer franchisees in the new model because it’s combining sales and service,” Brownfield explains. “Some franchisees didn’t have the service capabilities and some had other businesses. We have worked for 18 months on a controlled exit, it’s been fairly collaborative. “By mid-November the last of the stores connected to franchises will be open. In six months we will measure the performance of the new business, and will decide how many more to open. “We need to make sure it’s sustainable for franchisees,” he says. AD_ F RCAF NOV _ 1 2 . p This is quite a sizeable business, in revenue terms, and

successful franchisees have been running businesses as plumbers, gas fitters or electricians before joining the AGL system. A new franchisee will need about $350,000 capital upfront. This does not include the shopfit costs, which are initially covered

munications to new customers in welcome packs and to existing customers using their bills to spread the word. Celebrity workshops are also being held in a handful of stores, and all opening shops have been hosting welcome barbecues.

In six months we will measure the performance of the new business, and will decide how many more to open. We need to make sure it’s sustainable for franchisees by the franchisor as a form of financial assistance; the franchisee is then required to reimburse a portion of the costs through regular fees.

On top of the ad campaign, in-store retail special offers will be focused on energy efficiency products. AGL opened the first 10 retail stores in October in New South Wales, Victoria and South Australia. At the moment the offer is Getting the message across to the for metro areas but there is a plan consumer involves a full media to expand into regional areas like campaign featuring print and df Pa ge 1 2 7 / 0 8 / 1 2 , 2 : 4 9 PM Ballarat and Bathurst, currently radio ads, an online message, covered by agents. F letterbox drops, and direct com-

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THE INSIDE

While ice cream is traditionally seen as a summer treat, there’s plenty you can do to maintain and even grow your business in chilly times, writes Danielle Bowling

SCOOP A

lmost every industry has its highs and lows, and ice cream is no exception. The summer months, which in Australia correspond with Christmas and school holidays, mean sweet sales surge, but what happens in the colder months, when people tend to bunker down and indulge on warmer desserts in the comfort of their own home? Some of Australia’s leading ice cream and dessert franchises shared with Franchising what they do to keep their brand front of mind, year-round.

Product diversification

Wendys national marketing manager, Joanne Hayes, admits that while ice cream is “the heart and soul” of the brand, a broad product offering allows it to maintain steady sales 12 months of the year. “We’re lucky enough that ice cream represents only a percentage of the business. So one-third of the business comes from our drinks – our shakes and smoothies – and then another third comes from the hot dogs and combo meal deals. In winter we tend to push new savoury offerings, the more hearty offerings.”

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Wendys also uses social media and feedback from its loyal customer base to help determine which products work and which don’t. “Last year we launched a loyalty club called Yum Club. We’ve had a huge drive on Facebook and that’s now driving members to our loyalty club. “In the 80s Wendys was a really strong brand for particular generations, and it’s about continuing to make it relevant for those younger generations as the brand progresses ... We utilise the Yum Club, so if we’re going to launch a new product, rather than us as a company deciding what we want to do, we’ll run a membership drive to the Yum Club then choose maybe 20 people to come in and taste our new products and give advice. We’ve actually made slight changes to products due to that feedback.” According to general manager of BaskinRobbins Australia, Ian Martin, the ice cream business had 20 weeks of positive sales over the most recent winter period, and so he questions the theory that people don’t want ice cream in winter. He admits, however, that summer is a busier time for the franchise, and says Baskin-Robbins is embarking on a number of initiatives to drive sales in the cooler months. “One of those is new product development. So this year we introduced what we called our Winter Warmers range for the three months that ran over winter, which had a range of warm products like lava cakes, waffles and hot sundaes which are new products, complementary to our ice cream and served with ice cream but they give another opportunity for guests to come in,” he said. Baskin-Robbins is also trying to drive its offpremise business via its ice cream cakes and take home packs and, as at Wendys, social media is a key factor. “We have a strategy of making sure our brand is relevant to our guests both to drive the frequency of our existing guests and to trial new guests. Cakes and take home packs are a key growth area at Baskin-Robbins

Social media is very targeted at the latter, of getting brand awareness to people who might not have considered us for off-premise activities like cakes and take home packs for example.”

More flavours, more fun

As well as being kosher and having a range of gluten-free offerings, Tasti D-Lite stands out from the frozen dessert crowd by claiming to be a healthier alternative, while also boasting a huge selection for its customers. “It’s real point of difference is that it’s healthier than traditional ice cream, frozen yoghurt and gelato. We also offer 100 different flavours which are available every day,” says director of development, Jeremy Crawford. The business recently opened its first franchised outlet in the Highpoint shopping centre in Melbourne and has two other corporate stores - one

If they try it they’ll be coming back. Too many people these days get emails and flyers, but nothing beats getting the product into people’s mouths in South Yarra and another in Westfield Southland with its sights set on having 15 to 20 stores open over the next four or five years. Crawford says Tasti D-Lite sees winter as an opportunity to grow its fan-base, and the company was pleasantly surprised with its most recent Melbourne winter. “This past winter we made a concerted effort to stay true to this philosophy by implementing a number of different competitions, promotions and also use one of our most important points of difference – our unrivalled variety of flavours – to Tasti D-Lite markets itself as a healthier alternative

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open new lines of interaction with our customers. â&#x20AC;&#x153;We are particularly proud of our continuing new flavour development and innovation. Last winter we had â&#x20AC;&#x2DC;limited runsâ&#x20AC;&#x2122; of new flavour ideas weâ&#x20AC;&#x2122;d been working on and decided whether or not to permanently add them to our menu based on our customersâ&#x20AC;&#x2122; feedback. A good example is one of our most successful new flavours, Malt-Tasti, which is our take on a chocolate Malteser flavour,â&#x20AC;? he says. â&#x20AC;&#x153;These kinds of activites, and staying engaged with our customers, contributed greatly to our being able to remain a part of our customersâ&#x20AC;&#x2122; food choices all the way through winter.â&#x20AC;?

year â&#x20AC;&#x201C; whether it be at home or in-store â&#x20AC;&#x201C; with the industry going through an intense surge during summer. Like Baskin-Robbins, Cold Rock has launched a take-home menu and plans to invest in the promotion of cakes for winter 2013. Gordon insists Cold Rock is an ice cream brand so isnâ&#x20AC;&#x2122;t interested in expanding its menu to include hot drinks or other dessert items. He has, however, strengthened its offering by having a number of co-branded stores throughout Victoria selling products which might drive sales and increase patronage in the colder months. â&#x20AC;&#x153;One of the other brands that we own

Co-branding

Cold Rock is part of the Franchised Food Company group (FFCo) of franchises and is based on the theory that ice cream lovers should be able to design their own treats, selecting various chocolate and lolly â&#x20AC;&#x2DC;mix-insâ&#x20AC;&#x2122; to add to their dessert. AD_ F RACE 1 NOV _ 1 2 . p d f Managing director of FFCo, Stan Gordon, says Australians eat ice cream all

PStan a gGordon e 1 says 1 co-branding 1 / 1 0 / is 1 a2popular , 1 2 : 4 8

business model in the US

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is Pretzel World. So we’ve put that as a dual-branded store. In summer when the sun shines it’s an ice cream offering but in winter there’s actually a hot coffee and pretzel available - two brands but on the same premises. The idea is quite unique in Australia but it’s certainly what’s happening in America,” Gordon says. Another brand which falls under the FFCo umbrella is the iconic Mr Whippy. Gordon is set to relaunch the brand known for the distinctive music that announced the arrival of a Mr Whippy’s van as it drove about the neighbourhood. However it will not be mobile secondtime round, says Gordon. “We’re talking to some petrol and

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convenience food businesses ... We’re about to go to trial in four stores within their outlets and we’re also going to do a retail concept, but again it’ll be a store within a store. We’re going back to the van look, but not a mobile through the suburban streets.” When Franchising spoke with Gordon he couldn’t share many details but said Mr Whippy would be seen in a well known petrol station brand before December with the separate retail concept launching early in the new year. “[The petrol station co-branding] will be very much like that 7-Eleven did for Slurpees,” he says. “Mr Whippy is on its way back, in a big way.”

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Ben & Jerry’s has a strong following thanks to its social mission

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A wholesome treat

Ben & Jerry’s entered the Australian market in 2009 and has seven scoop shops across NSW, Victoria and Queensland, one of which is franchised, with two more franchises in Sydney and Melbourne to open before the year wraps up. The point of difference for this brand is that it has its finger on the pulse in terms of what consumers want - other than tasty ice cream.

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“Ben & Jerry’s aims to source as many ingredients as possible from suppliers who share our values of being socially and environmentally responsible. For example, we use cage free eggs and work closely with dairy farmers to continue improving farming practices and to help protect the environment and animal welfare,” says Kalli Swaik, Ben & Jerry’s brand manager. Swaik believes its Ben & Jerry’s philosophy of “delivering the best possible ice cream in the nicest possible way” that sets it apart from its competitors and keeps people visiting its stores all year. The franchise’s mission statement is broken up into three key areas: social, product and economic. It highlights an intention to use wholesome, natural ingredients while promoting business practices that respect the earth and the environment. Swaik says, “Ben & Jerry’s has a strong social mission and this drives the work we do. On a global scale this is best exemplified by our commitments to values-led sourcing. In Australia, we

Gelatissimo is in seven markets across the world

work with charities such as OzHarvest, Mission Australia and Fairtrade, donating money and raising awareness for their great causes. We also encourage scoop shops to nominate and work with local charities.”

Global and local focus It’s always summer somewhere for Gelatissimo, which in October took

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out the International Franchise Award at the Franchise Council of Australia’s Excellence Awards 2012. With stores in Australia, Singapore, Malaysia, Indonesia, the Phillipines, Kuwait and Italy, this gelato franchise hasn’t lost sight of the importance of year round marketing on a local level. Dominic Lopresti, joint CEO, admits the business has its yearly highs and

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Organic indulgence DESCRIBE THE BUSINESS Fritz Gelato specialises in organic ice cream, sorbets and frozen yoghurts, partnered with organic coffee and donuts. There are four stores in Melbourne and two franchises on the Surf Coast at Lorne and Queenscliff. WHAT SETS THE BUSINESS APART? Our focus on what goes into the product. We cater to vegans, coeliacs and those with dairy intolerances. We set out initially to be dairy free in our sorbets, use real fruit and organic sugar. We don’t use egg or gelatine in our gelato base and it is gluten free as well. We also stopped using artificial colouring and flavours. Our goal was to make a healthy, clean, low fat gelato that was still full of flavour.

find a master franchisee in Queensland or NSW. We continue to grow our wholesale business, distributing gelato to local restaurants, hotels and caterers and we’ve been investigating doing small packaged serves that could be sold either via specialty supermarkets or through selected fast food chains. WHAT ARE YOU LOOKING FOR IN NEW FRANCHISEES? New franchisees need to understand business and have a love of gelato or at least selling it. WHAT DO YOU DO TO DRIVE SALES IN THE WINTER MONTHS? We sell coffee and donuts which do better in winter. Our wholesale business is also good during winter.

HOW IMPORTANT IS SITE WHAT ARE YOUR EXPANSION SELECTION? PLANS FOR THE NEXT 12 MONTHS? Site selection is everything. Ideally, We are hoping to expand the number AD_ F RVI PSEP_ 1 2 . p d f Pa ge 1 6 / 0 8 / 1 2 , 1 1 : 0 2 stores should be next door to dining of franchised outlets and we want to

destinations that do not sell dessert. You also want lots of foot traffic as gelato is an impulse buy most of the time. Exposure to the elements should be considered too. It’s great to have some sun, but you need protection from the AM cold winds and rain.

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“I love the free time I now have. I get to choose the hours that suit me and I love being the boss.” “I haven’t looked back since I made the decision to own my own V.I.P. franchise. I love what I do and am so glad I decided to go for it.” Annette, V.I.P. Home Cleaning franchisee

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lows but says targeting ice cream flavours to the seasons always helps. “We try and maintain a really robust marketing campaign during the cooler months and how we do that is by trying to spark up interest promoting products that work well in winter,” he says. “The last promotion we had was a Death by Chocolate promotion during winter and we had 16 different flavours of chocolate ... They look fantastic in-store and because the product’s made fresh, daily in-store we’ve got the luxury to be able to do that so it works really well. You’d be surprised how much attention it attracts during winter”. And while site selection and social media play key roles in driving consumers out of their homes and into Gelatissimo outlets, Lopresti says nothing beats the franchisees actively promoting their product.

“Our gelato makers – our franchisees mainly – are encouraged to give our customers a taste of the product when it’s just come out of the machine. So they can taste fresh gelato and it really is an amazing experience and we really try to make our consumers aware that we make the gelato in-store. He adds, “A part of the franchisees’ marketing fund goes towards their local store marketing ... we really encourage them to do a lot of sampling initiatives. Too many people these days get emails and flyers, but nothing beats getting the product into people’s

Gelatissimo makes its product fresh, in-store

mouths. That’s something we really see as important because we know that if they try it they’ll be coming back.” F

In summer when the sun shines it’s an ice cream offering but in winter there’s actually a hot coffee and pretzel available - two brands but on the same premises. The idea is quite unique in Australia but it’s certainly what’s happening in America

Seasonal sales Unlike many other dessert franchises, Trampoline Gelato is all about maximising opportunities in the warmer months and then bunkering down in winter. The brand recently launched a mobile concept, Trampoline on the Moove, to take to the streets in summer, getting the most out of people’s heightened sweet tooth. The mobile business can be sold as a franchise territory with the franchisee sourcing its ice cream from a local store and then roaming around to events and festivals. Jen Chandler, franchise support manager, told Franchising, “It’s a bit of recognition that summer is really when people are looking for gelato. We have stores but where people gather, where there’s events, where there’s fun things happening, that’s where people want their gelato. “The beauty of the mobile unit is that you’re not paying rent and because it will be run by franchisees and casual staff there won’t be wages. There’s no cost involved in the off-

season, so you work in the high season and take winter off,” she said. Trampoline has a range of products typical to the winter season including hot wraps and puddings, and the franchise also promotes the business year-round with various marketing initatives and a social media presence, but according to Chandler summer and winter represent completely different opportunities for franchisees. “We do a fair bit of marketing on Facebook and things like that but in all honesty we tend to quieten down during winter. We do have shopping centre sites that aren’t as seasonal, but it’s about minimising our costs in winter and maximising opportunities in summer. “We’re very upfront about it [to franchisees] because it’s part of our business and we do a lot of work in making sure that we can minimise costs in winter. We do sell gelato through winter – a sunny afternoon in mid-winter still brings people out into the gelato stores, but certainly it’s about minimising costs. The beauty of WWW.FRANCHISE.NET.AU

gelato is that because it’s made on-site and the franchisee can order every week or twice a week, there’s no stock loss, there’s no excess stock, there’s no wastage, most of our staff are casual so there’s no labour costs.” NOV/DEC 2012 FRANCHISING | 47

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WƌŽĨĞƐƐŝŽŶĂů ƐƚŽƌŵǁĂƚĞƌ Ɖŝƚ ďƵŝůĚŝŶŐ ĨƌĂŶĐŚŝƐĞĚ ďƵƐŝŶĞƐƐ ǁŝƚŚŝŶ ƚŚĞ ĐŽŶƐƚƌƵĐͲ ƟŽŶ ŝŶĚƵƐƚƌǇ͘ EŽ ĞǆƉĞƌŝĞŶĐĞ ƌĞƋƵŝƌĞĚ͕ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƚƌĂŝŶŝŶŐ ĂŶĚ ĞīĞĐƟǀĞ ďƵƐŝŶĞƐƐ ůĂƵŶĐŚ ƉƌŽǀŝĚĞĚ͕ ůĞĂĚŝŶŐ ƚŽ ĂŶ ŽƵƚƐƚĂŶĚŝŶŐ ƉƌŽĮƚ ŽƉƉŽƌƚƵŶŝƚǇ ĨŽƌ ǇŽƵ͘

ŽŶĐƌĞƚĞ ƵƩĞƌ

ΨϭϴϬŬ

ΨϯϴŬ

dŚĞ ŵŽĚĞƌŶ ǁŽƌůĚ ŝƐ Ăůů ĂďŽƵƚ ĐŽŶǀĞŶŝĞŶĐĞ͘ /ƌŽŶŝŶŐ ůĨ ƉƌŽǀŝĚĞƐ Ă ƉŝĐŬƵƉ ĂŶĚ ĚĞůŝǀĞƌǇ ŝƌŽŶŝŶŐ ƐĞƌǀŝĐĞ͘ &ƌĂŶĐŚŝƐĞ KǁŶĞƌƐ ĚŽ ŶŽƚ ŝƌŽŶ ƚŚĞŵƐĞůǀĞƐ ďƵƚ ƌĂƚŚĞƌ ŵĂƌŬĞƚ͕ ŵĂŶĂŐĞ͕ ƉŝĐŬ ƵƉ ĂŶĚ ĚĞůŝǀĞƌ͘ ǆĐĞůůĞŶƚ ŶĞǁ ďƵƐŝŶĞƐƐ͘ ŽƉƉŽƌƚƵŶŝƚǇ͘

ΨϯϬŬ

ΨϯϱϬŬн

ΨϯϱŬ

dŚĞ /ƌŽŶŝŶŐ ůĨ

WƌŽWŝƚ ^ĞƌǀŝĐĞƐ

ĂďǇ ĞƋƵŝƉŵĞŶƚ ŚŝƌĞ ĨŽƌ ŽƵƌ ĐƵƐƚŽŵĞƌƐ ŚŽŵĞ Θ ƚƌĂǀĞů ŶĞĞĚƐ͘ ŶǇƚŚŝŶŐ ĂďǇ ŽīĞƌ ƐŚŽƌƚ Θ ůŽŶŐ ƚĞƌŵ ŚŝƌĞ ŽĨ ŚŝŐŚ ƋƵĂůŝƚǇ ďĂďǇ ĞƋƵŝƉŵĞŶƚ ƐĞůĞĐƚĞĚ ĨƌŽŵ ůĞĂĚŝŶŐ ŵĂŶƵĨĂĐƚƵƌĞƌƐ ĂŶĚ ƌĞƚĂŝůĞƌƐ͘ ^ŝŵƉůĞ ƚŽ ůĞĂƌŶ Θ ŽƉĞƌĂƚĞ ǁŽƌŬŝŶŐ ĨƌŽŵ ŚŽŵĞ͘

h< ĞŶƚƌĂů ǆĐŝƟŶŐ ƉƌŽǀĞŶ ƌĞƚĂŝů ƐƚŽƌĞƐ͘ &Ƶůů ƌĂŶŐĞ ŽĨ h< ŝŵƉŽƌƚĞĚ ĨŽŽĚ͕ ĐůŽƚŚŝŶŐ͕ ŵĞŵŽƌĂďŝůŝĂ͕ ďŽŽŬƐ Θ ůĂƵŶĚƌǇ ƉƌŽĚƵĐƚƐ͘ ^ƚƌŽŶŐ ƚƌĂŝŶŝŶŐ ĨƌŽŵ Ă ĐŽŵŵŝƩĞĚ ĨƌĂŶĐŚŝƐŽƌ ǁŝƚŚ ĞǆĐͲ ĞůůĞŶƚ ŽŶŐŽŝŶŐ ƐƵƉƉŽƌƚ͘ DŽĚĞƐƚ ƐĞƚ ƵƉ ĐŽƐƚƐ͕ ǀĞƌǇ ŐŽŽĚ ŝŶĐŽŵĞ͘

Ψ Ŭ

ŶǇƚŚŝŶŐ ĂďǇ

dŚĞ ƵůƟŵĂƚĞ ŝŶĨƵƐŝŽŶ ʹ ƌĞƚĂŝů ĂŶĚ ƚĂŬĞ ĂǁĂǇ ƚĞĂ͘ KƵƌ ƌĞƚĂŝů ƐƚŽƌĞƐ ƐĞůů ƵƉ ƚŽ ϯϬϬ ƚĞĂƐ ĂŶĚ Ă ŚƵŐĞ ƌĂŶŐĞ ŽĨ ƚĞĂǁĂƌĞ͘ dŚĞ ƚĞĂ ĞǆƉƌĞƐƐŽ ĐŽŶĐĞƉƚ ďƌĞǁƐ ŚŽƚ͕ ĨƌĞƐŚ͕ ůŽŽƐĞ ůĞĂĨ ƚĞĂ ŝŶ ƐĞĐŽŶĚƐ͘ dĂŬĞ ĂǁĂǇ ƚĞĂ ʹ ŵĂĚĞ ǁŝƚŚ ƌĞĂů ƚĞĂ͕ ƌĞĂů ĨĂƐƚ͘

ΨϲϱŬ

ĚŽƌĞ dĞĂ

ΨϰϬŬ

ΨϭϮϬŬ

1300 139 557

tŽƌůĚ͛Ɛ ůĂƌŐĞƐƚ ďĞĂƌ ĂŶĚ ƐƚƵĸŶŐ ĨƌĂŶĐŚŝƐĞ͘ 'ƌĞĂƚ ƉĂƌƚͲƟŵĞ ǁŽƌŬ ĨƌŽŵ ŚŽŵĞ ďƵƐŝŶĞƐƐ ĨŽƌ ŵƵŵƐ ƚŽ ĂĚĚ ƚŽ ƚŚĞ ĨĂŵŝůǇ ŝŶĐŽŵĞ Θ ƐƟůů ŚĂǀĞ ƉůĞŶƚǇ ŽĨ ƟŵĞ ĨŽƌ ƚŚĞ ĨĂŵŝůǇ͘ EŽ ǁĞĞŬĞŶĚƐ͘ ϴϬ͕ϬϬϬ ďĞĂƌƐ ƐŽůĚ ůĂƐƚ ǇĞĂƌ͘

^ĞƌŐŝŽƐ ĂŬĞ ^ŚŽƉ ^ǇĚŶĞǇ͛Ɛ WƌĞŵŝĞƌ ĂŬĞ ^ŚŽƉ ĐŚĂŝŶ ŶŽǁ ĂǀĂŝůĂďůĞ ĨŽƌ ĨƌĂŶĐŚŝƐŝŶŐ͘ ǆĐĞƉƟŽŶĂů ƉƌŽĮƚ ŽƉƉŽƌƚƵŶŝƚǇ͘ ^ŝŵƉůĞ ƚŽ ƌƵŶ ǁŝƚŚ Ăůů ƉƌŽĚƵĐƚƐ ĚĞůŝǀĞƌĞĚ ĨƌĞƐŚ ŝŶƚŽ ǇŽƵƌ ƐƚŽƌĞ ƐŽ ŶŽ ďĂŬŝŶŐ ĞǆƉĞƌŝĞŶĐĞ Žƌ ĞƋƵŝƉŵĞŶƚ ƌĞƋƵŝƌĞĚ͘

EŽƚĞ͗ ůů ƉƌŝĐĞƐ ĂƌĞ ĂƉƉƌŽǆŝŵĂƚĞ ĂŶĚ ƐƵďũĞĐƚ ƚŽ ĐŚĂŶŐĞ н ŝŶĚŝĐĂƚĞƐ ƉƌŝĐĞƐ ƐƚĂƌƟŶŐ ĨƌŽŵ

Ψ Ŭ

^ƚƵŋĞƌƐ

ĨƵůůǇ ŵŽďŝůĞ ďĞǀĞƌĂŐĞ ŽŶ ƐŝƚĞ ĐĂƚĞƌŝŶŐ ĨƌĂŶĐŚŝƐĞ͘ WƌŽǀŝĚŝŶŐ ĨƵůů ƐĞƌǀŝĐĞ ďĞǀĞƌĂŐĞ ĐĂƚĞƌŝŶŐ ƚŽ ĂŶǇ ƚǇƉĞ ŽĨ ƉƌŝǀĂƚĞ Žƌ ĐŽƌƉŽƌĂƚĞ ĞǀĞŶƚ͘ &ƵŶ ďƵƐŝŶĞƐƐ͕ ŐƌĞĂƚ ůŝĨĞƐƚǇůĞ ĂŶĚ ƐƚƌŽŶŐ ĮŶĂŶĐŝĂů ƌĞƚƵƌŶƐ͕ ŽŶ Ă ŵŽĚĞƐƚ ŝŶǀĞƐƚŵĞŶƚ͘

ΨϯϬϬŬн

<ƵďĂƌǌ

ΨϱϬŬ

ΨϰϱŬ

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1 EXPERIENCE EX XPE X PERIEENC CE

PREM P MIUM PREMIUM QUALITY QUALLITY AT AT LOW PRICES PRI RICES

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ďŽĚĞ ĞƐŝŐŶ ĂŶĚ ŽŶƐƚƌƵĐƚ &ƌĂŶĐŚŝƐĞƐ ĨŽƌ ĞƐŝŐŶ Θ ŽŶƐƚƌƵĐƟŽŶ͘ &ŽĐƵƐŝŶŐ ŽŶ ƐĂůĞƐ Θ ŵĂŶĂŐĞŵĞŶƚ ƌŽůĞ ǁŝƚŚ ŶŽ ŽŶƐŝƚĞ ůĂďŽƵƌ͘ ^Ƶŝƚ ƐĂůĞƐ ďĂĐŬŐƌŽƵŶĚ ǁŝƚŚ ƐŽŵĞ ďƵŝůĚŝŶŐ ŝŶĚƵƐƚƌǇ͘ &ƌĂŶĐŚŝƐĞ ŽǁŶĞƌƐ ƐƵƉƉŽƌƚĞĚ ďǇ ƐƚƵŶŶŝŶŐ ƵŶŝƋƵĞ ƐŽŌǁĂƌĞ ƐƵŝƚĞ Θ ƐǇƐƚĞŵƐ͘

<ĞĞŶ ƚŽ ůĞĂŶ Ŷ ƚŽ ůĞ

ΨϮϵŬн

ΨϴϬŬн

<͛Ɛ dĂŬĞĂǁĂǇ ŝƐ Ă ƌĞƚĂŝů ĨŽŽĚ ŽƵƚůĞƚ ƐƉĞĐŝĂůŝƐŝŶŐ ŝŶ ŚŽƚ ĂŶĚ ƚĂƐƚǇ ƌĞĂĚǇ ƚŽ ŐŽ ĨŽŽĚ͘ dƌĂĚŝƟŽŶĂů ƵƐƚƌĂůŝĂŶ ĨĂƌĞ͘ >Žǁ ƌĞŶƚ͕ ,ŝŐŚǁĂǇ ůŽĐĂƟŽŶƐ͘ KƵƚƐƚĂŶĚŝŶŐ ƉƌŽǀĞŶ ďƵƐŝŶĞƐƐ ŵŽĚĞů ƌĞƚƵƌŶŝŶŐ ĞǆĐĞůůĞŶƚ ƉƌŽĮƚƐ͘

:ƵŵƉŝŶŐ :Ͳ:ĂǇƐ

DĂƌƌƐ

/ŶŇĂƚĂďůĞ ŵƵƐĞŵĞŶƚƐ ĂƌĞ Ă ƐƚĂƉůĞ ŝƚĞŵ ŽĨ ĂŶǇ ƉĂƌƚǇ Žƌ ĞǀĞŶƚ͘ tŽƌŬŝŶŐ ϯ ĚĂǇƐ Ă ǁĞĞŬ ƚŚŝƐ ŝƐ ĂŶ ŝĚĞĂů ďƵƐŝŶĞƐƐ ĨŽƌ Ă ŚƵƐďĂŶĚ Θ ǁŝĨĞ ƚŽ ďŽŽƐƚ ƚŚĞŝƌ ŚŽƵƐĞŚŽůĚ ŝŶĐŽŵĞ ďǇ ŽǀĞƌ Ψϰϲ<͖ ƉĂƌƚ ƟŵĞ ĂƌŽƵŶĚ ƚŚĞ ĨĂŵŝůǇ Θ ǇŽƵƌ ĚĂǇ ũŽďƐ͘

tŝƚŚ ϯϮ ǇĞĂƌƐ ŝŶ ƚŚĞ ǁŝŶĚŽǁ ĨƵƌŶŝƐŚŝŶŐ ŝŶĚƵƐƚƌǇ DĂƌƌƐ͕ ĂŶ ŝŶĚƵƐƚƌǇ ůĞĂĚĞƌ͕ ŝƐ ŶŽǁ ŽīĞƌŝŶŐ ƵŶŝƋƵĞ &ƌĂŶĐŚŝƐĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ƚŽ ůŝŬĞͲŵŝŶĚĞĚ ƉŽƚĞŶƟĂů ĨƌĂŶĐŚŝƐĞ ŽǁŶĞƌƐ ůŽŽŬŝŶŐ ĨŽƌ ŐƌĞĂƚ ůŝĨĞƐƚǇůĞ ĂŶĚ ŝŶĐŽŵĞ ŽƉƉŽƌƚƵŶŝƟĞƐ͘

ǁĂƌĚ ŽŽŬĞĞƉŝŶŐ

>ŝƩůĞ /ŵĂŐĞƐ

dŚĞ ǁĂƌĚ ŽŽŬŬĞĞƉŝŶŐ ŽŵƉĂŶǇ ŝƐ ŽŶĞ ŽĨ ƵƐƚƌĂůŝĂ͛Ɛ ŵŽƐƚ ĞǆĐŝƟŶŐ Θ ĨĂƐƚĞƐƚ ŐƌŽǁŝŶŐ ŶĞƚǁŽƌŬ ŽĨ ďŽŽŬŬĞĞƉĞƌƐ͘ ƉƌŽǀŝĚĞ ĨƵůů ƚĞĐŚŶŝĐĂů Θ ŵĂƌŬĞƟŶŐ ƐƵƉƉŽƌƚ ƚŽ ŽƵƌ ĨƌĂŶĐŚŝƐĞĞƐ͘

ǆƉĞƌƚƐ ŝŶ ŚŝůĚ ĂƌĞ͕ ^ĐŚŽŽů ƉŚŽƚŽŐƌĂƉŚǇ ĂŶĚ ǀĞŶƚ ƉŚŽƚŽŐƌĂƉŚƐ͘ /Ĩ ǇŽƵ Ă ƉŚŽƚŽŐƌĂƉŚĞƌ ;ŚŽďďǇͿ ǁĞ ǁŽƵůĚ ůŝŬĞ ƚŽ ŚĞůƉ ƚŽ ƚƵƌŶ ǇŽƵƌ ƉĂƐƐŝŽŶ ĨŽƌ ŝŶƚŽ Ă ŐƌĞĂƚ ďƵƐŝŶĞƐƐ͘ tĞ ŚĂǀĞ ŵŽƌĞ ǁŽƌŬ ƚŚĂŶ ǁĞ ĐĂŶ ŚĂŶĚůĞ͘

ŽŵĞƐƟĐ͕ ŽŵŵĞƌĐŝĂů͕ Θ ĂƌƉĞƚ ŵĞƐƟ ĐůĞĂŶĞƌƐ ƐŝŶĐĞ ϮϬϬϯ͘ ŝīĞƌĞŶƚ ŝŶǀĞƐƚŵĞŶƚ ůĞǀĞůƐ ƚŽ ƐƵŝƚ ĞǀĞƌǇŽŶĞ͘ 'ƵĂƌĂŶƚĞĞĚ /ŶĐŽŵĞ͘ <ĞĞŶ ƚŽ ůĞĂŶ ǁĞƌĞ >ŝƐƚĞĚ dŽƉ ϱ Zt ĨĂƐƚĞƐƚ ŐƌŽǁŝŶŐ ĨƌĂŶĐŚŝƐĞ ĂŶĚ Zt ĨĂƐƚ ƐƚĂƌƚĞƌƐ ϮϬϭϮ͘

^ŶŽƌĞƉƌŽ

ΨϰϰŬ

dĂƐƚĞ ŽĨ ƵƌŽƉĞ Ͳ ƵƌŽƉĞĂŶ ĂŬĞƌǇ͕ WĂƟƐƐĞƌŝĞ ĂŶĚ ĂĨĞ͘ ƵƐƚƌĂůŝĂŶ ŽǁŶĞĚ͕ ƐŝŵƉůĞ ǇĞƚ ƌĞǁĂƌĚŝŶŐ ĨƌĂŶĐŚŝƐĞ ŽƉƉŽƌƚƵŶŝƚǇ͘ ƌƟƐĂŶ ďƌĞĂĚƐ ĂŶĚ ƉĂƐƚƌŝĞƐ ďĂŬĞĚ ĚĂŝůǇ ŽŶ ƐŝƚĞ͕ ǇĞƚ ŶŽ ďĂŬŝŶŐ ĞǆƉĞƌŝĞŶĐĞ ƌĞƋƵŝƌĞĚ͘ ŶƋƵŝƌĞ ŶŽǁ͊

ΨϭϱϬŬн

hƌďĂŶ ƵƌŐĞƌ ŝƐ ĂŶ ĞǆĐŝƟŶŐ ĨĂŵŝůǇ ďƌĂŶĚ ǁŝƚŚ ƉƌŽĚƵĐƚƐ ƚŚĂƚ ĂƌĞ ƵŶŝƋƵĞ͕ ĨƌĞƐŚ ĂŶĚ ĚĞůŝĐŝŽƵƐ͘ hƌďĂŶ ƵƌŐĞƌ ŝƐ ĨĂŵŽƵƐ ĨŽƌ ŝƚƐ ŐŽƵƌŵĞƚ ďƵƌŐĞƌƐ͘ ǆƉĂŶĚŝŶŐ ƐĞĐƚŽƌ ƐƵŝƚ ƐĞƌǀŝĐĞ ŽƌŝĞŶƚĂƚĞĚ ĨƌĂŶĐŚŝƐĞ ŽǁŶĞƌƐ͘

ΨϮϮϬŬн

dĂƐƚĞ ŽĨ ƵƌŽƉĞ

hƌďĂŶ ƵƌŐĞƌ

ΨϮϱŬ

ΨϮϮϬŬн

<͛Ɛ dĂŬĞĂǁĂǇ

ΨϯϰŬ

ŽĨ Ă͕ ŶŐ

ΨϱϱŬ

ΨϯϱŬ

ΨϭϲϱŬн

>Ğƚ ƵƐ ĐŽŵƉůĞƚĞ ƚŚĞ ŶĞǆƚ ƉŝĞĐĞ ŽĨ ǇŽƵƌ ƉƵǌǌůĞ͘͘͘ > ƵƐ >Ğƚ ƵƐ >Ğƚ ƵƐ Ɛ ĐŽŵ Ɛ ĐĐŽ ŽŵƉůĞ ŽŵƉůĞƚĞ ĞƚĞ ƚŚĞ ŶĞǆ ƚŚĞ ŶĞ Ğǆ Ğǆƚ ǆƚ ǆƚ ƉŝĞĐĞ Ž ƉŝĞĐĞ Ğ ŽĨ Ğ ŽĨ Ǉ ŽĨ ǇŽ ŽƵƌ Ƶƌ ƉƵ ƉƵǌǌ Ƶǌǌ ǌǌůĞ͘͘͘

^ŶŽƌĞƉƌŽ͕ Ă ƐŶŽƌĞ ƌĞůŝĞĨ ĚĞǀŝĐĞ ƚŽ ƐƚŽƉ ƐŶŽƌŝŶŐ ĂŶĚ ĂůůŽǁ ǇŽƵƌ ĐůŝĞŶƚƐ ŚĂǀĞ ƚŚĞ ďĞƐƚ ŶŝŐŚƚ ƐůĞĞƉ͊ Ŷ ŽƵƚƐƚĂŶĚŝŶŐ ĂŶĚ ƉƌŽǀĞŶ ƉƌŽĚƵĐƚ ŽǀĞƌ ŵĂŶǇ ǇĞĂƌƐ ŝŶ EĞǁ ĞĂůĂŶĚ͘ DĂƐƚĞƌ ĂŶĚ /ŶĚŝǀŝĚƵĂů ĂƌĞ &ƌĂŶĐŚŝƐĞƐ ǀĂŝůĂďůĞ͘

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HEARTS AND

When you invest in a beauty franchise you’ll need to bring passion to the business, as these franchisors and franchisees reveal

MINDS W

ho doesn’t want to be passionate about what they do day in, day out? It makes the inevitable hard slog and challenges of running a small business worthwhile if you’re driven by a passion for your business, as entrepreneur Richard Branson has noted: “if you’re doing things you’re passionate

about, the hard work will come naturally”. In a service sector like the beauty salon industry enthusiasm is a fundamental tool for good business. Pippa Hallas, Ella Bache CEO is a firm believer in passion. “Our business in particular is such an emotional business, such an emotional experience you are

Emotional experiences are core to the beauty business Image: Endota 50| FRANCHISING NOV/DEC 2012

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giving to clients. We constantly get feedback about there being so much passion in the brand.” Essential Beauty franchisor Tony Maiello believes passion is everything. “Passion is the difference between winning and losing. Passion within franchising creates what we call at Essential Beauty ‘intrepreneurship’, which means succeeding as an entrepreneur within in a franchise structure. “We love “intrepreneurs” at Essential Beauty because they show passion to make things happen on behalf of their customers, themselves and the franchise.” Maiello says an ideal franchisee has people management skills. “We look for a person who has a proven ability to lead teams of people within the franchise structure.” Essential Beauty provides initial training and ongoing business support with representatives in each state. There are also daily updates about improvements within the essential beauty system. Ella Bache’s franchisees need

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a passion for what they are doing in terms of people and the service they provide - a customer service focus, says Pippa Hallas, who reveals that passion was the theme of the recent annual convention. Franchisees also need to be enthusiastic about the brand itself. “Once you get in the system and learn more about the brand and the system, then you get a deeper connection. Franchisees takes ownership of this brand, they really become part of a family,” she says. “Passionate salon owners, once they lose their passion, their performance drops,” observes Hallas. There’s no doubt that though the business might stack up in financial terms, it’s passion that drives it, and that’s what the franchisor is looking for. “If someone is trying to analyse it all through the spreadsheets, we know they’re not right,” says Hallas.

Consequently, those successful applicants who set up their own Ella Bache business may come to the operation under-skilled in crucial areas such as finance. That’s where the support of the franchisor comes to play. “We provide support, we go in and do an audit on their skills, perhaps they’ve been a therapist but never managed a team. We upskill, we have HR templates, we help them. We can go in and hire people, performance manage staff, team build; if they need technical support, we have a technical team.” And there’s a high level of face to face advice through regular visits from business

development managers who see franchisees once a week. For the right, passionate applicant, it isn’t even

essential to be a beauty therapist when they invest – Ella Bache has a Registered Training Organisation college

Passion is a must for Ella Bache franchisees

Passion is the difference between winning and losing. Passion within franchising creates what we call at Essential Beauty ‘intrepreneurship’, which means succeeding as an entrepreneur within in a franchise structure

Jody D’Angelo, Endota Spa franchisee: West Lakes and Glenelg “I think any business you are involved with you need to have passion to be able to be successful. It is a huge commitment both financially and time wise, so you need to make sure you love what you do to get the best results. “Bringing passion to my business on a daily basis is easy because I love the brand and what we stand for. Our products, treatments and overall brand message is strong and the staff we employ truly believe in what we are trying to achieve for our clients. “We try to live this every day, and to constantly improve. We are always looking at ways to improve our client experience and move forward in what we provide in terms of customer service, value for money, and overall experience. “We see this returned to us on a daily basis, as our clients appreciate us being engaged in what we do and what we bring to them so it is very satisfying. “Being an endota franchisee has many benefits. We are working with a great group of business owners who are like minded, hard working and have passion for the brand. “We are always available to support each other and it is great to have that network available. Endota as a franchisor also provides ongoing support.

“They are committed to keeping ahead of trends in the health and beauty industry and always bring us new and exciting products, treatments and training. “This enables us to keep our business fresh and provide new options for our clients. “Being part of a franchise also allows us greater impact when marketing and getting our brand known.”

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link that allows non-qualified franchisees to get a diploma through distance learning.

The salon profile

Pippa Hallas, Ella Bache CEO

While the salons are exclusively Ella Bache in terms of services and products offered, they are not identical; there is an element of tailoring the menu of services or treatment list according to location. The fast paced metro salons for instance might offer shorter treatments and different price points to the suburban franchises. There’s some variety too in the salon sites. “There’s a footprint that works, but we tailor it

based on the location. We’ve been quite diverse in where we put our salons.” Some salon owners can work the high rent, high traffic sites, while others prefer a suburban strip location and customer profile. “We have about 180 salons and our mission is to open 10 to 12 a year, in a mixture of locations.” In late October two new sites were scheduled for opening, in Kalgoorlie and Newcastle. “We’re growing and expanding, trying to expand at a conservative rate, so we have resources for our salon owners.” F

PASSION AND INNOVATION

Fiona Sarazen, Essential Beauty franchisee removal and rejuvenation. It’s all about “I think passion as a franchisee is very technology and being tanned. important. You have to definitely enjoy “I got into franchising because I was and like the business you are in. looking for a challenge and the kids “For me it’s the innovation of beauty were older. It’s a service industry, a great and how it changes that interests me, like industry because people can’t do it at medicine it’s always trying to better itself. home. “Innovation can bring in new “I’m master franchisee for ACT and customers and we’re always looking NSW with my husband Peter and we’re to do things better with our existing looking for franchisees for the area. customers. If a treatment is superseded, “We owned three stores in Melbourne we run with the latest treatment. and had the opportunity to relocate. I’ve “Tony Maiello , the franchisor, got five stores with a winter staff of 25 sells innovation and we start trialling that increases in summer. treatments and products to see if “As a franchisee you’ve got to be “For me the passion is about something does work. You need to do passionate but you can be passionate business. For staff, the therapists, it’s this to be sure you can offer an effective about the business. I love the business how to be passionate about the work. service. concept, the model works. I’m hands on I’ve got to keep clients happy so if a “I’ve been with the franchise five A D _and F Rthe SM I M A Yoffered _ 1 2 are . pnow df P atherapist g e 1 is not 2 8 passionate / 0 3 / 1 they 2 , won’t 1 0 : 1 5 –Ayou M have to be to get it running well years, services yourself.” get a job with me. vast. We’re moving into weight loss, hair

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Join Australia’s #1 franchise At Hairhouse Warehouse, we’re all about serious growth. Not only were we named ‘FCA Established Franchisor of the Year 2011’ but we’ve been listed in BRW’s ‘Fastest Growing Franchises’ 6 years in a row. In fact, our complete list of business awards wouldn’t fit on one page. And as all our current franchisees know, our support team’s expertise will help you keep customers coming through the door. No wonder Hairhouse Warehouse is Australia’s fastest growing brand in the haircare and beauty industry. New stores available across Australia

Call Dean on 0451 370 060

or email franchising@hairhousewarehouse.com.au

WINNER

Franchisor of the year 2011

WINNER

Most Successful Private Business of 2011

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MAKE THE

NUMBERS WORK FOR YOU If you’ve got a head for numbers, why not pursue a career in financial services? With the right brand behind you, it could be easier than you think

mall business owners are the ultimate multi-taskers, Jacks and Jills of all trades, but increasingly they need more professional help when it comes to different aspects of their business, whether that’s marketing, cashflow or accounts. Professional financial services relieves some of the burden of small business, whether that’s through raising finance or getting help with the bookwork. Joining the bands of accountants or finance support providers could help other small businesses and give you the means to business ownership.

First Class Accounts

When it comes to accounting, the 12 year old business First Class Accounts offers a comprehensive suite of services that includes bookkeeping, management reporting, compliant statutory returns, accounting and software setup, cash flow and debt management. So where is the growth coming from in the accounting services? According to Mike Fisher, 54| FRANCHISING NOV/DEC 2012

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chief operating officer of First Class Financial Group, the franchisor behind the First Class Accounts business, it’s clear cut: BAS. “A key driver for small business is the need for accurate BAS reporting, there’s considerable onus on proprietors to submit, code expenses and in this regard, small businesses appreciate the need for a bookkeeper. The pressures of business create friction,” says Fisher. The current ad campaign reflects this with the tagline ‘Give us your books and we’ll give you back your life’. Fisher points out that according to the Association of Accounting Technicians, there are just 17,000 BAS agents registered in Australia, though there are about 40,000 independent bookkeepers. “As our people are registered, or work under our supervision, it gives them an edge in the marketplace and gives them an entry into businesses.” In the current economic climate in which bank credit is not always forthcoming,

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it’s particularly important for small businesses to understand and manage their cashflow, Fisher says. “The first challenge for small business owners is to recognise the need and benefit of getting deeper financial information about performance. If you think of a tradie, their utes might be littered with dockets, maybe they don’t invoice on time. Small business owners often don’t understand their cost base, the fixed and variable costs, and in tough times they will quote for cashflow not profit.” Bookkeepers today need to be confident in providing accurate data, cash flow and forecasting, planning and budgeting he says, and this raises the level of service and calibre of person required to do the job. However, franchisees in the system don’t have to be practicing accountants or bookkeepers. Numeracy, computer literacy, a meticulous and fastidious nature, the desire to help small business, and a proactive attitude matched to an aptitude for learning: these are the key AD_ F RF CBNOV _ 1 2 . p d f attributes the franchisor is looking for in P new franchise recruits.

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New franchisees are coming from a variety of backgrounds, including corporate employees and small business owners. Forty-two franchisees have been signed up in the past 15 months, making the network about 160-strong. Seven weeks’ training, both face to face and through distance learning, provides the basis for a franchisee to set up in business. The franchisor will help any franchisees work towards a Certificate IV in Financial Services and gain accreditation to provide BAS services. And franchisees are not left to start up

Help with accounts can assist small business owners

The first challenge for small business owners is to recognise the need and benefit of getting deeper financial information about performance. Small business owners often don’t understand their cost base, the fixed and variable costs, and in tough times they will a ge 1 2 / 1 0 / 1 2 , 4 : 3 5 PM quote for cashflow not profit

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their businesses by themselves; a buddy system links mentors with fledgling franchisees in the early stages. Franchisees need to keep up to date with changing legislation and one of the benefits of a supportive network, Fisher says, is the opportunity for the franchisee to lean on the franchisor’s knowledge and resources. “When there is a change in award rates or fuel tax for instance, we notify them. They very often find themselves with a client, not sure whether a ruling applies, and they can get online and access a forum, chat to other franchisees, to find out more.”

Jump into bed with Bedshed

Fifo Capital

Neil McMillan is Fifo Capital Financial Services Australia master franchisee and director. “We are involved in invoice finance. If a business needs to cash in an invoice, they sell it to us, we give them 80 percent up front and when the invoice is

Franchise opportunities now available.

FINANCIAL SERVICES FRANCHISES

Are you looking for a franchise opportunity that offers independence combined with support from an experienced management team and a business formula that has proven successful time and time again? Over the last 30 years, Bedshed has established itself as one of Australia’s most successful and profitable specialist bedding retailers, with a network of 40 stores nationally.

empted by the prospect of helping small businesses while growing your own? Here’s a snapshot of other opportunities in the field: Award Bookkeeping Company Franchisees should have Certificate IV in financial services bookkeeping. There is initial training and an eight week implementation strategy including marketing initiatives. There are no territories granted so franchisees can take referrals from, and operate their business, anywhere in Australia. www.awardbookkeeping.com.au

bedshed.com.au

56| FRANCHISING NOV/DEC 2012

BED19420

Bedshed franchisee partners enjoy a host of benefits, including: • Excellent income and capital appreciation potential. • A national advertising and marketing program. • Ongoing support and training from an experienced management team. • Input into selecting Bedshed’s best-selling range of leading brands and exclusive products. • And most importantly, the flexibility to choose your desired lifestyle. Please contact our Business Development Manager, Rod Parker on 0419 494 480 or rparker@bedshed.com.au for a confidential discussion

paid, we keep a portion for admin costs and return the remainder to the client.” The clients are sourced through referrals from bank managers and accountants and for franchisees it’s important to develop these relationships to build the business. “We are seeing a huge demand, we’re up by more than 200 percent,” says McMillan. On average, 10 to 12 franchisees are signed up to the network annually, and after a week’s training program in Melbourne they embark on a three month coaching program using the internet phone program Skype. There’s on-hand support too in the initial stages of their business development, with a manager appointed to show them the ropes. McMillan is very clear about the sort of franchisee he needs in the network; people who are good communicators and business savvy. “I can teach them

Small Business Accounting This retail based network began in New Zealand, where there are 42 units; there are seven in Australia, and more in the pipeline. The focus is on taking accountants from the industry and turning them into tax agents. Franchisees should be members of a recognised professional accounting body, or have extensive accounts experience. Computer literacy and a customer focus are important. www.sbaaccounting.com.au

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Stratton Finance This finance and insurance brokerage has seen aggressive growth in its car financing. Franchisees must have initiative and drive, and bring experience in motor dealerships or automotive financing; they need a credit licence but this can be gained once in the system. www.strattonfinance.com.au Tax Smart Accountants In order to offer the suite of services with this national network of office based accountants franchisees should be a member, or gaining membership, of a professional accounting body. There are two weeks training, online manuals, and national marketing support. Territories are exclusive. www.taxsmart.com.au The Interface Financial Group An international business of more than 140 offices, this franchise system provides short-term working capital to small business owners through invoice discounting. Franchisees come from a wide variety of backgrounds but need to be good communicators with a strong business background. www.interfacefinancial.com.au

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If a business needs to cash in an invoice, they sell it to us, we give them 80 percent up front and when the invoice is paid, we keep a portion for admin costs and return the remainder to the client and there are more people being all the mechanical stuff,” he says, made redundant who have cash “But they need to be able to build to start up their own business,” he relationships, and they need to be explains. able to spot a dud.” It’s a competitive market Clients tend to be repeat however, with banking institutions customers over seven to nine themselves involved in invoice months, cashing in invoices finance. So what’s the differential between $40,000 and $60,000 that brings in business to Fifo monthly. Capital franchisees? “Most of our clients are in a McMillan believes the key rapid growth phase, about 90 difference is the freedom clients percent of them,” says McMillan. have to come and go. “We’re more “Banks have clamped down on and clients lending and with property lending A D _ F R O V E M A R _ 1 2 . p d f flexible Pa g e we 1 don’t 7 / tie 0 2 / 1 2into , 9 : 5 2 AM A proactive attitude is a good franchisee attribute long term contracts,” he says. F following, the equity isn’t there,

Simple, Flexible and Profitable Business

• Full training and support from largest oven cleaning and detailing company in the world • Flexible hours and easy to operate • Very low overheads and highly profitable • Additional Income Streams - Enduroshield Licence and Training included • $39,000 plus gst

“I’d definitely recommend Ovenu to any potential franchisees. It’s a great business with massive potential. There is a great work/life balance and it puts you in control of your own destiny.” “There is a fixed fee so you know exactly what your outlay is, everything you need to start trading is included in the franchise fee - all you need to purchase is your Ovenu van. The franchise model is very simple; it’s great for those who want to take control of their life as you get back what you put in.” Matt Chambers, NSW State Director

1300 683 682 www.ovenufranchise.com.au www.ovenu.com.au

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UNLOCK THE POTENTIAL OF

REAL ESTATE What does it take to achieve success as a real estate franchisee? Domini Stuart reports

he world of real estate is changing – and fast. “The majority of property searches now happen online via a computer or mobile device,” says Georg Chmiel, CEO of LJ Hooker. “And, in just one year, the number of LJ Hooker offices actively using Facebook has soared from five percent to 55 percent. In fact, many offices now re-

ceive more web traffic from Facebook than from traditional real estate portals.” It may not be a coincidence that a growing number of would-be franchisees are in their 20s or 30s. “Most are technology-savvy and many have tertiary qualifications,” says Angus Raine, CEO of Raine & Horne. “We’re also seeing a move towards franchisees WWW.FRANCHISE.NET.AU

opening up more than one office or employing 20 or more staff.” People who are looking for flexibility in their career – particularly women with families – are also starting to see real estate as a viable option. “Most of our franchisees work from home,” says Cameron Fisher, managing director of Changing Places. “Some are NOV/DEC 2012 FRANCHISING | 59

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working on their own, full or part time, while others prefer to work with their partner, a family member or a friend.” Commissions have also been changing, and it was this that inspired Fisher to start his own business after 30 years in the industry. “House values have virtually doubled in the last seven years and so, effectively, have agents’ fees,” he says. “I believed that commissions would come down and thought it best to lead the way, so I set out to develop a commission structure that would achieve three things – savings for the vendor, the same or a higher

income for the agents and enough profit to create a sustainable business model. “I achieved that by centralising all of our administration, which reduces costs dramatically. It also enables us to take the $2030 an hour tasks away from our franchisees so they can focus on the ones that make good money – face to face appointments for listing and selling real estate.”

Getting to know the business So what does it take to become a successful real estate agent? According to Leanne Pilkington,

It is possible to open an agency with no experience, though I would never recommend it; it’s one of those businesses that looks very different AD_ F RGRE S E P _ 1 2 . p d f Pa ge 1 6 / 0 8 / 1 2 , when you’re on the inside

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LAING+SIMMONS Laing+Simmons started franchising in 1980 and now has 42 franchisees, predominantly in the Sydney metro area. A new owner, the Independent Property Group, has plans to expand. There is no upfront fee; franchisees pay a six percent fee on gross sales income and a one percent marketing levy. “Laing+Simmons now offers both a traditional franchise model and a partnership model – a partnership between the corporate office and the franchisee where they are shareholders in eachothers businesses,” says Leanne Pilkington. “This is an ideal opportunity for people who want to be part of something bigger, and for people who feel they need the expertise and back-end support they can 1 1 : 0 4 AM get from a bigger organisation.”

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Design your own future with Worldwide. Imagine owning a Design and Printing business with a clever mix of the latest technical, marketing and training resources, combined with the strength of more than 15 years experience in the business. As a franchise owner you focus on clever ways of creating new sales, providing top quality service to your clients and building a powerful team - leaving the printing to the experts. With more than 50 Worldwide Design and Print Centres nationally, we are now undertaking the next phase of our national expansion program. Set yourself apart from the crowd. To ďŹ nd out more about this exciting business opportunity, simply visit us at www.worldwide.com.au/franchise

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RAINE & HORNE Established in 1883, Raine & Horne started franchising in 1976 and now has hundreds of offices Australia-wide and overseas. There is zero cost of entry but applicants must have a proven track record in an agency. â&#x20AC;&#x153;Each Raine & Horne office is visited regularly by field support staff and receives periodic business reviews to help drive profitability while regional meetings help facilitate communication between offices and maximise the benefits of the network,â&#x20AC;? says Angus Raine. â&#x20AC;&#x153;Our application suite is an allencompassing interactive solution incorporating all aspects of real estate technology. We also have a suite of products and services designed to help franchise offices generate sales and property A D _ F R A B R N O V _management 1 2 . p d f leads.â&#x20AC;? Pa ge

s 4HERE ARE MORE CARS STAYING ON THE ROAD LONGER THAN EVER BEFORE 4HIS RETAIL MARKET IS GROWING AND PROSPERING AND !UTOBARN IS EXPANDING TO MEET THIS GROWING DEMAND s !UTOBARN IS THE PREMIUM RETAIL BRAND OF THE !UTOMOTIVE "RANDS 'ROUP WHICH IN TURN IS A PART OF THE -ETCASH GROUP )'! -ITRE 4HIS GIVES !UTOBARN HUGE BUYING POWER ADVANTAGES s !UTOBARN S MARKETING AND ADVERTISING IS DIVERSE PROMINENT HIGH QUALITY AND FREQUENT WHICH MAKES THE BRAND AND ITS PRODUCTS TOP OF MIND TO THE CONSUMER s )N ADDITION TO AN WEEK TRAINING AND INITIAL SUPPORT PROGRAM !UTOBARN PROVIDES A SOPHISTICATED FRANCHISE SUPPORT SYSTEM TO DIRECTLY HELP ITS FRANCHISEES ACROSS ALL MANAGEMENT AND OPERATIONAL DISCIPLINES 4HIS INCLUDES PRODUCT BUYING BOOK KEEPING MERCHANDISING AND ,OCAL !REA -ARKETING 4HE !UTOBARN

general manager of Laing+Simmons, more than many people realise. â&#x20AC;&#x153;We are often approached by people who think â&#x20AC;&#x2DC;I like people and I like houses so Iâ&#x20AC;&#x2122;d make a great real estate agentâ&#x20AC;&#x2122;,â&#x20AC;? she says. â&#x20AC;&#x153;Or theyâ&#x20AC;&#x2122;ve bought a house, seen what the agent did and think they can do a better job. But itâ&#x20AC;&#x2122;s really not that simple. â&#x20AC;&#x153;It is possible to open an agency with no experience, though I would never recommend it; itâ&#x20AC;&#x2122;s one of those businesses that looks very different when youâ&#x20AC;&#x2122;re on the inside. I suggest getting a certificate of registration, which can take less than a week, so youâ&#x20AC;&#x2122;re qualified

I set out to develop a commission structure that would achieve three things â&#x20AC;&#x201C; savings for the vendor, the same or a higher income for the agents and enough profit to 1 1 1 / a 1 0sustainable / 1 2 , 1 2 : 3 3business PM create model

&RANCHISE SYSTEM ACTUALLY DELIVERS OPERATIONAL PROCEDURES FOR ITS FRANCHISEES WHICH THE TYPICAL SMALL BUSINESS PERSON WOULD HIGHLY VALUE 4HIS ALLOWS OUR FRANCHISEES TO CONCENTRATE ON WORKING ON THEIR BUSINESS NOT JUST IN THEIR BUSINESS s !UTOBARN IS MOVING WITH THE TIMES ROLLING OUT EXCITING TECHNOLOGICAL DEVELOPMENTS IN HOW WE SELL TO AND COMMUNICATE WITH OUR CUSTOMERS s !N !UTOBARN FRANCHISE IS MORE AFFORDABLE THAN YOU MAY THINK !S AN ACCREDITED FRANCHISE WITH .ATIONAL !USTRALIA "ANK AND "ANK7EST !UTOBARN APPROVED APPLICANTS CAN SECURE A SUBSTANTIAL AMOUNT OF THE TOTAL FUNDING REQUIRED AGAINST THE BUSINESSES ASSETS AND THERE ARE GENEROUS STOCK FUNDING INCENTIVES CURRENTLY AVAILABLE FOR APPROVED APPLICANTS

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For further information call 1300 550 155 or visit our web site www.franchise.autobarn.com.au 62| FRANCHISING NOV/DEC 2012

to act as a property manager or a sales person. That way you can spend some time working in an office to see if it really is right for you.â&#x20AC;? If you decide to go ahead, you can study for a full real estate license full time, part time and online. LJ Hooker also offers licensing through one of its subsidiaries, Property Training Solutions. Another way to join a franchise is to rebrand an existing business â&#x20AC;&#x201C; straightforward on a practical level, though Fisher believes there can be such a thing as too much experience. â&#x20AC;&#x153;Some people who have been

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CHANGING PLACES

Franchise.net.au is now mobile

Changing Places started franchising in 2003 and now has 30 franchisees around Australia. The entry fee is $18,000 + GST. “One really important difference is that our people have the protection of being able to list and sell in their own area,” says Cameron Fisher. “In most agencies you don’t get the commission unless you make the sale and, as there could be 10 or 15 agents pitched against each other, you can get a dog-eat-dog mentality. I’ve worked in places where there has been a commission dispute every day; we haven’t had a single dispute in nine years.”

working in a very different model might find it hard to let that go and start doing things in a different way,” he says.

Keys to success

Available on PC, tablet and mobile! Australia s most comprehensive and credible guide to bu ing a ranchise 64| FRANCHISING NOV/DEC 2012

Demographics can vary enormously, often from suburb to suburb. You’re most likely to succeed when you’re working in an area you know and where you feel comfortable. “We like all of our franchisees to have strong ties to the community, including local sponsorship and market knowledge,” says Raine. And, while real estate can be very lucrative, it generally takes a while for the income to build. “Even if you got your first listing and sold the property on the day that you opened your doors, which is highly unlikely, you wouldn’t get any income until settlement two or three months later,” says Pilkington. “Unless you’re already an established agent you should have the financial resources

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We like all of our franchisees to have strong ties to the community, including local sponsorship and market knowledge. And, while real estate can be very lucrative, it generally takes a while for the income to build to run your business for 12 months without having too much money coming in.” As with any other concern, success grows out of enthusiasm, passion and a willingness to work hard. “You must be self-motivated – willing to get out there and talk to people, to be enthusiastic,” says Fisher. “Most of all, you must really love real estate.” It will also pay to research all of the available alternatives. “Different brands work for different people,” says Pilkington. “It takes time and research to find the one which will work best for you.” F

LJ HOOKER

When LJ Hooker started franchising in 1967 it was the first Australian real estate company to do so; there are now over 700 offices across Australasia. “We believe that dedication to self-improvement is fundamental to success,” says Georg Chmiel. “That’s why we’ve made a strong commitment to ensuring every team member is offered a clear path towards personal and professional achievement. “At the LJ Hooker Institute, our franchisees can gain formal qualifications in real estate licensing and business management and also a full range of skills to help them succeed in our profession. We also have a strong focus on developing sales and marketing tools that will help franchisees – and their customers – to stay one step ahead in terms of technology.”

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Capital required - 220K - 410K Number of outlets - 13+ Opportunities available - nationally

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TAKE THE

With summer on our doorstep there’s plenty to get excited about, and a new business opportunity in the pool care industry could be one of them

PLUNGE T

he pool care industry is about more than just testing water samples and selling pumps. Depending on which system you choose, as a pool care franchisee you might have to juggle an in-store presence – where you will not only be required to perform pool tests and answer questions as varied as ‘why is my pool green?’ to ‘which pool toys will my kids beg for this summer?’ – but you may also have to actually design new pools while also operating a mobile arm of the business, visiting homes and solving customers’ pool care problems hands on, year-round. Here are a selection of opportunities for you, should you want to test the waters.

Clark Rubber

JEFF POYSER, NETWORK DEVELOPMENT MANAGER TELL US ABOUT THE FRANCHISE? Clark Rubber is a national brand with a 65 year history. We see ourselves as leaders in the foam, rubber and above ground swimming pool retail market. Our extensive range of pools, pool chemicals, pool equipment, 68| FRANCHISING NOV/DEC 2012

accessories and spare parts combined with our Onsite Pool Care services make us a one-stop pool shop.

HOW MANY OUTLETS ARE THERE IN AUSTRALIA? There are 77 Clark Rubber stores and one Clark Pools and Spas store. WHAT ARE YOUR EXPANSION PLANS FOR THE NEXT 12 MONTHS? Four to five new stores. WHAT DO YOU LOOK FOR IN A FRANCHISEE? Our number one concern is that all franchisees have the right attitude, because we can teach them the rest. DO FRANCHISEES NEED INDUSTRY KNOWLEDGE OR EXPERIENCE? Experience always helps but it is not a requirement. And again if they have the right attitude we can teach them what they need to know.

WWW.FRANCHISE.NET.AU

DESCRIBE THE TRAINING PROGRAM FOR NEW AND EXISTING FRANCHISEES Key areas in which we provide initial and ongoing support are in retailing, administration, marketing, IT, training and business growth. We have created and continue to develop a franchisee support system that not only gives our franchisees the knowledge and skills they need but also ensures they have the tangible business tools needed to help them run their business. Combined, this gives our franchisees a platform that enables them to build their own successful business. WHAT DO YOU DO TO DRIVE SALES IN THE COLDER MONTHS? The pool part of our business is seasonal, but the advantage a Clark Rubber franchisee has is that the foam and rubber component of our business is quite steady throughout the year.

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WHAT ARE THE INVESTMENT COSTS FOR NEW FRANCHISEES? $450,000 - $500,000 depending on the size of the store and other factors.

Narellan Pools franchisees are committed to operating service-oriented businesses

WHAT LOCAL AREA MARKETING INITIATIVES DO YOU ENGAGE IN? Our franchisees spend a certain percentage specifically on local area marketing. This could be in the form of catalogues, mailouts, sales, sponsorships or many other things. We work with each individual franchisee to develop a local area marketing program specific to their business.

Narellan Pools CHRIS MEYER, MANAGING DIRECTOR

TELL US ABOUT THE FRANCHISE? Over the past 40 years we’ve grown from a small family business in Sydney to become a successful global company. For 40 years Narellan Pools has been recognised as the benchmark in the manufacture of fibreglass swimming pools. Our clients love our extensive product range of shapes, sizes and colours as well as the short period of time it takes to install one of our pools. HOW MANY OUTLETS ARE THERE IN AUSTRALIA? There are currently 24 franchisees, who cover over 70 locations around Australia. Many of our franchisees have been in the system for over a decade. WHAT ARE YOUR EXPANSION PLANS FOR THE NEXT 12 MONTHS? We expect to add up to 10 new franchisees to the system in metro and regional areas in Australia, as well as our continued international growth which includes the Middle East, Europe, Australasia and the Americas. WHAT DO YOU LOOK FOR IN A FRANCHISEE? Being a licensed builder is not a requirement, but could be helpful. The key to being a successful Narellan Pools franchisee is passion, determination, business acumen and a strong desire to succeed, together with a commitment to the customer, to our vision, mission and values and to building a service-oriented business. 70| FRANCHISING NOV/DEC 2012

DO FRANCHISEES NEED INDUSTRY KNOWLEDGE OR EXPERIENCE? Franchisees don’t need industry knowledge or experience as full training is provided. DESCRIBE THE TRAINING PROGRAM FOR NEW AND EXISTING FRANCHISEES. Initially you will complete a comprehensive six week induction course that is a mixture of both theory and practical components. In addition to training you on the Narellan Pools pool installation process, we give you a business template that you can use to help structure your business as well as assist with your business and marketing plans. We train you to provide the highest levels of customer service and industry-best selling skills. Much of our focus is around financial management, profitability and benchmarking. WHAT DO YOU DO TO DRIVE SALES IN THE COLDER MONTHS? When the weather is warmer people tend to think about swimming pools, but it is a year-round business. Our marketing is annual and therefore much of our focus is building leads for franchisees throughout the year and our sales promotions still occur during the winter months, encouraging people to make their purchase so they are ready and swimming in time for summer. WHAT ARE THE INVESTMENT COSTS FOR NEW FRANCHISEES? Franchises start from $100,000. WWW.FRANCHISE.NET.AU

WHAT LOCAL AREA MARKETING INITIATIVES DO YOU ENGAGE IN? At Narellan Pools our marketing initiatives are focused on driving enquiries for each business. This includes a mix of digital, TV and print campaigns, which are all managed by the franchisor. In addition, we support each local business by providing relevant templates, which have a proven success so that these can be localised to take advantage of opportunities in local regions. We have a wide variety of campaigns all aimed at generating leads for each business, and a number of opt-in local area campaigns for each franchisee to choose.

PoolWerx

JEREMY WINTER, FRANCHISE DEVELOPMENT EXECUTIVE TELL US ABOUT THE FRANCHISE? PoolWerx is a pool and spa maintenance network, supplying a complete range of pool products, equipment installation, pool maintenance and repairs for both private and commercial clients. HOW MANY OUTLETS ARE THERE IN AUSTRALIA? PoolWerx has over 220 active franchise marketing areas, 330 vans and 70 retail stores nationwide. WHAT ARE YOUR EXPANSION PLANS FOR THE NEXT 12 MONTHS? PoolWerx plans to develop in two ways. Firstly, our internal growth will see exist-

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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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ing franchisees adding additional mobile vans, developing retail locations and even acquiring competitors in the market. Secondly, PoolWerx has over 100 new territories available across Australia and New Zealand, so there will be plenty of new markets opening in the coming year. WHAT DO YOU LOOK FOR IN A FRANCHISEE? At PoolWerx, we call this person an Intra-preneur. This is someone with the desire, passion and motivation to run their own business with the structures and system of the PoolWerx franchise. DO FRANCHISEES NEED INDUSTRY KNOWLEDGE OR EXPERIENCE? No. You do not require prior experience in pool and spa management to become a successful franchisee. DESCRIBE THE TRAINING PROGRAM FOR NEW AND EXISTING FRANCHISEES. PoolWerxâ&#x20AC;&#x2122;s Pool School is a comprehensive three-week training A D _ F conducted R S I G M for A Ynew _ 1 franchisees 2 _ 2 . pdf program to provide the necessary competencies

PoolWerx franchisees can operate a mobile and a retail business

undertaken at PoolWerx for year round consistent sales volume. One of these is the commercial client relationships that are built at a national and regional level. By developing our services and processes to meet the needs of commercial partners, we have developed a strong set of offerings which set us apart from our competitors. PoolWerx also works to educate their residential clients to WHAT DO YOU DO TO DRIVE SALES P aTHE g e COLDER 2 1 3MONTHS? / 0 4 / 1 2 , 1 0 : 2 7understand AM and appreciate the value of IN year-round servicing. There are a number of strategies and skills to operate their business. Pool School is delivered through a mix of classroom style and in-field training modules. The training continues with an additional 90-day Forming Good Habits program designed to jumpstart the business. Ongoing support includes local one-on-one visits, regional meetings and the annual convention.

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WHAT ARE THE INVESTMENT COSTS FOR NEW FRANCHISEES? The investment for a new PoolWerx franchise is $89,800 + GST. This includes the business set-up and training, tools and equipment, van fit out, signage and starting inventory. Your only additional set up cost is the lease or purchase of a white van and working capital. WHAT MARKETING INITIATIVES DO YOU ENGAGE IN? Like all good marketing programs, PoolWerx has a multi-layered approach of national, regional and local activity. National branding includes things such as mainstream media, online and sponsorship. This is supported by state based activities and one of the most important areas that PoolWerx focuses on is activity at a local level, driven by the local franchisee. There are a host of tools available online through our resource library supported by specialised training ensuring the local face and message is seen and acted upon by local clients.

Swimart

CHRIS FITSMAURICE, AUSTRALASIAN MANAGER TELL US ABOUT THE FRANCHISE? Swimart is a swimming pool and spa specialist group with over 30 yearsâ&#x20AC;&#x2122; experience. We provide an extensive and affordable range of pool supplies, pool and spa chemicals, and pool services, in-store as well as at home. Since we established our first store in the Sydney suburb of Killara back in 1983, our friendly network of highly experienced swimming pool technicians and customer service professionals have ensured the health and wellbeing of thousands of pools and spas. We advise on the right pool chemicals and swimming pool cleaning equipment and also conduct product installations, pool and spa servicing, and can help with major filtration equipment such as pool filters, swimming pool pumps and chlorinators as well as gas, heat pumps and solar heating.

On-site pool testing is part of the Swimart portfolio

HOW MANY OUTLETS ARE THERE IN AUSTRALIA? There are 62 outlets in Australia and four in New Zealand. WHAT ARE YOUR EXPANSION PLANS FOR THE NEXT 12 MONTHS? Swimart is always looking to expand its franchise network. We are currently looking at opportunities in new markets both here and in New Zealand. We expect

â&#x20AC;&#x153;Owning a SIGNARAMA is more than a job â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s a lifestyle, itâ&#x20AC;&#x2122;s independence, itâ&#x20AC;&#x2122;s financial freedom, itâ&#x20AC;&#x2122;s challenging but most of all itâ&#x20AC;&#x2122;s fun! With a visible product that is in constant demand and highly profitable, combined with the strengths of the SIGNARAMA system, I have a successful business now in its 11th year. Thanks Sign*A*Rama for the opportunity to excelâ&#x20AC;? Rhod Webb, SIGNARAMA Sydney CBD North, NSW

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Plan your success. Design your lifestyle. A Kwik Kopy franchise lets you experience the best of both worlds, financial success and quality of life. Kwik Kopy offers graphic design, printing and marketing services to the business sector. Be part of a creative process that delivers: • Marketing brochure design and production • Branding and logo development • Direct mail campaigns • Email marketing and website development, to name but a few. Kwik Kopy franchisees handle a broad range of jobs every day, in fact that’s what makes a Kwik Kopy franchise so exciting. But you DON’T require any print or design experience to take on a Kwik Kopy franchise.

With Kwik Kopy you get a tried and tested system that removes the usual start up headaches and helps you establish your business sooner. As part of the Kwik Kopy network, you tap into a highly established and recognised brand, giving you plenty of leverage in the market. What’s more you’ll have an extensive support network all focused on your success.

For more information about our award winning franchise model call 1800 251 680 or visit kwikkopy.com.au/franchise to view Kwik Kopy franchise videos and download a franchise information kit.

Why choose Kwik Kopy: • Brand strength and ongoing marketing solutions • Area sales support • IT support • B2B model • Sales focus • Regular working hours Mon-Fri • Comprehensive training • Award winning franchise model

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Swimart franchisees get in-the-field training

to open another six stores over the next 12 months. WHAT DO YOU LOOK FOR IN A FRANCHISEE? Someone with a strong desire to build their own business is the primary prerequisite. An entrepreneurial flair and solid management skills, especially people management skills are highly desirable. Franchisees must also like interacting and dealing with the public and be capable of accepting responsibility for their own business. DO FRANCHISEES NEED INDUSTRY KNOWLEDGE AND EXPERIENCE? No. Swimart has a comprehensive 23-day training course that includes classroom, in-store and in the field training. New franchisees are also assigned an experienced mentor to assist them for the first six months. DESCRIBE THE TRAINING PROGRAM FOR NEW AND EXISTING FRANCHISEES Swimart has a comprehensive one on one training program both in-store, in-the-field and in the classroom. We will shortly have our eLearning program operational, enabling franchisees and their staff to increase their product knowledge, business management and customer service skills. WHAT DO YOU DO TO DRIVE SALES IN THE COLDER MONTHS? Yes itâ&#x20AC;&#x2122;s a seasonal business, however pools need to be

maintained all year round. While summer is our busiest time we are kept busy through winter with regular pool service and maintenance work. Swimart also provides other pool related services such as paving, cleaning and sealing and pool shell washes. These are typically done in winter. WHAT ARE THE INVESTMENT COSTS FOR NEW FRANCHISEES? For the establishment of a brand new store the investment cost will vary dependent on a multitude of factors including the size and state of the premises, individual landlord requirements and the level of finishes required. Initial investment costs start from as low as $190,000 and can be as high as $350,000. Franchisees must also ensure that they have sufficient cash flows in the formative period to cover business expenses and personal living requirements. WHAT LOCAL AREA MARKETING INITIATIVES DO YOU ENGAGE IN? Local area marketing activities are co-ordinated by our state franchise managers who work one on one with franchisees. This includes events, sponsorships and local media. Local area marketing also supports our national TV advertising program. Local area marketing ideas are shared via the Swimart Intranet which also contains a comprehensive local area marketing toolbox with downloadable templates and other resources. F WWW.FRANCHISE.NET.AU

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THE

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76| FRANCHISING NOV/DEC 2012

licensee, much like a franchisee, has the rights to use the intellectual property of its licensor (or franchisor, in the case of franchising). But there’s a big difference between the franchise model which has compliance at the heart of its structure, and a license which provides brand power with an element of freedom.

Brian Tracy

According to Andrew Phillips of business training licence Brian Tracy Australia, a licence can suit an individual looking to retain their own way of doing things. WWW.FRANCHISE.NET.AU

“A licensee, from my studies, prefers the element of creativity day to day. They don’t want to conform to a certain way of interviewing clients or decision making. “Another element is they get to use the brand at their own discretion. They see our programs and systems as part of their own offer. They are the brand, themselves. Our brand is not uppermost because they are in some cases already leading exponents of training, what they’re looking for is substance.” Brian Tracy works with high level firms wanting to reach the next level of business developments. As such,

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Andrew Phillips

licensees are expected to have a good understanding of business metrics, professional development, marketing, and to be articulate. This is not a role that will suit everybody, but even though there are high standards expected of incoming licensees, there is no lack of support should they need it, assures Phillips. “We provide considerable advice and structure. They

Independence rears its head in the vending sector too.“Vendors are a very independent breed,” agrees Luis Nevares of AustVending. “Years ago we considered moving into a franchise model, but people didn’t want to have to report their earning and to pay a percentage of their takings.” Vending is a cash business, and the licensees prefer an approach where they can come back for more and increase their market share, he says. It’s more about flexibility and less about control. A licensee in the system is more than likely to be building their business on bulk vending rather than traditional electrical vending. It’s been a big shift, Nevares says, and now 85 percent of the business is bulk vending. For one thing, location is key and Coca Cola, Nestle and Smiths have a big

business advantage in the traditional vending machine arena. “They want every big location, and they pay in advance for a year,” says Nevares. Another attraction of the bulk buying option is the simplicity of operation, particularly when it comes to maintenance. “It can be conducted by the owneroperator with a screwdriver, not a $90 call out fee to fix a drinks machine,” he explains. While bulk vending is all about selling handfuls of product, there is plenty

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Opportunities|Licensed businesses

iness Bulk vending is big bus at AustVending

of room to improve the profit levels with significant mark ups; for instance, a bag of M&Ms that costs the vendor $10 can be turned into a bag worth $50. And it isn’t just lollies – toys, bouncing balls, capsules, even healthy snacks such as yogurt coated sultanas and dried fruit can be in the machine – though M&Ms and Skittles form the backbone of the business. With more than 80 varieties of goods in stock, and four to eight varieties stocked in machines, there is something for everyone, insists Nevares. This business is very much about location, but licensees don’t have to find the sites themselves. “We work on geographical areas and we now have locations guaranteed. Most people come to us and they don’t want to find a location. We’re good at this now so we can guarantee all locations and each machine has a location

It’s a licensed agreement because it’s not an established brand as such, it’s a new product in the Australian marketplace. So instead of building the distribution myself, I’m looking to half a dozen people who can see the opportunity

agreement. We have 100 in Toowoomba alone.” So what kind of person suits this business? Positive attitude rather than a particular skill set is what Nevares is looking for. “We have everyone from corporate accountants to fencers and police officers.” What he does highlight is that licensees need to understand a business requires a bit of attention. “It’s not set and forget,” he says. “There’s a difference between not being on-site and not caring about the business.” It’s an opportunity though that appeals to all pockets and ambitions, from the mum looking for something extra to keep her busy and bring in some money – who will like the easy to manage minimum package of 20 machines – to the highly charged individual wanting to drive a business who invests in the 50 machine package. Machines delivered to one address, the first fill of stock, a location agreement, manual and training program are included in the packages.

Hydration Technology Innovation

Water and wastewater filtration membrane technology is the key to the Hydration Technology Innovations business that is new to Australia, though it’s been in the US for almost two decades. It’s all about water filtration and recycling, from industrial to humanitarian uses, and the Australasian region licensee, Erroll McLelland, believes it has heaps of potential. “I’ve been talking to state emergency services,

Luxaflex case study Guiseppe Mampieri’s family business has been established for about 20 years in southern Tasmania. A second store opened 16 years ago. “We’ve always sold blinds and curtains but before we’d been part of the Gallery, we dealt with different brands and we didn’t have an identity. We sold Luxaflex but favoured whatever was making money for us,” explains Mampieri. In 2009 the first store, at Moonah, became a Gallery, with a revamped showroom. “It truly transformed our business,” he says. “There is a commitment on both sides and I see the relationship as more of a partnership.

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“I like the idea of having my own identity, because everyone knows our brand, but I like the idea of the association of Luxaflex with Fabrique.” The association has been so successful that the business is now devoted to Luxaflex. “The brand has the full range of products, it’s always trying to be at the forefront of the industry.” Apart from the merchandise offer, the back office support has proved a success for Mampieri. “We have access to marketing, down to individual levels to put our message across.” The second Fabrique store recently joined the Luxaflex

Windows Fashion Gallery line-up, with the license for the Eastern Shore. There are only three other licenses in Tasmania. “It’s a premim brand that attracts customers who are prepared to pay top dollar,” he says. Any drop off in customer levels has been more than made up for by the turnover. “We’re not working so hard to earn more,” Mampieri admits.

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police, mining. I see opportunities in 4x4 outdoor stores, desalination for the marine market; all of this has potential. “I’ve spoken to a huge number of people and the feedback is very positive,” he says. McLelland came across the business when he was looking for “something a bit different”, he says. And

Investment will cost from $150,000. “It’s a licensed agreement because it’s not an established brand as such, it’s a new product in the Australian marketplace. So instead of building the distribution myself, I’m looking to half a dozen people who can see the opportunity.”

Luxaflex

Since 2002 Luxaflex has licensed its brand through its Luxaflex Window Fashions Gallery program. The flexibility of the package is part of its appeal, suggests marketing manager Jenny Brown; like Andrew Phillips she believes it is the ability of the business owners to maintain their own identity in the local market that is important. for him the beauty is that it really is unique; it’s a Luxaflex Window Fashions Gallery is the top-tier first in Australia and it has yet to be copied. retail distribution for the Luxaflex Window Fashions He has the rights for Australia, New Zealand brand. and Papua New Guinea and is on the search for “This licensing program offers business owners licensees which, he stresses, may not necessarily be the highest level of commitment from [parent individuals. McLelland predicts industrial segments company] Hunter Douglas and offers intensive rather than geographical territories could be viable programs to enhance the customer experience, licenses, and cites mining supply companies as increase profitability and grow the business. possible examples of licensees. “In fact, extensive training and networking “There will be controlled marketing and a opportunities are provided to ensure that every training period of about three weeks, including a customer gets the retail experience they deserve, and US visit to gain product knowledge. There will be AD_ F RBSBJ UL _ 1 2 . p d f Pa ge 1 5 / 0 6 / 1 2 , 3 : 5 4 PM a first class experience with the brand, every time,” further support if the licensee wants it,” he says. she says. “The buck stops with me.”

We work on geographical areas and we now have locations guaranteed. We have 100 in Toowoomba alone

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Of direct benefit to the licensee is access to exclusive products and in-home quoting but this product advantage is backed up by behind the scenes support including an annual conference with business training, networking opportunities, and gala awards. Gallery owners also gain from the group buying power for their main advertising programs coordinated by Hunter Douglas. Advertising at national, state and local areas is supported by the long-standing public relations campaign and sponsorships such as Grand Designs Live and Selling Houses. â&#x20AC;&#x153;Licensees do not own the copyright to the brand, but they use it for their storefront and various marketing activities, with permission,â&#x20AC;?

Licensees do not own the copyright to the brand, but they use it for their storefront and various marketing activities, with permission explains Brown. Marketing from head office includes catalogues, advertising, press releases and signage. Each Gallery has its own website but also receives relevant traffic off the national website and social media activities. F

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THE STATE OF THE

The franchise sector continues to be a strong investment proposition in the face of economic challenges

INDUSTRY T

he latest survey from Griffith Universityâ&#x20AC;&#x2122;s Asia Pacific Centre for Franchising Excellence reveals the sector is now worth $131 bn. And a report from PwC finds there is growth at both franchisor and franchisee levels. According to both reports,

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overall the franchising arena is proving to be a good place to do business. Franchising Australia 2012, the survey conducted by the Asia Pacific Centre for Franchising Excellence, reveals the number of franchises operating in Australia has

increased 15 percent in the last two years to 1180 franchise businesses. The number of franchise units has also grown by four percent to 73,000 units, made up of 65,000 franchisee-owned and 8,000 company-owned units. While both surveys indicate

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KEY FINDINGS • • •

here are 11 0 franchise usinesses ranchise units num er 000 5 000 units are franchisee owne an 000 company-owned. • he net growth in franchising has occurre predominantly in non-retail industries. • ore than 400 000 peop e are emp o e directly in franchising. • 2 percent of franchise s stems were developed in Australia. • ome 2 percent of franchisors are current operating internationally. • most 40 percent of franchise s stems Source: Franchising Australia 2012 growth across the sector, the PwC survey has a more positive outlook on franchisee profitability than does the Centre for Franchising Excellence, which finds franchisees are finding it tough to boost profits. There’s no doubt retail franchises are reflecting the difficulties of their sector, but the PwC report points to the ability of franchise systems to perform better than non-franchised models. Both reports highlight the opportunity to make more of e-commerce and technology to drive business and the two surveys are aligned on the challenges facing the sector - finding franchisee applicants, and funding.

FRANCHISING AUSTRALIA 2012 The Franchising Australia 2012 research results were released at the National Franchise Convention in October by lead researcher and director of Griffith University’s Asia-Pacific Centre for Franchising Excellence, Professor Lorelle Frazer. Professor Frazer says it was a pleasant surprise to see how resilient the sector had proven over the last two years. “Rather than a decline in the sector or it staying stable the sector has picked up. There has been slight growth in terms of systems, and growth in sales turnover. “The non-retail sector has experienced renewed growth as entrepreneurs continue to find gaps in the market that franchising can service,” Frazer points out. However the good news is not shared across the whole sector. A more “subdued” profitability served to highlight that franchisees are finding it tough, says Frazer. “Although the majority of franchisors reported increases in product sales and profitability there was a related increase in promotional spend to stimulate business activity, with franchisors reporting more 86| FRANCHISING NOV/DEC 2012

volatility in the sales and profitability of their franchisees,” says Frazer. “The net sector growth also disguises differing degrees of resilience amongst industry groups with the retail sector continuing to struggle with weak consumer outlook, price discounting practices and the challenge of eCommerce. “It didn’t surprise that retail was still struggling,” says Frazer.

Online challenges

Professor Frazer says the research results also identify opportunities for greater adoption of eCommerce activities in franchising. “It is clear eCommerce activities are in a stage of infancy in most franchise systems, with online sales facilitated by almost 40 percent of franchise systems but with fewer than five percent of total sales occurring online,” she says. “It’s an area ripe for development. Some franchisors probably feel threatened, and of course for some areas it’s not that relevant. Many companies do online bookings but not sales.” The survey points to a scattered approach to managing online business. The distribution of profits is variable, the report found, and Frazer suggests there is more guidance required in this area. In comparison to independent small businesses, the franchising sector showed unusually high involvement with social media, with 90 percent of companies using this channel of communication.

Challenges

For the franchisors the great challenges remain unchanged from the previous survey undertaken in 2010: the availability of suitable franchisee applicants

FRANCHISE SECTOR CHALLENGES

INDUSTRY CATEGORIES

Source: Franchising Australia 2012 WWW.FRANCHISE.NET.AU

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INTERESTED IN JOINING AN AWARD WINNING CONVENIENCE RETAILER? You may not be aware that Caltex Australia operates the largest convenience retail network across the country, with both company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand. Earlier this year Caltex Star Mart dominated the prestigious awards at the annual Australasian Association of Convenience Stores (AACS) awards held in Melbourne on 22 August 2012 winning : Franchise Store of the Year : Caltex Star Mart Annerley, QLD Company Operated Store of the Year : Caltex Star Mart Surfers Paradise, QLD We congratulate Jim and Ann Dovell and their team at Caltex Star Mart Annerley, and our company operated team at Caltex Star Mart Surfers Paradise, on their outstanding achievement in being judged the “best of the best” in Australian convenience retailing. Caltex Star Mart has now won Franchise Store of the Year for the past ﬁve years. To ﬁnd out more about our award winning Franchise, visit www.caltex.com.au and click on ‘Franchising at Caltex’.

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and the issue of compliance. Frazer says there needs to be more clarity about what franchisors really mean by compliance. “Compliance has been the number one cause of disputes. Clearly it’s an issue. What is it and why can’t it be fixed?” This issue could well be study material for future projects at the Centre, Frazer suggests.

FRANCHISED UNITS 2010/2011 FINANCIAL YEAR

Source: Franchising Australia 2012

joining an emerging franchise, admits Frazer. “Commentators say you The survey shows a continuing should run a company for two pattern of emerging franchises to four years before heading embracing the business method into franchising, but that means at an early stage. One-third competitors can come in. It’s of franchised brands began always a challenge. operating as a franchise within “Franchisees joining a young 12 months of starting up the franchise take on greater risk company. Frazer says “A lot of but that presumption should people start up a small business be reflected in the contract. You and fall into franchising because should expect to pay less on people approach them, or they AD_ F RGJ GNOV _ 1 2 . p d f Pa ge 1 2 / 1 0 / 1 2 , franchises that are not proven,” think ‘how can I expand?’” she says. There are pros and cons to

ABOUT THE RESEARCH

Franchising Australia 2012

Franchising Australia 2012 is the eighth biennial Franchising Australia survey, sponsored by the Franchise Council of Australia. Representing the only systematic data collected on the Australian franchise sector, the Franchising Australia 2012 report provides a profile of the sector as well as a source of longitudinal data gathered over the past 14 years. The 2012 research involved survey responses from more than 120 franchisors, or 11.6 percent of the sector.

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FRANCHISE SECTOR INDICATOR Franchisees’ revenue has grown by six percent in the last 12 months, and will continue to grow. That’s according to PwC’s latest Franchise Sector Indicator released in September. 4 : 3 2 PM Franchisors are forecasting franchisee growth of nine percent

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in the next 12 months and 28 percent in the next three years. Profits are expected to reach 10 percent in the next 12 months and 30 percent in the next three years. The study also reveals franchisors have continued to achieve double digit growth in the past 12 months. The fourth annual survey of owners and key executives at 101 franchise systems with 20 or more individual units finds once again that the franchise sector has outperformed the broader market, as a whole. PwC partner Greg Hodson says “There may have been uncertainty in the market but not the results, franchisors achieved profit and revenue growth of 10 percent in the last year.”

GROWTH LEVELS – MEAN % GROWTH

ESTIMATED VERSUS ACTUAL GROWTH OVER THE LAST 12 MONTHS

Source: PwC Franchise Sector Indicator 2012

For the first time non-retail franchisors, including home and personal services, mortgage brokers and business to business franchises, outperformed the retail sector with a higher than average revenue growth rate of 14 percent. Hodson says, “Growth in the non-retail franchise sector reflects that many services have now become ‘must haves’ rather than ‘nice to haves’. What we once thought were discretionary spending decisions are now part of normal consumer spending patterns. “The growth in non-retail is also evidence of the growing number of businesses that sell services to other businesses, adopting franchising as all or part of their business model.” Despite achieving just below the average with nine percent revenue growth in the past 12 months, Hodson says “There is nothing shabby about retail franchisors’ performance. Again it is proof that the fundamentals of franchising often produce better results than those of non-franchise models.” Executive director of the Franchise Council of Australia, Steve Wright, describes the Franchise Sector Indicator results as “reassuring”, and says that “Wellmanaged franchise companies are continuing to do well”. The survey’s track record over the four years “fills me with a great deal of confidence and optimism about the future of the franchise sector in the medium term, not just the short term,” he says.

Prospective franchisees want to see strong, successful, inspiring leadership, real support, a willingness to listen and a track record of franchisee success when they are looking to buy a franchise 90| FRANCHISING NOV/DEC 2012

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Franchisor growth

Franchisors predict the following growth: • Revenue growth: 11 percent in 12 months; 34 percent in 36 months • Profit increase: 15 percent over 12 months; 45 percent for the next three years • Network growth: 10 more units in 12 months; 31 more over three years Franchisors surveyed credit their growth to improved franchisee performance and strategic direction. Hodson says “Although it’s evident that success comes from having a clearly defined strategy and the willingness to continually review and refine that strategy, the most successful franchises also have the resources and commitment to implement the strategy too.” One-fifth of franchisors surveyed attribute their growth to new products and services, but only 14 percent believe technology to be a key driver. Hodson says “This result is interesting. We see technology as an area of untapped potential for further franchisor growth and improvement of franchise network performance.” As an example, he says, “A number of franchisors are showing an increased confidence in cloudbased technology to lower costs for franchisees. However, the take up

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of this type of technology is still relatively low.”

Challenges

ABOUT THE RESEARCH

PwC Franchise Sector Indicator

There is nothing shabby about retail franchisors’ performance. Again it is proof that the fundamentals of franchising often produce better results than those of non-franchise models

Finding suitable franchisees The PwC Franchise Sector remains the number one challenge Indicator is based on research for franchisors with just over undertaken in July 2012 by two-thirds (68 percent) saying it independent market researchers is their biggest short term hurdle. and analysts, ACA Research. Economic conditions are also cited Fifty-two percent of as a challenge, along with funding. respondents were from nonDespite the challenges, retail franchise systems and 48 franchisors are continuing to grow percent were retailers. networks at a significant rate. A surprising result in the survey Sixty-one percent of Franchisors offering prospective is that two-thirds of franchisors respondents had between 20 franchisees an attractive package report customer levels have stayed and 99 company owned units, are having less trouble finding the same or increased. Similarly, 75 with remaining 39 percent suitable franchisees. percent say spend per customer has having 100 or more. Hodson says “Prospective remained the same or increased. franchisees want to see strong, “Franchisors have been according to franchisors. successful, inspiring leadership, ensuring that they know their end The Franchise Council of real support, a willingness to listen customer’s needs using improved Australia is encouraging the and a track record of franchisee data collection customer feedback Federal Government to implement success when they are looking to and regular communication with a small business loan guarantee buy a franchise.” franchisees to ensure that they program to help funding. The Funding remains a signifi cant provide franchisees with a product AD_ F RVANSEP_ 1 2 . p d f Pa ge 1 1 6 / 0 8 / 1 2 , 9 : 3 0 AM proposal is similar to programs in challenge, though less so than and service offering that the the UK and US. in the previous three years, customer wants,” says Hodson. F

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IT TAKES

Franchising is all about following a formula but that doesn’t mean franchisees are all from the same cookie-cutter. Gabby Kelly, general manager at Bakers Delight, shares her views on how franchisees from any background can shape their future

ALL SORTS T

ake 10 different franchisees and ask each of them about their professional backgrounds and I guarantee you no two stories will be the same. People from all walks of life make the decision to step into the franchise market, looking for a career-change, more flexibility or the opportunity to be self-employed. Australia has almost 1,100 different franchise systems, all offering growth, financial rewards and

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the chance to be your own boss. It is a competitive industry with everyone vying for the ear of a potential franchisee and promising all the rewards that come with working in your own business. But to understand why people make the leap into franchising it’s important to understand where they’ve come from and what’s spurred them to making that enquiry. With more than 700 franchisees in Australia, New Zealand and Canada, and 32 years

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industries like manufacturing are struggling while the retail industry is still being hit hard by the rise in online shopping, high interest rates and stalled consumer confidence – all issues which affect job security. This prolonged period of pessimism in the market has led to a rise in the franchising sector’s growth as more people consider starting their own business under the guidance of an established and reputable franchisor.

of nurturing small business owners, Bakers Delight has seen a variety of different people make the career switch to franchising. Baking is not a one size fits all industry, however the purpose of a franchise business is to recognise that different skill sets and personalities are able to flourish with the right approach. The appeal of a franchisor is the established and proven systems, training and ongoing support that make operating a business a lot less daunting than going out on your own.

THE CURRENT MARKET

After almost four years of tough economic and trading conditions, job security and sales growth are more important than ever. On a daily basis we are bombarded with more messages of redundancies, reduced productivity and a desperate retail market. Job security and cost-of-living are the key concerns for consumers and workers in Australia. Traditional

Established franchisors with a network fostered over many years, can have proven training systems, property experts and group supply arrangements AD_ F RDCS NOV _ 1 2 . p d f Pa ge 1 2 2 / 1 0 / 1 2 , that look to benefit business owners

RESEARCH

One of the most important steps in making the switch to franchising is to do your research. Franchisors are constantly developing and changing their offering to attract new franchisees and can offer assistance in areas like securing financing, property leases, staff recruitment and of course training. Established franchisors with a network fostered over many years, can have proven training systems, property experts and group supply arrangements that look to benefit business owners. A brand with financial clout, established market presence and proven systems is able to offer greater security and better training options than a small network with processes that haven’t yet been ironed out. Remember, the decision to buy a franchise is 2 : 3 9 PM a life-changing one, so it’s important to make that choice count.

Before you franchise, you really should talk to Australia’s leading franchise consultants! DC Strategy is Australia’s leading franchise specialist whose unique multi-disciplinary approach ensures our clients’ consulting, legal and recruitment needs are served seamlessly and cost effectively. Our consultants are committed to developing valuable and sustainable businesses through our proven strategies and methodologies tailored for franchise networks and brands, complemented by our highly experienced team of specialist franchise lawyers providing a diverse range of legal services to franchisors and franchisees.

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QUALITIES

How do you know if you’ve got exactly what it takes to run a successful franchise? Whether you are a retail store manager, an accountant or a truck driver, franchising offers you the opportunity to make what is often a very daunting careerchange with guaranteed training and ongoing support. The lifestyle of a franchisee offers people from all different career paths the opportunity to utilise their personal skills and expertise to build a business in an area they may not have thought was possible due to the skills required. But in today’s franchising industry there is something for everyone. Whether you want to be a barista, a personal trainer or a baker, you only need to bring your passion, dedication and great work ethic to the table.

NETWORKING AND TRAINING A good franchisor will provide forums to enable franchisees to

CASE STUDY - FROM DRIVING TO DOUGH It’s not everyday you hear about a career change as significant as moving from driving a truck to running a bakery, but for Bakers Delight franchisee Kilian Ryan the transition made perfect sense. Irish-born Kilian explored his passion for food early on by training as a chef before he made the move to driving trucks for Coca-Cola. Kilian loved the variety and travel associated with the job, but several years in, found himself faced with a glass ceiling in terms of career progression. While on the road, Kilian’s eyes were opened to the inner workings of running a small business - and he liked what he saw. Many of his stops as a driver included visiting Bakers Delight bakeries, and while speaking to franchisees and bakery staff along the way he knew this proven and established network was the right choice for him. “When my wife and I were looking for a business opportunity, Bakers Delight seemed to be a great fit for us. The idea of being in control of making your product from scratch and delighting your customers

each and every day, was very appealing,” says Kilian. Although Kilian and his wife Suellen had no baking experience, they explained that Bakers Delight provided them with all the required training. “All new franchisees undergo a comprehensive, ‘hands-on’ training program to ensure they are equipped with the skill set to become capable of operating their own bakery. “From business planning, managing staff, financial management, and local marketing, to learning how to bake and everything in between, it was perfect for us,” says Kilian. Now the proud owners of Bakers Delight Balwyn, Kilian and Suellen are enjoying the challenge and flexibility of being their own boss. “It’s not always easy, but with the support and one-on-one business guidance from Bakers Delight operations staff and over 500 other franchisees, we feel confident we can overcome any challenge and continue to grow…. who knows, we may even purchase another bakery one day.”

From start-up businesses to established networks and corporations, DC Strategy has created over a billion dollars of enterprise value in the past 10 years alone providing the financial, operational, legal, online and international strategies that have built the majority of the fastest growing franchises and a significant number of the country’s iconic brands.

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network with likeminded business operators. They will also be transparent, sharing key learnings and knowledge and providing the ability for franchisees to benchmark results. This is an invaluable way to share knowledge and advice with business owners who are familiar with the same successes and challenges of operating a business. One of the most important benefits of franchising is the training. Generally all

new franchisees undergo a comprehensive franchise training program to ensure they are equipped with the skills and knowledge to run their business, whether itâ&#x20AC;&#x2122;s a bakery, a juice bar or a personal training business. Training varies from franchise to franchise and can often be a good indicator of the strength of the network. Bakers Delight offers unique training and development programs, all with the aim of providing a future franchisee with not only the practical baking skills, but also the skills to manage their business and staff.

SUMMING UP

A D _ F R WA T S E P _ 1 2 . p d f

Pa ge

Making the decision to purchase a franchise and switch career paths, can be a daunting one. Being self-employed brings with it a whole host of new challenges, but is also very rewarding. Flexibility, improved 7 / 0 8 / 1 2 , 3 : 3 7 PM work-life balance and financial potential are all motivating

The lifestyle of a franchisee offers people from all different career paths, the opportunity to utilise their personal skills and expertise to build a business in an area they may not have thought was possible factors for making the change. So itâ&#x20AC;&#x2122;s important to consider the passion you have for the product and culture and the level of commitment to the brand. Other important considerations include whether it is an established franchise, if it has a proven track record of success, and what level of training and operational support is on offer. F

Picturing a career change? ,QWHUHVWHG LQ UHDO HVWDWH" 3DVVLRQDWH RU NHHQ WR OHDUQ DERXW SKRWRJUDSK\" 7KHQ D 7RS 6QDS SURSHUW\ SKRWRJUDSK\ IUDQFKLVH FRXOG EH IRU \RX 3URSHUW\ SKRWRJUDSK\ LV DQ H[FLWLQJ DQG GLYHUVH LQGXVWU\ ZKHUH QR WZR GD\V DUH WKH VDPH (DFK GD\ \RXÂˇOO EH RXW DQG DERXW SKRWRJUDSKLQJ GLIIHUHQW SURSHUWLHV DQG PHHWLQJ ORWV RI QHZ SHRSOH DORQJ WKH ZD\ 7KLV LV GHĂ&#x20AC;QLWHO\ QRW D GHVN MRE +HUHÂˇV VRPH RWKHU UHDVRQV ZK\ \RX PLJKW FKRRVH 7RS 6QDS 1R QHHG IRU DQ H[SHQVLYH UHWDLO SUHVHQFH $OO \RX QHHG LV \RXU SKRWRJUDSK\ JHDU YHKLFOH DQG FRPSXWHU DQG \RXÂˇUH VHW WR JR :H ZRUN LQ D JURZWK LQGXVWU\ 2XU VHUYLFHV DUH LQ KLJK GHPDQG ZLWK WKH UHVLGHQWLDO DQG FRPPHUFLDO UHDO HVWDWH LQGXVWU\ :HÂˇOO KHOS \RX VXFFHHG <RXÂˇOO JHW WKH XVXDO LQWHQVLYH WUDLQLQJ SOXV GHGLFDWHG VXSSRUW ZLWK VDOHV DQG PDUNHWLQJ WKDW \RXÂˇG H[SHFW IURP D KLJK TXDOLW\ HVWDEOLVKHG IUDQFKLVH V\VWHP â&#x20AC;&#x153;As a Top Snap franchisee I now have a great work/life balance. I work from home and see more of my family, and going to work and meeting lots of great people is fun and different every day. This has given me the career change and lifestyle I was looking for. I love it!â&#x20AC;? John Woolley, Mornington Peninsula, Victoria

Territories are available across Australia, please contact +HOHQ &ODUNH on or email KHOHQ FODUNH@topsnap.com today for more details. www.topsnap.com 96| FRANCHISING NOV/DEC 2012

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INTELLIGENT

What are the top tips from the National Franchise Convention 2012? Here’s a quick, easy guide to what the speakers had to say

CONNECTIONS

ormer PM John Howard and high profile businessman Mark Bouris book-ended the franchise sector’s conference – and there was plenty of information shared in-between from franchisors and business experts, reflecting the convention’s theme of Intelligent Connections. Kicking off the convention, John Howard talked about leadership and the importance of understanding your audience or customer. He advised the assembled delegates that listening to people, and having convictions, are the two key elements of good leadership. “Leadership requires listening but you need to act on your convictions,” he told the audience. Howard also highlighted the need to include people in decision making processes. With a sense of ownership comes obligation, he added. Howard’s views on the opportunities for franchise businesses echoed the words of the outgoing chairman of the Franchise Council of Australia, Stephen Giles, who opened the day’s proceedings. “Franchising is the only format that allows small business owners to compete with big business,” Giles said. “Act with conviction. Success always comes to those who will adapt and persevere,” he added.

John Howard

98| FRANCHISING NOV/DEC 2012

Speakers included Karin Adcock, who brought the Danish jewellery brand Pandora to Australia. Adcock said there are three fundamental business values: pride, passion and performance. “Values are to be lived in the organisation every minute, every day,” she said. Christine Corbett, executive general manager, retail services, Australia Post, unveiled the new format stores and technology that are driving a transformed retail business for the country’s largest franchisor. “Letters are in terminal decline,” Corbett said, but the company has embraced change to face the challenge of online trading. Futurist Craig Rispin brought his inimitable style and enthusiasm to the convention, predicting we are on the cusp of another major change in our daily lives, based on mobile usage. Mark Bouris, chairman of Yellow Brick Road Wealth Management, and host of The Apprentice in Australia, shared his early business experiences with the everforthright Kerry Packer. And his key to business success? Stick to the grind and the struggle. F • Among the franchisors presenting was co-founder of Bakers Delight, Roger Gillespie. You can read his baker’s dozen tips on page 35 Mark Bouris

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Karin Adcock

Christine Corbett

Roger Gillespie

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WINNERS &GRINNERS

Everyone loves a winner, so let’s celebrate with the franchisees and franchisors who have excelled at their business and been recognised for their achievements at the NAB FCA Excellence in Franchising Awards 2012

op of the list in the coveted spot for the fourth time, 7-Eleven was named Established Franchisor of the Year. CEO Warren Wilmot said the franchising model is what has made 7-Eleven so successful. “Franchising has been the business model that has driven our success for the last 35 years and we are committed to franchising excellence. Our first franchised store opened on May 6, 1978, making us one of the first in Australia to franchise. We knew then, and believe now, that a passionate, committed

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franchisee who is operating their own business will deliver a better in-store experience to our customers,” he said. The company has more than 2,000 franchisees, many of whom are long-term and/or multi-site owners. Another established business, but one that has been franchising for a much shorter period of time is Luxottica. The eyewear business, with its home base in Italy, was awarded Emerging Franchisor of the Year. Director of franchising and acquisitions, Peter Baily said the model provided a great opportunity for WWW.FRANCHISE.NET.AU

independent optical businesses to improve their profitability and value by converting to either the OPSM or Laubman & Pank brands. In another link with Italy, the Excellence in International Franchising award was this year given to Aussie brand Gelatissimo. Not only has Gelatissimo opened three gelaterias in Kuwait, introduced the brand to Indonesia, Malaysia and Singapore, and has two outlets planned for a pre-Christmas opening in the Philippines; this Australian business has successfully taken its

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product to Italy, the home of gelato. Fastway Couriers underwent a nationwide brand revitalisation project and has been rewarded for its efforts with the Excellence in Marketing award. From November 2011 to June 2012 the company provided new-look branding for the 700 franchisees across the 25 depots in Australia. Retail business Battery World was recognised for its efforts in recycling, and was awarded for Franchise Innovation. The Australian general manager, John Pascoe, was also named Franchise Executive of the Year. For the first time the Franchisor Social Responsibility award was split between two deserving winners: Bendigo and Adelaide Bank, and Bakers Delight. A community focus is part of the bank’s localised model which aims to create a wealthier, more cohesive and inclusive community. Bakers Delight’s considerable contribution of nearly $6.5 million in 12 years for the Breast Cancer Network Australia, and its annual bread donation worth $143 million to various charities have made it a winner. Bakers Delight scored again with

its Caneland franchisees Jo and Maurie Patterson taking out the Franchisee Community Service award for their fundraising efforts for Breast Cancer Network Australia, Relay for Life, Brisbane’s Royal Children’s Hospital and local charities in Mackay.

Franchisees

It was a great night for franchisees, with The Coffee Club’s Carolyn McManus awarded Franchise Woman of the Year. Queensland based McManus has built a portfolio of five coffee outlets, and one Ribs and Rumps restaurant in six years. The FCA’s Multi-unit Franchisee of the Year for 2011, and North Queensland Business Woman of the Year, McManus is a regular speaker within the franchising sector and outside in the broader community. This year the Multi-Unit Franchisee award went to PoolWerx franchisees Michelle and Tony Graham, who were last year the national Franchisee of the Year for the PoolWerx group. The couple are top performers in the network and have six mobile territories and four retail hubs. At the other end of the scale, WWW.FRANCHISE.NET.AU

1. The gala dinner in Canberra 2. John O’Brien joins the Hall of Fame 3. Carolyn McManus accepts her award 4. Fastway Couriers in celebratory mood 5. Signarama’s Craig Mason 6. Battery World scooped two awards 7. Aussie Pooch’s Christine Taylor 8. Jo and Maurie Patterson from Bakers Delight

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10 9. The 7-Eleven team 10. Gelatissimo 11. Mister Minit 12. Philip Ciniglio 13. PoolWerx winners 14. FC Business Solutions 15. Luxottica

Daniel Conroy of Mister Minit Riverlink Ipswich is Franchisee of the Year – less than two staff. Conroy, the current Franchisee of the Year in the Mister Minit network, has shown excellent performance in his own store and contributes significantly to the group. Mister Minit’s Shane McMillan was named Field Manager of the Year. Named Franchisee of the Year – two or more staff, was Craig Mason from Signarama in Joondalup. The store was one of the first to open in WA and Mason has led it to become a top performing store, recognised not just in Australia but in the global Signarama group. Two franchisors were voted onto the FCA’s Hall of Fame: PoolWerx founder John O’Brien, and Christine Taylor, the founder of Aussie Pooch Mobile. Philip Ciniglio of Market Minds was 102| FRANCHISING NOV/DEC 2012

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15 rewarded for his 30-plus years in the sector (including management, franchise development and marketing) with the Contribution to Franchising award. Boutique franchise consultancy FC Business Solutions was named Supplier of the Year. F The NAB’s Stuart Zalunardo presented the awards. Pictures by eventphotography.com

AD_FRAMASEP_12.pdf Page 1 1 24/08/12, A D _ F R A MA J U L _ 1 2 . p d f P a ge 1 / 0 6 / 1 2 , 3 :12:35 1 6 P M PM

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Issues|Due diligence

10 BEST

QUESTIONS TO ASK Check out our list of essential questions to ask your franchisor as part of your research on a franchise brand. By Dr Michael Schaper, ACCC

efore you commit to buying a franchise, itâ&#x20AC;&#x2122;s important to gather as much information as you can to make an informed decision. After all, the best time to find out about the ins and outs of a franchise system is before you have signed a contract or handed over your money. To help you determine if a franchise is right for you, here are the 10 questions that every prospective franchisee should ask their franchisor:

1. Can I have a disclosure document? The Franchising Code of Conduct requires all franchisors to give potential franchisees a disclosure document (as well as a franchise

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agreement and a copy of the code). The disclosure document contains a lot of the key information about the franchise, including the payments youâ&#x20AC;&#x2122;ll be required to make, whether you will have an exclusive territory and what will happen when your agreement ends. The disclosure document also sets out the contact details of current and past franchisees.

2. How much can I expect to earn? When considering whether to invest your money in a franchise, you should try to gather as much financial information as you can about the business. Potential earnings will be an important factor in determining the

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should ask the franchisor whether you will be able to source your own stock or equipment, or if you must obtain it from an approved supplier. If you can only buy stock or equipment from an approved supplier, you should ask the franchisor whether they have obtained approval from the ACCC as this form of dealing may otherwise be illegal.

commercial viability of a franchise. The Franchising Code doesn’t oblige franchisors to provide information to you about expected earnings, but you should still ask for it. If the franchisor makes any verbal claims, get written confirmation of those claims.

3. What are my costs?

5. Will the franchisor compete online with my business?

An accurate picture of a franchise’s viability requires not only information about earnings, but also costs. Most franchisees understand that they will be required to make a significant upfront payment and then pay some ongoing fees to the franchisor. However you may also be required to make outlays that you might not expect. For example, you could be asked to update your equipment, participate in training or undertake a store refurbishment at the franchisor’s request. Try to gather as much information as you can about any additional costs you may encounter.

In this digital age, businesses face competition not only from other bricks and mortar stores, but also online businesses that are able to supply goods and services without having to worry about the overheads associated with operating a storefront.

4. Can I source stock from my own suppliers? Franchisors may seek to place restrictions on you AD_ F RUNI SEP_ 1 2 . p d f Pa ge in terms of the goods or services that you are able to supply. Before committing to a franchise, you

Be part of

The Franchising Code doesn’t oblige franchisors to provide information to you about expected earnings, but you should still ask for it. If the franchisor makes any verbal claims, get written 3confirmation / 0 8 / 1 2 , 3 : 5 5of Pthose M claims

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Be your own boss and grow your equity Tenure: ϭϮ ǇĞĂƌƐ ;Ϯ ǆ ϲ ǇĞĂƌƐͿ ROI: 'ƵĂƌĂŶƚĞĞĚ ŵŝŶŝŵƵŵ ŝŶĐŽŵĞ ŽŶ &ƵĞů ŽŵŵŝƐƐŝŽŶ Support: EĂƟŽŶĂů ƉƌŽŵŽƟŽŶĂů ƉƌŽŐƌĂŵ For more details contact: 03 9413 1400 franchiseinfo@unitedpetroleum.com.au

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You should ask the franchisor about their online presence. Do they supply goods directly to consumers via their website? If not, do they intend to branch out into this market in future? Also ask the franchisor whether you’ll be allowed to operate online or to sell products on trading websites such as eBay.

6. What training and support will I receive? Some people choose to buy a franchise instead of setting up their own small business because of the training and ongoing support they expect to receive

You should ensure that you understand what can happen at the end of the agreement, as there is no guarantee that you will be able to operate the business beyond this term. In particular, you should ask the franchisor whether you will have an option to renew A D _ F R S I G N MA Y _ 1 2 . p d f Pa ge 1 5 / 0 4 / 1 2 ,

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from the franchisor. Find out exactly what support the franchisor will give you. Will they help you out (e.g. by reducing your fees) if you get into financial trouble? It’s also worth talking to other franchisees to see how much support they’ve been getting.

7. What happens if I can’t run the business for a few weeks? While people often set out with high hopes when starting a business, the reality is that things don’t always go to plan. You should ask the franchisor what will happen to you and your franchise if you become unwell or are otherwise unable to run the business for a period of time.

8. What marketing will the franchisor do? Franchisors often require their franchisees to make regular financial contributions to a marketing or advertising fund. While the Franchising Code requires these franchisors to provide franchisees with audited financial statements setting out how the fund is used, the code doesn’t specify what the money must be spent on. If your franchisor does collect money for 3 : 0 4 PM marketing, ask them for details of how they intend to spend your money, preferably in writing.

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9. What will happen when the agreement ends? Franchise agreements don’t last forever – they usually run for five or 10 years. You should ensure that you understand what can happen at the end of the agreement, as there is no guarantee that you will be able to operate the business beyond this term. In particular, you should ask the franchisor whether you will have an option to renew and, if so, what conditions you will be required to meet in order to exercise that option.

10. What will happen if the franchisor fails? Like any other business, the franchisor can fail. You should clarify with the franchisor what your rights and obligations would be if the franchisor did go under. Will you have the right to continue to trade under the brand name? Will you be required to continue making any payments (e.g. to a landlord or supplier) even if you can no longer operate your franchise? While these questions may lead to some uncomfortable discussions, they are critical if you want to make a truly informed decision about buying a franchise. And don’t stop with the franchisor

– talking to a lawyer, accountant and business adviser will help you get your head across all the information you receive and to get advice where appropriate. F Dr Michael Schaper is deputy chairman of the ACCC. The ACCC has several franchising publications containing useful information for prospective franchisees, including a Franchisee Manual and a DVD about the code. These are available at www.accc.gov.au/franchising or by calling the ACCC’s Small Business Helpline on 1300 302 021.

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How to|Marketing

Are you looking at the right brand? Here, Paola Tanner highlights key questions that should be asked of a franchiseâ&#x20AC;&#x2122;s marketing strategy during the due diligence process

HOW TO PICK THE RIGHT

BRAND I f you are looking for a franchise, how can you tell if the brands you are considering have depth in their marketing and if they will provide you with the support you need both from a branding and

a sales-driving perspective? Are they ready to take on new media and integrate it with traditional marketing? And most importantly are they right for you? There are a few questions you can ask to check how the

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franchisor marketing team is managing the brand, helping you to decide if the support provided in marketing is appropriate. But first you might want to have a think about what your own expectations are. There is a vast range of franchise companies from those that heavily support and regulate franchisee marketing to those that leave it to the franchisees themselves, and

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everything in between. You might have marketing skills and feel a flexible franchise would give you an opportunity to thrive in this area or you might prefer to leave it to the franchisor to provide

both guidance and execution. The first step is to decide what you prefer so you know what to look for. Now it is time to do your homework and talk to as many people as you can to find out the answers to the following questions.

Essential questions

Brand strategy. How is the strategy for the brand set? Is this process done yearly? What are the companies’ current strategic objectives? What does the brand stand for? Marketing team. Does the marketing team have the right skills mix to drive the brand?

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Is this a team that has both its strategy and implementation covered? Depending on the size of the chain this might be achieved by one person, multiple people, separate teams or through an outsourced model. Is the marketing team supported by an agency or does it manage the work in-house? Managing campaigns. Does the franchisor have the right systems and tools to manage and track campaigns? Are franchisees able to execute campaigns independently? Are franchisees able to execute local store marketing (LSM) in the digital world? Does the franchisor encourage group

Do franchisees get the opportunity to participate in national campaigns and leverage of scale? 4 / 1 0 / 1 2 , the 2 : economies 1 4 PM

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How to|Marketing

participation and do they reward proactive franchisees? Internal communication. How does the marketing department communicate with franchisees? Is there a franchise advisory council? How is your voice going to be heard? You are looking for a strong communication strategy that ensures franchisees understand the direction and possibilities provided by the franchisor. National marketing. Find out what national and/or local activities are organised by the franchisor and what is expected of franchisees. Do franchisees get the opportunity to participate in national

campaigns and leverage the economies of scale? How is this process managed? Putting it into practice. Does the marketing team work alongside and have the support from the operations team to ensure successful rollout of new products and promotional products? Execution is key and can influence the effectiveness of marketing more than you might imagine. Customer database. Does the company have a database of customers and prospects that can be used to drive sales? Is this database independent of the marketing channels used so it can be used in the future, regardless of what the popular marketing channel is at the time? Social media. Does the company have a social media policy? Is it active in this space and do franchisees participate in the social media strategy?

Find out what national and/or local activities are organised by the franchisor and what is expected of franchisees Marketing platforms. Is the marketing team able to implement campaigns across channels from its database efficiently? Does it have the right platform and

GOOD SIGNS TO WATCH FOR In summary, you want a franchisor that: 1. 2. 3. 4. 5. 6.

Drives a solid marketing strategy with open communication to franchisees. Has a team with the skills and resources to support the growth of the brand. Builds and maintains a solid database independent of any marketing channels. Provides marketing teams with systems and tools to be able to implement campaigns across channels from a database efficiently. Has a solid platform to manage local and national campaigns and link digital and traditional channels together. Has a vision for how franchisees can execute LSM in the digital world, leveraging the chain database in a controlled manner.

112| FRANCHISING NOV/DEC 2012

a solid database to execute campaigns? While traditional marketing channels are still relevant, like all other companies in the global marketplace franchises are moving their marketing to new media. This transition requires platforms and knowledge and some franchisors are making this work better than others. Resources. Does the marketing team have enough resources to provide support to franchisees? Admin support, or an outsourced solution to manage the logistics of marketing collateral delivered to franchise outlets, is important to ensure the team is not bogged down doing admin work but rather they focus on strategy and big picture. Franchisee opinion. Are franchisees happy with the marketing function? Do they think the franchisor delivers in this area? All of the questions above

WWW.FRANCHISE.NET.AU

need to be asked of the franchisor and ideally to as many franchisees as possible. All brands will brush through the above and highlight their marketing strengths, but getting into the detail will allow you to make an informed decision and most importantly align it with your expectations to find out if you and the franchise are compatible. F Paola Tanner is the director of Fuse. Fuse is an agency wholly dedicated to helping franchise chains achieve excellence in marketing implementation across all channels. Fuse clients get free use of its online portal to execute their marketing at a local and national level.

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How to|Training

BRAIN

GAIN Franchisors can give a helping hand to franchisees and their staff, whether that’s through hands-on learning, online education or technical training

114| FRANCHISING NOV/DEC 2012

raining is essential in any business, never more so than in the embryonic stages. Different levels of training support are available for newbie franchisees, depending on the system. And there are some franchisors who extend their learning processes to frontline staff. In this article, we take a look at three examples of franchisor training.

TRAINING ACADEMY

The Queensland based Retail Food Group’s new $1 million Training Academy has been training the equivalent of at least one new franchisee every two days over the past 12 months. The new facility opened in April last year and comprises 10 barista coffee machines, seven baking ovens, two donut makers, a simulated store-front as well as computer and theory classrooms. Over the past 12 months, more than 200 franchisees from RFG’s brands, which include Michel’s Patisserie, Esquires Coffee Houses, Big Dad’s Pies, Pizza Capers and Brumby’s Bakeries, were trained up - the highest number ever for the group. Depending on the brand they are WWW.FRANCHISE.NET.AU

investing in, new franchisees complete three to eight weeks of intensive courses at the academy including practical, theory and computer-based courses, before putting their skills into practice in an operational store in their home state. RFG national sales and leading coordination manager, Faith Manning, says the academy is setting a new benchmark for franchisee training and development. “RFG is passionate about providing the best training and support to its franchisees, and we are proud of this fantastic training facility and consider it an investment in the futures of our motivated franchisees. “It is here that franchisees learn the art of making the perfect cup of coffee, decorating donuts, muffins and cupcakes, baking the perfect loaf and giving exceptional customer service,” she explains. Franchisee Robert Gordon, who purchased the Donut King in Bluewater Square in August 2012, says that the RFG Training Academy has given him the tools to create a successful business. “I had no franchise experience prior to purchasing Donut King Bluewater Square. What attracted me to RFG and Donut King was the extensive range of franchise systems

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How to|Training AD_ F RF I NSEP_ 1 2 . p d f

Pa ge

6 / 0 8 / 1 2 ,

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Training at RFG’s academy

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that RFG offered and the years of experience and success behind the company,” he reveals. “The practical component of the training is very thorough and the theory component gives an overview of the business from outside the store, which will allow me to build on my knowledge once I take over the business.”

ONLINE LEARNING

Convenience chain NightOwl has taken an easy access approach to staff and franchisee communication and training with its online learning platform, NightOwl E-Learning system (NOEL) and the results have provided a significant competitive advantage for the business. NightOwl development sales manager Dean Atkins says “Franchisees come from a variety of backgrounds, you don’t have to have a retail background and that is where our training and support programs are so vital. It begins with a four week comprehensive training program to help new franchisees find their feet and this is followed by regular communication from the regional development manager and operational excellence coordinator.” Continued updates to training are done through the company’s online training system, and it’s proving to be very popular. Operations manager Daniel Zarew says that the system has been in place for four years and is essential for offering consistency in training and communication across its 66 stores. “NOEL provides franchisees with useful information and comprehensive training systems at the click of a mouse. Franchisees have the ability to monitor their store statistics and staff training progress in real time and this is vital considering the nature of our business and the long hours involved in operating a store,” he explains. Other benefits for franchisees include a live forum, latest news, document templates, company information reports and statistics, marketing and promotional material and order forms. “NOEL offers our franchisees world-class training and reporting standards which they can access any time day or night. Most importantly we’re able to communicate to all our stores important news and notices on the homepage, such as

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FR.NOVDEC12.PG119.pdf

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Training|How to

Strategic training

Retail qualifications are available through NightOwl

staff rosters and track the number of employees who have downloaded and read their rosters.” A recent introduction is the nationally recognised Certificate 3 in Retail and Certificate 4 in Retail Management, available to all franchisees and managers. “We believe in offering our staff not just a job, but a career pathway. Giving them access to this training via NOEL complements the system and formalises the training we already have in place. It’s also a great way for the business to quickly communicate information to a large number of stores and staff members and it is hard to put a A Don _ Fthis R JasEitM N O V _ 1 to 2 .our p efficiency df P a as ge 1 value contributes well as the bottom line,” says Zarew. F

Independent tyre retailer Bob Jane T-Marts has graduated the first group of nationally accredited technicians, sales staff and management from its inhouse staff training and career development program. The tyre business now delivers training in a partnership with the Victorian Government’s Department of Education and Early Childhood Development, and accredited training firm Mint Group. Employees across the business can train for a Certificate III in Automotive Retail, Service and Repair through to a Diploma of Management. The initiative has resulted in significant retention and enhanced career options for employees said Rodney Jane, the Bob Jane Corporation CEO. “The program is very significant 1 9our / 1business 0 / 1 2and , is4 an : 1inspired 3 PM for strategic venture to attract the right

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people through our positioning of Bob Jane T-Marts as a compelling employer option, offering high level training, structured career path progression and excellent job satisfaction. “Through this initiative we have set the bar high in our sector of the automotive industry in our mission to improve staff retention and offer quality accredited training programs to people with basic workforce entry skills as well as experienced staff, whatever their background,” Jane said. There are 30 Certificate III graduates, including Johnny Smith who left school in year 10. “Having worked at Bob Jane T-Marts for a few years, the opportunity to undertake formal accredited training has given me more confidence and a great job with a career path. One day I might even own my own Bob Jane T-Marts store,” Smith said.

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How to|Finance

WHAT YOU NEED TO KNOW ABOUT

Working capital is an absolute essential when youâ&#x20AC;&#x2122;re setting up in business. Kate Groom looks at what working capital is, why it matters and suggests ways to manage it better

WORKING CAPITAL

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Finance|How to

ou might have heard that lack of working capital, or failing to manage it well, is a cause of problems in business. And it’s true! But by understanding working capital in your business, you can manage it better and improve profit and cash flow.

What is working capital? Working capital is the money used to pay the day to day running costs of a business. At a deeper level it relates to the short term assets and liabilities of a business. These include cash, stock, accounts receivable, accounts payable and all amounts that a business owes in the short term. Accountants and bankers often use the term ‘working capital’ and they have a specific definition: working capital = current assets – current liabilities (They might also refer to the current ratio, which is current assets divided by current liabilities). Used in this context, the word ‘current’ has a specific meaning; it means 12 months. Therefore, a current asset is one that is cash, or will become cash within 12 months. A current liability is a debt that will be paid within 12 months. Here are some examples:

CURRENT ASSETS • Cash • Stock • Accounts receivable (money owed to you) • Rental bond • Money on term deposit

Why is working capital important? How well a business manages working capital can have a dramatic effect on profit and cash flow. If it’s not well managed, a business can run out of cash to fund operations – even if it is profitable. Here are two examples of challenges related to working capital management that we’ve seen in real life. In each case, better management would help the business run more smoothly, and mean less cash flow stress for the owner.

If it’s not well managed, a business can run out of cash to fund operations – even if it is profitable

1. A retail business had a lot of stock to sell but little cash and so was struggling to pay wages and other operating costs. To ease the cash flow problem, the owner discounted prices to bring in sales. It was successful to the extent of putting money in the bank account, but the business made less profit on each sale, so had less cash available to cover costs and buy new stock. 2. After a few profitable months, the owner has taken out some surplus cash and bought a new car. But she didn’t plan ahead and allow for a seasonal downturn. This meant she had to delay payments to creditors in order to meet her dayto-day expenses. And her tax bill was also due. This has added extra stress, and she was annoyed with herself for not looking ahead. In addition to this, she found the juggling of cash flow took up valuable time, and distracted her from making sales. Overdraft A new business has an additional Accounts payable factor to consider. It generally takes (money owed to suppliers) GST due Income tax due PAYG and superannuation Loan and lease payments

CURRENT LIABILITIES • • • • • •

You will notice all of these items have a short term nature to them. That is at the very heart of working capital. It does not include long term assets, such as buildings or cars, nor does it include long term debt, such as bank loans and long term finance. WWW.FRANCHISE.NET.AU

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Finance|How to

time for a start-up business to make profits on a consistent basis. This means extra cash, or working capital, is needed to cover expenses until profits are made.

Understanding your cash conversion cycle

The starting point for improving working capital management is to understand the way money moves throughout your business, how it converts your cash into sales. Consider the simple example of a fruit stall where the owner starts the day off with $1,000, and spends $600 on stock. He pays $100 in wages to an assistant. By the end of the day all the stock is sold and the business has taken $900 in sales. There is $200 profit ($900 - $600 - $100) and $1,200 in the bank. The next day the cycle starts again. Most businesses are more complex than this. The cycle takes longer and involves more stages, for example: Starting with cash, the owner invests in inventory. The stock sits on the shelf until it is sold. When the sale is made, the goods are handed over, but the customer receives an invoice and is given time to pay AD_ F RACE 2 NOV _ 1 2 . p d f Pa ge their account. To keep the business going, more cash is needed to pay bills and buy stock while waiting

for payment. The owner will need to supply this cash from their reserves, borrow it from a bank or take advantage of supplier payment terms. In a service type business, rather than holding inventory, the business has work in progress and clients are invoiced either throughout the assignment, or at the end of the project. The longer it takes to complete a job, the more cash is tied up in operations. In general, the better a business is at converting

In general, the better a business is at converting cash to sales and back to cash, the less working capital is needed, and 2the more cash is available 1 1 9 / 1 0 / 1 2 , : 2 6 PM for other investments

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How to|Finance

cash to sales and back to cash, the less working capital is needed, and the more cash is available for other investments. While every business has a different pattern, the idea is to be as effective as possible.

How to improve working capital management

The best way to improve your cash conversion cycle is to identify how the cycle works in your business, and what stages the cash moves through. The next step is to find ways to reduce the time taken at each stage. By reducing the time taken at each stage you reduce the amount of cash tied up in the cycle overall. Here are some ideas to get you started. Inventory and WIP: This is about managing inventory so you have enough to satisfy customers, buy at a reasonable price, but not hold excess stock. In general, the less stock you hold, the better.

Can you improve your systems so you invoice more promptly and make it easier for customers to pay, for example by taking credit cards, direct debit or Bpay? Consider how you can improve buying practices or stock management. In a service business, review how you might reduce the time it takes to complete a job. Sales: In every business it takes time to make a sale. For example, a marketing program takes time to develop and produce results, it takes time to convert a quote to an order, and a certain number of inquiries are needed before a prospect becomes a customer. Identify and implement ways to shorten your sales cycle and this will lessen the amount of cash needed for day-to-day operations. Accounts receivable: Look for ways to reduce the time you wait to get paid. Can you improve your systems so you invoice more promptly and make it easier for customers to pay, for example by

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THREE EASY STEPS Whether youâ&#x20AC;&#x2122;re just starting out or are established in business, here are three steps to improve working capital management: 1. Work out your cash conversion cycle and how long each stage takes. 2. Identify ways to reduce the time taken at each stage of the cycle, and implement improvements. 3. Make sure your financial statements accurately reflect current assets and liabilities. Your accountant or bookkeeper can help. Monitor your current ratio each quarter and see how your actions affect it. taking credit cards, direct debit or Bpay? Trade terms from suppliers: Supplier terms can provide a way to reduce the amount of cash needed to fund operations. Favourable terms can often be negotiated with regular suppliers. At the same time, make sure you donâ&#x20AC;&#x2122;t put the supplier off-side by delaying payments unnecessarily. It can take time to understand how working capital works, but by doing so you can dramatically improve your financial results. This will reduce the time taken in juggling your cash flow priorities and let you concentrate more time and energy on other areas of the business. F Kate Groom is a partner at Smart Franchise, business advisers and specialists in financial operations for franchises - www.smartfranchise.com.au

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Advice LEGIT | LEGALESE MADE EASY

What happens when a franchisor sells the system?

C ESTHER GUTNICK Senior associate, Mason Sier Turnbull Lawyers

orporate franchisors often buy and sell franchise systems to complement or subsidise their existing businesses or for investment purposes. Privately owned franchisors may also sell for various reasons. Franchise agreements usually allow the franchisor to sell its business to any purchaser at any time, without the franchisee’s consent. Sales can occur in several different ways such as: a sale of the franchisor’s business (i.e. the assets); a sale of shares in the franchisor’s company; merger with a similar or competing business or a complementary franchise system; or sale by a liquidator appointed to the franchisor. Franchisees often become aware of the sale only very late in the transaction. Even where the proposed sale is communicated to franchisees, the purchaser’s identity may not be revealed until the sale is finalised. Generally, franchise agreements do not allow franchisees to terminate their agreements or exit the franchise system as a result of the sale.

will not change. In these circumstances, franchisees should receive written notice within 14 days of a change in the franchisor’s majority ownership or control, which franchisors are required to provide under the Franchising Code of Conduct. If a franchisee is asked to sign any document relating to the transfer, the franchisee should seek legal advice to ensure that the fundamental terms of the franchise agreement and the franchisee’s rights and obligations remain unchanged. The new franchisor is also required to prepare and maintain its own disclosure document for issuing to new and prospective franchisees. Franchisees should request a copy of the new disclosure document and review it thoroughly as it will contain relevant information regarding the new franchisor entity and possibly its intentions for the franchise system.

What documents will be involved?

If the franchise agreement is assigned or novated, its provisions remain in full force and effect and the franchisee must continue to comply with all its contractual obligations, but in favour of the new franchisor. Where the franchisee signs a new franchise agreement, the new terms and conditions of that agreement will apply and the old franchise agreement will be extinguished.

Franchisors may ask franchisees to sign a short document confirming the franchisee’s acknowledgement and acceptance of the transfer. Franchisees are often asked to execute a novation deed, which is entered into by all three parties - the vendor franchisor, the purchaser franchisor and the franchisee. This means all parties agree that the rights and obligations under the existing agreement end at a certain date, with identical rights and obligations taking effect immediately between the purchaser franchisor and the franchisee. Alternately, franchisees may be asked to sign a document terminating their existing franchise agreement, and sign a new franchise agreement with the purchaser franchisor. A termination or surrender document is likely to contain a release of the vendor franchisor from any claims by the franchisee. If there is a sale of shares in the franchisor company, the franchise agreement need not be assigned or novated as the parties 126| FRANCHISING NOV/DEC 2012

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What happens to the existing franchise agreement?

What changes should franchisees expect after the sale? A new franchisor may propose new policies and procedures, or have plans to overhaul the entire franchise model. New ideas may be introduced in areas as significant as branding, marketing, key products or services, approved suppliers and even fees. Franchisees must be prepared to embrace a relationship with the new franchisor who may also operate differently regarding enforcing compliance with the franchise agreement. It is important for franchisees to be aware of each parties’ rights and obligations: the new franchisor may not, for instance, have the right to introduce new fees or vary the amount of fees under existing franchise agreements, but it may have rights to change daily operating procedures through the manuals. Franchisees should remain calm, embrace the changes positively and seek advice. F

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Opinion THE SKETCH | TRENDS AND DEVELOPMENTS

Growing pains - the pros and cons of emerging franchises

G ANDREW TERRY Professor of Business Regulation at the University of Sydney and consultant to DC Strategy

riffith University’s Franchising Australia 2012 Survey contains, as usual, much interesting material. Of particular interest in the context of this column is the growth in the number of franchise systems from the last survey—a significant increase from 1025 systems in 2010 to 1180 systems in 2012 – that is three new franchise systems every two weeks. This is a remarkable achievement. While some of these 155 new systems will have been implemented by long established businesses which have introduced a franchise model for their future expansion, the vast majority will be relatively new businesses servicing new market niches or existing market niches in innovative ways. Emerging franchise systems are of course vital to the development of Australia’s franchise sector. Sector development is driven in part by the consolidation and expansion of existing franchise systems but it is the emergence of new systems which invigorates, through developing new and innovative concepts, introducing new ideas, meeting changing consumer demands and providing competition to the entrenched systems, which drives better overall sector performance. While much of the energy and excitement in franchising comes from the emerging systems, there is of course a

Emerging franchise systems are of course vital to the development of Australia’s franchise sector potential downside of which prospective franchisees need to be aware. The undoubted success of franchising is built on the cloning of proven concepts, brands, systems, training and support. This column has repeatedly emphasised the important of the “p” word - the qualifier that the elements of the franchise package are proven. Franchising is not a miracle cure or a magic formula. Its success is built not on the fact that a business embraces franchising but that the business embraces good and responsible franchising which

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demands that all the elements of the franchise package have been proven. Systems should be designed and tested and refined in the franchisor’s own prototype business and pilot operations rather than on the experiences of the early franchisees. So the finding of the Griffith Survey that most businesses are piloted for four years before franchising is important. The franchisors of these systems have a track record of business operation. Prospective franchisees can take some comfort from the fact that there is a history of business operation on which the franchise system has been built. The Griffith Survey nevertheless records that 18 percent of franchisors commence franchising within the first year of business operation and 16 percent begin franchising immediately. Your columnist is not suggesting that franchise systems that have not been built from prototype business operations should be avoided by prospective franchisees but the need for rigorous due diligence in such cases is particularly compelling. There is of course a big difference between ‘emerging’ and ‘embryonic’ systems. For the purpose of the Excellence in Franchising Awards an emerging system is one that has been franchising its brand for between two and four years. An emerging system may offer a range of features that are attractive to a prospective franchisee; not only a new business concept, lower entry costs, wider location choice and the opportunity to grow with a growing system but also a track record of performance on which comprehensive due diligence can be undertaken. An embryonic franchise system - one which has only recently begun franchising and has no, or very few, franchised outlets – is a much more challenging proposition for the prospective franchisee. Without a track record of franchising there can be no confidence that the system is proven. Of course all of Australia’s 1180 systems originally started out with no franchisees and there are very real first mover benefits which accrue to the early franchisees in embryonic systems which blossom and flourish. But for many prospective franchisees a track record of performance will be a sensible prerequisite. F

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Opinion PEOPLE | LEADERSHIP

Creating a high performance team

I GREG NATHAN Psychologist, managing director of the Franchise Relationships Institute, public speaker and author of Profitable Partnerships

n sport, the performing arts and in business, it is not just the most talented teams that win but also the teams that work most effectively together. The truth is the best sports teams, bands and businesses don’t always have the best people. What they do have is a mix of talents and skills which blend well together. Ringo Starr of the Beatles and Charlie Watts of the Rolling Stones were never highly talented drummers. What they were great at was supporting the more creative members of their respective bands with a reliable, back beat. Psychologists have found that the most effective teams have certain characteristics. The first is diversity. The second is tolerance and appreciation of this diversity. The third is shared values. And the fourth is good leadership. Let’s look at these more closely.

Why diversity matters

Whenever you find a high performing business team, you will probably find a balance of the following: • Outgoing, action-oriented people and quieter, more reflective people. • Creative, chaotic people and organised, disciplined people. • Big picture, strategic thinkers and detail-minded thinkers. • Sharp, data focused people and soft, peoplefocused individuals.

If people on your team don’t learn to respect and even admire their differences you will soon be in trouble If you are lucky enough to work as part of a high performance team, chances are you recognise this type of diversity in your group. What is interesting is having too much of one characteristic can be fatal. For instance, while a retail business where everyone is focused on pleasing customers may sound great, if there aren’t also people promoting the business, ordering the right stock at the right price and ensuring the cash flow is managed, this retailer will soon be out of business.

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Tolerating and appreciating differences While diversity is vital, if people on your team don’t learn to respect and even admire their differences you will soon be in trouble. This is especially important if a team is working under pressure, because this can lead people to become short tempered and judgmental. The main goal of team building activities is to highlight the importance of diversity and to provide members with a better understanding of what makes each other tick. Hopefully this means people will be less likely to judge others who behave differently to them. Sharing results on personality tests such as the DISC and the Myers Briggs can be useful to encourage this type of tolerance.

The power of shared values

Values are simply the things that are important or valued. These are the principles that everyone agrees should guide our behaviour, particularly when there is no clear cut policy on the right thing to do. When everyone is clear on what’s important and practises this, you have a strong culture because culture is “how we do things around here.” The positive buzz you feel when you go into some businesses is often a reflection of these shared values being understood and practiced. Having a strong set of values can also give people a sense of purpose. And this leads us to good leadership.

The best leadership is no leadership

The function of leadership is two-fold - to provide a team with a clear sense of purpose and co-ordinate the talents and efforts of people in the team so they can effectively achieve their purpose. While leadership is usually carried out by an individual, if the purpose is clear and the team has a clear set of values, the co-ordination can be shared. In fact in diverse teams where people have high levels of awareness and respect for their different talents, people can virtually manage themselves, deciding who is the best person to achieve the different things that need to be done. We call these self managed teams and they are the highest form of teamwork. Now that is a worthy goal to aspire toward, don’t you think? F

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Glossary A guide to the key terms used in franchising Disclosure Document: this document provides information about a franchise system, the franchisor and the franchised business. It must be supplied to a prospective franchisee, in accordance with the Franchising Code of Conduct. Due diligence: a thorough examination of the franchise business before purchase. Franchise: a business model with four criteria: a franchise agreeement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the durisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil. Franchise agreement: the business contract between the franchisor and franchisee. Franchisee: an individual who runs the franchised business using the intellectual property of the franchisor. Franchise fee: this is an up-front cost paid to the franchisor and covers the use of the brand name and operating system required to operate the business. Franchisor: grants permission to the franchisee to conduct business using its intellectual property; brand name, methods of operation and marketing. Franchise term: this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity.

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Greenfield site: a brand new site. License: the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise. Local area marketing: [LAM] this is marketing the franchisee is responsible for conducting in the franchise territory or designated marketing area. Marketing and advertising levy: a regular flat or percentage based fee paid into a centralised advertising or marketing fund. Master franchisee: a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisorâ&#x20AC;&#x2122;s systems and methods are applied. Multi-unit franchisee: a franchisee granted the rights to operate more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators. Operations manual: the franchiseeâ&#x20AC;&#x2122;s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information. Regional franchisee: similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area. Renewal: once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further

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term. This process is bound by the Franchising Code of Conduct and there is no automatic right of renewal. Royalty: fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support. It may be a flat fee or a percentage of sales or profit. Termination: the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement. The Franchising Code of Conduct: A mandatory Code that governs franchising in Australia and is designed to guide the behaviour of franchisors and provide certain protections to franchisees. It is administered through the Australian Competition and Consumer Commission (ACCC). Total investment: the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required. Turnkey franchise: a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading. Working capital: the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.

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Checklist How to|Ending the agreement

TO DO LIST | HELP GUIDE

Get help Franchise failure Before you go any further, seek advice Like any business, your franchise (or the from an accountant, lawyer and business franchisor) could fail. If the franchisor adviser who specialise in franchising. The fails, this could seriously affect your network of Business Enterprise Centres business. For example: Are you confident the franchisor? 11. What are the Australia franchisee(www.beca.org.au) and throughout • You could loseinyour right to franchisor obligations? can also give you some useful advice. trade under the franchisor’s We also suggest that you enrol in a brand name Have you seen a disclosure franchise education course. • You may be unable to obtain stock, document? 12. What training is available andThe Australian Competition and Consumer Commission if the franchisor provides this who pays for it? (ACCC) has funded a free, online course • The no longer be able Have youfranchisor evaluated may the financial for prospective franchisees which can to provide training or marketing returns? 13. Who owns the intellectual property be accessed via www.franchise.edu.au/ support and what is licensed to the franchisee? following: pre-entry-franchise-education.html. The • Customers may not want to deal with 4. Do you know all the expenses fi ve-module course is administered by you because of uncertainty franchisees are required to pay? 14. What marketing will the Griffith University and gives you a good • If the franchisor holds the lease on your franchisor implement? overview of every aspect of franchising, premises and has sublet to you, you 5. Have you worked out your including termination and end-of-term could lose your right to occupy the operating costs? 15. Who pays for the marketing? arrangements. premises if the franchisor loses its rights The ACCC promotes compliance • Although the franchisor might 6. Do you know the term of the 16. What theFranchising dispute resolution process? withisthe Code and the have failed, you might have to reasonable written notice of the proposed agreement? Competition and Consumer Act by meet continuing obligations to its termination, and the reasons for it. 17. Do you know what it is like to be informing franchisees, franchisors and administrators or the like and to The Code also specifies special 7. Is the business operating from aprospective franchisee? franchisees of their rights other suppliers and landlords – and circumstances in which the franchisor can fixed or mobile premises? and obligations under the Code and to your employees. terminate the agreement immediately. the you Act,assign and enforcing them where These include where the franchisee 18. Can the franchised you working within a territory? business? necessary. The ACCC has a number disclosure document needs to becomes bankrupt, voluntarily abandons 8. Are The Ifinclude so, is the area exclusive? of free publications designed to assist a signed director’s statement the franchise or operates the franchise in a prospective franchisees, including a that the franchisor is able to meet its way that endangers public health or safety. 19. How can the franchisor or franchisee terminate theManual Franchise Agreement? 9. Are youThis restricted in your product Franchisee and a Franchisee debts. statement either needs Many franchise agreements don’t purchase? Start-up Checklist. Both are available to be supported by an audit by a provide for the termination of the online at www.accc.gov.au/franchising registered auditor or accompanied by 20. What agreement by the franchisee. If this is the restrictions are there on the or by calling ACCC operating small business theyou franchisor’s financial case, the franchisee may only be able to 10. Are franchisee andthe guarantor required to reach a reports for the on 1300 302 021. F last two fiperformance nancial years. If the franchisor exit the agreement early by transferring ahelpline similar business? minimum level? gives you its financial reports, look at the agreement to another party. them closely with an accountant and try So remember: before you jump on the Dr Michael Schaper is deputy chairman of to assess the franchisor’s train, make sure you’ve got a good idea the Australian Competition and Consumer [with thanks to Mason Sier Turnbull] financial health. of how to get off. Commission must also give the franchisee a reasonable opportunity to remedy the alleged breach (not more than 30 days). If the breach is remedied in that time, the franchisor is not allowed to terminate the agreement 1. as a resultBefore of that breach. you Some franchise agreements allow the purchase your franchisor to terminate the agreement 2. franchise you even in the absence of a breach by the need tick offbefore franchisee. In these to circumstances, terminating franchise agreement, allthethe must-do 3. the franchisor must give the franchisee items. Check the

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A-Z listings Searching for a particular franchise? Use this showcase of franchise systems to find out some key details about the business opportunities available, all in alphabetical order for easy referencing

Online directory

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To be part of the A-Z listings, please contact David Strong: email - david.strong@reedbusiness.com.au phone - 02 9422 2905; mobile - 0411 366 656

Phone: 1300 766 202 Fax: 02 9415 5399 Contact: Helen Souvlis or Ian Skeoch Email: info@anytimefitness.com.au Website: www.anytimefitness.com.au

Phone: 1800 816 618 / 0408 325 544 Fax: 07 5457 0725 Contact: Kerry Hamwood Email: amazingclean@msn.com Website: www.amazingclean.com.au

Start up costs from: $236,000 to $420,000

PROFILE: Amazing Clean developed the Ultrasonic Blind Cleaning & Repairs industry 15 years ago, and with over 70 franchises in Australia and NZ, is recognised by major blind manufacturers and retailers, as the only professional group that can clean and repair all types of internal & external blinds.In fact we are the only franchise in the World that do what we do. In 2005 we introduced Curtain cleaning, recognising that there was a need for such a professional service, this has doubled the franchisees profits and to maximise profits even further, we added 3 other services, Upholstery, Leather and Mattress Cleaning.

PROFILE: Anytime Fitness is one of Australia’s fastest growing franchise networks, with over 200 local clubs open in 4 years. The efficient Anytime Fitness business model benefits from low monthly fees, low staff numbers and exclusive territories. With Anytime Fitness, you’re in business for yourself, but not by yourself. With over 1900 clubs open worldwide, a proven track record and over 55% of our franchisee owning more than 1 club.

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

Phone: 1300 550 155 Fax: 03 8878 2222 Contact: Gary Powell or Paul Deylen Email: franchising@autobarn.com.au Website: www.franchise.autobarn.com.au

Start up costs from: $43,500 + GST

Start up costs from: $350,000-$425,000 + stock

PROFILE: FCA EMERGING FRANCHISOR OF THE YEAR 2011 Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? ATS are Australia-wide 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 36 franchisees grow profitable and successful businesses. No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

PROFILE: Autobarn is an award winning national franchise system established in 1985. With 104 stores, Autobarn is Australia’s largest franchised automotive parts and accessories retailer. Autobarn is the premium retail brand of the Automotive Brands Group, which in turn is a part of the Metcash group (IGA, Mitre10). The Automotive Parts and Accessories market continues to enjoy strong and sustained growth and Autobarn continues to grow its share of this dynamic, fun, and broad market. Extensive marketing and advertising Huge group buying power Sophisticated franchisee

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management support systems An accredited franchise with NAB and Bankwest

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A-Z listings Phone: 1300 309 759 Fax: 03 9811 6100 Contact: Franchise Recruitment Team Email: franchiserecruitment@bakersdelight.com.au Website: www.bakersdelight.com.au

Phone: 0417 077 633 Contact: Michael Payne Email: michael.payne@dunkinbrands.com Website: www.baskinrobbins.com.au Start up costs from: $190,000

Start up costs from: $300,000+ PROFILE: Bakers Delight, Australia’s most successful bakery franchise was established in 1980. An Australian owned company, Bakers Delight boasts over 700 bakeries employing more than 15,000 people, serving 2 million regular customers per week throughout Australia, New Zealand and Canada. The network is seeking passionate people who are ready to embark on business ownership immediately or to begin training for future opportunities through our structured training program. Bakers Delight has a 13.8 per cent share (Roy Morgan single source data May 2012) of the $2.8 billion Australian bread market.

PROFILE: Baskin-Robbins® is the world’s largest chain of ice cream specialty stores, renowned for high quality, premium ice cream, specialty frozen desserts and beverages with nearly 7,000 restaurants around the globe. Baskin-Robbins® is an exciting “Family” brand featuring the most unique, innovative and indulgent products available. Baskin-Robbins® is looking for outstanding, motivated individuals seeking a fun and rewarding business; as we believe that people are the most important ingredient in making an enterprise successful. We have flexible fit-out concepts – to suit Iconic Locations through to existing businesses wanting to create a second income stream with a truly international brand name.

Phone: 03 9439 5594 or 0419 494 480 Fax: 09 9439 5594 Contact: Rod Parker Email: rparker@bedshed.com.au Website: www.bedshed.com.au

Phone: 02 9690 0120 Contact: Zoran Markovic Email: zoranm@book-now.com.au Website: book-now.co

Start up costs from: $350,000-$600,000 PROFILE: Bedshed is one of Australia’s most successful and profitable bedding retailers. Bedshed will assist the right person in their purchase of the right store where they will use our accredited franchise model; tried, tested and perfected during our 30 year history. Our highly profitable franchise model is accredited with both Westpac and Bankwest, so you can rest easy. We have 39 stores across five states and are currently expanding our franchise network on the east coast of Australia. We are committed to securing the future of our franchisee partners by growing our network of stores and increasing our customer base. As Bedshed continues to expand, we deliver greater marketing clout and buying power for our franchisee partners.

PROFILE: Book-now is a leading cloud-based Operations Support System designed specifically for mobile franchises: • Save many frustrating hours of administration and paperwork by automating repetitive tasks • Improve sales with customer relationship management (CRM) and marketing features • Spot-on business reports with graphical charts to keep track of performance • Easy to use because it works the way you do • Includes state of the art office-side system • Uses tablet computers (Apple/Android) and smart phones in the field • It is the most flexible and cost effective system available No set up charge, only a monthly per user charge.

Owning a Bedshed franchise enables you to secure your financial future and choose your desired lifestyle.

Phone: +61 418 500 721 Contact: Andrew on 1800 634 227 Email: andrew@briantracyanz.com Website: www.briantracyanz.com

Phone: 02 9451 3260 OR 1300 CAFE2U Fax: 02 9451 2105 Contact: John Stanton Email: jstanton@au.cafe2u.com Website: www.cafe2u.com.au

Start up costs: Investment is $44950 or $89950 PROFILE: As a Licencee, you are welcomed to an exclusive team of business advisors based around the world. You will be well trained in the area of business development, corporate training and coaching. You are then able to grow a substantial and profitable business through purchasing programs from the Brian Tracy International suite on a wholesale basis . The key areas of focus are professional development, sales and leadership development, and these programs are provided on a fee for service or government funded basis. They are delivered primarily in fast-moving interactive workshops or in coaching sessions. Brian Tracy International is recognised as one of the world’s premier training and development companies.

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Start up costs from: $129,600 + GST PROFILE: Australian owned Cafe2U is the world’s largest mobile coffee company, with over 130 franchises in Australia and 200 worldwide. The business is rapidly expanding due to a simple and proven business model based on weekday success. Cafe2U now includes the unique “Acceleration Package”, which fast tracks the new business forward three months. The “Acceleration Package” includes a four week training programme, a personal franchisee coach, revenue guarantee and an ongoing support package. Offering free events co-ordination and strong marketing and digital support, Cafe2U provides a perfect system for all looking to change their lifestyle and be their own boss, without the hassles of staff or rent. Contact Cafe2U now should you wish to make a lifestyle change.

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A-Z listings Phone: 1300 300 480 Fax: 02 9956 7789 Contact: Richard Stewart Email: richard.stewart@acegroup.com Website: www.combined.com.au

Phone: 03 8645 5500 Fax: 03 8645 5555 Contact: Andrew Murdoch Email: info@cosmos21.com.au Website: www.cosmos21.com.au

Start up costs from: $150 PROFILE: Combined Insurance is a leader in accident and sickness insurance. Our Authorised Representatives focus on working with our customers to gain an understanding of their requirements and assist in identifying their specific needs, then offering them a number of coverage options at a good value. We take pride in providing insurance plans that are clearly written and easy to understand. Established in 1922, Combined Insurance is part of the ACE Group of Companies®, one of the leading global providers of insurance and reinsurance. We are a signatory to the General Insurance Code of Practice.

PROFILE: The COSMOS 21+ Group is a provider of innovative leading-edge information technology products and associated services, with particular emphasis to the hospitality and retail food sector. Products and services offered by the COSMOS 21+ Group are ‘best-in-field’ and include BrandM8 (a Food Safety and Checklist Management System for mobile devices), Mobo2go (a POS independent mobile and web-based ordering platform for hospitality and retail food outlets), and Book-keeping Services (a comprehensive book-keeping/administrative and financial reporting service). With a client base including many of Australia’s leading retail brands the COSMOS 21+ Group is truly a market leader in providing end to end information technology services.

Phone: 07 3633 3318 Fax: 07 3633 3399 Contact: Anna Davis Email: anna.davis@dominos.com.au Website: www.dominos.com.au/franchising

Phone: 02 8220 8700 / 03 8102 9200 Fax: 03 8615 7298 Email: growth@dcstrategy.com Website: www.dcstrategy.com www.dcslawyers.com.au

Start up costs from: $380,000+ PROFILE: DC Strategy is Australasia’s foremost franchise specialist with a reputation for developing the franchise systems and documentation for many of Australia and the world’s leading franchise networks. DCS Lawyers is a franchising specialist in corporate and commercial law with a proven track record of providing practical, high quality, cost effective legal advice. Our highly experienced team assist franchisors, franchisees & business owners with:

PROFILE: At Domino’s we see ourselves as the Pizza Experts, and focus all our energy and passion into making and delivering the hottest, freshest and tastiest pizzas. As a New Franchisee, you are about to embark on a journey to become a Pizza Professional. We are the market leaders in most neighbourhoods and we need to continue to rise to the occasion of exceeding our customers expectations. If you think you’ve got what it takes, contact us today for more details about becoming part our family.

sell a franchised business or network - call us now.

Phone: 02 9332 2824 Contact: Holly Boal Email: holly@enviefitness.com.au Website: enviefitness.com.au

Phone: 1800 662 663 Fax: 02 9807 2033 Contact: Evan Foster Email: efoster@ufgcorp.com.au Website: www.embroidme.com.au

Start up costs from: $100,000 + monthly leases

Start up costs from: $200,000

PROFILE: EmbroidMe is part of the world’s largest embroidery, screen printing and promotional products with more than 300 locations around the world in 12 countries. With more than 36 locations across the country we are also Australia’s largest embroidery franchise.

PROFILE: Don’t buy a fitness franchise without exploring this exciting opportunity. EnVie is the innovative new approach to inspirational Women’s Health and Fitness. With sites ready for opening across the eastern seaboard we are seeking enthusiastic and passionate business owners NOW; with a determination to succeed and a passion for health and fitness.

As part of a $50bn a year industry, we are a B2B franchise that offers Monday to Friday trading, low staff and inventory, great margins and a clean working environment.

Incorporating the best elements from a range of franchise models an EnVie business is completely systemised. An innovative new franchise model means franchisee and franchisor have the mutual goal of your SUCCESS.

We’re at the forefront of the corporate uniform and branding revolution, helping companies all across Australia look professional and promote their business. Franchising opportunities available Australia-wide.

The business is further supported by extensive training and ongoing coaching from a team of fitness, business, franchise operations, marketing and sales experts with a combined 127 years of experience in the franchise and fitness industries.

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A-Z listings Phone: 1300 FASTWAY Fax: 02 9264 4966 Website: www.fastway.com.au

Phone: 03 9533 0028 Fax: 03 8640 0413 Contact: Andrew Kelly Email: andrew@fcbusinesssolutions.com.au Website: www.fcbusinesssolutions.com.au

Start up costs from: $25,000

PROFILE: Kick start your new career as a Fastway Couriers Franchisee. Want more control over your income and a rewarding career? A Fastway Couriers Franchise can help you take control of your future. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • • • •

Low start up costs Guaranteed income packages* A well known and trusted brand No weekend work

• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees

So, if you’re ready for a positive change we’d love to hear from you.

PROFILE: FC Business Solutions is the only integrated franchise consultancy focussing on executive recruitment, franchise health checks, public relations & marketing, franchise system development, franchise training, advisory & mentoring, franchise expansion & growth and conference & event management, exclusively for the franchise community and other industry sectors. FC Business Solutions and its team of professionals have been providing professional services to the franchise sector for more than 75 years (combined). FC Business Solutions has built a reputation based on relationships and results, assisting franchise businesses to reach their full potential.

*Ccondiitions apply

Phone: 1300 798 501 Fax: 1300 798 502 Website: www.franchiselegal.com.au

Level 5, 530 Collins Street, Melbourne, Victoria 3000, Australia. Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja Email: kevin@franchiseselection.com.au Website: www.franchiseselection.com.au

Contact Melbourne: Ilya Furman Email: ilya.furman@franchiselegal.com.au Contact Sydney: Heath Adams Email: heath.adams@franchiselegal.com.au Contact Brisbane: Maurice Hannan Email: maurice.hannan@franchiselegal.com.au

PROFILE: Franchise Legal is a commercial law firm which practices exclusively in franchising. Our lawyers offer extensive legal and commercial experience in the industry, having worked with many leading franchise systems in Australia and internationally. We act for both franchisors and franchisees in all matters affecting their business.

PROFILE: Franchise Selection is the leading franchisee recruitment company in Australia that assists potential franchisees through the interview and selection process. We offer potential franchisees a wide selection of franchises covering all industries including retail, food, automotive, telecommunications, construction and even service franchises. We pride ourselves in being leaders in our industry and our approach is not to sell franchises but to educate and assist buyers in finding the right business opportunity for them and to assist franchisors in selecting the very best franchisees.

QLD/NT: Murray Kahler - 07 5440 5440 NSW/ACT: Jarrod Blamey - 02 9453 3844 SA/WA: Dean Lindstrom - 08 8266 6506 VIC/TAS: Ross Morley - 03 9338 5588 Website: www.gjgardner.com.au

Phone: (02) 9846 0374 Contact: Jenny Colla Website: www.gloriajeanscoffees.com.au

Start up costs from: $200,000 - $250,000 PROFILE: GJ Gardner Homes the leading franchised home builder in both Australia and New Zealand, is also experiencing strong growth in the USA. Specialising in taking the smaller builder or a partnership of builder and business person then giving them the tools, software and support to compete in the volume market this successful formula sees thousands of new homes built each year under the GJ banner. The success is built around the combining of the business person/builders ‘local’ contacts, knowledge with the proven GJ Gardner Homes training, support and marketing to take their business to a new level.

PROFILE: Gloria Jeans Coffees is an Australian-owned brand that is loved and respected around the world. With over 900 stores in more than 39 countries, we’re the world’s fastest growing franchise, serving millions of customers every week. But there’s more to our brand than these impressive statistics. There’s a culture of collaboration, for starters. There’s the family-style support network. There’s the drive to source and serve the best product around, providing our customers with the ultimate coffee experience. Because at heart, what our franchise partners share is a belief that better coffee makes a better world. If that interests you, we’d love to hear from you.

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A-Z listings Phone: 03 59734044 Contact: Andrew Roberts Email: andrewroberts@greyarmy.com.au Website: www.greyarmy.com.au

Phone: 0407 646 179 Contact: Nicholas Bernhardt Email: info@greenbizcheck.com Website: www.greenbizcheck.com

Start up costs from: $32,500

Start up costs from: $38,500 inclusive

PROFILE: The Grey Army is one of the most trusted brands in the home service and property maintenance industries. Consisting of Franchisees and individual service providers, the Grey Army services hundreds of domestic and commercial customers every day right across Australia. Our philosophy is to put real customer service back into a field which seems to have forgotten it exists and to share in the Grey Army motto of ‘Old Fashioned Values and Integrity.’

PROFILE: GreenBizCheck provides fast, affordable, world-leading annual green business sustainability programs scrutinized by universities, environmental agencies, governments and major corporations that maximize an organization’s green credentials with a 100% money back guarantee.

If you are looking to build your own business but would like the experience, training, ongoing support and services of one of Australia’s most trusted brands behind you, the Grey Army could be for you.

GreenBizCheck now needs you and your expertise to become Australia and New Zealand’s most recognised environmental standard. You will be supported by a dedicated and passionate management team in building this exciting low cost franchise.

Phone: 07 5515 0119 Fax: 07 5500 3716 Contact: Geoff Biddle Email: mail@groutpro.com.au Website: www.groutpro.com.au

Phone: 03 9234 2200 Fax: 03 9234 2266 Contact: Dean Salomone Email: franchising@hairhousewarehouse.com.au Website: www.hairhousewarehouse.com.au

Start up costs from: $29,950 + GST & vehicle

Start up costs from: $500,000 (inc stock)

PROFILE: Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and re-colours old grout saving customers time and money without having to re-tile. Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information.

PROFILE: 2011 FCA Winner – Established Franchisor of the Year. The Hairhouse Warehouse concept was first developed in 1992 at Knox City Shopping Centre, Melbourne. Over the past 20 years Hairhouse Warehouse has grown to over 140 stores Australia wide and has been listed for the last 7 years in BRW as one of the fastest growing hair & beauty franchises in Australia. The combination of the largest range of hair & beauty products along with professional salons and beauty services has proven highly successful. Hairhouse Warehouse is embarking on an aggressive expansion plan to lead the industry in product, store locations and services.

Phone: 02 9542 2000 Fax: 02 9542 2100 Contact: Drew Arthur Email: drew@micronet.com.au Website: www.harmoniq.biz

Phone: 02 9224 0428 Contact: Zoran Radisavljevic Email: franchising@healthyhabits.com.au Website: www.healthyhabits.com.au Start up costs from: $250,000 - $350,000

PROFILE: Harmoniq is revolutionary sales, accounting and business management software for Franchises, brought to you by leading software provider Micronet Systems. It’s simple, powerful, and extremely flexible and is the first product of its type that can be truly personalised to suit the way you want your business and your people to work, every time.

PROFILE: Healthy Habits is an Australian sandwich franchise with a difference. With over six out of ten Australians currently overweight or obese, we want to show Australians that healthy food can be delicious too.

Incorporating Financials, Commercials, Marketing, BI Dashboards and CRM within a single system, Harmoniq will scale with your Franchise – never needing to be replaced – while delivering a professional IT and supply chain platform.

Our menu provides a twist on traditional favourites, using flavours like lemon myrtle, pepperberry and macadamias to bring excitement to the standard wrap, sandwich or salad.

Harmoniq is not only a revolutionary way for you to gain and maintain control over your more difficult business processes, but is also a new way for you to tune your franchise like never before.

At Healthy Habits we’re undertaking an ambitious market expansion and are looking for franchise owners seeking to turn their passion for a healthy lifestyle into a living. Call today for an initial conversation about opportunities available across Australia and New Zealand.

‘Tune Your Franchise’ with Harmoniq to strengthen your brand and Franchise values.

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A-Z listings Phone: 07 3878 5677 Fax: 07 3878 5066 Contact: Ben Stoltz, Managing Director Email: ben@janiking.com.au Website: www.janiking.com.au

Phone: 02 9452 8888 Fax: 02 9452 8899 Contact: QLD - Elvio DiZane 0411 868 202 NSW/VIC/TAS - Chad Braithwaite 02 9452 8888 Email: chad@hsw.com.au Website: www.hsw.com.au

Start-up costs from $15,000 ex GST

Start up costs from: $500,000+ PROFILE: Howards Storage World is a specialist retailer of innovative storage solutions for the home, office and garage. The range of stylish and functional storage systems include racks, shelving and wardrobes. There are now over 50 Howards Storage World stores around Australia. The Howards Storage World franchise operation is tightly structured and provides franchisees with a high level of support including: initial five-week training program, on-going training and support with our team of regional managers, merchandisers, marketing team and buyers. This is coupled with our scheduled franchisee meetings, high-profile site selection, national group buying power as well as access to a strategic monthly marketing campaign which includes our annual catalogue.

PROFILE: In a field full of mostly fast food franchises and fast moving consumer goods, Jani-King Commercial Cleaning offers a refreshing and welcome investment opportunity. More than 850 active Jani-King Franchisees are operating across Australia and New Zealand, supported by a network of Regional Offices in most capital cities. The attraction of a Jani-King Franchise is its low entry fee – with opportunities starting from $15,000 ex GST – and global, professional presence. All Jani-King Franchisees receive extensive, ongoing training and are supported by a Regional Manager, Operations Manager and Administration Team that takes care of the paper work for them, so they can get about the business of cleaning-up. It’s what makes Jani-King Commercial Cleaning “the King of Clean!”

Phone: 02 8205 1334 Fax: 02 8205 1335 Contact: John Cabral Email: enquiries@jempp.com.au Website: www.jempp.com.au

Phone: 131 546 Contact: Theunis Terblanche Email: franchise@jimsbuildingmaintenance.com.au Website: www.jimsbuildingmaintenance.net

Start up costs from: $99 per month

Start up costs from: $28,000 to $40,000 Depending on the Region and Territory

PROFILE: JEM Promotional Products can handle all aspects of your Uniforms and Merchandise range from the supply of products to the management of a customised Online Store that your franchise locations can log on to and order your range online. We can even handle the warehousing and distribution of your products. Other benefits of an online store include ensuring your branding remains consistent across all locations, gaining group buying power and economies of scale and most importantly making your range accessible and easy to order online.

PROFILE: The Jim’s Group consists of about 32 different divisions with more than 3,200 Franchisees. Joining Jim’s is the best decision you can ever make if you are looking for a Lifestyle business where you prefer to work at your own time and pace. Having the Jim’s logo displayed on your vehicle or trailer is almost like having a Grandpa’s comforting hands behind you as you are enjoying the support of a very well-known Australian owned brand. Franchise opportunities exist in all states.

We can even integrate an online payment system so that payments are collected automatically.

Phone: 1300 227 853 Contact: John Newton Email: franchisesales@partycastles.com Website: www.partycastles.com

Phone: (AUS) 02 8522 1408 Fax: (AUS) 02 9527 5144 Contact: Luke Manning Email: bdm@justcuts.com Website: www.justcuts.com

Start up costs from: $45,000

Start up costs from: $160,000 to $240,000

PROFILE: Jumping J-Jays are offering more than ever to their customers with the introduction of a bunch of new themes. This means that Jumping J-Jays are presenting more opportunities to their franchisees for rentals. Existing Franchises now available from $45,000 including 20 themes. Add to this our turnover Guarantee of at least $100,000 in your first year. At this level you have a breakeven point of 4 deliveries a week. 80% of our current franchisees deliver 8 or more every week.

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PROFILE: 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 Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 65,000 Style Cuts™ a week! Just Cuts™ operate on a no appointment, no request system, quality Style Cuts™ cut and at an affordable price. Contact us today to find out how. Join the largest Hairdressing Franchise in the Southern Hemisphere.

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A-Z listings Phone: 1300 737 978 Fax: 03 9005 2991 Contact: Mr. Brijesh Purohit Email: franchise@keentoclean.com.au Website: www.keentoclean.com.au

Phone: 1800 251 680 Fax: 02 9967 5511 Contact: Hedley Partis Email: franchise@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise

Start up costs from: $25,700 + GST

Start up costs from: $210,000

PROFILE: Keen to Clean is an innovative, professional and committed market leader in all forms of cleaning, both residential and commercial. We offer a truly unique path for a franchise owner to grow with the system and the opportunity to expand their franchise operations.

PROFILE: A Kwik Kopy franchise is your path to a successful new business. And what’s more, you don’t require any print experience to take on a Centre.

Keen to Clean has enjoyed strong growth in Melbourne through franchise sales over the past few years, in the coming years Keen to Clean wish to expand the franchise operation throughout Australia. With many franchise offers there is a franchise to suit anyone, whether you are the type of person who could take on a master franchise or simply buy and operate a general franchise we have something to suit you.

A highly established and recognised brand, Kwik Kopy has been operating in Australia for over 25 years and has an extensive network of Centres in regional and metropolitan locations Australia wide.

Kwik Kopy is a B2B print and design provider, focussing on the small to medium business market.

The benefits of becoming a Kwik Kopy franchisee include: • Award winning franchise model • Strong brand and on-going marketing solutions • Regular working hours Mon-Fri • Extensive training and on-site assistance

Phone: AU - 1800 333 270 NZ - 0800 333 270 Fax: 03 9824 7154 Contact: James Archer Email: jarcher@lma.biz Website: www.lma.biz

Phone: 1300 2 MR WOW / 07 5464 1130 Contact: Julie Email: franchise@mrwow.com.au Website: www.mrwow.com.au Start up costs from: $25,000 - $41,500 includes van

Start up costs from: $73,940

PROFILE: Mr WOW franchisees own their own exclusive territory business within the domestic and commercial cleaning sector.

PROFILE: LMA has been creating exceptional results through people for over 40 years. Founded by our Executive Chairman Grant Sexton in 1972, and now led by our CEO Andrew Henderson, LMA is an Australian-owned business that works with organisations throughout Australia and New Zealand to improve their bottom line by:

They can generate their own income using the tried and proven formula gained from Mr WOW’s 28 years’ experience. Extensive initial training and ongoing support is provided.

Developing the leadership and management skills of their key people Improving the performance and productivity of their people. As a Licensee in the LMA network, you will have access to market-leading products, world-class resources and support, superior quality facilitators, course coaches and venues kick-start learning F R 1and6 everything 8 8 _ Fneeded a c eto b o o kyour _ A - Z and . pdevelopment df P abusiness. ge

Trading as a mobile cleaning operation, with a minimum amount of administration it is easily managed from a mobile van or home office. The full range of services available makes Mr WOW the complete one stop cleaning service provider.

2 “Our 4 / cleaning 1 0 / work 1 2 services , 1 set 1 :the2complete 2 AM home clean excellence standard and creates the WOW factor every time!”

Limited opportunities are available across Australia and New Zealand.

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A-Z listings Phone: 1800 NANOTEK (1800 626 683) Contact: Franchise Recruitment Manager Website: www.nanotekcarcleaning.com.au

Phone: +613 8540 0200 Fax: +613 8540 0202 Contact: John Sier Email: john.sier@mst.com.au Website: www.mst.com.au

Start up costs from: $45,000 + Car Lease

PROFILE: Mason Sier Turnbull is widely recognised as one of Australia’s leading franchising law firms. We advise franchisors, franchisees and suppliers to the franchising sector on all aspects of franchising. We also act for new and emerging franchise systems and a multitude of business entrepreneurs who have invested in franchise businesses. Our relationships with reputable and professional franchise consulting and accounting firms allow us to confidently refer our clients to specialists for advice and services that are traditionally outside what law firms can offer.

PROFILE: Imagine the freedom and lifestyle of having your own mobile business and working from home – being able to clean a car anywhere and offer your clients the highest quality service at their home or office… This is the business reality of a Nanotek franchisee. Nanotek is the global leader in mobile car cleaning and detailing. Using exclusive polymer nanotechnology the Nanotek process encapsulates, lifts and removes dirt without scratching - it also leaves a protective coating which lasts up to 6 weeks. Because the process doesn’t require water, the Nanotek service can be performed anywhere – home, office, on the street, even on the showroom floor!. So whether you are after the independence and lifestyle of operating your own business, or the passive income that a fleet of nano-mobiles can provide, with Nanotek you can tailor your business to suit your goals.

Phone: 07 3387 8787 Fax: 07 3387 8788 Contact: Jason Dalton Email: jason.dalton@nightowl.com.au Website: www.nightowl.com.au

Phone: 1800 776 747 Fax: 1800 194 525 Contact: Darryl Morris Email: info@mynfib.com.au Website: mynfib.com.au

Start up costs from: $250,000 PROFILE: NFIB meets the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses.

PROFILE: NightOwl is Australia’s largest stand-alone convenience brand with franchising opportunities available nationwide in a range of demographics and business models.

Our service is fully automated, compliant and provides you with full documentation. Put simply, NFIB is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business.

The NightOwl Convenience footprint varies in size including high profile CBD and suburban locations of 50m2 to 200m2, offering impulse and convenience at its best. NightOwl Super stores offer “more choice and more value” in a distinctive large format sized between 200m2 to 500m2 offering a more in-depth shopping experience. NightOwl is a member of several buying groups with buying power of well over 1.5 billion dollars. This means NightOwl can deliver value to customers and provide guidance on maintaining strong profit margins for franchisees.

Phone: 1300 727 129 Fax: 02 8905 0933 Contact: Michelle Castelli Email: michelle.castelli@oporto.com.au Website: www.oporto.com.au

Phone: 03 9681 7435 Fax: 03 9681 7484 Contact: Joe Rossi Email: jrossi@orangeleafyogurt.com Website: www.orangeleafyogurt.com.au

Start up costs from: $450,000-$700,000 PROFILE: Oporto is a 100% Australian-owned fast food franchise that specialises in freshgrilled chicken and burgers. Oporto opened its first store in North Bondi in 1986, stunning the locals’ taste-buds, with its unique flavour profile. It quickly gained a growing army of fans, establishing the first franchised store in 1995. Today Oporto has over 140 stores in Australia, New Zealand, USA and China, serving over 13 million customers per year. Oporto has developed into a strong player within the quick service restaurant market over the past 2 decades and this growth is set to continue. Opening an average of 15 stores a year has ensured Oporto are one of the few companies to have featured in the BRW ‘Fast Franchise’ issue every year since its inception in 2004.

Start up costs from: $200,000-$350,000 PROFILE: 200+ successful stores worldwide and quickly growing, Orange Leaf Frozen Yogurt is a brand not to be ignored when choosing your next business venture. Our franchisees love us because of our intense commitment to being the most pro-franchisee company in the industry. We provide outstanding support that our franchisees need to succeed at a fraction of the cost of our competition. Orange Leaf Frozen Yogurt is one of the most demanded brands in our industry because of the superior taste and texture of our product and our family oriented, visually uplifting environment. Locations available Australia-wide, secure yours before someone else does!

Become part of this great Aussie success story - Just Gotta Go Oporto!

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A-Z listings Phone: 07 5532 7071 Fax: 07 5532 5351 Contact: Graeme Diamond Email: franchising@outbackjacks.com.au Website: www.outbackjacks.com.au

Phone: 1300 667 067 Fax: 1300 667 101 Contact: Clinton Capuzzi Email: sales@ordermate.com.au Website: www.ordermate.com.au

Start up costs from: $300,000 STYLE GUIDE

OrderMate Style Guide

Version 1.0 May 2011

PROFILE: OrderMate is the complete multisite franchise POS solution. OrderMate was established in 2001 to service the food and beverage POS market. Its success relies upon its uniqueness from the competition which is often generic and off the shelf. Easy to use front of house interface, whilst still giving you the powerful backend reporting to drive your business. OrderMate gives you the tools to track and manage the KPIs of your franchisees in real time. We have a proven track record of delivering a return on investment within 12 months. Our nationwide network enables us to rollout, service and support large scale projects.

PROFILE: Outback Jacks Bar & Grill is an exciting fully licensed, family style steakhouse which has been franchising since 2006. We have perfected the art of providing an amazing experience specialising in the growing family dining market and have now grown to 28 strong franchise restaurants around the country. We can provide full turnkey restaurants along with comprehensive training and support so no experience is required just a passion for great food and customer service. We have new sites available in all states and territories so if you have ever dreamed of owning your own bar & grill give us a call today.

Phone: 1300 OZETEL (1300 693 835) Fax: 1800 OZETEL (1800 693 835) Contact: Anthony Matejcich Email: anthony@ozetel.com.au Website: www.ozetel.com.au

Phone: 1300 OVENU 2 (1300 683 682) Email: enquiries@ovenu.com.au Website: www.ovenufranchise.com.au Start up costs from: $39,000 + GST

PROFILE: Ozetel are experts in providing telecommunication services to franchisors in Australia.

PROFILE: Ovenu the professional oven cleaning and detailing service. Established in 1994, Ovenu is the largest oven cleaning and detailing franchise in the world. Using biodegradable, non-caustic odour free products, developed exclusively for Ovenu, our system will return any oven back to showroom condition. Franchisees receive full training, back up and support. Generous territories are available in prime locations across Australia. • Full training and ongoing support. • Great Cash flow & Low overheads • Additional Income streams as a Certified Enduroshield Applicator. If you are looking for a highly profitable, low entry cost business that delivers great rewards and job satisfaction with the flexibility of being your own boss call us now.

13, 1300 or 1800 numbers - Activate a new number, purchase a phoneword or bring an existing number to Ozetel and receive very competitive rates, secure calls and unmatched customer service. Postcode Prompter Technology - Postcode Prompters allow the caller to enter a 4 digit postcode to be connected to their nearest franchise. Ozetel was one of the original developers of this technology 8 years ago. The advantages of this technology include efficient call routing, increased brand recognition, enhanced reporting and measurement of call flow statistics and differentiation from your competition. Other features include, custom design, call announcement, real time changes and individual billing for franchisors. Call now and Ozetel will set up a demonstration service for your franchise.

Phone: 1800 624 323 or 0414 633 423 Fax: 02 4739 0307 Contact: Ron Browne Email: ron@pizzainn.com.au Website: www.pizzainn.com.au

Phone: 02 4648 2099 Fax: 02 8569 1899 Contact: Nigel Miller Email: nigelm@plusfitness.com.au Website: www.plusfitness247.com.au

Start up costs from: $80,000

Start up costs from: $229,000 inc equipment

PROFILE: Established in 1985, PIZZA INN found a niche in the market for a hand made, traditional Napoletan style pizza that is made fresh to order.

PROFILE: With 69 Franchises sold in the past 18 months alone, Plus Fitness has a clear goal of establishing over 75 gyms by end 2012.

Since day 1 at PIZZA INN it has always been a matter of quality, so every PIZZA INN store is operated by dedicated owners, trained by the founders themselves.

Plus Fitness provides the most competitively priced 24Hour Gym Franchise with an initial investment from $229k including all gym equipment, aesthetic fitout, signage, access control and marketing.

With a proven system and great support, PIZZA INN prides itself on the passion to consistently deliver the freshest, tastiest range of products in the market today whilst providing excellent returns to a growing number of franchisees. Bring your passion and join us as the journey continues…

With proven operating systems, unrivalled franchisee training and support you are assured that your franchise will be success. A franchise model that provides fast breakevens, low staffing and impressive returns, Plus Fitness 24/7 is a ‘lifestyle’ business second to none. Exercise Your Freedom and contact us to find out more today!

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A-Z listings Phone: 1800 245 447 Fax: (07) 3217 8900 Contact: Jeremy Winter Email: joinourteam@poolwerx.com Website: www.poolwerx.com

Phone: 02 9953 7070 Fax: 02 9953 1212 Contact: Robin Lau Email: robinlau@postnet.com.au Website: www.postnetfranchise.com.au

Start up costs from: $89,800 + GST

Start up costs from: $150,000

PROFILE: Twice named Australian Franchisor of the Year (‘Services’ and ‘Outright’ categories), PoolWerx has a strong history of innovation both in franchising and its own business sector – the swimming pool and spa aftermarket – in which it is also multi-awarded. PoolWerx is especially well known for its creation of the world’s first structured ‘Career Path in Franchising’ enabling franchisees the opportunity to grow within a single marketing area or develop a million dollar business with multiple vehicles, retail stores and marketing areas.

Phone: 03 8603 6014 Contact: Greg Hodson Email: greg.hodson@au.pwc.com Website: www.pwc.com.au/industry/franchising

PROFILE: PwC is the market leading professional services firm in Australia. We have a dedicated team of franchise and business growth specialists able to help you set up and implement a comprehensive growth strategy to unlock and optimise the benefits of your business - no matter what your industry or the size of your business is. The PwC Private Clients Advisory team includes some of Australia’s most experienced advisors, with our team members having up to 30 years hands-on experience advising on growth, franchising, licensing and other distribution channels. Our team has built some of Australia’s most successful Franchise systems across the majority of industries and markets.

PROFILE: PostNet Business Centre is the One-Stop Solutions Provider offers: • Digital Services, such as custom graphic design, computer time rental, document & images scanning services and CD & DVD duplication services. • Copying & Printing Services including digital black & white and colour copies, wide format printing, complete business printing services, and document finishing services. • Packing & Shipping Services (Air/Sea/Land), include UPS®, FedEx®, DHL®, StarTrack/AaE® and Local Courier Services, including custom packaging and supplies. • Business and Additional Services including private mailbox rental, passport photos, facsimile services, office products & stationeries and International Money Transfer.

Phone: 1300 4 REDCAT (1300 4 733228) Email: info@redcat.com.au

PROFILE: RedCat is an Australian company, with an Australian development team, and have a history of leveraging our flexibility and integration capabilities to partner with clients to implement and develop unique solutions. We have been a leader in hospitality point of sale and accounting software since 1992, and can 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 solutions to provide the complete business management system. In particular, for the needs of franchised groups, we have developed an extremely flexible centralised management capability that permits multiple levels of control and reporting capabilities, from total head office management, through to localised management and web based consolidated reporting tools and a web based, (and mobile phone based), ordering system which is totally integrated into the Point of sale system.

Phone: 1300 763 020 Fax: 03 9878 8011 Contact: Harry Fares Email: sales@rent4keeps.com.au Website: www.rent4keeps.com.au

Phone: 03 9508 4417 Contact: Gavan Meadows Email: gavan.meadows@retailzoo.com.au Website: www.salsas.com.au Start up costs from: $400,000 to $450,000+GST

Start up costs from: $150,000 PROFILE: Rent4keeps is one of Australia’s fastest growing franchise opportunities that provides its customers with the home appliance and furniture products they want whilst making excellent profits along the way for its R4K franchisees.

PROFILE: Joining Salsa’s Fresh Mex Grill makes you part of the largest fresh Mexican food franchise in Australia. With 35 locations in just 4 years, it’s the brand that’s cooking up fast, delicious Mexican food people can’t get enough of.

The Rent4keeps rental system can be run from home, has no stockholding and is very profitable with franchises available across Australia and New Zealand.

All our salads, guacamole and vegetables are prepared from scratch every morning. Our marinated meats and fresh vegetables are cooked to order on our sizzling Mexican grill. Combine chunks of fresh broccoli and zucchini with the added burst of marinated flavours from our premium meats; it’s not hard to see why Salsa’s served over 3 Million customers last year!

Franchisees enjoy experienced franchisor support with full training and guidance before they launch their own Rent4keeps territory followed by strong ongoing support.

With the same proven growth platform, systems and structures that saw Boost Juices’ meteoritic rise to over 193 locations across Australia and now in 16 countries around the world, you can invest in a Salsa’s Fresh Mex Grill franchise with confidence.

R4K provides an easy to operate, no fuss system where satisfying its customers is paramount.

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A-Z listings Phone: 03 9428 1088 Fax: 03 9428 7055 Contact: Tony Maddock – services Adam Kernahan - lawyer Email: info@solutionsfranchising.com.au Website: www.solutionsfranchising.com.au

Phone: 08 83337750 Fax: 08 84316177 Contact: Mike Fuller Email: franchise@g7franchising.com.au Website: www.seniorhelpers.com.au Start up costs from: $65,000

We are offering exclusive territories nationwide and would love to talk to you about starting a Senior Helpers in Home Care business.

PROFILE: Solutions Franchising is providing the industry with the best value professional services available. We will help you with; Franchisee recruitment Training programs System development and maintenance Strategic planning Full legal services Australia’s easiest CRM coming soon

We are looking for motivated individuals who wish to run their own company, be a part of a reputable brand and work in this exciting and growing industry!

We operate all over Australia and have associates in India, Indonesia and Pakistan.

PROFILE: At Senior Helpers, our specialty is professional, warm and compassionate in-home care that enables our clients to live independently in the comfort of their own home. Whether they need us for a few hours or around the clock, we will always provide the kind of quality and responsive in-home care that lets them truly enjoy living independently at home.

Phone: Fax: Contact: Email: Website:

Phone: 1800 049 743 Fax: 1800 884 431 Contact: James Scurr Email: jscurr@silverchef.com.au Website: www.silverchef.com.au $200,000 PROFILE:

ProFilE:

Silver Chef has been helping businesses to fund their equipment needs for over two decades. Silver Chef’s Rent. Try. Buy.® Solution offers a simple 12 month term so that you have the flexibility to:

And if you are part of an accredited franchise, you will enjoy even greater benefits such as reduced rental bonds, rental discounts and pre-approval for all franchisees. Silver Chef Limited is a public company listed on the Australian Stock Exchange.

Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Nick Hudson Email: nicholas.hudson@snapon.com Website: www.snapontools.com.au

Phone: Fax: Contact: Email: Website:

Start up costs from: $37,000 with financing packages available

ProFilE:

PROFILE: Snap-on Tools Australia is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers and technicians across the country. Snap-on Tools is a wholly owned subsidiary of Snap-on Inc., a developer and manufacturer of innovative and technologically advanced tools who has established a network of solid franchise operations across the globe. Now after more than 20 years in the Australian market it continues to solidly perform and provide robust financial results for its network of 166 franchisees. Extensive training and ongoing support is provided – no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.

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A-Z listings Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne Email: alistairb@snooze.com.au Website: www.snooze.com.au

Phone: 07 5577 8166 Fax: 07 5577 8266 Contact: Max Collins, Talent Recruitment Email: info@socialmediabusinessboosters.com Website: www.socialmediabusinessboosters.co

Start up costs from: $450,000

Start up costs from: $30,000 - $40,000

PROFILE: As one of Australia’s longest-running franchised business and with more than 70 stores operating across the country, Snooze has proven itself a consistent franchise performer. It has been voted amongst the Top 10 Australian Franchise Businesses 2011 by topfranchise.com.au. Snooze provides ongoing support to franchise partners across marketing, product and sales training, visual merchandising and IT. By consistently striving for innovation and quality, Snooze remains an industry leader, sharing benefits with franchisees and customers alike. With an aggressive growth strategy firmly in place, further success for Snooze is assured as it continues to attract enthusiastic franchisees and seek strategic store locations.

PROFILE: Social Media Business Boosters is a world first franchise offering low market entry, rapid return on investment, minimal overheads and the ability to grow your business from home. A unique opportunity and a market leader, SMBB is expanding rapidly in local and overseas markets. There is huge need for professional digital marketing expertise and businesses are waiting for your expertise to guide them. Social Media Business Boosters is your pathway success offering thorough training, robust support and start-up clients. Take advantage of biggest shift in business the world is seeing Social Media Marketing!

sparky a3.pdf 1 7/04/2011 12:22:20 PM

CMY

Phone: 1800 788 335 Contact: John Newton Email: franchisesales@stufflers.com Website: www.stufflers.com

Phone: NSW/ACT - 02 9250 5000 VIC/TAS - 03 9287 9555 WA/SA - 08 9430 2877 QLD/NT - 07 3877 7333 Email: franchdev@caltex.com.au Website: www.caltex.com.au

Start up costs from: $45,000

PROFILE: • Caltex Star Mart is Australia’s number 1 convenience retailer with locations in every State and Territory across the country. • The Star Mart convenience network consists of over 630 stores nationally. • Franchisees operate approximately 85% of Caltex’s retail network.

PROFILE: This exciting new franchise has been franchising in Australia for just over a year. Building on the successful growth of shopping centre bear making stores, Stufflers is all about making stuffed animals at kids’ parties and events using the Stufflers unique mobile machine system.

Our world class business model, merchandising and field support has set the benchmark for convenience retailing, making Caltex the number one convenience retailer throughout Australia.

With clothes, hearts and special carry carts - Stufflers is the next party phenomenon. The franchise is best suited to a stay at home mum that has 2 days available midweek to work on our unique local marketing programs.

A select amount of Caltex Star Mart opportunities now exist for high calibre franchisees with a passion for retail and a burning desire to be successful.

As part of your $45,000 franchise fee, you will receive 8 mobile Fluffenstuff machines that are custom built by Stufflers.

To discover more about Caltex’s exciting franchise opportunity, please visit www.caltex.com.au and click on ‘Franchising at Caltex’.

Our opening launch price of $45,000 is substantially lower than the $500,000 needed to open a retail store.

Phone: Toll Free Australia - 1800 630 355 New Zealand - 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator Email: ssa@subway.com Website: www.subway.com

Phone: 02 9569 7866 Fax: 02 9569 7811 Contact: Graham Streeter Email: graham@sumosalad.com Website: www.sumosalad.com Start up costs from: $300,000 + GST

Start up costs from: Varies by site PROFILE: For an unprecedented 17 times in 23 years, the SUBWAY® Restaurant chain has been ranked the No.1 Franchise Opportunity for 2010 by Entrepreneur Magazine in its annual “Franchise 500” rankings*. The SUBWAY Restaurant chain is the world’s largest submarine sandwich franchise**, offering business owners simple operations, ongoing field support and defined marketing structure, along with providing customers with a variety of freshly made menu options. For over 40 years, the SUBWAY® brand has been helping individuals build their own, independently operated business – run by people just like you! From step one, throughout the entire franchise process, the SUBWAY® system provides training and guidance that aids in the operation of each restaurant. *The SUBWAY® franchise was ranked the number-one global franchise among franchises with worldwide operations in the 2010 Franchise 500® issue of Entrepreneur® magazine, based on research and analysis of those franchises having worldwide operations. ** Numbers are subject to change.

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PROFILE: SumoSalad is Australia’s most commercially successful healthy fast food franchise; serving over 145,000 customers each week. We’re on a mission to recruit likeminded franchisees who want to provide healthy, nutritious food and be part of the solution to Australia’s obesity crisis. SumoSalad started a health food revolution nine years ago when founders Luke Baylis and James Miller came to the conclusion that ‘fast food’ didn’t have to mean ‘snatch and grab, lardy laden food’. SumoSalad’s unique concept of a fast food outlet that sold made-to-order salads that were nutritious, delicious and convenient is as popular now as it was in 2003. If you’re enthusiastic, health conscious and want to make a difference, join us now!

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A-Z listings Phone: (03) 8699 2555 Fax: (03 8699 2550 Contact: TeleChoice Reception Email: franchise@telechoice.com.au Website: www.telechoice.com.au

Phone: 07 32577682 Contact: James Email: partners@theburritobar.com.au Website: www.theburritobar.com.au Start up costs from: $380,000 to $450,000

Start up costs from: $99,000

PROFILE: There has never been a better time to become your own boss. TeleChoice is a great choice for you if you are looking for a business in a dynamic industry. With over 150 stores nationally and a massive support base, you’ll always feel part of a great team. To start your own business and take control of your life, call TeleChoice today or visit www.telechoice.com.au.

PROFILE: If you put a $16 Billion dollar industry together with a massive demand for fast casual dining and Australians search for amazing new flavors then you have The Burrito Bar. Straight from the streets of Mexico and San Francisco The Burrito Bar brings the excitement color and street flavors to your door. • High volume business Turn Overs currently in excess of $1 million dollars • Easy to Run system with on line training and in store business support • SEX appeal. The burrito Bar is the latest kid on the Block We want Partners who are: • Passionate ,Crazy , innovative leaders • Have a passion to succeed.

the ho olate roo

Phone: 03 5229 6716 Fax: 03 5229 6718 Contact: Jim Richardson Email: info@thechocolateroom.com.au Website: www.thechocolateroom.com.au

Phone: 03 9008 5945 Fax: 03 9876 6612 Contact: Richard Email: richard@thefranchiseshop.com.au Website: thefranchiseshop.com.au

Start up costs from: $200,000-$250,000

PROFILE: The Chocolate Room was established in Australia in 2006 - five years on we have over 45 stores world wide - Australia, India, Canada, USA and England. Our menu caters for the chocolate lover and boasts 23 flavours of beautiful Italian hot chocolate drinks, a wide range of chocolates and chocolate gifts, refreshing ice cold frappes, waffles with ice cream and strawberries and many other chocolate inspired dishes - we serve spectacular coffee too. Combine all this with site selection assistance, comprehensive modern fit out, an excellent training regime and unparralleled support, the chocolate room has it all.

PROFILE: The Franchise Shop is the leading franchise consultancy offering both franchise development & recruitment services to the franchising industry throughout Australia and New Zealand. Principals, Grant and Richard Garraway have more than 30 year’s experience between them in developing businesses into franchises, conducting feasibility studies, recruiting franchise owners, territory planning and site finding. At The Franchise Shop our aim is to grow your business. Are you thinking of developing your business? A free initial consultation will provide you with an honest, comprehensive and accurate assessment. Looking to buy a franchise? We offer an advice service and range of documents which are designed to help you make an informed decision.

Phone: 1300 453 284 Fax: 07 5563 3477 Contact: Dean Reid - Marketing Manager Email: info@theleatherdoctor.net.au Website: www.myleatherdoctor.com.au

Phone: 1300 TOP SNAP (1300 867 762) Contact: Helen Clarke Email: helen.clarke@topsnap.com Website: www.topsnap.com Start up costs from: $39,950 + GST

Start up costs from: $55,000 PROFILE: The Leather Doctor is a well established franchise providing a mobile repair, cleaning and restoration service for all leather items. It is the market leader in Australia with 50 franchisees covering all capital cities and many regional centres, as well as franchisees in Dubai, Abu Dabi and the USA. Franchisees operate from highly visibale vans and mostly service the $7bn furniture industries. Franchisees enjoy the benifits of custom online systems that secures commercial work from leading furniture retailers and manufacturers. Income is also generated from the domestic market and through the sale of care products to these customers.

PROFILE: Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are currently looking for positive, enthusiastic, customer-focused individuals to build their own professional photography business, with the support of an established franchise system behind them. As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for professional property photography and marketing tools. In recognition of this outstanding growth, Top Snap ranked 44th in the 2012 SmartCompany awards, which recognise and celebrate Australia’s top 50 fastest growing SMEs.

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A-Z listings Phone: 1800 220 039 Fax: 07 5522 0051 Contact: Peter Darnell Email: sales@touchupguys.com.au Website: http://www.touchupguys.com.au

Phone: 0400 655 489 Fax: 03 5243 1476 Contact: Frank Rossi / Wes Smith Email: franchise@townandcountrypizza.com.au Website: www.townandcountrypizza.com.au

Start up costs from: $85,250 + approved vehicle

Start up costs from: $200,000-$350,000

PROFILE: With over 130 van operations across Australia and New Zealand and over 20 years experience, the Touch Up Guys are the market leader in the mobile automotive paint and bumper repair industry. This Aussie-made mobile automotive franchise carries out repairs to bumpers, plastics, paintwork, vinyl upholstery, alloy wheels and much more. Servicing commercial, corporate and consumer markets, our franchisees are equipped with a state of the art mobile workshop, providing a convenient and cost effective alternative to traditional bodyshops. If you are looking for proven business model with low entry cost and low overheads and would enjoy working outdoors with your hands, then Touch Up Guys may well be the perfect career move for you. No prior experience is necessary as full technical and business skills training are provided.

PROFILE: For over 25 years Town & Country Pizza and Pasta has provided its local community with quality food and professional service that has seen its expansion into a franchise system with seven outlets currently operating. Town & Country provides franchisees with the flexibility to “localize” their store by having a choice of three systems to suit the territory; a takeaway store with delivery service, a restaurant or a model that is a combination of both! All orders are made fresh and our reputation of the fastest production system and delivery times is outperforming our competitors. With a very affordable entry price, experienced support and proven solid consistent returns it is hard to not at least enquire about a territory available near you!

Phone: 1300 139 913 Fax: 1300 133 338 Contact: Darren Farrell Email: dfarrell@trusonic.com.au Website: www.trusonic.com.au

Phone: 03 9413 1400 or 0429 811 811 Fax: 03 9413 1401 Contact: Adrian Gallace Email: adrian.gallace@unitedpetroleum.com.au Website: www.unitedpetroleum.com.au/ franchising/welcome

PROFILE: Trusonic is a full service music provider and audio marketing specialist.

Start up costs from: $400,000 upwards

Trusonic’s digital music library contains more than 3 million tracks in all styles including Top 40, modern jazz, instrumentals and more. Their proprietary media player (the MBOX) receives music updates daily via the internet. With Trusonic you can: • Generate extra revenue and create branding with custom ads and IDs • Eliminate PPCA fees with their directly licensed music library • Play music and messages through your phone system • Control the music (and ads) at all sites from the one online interface

PROFILE: Australian-owned company and has become one of the largest independent fuel companies with over 270 convenience retail sites throughout Australia. United continues to invest heavily in its stores and systems which has earned the trust of the people and respect of major competitors. United franchisees enjoy ongoing support, guaranteed minimum income on Fuel Commissions, merchandising support, a national promotional program, five week induction program, on-going training, an exclusive affiliated partnership with the MYER one program.

To get Trusonic music working for you, contact us now.

United is a proud member of the Franchise Council of Australia (FCA) and was awarded 2011 Canstar – Most Satisfied Customers (Service Stations).

Phone: 02 9420 9933 Fax: 02 9420 9811 Contact: Samuel Hamrosi Email: samuel@vanitybar.com.au Website: www.vanitybar.net

Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au Start up costs from: $25,000

PROFILE: Vanity Bar offers one of the most unique business opportunities available in Australia. We have worked long and hard to build a business system that offers our franchisees a great return on their investment and a solid cash flow to help them achieve their financial and lifestyle goals. Essentials vending - smart, compact & convenient. • Low Entry Cost. • Unique Concept. • Great lifestyle business. • Exclusive product range. • Great ROI. • Ultra-reliable high tech generation II Vanity Bars now available. Secure your area!

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PROFILE: 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. has franchise opportunities available in:

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. In 2009 & 2010 V.I.P. was declared the Best Franchise System in Australia under $50,000 by the Financial Review Smart Investor magazine.

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A-Z listings F R2 8 2 0 _ Su b s _ HPV_ A- Z . p d f

Pa ge

Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Robert Toth Email: robert.toth@wisemah.com.au Website: www.wisewouldmahony.com.au PROFILE: Wisewould Mahony is a leading commercial law firm with a 150 year history in Victoria with clients in Australia and worldwide. 25 Years of Industry Knowledge Member Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Franchise Association of New Zealand (FANZ) Accredited Business Law Employment Specialists Fixed Fee Services to Franchisors & Franchisees based on scope of services Services provided: • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements • Dispute resolution – mediation – Solutions & Strategies • Sale/Purchase of Franchise Systems • Master Franchising • Employment Law & Workplace Relations Specialist Call or email for a complimentary brochure for Franchisors & Franchisees

AT THE FOREFRONT OF THE FRANCHISING MARKET.

Phone: 02 8394 7800 Fax: 02 83947801 Contact: Athol Ritchie Email: franchising@worldwide.com.au Website: www.worldwide.com.au Start up costs from: $150,000 ex GST does not include working capital PROFILE: Imagine owning a Design and Printing business with a clever mix of the latest technical, marketing and training resources, combined with the strength of more than 15 years experience in the business. Worldwide are known for our innovative approach to business and we are always on the lookout for new and innovative products and services to expand our reach. As a franchise owner you focus on clever ways of creating new sales, providing top quality service to your clients and building a powerful team - leaving the printing and production to the experts. With more than 50 Worldwide Design and Print Centres nationally, we are now undertaking the next phase of our national expansion program. Set yourself apart from the crowd.

Phone: 0414 669 101 Fax: 02 9771 9570 Contact: Stephen Spitz Email: stephen.spitz@xpressodelight.com.au Website: www.xpressodelight.com.au

This leading consumer publication is for anyone looking to buy into the $131 million franchising industry. Each issue you’ll receive: ◗ Inspirational success stories ◗ Pertinent issues in franchising ◗ Practical knowledge and advice ◗ Management tips and much more…

Start up costs from: $69,900 + GST PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded! This pent up demand for gourmet coffee in the workplace is very poorly met. Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees. This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

Subscribe for just $45 and take the first step in becoming your own boss.

Call us on 1300 360 126 or visit www.franchise.net.au

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INCORPORATING FCA NEWS

Companies in this issue 10 Thousand Feet

133*

Ace Insurance

42, 123

Amazing Clean

103*

Group Seven GroutPro Hairhouse Warehouse

Post Net

Pricewaterhouse Coopers Australia

53*

15*

Healthy Habits

Applied Marketing Science

102

Howards Storage World

11*

Appliance Tagging Services

113*

Jani King

24*

Jem Promotional Products

119

62*

* indicates FCA member

Anytime Fitness

Autobarn

FRANCHISE COUNCIL OF AUSTRALIA

125 81*

RBI

128, 134, 150*

Redcat

122

Rent 4 Keeps

Salsa’s Fresh Mex Grill Signarama

85*

72-73, 106-107*

Bakers Delight

152*

Jim’s Pergolas

Baskin-Robbins

34*

Jumping J-Jays

Bedshed

56*

Smith & Sons

Just Cuts

28*

Brian Tracy

79*

Snap-on Tools

Keen to Clean

58*

Burrito Bar

27*

Snooze

Kwik Kopy

74*

Café 2 U

39*

Social Media Business Boosters 75*

Caltex

87*

Leadership Management Australasia

Cosmos 21

31, 77

Mason Sier Turnbull

DC Strategy

94-95*

Messagecom

Diversified Exhibitions

37*

2* 25* 93

Silverchef

109*

71*

Solutions Franchising Subway Sumo Salad

117*

Telechoice

82-83* 48-49*

Micronet

14*

Domino’s Pizza

The Franchise Shop

Mr Wow Cleaning

110

The Leather & Vinyl Doctor

Envie

Nanotek by Ecowash

Fastway Couriers

151*

44-45*

National Franchise Insurance Brokers

130

Financial Planning Association 116

NightOwl

78*

Franchise Legal

Oporto

38*

FC Business Solutions

55 6

Franchise Selection

66-67*

GJ Gardner Homes

Orange Leaf

12 63*

The Touch Up Guys Top Snap

22 111* 96*

Town and Country United Petroleum Vanity Bar

99 105* 91

VC Solutions

118

Outback Jacks Bar & Grill

19*

VIP Australia

46*

Gloria Jean’s Coffees

89*

Ovenu

57*

Wisewould Mahoney

35*

Greenbizcheck

65*

Ozetel

127

Worldwide Online Printing

61*

Plus Fitness 24/7

21*

Xpresso Delight

Grey Army

Franchising Advertising enquiries

115*

David Strong

National Sales & Marketing Manager

Magazine A-Z listings The Profiler The Yearbook Online inventory E-blasts E-newsletter Ph: 02 9422 2905 Mob: 0411 366 656 E: david.strong@reedbusiness.com.au 150| FRANCHISING NOV/DEC 2012

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Fastway Couriers has a number of exciting franchise opportunities available • • • • • • • • • •

Low start up costs Guaranteed income package* Perpetual Franchise Agreement Recognised brand Award winning system for over 25 years Exclusive territories No weekend work Ongoing business support & training Easy to operate - no experience required Enjoy the freedom of working for yourself

To ﬁnd out more contact us: p. w.

1300 FASTWAY fastway.com.au

*For a deﬁned period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769. Fastway Couriers is a franchised courier network and its businesses are independently owned.

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Bread Winners Weâ&#x20AC;&#x2122;re making baking our business. As a Bakers Delight franchisee, you get complete training, ongoing support and our proven business model that has been refined over 31 years and led to the creation of over 700 bakeries.

Create your own business with Australiaâ&#x20AC;&#x2122;s most successful bakery franchise: bakersdelight.com.au or call 1300 309 759

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10 WAYS TO MAKE A PROFIT

FRANCHISING 2013

SPECIAL BONUS

10 QUESTIONS

Franchising 2013 Yearbook and