Franchising magazine September / October 2012 Issue by Octomedia Pty Ltd

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Making money in fast food

Franchising l Specian Editio

www.franchise.net.au

FRANCHISING SPECIAL ANNIVERSARY EDITION

Your essential guide to buying a franchise

Sep/Oct 2012 VOL.25/No.5

SEPTEMBER/OCTOBER 2012 WWW.FRANCHISE.NET.AU

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Print Post Approved PP255003/01132

AUS $6.95 NZ $7.95

Inspiring you to run your own business PLUS

Aussie brands go global What you need to know about leasing

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Contents SEPTEMBER/OCTOBER 2012 |YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE

Anniversary 86 25 years Flashback

92 Then & now Pictorial review 94 Going global Aussie brands overseas

102 They came but did they conquer? Foreign franchises here 108 Looking forward Where’s the potential?

Inspire 14 It’s in the blood Superfinish Express 16 Silver baked Bakers Delight franchisee

18 Maturity rules OK Aussie Pooch Mobile 22 In the swim Paul Sadler Swimland 26 Mum’s the word Ziggetty Snipits 30 Still going strong Brands with longevity 36 Family fortune 7-Eleven franchisee

144 REGULARS 5

Editorial

News

Interview

161 Legal 162 Sketch 165 People 166 Glossary 168 Checklist 186 Company listings

Issues

119 Renewing your agreement What’s involved? 124 Lease likely Looking at retail leasing

How to...

130 In tough times, talk! All about mediation 138 Logged on Social media issues 144 Retail checklist What you need to know 151 A firm foundation How to shape a business

Opportunities 42 Profit to go Fast food focus 50 Senior service The aged care market 56 Leading the way Business franchises 64 Help, they need somebody! Working in IT 72 Home advantage The challenge of retail 78 Budding businesses New concepts to consider WWW.FRANCHISE.NET.AU

94 SEP/OCT 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 Sub Editor Richie Kenzie richie.kenzie@reedbusiness.com.au Direct: 02 9422 8851

Special anniversary edition

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 Raynia Theodore Production Co-ordinator Eryk Koziol eryk.koziol@reedbusiness.com.au Direct: 02 9422 2379 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

appy birthday to Franchising magazine! Yes, we’ve notched up 25 years of publishing the best information, news, views and inspirational stories from the franchise sector and spreading the message that franchising is a great way to build a business. In the 25 years since the magazine started, under the expert guidance of publisher Peter Trevilyan, a forest of franchise brands has taken root in Australia – some from overseas, many of them homegrown. The sector has matured into a $128bn market, risen to the challenge of performing in a highly regulated business space that has in turn driven the professionalism of the industry to new heights, and continued to innovate and inspire. We thought it appropriate to celebrate our silver anniversary with some reflections on how times have changed, highlight some of the brands that have seen the potential of the Australian market, share with you some franchise names that are taking their business around the world, and to look to where business growth lies in the years ahead. And as the sector has had to innovate, so has Franchising magazine. In an evolving consumer marketplace where the demands for knowledge and shared opinion increase every day, the role of the internet is paramount in publishing today. Franchising’s first class editorial content has now expanded across www.franchise.net.au, Facebook, YouTube and Twitter, and our must-read magazines are also available digitally. Of course we wouldn’t be marking this anniversary if it wasn’t for the support and enthusiasm of both our readership and the committed franchisors and service providers within the franchising sector. So thank you...

We’re celebrating our silver anniversary with reflections on how times have changed and some of the brands that have seen the potential of the Australian market

We hope you enjoy the read

Sarah Stowe Editor 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.

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

WWW.FRANCHISE.NET.AU

SEP/OCT 2012 FRANCHISING | 5

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News ONLINE NEWS | www.FRANCHISe.Net.Au

RFG swallows up Crust Pizza develop each brand as distinct systems, The Retail Food Group has announced its the acquisition will generate unsurpassed plans to acquire the Crust Gourmet Pizza opportunity for the exploitation of supply Bars business, which has expanded to side economies, collaborative marketNew Zealand, Singapore and the US. ing, research and development activities, The 11 year old chain of 119 outlets cross pollination of products and services will join another gourmet pizza brand and a growing expertise in the gourmet in the group, Pizza Capers Gourmet takeaway pizza market that will benefit all Kitchen, RFG’s most recent acquisition stakeholders in each system,” Alford said. which has its stronghold in Queensland. Crust CEO Michael Logos will RFG will pay $24 million upfront (inE remain with the business, and with cocluding RFG shares valued at $3 million), founder and managing director, Costa with a second payment 12 months from Anastasiadis, will continue to drive the settlement - the difference between seven brand under the RFG umbrella. times Crust FY13 adjusted EBIT less the “The transaction is the culmination of initial payment. a six month engagement during which RFG CEO Tony Alford said the Crust we have had the opportunity to familtransaction will help with some strategic iarise ourselves with RFG management, initiatives: the immediate scale provided culture and strategic objectives,” said by ownership of both pizza systems; furLogos. ther investment within the QSR category; “The opportunity to partner with a and reduced reliance on shopping centres A D _ F R F U R MA Y _ 1 2 . p d f Pa ge 4 1 9 / 0 4 / 1 2 , 3 : 3 0 growing public company with proven for outlet growth. expertise in the retail food franchising “Whilst it remains RFG’s intent to

x p E r t F r a n c h i s E L a w Costa Anastasiadis and Michael Logos

industry offers our franchisees and other stakeholders early access to the benefits of a larger organisation whilst retaining the core attributes that have generated the Crust Gourmet Pizza Bar success story to date,” he said. The transaction is anticipated to be PM completed by the end of September 2012, subject to due diligence.

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Franchise Legal practises exclusively in franchise law, which means that our clients benefit from our extensive expertise in this unique area of business law. For an obligation-free chat with one of our principal Do your lawyers: solicitors in Brisbane, Sydney or Melbourne, • really understand your franchise system? heath adams, sydney Call 1300 798 501 today or visit www.franchiselegal.com.au • provide practical commercial advice?

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NEWS BRIEFS

Jamaica Blue opens first Singapore store The Foodco Group has announced its coffee brand, Jamaica Blue, has opened its first outlet in Singapore, with another opening scheduled for mid-September. Jamaica Blue is this year celebrating its 20th anniversary in Australia, where it has 73 cafes, but the brand also has a presence in New Zealand, China and the UAE. The new Singapore store is located at One Raffles Place in the heart of the financial business district, and the second store will be located at Star Vista, the nation’s prime shopping and entertainment venue in the western central region. The Jamaica Blue Singaporean breakfast, lunch and dinner menu will resemble that of Jamaica Blue’s current markets, however, due to humid local weather conditions, Jamaica Blue Singapore will feature an extended cold beverages range with markettailored fruit flavours such as Lychee Iced

Iconic Australian franchise retailer Clark Rubber has relaunched its retro ‘Better than a beach’ jingle with a brand new TV, radio and POS campaign

Tea, Chocolate Banana Cream Frappe and Passionfruit Smoothies. Hermant Karjadi, director at Foodco’s regional licence partner, Universal F&B, said the Singaporean market is ready for Jamaica Blue’s premium coffee offering. The FoodCo Group also operates the Muffin Break and Dreamy Donuts brands.

CHoICe ADDS Hotel mANAGemeNt to FRANCHISe oFFeR Franchisees in the Choice Hotels Australasia network are now able to outsource the management of their hotels to a professional company after the hotel chain joined forces with the Australian owned Lancemore Group, the largest boutique hotel and conference venue operator in Victoria. Trent Fraser, CHA’s chief executive officer, said the move will cement the hotel franchise group as pre-eminent in the region. “We see our new relationship as a great opportunity for independent or institutional property owners or investors to leverage off the established network of over 270 Choice Hotels

The Puckles Family Bakehouse in Queensland has sped up its search for franchisees after strong sales have outperformed the business targets

properties in this region and the long established, service oriented, family owned and operated management company which Lancemore Group brings to the table.” The agreement is expected to help build the franchise portfolio not just in Australia but in New Zealand and Singapore. “We believe there is strong demand for existing owners of hotel assets to consider a more personalised approach to the management of their properties and with the Lancemore Group we can now certainly provide that,” said Fraser. The Lancemore Group’s CEO Julian Clark said “We recently decided to expand our hotel management offering into management

Drive through coffee franchise, Muzz Buzz, has launched in New Zealand, with one outlet opening in Auckland and another in Manukau Franchise vehicle service company Ultra Tune Australia has been fined $8,580 for underpaying a Filipino employee based in Perth Retail food franchise Trampoline Gelato is taking to the road and offering its brightly coloured concept as a new mobile business Domino’s Pizza has launched a new ‘tile’ logo and cut the word ‘pizza’ from the design, as part of the franchise’s new direction and fresh corporate image

Trent Fraser

in conjunction with a franchise agreement as it is a globally proven model that is rarely employed in Australia. “This is a separate business from our current boutique hotel and conference hotel offerings and we see significant growth in this model. The power of this relationship is that it is a win for all stakeholders,” said Clark.

www.FRANCHISe.Net.Au

Jim’s Removals and Storage is the latest division to emerge in the Jim’s Group franchise phenomenon Quest Serviced Apartments has unveiled its first dedicated Quest Studios apartments in Melbourne and Sydney. The initial five properties offer a hotel style room with a kitchenette, work area and complimentary WiFi Australia’s Big4 Holiday Parks chain has welcomed a new addition to its 180-strong network, BIG4 Eden Gateway, located on Sapphire Coast, NSW

Sep/oCt 2012 FRANCHISING | 7

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Franchisor victory highlights importance of due diligence Another court case serves to highlight the need for due diligence before purchasing a franchise, with an Australian master franchisee in the David Reid Homes business being ordered to pay franchisors David and Suzanne Reid $2.85 million. The home building franchisor took Russell Stephens and his company to court for failing to pay the total $3.75 million agreed for his share in the master business. Stephens bought a share in Reid’s Australian master franchise (DRH Australia), which until then was owned by David and his wife. Stephens then became an equal shareholder with David Reid and was contracted to pay the total fee in instalments. The business subsequently failed and Stephens lost almost all his money. The first two instalments had been paid according to the contract, but only half of the third payment was made on time, although the remainder of that payment

was paid later. The final two payments have never been made. Stephens argued that there had been misrepresentation about the business and he therefore should not have to pay the remainder of the fees. In the Queensland Supreme Court Justice Dalton said there was no evidence to suggest that Stephens had taken any action after receiving information about “four impecunious franchises” who had relied on David Reid for funding to purchase their businesses, and that he had been given unrestricted access to the business and accounts of DRH Australia.

Justice Dalton said that he had sympathy for Stephens but described his approach to the share purchase as naive. Justice Dalton also suggested there was no evidence shown for the cause of the business failure or that the business model was unviable.

The Australian

and New Zealand Online Shopping report found that in 2012 online shopping in Australia will increase 17.9 percent to $16 billion, and is predicted to grow to $26.9 billion by 2016 at a compound annual growth rate of 14.1 percent

FRANCHISING IN NZ: CHAlleNGING but ImpRovING The general outlook from franchisors and service providers is that the franchise sector in New Zealand is slowly improving, though conditions remain challenging. According to the Franchize Consultants July 2012 Franchising Confidence Index, there are mixed results recorded across the industry. Those surveyed reported a decrease in optimism in regard to general business conditions, access to financing and to suitable franchisees, franchisee sales and profitability levels. However there is improved sentiment for

8| FRANCHISING Sep/oCt 2012

availability of suitable locations and staff, and franchisor growth prospects. But service providers proved more optimistic than franchisors when it came to future franchisee operating costs. This latest report included a special focus on bank funding for franchisees and concluded that solid franchisee propositions could still be funded. However there was a slight decrease in confidence from franchisor respondents in relation to ease of access. Concluding remarks to the report included: “Despite some of the positivity in response and

comments it is clear that substantial challenges to profitability remain, as indeed they do for other forms of organisation. “Many are experiencing

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pricing pressure, many sectors remain competitive, and many input costs continued to rise. Combined, these and other factors pressure profitability at all levels.”

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Inspire|Interview

a TaSTe For

FranCHiSinG How do you replicate something that works well? That’s the challenge of franchising, and getting it right at retail is a goal for Franchised Food Company’s Stan Gordon

10| FRANCHISING Sep/oCt 2012

here are two mottos that South African-born entrepreneur Stan Gordon lives by: the harder I work the luckier I get, and make money and have fun. “For every 10 things I do only seven succeed. I never forget that my customers are the franchisees and the franchisees’ customers are consumers themselves.” Gordon is the owner of the Franchised Food Company which comprises Cold Rock Ice Cream, Pretzel World, Nutshack and Mr Whippy. In South Africa Gordon had started out in marketing and advertising. He then successfully built a retail empire called The Pie Works Group, though this got off to a rocky start when the queue at the shop’s grand opening was 200 strong – but he had forgotten to arrange staff to manage the till. And it was pies that first brought him to the franchising concept. He first saw the effect of empowering individuals through small business in South Africa when the Mandela family asked for his assistance setting www.FRANCHISe.Net.Au

up Pies for Africa, a support network for impoverished people to start their own small business. It was also the pie concept that brought him to Australia. In 1997 Gordon thought he saw a golden opportunity to replicate the success of his pie business in Australia and set up three Pie Factory outlets. But he hadn’t taken into account the iconic Four n’ Twenty brand, and was soon facing bankruptcy. At the same time a tragedy at his Johannesburg house caused him to assess the future, when his family’s security guard was attacked and murdered. The Gordon family decided to adopt Australia as home.

The franchise food model

Gordon needed a business opportunity to establish the family in their new country and it came in the guise of Mr Whippy, which had seen its last official ice cream van drive off into the sunset in the 1970s. Then there was the acquisition of Pretzel World in 2005 which started his franchising journey. As he sees it, franchising is trying to create

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Interview|Inspire

jobs for people without the massive infrastructure needed for small business. And investing in a franchise is a pertinent career option for the more mature individuals, he adds. “If you’re over 40 to 45, employers are looking for young, enthusiastic people. In the corporate world, there are not many jobs for older people. But there are in smaller systems.” Stan talks of franchisees able to buy themselves a business with appropriate rewards and demands. “If you reach 50 or 60, I’m not sure how much you want to develop a new system. It’s all basic business economics, you pay for what you get. I’m not sure how many people have millions to invest. “We work on a payback of three years, after that it’s profit, and you have an asset to sell. Franchisee expectations are A D _ F R H O WS E P _ 1 2 . p important. Franchising takes the risk out, but there’s a cost, and in

our case, the cost is six percent of your sales.” Mr Whippy was the first brand Gordon took on – and he admits he hasn’t got it right yet. “I tried to reposition this but it will always be an ice cream van to Australians. So we’re going back to basics and we’re looking at a mobile option. The trouble with mobiles is stringent council controls.” Gordon is considering cobranding the soft serve ice cream, which he believes has a strong standing here. “What’s wrong with walking into a convenience store and getting a soft serve?” he asks. It’s an approach already tried and tested in the group. Cold

Franchised Food Co growth 2000 Stan Gordon acquired Mr Whippy 2005 Pretzel World bought 2009 Cold Rock ice-creamery joins group 2010 Nutshack acquired Rock Ice Cream has thrown its net wider than stand-alone stores: the mix-in treats are available through Video Ezy and Blockbuster video outlets, and as a dessert offer at Souvlakihut. Cold Rock Express is a downsized option with 15 flavours and a one metre cold slab to mix in ingredients rather than the full sized store. Add in the retailing of salty, savoury pretzels and there’s

Franchisee expectations are important. Franchising takes the risk out, but there’s a cost, and in our df Pa ge 1 2 0 / 0 8 / 1 2 , 6 : 0 9 PM case, the cost is six percent of your sales

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Inspire|Interview

another opportunity to co-brand with a coffee and pretzel offer. “Retail will change, landlord expectations on tenants are ridiculous, so a dual offer on the same tenure makes sense,” says Gordon. “We think, if a consumer comes in, what can we sell them?” Nutshack is the latest addition to the group, and is undergoing a facelift. A distinctive mark of the franchise models is the opportunity to create a sense of drama and so engage the customer in the purchasing process. Cold Rock has its mix-in cold slab, Pretzel World the pretzel twisting, now Nutshack is about to undergo the Gordon treatment. “We are re-positioning, rebranding, making it more theatrical, more interactive. We’ll be roasting nuts on the premises so customers can watch.”

There will be a number of new stores too that will open up the retail experience to include self-serve, so customers can walk through and choose a product rather than just order from a counter. “We’re in fun treats, we don’t pretend to be healthy, we’re naughty and indulgent. We’re selling small ticket items. I never want to be anything else.” More acquisitions ahead for FFCo, says Gordon

Acquisition mode

The business has grown through acquisitions and Gordon has three possible businesses in his sights right now. All are established companies with more than 20 stores – his benchmark. “At 20 stores a franchisor can’t make money, the infrastructure costs are too high to provide the correct service to franchisees.”

We’re in fun treats, we don’t pretend to be healthy, we’re naughty and indulgent. We’re selling small ticket items. I never want to be A D _ F R MA D MA Y _ 1 2 . p d f Pa ge 1 1 4 / 3 / 1 2 , 9 : 2 0 anything else

But they are established enough to have potential for the FFCo. There will be at lease one acquisition in 2013, says Gordon. “We know retail is down here, we’re marginally down on same store sales, and I challenge anyone who says their sales are up. But the brands will expand. When times are tough, an astute business person will pick up business opportunities.” Although there could be expansion overseas down the track, right now the focus remains on these shores, providing a franchise option that works. AM “Franchisees need to make money,” Gordon says. F

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Inspire|Franchisee

it’s in the blood

uperfinish Express (formerly Kwik Fix) has been in franchising since 1995. Looking back at the old photos, among the bad hairstyles, are some of the same enthusiastic guys who continue to love what they do and over the years have enjoyed a great income, lifestyle and job satisfaction. Some have now brought their sons into the business with a succession plan in mind. In fact, the owner/founder David Bruckshaw’s son Dean now operates a territory of his own in Redcliffe. “My fondest memories are coming into the business on school holidays and being able to help out, so from an early age I’ve always felt part of it,” says Dean. “Another great memory is of Dad picking me up from school, getting into the van and being surrounded by the familiar smell of paint. Times have changed though, and we now work with more environmentally friendly paints which don’t give off the same odour.”

If you ever considered doing something else for a job, what was it? “There have been a few – starting with wanting to be the next MC Hammer…or maybe a DJ…then joining the army…but the lure of working with cars won over in the end.” How do you handle the franchisee/ franchisor relationship with your father? “With a great deal of patience on both sides. But seriously, we have a mutual interest and enthusiasm about finding new technologies and keeping our processes at the cutting edge of the industry.” What are the challenges for you in business? “There is a high expectation placed on me. I need to be twice as good to be considered half as good. I feel like I’m always under the spotlight and while fellow franchisees assume I get it easy, this couldn’t be any further from the truth.”

Dean Bruckshaw now, and at a conference with his father in 1999

What accounts for your success? “I’m always pushing the boundaries to constantly evolve my business and achieve outstanding results. In this business it’s about producing a factory finish in a mobile environment while balancing the output within EPA Guidelines. And that’s not always as easy as it looks. Anyone can obtain a mediocre finish but I am truly dedicated to upholding Superfinish’s brand values. I also love what I do!” F

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For more information about our franchise solution visit www.micronet.com.au or call (02) 9542 2000.

14| FRANCHISING Sep/oCt 2012

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Distribution | Supply Chain Financials | SaaS | Retail POS CRM | WMS

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Multi-unit franchisee Debbie Blacker has been involved with Bakers Delight for 25 years

SILVER BAKED A

fter starting out as a Geelong bakery sales assistant at the age of 14, Debbie went on to open several Bakers Delight bakeries across Australia and 25 years later now owns three franchises. Debbie started working at Bakers Delight’s Corio store and

only men become franchisees is to “get real”. “Bakers Delight believes in developing people. There is no distinction between men and women, and that culture has helped foster the successful careers of many female franchisees, including myself,” says Debbie.

Bakers Delight has been a major part of my life. I’ve spent more time doing this than anything else. After all, I started when I was 14 and I’ve just turned 40 realised then she wanted to own her own business one day. She was one of only three young women completing a baking apprenticeship at TAFE and became the first ever female baker at Bakers Delight. Her advice to anyone who thinks

Debbie and her partner moved to South Australia, NSW and the ACT where they opened several new bakeries and helped to train new franchisees. And as if this was not enough of a challenge in itself, Debbie not only had her first child, she also helped

pioneer the first ever Bakers Delight recipe book. Debbie never flinched at the idea of acquiring multiple bakeries and credits her success to being organised and highly motivated and to having great staff around her. Looking back on her career so far, Debbie reveals she would not be at the point she is now without the support, training and programs offered by Bakers Delight. Her key advice for other baking apprentices and staff is to remember that a career path to owning a bakery is achievable and that if they want to run their own business there are opportunities out there. “Bakers Delight has been a major part of my life. I’ve spent more time doing this than anything else. After all I started when I was 14 and I’ve just turned 40.” F

How it grew and grew The very first Bakers Delight bakery opened its doors in 1980 in the Melbourne suburb of Hawthorn and it is still going strong today. The name comes from the belief that every baker should be delighted by the product they bake and that every customer should be delighted by the service they receive and this philosophy remains the driver behind current practices and culture. By 1988 the business had expanded to 15 bakeries and, quietly confident about

16| FRANCHISING SEP/OCT 2012

the proven formula, the founders, Roger and Lesley Gillespie, began to franchise these bakeries. In 1991 the business had grown to 43 outlets and, showing swift growth, two years later had expanded to 200 outlets. Three decades on and the company has more than 700 bakeries across three countries and enjoys a 13.6 percent share (Roy Morgan single source data March 2012) of the Australian bread market. Lesley Gillespie explains “Our product is a staple that continues to stack

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Roger and Lesley Gillespie

up despite retail pressures. In the 2011 financial year we took on 50 percent more franchisees than in previous years - in the 2012 financial year we’ve already exceeded expectations. “Our intent is to be around for another 31 years. I am confident that our proven business model and continued expansion will enable us to achieve just that.”

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maturity

rules ok T

en years ago you could realistically think about retiring when you turned 55. Youâ&#x20AC;&#x2122;d pack up the Winnebago and travel around Australia, living the dream. But now the boom is over for the grey nomads. A 2011 study of retirement intentions by the Australian 18| FRANCHISING Sep/oCt 2012

aussie Pooch mobile is revelling in the experience of mature-age franchisees

Bureau of Statistics found the average age of retirement for those who left work in the previous five years was 61.4. And 13 percent of those surveyed aged 45-plus said they thought theyâ&#x20AC;&#x2122;d never retire. According to the 2011 RaboDirect National Savings and Debt Barometer (NSDB), 25

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percent of baby boomers have little or no savings, and simply are not financially prepared for retirement. So what happens if you want, or need, to do more with your life? While it can be hard to find employment as a mature worker, there are opportunities to start over, and the answer could be

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“As well as the running your own obvious benefits older business. people bring to the “Many of us have working environment, always dreamed of such as reliability, being our own boss, commitment, dedication and with hard work and flexibility, their and careful planning, people skills and ability self-employment can to deal with change can bring financial and make them excellent lifestyle rewards – along coaches to younger with enormous personal members of staff,” says satisfaction,” says Chris Taylor. Taylor, Aussie Pooch “They have stood Mobile founder. the test of time and “The older generation know what is needed to can embrace the achieve their goals and opportunity of becoming aspirations. They usually self-employed now that have a lot of knowledge their kids have grown about life in general and they are back to that they can bring to considering what they the table and should want, not what the be respected and learnt family needs.” from.” Aussie Pooch Mobile Take 65-year-old John is a company that Fyfe who purchased his embraces older workers. AD_ F ROUT NOV _ 1 1 . p d f Pa ge 1 franchise in 2011 after a At least one third of its 46-year career in highfranchisees are over 55.

The income is, of course, very handy, when you consider the current economic environment for investments. The return on my investment is at least 10 times 1 3 / 1 0 / 1 1 , 3 : 1 5 PM better than a bank term deposit

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Sep/oCt 2012 FRANCHISING | 19

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level management. He retired at 63, but decided he needed, and wanted, to continue working. “In my working career I enjoyed a senior position for over 38 years with Westpac, was general manager Queensland and Northern Territory for the Australian Institute of Management, worked as executive manager for the Surf Lifesaving Foundation before retiring at 63. However, I was then talked out of retirement and worked for a private financial services firm. “I knew I wanted to continue working for several reasons, but was unsure what I wanted to do. I wanted to try something different so I decided on a complete change of direction and in 2011 joined the Aussie Pooch Mobile team, washing dogs. “I am thoroughly enjoying what I’m doing. I’m my own boss, running my own business.

My office is my trailer, which is outdoors, where I love being. I really enjoy the relationships I have developed with my clients and especially the dogs. “The income is, of course, very handy, when you

Carol Garrety

I loved the job from the minute I started. Not only am I now financially independent, and my own boss, working with the dogs gives me such a boost

20| FRANCHISING Sep/oCt 2012

www.FRANCHISe.Net.Au

consider the current economic environment for investments. The return on my investment is at least 10 times better than a bank term deposit. “I intend to keep working while I am still physically able, and this role has me the fittest I have been for years. I would wholeheartedly recommend a franchising role with Aussie Pooch Mobile for us baby boomers. I feel a lot of clients are comfortable with a mature, stable operator.” Carol Garrety, 64, is another baby boomer who owns a franchise. “I started with Aussie Pooch Mobile as a representative in 2009 and I purchased the franchise in April 2010. “Before starting with Aussie Pooch Mobile I worked for a 4WD company as their cook on Tagalong Tours and before and after the tourist seasons I worked in their admin office. All my working life had been in admin. I left this job as the work was slowing down and they closed the business. “At 61 I was then faced with a dilemma. I did not want to work in admin any longer, but had no idea what I could do differently. I’d always loved dogs and at the right time in my life, I came across Aussie Pooch Mobile and decided I would give it a go. “It was scary at first as it was completely different. But the support I received was terrific. I loved the job from the minute I started. Not only am I now financially independent, and my own boss, working with the dogs gives me such a boost. “I would definitely recommend working for Aussie Pooch Mobile, especially if you are older or returning to the workforce and want a complete and rewarding change in your life. “One day I’d like to get an RV and travel around Australia, but I don’t know if I could leave my dogs. They are like family to me now.” F

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in the

Swim T

he Victorian-based business Paul Sadler Swimland is about to embark on 15 sites and the key to expansion is keeping a familiar feel. “Our business feels like family and it’s very hard to retain that in a bigger business,” says Sadler. Canada and Townsville are the two outposts for the brand – Canada because a previous employee relocated and wanted to take the business there. When it started earlier this year there were 67 children enrolled; now the figure is 800. Sadler says 86 percent of clients come through recommendation. And getting referrals is all about making kids feel special, and offering good customer service. Sadler says “We want franchisees with the right

22| FRANCHISING Sep/oCt 2012

Paul Sadler loves to teach children to swim and he’s on a mission to expand his methodology and keep kids safe in water

motivation. It’s a very good business decision but it’s not about money, if you get the feel good factor the money comes in. “For example, celebrating the journey of small successes is a joint affair with the mum, teacher and child. We give little goodies to the kids.” Kids love to be validated so “passion and praise” is at the heart of the teaching process, he says. The essential elements to the business are the structure and methodology. Sadler says “The secret to our success is that kids love predictability. We can swap two teachers 13 minutes into lessons and they could carry on the classes. “The only commonality in teaching kids of six months and those of 14 years old is it’s done in water. In most swim

www.FRANCHISe.Net.Au

Paul Sadler

schools someone only has to have Australian certification and they can teach. We have very defined sets of goals, all the way through and it’s pretty scripted.” Wayne Pollock CEO says “You

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have to win the hearts and minds for your staff and franchisees. Selecting staff and engaging them in the product and having fun is important.” Sadler has focused on creating an environment that values feedback, whether that’s franchisee to staff, or the reverse. Both Sadler and Pollock teach from time to time, and also expect to get feedback from whoever is standing deckside. “Feedback is usually received in a positive way, and we’re able to modify our behaviour and improve the integrity of the product. Everyone is required to act on feedback and can take it from anybody. It means you can give feedback without risk and there’s a culture of respect.” Another foundation to the business is the use of flotation aids.

“This gives us the ability to get kids comfortable in water. The skill is then how to remove the flotation device and keep the movement. We use the security of a lesser aid.” The business began in 1974 when Sadler saw someone teaching one-on-one to tread water. In Australia at the time there had been a number of drownings, and Sadler saw how important it was to teach children to survive in deep water. A 10 minute survival unit where the children learn to tread water and other mobility skills is core to each swim

Everyone is required to act on feedback and can take it from anybody. It means you can give feedback without risk and there’s a culture of respect

course. Repeat business comes as children complete each stage of learning and can move on to the next level of skills. There used to be a 15 percent drop in winter business in the home base of Victoria, now the intake of new clients outstrips those students who might be more seasonal in their swimming habits. There are plans for the business to grow nationally and within two or three years Sadler would like to have 20 sites. An international brand is in his sights too. However expansion is not just dependent on finding the right franchisees – it’s location too. “We need access to pools that work for us, and we’re employing some better strategies now for this.” One approach is a shared school facility, where the swim school helps to build the pool and then has access after school hours and at weekends. F

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Inspire|Franchisor Novelty pedal cars and DVDs make haircuts easy at Ziggetty Snipits

mum’S The word... Three years ago, mother of five Kristen Semmens discovered – as many mothers do – the tedious task of dealing with head lice. A short time after, she realised a business opportunity had presented itself

fter two of Semmens’ girls suffered a nasty reaction to an over-the-counter chemist product, landing them in hospital, she and her husband went about researching and developing their own head lice treatment solution. At the end of 2009, Ziggetty Snipits and Nitpro were born. The former is a children’s hairdressing salon, where the little clients are kept distracted with DVDs, video games, novelty pedal car cutting chairs and a bright, entertaining environment. Nitpro, located either at the back of the Ziggetty Snipits premises or next door, is a head lice treatment salon. Today, with two stores open in Queensland’s Robina and Tweed Heads, and 26| FRANCHISING Sep/oCt 2012

four more on the way across Queensland and NSW, Semmens is thrilled with the franchise’s growth and is even more excited to have been nominated in the National AusMumpreneur Awards. The awards recognise hard working, entrepreneurial mothers, with Semmens a finalist in the Service Business of the Year award and the People’s Choice Best Customer Service award. The awards will be announced in Sydney on 8 September [after Franchising publication], and regardless of the result, Semmens says she’s most excited about the exposure her business will receive, and is honoured to have been nominated for the People’s Choice award. “We’ve got a huge network. We don’t www.FRANCHISe.Net.Au

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THINK YOU’VE GOT WHAT IT TAKES? At Domino’s we see ourselves as the Pizza Experts, and focus all our energy and passion into making and delivering the hottest, freshest, tastiest and most innovative pizzas in our markets. As a new Franchisee, you are about to embark on a journey to become a Pizza Professional. With 50 years of heritage in achieving excellence, our challenge to you is to embrace Domino’s with your whole heart, and become the best at what you have chosen to do. We are the market leaders in most neighbourhoods and we need to continue to rise to the occasion of exceeding our customer’s expectations for a great dining experience. If you think you’ve got what it takes to join the Domino’s success story as a franchisee, contact us today for more details about becoming part of our family. For more information contact Domino’s Franchise Recruitment on 1300 131 888 or visit www.domios.com.au/franchising/ or www.dominospizza.co.nz/franchising/

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just have a local network. I’ve got families that travel from Darwin, the furthest we’ve ever had is a family that’s come from Hong Kong. We’ve got families that come from Sydney to visit us. It just seems like everyone is supporting us, which is great,” she told Franchising. With hopes to open another 12 sites in the next 12 months, Semmens is keen to recruit other like-minded mothers - after all, these are most of the people that are inquiring about buying into the franchise.

any junior staff or anything like that,” she says. Franchisees can either buy into both the Ziggetty Snipits and the Nitpro brands or they can operate a Nitpro on its own. Ziggetty Snipits, however, can not be run as a standalone business. Regardless of their level of investment, franchisees don’t need to be qualified hairdressers, Semmens insists. “The reason being is that when it comes down to the statistics of the business, most of the income comes through Nitpro. We say ‘would you

novelty cars and DVDs. “We tell the franchisees they need one staff in each side [of the business], minimum, at all times. You don’t need to be qualified as a hairdresser to act in Nitpro. There’s no hairdressing qualifications, so any owner can own it and not feel like a third wheel, because they’ll be bringing in more income than a hairdresser out the front. They will need a hairdresser on staff but it’s only about 50 cents more an like a haircut with that?’ - it’s “Half the time the inquiries hour to have a hairdresser like ‘would you like fries with are from people who have there than someone that’s not that?’ - that’s why we only seen it, experienced it and qualified.” have them at $16.50. We work come in. They go ‘hang on, While franchisees on a mass principal rather I’ve dealt with this for three don’t have to be qualified than a boutique principal. years and you helped me. I hairdressers, they are We don’t go for the upper want one’. encouraged to have an active, five percent of the crust, we “Ninety percent of the hands-on role in the business. want to service the masses. time they’re mums. They’re “I think that every So all the stores are very the ones who need the service A D _ F R A N Y O G A MA R _ 1 1 . p d f Pa ge 1 7 / 0 2 / 1 1 , 1 1 : 0 8 AM business runs better with busy because we’re a cheaper ... All our staff, they only an owner who has hands option and the kids also get employ mums. We don’t have

I think everything runs better when it’s loved rather than managed. My personal preference is owners that work in the store

28| FRANCHISING Sep/oCt 2012

www.FRANCHISe.Net.Au

on the business. We don’t tell them they have to, but I think everything runs better when it’s loved rather than managed. My personal preference is owners that work in the store,” she says. And with an entry price in the ball park of $60,000, which includes fit-out costs, plus working capital, Semmens is expecting Ziggetty Snipits and Nitpro to really take off once word gets around. “The value in this is that it’s a new industry in Australia. You know that when you open one, you’re not opening with three outlets around you. You’re not trying to take someone else’s market to be successful. The number of people that ring me and say ‘I’d better get onto this quickly because if someone else hears about it I’ll lose my opportunity.’” F

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still going

there’s no hard and fast rule about how long a business should have been successfully franchising before it can call itself established. But there is no doubt that the companies featured here have proved the longevity of their systems. get inspired, we’re going back to the ’80s!

strong Denis McFadden, founder, Just Cuts

Denis McFadden

Just Cuts filled a gap in the market between the high end hairdresser and the barber back in 1983. I had five Just Cuts salons in Sydney and one day one of our hairdressers wanted to open her own salon using my systems. I didn’t realise I had developed a turn key franchise proto-type. She was 21 years old and on the day she was to open our first franchise she had a baby. I needed that drama, because it made me realise you didn’t need to be there nor be a hairdresser to run a Just Cuts salon. Most of our

30| FRANCHISING Sep/oCt 2012

franchisees are not hairdressers they are investors and own 2.4 Just Cuts on average. I’m proud to say Leanne, our first franchisee, is still with us today, 21 years later. Today we have 175 salons in Australia and New Zealand and one in India: finding the right partner can take a few goes to get it right and that has been our challenge there. We close a Just Cuts every 40 weeks and open one every 10 weeks. While vacancy rates for shops are the lowest in Australia compared to the rest of the world, rents will remain high despite the current shopping centre climate.

www.FRANCHISe.Net.Au

At Just Cuts we have embraced a new free and fun phone app, we have outsourced our IT and support, developed on-line learning, we measure and drive a web, Facebook and Twitter presence. Just Cuts has a new kiosk modular concept. This gives a lower entry level in the market for new franchisees or for existing owners to grow and have secondary satellite sites in shopping centres.

Amber Tiles

Amber Tiles started in 1973 in Sydney’s upper North Shore. In 1987, there were six Amber stores trading throughout NSW and, by the following year, its first store opened in the ACT. The company had a management buyout in 1996, with the formation of Amber Group Australia Ltd - at that time, the 12 existing stores in NSW and the ACT became franchised. In 1997, a private equity company purchased the majority shareholding. There are now 27 Amber

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Imagine your 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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franchise stores throughout QLD, NSW and the ACT. Early on, the brand became well known for using Fred Flintstone as its marketing mascot, and the slogan “Only Amber Tiles’ll do”. Originally Amber sold pine bark to nurseries [this provided the origin of the name because amber comes from the resin of prehistoric pine trees] but quickly moved into retailing pavers and quarry tiles. The product range in 1987 was a fraction

of what is available today: floor tiles, wall and feature tiles, pavers, retaining walls and artificial grass. Instead of Italian tiles, much of the merchandise is now Asianmanufactured; there is a completely new product group in natural stone tiles and pavers.

Forty Winks

Founded in 1984, The Forty Winks brand has grown from a handful of stores operating as a Melbourne co-operative

to an Australian franchise brand with more than 90 stores. Over this time the franchising landscape has changed significantly. Jim Stait, who has been with Forty Winks for more than a decade, says there are four key areas where the business has experienced the most change: position, people, product and promotion. Stait says, “In the mid 1980s, the stores were located in street strip shops and were between 500 to 600sq m. Today, the average size of a Forty Winks store is 1,000sq m, the biggest in the group being 2,000sq m. These days, stores are also typically located in Homemaker Centres. “In terms of our people, it is the gender of the team that has changed the most. Retail staff a quarter of a decade ago were predominantly male; however, there is an even blend of male and female team members in our 92 stores today,” says Stait. “The basic mattress and water bed of 25 years ago has transformed with luxury bedding, including minimum partner disturbance, latex, gel and pillow-top mattresses ranging from firm, medium and plush support comfort. Bedroom furniture has progressed with the demands and changes of fashion.

Alan Strange, Forty Winks’ first franchisee 32| FRANCHISING Sep/oCt 2012

www.FRANCHISe.Net.Au

“Twenty-five years ago, the majority of furniture was Australian-made; sadly, most bedroom suites are now sourced overseas. Store layouts have gone from busy and product packed to a professionally designed, spacious layout with carefully planned store traffic flow,” he says. “In terms of marketing and promotion radio, television and press were really the only three key marketing areas 25 years ago. Today, we have social media, online, including web and online shopping, direct marketing, magazines and pay television.”

Wet-Seal

Wet-Seal began in Toormina, NSW in the 1980s, and expanded from a company with licensees to a franchise company in 2001. The company has custom designed and built a multi-million dollar corporate office and manufacturing facility in Coffs Harbour, has a technical office in Melbourne and a marketing office on the Gold Coast. Highlights have been achieving rankings in the BRW Top 50 Fastest Growing Franchises for four years running; seeing a small company change into an internationally recognised >> continues on page 35

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>> continued from page 32

franchise business and being able to hold our bi-annual conferences in offshore locations such as Fiji and Hawaii. Wet-Seal has now waterproofed over two million bathrooms with a negligible failure rate, testament to getting it right. F Check out our anniversary section starting on page 86. And if you want to find out where the potential lies for franchise businesses over the next few years, turn to page 108 for a glimpse into the future.

Michael Ellis, director and founder of Wet-Seal Q: How long have you been in the franchise? A: Twenty-eight years. I have been on board since day one of the business as I am one of the original founders and was the original licensee before we switched over to being a franchised company in 2001. I wanted to see where the business could go as far as franchise expansion, product development, etc was concerned. Q: What has been the biggest challenge over the years? A: There have been a few, initial start-up of the business, convincing licensees/franchisees that Wet-Seal was worth being involved in and developing systems and products to meet the changing demands of the consumers. Q: What has been the biggest change in the system? A: Developing from solvent-based systems to water-based systems, changing over to manufacturing in-house our most environmentally-friendly products to date. Q: What have you learned from the business? A: To feel confident, be passionate and follow your ideas even when set-backs occur, know that you can make a vision happen, and to be persistent.

Roger Brown â&#x20AC;&#x201C; Brisbane franchisee Roger started as a licensee in 1987 and says steady flow of work has kept him in the business. Q: What has been the biggest challenge? A: Getting clients and keeping them, having employees treat clients the same as the franchisee does. Q: What has been the biggest change in the system? A: The introduction of computers, with the speeding up of invoicing and money turnaround. Q: What have you learned from the business? A: The importance of customer service plus good record keeping.

and enjoy every day

Franchise opportunities now available nationally. For more information on joining Hudsons Coffee, call Carly on 03 8631 7710 or visit hudsonscoffee.com.au/franchising

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famIly

fortunEs Erdal Ismail is celebrating 25 years as a franchisee with 7-Eleven

36| FRANCHISING Sep/oCt 2012

“

I bought my first store in 1986 and opened the doors on January 3, 1987. You never forget the first day. “I had found out about 7-Eleven through a couple of friends in the franchise network; we had all worked together in Coles management - I started with the supermarket straight out

of school at 15. I went to visit them in the store and thought, I could do this. As I wasn’t satisfied with my work at Coles, I did some research on 7-Eleven. I wanted to know how much money there was in the business. “I was happy with what I heard, so I opened a store in Newport, Melbourne. It was an existing store and so I paid

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goodwill for the business. It wasn’t the best or the worst decision I ever made but I learned a lot. Initially it didn’t make the money I was expecting but I saw potential and I kept the store for 15 years. “In 2000 I had another opportunity to purchase a 7-Eleven store, a petrol-station >> continues on page 39

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outlet in Williamstown. I kept that four about four years and then sold it to buy a former Mobil store in Melton in the western suburbs - and had that outlet for six years. “My son had dropped out of uni and I didn’t want him working with me -or roaming the streets. I realised he had potential and bought a 7-Eleven store for him to manage. He did the full franchisee training course with 7-Eleven and I help him with shortcuts in the business. “I have two stores now, super and savings of a few of my hands. Even from the East Keilor, which my son beginning I trained my staff so manages, and Taylors Lake, thousand dollars. Put together it was about $15,000. My I could take time out to travel, and that’s close to home. parents loaned me $30,000, and of course it’s better now “Franchising is about my sister lent me $30,000 my son is involved. But I don’t financials which gives me the switch off completely, it’s my lifestyle and freedom to do and my brother, who became my business partner, put in business so I still get the store what I want. I spend two to $10,000.3 : 2 1 P M fi gures emailed every day. three months overseas each A D _ F R C A F MA Y _ 1 2 . p d f Pa ge 1 3 / 0 4 / 1 2 , “By 1988 I was able to “I started at 23 and it was year. Once I’m on the plane borrow from the bank and hard to get the finance. I had and I’m gone, I know it’s out

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Sep/oCt 2012 FRANCHISING | 39

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business, and I paid him about $40,000. “I found I was able to make decisions more quickly after that. It was good to have a partner to share the pressures of business, but there are other pressures that come with a partnership. I found it quite difficult. It gives you pressure you don’t need and you have to be more flexible with family involved. Now it’s my wife, my daughter and my son.

My advice for a potential franchisee, do your research. Don’t be lazy, don’t take one person’s word. Find long term franchisees and speak about the good and the bad things “Of course with family paid off my parents. When that involved you can control costs in loan was finished I borrowed the payroll and pilferage. I can more to pay off my sister. We had always put in extra effort to make discussed this as a long term plan more money, if I1work the till I can beforehand. AD_ F RVI PSEP_ 1 2 . p d f Pa ge 1 6 / 0 8 / 1 2 , 1 : 0 2 AM increase my income. In franchising “In 1991 in the recession my you get back what you put in. brother decided to get out of the

“Now we have about 25 staff, and it’s hard to find staff who share the same ‘get up and go’ attitude. It’s hard to inject the passion because it’s a job for them. But you can’t expect staff to do everything at 100 percent, and when they do it’s a bonus. “Now my role is like a fire fighter, solving problems. “My advice for a potential franchisee is to do your research. Don’t be lazy, don’t take one person’s word. Find long term franchisees and speak to them about the good and the bad aspects of the business. “You have to be in tune with your business. I have always enjoyed retail. Even at an early age, before I was 10, I used to sell chewing gum to my friends and siblings in Cyprus. “My plan is to retire at 50; I’m 49 now, and I’m going to buy a boat and go fishing. But if another opportunity comes up, well, I’ll have to take it.” F

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BE A PART OF THIS AWARD WINNING BUSINESS! Lollypotz is an online and retail business specialising in hand made chocolate gift bouquets. One of Australia’s fastest growing franchise operations, Lollypotz currently has over 42 franchises in Australia, 3 in New Zealand and has further plans to expand internationally in the near future. We have franchises available for sale throughout Australia—and we are looking for hardworking and motivated people to join our team by becoming a Lollypotz franchise owner. We have a well developed system, website and National Support Ofﬁce to support you and all Lollypotz franchise owners receive excellent training, induction and ongoing support. We are very proud of our growth and achievements at Lollypotz and were thrilled to have these achievements recognised at the recent FCA 2011 Excellence in Franchising Awards where Rosemary Harmata, Chatswood and Sydney CBD Franchise Owner was awarded the Runner-up in the Franchisee of the Year (less than 2 staff) Award and Louise Curtis, Lollypotz Franchisor was awarded Runner-Up in the Franchise Woman of the Year Award. For further information about this very exciting opportunity contact: Holly Beck 1300 565 597 franchise@lollypotz.com.au

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FR.SEPOCT12.PG042.pdf

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PROFITS TO GO

A fast food outlet is a licence to print money, right? Well, no. As Sarah Stowe discovers, keeping tight controls on the costs is essential to achieve a profit-making business

ustralians love their fast food and with most of the top brands franchising their outlets across the country, there are opportunities to cash in on the taste for food-on-the-go. Flipping a burger has traditionally been a great way for youngsters to start work because the systems in many franchised fast food chains are rigorous and provide good learning environments for keen entrepreneurs. And it is the rigour of the business model that helps

keep franchisees on track when it comes to making money. There are a number of elements that contribute to the profit and loss of a fast food business, with rent and franchise fees sitting at the top of the list as fixed costs. Bert Cotte, national franchise manager for McDonald’s Australia explains the franchise agreement for the McDonald’s business is 20 years. “This allows the franchisee to plan the growth of their business with a clear

Costs are creeping up and they are unlikely to fall, communications and energy costs are rising, you’ll get business insurance costs rising. So how do you stay ahead of the game? 42| FRANCHISING Sep/oCt 2012

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understanding of what the rental or leasing cost will be over this period,” he says. Operating costs include the costs of goods (COGs), wastage, wages, and sales revenue and these elements offer franchisees flexibility in managing the costs. Cotte says “Costs are creeping up and they are unlikely to fall, communications and energy costs are rising, you’ll get business insurance costs rising. So how do you stay ahead of the game?” At McDonald’s having access to data is a huge advantage as it allows franchisees to compare their business performance, whether that’s year on year sales in their own store, other local store performance or figures from across the state. “What do you do then to

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Fast food|Opportunities

This is a very high cashflow business, you need to be looking after the costs. You need to be diligent because one percent difference in food costs is taking money off the bottom line. If franchisees are not managing food wastage and labour costs, it’s two percent off the bottom line years on key products– noodles, meat, seafood and packaging. Vegetables are subject to more seasonal prices. “What is normally a $20 box of broccoli, this week is $60. So we’ve added more vegetables to our menu to expand the choice for the franchisor from 10 to 14 to allow for seasonal costings.” The focus is on maximising the franchisees’ profit so a franchisee orders direct and pays the same price as a company owned store manager. But making money out of serving quick meals is more than benefiting from negotiated supply costs. Getting the put a plan of action into place? We’ve got a best practices book, gathered from really good units around the country,” explains Cotte. “We look at census data, the product mix, analyse and share best practice.” He advises franchisees to have a regularly updated business plan as a living document that shows profit goals and customer service plans. “It’s a trigger, and the franchisor should be the person to keep people honest to their business plan,” he says.

CoSt oF GoodS A clear benefit of being in a franchise network is the ability of the franchisor to conduct deals on the supply of goods.

Fred Pose is the franchise development manager at the fast food chicken chain Oporto. “We control all of the negotiations with suppliers, so we get a really good price,” he says. “So it’s up to the franchisee and how they translate it to use in store. We know what the gross profit should be and franchisees are not allowed to buy from other suppliers.” Phil Colburn, the Red Rock Noodle Bar franchisor, says while franchisees don’t have much control of food costs they get the best price. “We work to have a good rapport with suppliers and don’t get caught up with the big boys,” he says. As an example, he explains that Red Rock Noodle Bar has secured a stable price for two

wHAt ARe we eAtING? Hamburgers still account for a quarter of the market, but salads and sushi are proving the next most popular food segment with a 19 percent market share, followed by pizza with 16 percent and sandwiches, rolls, baguettes and wraps close at 15 percent of the market. Source: IbisWorld Fast Food in Australia 2012

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purchase orders right, and monitoring delivery and wastage are essentials to keep finances in check. It’s particularly important with fresh food, as Pose suggests. “We’re dealing in fresh produce so if you over-order it goes off and you have to throw it away. You need to ensure staff are

checking deliveries, you don’t want to lose a box of chicken fillets. “This is a very high cashflow business, you need to be looking after the costs. You need to be diligent because one percent difference in food costs is taking money off the bottom line. If

SNApSHotS The total fast food industry • • • • • •

Revenue $15.8 bn Annual growth 08-13 3.7% Annual growth 13-18 2.5% Profit $758.5m Wages $2.7bn Businesses 24,734

Market share • • • •

McDonald’s 19.6% Yum! Restaurants 16.4% Competitive Foods 8% Domino’s Pizza 5.5%

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Smartphone applications are set to revolutionise the industry and spur sales growth. Source: IbisWorld Fast Food in Australia 2012

Working on profit and loss is all part of the initial training. Our target is to upsell products and we’ve tried to make it simple for staff and AD_ F RJ ANJ UL _ 1 2 . p d f Pa ge 1 1 2 / 0 6 / 1 2 , 1 1 : 0 7 franchisees with our point of sale

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franchisees are not managing food wastage and labour costs, it’s two percent off the bottom line.” There’s also a big opportunity around portion control, suggests Cotte. For instance, adding more lettuce to a burger isn’t necessarily better for the customer, the lettuce falls off the meat. He insists it’s important to engage staff in understanding portion control. Each menu

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FR.SEPOCT12.PG046.pdf

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industry so wage costs are a significant share of revenue and operational costs including rents have remained high. The Fast Food report says “The low level of capital intensity experienced by the industry is best exhibited in its ratio whereby every $1 spent on capital will be balanced by $8.40 in wage costs in 2012-13.” While the franchisor can give guidance on the appropriate levels of staffing to meet the demands of the outlet’s busy times and slow periods, it’s the

item and raw product has sales and yield data so keeping an inventory and accurate measurement of wastage is important. “Every month at Oporto we expect profit and loss statements and the business development managers will meet with franchisees and benchmark them against the

group,” says Pose. “There are systems that help them do this but some of this has to come from them. When you talk to existing franchisees, they are managing food costs, wages and turnover. Those are the three things they concentrate on.”

wAGeS

IbisWorld predicts an annual wage rise of 1.9 percent through to 2017. It’s a labour intensive

FASt Food IN AuStRAlIA: RepoRt The IbisWorld report Fast Food in Australia, published July 2012, predicts a number of constraints on the future market: intense competition within the industry, a deteriorating economic climate, the age of the population, competition from convenience stores and the growth in easyto-prepare meals. However, the authors write, “Consumer demand for value, convenience and nutritious food is expected to drive industry performance over the five years through 2017 to 18.” The number of secondary school students is an important external driver for the sector, as fast food taps into both the age group’s food preferences and the convenience factor for working parents. Consumers aged 14 to 17 account for almost a quarter of sales – 22 percent, with 18 to 24 year olds the biggest customer

46| FRANCHISING Sep/oCt 2012

group at 30 percent of the market. Australia’s fast food sector is a mature industry which has brought product innovation but constrained profit margins and slow technological development. As some of the companies in the industry move into the next phase there is likely to be a resurgence, continued demand for niche products, and an overall increase in businesses up to 2018 as new players enter the market. The shift towards healthier fast food will benefit franchisees, the report predicts. “Due to this shift, franchise operators will increasingly dominate the industry and competition will be fierce, with each operator seeking to maintain market share.” In contrast consumers will be looking for value for money and may treat fast food as a treat.

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For new franchisees we encourage them to do due diligence, we ask them to consider what numbers they need to get to make money franchisee who will be balancing the books and the staff roster. That can be a challenge if they want to keep staff levels to a minimum for cost purposes, suggests Colburn, whose company owned stores will frequently roster on more staff than do franchised owned outlets. It’s all about getting the right team and customer service, rather than cutting costs, he says. Bert Cotte echoes the need to be constantly vigilant in staff rostering. “Investing in the staffing of your business is a key area where you can invest to grow your sales. It’s important to forecast accurately, then be nimble with reaction to fluctuations from your forecast. Quick reaction to increases and decreases in sales will optimise customer experience.” For instance, have an accurate forecast for different weather patterns, weekend days and holidays.

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wHAt’S tHe key to pRoFItAbIlIty? At McDonald’s the three essentials are: • Growing top line sales beyond annual cost pressures • Managing food costs – McDonald’s is a business that makes a small amount of money on a lot of transactions. This means that there is only a small margin to play with, thus a certain level of precision is required to manage portion sizes of each ingredient • Achieving good levels of productivity from your staff, whilst delivering on customer expectations Cotte also highlights capacity issues; for instance, if five cars are stacked up in a drive through, the impact is that other customers may keep driving. Franchisees should find something for staff to do if they’re not busy, to generate extra sales, like taking samples out into food court areas, suggests Cotte.

tuRNoveR

Red Rock Noodle Bar aims for an improvement in the top line rather than letting franchisees focus on cutting the bottom line. “Working on profit and loss is all part of the initial training,” explains Colburn. “As an owner there’s more investment in the business so you can put in more hours. “Our target is to upsell products and we’ve tried to make it simple for staff and franchisees with our point of sale. We have company stores and use these as a test market. We walk the talk.” One way to increase turnover is through promotions and a successful marketing strategy will boost awareness of tried and tested core products, while new menu items can bring in new customers, says Cotte. Promotional activity can include harnessing the power of a local network as at Oporto. “Oporto is different from other systems,” says Pose. “We try and get franchisees together in one region for their marketing strategy – that’s up to 20 stores working together. They get more bang for their buck this way. The marketing programs can be checked for impact and returns on investment, if franchisees provide the right information, there are analysis systems,” says Pose. Franchisees need to have information to best manage their costs and having access to financial data from across the network is an advantage of the franchise model. At Oporto the sharing of financial information starts before franchisees are signed up. “We share our benchmarks with potential franchisees. For new franchisees we encourage them to do due diligence, we ask them to consider what numbers they need to get to make money,” says Pose. “Each franchisee needs to have absolute discretion to control the costs of the business, underpinned by a common vision to keep a high standard,” adds Cotte. Sharing benchmark performance in each key line of the P&L helps franchisees achieve effective cost management, he suggests. F

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REASONS TO TO CONTACTT THE T TH FRANCH HISE SHOP SH SHOP FRANCHISE TTODAY: TODAY AY:

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KīĞƌŝŶŐ ĂŶ ǆĞĐƵƟǀĞ >ŝŵŽƵƐŝŶĞ ĨƌĂŶĐŚŝƐĞ ƚŚĂƚ ĐĂƚĞƌƐ ĨŽƌ ƚŚĞ ƚŽƉ ĞŶĚ ŽĨ ƚŚĞ ŵĂƌŬĞƚ ŝŶ ƚŚĞ ^ǇĚŶĞǇ ŵĞƚƌŽ ĂƌĞĂ͘ ůů ĂĚŵŝŶ ĂŶĚ ďĂĐŬ ŽĨ ŚŽƵƐĞ ďŽŽŬŝŶŐƐ͕ ĚŝƐƉĂƚĐŚ ĂŶĚ ŝŶǀŽŝĐŝŶŐ ĚŽŶĞ͕ ĞŶũŽǇ ƚŚĞ ĚƌŝǀŝŶŐ͊

dŚĞ Ğ dĞĂŵ /ŶƚĞƌĞƐƚĞĚ ŝŶ ĞƐƚĂďůŝƐŚŝŶŐ ĂŶĚ ŵĂŝŶƚĂŝŶŝŶŐ ǁĞďƐŝƚĞƐ ĂŶĚ ŽƚŚĞƌ ďƵƐŝŶĞƐƐ ŵĂƌŬĞƟŶŐ ƐŽůƵƟŽŶƐ ĨŽƌ ƐŵĂůů ĂŶĚ ŵĞĚŝƵŵ ďƵƐŝŶĞƐƐĞƐ͍ ĂƌŶ ŐŽŽĚ ŝŶĐŽŵĞ ĂŶĚ ǁŽƌŬ ŇĞǆŝďůĞ ŚŽƵƌƐ ĨƌŽŵ ǇŽƵƌ ŽǁŶ ŚŽŵĞ͘

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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

ΨϲϱŬ

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

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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

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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

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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

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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

ƵƐƚĞƌ ŽůůŝĞƐ

>ŝƩůĞ /ŵĂŐĞƐ

Ɛ Ă ƵƐƚĞƌ ŽůůŝĞƐ ďŽŽŬŝŶŐ ĂŐĞŶĐǇ ĨƌĂŶĐŚŝƐĞ ǇŽƵ ĐĂŶ ĚŽ ƚŚĂƚ͘ dŚĞ ŽƵƚƐŽƵƌĐŝŶŐ ŽĨ ĚŽŵĞƐƟĐ ƐĞƌǀŝĐĞƐ ŝƐ ďŽŽŵŝŶŐ ĂŶĚ ŚĞƌĞ ŝƐ ĂŶ ŽƉƉŽƌƚƵŶŝƚǇ ƚŽ ƚĂŬĞ ĂĚǀĂŶƚĂŐĞ ǁŝƚŚŽƵƚ ůŝŌŝŶŐ Ă ĚƵƐƚĞƌ͊ DĂƐƚĞƌ &ƌĂŶĐŚŝƐĞƐ ĂǀĂŝůĂďůĞ͘

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

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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

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dĂƐƚĞ ŽĨ ƵƌŽƉĞ

hƌďĂŶ ƵƌŐĞƌ

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>>Ğƚ ƵƐ ĐŽŵƉůĞƚĞ ƚŚĞ ŶĞǆƚ ƉŝĞĐĞ ŽĨ ǇŽƵƌ ƉƵǌǌůĞ͘͘͘ >Ğƚ ƵƐ >Ğƚ ƵƐ 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 ǌǌůĞ ůĞ͘͘͘

^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

Ŷ^ĂůĂĚĂ Ŷ^ĂůĂĚĂ ŽīĞƌƐ ĞǆĐŝƟŶŐ͕ ŚĞĂůƚŚǇ ŵŽƵƚŚͲǁĂƚĞƌŝŶŐ ƐĂůĂĚƐ ĂŶĚ ŚŽŵĞŵĂĚĞ 'ƌĞĞŬ ŇĂǀŽƵƌĞĚ ǇŽŐŚƵƌƚƐ ĚĞƐŝŐŶĞĚ ďǇ ŽƵƌ ,ĞĂĚ ŚĞĨ͘ <ŝŽƐŬƐ ĂŶĚ ĐĂĨĞƐ ĂǀĂŝůĂďůĞ ŝŶ ƵƐƚƌĂůŝĂ ĂŶĚ E ͘ DĂƐƚĞƌ &ƌĂŶĐŚŝƐĞ ĂůƐŽ ĂǀĂŝůĂďůĞ ŝŶ ƵƐƚƌĂůŝĂ͘

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FR.SEPOCT12.PG050.pdf

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Opportunities|Aged care

SENIOR

SERVICE

Passion and people skills are the two prerequisites for anyone looking to invest in an aged care franchise. Danielle Bowling reports

aring for the elderly – we all know we should do it, but some of us are more cut out for it than others. Some of us even choose to make a career out of caring for our older citizens. And while you might think that working in the aged care sector requires a host of medical qualifications, franchisors in this industry are actually more concerned with passion than past experience.

COMPASSION COUNTS Home Instead Senior Care is a non-medical provider of home care and companionship to older people, with services including assistance in showering and dressing, meal preparations, light housekeeping, medication reminders and incidental transport. The franchise has 19 offices around the country and director

An investor will be looking at their bank balance. An owner-operator will be looking at the outcomes they’ve achieved in that week 50| FRANCHISING SEP/OCT 2012

WWW.FRANCHISE.NET.AU

Martin Warner says all franchisees must be hands-on, not as care givers but in more of a managerial role. Most importantly, they must be compassionate and familiar with the services required by the elderly. “They need to have an understanding of older people’s needs because you’re dealing with organisations in the industry, like hospitals, doctors and other community care providers, so having an understanding of what an older person needs is very important. Having some compassion for older people is very important,” he says. It’s a similar story at Just Better Care. Director Trish Noakes says

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Aged care|Opportunities

many franchisees are passionate about aged care because they’ve seen first hand the importance of providing professional, friendly and compassionate care for the disabled and elderly. “We look at why they’re wanting to come into this business and just about every one of them has had instances in their family life, say a mum or a dad or a close family member, where they could see that in-home support would have made all the difference to their lives, so they understand it on a personal level and they’re people that just care about people. They want to get better outcomes for people,” says Noakes. Similarly, Just Better Care requires its franchisees to be active in the business. “We look for people who want to work in their businesses. They need to be owner-operators. A D _ F R O V E MA R _ 1 2 . p d f We’re not looking for investors. We want people who have good

A little bit of business experience is something that we do like and while they also have to be Pa ge 1 7 / 0 2 / 1 2 , 9 : 5 2 AM passionate, they have to be reasonably extroverted

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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keen for its franchisees to expand with more than one territory, it mustn’t come at the cost of their personal dedication to helping the elderly. “When we started we thought we would take on people investing and doing it under management, but we’ve looked at some of those people and started to understand more about the industry. You’ve got to be hands-on. You’ve got to have a passion and a desire to look after the elderly. Anyone who comes in here and thinks they can have five or six of them and they’ll make lots of money out of it, that’s not what we want to do. We really want people who are actually in our business, to grow with it,” says Fuller.

MAKING CONNECTIONS

A little bit of business experience is something that we do like and while they also have to be passionate, they have to be reasonably extroverted leadership, who will be able to inspire their staff, guide their staff and empower their staff so they can do what they need to do. “You just don’t get that involvement with an investor. An investor will be looking at their bank balance. An owneroperator will be looking at the outcomes they’ve achieved in that week. Yes, the business has to be successful financially, that’s 52| FRANCHISING SEP/OCT 2012

a given, but there’s more to these businesses. If someone hasn’t got a heart for these businesses, then they won’t do as well,” says Noakes. The right franchisee – a caring person who wants to make a difference – according to Senior Helpers director Mike Fuller, stands out in the recruitment process. And while Senior Helpers is

WWW.FRANCHISE.NET.AU

At Senior Helpers, the typical duties of a franchisee are to schedule the carers’ appointments, build relationships and create referral bases by educating others in the aged care sector about what services the franchise provides. “A little bit of business experience is something that we do like and while they also have to be passionate, they have to be reasonably extroverted. You’ve still got to go talk to families in a caring way and you’ve still got to be able to talk to the community and spread the word about Senior Helpers as much as you can. You can’t have all this passion and then not be able to share it with people,” says Fuller. Personalised, one on one client to carer relationships is what separates Home Instead Senior Care from the pack, says Warner, who has made a point of separating the franchise from the government funded services. “The vast majority of this industry is government funded. We’re actually very unique in the fact that we don’t get involved >> continues on page 55

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in that area. The services that we provide are based on building relationships with clients, whereas typically, the government system is often about providing tasks, so, for example, in many cases they would be about going and showering somebody, about making the bed, about washing the dishes. There isn’t time for them to build relationships in terms of companionship. Our focus is entirely on the client first,

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in the initial stages they’ll go out and meet with new private clients that come onboard and go talk to them, or they might spend more time working with their staff, but progressively... they need to very much be working on their business and getting out and building up the network within their community and engaging with all sorts of people,” says Noakes. Just Better Care attracts people from all walks of life, with current franchisees

Our focus is entirely on the client first, building a relationship with them, understanding their holistic needs building a relationship with them, understanding their holistic needs, and that’s how we build our business.” Building relationships, not just with the client but with other industry stakeholders is also fundamental at Just Better Care, which also asks that its franchisees refrain from taking on the role as care giver so they can grow the business and promote the brand throughout the local community. “We want our franchisees to be running their businesses, not to be getting into their businesses. It might be that

coming from previous career paths including physiotherapy, pharmacy, nursing and even a previous master franchisee at The Cheesecake Shop. “I think all of our franchise owners have a very acute social awareness. They want to make an impact. They want to be in a business that makes a positive difference in peoples’ lives. They like to be in a relationship-type businesses. They’re looking for something beyond a business, they want something that’s rewarding and that gives back to them personally.” F WWW.FRANCHISE.NET.AU GBC 0004 230mm x 85mm w-FINAL.indd 1

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LEADING THE WAY

Productivity is fundamental to any firm’s success and two companies are geared up to help organisations make the most of their performance. Domini Stuart reports

en years ago most companies took it for granted that they could borrow money to expand and develop their business. Then came the Global Financial Crisis and its aftermath of continuing worldwide volatility, changing markets, rising costs and extremely cautious lenders. Businesses of all sizes are still doing it tough and, as a result, have become more inward-looking. For the foreseeable future, they’re likely to stay focused on taking risk out of their organisation and

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making the most of the resources they have. Leadership Management Australia (LMA) and Brian Tracy International (BTI) both help businesses do just that – and both are thriving. “In tough times, we’re seen as a cost saving measure because we can help the existing staff to produce better results,” says Grant Sexton, executive chairman of LMA. “A company can put 10 people through one of our programs for a third of the cost of employing another person, and the productivity of the 10 participants will improve by 20 percent.” Andrew Phillips, the owner, founder and

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CEO of BTI in Australia and New Zealand, points out that labour is the biggest cost for any business, accounting for around 60 to 70 percent of all revenue raised. “If you can improve productivity at current fixed costs, the increase in profits goes straight to the bottom line,” he says. “Our elevator pitch is that we help companies who are serious about improving

Our people also appreciate being able to build their own business around a highly professional and quite prestigious role. They come to us from a business background and continue to operate in that environment, working with their own networks as well as developing new ones bottom line profit by improving the productivity and performance of their people.” This is very different from simply increasing employees’ workload. Where companies cut costs by simply shedding staff, those remaining often feel overworked, resentful and lacking in motivation; many will be driven to move on. Helping them to become more productive by improving their own skills and abilities has a diametrically opposite effect. “Retention of high quality talent is one of the biggest challenges in any business today and, when you’re developing people, they’re much less likely to leave,” says Sexton.

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Grant Sexton

Leadership Management Australia (LMA) Founded in 1972 Cost of entry: $73,000 + GST “We work on the very strong principle that our licensees not only provide training and development but also help their clients to build a culture where good people want to stay and the business remains healthy. We are increasingly being included in the package used to attract quality people as well as the package used to retain them.”

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Finding a balance

LMA promotes work/life balance for its clients and also licensees. “Some people get into business, find the tail wags the dog and end up working 80 hours a week,” Sexton continues. “We’re a business-hours business with, typically, a 45-hour working week. “Our people also appreciate being able to build their own business around a highly professional and quite prestigious role. They come to us from a business background and continue to operate in that environment, working with their own networks as well as developing new ones. There aren’t that many white-collar-to-white-collar business opportunities around.” Many licensees are former business owners, CEOs or senior managers with experience in sales or marketing. “We look for good communication and skilled relationship building as well as an understanding of how business works,” says Sexton. “Expert facilitators run the programs on our licensees’ behalf so their role is more about making connections, building the client base and developing long-term relationships with their clients. One thing they have in common is a passion for making a difference to people’s lives, and that makes the job personally as well as financially rewarding.” A passion for training, teaching and coaching can also be helpful – but it isn’t enough on its own.

Any business system... is a vehicle for achieving personal goals. We help potential licensees to identify where they would like to be in five or 10 years’ time then backtrack to see if ours is the best model to take them there “Our licensees must also have the perseverance and endurance to keep searching out clients and building their business,” says Phillips. “They have to be familiar, or to become familiar, with business metrics, KPIs – the

Australasia Pty Ltd

OUTSTANDING BUSINESS OPPORTUNITY! Become a State distributor in Australia / New Zealand for the most signiﬁcant advance in water treatment technology in the world. To see it is to believe it. Nothing less will do. And you can see it now at www.htiwater.com Potential markets are in: Defence; Mining; Disaster Relief – ﬂoods. Cyclones, Earthquakes; Emergency Services; Police; Marine – commercial and recreational; Coastguard and pleasure related outdoor markets such as hiking, 4WD, camping and caravan. To register your interest, please call Mr. Errol McClelland on 0429 39 69 39 or email errol@htiwater.com.au

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language of business. And, most importantly, they need clarity around their personal goals. Any business system – whether it’s this one, a fast-food outlet or a lawn mowing enterprise – is a vehicle for achieving personal goals. We help potential licensees to identify where they would like to be in five or 10 years’ time then backtrack to see if ours is the best model to take them there.”

No service-based franchising opportunity will find all of your clients for you. Pennies from heaven might provide 10 percent of your revenue but you have to take personal responsibility for the rest Getting it right

Both BTI and LMA are rigorous in their selection process, more focused on finding the right people than rapid growth. “We have 37 licensees around Australia and New Zealand and we aim to put on just five or six new people a year,” says Sexton. “We’re very selective and we want potential licensees to be very selective, too. It’s vital that we get the partnership right.” BTI has 25 licensees and, again, looks to recruit just five or six people a year.

Andrew Phillips

Brian Tracy International (BTI) BTI Global was founded in the US by Brian Tracy in 1981 and came to Australia in 2006. Cost of entry: $$49,950 + GST to $79,950 + GST depending on programs the licensee wishes to provide. “One of the worst things that could happen is for one of our people to do a poor job of delivering our program to the market,” says Phillips. “In the 15 years I’ve been in franchising I’ve seen businesses come and go and I’ve learned that the ones that do best are super conscious of their brand reputation, so we take care

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NATIONAL MASTER FRANCHISE OFFERED Home Aged Care

The home aged care business in Australia will grow dramatically during the next 15 years as seniors aged 65 + will comprise nearly 20% of the population. Right at Home® is an innovative multinational leader of in-home aged care services offering exclusive development rights for Australia.

Right at Home® Provides • Proven business model and franchise system • Emphasis on training and continued support in healthcare and franchising • Extensive healthcare and franchising experience Candidate Characteristics • Successful business development track record • Financial resources to develop the market • Healthcare experience is NOT required

CONTACT: ROBERT SHAW rshaw@rightathome.net +1 (949) 419.7429 www.rahglobal.com

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to recruit excellent individuals with ethics, integrity and commitment.” Once on board, franchisees with both organisations receive training, mentoring and ongoing support. They also have help with generating their first leads – what Phillips calls “pennies from heaven.” “But no service-based franchising opportunity will find all of your clients for you,” he says.

When times are tough we can help businesses become more resilient. Then, when times are good and they’re growing, we can help consolidate and make the most of that growth. It works well either way “Pennies from heaven might provide 10 percent of your revenue but you have to take personal responsibility for the rest.”

A bright long term future

AD_ F RJ USSEP_ 1 2 . p d f

Pa ge

While financial experts are predicting little change in the economy for at least five years, licensees need have no fear of an upturn. “When times are tough we can help businesses become more resilient,” says Sexton. “Then, when times are good and they’re growing, we can help consolidate and make the most 1 1 4 / 0 8 / 1 2 , 9 : 4 1 AM of that growth. It works well either way.” F

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www.healthyhabits.com.au

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help,

When you need to click the help tab on your computer and can’t get a problem solved it’s time to call in the experts. So what does it take to run a computer repair business? Sarah Stowe reports

they need Somebody M ost homes and businesses today are connected to the outside world through IT – great when it all works, challenging when it doesn’t. So running a business that comes to the rescue when a computer breaks down should have lots of potential. Could you be that person? We asked two franchised businesses to explain what they are looking for in a franchisee.

64| FRANCHISING Sep/oCt 2012

SupeRGeeK

What do you do? SuperGeek.com.au specialises in helping and supporting SMEs with their computer and IT needs. From computer repairs, computer sales, advice, cloud and storage, websites and full time IT solutions, we can service commercial offices, home businesses or personal computers.

www.FRANCHISe.Net.Au

How long have you been franchising? After not being able to service his computers, our managing director created SuperGeek.com.au in 2004. From there he found that there were many, many businesses that also needed help with their corporate IT needs. How many franchisees do you have? We have more than 40 franchisees servicing many more territories across

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Australia. After starting their first franchise, many go on to purchase more and more territories. Describe a typical dayâ&#x20AC;&#x2122;s work for a franchisee Every franchisee is different. The main advantage of owning your own business is that you decide when to work longer and harder and when to take a break, when to spend time with the family and when you need to employ another technician to help you. Because all jobs are provided by the SuperGeek call centre, a typical day should start with three to four jobs already booked in. The franchisee chooses when they would like jobs to be booked in and our call centre fills their calendars. If there are minimal jobs for that day, the franchisee uses that time to market locally and call in and talk with businesses in their areas. What technical skills are required by franchisees? More than anything, a friendly personality, great customer service and the ability to talk with their customers in a simple and non-IT way. You need to be able to build, work and

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understand any desktop computer â&#x20AC;&#x201C; understanding the functions of each component and knowing how each part works with the next. Knowing the mainstream software programs is a must, building and configuring wire and wireless networks and being familiar with all

The main advantage of owning your own business is that you decide when to work longer and harder and when to take a break major ISPs is also important. The information you know today will not be the same tomorrow so having the discipline to learn new techniques and to stay up to date with new technologies is also beneficial. What attributes do you look for in your franchisees? Approachable, a good personality, the ability to hold a conversation, and to

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be IT savvy but not a know-it-all. As much of our business is repeat clients, knowing how to build customer relationships first and foremost is key. What initial training do you provide for franchisees? Before a franchisee is selected, they have to undergo our internal testing, and spend at least a

Before a franchisee is selected, they have to undergo our internal testing, and spend at least a week on the road with one of our technicians week on the road with one of our technicians. This is for their own benefit as well as ours, to make sure all parties are happy A D _ F R WA T S E P _ 1 2 . p d f Pa ge 1 before putting pen to paper. Our induction tests are simple but

important to gauge where the knowledge of each technician is at. The first three weeks of employment is extensive training in hardware, software issues, our world class internal systems and dealing with customers. Post training is supplied by our head office training manager 7 / 0 8 / 1 2 , 3 : 3 7 PM who spends time with each and every franchise.

How do franchisees keep up to date with technology? We expect our franchisees to take ownership of their own knowledge improvement. In any business you must keep up to date with your craft, your industry and with any competition or opportunity. Outside of this, our internal intranet has the ability to

Picturing a career change? Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you. Property photography is an exciting and diverse industry, where no two days are the same. Each day youâ&#x20AC;&#x2122;ll be out and about photographing different properties and meeting lots of new SHRSOH DORQJ WKH ZD\ 7KLV LV GHĂ&#x20AC;QLWHO\ QRW D GHVN MRE Hereâ&#x20AC;&#x2122;s some other reasons why you might choose Top Snap: No need for an expensive retail presence. All you need is your photography gear, vehicle and computer and youâ&#x20AC;&#x2122;re set to go. We work in a growth industry. Our services are in high demand with the residential and commercial real estate industry. Weâ&#x20AC;&#x2122;ll help you succeed. Youâ&#x20AC;&#x2122;ll get the usual intensive training, plus dedicated support with sales and marketing, that youâ&#x20AC;&#x2122;d expect from a high quality, established franchise system. 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

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UNIQUE FRANCHISE OPPORTUNITY JOIN AUSTRALIAâ&#x20AC;&#x2122;S FASTEST GROWING

REGISTERED TRAINING ORGANISATION The Management Institute of Australia is a Nationally Registered Training Organisation.

We take care of the compliance issues and tendering so you can get on with running your business and looking after your clients.

We have developed a Training Industry opportunity for talented individuals to leverage their skills and to achieve greater returns for their training skills. Become part of a proven business model and gain access to the current scope of over 60 Qualifications! As an industry leader you can start building your business NOW!

Become a franchisee and get access to the KNOWLEDGE and EXPERTISE of a PROVEN BUSINESS MODEL and more importantly you can GET STARTED TODAY!

HISE FRANC ITIES TUN OPPOR ABLE AVAIL

For a franchise information pack visit www.mia.edu.au/business-opportunities Or if you prefer to speak to our team today please call

1300 664 908

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knowledge share on any topic, problem or issue that they come across. We use LinkedIn Groups to also communicate internally and we hold franchisee meetings every month. How do franchisees source business? Franchises contribute to a global marketing fund that is controlled by our head office marketing manager. This covers all our various forms of marketing aimed at all coverage areas. Our franchisees are encouraged to also market themselves locally as much as they can. Because they are territory based, common sense dictates that they should spend as much time as possible within their areas being visible, active and known as the IT professional in their suburbs. What help do franchisees get with the admin? We pride ourselves on our internal CRM system. This takes care of all communication, client records, billing, suppliers and jobs. Actual admin is minimal.

AuStRAlIA wIde I.t.

What do you do? Australia Wide I.T. provides on-site computer consulting and repair services to businesses with up to 100 computers. How long have you been franchising? About one year. How many franchisees do you have? Only two at the moment – we are still very young in the franchising arena. Describe a typical day’s work for a franchisee In the early days a franchisee will split their time about 50/50 between working in the business (i.e. fixing computers) and working on the business – building

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relationships, finding new clients. As the business matures the franchisee will typically hire staff to take care of the day to day running

As the business matures the franchisee will typically hire staff to take care of the day to day running of the AD_ F RUNI SEP_ 1 2 . p d f Pa ge business

Be part of

of the business, freeing them up to focus on growing their businesses. What technical skills are required by franchisees? Franchisees need to have very strong Windows, server and desktop technical experience. They need to be able to think on their feet and solve technical problems using their knowledge, experience and online research tools. What attributes do you look for in your franchisees? First and foremost we look for friendly candidates who are approachable and have natural people skills.

What initial training do you provide for franchisees? We have an intensive four week training course to teach our new franchisees how to run their new business and how to develop it in to 3 / 0 8 / 1 2 , 3 : 5 5 PM a profitable and predictable enterprise that runs with or without them.

How do franchisees keep up to date with technology? Mostly through self-learning, however whenever a new product is released, such as the upcoming Windows 8, all franchisees and their staff are given the opportunity to learn in a more structured environment. How do franchisees source business? That’s the holy grail! We can’t go giving away all our secrets now, can we? What help do franchisees get with the admin? Franchisees receive full training to be able to deal with the business admin themselves, however they can choose to outsource some or all of it to head office; this is a great option for those who just want to get on with fixing computers. Ongoing admin support is only ever a phone call away for those who choose to do it themselves. F

Petroleum’s success story

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www.FRANCHISe.Net.Au

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home advantage Shop till you drop might be the mantra of the shopaholic, but increasingly the purchasing power lies online. So how does a bricks and mortar franchise retail business in the household sector sustain its business? Sarah Stowe reports

72| FRANCHISING Sep/oCt 2012

hopping is very much part of the Australian psyche, although increasingly the methods of purchasing are becoming technology-based. Research from the Australian National Retailers Association (ANRA) shows almost a quarter of Australian consumers have used a phone app as a shopping aid, and 38 percent compare prices online. Commenting on the survey of 1000 Australians, ANRA CEO Margy Osmond said “We have known for some time that Gens Y and X are bargain hunters, and now they are employing their smartphones and iPads to hunt down deals, but the use of gadgets is now growing across the board.” www.FRANCHISe.Net.Au

As consumers’ purchasing habits evolve, so too must retailers, who need to respond to this brave new world. The Australian Bureau of Statistics showed in June 2012, in trend terms, a 1.4 percent rise in retail turnover compared to June 2011. The overall spend for the June quarter in Australia was $62,562.3 million (seasonally adjusted). At the time, Osmond responded to the news that the sector was showing positive signs: “Retail has been in the doldrums for some time and we are beginning to see the much discussed green shoots of recovery in 2012 with consistent, positive growth in retailing which is both welcome and long overdue.” However the household goods

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marketplace fared less well in the statistics: seasonally adjusted the hardware, building and garden supplies rose by 0.9 percent while furniture, floor coverings, houseware and textile goods fell by 0.7 percent. Osmond describes the drop in household goods retailing as “disappointing”. So in the light of all this, what do retailers in the household goods sector do to keep customers coming back and spending?

Clark Rubber

Jeff Poyser, network development manager, Clark Rubber says the focus is on product: down to earth, reasonably priced, d-i-y lifestyle products in a variety of categories - foam and rubber, pools and recreational outdoors. “We review suppliers, ensure the right products are sourced at the right price, and our buying department continues to source on the right terms, which is a key component of our success,” he says. The buying department provides a core range for franchisees who can then stock merchandise according to local customer demand. Targeted products are AD_ F RVANSEP_ 1 2 . p d f Pa ge also developed in response to consumer trends and the chain now has a very broad

Clark Rubber has a broad customer base

We spend millions of dollars on marketing, we’re driving people to the stores and franchisees need to be ready to take advantage of the9 opportunities; TV, 1 1 6 / 0 8 / 1 2 , : 3 0 AM catalogues in all areas, some are also on radio

VANITY BAR - ESSENTIALS VENDING

www.vanitybar.net

Smart :: Compact :: Convenient • Unique concept • Great lifestyle business • We can provide locations • Excellent Return on Investment • Exclusive product range • Franchise packages from $17,900 + GST

Secure your area by contacting Samuel Hamrosi on 02 9420 9933 or samuel@vanitybar.com.au

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customer base, from families to tradies, even young kids are now consumers, he says. Despite this, it is neither the merchandise selection nor the product price that is the overarching point of difference for A D _ F R S I G MA Y _ 1 2 _ 2 . p d f a ge 2 the retailer. “The biggestPthing for us is service. People can get some

in both retail and the business admin, Poyser says. “Our business development managers are mainly focused on retail aspects, the layout of the store, promotions, the retail team, service and sales. Business admin trainers are qualified accountants, and this is huge for us. BATs visit monthly in some cases, we do an annual review, we compare a budget to actuals and do next year’s budget.” Franchisees also have access to an IT department and help desk. Online sales channels are proving confronting to many retailers today who are struggling to compete with the easy access and competitive prices that things elsewhere, we stock a lot of generally mark e-retailing. So what’s at Bunnings, but they don’t how is Clark Rubber facing up to have our service,” explains Poyser. this very modern challenge? The franchisor invests time The business has only recently on training to ensure that good joined the online retail crowd, customer service is maintained says Poyser. “Is online having a across the network. It’s all part 1 3 / 0 4 / 1 2 , 1 0 : 2 7 AM downward effect? Absolutely not. of a strong support structure It won’t have the impact because for franchisees, with assistance

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For Franchise Infor Information Call:

02 9807 2022 74| FRANCHISING Sep/oCt 2012

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sales go to stores. For us itâ&#x20AC;&#x2122;s about franchisees keeping their focus on the stores. â&#x20AC;&#x153;We spend millions of dollars on marketing, weâ&#x20AC;&#x2122;re driving people to the stores and franchisees need to be ready to take advantage of the opportunities; TV, catalogues in all areas, some are also on radio.â&#x20AC;? At Clark Rubber, local area marketing is designed in-house. Franchisees engage in local sports sponsorship and this helps build the strong brand awareness.

Carpet Court

Over at Carpet Court, national marketing manager Natasha Gallardo explains how the flooring business is taking strides to embrace a new retail world, and has a new creative direction. â&#x20AC;&#x153;The new creative is based on the idea that flooring is the fundamental component of designing a room, and is the place interior designers and homemakers begin when planning to decorate a space,â&#x20AC;? says Gallardo. â&#x20AC;&#x153;Looking at the flooring industry in particular itâ&#x20AC;&#x2122;s quite functional so when consumers are looking at designing a room flooring can be the last thing considered, and it has to fit

the budget. Weâ&#x20AC;&#x2122;re trying to educate consumers that floors are more of an aesthetic, can show personality and make rooms really beautiful. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s about changing perceptions.â&#x20AC;? Competitors are the main flooring specialists, but Carpet Court is looking to differentiate itself with its method of communication. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re communicating to the consumer, weâ&#x20AC;&#x2122;re looking to engage in different media. Part of our campaign is using technology.â&#x20AC;? In February the franchise chain launched heavily into online. It started conversations with customers on its social media sites and thereâ&#x20AC;&#x2122;s now a Facebook competition and it has launched a Pinterest account. The philosophy is to be in the space customers use: where and how they want to get information, Gallardo says. The retailer has teamed up with interior

Darren Palmer and Stacey Kouros

Investing in the brand is the biggest think weâ&#x20AC;&#x2122;re doing. Carpet Court is the largest such retailer and we pride ourselves on service, weâ&#x20AC;&#x2122;re specialists

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 ďŹ nancial 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 proďŹ table, 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

Signs - Banners - Vehicle Graphics - Solutions - Branding

Australiaâ&#x20AC;&#x2122;s No.1 Sign Franchise t t t t t t t

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www www.signarama.com.au w ww si signarama gnaram com au www.FRANCHISe.Net.Au

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It’s about how we use technology too. We’re more relevant, giving information when people need it. It’s more exciting designers to launch the company’s new direction and creative positioning. Interior designers Darren Palmer and Stacey Kouros feature in a suite of new TV commercials as part of the marketing initiative that includes a social media campaign and online advertising. A social media competition on Facebook was launched on 20 August and aims to encourage interior design enthusiasts and experts across the country to share their own style and inspirations with Carpet Court. Running over six weeks, the competition gives entrants the chance to win a $10,000 room makeover, together with the styling services from Palmer or Kouros. 76| FRANCHISING Sep/oCt 2012

The interior design brand ambassadors are lined up for a series of tv ads over 12 months and will help further drive the technology communications, Gallardo adds. Gallardo admits it’s hard to have an online shopping environment in the flooring sector but nonetheless Carpet Court launched an e-commerce platform for cash and carry items that are delivered to the customer’s door, with sales transferred to the local franchisee. “People will use the internet to do lots of research, but people really need to touch and feel the flooring, it’s very subjective.” While the national campaign is focused on embracing new media channels, franchisees will be utilising more traditional

www.FRANCHISe.Net.Au

means of communication to get across their message: print ads and radio. There are just under 200 stores, all franchised, in the Carpet Court chain. For these retailers the traditional peaks and troughs of trading have been harder to predict since the GFC and the erratic trading pattern has been challenging, Gallardo says. “Investing in the brand is the biggest thing we’re doing. Carpet Court is the largest such retailer and we pride ourselves on service, we’re specialists.” This provides a point of difference to competing brands, she says. Franchisees can customise their stock, adding to the core range products to suit local demand. In addition, exclusive ranges developed in-house are a standout for the chain and help raise its profile among the mainly female consumers, aged 25 to 54 and house-proud home owners. “We are trying to have a point of difference. Rugs for instance, there’s an exclusive range out in September that’s been designed in-house.” When it comes to persuading the customers to purchase, the question of price is relevant but not supreme, she says. “It’s more important in terms of showing value, quality and service. It’s not necessary to be the cheapest. “It’s about how we use technology too. We’re more relevant, giving information when people need it. It’s more exciting.” The newest developments will be released in stores in October – interactive interior design hubs that allow customers to use an iPad and virtually furnish rooms with Carpet Court flooring, adjust wall colours and change window coverings to create a fresh room design. A room decorator tool will be launched at the same time, and this harnesses 3D technology. It’s a tool that will also prove useful for sales people visiting customers at home to do flooring quotes, says Gallardo. F

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Opportunities|New businesses

BUDDING BUSINESSES These four businesses are all new to the franchising world, and are keen to expand with a team of enthusiastic, passionate franchisees. By Danielle Bowling

s a potential franchisee, one of the first steps of your due diligence process is to determine whether you’d like to invest in a tried and tested brand, or be part of a new and exciting emerging business. The latter allows you to see, and be part of, a business’s growth from day dot. It may also allow you to work more closely and in a more hands-on role than if you had invested in a franchise that already has an established team supporting it. Here, we profile four businesses new to the franchising world.

Games2u

WHAT IS GAMES2U ALL ABOUT? Our mobile game theatre, laser tag, human hamster balls and T-shirt cannon provide entertainment for birthdays, church groups, fundraisers, corporate events and more. All the customer has to do is sit back, relax, and let us entertain the guests. Games2u is perfect for birthday parties for children of all ages, corporate events, presentation days, school activities and any party requiring entertainment. WHEN WAS IT ESTABLISHED? Games2u was established March 2011. HOW MANY FRANCHISES DO YOU HAVE? Games2u is still in its infancy. We launched our franchise model earlier this year, and while we only have the one franchisee, we are in negotiations with several people. HOW MANY FRANCHISEES WOULD YOU LIKE TO HAVE IN 12 MONTHS’ TIME? I would like to have a foundation of three 78| FRANCHISING Sep/oCt 2012

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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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WHAT TRAINING OR ASSISTANCE IS PROVIDED BY THE FRANCHISOR? Games2u offers four full days of action packed party training. The new franchisees are trained in everything from playing Call of Duty, to using the latest MYOB accounting system. They get tossed in the hamster ball, play laser tag and shoot the T-shirt cannon while learning our simple but fun business systems. Games2u takes the new franchisees on events prior to handing over their vehicle and games, and we spend the first weekend with them. Games2u franchisees need to communicate with all ages

like to have fun when they go to work. That is the most important ingredient. Skills are not that important. Franchisees need to WHAT ARE YOU LOOKING be able to communicate with FOR IN NEW FRANCHISEES? AD_ F RE COJ AN_ 1 2 . p d f Pa ge 1 1 / 1 2 / 1 1 , 4 : 2 6 PM everyone, from small children to WHAT SKILLS DO THEY NEED? grandparents. We are looking for people who franchises in a few states in the next 12 months.

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HOW MUCH DOES IT COST TO BE A GAMES2U FRANCHISEE? Games2u has two models available: the Game Theatre Model which is a 6.5 metre fullyenclosed mobile theatre and the Street Party Model which is a long wheel base Mercedes sprinter. A franchise costs between

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$100,000 and $150,000 depending on the model, with a seven percent royalty. WHAT WILL A TYPICAL DAY INVOLVE FOR A GAMES2U FRANCHISEE? IS IT A FULL TIME JOB? Yes we believe there is enough for full time work, although Games2u is predominantly weekend work, with corporate events through the week for schools and banks etc.

Anything Baby DESCRIBE THE ANYTHING BABY BUSINESS MODEL Anything Baby is a baby equipment hire company currently based in Melbourne that offers short to long term rental on commonly-needed baby equipment for home or travel needs. We offer a range of equipment including capsules and travel systems, car

seats and booster seats, bassinets to wooden cots, feeding, bathing, changing and soothing aids for babies as well as a range of safety equipment and toys. Our service provides professional car seat installation, delivery and pick up of equipment and advice for baby car travel needs. Our customer base is extensive and covers the mother with the newborn baby taking a capsule for six months to the grandparents and friends with young children coming to stay that may only need a short term, temporary arrangement, through to corporate bookings for long term relocating professionals and their families.

in Canterbury, Melbourne and we will hopefully sign another territory in Melbourne in the next couple of months. HOW MANY FRANCHISEES WOULD YOU LIKE TO HAVE IN 12 MONTHS’ TIME? In 12 months’ time we would like to have five territories onboard, covering at least two states. >> continues on page 82

WHEN WAS IT ESTABLISHED? Anything Baby was established in April 2009 and sold its first franchise in April 2012. HOW MANY FRANCHISES DO YOU HAVE? Currently we have one franchisee

www.FRANCHISe.Net.Au

Equipment hire at Anything Baby includes wooden cots

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WHAT ARE YOU LOOKING FOR IN NEW FRANCHISEES? WHAT SKILLS DO THEY NEED? Ideally our franchisees are stay at home mums, providing a supplementary income to the family’s main income. Ideally they would have great interpersonal skills, be energetic and professional and have a strong commitment to what they are doing. We require our franchisees to be able to work within a system and be part of a team. They would have a supportive partner or family that is able to assist them as required in running their business, as deliveries and pick-ups are sometimes out

Anything Baby Head Office through the corporate site. WHAT WILL A TYPICAL DAY INVOLVE FOR AN ANYTHING BABY FRANCHISEE? IS IT A FULL TIME JOB? Most franchisees are going to be stay at home mums or part time working mums wanting that extra income without having to sacrifice time with the family and children. Generally franchisees would manage their day around their family and children’s requirements. During the busy periods, school holidays and extended breaks they may work

Ideally our franchisees are stay at home mums, providing a supplementary income to the family’s main income of hours when the children are home or in bed and they would need that support in managing the home as well as their business. WHAT TRAINING OR ASSISTANCE IS PROVIDED BY THE FRANCHISOR? We provide assistance with set up and training of the software program. All franchisees have to complete the ACRI car restraint training course and annually update their membership. We provide full support and training with regard to products and provide support and feedback on installations once they commence. All franchisees are issued with a comprehensive operations manual that details all aspects of their business, franchising regulations and restrictions to practise. We have a marketing program that is run externally as well as ongoing software support should they require additional support or training. HOW MUCH DOES IT COST TO BE AN ANYTHING BABY FRANCHISEE? Our franchise fee is $20,000 and then the franchisee will purchase the stock and software to run their business. A start-up package including software, stationery, products and training is around $15,000 though this can vary depending on their own software capabilities and territory needs in regards to stock. We charge a set ongoing royalty; it is a set figure as opposed to a percentage of sales. Marketing is done at a local level by franchisees depending on their identified customer base as well as by 82| FRANCHISING Sep/oCt 2012

longer hours and be required to be available more, though generally we would expect our franchisees to work between two and four hours a day including administration, marketing, bookings, pick up and deliveries and then cleaning and maintenance of their equipment.

Social Media Business Boosters TELL US ABOUT SOCIAL MEDIA BUSINESS BOOSTERS Our franchisees provide professional social media marketing services from their own home to all kinds of businesses, organisations and individuals. With Social Media Business Boosters you can manage social media marketing for others and build your own highly profitable business with a residual income. Most businesses need a social media presence and this franchise network takes away the hassle of doing social media, and most importantly delivers results. We’ve created interest in all states across Australia and in overseas markets. www.FRANCHISe.Net.Au

WHEN WAS IT ESTABLISHED? Max Collins, the owner and founder of Social Media Business Boosters, recognised a gap in the market in early 2011. Max and his team developed the Social Media Business Boosters franchise model to be the first of its kind when it launched in October 2011. HOW MANY FRANCHISES DO YOU HAVE? The Social Media Business Boosters network of 45 franchisees is spread across all states of Australia, New Zealand, Papua New Guinea and is soon to hit the Americas. It’s an exciting time for our business as we grow and develop in our service offerings and within our franchise network. HOW MANY FRANCHISEES WOULD YOU LIKE TO HAVE IN 12 MONTHS’ TIME? For the Australian franchise network we have a goal of 125 franchises in the network in 12 months. Including overseas countries the goal is 200 franchises in the network by mid-2013. WHAT ARE YOU LOOKING FOR IN NEW FRANCHISEES? WHAT SKILLS DO THEY NEED? Our new franchisees come from a variety of backgrounds. As this is a marketing service-based franchise it is advantageous to have a marketing or small business background, however this is by no means essential. The detailed training provided by Social

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We believe that our success depends on your success. You will be provided with everything you will need to start and operate a successful business.

Independence

Flexibility Satisfaction

Results

Respect

Great Income

Crocâ&#x20AC;&#x2122;s Playcentres are the largest indoor playcentres in Australia, with the latest play equipment to delight the children who visit our centres. We add a huge seating area for parents and friends with coffee, light meals, cakes and drinks available.

www.crocsplaycentre.com.au Enquire Now!

To learn more about the exciting opportunity that Crocâ&#x20AC;&#x2122;s Playcentre can offer you, please contact the team at The Franchise Shop on 1300 159 557 or visit www.thefranchiseshop.com.au

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Media Business Boosters covers both the technical and marketing aspects of running the business and equips you with the skills to be an authoritative voice for your clients on any social customer-engagement tool. WHAT TRAINING OR ASSISTANCE IS PROVIDED BY THE FRANCHISOR? Our franchisees undertake an intensive four-day induction that introduces key concepts of social media marketing and social media networking. Franchisees undergo rolling assessments, role play and social media strategy sessions. Induction training is coupled with online training available to our franchisees via the internet 24/7. Training videos and resources are updated consistently as new industry developments occur. HOW MUCH DOES IT COST TO BE A SOCIAL MEDIA BUSINESS BOOSTERS FRANCHISEE? The investment for a Social Media Business Boosters franchise is $40,000. As a home-based business there are very few overheads required to get your franchise up and running and you can speak to us about internal financing. WHAT WILL A TYPICAL DAY INVOLVE FOR A SOCIAL MEDIA BUSINESS BOOSTERS FRANCHISEE? IS IT A FULL TIME JOB? Our most successful franchisees approach the development of their franchise as a full-time job in order to capitalise on the current need for social media. As a work from home business that requires few staff, there is a lot of flexibility as to when the work is done and how the franchisee structures their work-life balance. A typical day might involve networking and speaking with prospects about the benefits of social media marketing. Franchisees spend time designing social media marketing strategies for prospects and, of course, executing daily work on social media platforms like Twitter and Facebook for current clients. Our franchisees manage daily conversations and dialogue as well as being involved with marketing campaigns, audience building, competitions, customer service, and pulling together reports to demonstrate audience growth and engagement. 84| FRANCHISING Sep/oCt 2012

Jim’s Security

DESCRIBE JIM’S SECURITY Jim’s Security is the 34th division in the franchise group which includes mowing, building maintenance, test and tag, and cleaning. The establishment of Jim’s Security is the result of an already successful security company wishing to expand into the lucrative home security/small business electronic security market. The Jim’s brand is one of the most recognised in the home services market and Jim’s Security will gain an edge over the one man bands that typify the operators in that market. With over 20 years industry experience and the strength of the Jim’s Group behind us, Jim’s Security will become the best known name in home and small business security. WHEN WAS IT ESTABLISHED? July 2012. HOW MANY FRANCHISES DO YOU HAVE? Currently we are owner-operated and concentrating on establishing the brand in NSW. As the inquiry rate increases so too will the need for more Jim’s Security operators. We are already experiencing significant sales in major country regions and that growth will drive the franchisee sales. HOW MANY FRANCHISEES WOULD YOU LIKE TO HAVE IN 12 MONTHS’ TIME? We’d like to establish 10 regions across NSW, four in Sydney and the rest in major regional areas. The focus for the next 12 months is about establishing

NSW and the ACT and we will then work toward rolling out the other states in Australia. WHAT ARE YOU LOOKING FOR IN NEW FRANCHISEES? WHAT SKILLS DO THEY NEED? Typically, new franchisees will come from within the industry due to stringent police licensing requirements. They will either be employees of security companies looking to become independent or they will be existing operators looking to get an edge on their competition by rebranding as Jim’s Security. WHAT TRAINING OR ASSISTANCE IS PROVIDED BY THE FRANCHISOR? Jim’s Group will provide extensive sales and product training plus technical support and training by major product distributors for all franchisees and their staff. HOW MUCH DOES IT COST TO BE A JIM’S SECURITY FRANCHISEE? Franchises are currently available from $22,000. WHAT WILL A TYPICAL DAY INVOLVE FOR A JIM’S SECURITY FRANCHISEE? IS IT A FULL TIME JOB? With the state-wide marketing plans and the natural attraction of clients to the Jim’s brand, it is expected that all franchisees will be full time operators. Some potential franchisees will be existing operators seeking to rebrand for all the same reasons that we have: that is a strong brand to give you an edge over the opposition, as well as the marketing and support that comes from a great franchise system. F

Jim’s Security is the 34th division in the franchise group www.FRANCHISe.Net.Au

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A LOT CAN HAPPEN IN

25 YEARS.... Here, representatives from some of Australia’s iconic franchise brands reflect on how the industry has evolved and grown over the past quarter century

Greg Hodson, partner, PWC Twenty-five years ago – for some us that only seems like yesterday but for many of you it is, no doubt, a lifetime ago. What did franchising look like back in the mid-80s? Well, it was basically unregulated, other than for the petrol companies. There was no Franchising Code of Conduct; this didn’t come in until 1998. Royalties were generally around three percent of turnover compared with the trend today of between six and seven percent. While it wasn’t regulated,

franchising had started to become a very popular way to do business. The big US food brands had been here franchising since the 1960s and 70s and back in the mid-1980s it is estimated that there were probably around 200 to 300 franchise systems. Of course, today that number has grown to more than 1,000. The 1980s saw the boom in fast food franchising with many of the pizza chains kicking off and the likes of Hungry Jacks expanding

into Victoria and NSW, and Subway entering the Australian market. It also saw the start of franchising in the services sector with Kwik Kopy, VIP Home Services and Jim’s getting underway. The 1990s were boom times for franchising. The recession of the early 1990s resulted in many retrenched workers buying franchises and franchisors started thinking that the franchise model was bulletproof. In the good times there were increasing royalties

1995... Franchisees of the year,

1995... Franchisor winners

Reg and Mary Waite of Kwik Kopy. Mary said “As you get older you realise the importance of hard work which is what we put in from our first day”

1987 86| | FRANCHISING SEP/OCT 2012

because franchisees were trading well and in the bad times people would want to buy themselves a job. The 1990s also saw franchising take off in new areas. The financial services sector jumped onboard and many of the mortgage brokers and home lending franchises were created. The banks started lending to franchisees back in the 1990s as well. We also saw the start of the telecommunications industry franchising, the growth of coffee via Gloria Jean’s Coffees and Starbucks, as well as significant growth

were Snap Printing with two awards including Peak of Franchising Excellence, Abacus Bookkeeping, Michel’s Patisserie and Autobarn

1995 WWW.FRANCHISE.NET.AU

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from some of the iconic brands in franchising such as Bakers Delight, Fastway Couriers and Brumby’s. The last decade has seen franchising continue to be embraced across all sorts of industries as a distribution model, with many businesses electing to use a franchise model for some of their non-core offerings such as servicing and repairs. It is used in everything from the coffee we buy in the morning, to the car repair business we dropped our car into, to the lunch spot we frequent, the phone retailer we use, the supermarket where we buy our products to cook the evening meal, the gym we go to on the way home from work and even the TV show we watch each night. The most significant impact on business in general, including franchising, over the last decade has also been the rapid advancements in technology. This has helped franchisees be better connected with their customers, each other and their franchisor. It has also emphasised the need for franchisees to be at the top of their game as customers can shop around and be better informed about products and services that franchisees offer. Over the past 25 years, the

franchising sector has become far more sophisticated. Franchisors are better at understanding the importance of the relationship with franchisees. They are more focused on what motivates and drives franchisees and the level of support they need as they go through the various stages of being a franchisee. All of this has lead to businesses that use the franchising model achieving impressive double digit growth rates right through the Global Financial Crisis, according to the PricewaterhouseCoopers Australia annual Franchise Sector Indicator surveys, hence supporting the theory that those looking at getting into business can have more confidence in doing so through a franchise.

Vera Randall, founder, Knitwits I was in North America in 1970 when I set my sights on sharing a fun easy way to sew with Australian women. It was sobering, though, to return home and find that business format franchising was unknown in

Brumby’s started franchising in 1983 as the Old Style Bread Centre. We supplied applicants with detailed financial projections – this was well before the introduction of the Franchising Code of Conduct which totally changed the way franchisors can present the offer, particularly in relation to financials. Michael Sherlock, former franchisee and managing director of Brumby’s Bakeries Australia except in the fast food area. My excitement about franchising was reignited when I met Howard Bellin of International Franchising – we worked together on a feasibility study, financial modelling and legals – and sold the first of the hundreds of Knitwit franchises that were to follow in seven countries. By the end of the 1970s franchising was on the move in Australia and Knitwit was being held up as a successful franchise model. Even so, there was no feeling of being part of an industry or peer group. In 1983 Mike Padden (now Franchise Systems Group), Chris Levy of Pizza Hut and Bryce Bell (executive director) worked tirelessly to form the Franchisors

Association of Australia and franchisors finally had a support network. Homegrown franchises at last felt they were being taken seriously by the business community, the media and government. Knitwit, trading as Knit Fabric Centres, held membership 001 of the Association. The 17 founding members laid the foundation upon which both small and large franchises have blossomed to become a powerful force within Australia’s business community.

John O’Brien, founder, Poolwerx In 1982 I was working for Cadbury Schweppes and my boss came back from the US inspired by franchising. We started franchising vending operations and

2000... Hungry Jacks’s

1999... The Franchising

franchisee Jack Cowin had master rights to Burger King in Australia but claimed the US company hindered his business growth. Cowin won “a victory for the little guy” in court

Australia survey showed 747 business format franchisors and 49,400 franchise units trading, with a total turnover of $76.5 bn and 553,200 people employed

1999

2000 WWW.FRANCHISE.NET.AU

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home delivery of soft drinks and I was promoted to national franchise manager. I had no idea what it was… I had a business card and had to explain my role, there was virtually no network, no consultants, only a few lawyers, and no association. It was hard to sell, hard to explain that it was profiting the franchisee. Today potential franchisees understand about branding, marketing and buying power, that there’s a system to follow, PoS, and a supply network. They understand they have to probably pay fees to get in. Franchising took off incredibly quickly in the late 1980s because of the fast food sector. People felt comfortable investing in larger global US brands but the growth of Australian services about 1990s kicked in with Jim’s and VIP Home Services. These guys did a good job of Australianisation from 1990 to 95, enthusiasm for domestic services blossomed. At the same time it was savvy entrepreneurs looking at the phenomenon and how big chains like McDonald’s were growing, and saying, ‘how can I harness people’s energy and money in a far more affordable way to set up?’ It was certainly very, very

The ChequeEXchange was featured in Franchising and attracted Alan Bond to buy the UK master franchise rights. I have a photo of Bond with that issue in his hand. It appeared in several newspapers around Australia. Peter Trevilyan, founding publisher, Franchising different. Franchisees back then followed the system, came to you looking for complete guidance and followed it to a T.

Lenard Poulter, founder, Lenard’s Back in 1987 we had about 30 top franchisors, and mostly they were fair dinkum. But the industry was trying to break the stigma of what it was thought of in those days - bad US franchisors made the news, lawyers and banks didn’t understand franchising. I think through continual communication [Franchising magazine was, and is, one way] and education, using associations and conferences, the industry started booming. People were passionate about learning. Getting government to embrace franchising as a model for small

business in Australia was an important step. I came out of the competitive meat industry and found in franchising everyone was working together, talking about their problems, then trying to improve the execution of the product. Of course it’s a bit naïve to think the whole franchise network will work as one. It doesn’t happen, there will always be a group that’s not happy. Both parties have to work at it, it’s like a marriage. One of the big points of difference between then and now is that new franchisors were fresh and exciting, now finding a new concept that works is hard. There are some entrepreneurial people with new products but it’s harder to get people involved. And you have to look at how long a brand can survive in its market.

I’d grown up in the printing industry (WC Penfolds) and I understood business was most successful when the owner dealt with customers. Every time we got a really good operator, he’d see how much he was making for the corporation and go off on his own. I went looking for a better way. It was true then and now, that in small business about 87 percent fail within five years. But not in franchising. Kwik Kopy started in 1981 in Australia. I had bought the licence from the US owners and we spent from December 1981 to February 1982 meeting government requirements. I’d keep the government out of it all – back then a contract was 28 pages, now it’s 100 pages, because of government intervention. There always were

franchise units showed growth rate of 14% and one third of systems franchised overseas. Special report on the franchise sector: UK, China, India, Indonesia, Malaysia, Phillipines

asked where are all the women in franchising?; considered the pros and cons of paid maternity leave, and quizzed readers about working on or in their business

88| | FRANCHISING SEP/OCT 2012

Stephen Penfold, former franchisor, Kwik Kopy

2004... Business format

2003... Franchising magazine

2001

A lot of franchisees used to get into a new concept and then sell the business at a high. I wonder if franchisees are wanting to do that now? Franchising is something strong and established and that’s good, especially with the economy right now. But I’d like to see something new and exciting.

2003

2004 WWW.FRANCHISE.NET.AU

2006

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A Crowning Achievement! Twenty-five years for Franchising Magazine, 20 years for Jani-King Australia in 2012. Whether it’s a leading, influential magazine or an equally powerful franchisor, nothing succeeds like success.

Today, there are more than 850 active Jani-King Franchisees across Australia and New Zealand, and more are joining every day. It’s a simple desire to clean up with “The King of Clean,” to succeed as an independent business owner in the lucrative world of commercial cleaning, and to be a part of the world’s largest commercial cleaning franchise.

Visit janiking.com.au for an online franchise presentation today. And if the crown fits, wear it!

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franchisors who were selfserving, and occasionally a rogue franchisor. In May 1982 the first outlet opened. In the early days Kwik Kopy looked for young intelligent franchisees, sometimes people who were over their ears in debt as a way to get in. These days, the market is more difficult, bankers don’t support franchising. So we’re more inclined to get business people who don’t want to take a risk. My advice to anyone looking to invest in a franchise today? Join a well run profitable system that will continue to grow, a system that looks to the profits of a franchisee.

Jim Penman, founder, Jim’s Group

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Sep/Oct 2011 VOL.24/No.5

May/Jun 2012 VOL.25/No.3

Your essential guide to buying a franchise

The franchise v license question

Disclosure and franchising laws have changed significantly, and mostly for the better in creating a fairer system for franchisees. I can only speak from a Domino’s perspective, but definitely I think franchisees are better off than 25 years ago. Franchisees get significantly better value from their franchisor today giving them more competitive advantages for the investment. Transparency also helps the franchisee. In the early days the small number of franchisees we had, had a far greater input into the business. Now with a larger group, an individual has a say, but not to the same level. Our partnership is more defined. We also have a significant number of multi-unit franchisees that are more sophisticated with their own structures today. The business feels more grown up, stronger and professional. In saying that there is a small loss of the family feel but this has been replaced with a team culture. We will open our 1,000th store in the next 12 to 15 months, and putting more real time information (live), that is simple to understand will be transformational. F

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poorly can be terminated or even voted out. Measures of franchisee satisfaction show a steady rise in recent years, and they have to. It’s the only way to stay in business and keep growing. The same applies to customer service. Even six years ago our complaint rate was five percent in relation to incoming calls. Last year it was 1.5 percent. But some divisions are on one quarter of one per cent, and that’s where we need to head. Better training, complaints monitoring, pro-active client surveys, warning letters, retraining days, breaches and even terminations, everything we do must aim for better and better service. In the past year we booked more than 450,000 new leads, of which 84,000 were unserviced. So business is good, but it’s not as easy as it used to be!

successful franchisees. People often say that service franchising has grown because more and more people want to outsource domestic services. This may be true, but the strength of the competition is such that it’s harder and harder to find clients. Thirty years ago, when I started mowing lawns full time, a few hundred leaflets were enough to get started. These days they would sink without a trace. To be successful in 2012, you simply need to do better. Our first franchisees had no formal training, and they phoned when they needed help. These days we have induction training courses, monitored constantly for impact and success. Franchisees receive regular coaching calls from their franchisors, and each year rate them in confidential services. Franchisors that do

FRANCHISING

Jim’s Group has been in franchising for just over 23 years, and in this time the industry has changed a great deal. Back in 1989 a service franchise was a new and fresh idea. At our first franchising expo prospects crowded around my booth two deep and I barely stopped talking for three days. These days, most of our prospects come because of a good experience as clients or referred by

The association morphed over the years from being the franchisors’ association to realising that they needed to embrace franchisees and other key players in the franchising community. Peter Trevilyan, founding publisher, Franchising

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2012... Study reveals

optimistic, hard working franchisees most likely to succeed. Franchisees win and lose in court; food retail acquisitions continue and new brands keep on coming

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THEN

A picture really is worth a thousand words ...

&NOW These photographs provide a great narrative of how much can change in 25 years. Companies rebrand with fresh, new looks, store fit-outs move with the times and the goods or services offered expand to suit

consumers' constantly evolving tastes. Brands including Bakers Delight, the Jim's Group, Donut King and Forty Winks have come a long way over the years, and these pictures help to tell their tale.

Bakers Delight branding over the years

Jim Penman, founder of the Jimâ&#x20AC;&#x2122;s Grou p, back in the day

We know this one dates back a little further than 25 years back to 1879 in fact - but we couldnâ&#x20AC;&#x2122;t help ourselves! 92| FRANCHISING SEP/OCT 2012

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Today’s Forty Winks stores ar e mostly locate in Homemaker d centres

Brumby’s stores There are now over 300 New Zealand and lia stra Au throughout

A fresh, modern look at today’s Donu t King stores

t restaurants! We all loved the Pizza Hu WWW.FRANCHISE.NET.AU

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going

Some of australia’s home-grown brands are performing on a global stage. So what does it take to make an overseas presence a success?

global A Rod Young, DC Strategy, has represented the Australian franchising sector around the world. Here he shares his views on the keys to building a brand that can stand tall overseas.

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ustralia has much goodwill in the UK as an army of Aussies who have made the obligatory trip to London before heading to Europe have generally created a good impression as hard workers. There’s goodwill in the US too, where the Americans really appreciate Australia for supporting

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its international policies. However, the reality is we have no real reputation as a nation of great business brands and there is little evidence of Australian franchise brands succeeding in any real numbers overseas. We need to understand that Australia represents just 1.2 percent of the world’s economy and that percentage is shrinking as the economies of China, Russia, India and Brazil grow the size of the global pie. In short we are not that

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relevant and our biggest brands here are simply big fish in a small pond. Australian franchising needs to think in billions not millions before it heads overseas. So how do we define success in an overseas market? If it is the number of units, most Australian brands have only a small handful of outlets in foreign markets. The exceptional standout is Cartridge World which has 1300 of its 1500 stores overseas but there are very few others who have more stores overseas than in the Australian market. In examining the best performing networks it seems the common element is the commitment of personnel and investment over an extended period of time and the willingness to modify the menu or product or service offering to meet local tastes and expectations and the focus on several markets to prove the business model can work. A major challenge is appreciating that the business evolved in the unique Australian market and carved out a niche amongst competitors, satisfying local needs, wants and tastes. So

what is done in Australia will need to be modified (sometimes substantially) to meet both local competition and local tastes in each new market entered and marrying an understanding of what has brought Australian achievement with what is needed for success in a foreign market. It is worthwhile remembering that the vast majority of franchise systems in any country are home grown, not international. In Australia, over 90 percent of all franchises were established locally and most countries have similar statistics. The unfortunate truth is that over 80 percent of all international brands, regardless of country of origin are not making any real

The common element is the commitment of personnel and investment over an extended period of time and the willingness to modify the menu or product or service offering to meet local tastes and expectations and the focus on several markets to prove the business model can work

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money from their overseas operations. In more than 95 percent of international brands, their home market still produces the vast majority of their profit. Scale brings about more development and innovation and there is no doubt that McDonald’s and KFC franchisees enjoy the custom of international

Franchisees should expect the franchisor to maintain the momentum in the local market without compromising the local brand travellers seeking a familiar brand. However this is not something that comes quickly and takes many years to develop. I think the real benefit for franchisees AD_ F RF CBSEP_ 1 2 . p d f joining a network with international presence is the excitement of being part

GLORIA JEAN’S COFFEES 1979 1995 1996 1997 2004 2006 2009 2011

Gloria Jean Kvetko and husband Ed opened first coffee shop in the US Nabi Saleh and Peter Irvine bought Gloria Jean’s Coffees brand First GJC opened in Sydney Franchising introduced Purchased international rights outside US and Puerto Rico International Franchisor of the Year, FLA Singapore Affiliate company bought GJC’s US business; FCA International Franchisor of the Year Launched Coffee House of the Future

Gloria Jean’s Coffees is an Australian-owned and operated specialist coffee house franchise. Since its inception in 1995, it has opened more than 900 coffee houses in 36 different countries. The global franchise business attributes its success to the following factors: a solid infrastructure to support international expansion, brand consistency across each market, product innovation, a continued focus on coffee as the hero product and an ongoing commitment to the local community across each region. Gloria Jean’s Coffees executive chairman, Nabi Saleh, explains, “Over the last 17 years the business has grown steadily, focusing primarily on Australia and then gradually penetrating the overseas markets. During that time both the brand and business has evolved considerably, however, the one thing that has remained the Pa ge 1 1 4 / 0 8 / 1 2 , 1 0 : 1 8 AM same is our uncompromising approach to good coffee.”

Meet the team

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of a growing brand and the feeling of being associated with its success, especially when attending international conventions with franchisees from across the globe. Of course the effect can also be negative if the management turns their back on the local franchisees, and concentrates time and money on international development but neglects the local network. Franchisees should expect the franchisor to maintain the momentum in the local market without

CAFe2u 2000 Cafe2U launched 2004 Cafe2U purchased by current owners 2005 Franchise model launched 2006 Rated in top seven franchise systems by the Financial Review ‘Smart Investor’ 2008 Global franchises top 100 franchises 2009 Listed in BRW Fastest 100 franchise systems 2009 Best Value Franchise System in AFR’s Smart Investor Magazine 2010 100th Australian franchisee 2011 US launch 2012 Launches in Germany and New Zealand Derek Black, managing director of Cafe2U says “The mobile coffee concept is relatively unknown in most overseas countries, but when introduced is embraced by customers. Going to the customers, rather than waiting for them to come to you is an attractive business model in today’s dynamic retailing environment. Free from many of the traditional cost barriers, mobile business is becoming an attractive option for small entrepreneurs worldwide. “In Australia, Cafe2U is still growing, with opportunities in all states. South Africa will be the next new country with master franchise negotiations nearing completion.”

98| FRANCHISING Sep/oCt 2012

NANotek CAR CleANING 2004 Began business as ecowash mobile 2006 Launched in Saudi Arabia and France 2007 Launched in US 2008 Launched in Greece, received FCA Export Award 2009 Launched in Romania, ranked third in BRW Fast Franchise list 2010 Rebrand to Nanotek 2011 Launched in Russia, Belgium and Luxembourg, and flagship fixed site in Saudi Arabia 2012 New Zealand launch, flagship fixed site in Greece, ranked 30 in BRW Fast Franchises list Founder Jim Cornish says “In going global we have set up a regional approach from our offices in Saudi Arabia, Athens and Paris. The US is showing signs of recovery and we have plans to launch the Nanotek brand there with a fixed site focus. “But locally Australia and New Zealand remain a priority – this is our home, our benchmark and laboratory for the world, and we still have a lot of room for expansion – we’re not even half way to where we know the Australian business can be.” “I believe the key to Nanotek’s global expansion has been our exclusive nanotechnology and our focus on systems. In combination, these two elements have made the business model very simple and easy to duplicate – not only at a franchise level but at a master franchise level. “There is a global trend towards environmental sustainability and lifestyle services – Nanotek hits all these buttons. Our nanotechnology (being waterless) is not only eco-friendly, it also enables us to deliver our service to the customer anywhere. Combine this with the quality of the Nanotek service (and credibility of over 15 manufacturers as clients in Australia), add in an increasingly unified global car culture and you have a business model which, with only minor localisation, has global applicability. “The advantages of being an Australian system are that we have a sparse population spread over a massive area which is a logistical

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nightmare; a very solid regulatory framework for franchising which provides an excellent foundation for a global approach to franchising; and an extremely competitive franchise sector with more franchise systems per capita than any other nation of earth. “By establishing and succeeding in Australia by default you build into your franchise model a strength which will drive growth in virtually any market. “The only disadvantage of being an Aussie brand (which is no different for any brand in the world) is that you will hear this phrase - ‘well it might work in Australia, but that doesn’t mean it will work here’. “Whilst we initially fought passionately against this statement, it is true that every system needs to be sensitive to the intricacies of each individual market – this is what makes the difference between selling into a market, and growing within the market.”

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compromising the local brand or its domestic growth. The better franchisees should also be offered the opportunity to be part of that growth by moving to new markets to establish the business in new markets if that is their desire and capability. As the network grows, the sharing of new learning should also be conveyed to local franchisees. There are a host of Aussie brands who have stepped outside the familiar territory of the domestic market and are striving for overseas success. These pages show a handful of businesses who are forging a path for their brands across the globe. F

Three rules for going global What to look for:

1. Ensure the business is well on the way to having developed the local market as this will make the highest return on every dollar that is turned over. Experience has shown that regardless of the business model used to expand overseas, the business is more profitable in the Australian market so franchisors should ensure they are fully exploiting it. 2. Ensure the franchise has a senior executive who spends all his or her time on the international development project. Most businesses who go international simply give another job to a fully utilised executive and expect a herculean task to be performed part time on top of a local job. It never works. 3. Check there is commitment at the top of the organisation to ensure there is a realistic budget and a profitable base to draw on for the first three years. Even an initial master franchise fee or two will not plug the cash gap needed to develop, market, enter and then make profitable an international market. I estimate franchisors should allocate at least $500,000 per annum for the first three years and have a three year commitment to provide at least this funding before expecting any return. Rod Young

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CARtRIdGe woRld 1988 Founded in Adelaide 1992 Begins franchising 1997 First Cartridge World franchise sold. The second, third and fourth followed in rapid succession 2001 The UK’s first Cartridge World franchise set up in Harrogate 2003 US Cartridge World franchise is established in Orlando 2005 Opening of the 1000th store worldwide in Atlanta, Georgia 2007 Wolseley Private Equity purchases Cartridge World 2012 Cartridge World is operating over 1700 stores in 60 countries Cartridge World operates in the fast-paced information technology environment and as the business world has become more dependent on computers and printers, refilling printer cartridges has become one of the fastest growing industries globally. In servicing this market, Cartridge World has provided an environmentally sound and economical solution to the growing costs of replacing printer cartridges. A recycled printer cartridge that is recharged with toner can be resold for approximately half the price of a new one, providing substantial saving with equal function. Recharging the cartridge supports local communities by reducing waste and protecting the environment. Cartridge World claims world leadership in inkjet and cartridge refilling and is continuing its fast-paced expansion. The business operates out of three regional offices: Adelaide in Australia; Harrogate in the UK; and Chicago in the US. India has been a fast growing region for the brand, with the first store opening just over four years ago and a current portfolio of more than 90 outlets.

keeN to CleAN 2003 Began as Super Cheap Cleaning Solutions 2008 Franchised as Keen to Clean Group 2011 Started operating in India. Became ISO 9001:2008 Certified. Runner up, FCA Excellence in International Franchising and finalist, FCA Emerging Franchisor 2012 Ranked fifth in BRW Fast Franchise list Brijesh Purohit, managing director, says “Entering the international arena you are immediately confronted by two major hurdles: differing business obligations and perhaps more profoundly, different cultural values. If you are overly rigid or too loose in your approach you stand to lose control of your operation very quickly; your system has to be able to adapt. “You can’t forget that while you are off expanding your brand it is the team you leave behind that will be the ones operating your business. The more critical you are to the core function of the company, the more it will be hurt by your absence. You need a system and a team that can still survive without you and more importantly grow without your need to be involved in every facet of operation. “By having a defined but flexible franchise system and a reliable team running your home operation, international expansion proceeds just like any other major franchise expansion.”

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They cAme bUT did They

conqUer? The US has been a powerful influence on the Australian franchise sector but there is more to the story of how Australia became a leading franchising nation than simply replicating brands and systems, as Andrew Terry suggests

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hose who compile lists may one day catalogue the US exports with the greatest impact on host countries. I would expect that franchising will be on that list. Australia, in common with every other country with a thriving domestic franchise sector, owes so much to the colonising initiatives of the leading US franchised fast food systems – KFC, McDonald’s and Pizza Hut – who introduced to the local market not only their distinctive fast food products but also, and more importantly, a new and exciting business expansion strategy. Franchising has revolutionised the www.FRANCHISe.Net.Au

distribution of most industry sectors in most countries and for this the colonising US fast food systems are entitled to much of the credit. Without the expansion of the US systems to Australia our dynamic franchise sector would be at a much earlier evolutionary stage. But fortunately the result of the US colonisation has not been cultural imperialism. Today about 90 percent of Australia’s 1000 plus franchise systems are Australian developed and owned and that is a beautiful statistic. The US “invasion” provided the catalyst for the development of homegrown systems by local entrepreneurs

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who were quick to see the advantages of the franchising strategy and, as a result, a distinctive Australian-centric franchising culture has emerged. But there are few barriers to foreign entrepreneurs entering Australia and the Australian franchising gene pool is constantly replenished by the entry of foreign systems. As a result our franchise sector is dynamic and exciting as well as being culturally rich and diverse. The US fast food systems which provided the platform on which the success of the Australian franchise sector has been built are, of

Pizza Hut Pizza Hut is part of Yum! Brands Inc, the world’s largest restaurant company in terms of system units with more than 37,000 restaurants in over 120 countries and territories. The business is ranked 213 on the Fortune 500 List and includes KFC, Pizza Hut and Taco Bell. The first Australian Pizza Hut restaurant was opened in Belfield, Sydney in 1970. The chain has more than 30 years’ experience in franchising and has existing franchisees with more than 20 years’ tenure. Now there are more than 350 outlets throughout Australia and New Zealand, all of them franchised in Australia. Pizza Hut prides itself on providing innovative approaches to customer engagement and continues a long history of brand awareness with consistent marketing and advertising from the global brand. Franchisees also have access to a locally-based extensive franchise support structure. Andy Masood, head of development and supply chain at Pizza Hut, says “Pizza Hut

has a long association with Australian consumers and continues to provide great value and innovation in our menu offerings. As we move into a growth stage we continue to innovate on store design and construction in order to generate further cost savings and further reduce the cost of entry for our franchise partners. “We have exciting new store opportunities throughout Australia, one of the lowest cost structures in our category and an appetite for growth. “Pizza Hut’s point of difference continues to be our genuine transparent focus on ensuring our franchise economics in all aspects of the business strive to be the lowest cost producer (including cost of goods), lowest capital costs, lowest franchise fee and company direction to improve our franchisees’ return on investment.”

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Snap-on Launched into the Australian market more than 20 years ago, Snap-on Tools Australia is a mobile franchise operation, focusing on putting high quality tools into the hands of mechanics, engineers and technicians across the country. It is a wholly-owned subsidiary of US parent company Snap-on Inc, a developer of innovative and technologically advanced tools for more than 90 years and one of the largest non-food franchise companies in the world, selling its products and services through franchisee, company-direct, distributor and internet channels. Today Snap-on Inc is a $2.9 billion, S&P 500 company. Snap-on Australia provides automotive technicians with a high quality range of more than 19,000 products as well as services that make their working life more productive. Its fleet of 166 trucks are mobile stores stocked with more than $130,000 worth of inventory, delivered direct to the workplace. The business has established itself as a highly reputable name within the Australian franchising industry and has developed a comprehensive community engagement program, partnering with Street Machine to offer the annual Snap-on Apprentice of the Year competition, now in its fourth year. The growth of the Snap-on franchise network in Australia has been hindered over the last two years with the challenge for potential franchisees of obtaining business loans from the major banks; the solution has been the introduction of Snap-on Credit which means some of the start-up costs, including a new custom built Snap-on mobile store, can be financed through the franchisor. There are a number of loans that make up the program with terms and conditions specifically designed to integrate with the Snap-on business plan and cash flow model.

Timeline 1920 1950 1988 1993 1997 2001 2008 2011

Snap-on Inc is established Pioneered franchisee van channel Launches in Australia New Zealand brought in under Snap-on Tools Australia Starts aggressive growth through franchising Australia has 100 franchisees Celebrates 20 years in Australia Launches credit program to franchisees

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course, still prominent and successful systems in Australia. Although these systems had a firstmover advantage, their success transcends their early entry and they remain franchising icons. Overseas systems entering Australia today face significant challenges. Australia is, on any criteria, one of the world’s leading franchise sectors. We may not be large in global terms but we are perfectly formed. We have the world’s most rigorous regulatory regime, a franchising community which is well informed and well educated, and our BS detector is finely attuned to rogue franchising offerings. There may have been a time, but it is long passed, when the

Australia is, on any criteria, one of the world’s leading franchise sectors. We may not be large in global terms but we are perfectly formed cultural cringe dictated that if it was from overseas it must be pretty damn good. Our franchise biography records many overseas franchise systems which are very successful players in the Australian market. This is not simply because they are foreign – with different concepts and offerings – but because they offer value propositions not only for franchisees but for the public. The record also makes it clear that there is a long list of foreign franchise systems which have not been successful. Some have simply failed – sadly at a cost to local franchisees who had not done their due diligence and who simply assumed that overseas success would automatically translate

Luxottica Timeline

1908 Laubman & Pank opens 1932 OPSM opens in Sydney 1961 Luxottica established in Milan 1996 Luxottica Australia established 2001 Luxottica acquires Sunglass Hut 2003 Luxottica acquires OPSM Group which included Laubman & Pank 2010 OPSM launches Eye Hub store 2011 OPSM rolls out Digital Retinal Scan to all stores 2012 Launched charitable foundation OneSight, providing free eye wear and eye care

One company that has entered the Australian scene through acquisition is Luxottica, an Italian company which started manufacturing eyewear. It entered the Australian market in 1996 but only joined the retail scene in 2001 with the purchase of Sunglass Hut. That most consumers know the retail brands but not the overarching company doesn’t matter, insists Peter Baily, director of franchising and acquisitions. But the resources of the global brand provide undoubted benefits, he says. The franchise models are built on a platform of partnership and have differing levels of risk/ return and commercial complexity to suit the needs of the industry.

Franchise partners are able to leverage Luxottica’s position and resources, whilst running a profitable business and developing a saleable asset. “We’re driven by innovative strategy behind the business, and we’re doing better than we’ve done before. What matters to consumers is what happens when they’re in store. “It’s a fantastic global brand and manufacturer, offering high quality eye care and eye health. “The Eye Hub stores have the most advanced technology in the marketplace. That leads to eye wear.” The brand portfolio ranges from luxury and fashion to sport and lifestyle brands including Ray-Ban, Prada, Vogue, Oakley and Persol.

Home Instead Senior Care Martin Warner, director, says “We have succeeded in the Australian market through a combination of careful planning and a commitment to integrity. Primarily, our culture is service driven – we are looking to provide flexible tailored quality in home care service, and nothing else. “We have access to the vast resources of the Home

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Instead global network, which includes extensive research, and marketing support. “Following the establishment of a successful Australian business model in 2005, our planning has included the formation of a national corporate team, focused specifically on franchisee support, market analysis

and training development. “We don’t look for franchisees whose primary motivation is financial; in fact, if an inquiry comes in along those lines we are wary. Our experience shows us that the ideal franchisees are those who are looking to make a lifestyle change and have a compassionate outlook. We know that the business model will deliver

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the financial outcomes if these qualities are inherent. “We set out to Change the Face of Ageing in Australia – putting the needs of the client first, collaborating with key partners in important areas such as Alzheimer’s disease and arthritis. Now our input is sought in government policy development and leading industry forums.”

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into success in Australia. Others have redesigned their systems to adapt their menu or suite of offerings for Australian conditions and have successfully relaunched their brand. The moral of the story is not rocket science. Successful franchising leverages proven concepts and systems. Success in New York does not guarantee success in Sydney. Nor does success in Perth. Without franchisor outlets the initial franchisees of a geographically expanding system are the proving ground and they need to be aware of the risks. F Andrew Terry, Professor of Business Regulation at the University of Sydney Business School, is in the Franchise Council of Australia’s Hall of Fame, and a regular columnist in Franchising magazine

Kumon Over the past 10 years, Kumon Australia has become an increasingly popular education choice for parents looking to instil children with essential learning skills for life. Instructors guide students through problems that they can solve, given the skills they have built step-by-step as they advance through the programs. Each year, more families are turning to this unique method, developed in Japan in 1954. The Kumon method is currently delivered in over 47 countries and regions with now over 4.4 million students. Overall, there are 38,000 students studying at over 300 centres across Australia, a steady growth compared to five years ago. This also reveals a shift in parents looking to build foundations in learning earlier on in life - there is less emphasis on remedial learning and more importance

placed on proactive, advanced learning, with students starting at a younger age. Instructors develop their own skills through regular personal and professional development activities dedicated to maintaining a high standard of service. More and more education professionals are no w looking to start their careers with Kumon, with a chance to positively affect the lives of young people around the country, and in turn, contribute to the global community.

Fastway Couriers

as our franchise partners and franchise support team. (FCA Master Franchise of the 1983 Founded by Bill McGowan “This involves plenty of training, Year) Runner Up – Fastway 1984 Roll out across New Zealand and support and advice so we can deliver on Auckland – FANZ Business franchising management of depots being the friendly courier experts. Awards 1993 Australian arm launch “As a franchise, our goal is to delight 2011 Major international brand 1999 Fastway Global Ltd established, the customer at the door. We listen to rejuvenation project granting a national master our customers to understand their wants Richard Thame, managing director of franchise to individuals for an and needs. As a result, we’ve introduced Fastway Couriers Australia, says “The entire country a range of intelligent tools and freight secret to our success is, and always has 2000 Listed 14th in BRW top 100 fastest options which promote simplicity and been, our people. Part of this is ensuring growing private companies list AD_ F ROAKS E P _ 1 2 . p d f Pa ge 1 2 / 0 8 / 1 2 , 2 : 1 6 PM transparency for businesses of any size.” we attract the best people in the industry 2001 Franchise system of Australia

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LOOKING

FORWARD Research suggests that good times are ahead for the franchising industry. But which segments will be feeding this growth? Danielle Bowling reports

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n excerpt from IBISWorld’s Franchising in Australia, May 2012 report reads, “Franchising will become a viable path for retrenched workers or individuals seeking a change of career. The franchising model will allow individuals to become their own boss, without the stress or risk associated with establishing a

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new stand-alone business.” While the ability to work for yourself and be your own boss have always been among the main attractions of the franchising business model, the report does shed light on what the future of the industry will look like. And to put it simply, it’s all about services. Craig Shulman, a senior analyst at IBISWorld, believes industries including

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travel agencies, domestic and industrial cleaning and gardening services are A growth area most likely to experience impressive over the next five growth over the coming years. years will be online “Service-based enterprises retailing, which has appear to be a very strong growth largely been shunned option, but we’re seeing overall by the franchising that outside the established industry, in preference accommodation and food product for a wait-and-see sector, that the franchise industry approach overall is growing, because of the growing scope of the type of businesses that can fall under a franchise business type. The reason why services in particular are growing is because that’s a general growing economic demand in Australia at the moment – that as people gain greater levels of income, as well as become more time-poor and even with an ageing

population, the need for services has been rising and is expected to continue to rise,” says Shulman.

What’s down?

Food retailing has, for many people, been the first port of call when considering which franchise system to invest in, and still to this day it is one of the most significant segments of the franchising world, but it is having to change its approach to suit consumer demands and the growth of other business models. “While retail trade has continued to dominate, the most notable change has arisen from the demise of accommodation and food service (previously food retailing), which was once regarded as the largest industry segment,” the report reads. “The demise of food retailing within the industry is not so much due to a fall in popularity or sales >> continues on page 113

What does the future hold? Greg Hodson, partner at PricewaterhouseCoopers Australia looked through the crystal ball and shared his thoughts on what will be hot (and not) for potential franchisees in the coming years WHICH INDUSTRIES ARE YOU EXPECTING TO BE POPULAR AMONG POTENTIAL FRANCHISEES IN THE NEXT FEW YEARS? WHY? Looking at economic and social trends indicates that we have an ageing population. Gen Y is starting to have an increasingly disposable income, the general population has an increasing awareness in health and nutrition as well as an insatiable appetite for technology and the internet. This suggests that franchises focussed on healthy takeaway food, aged care services, retirement planning and recreation services for older people, child care, fitness and health, domestic and personal services, and telecommunications and IT services will be popular in coming years.

WHICH INDUSTRIES ARE YOU EXPECTING TO LOSE POPULARITY? Automotive repairs is an area I expect to decline in popularity. Repairing a car tends to be a grudge purchase

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that people put off, and with new cars so cheap now, people are likely to turn their cars over more – hence the number of older cars on the road requiring repair will continue to reduce. Working in automotive repairs is also hard work, therefore attracting franchisees and staff will continue to be difficult. Retailers that have internet competitors might also struggle. We have already seen the significant impact of internet retailers (eg books, electronic goods, homewares) on those with bricks and mortar presences. This will only increase over the coming years.

WHAT ARE POTENTIAL FRANCHISEES PRIORITISING WHEN LOOKING FOR THE RIGHT SYSTEM? IS IT LIFESTYLE? FLEXIBLE HOURS? PROFITABILITY? Lifestyle – most people like the idea of being their own boss which brings with it the potential for flexible working arrangements and wealth creation. They obviously want to make sure that they are investing in something

WWW.FRANCHISE.NET.AU

that will be profitable but in Australia most franchisees make their decision to buy based on lifestyle. We don’t have a high level of multi-unit ownership compared to countries like the US where significant multi-unit ownership is common and decisions to buy are based more on profitability.

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the service-based franchising segment will continue >> continued from page 110 to attract a range of investors. Following strong price performance, but rather indicates the strong and product-based competition, food franchises will growth exhibited by other product segments … The be forced to evolve in order to remain competitive.” reduction in the relative share of sales generated by food retailing may also be attributed to the saturated market for fast food, café, and juice operators over the past five years.” Sections of the food retailing industry are So we know that services are going to be in the experiencing increased interest from franchising limelight over the coming years, consumers, however, with a rise in but which ones in particular are likely to interest in health and healthy eating experience strong growth? translating to growth for concepts IBISWorld predicts that services Demand for such as a salad bars, sandwich which cater towards time-poor, service-based shops and juice bars. cash-rich individuals are the ones franchises remained Craig Shulman expects to watch. It says that over the past high due to growth in service-based industries fi ve years, a reduction in leisure income levels and to continue seeing steady time, caused by a rise in working an overall shift in growth over the coming hours, combined with a greater consumer preferences years, not just because of the disposable income, means people from DIY to growing demand for such are in increasing numbers deciding to do-it-for-me services from the community, outsource those domestic services they (DIFM) but because, in general, entry into no longer have the time or the desire to service-based businesses is easier complete themselves. These include mobile for potential franchisees than other pet care services, travel agencies, domestic and investment options. industrial cleaning and gardening services. “When it comes to services, I think it really comes down to essentially the demand, so it’s more likely, because of a general economic trend for this type of business, to get off the ground a lot quicker because people are looking towards accessing that service a lot more proactively than say food, which is already very well established in Australia. Food is still growing but not as fast as the rest of the industry,” he says. His thoughts are mirrored in the Franchising in Australia report. “While fast food outlets will With more women entering the workforce and continue to be the foundation of franchising activity, both men and women experiencing a reduction in changing demographics will require a shift to well leisure time, children’s services are also expected to managed, service-based networks. Regarded as witness impressive growth over the next few years. having low barriers to entry compared with retail, Robert Connelly is managing director at

What’s up?

While fast food outlets will continue to be the foundation of franchising activity, changing demographics will require a shift to well managed, service-based networks

YogaBugs takes children on an imagination-based, interactive journey

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why the YogaBugs YogaBugs, which offers The industry business model has schools, preschools, will experience an proven so popular kindergartens and increase in the number is that time-poor day care centres of franchises that launch parents not only imagination driven stores in airports, at want reliable, yoga classes. railway stations, inside trustworthy Launched at the supermarkets and next childcare, but they end of 2010, there to other franchises, also want to know are now 13 franchises creating mini that their children are in NSW, Victoria and hubs having their physical Tasmania, with the model and emotional needs cared announcing its launch for while they are at work. into China and its late stage “The economy is forcing a situation negotiations with three other countries. where we’re back to two parent working “We are new in Australia, we’ve only families as a necessity. There’s no been here for less than two years so doubt that that’s happening,” he says. we’re still growing. Effectively, what we “Obviously, if more parents are working do is take children on an imaginationthen they’re going to require more driven story, an adventure story which is childcare. What we believe is going to interactive and as part of the session they be even more valuable is a service that have quiet time … we also teach them provides children with some real strategy breathing techniques for different times and also provides parents with some real of their lives, so if they’re feeling anxious strategies to deal with the stresses that or stressed we actually teach them a come with that sort of structure that’s breathing technique that helps them calm being forced upon them. down,” says Connelly. “So childcare services is one issue, Connelly agrees that childcare but you also need to look at childrens’ services will continue to experience services, which have a benefit on growth in the future, and a big reason

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their physical and emotional development.” Connelly says service-based franchises are proving so popular amongst potential franchisees because they are often operated from home and have a reduced capital outlay compared to other industry segments. The success of the business is also more strongly influenced by the franchisee and how invested they are in their work, rather than consumer or retail trends, he adds. “They [service-based franchisees] are providing themselves, so it’s something they understand. If you’re providing a product you tend to be at the mercy of whatever the product is but if you’re providing yourself as the product you feel like you have a lot more control and I think that’s an important issue.”

Over the next five years, aged-care services are expected to be affected by franchising trends as government, non-profit organisations and health-care providers turn their attention to contracting out services

Of course people are buying online, you can’t deny that people will buy products online, but you can’t buy a treatment AD_ F RBSBJ UL _ 1 2 . p d f Pa ge 1 5 / 0 6 / 1 2 , 3 : online, you have to come in

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Beauty buzz While today’s time-poor Australian is feeding the growth of domestic service and child-care franchises, the higher disposable income that comes with increased working hours is also resulting in growth for some more indulgent service offerings. The IBISWorld report reads, “Other growth areas are expected to include day spas, fitness centres, healthy food chains and tanning lounges. Fragmented areas such as hair care are also expected to perform well and personal services is projected to grow as consumers spend more on pampering themselves.” Co-founder of Endota Spas, Belinda Fraser,

5 4Treatments P M at Endota Spas are a strong growth area for the business

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Franchise that down to a trend believes a big part of chains that are in people wanting the success of the forecast to suffer more treatments. franchise, which the greatest pressure Retail was up, but it is divided into on profitability wasn’t up as much selling three things will include juice as treatments. Of – beauty products, and coffee course people are gift vouchers and franchises buying online, you treatments such can’t deny that people as waxing, tanning, will buy products online, facials and massages – but you can’t buy a treatment is that while the vouchers online, you have to come in.” and products can be bought online, The strength of Endota’s retail treatments obviously need to model not only makes it attractive to be claimed in-store, making the landlords but also to people looking franchise somewhat immune to the to invest in a beauty franchise. threat of e-retailing. Endota has been franchising for “We [Fraser and fellow co-founder approximately eight years and is Melanie Gleeson] feel that when opening 11 spas between now and the we’re negotiating leases and new end of the year, making the last six sites we’re getting quite a positive months of 2012 the company’s busiest reception from the shopping centres period, in terms of outlet openings. and bigger landlords, because we’re “We get a lot of people talking retail but we can’t be bought online, about online now so they might so I think that gives us an edge in the be concerned about getting into future,” she says. a business that predominantly is “In the last financial year, products that can be bought online, treatments was the biggest grower so that gives us a great edge.” F [of the three] so you’d have to put

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Belinda Fraser and Melanie Gleeson

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Due diligence|Issues

RENEWING YOUR AGREEMENT:

There’s more to renewing your franchise agreement than just putting pen to paper. Here, Michael Schaper looks at your role, and your rights, in locking in another term

NOT JUST A FORMALITY F

ranchise agreements don’t last forever – they run for a fixed term, usually five or 10 years. If your franchise agreement is coming to an end, don’t just assume it will be renewed for another term.

Do you have a right to renew?

If you bought your franchise on or after 1 July 2010, the disclosure document you received from the franchisor (as required under the mandatory Franchising Code of Conduct) should contain details of the arrangements that will apply at the end of the agreement, including whether you will have an option to renew or extend the agreement. To fully understand your renewal rights, you’ll also need to read the franchise agreement itself. While some agreements give the franchisee an automatic right of renewal, most don’t. Many franchise agreements contain a conditional right of renewal. This means that the franchisee is given the option

While the Franchising Code doesn’t give you an automatic right to renew your agreement, the code does require the franchisor to notify you of their intention to renew or not renew your agreement at least six months before www.FRANCHISe.Net.Au

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to renew their agreement only if they meet certain conditions, such as meeting specified sales targets, committing fewer than a specified number of contract breaches or having no

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outstanding amounts owing to the franchisor. Other agreements leave renewal to the franchisor’s absolute discretion. If this is the case, the decision is out

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of the franchisee’s hands. The franchisor can decide not to renew the franchisee’s agreement without even explaining why. While the Franchising Code doesn’t give you an automatic right to renew your agreement, the code does require the franchisor to notify you of their intention to renew or not renew your agreement at least

Other agreements leave renewal to the franchisor’s absolute discretion. If this is the case, the decision is out of the franchisee’s hands

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six months before it comes to an end (if your agreement runs for less than six months, you’ll get at least one months’ notice).

The renewal process

Your franchise agreement will set out the renewal process. You may be required to give the franchisor written notice of your intention to renew by a certain date. If you don’t exercise your option within the specified timeframe, you may lose your right to renew.

KEY POINTS • Renewal is rarely automatic – read your franchise agreement and disclosure document to understand the conditions of renewal, as well as the renewal process • The franchisor must give you at least six months’ notice of their decision to renew or not renew your agreement (unless you entered into the agreement before 1 July 2010) • Before deciding whether to renew, find out how your new agreement differs from the previous one (if at all) and get advice from a lawyer and an accountant You may be required to pay a fee to renew your agreement and, if your franchise operates from a physical store, you’ll probably also need to enter into a new lease agreement. The franchisor must give you a copy of the new franchise agreement and the latest disclosure document at least 14 days before you re-sign.

Before you decide

Before you renew your franchise agreement, ask your franchisor if the new agreement differs from the previous agreement and, if it does, ask what changes have been made 122| FRANCHISING Sep/oCt 2012

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Before you renew your franchise agreement, ask your franchisor if the new agreement differs from the previous agreement and, if it does, ask what changes have been made. You should also seek legal advice, particularly if the new agreement is different. Also talk to an accountant or business adviser – if the franchise isn’t giving you a good return on your investment, it may not be worth signing on for another term. The disclosure document must include the contact details of some past franchisees, including those whose agreements weren’t renewed by the franchisor. You may wish to talk to the franchisees who weren’t renewed or decided to leave the system and find out why. There’s no cooling off period for renewals, so think carefully before you re-sign. F Dr Michael Schaper is Deputy Chairman of the ACCC.

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How to|Leasing

LEASE Paying rent is a major cost for any retail business, especially in high profile shopping centres. A franchisee can gain significantly from the experience of their franchisor when it comes to leasing their outlet, and it’s one of the benefits of investing in a franchise brand. Ange Kondos of The Leasewise Group explains more 124| FRANCHISING SEP/OCT 2012

LIKELY T

he times are changing and these days landlords no longer wield as much power in most lease negotiations. The Leasewise Group represents a number of franchise systems and has found that the last two years were the best possible time to negotiate lease deals and terms, compared to the last decade, and we expect it to only get better for the retailers. This, of course, is due in part to a soft economy tempered by negative general media sentiment but largely due to an overheated and saturated retail market. In other words, there are too many shopping centres and retail strips WWW.FRANCHISE.NET.AU

in Australia for the size of our market. This has been exacerbated by rents being driven too high in more bullish times. The correction has been taking place and in my opinion will continue to do so for several more years. The shopping centre environment will be the focus of this article. It’s true that key strips such as Chapel Street in Melbourne and Sydney’s Oxford Street are riddled with ‘For Lease’ signs but these true market areas will self-correct. This is unlike the large shopping centres which, because of their resources, appear to be fully tenanted. The truth may be different though. If a tenant falls behind in rent on a strip site, a

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How to|Leasing

landlord will usually lock them out and it becomes a vacancy; in a shopping centre the landlord can apply a rental abatement (called a promotional allowance) and carry the tenant, giving an impression that there is no vacancy.

Franchisors are well placed to assist with these essentials as either they or their representatives have gone through this process themselves with their own sites and other franchised outlets. Their systems are honed into the

The experience and brand equity a franchisor brings to a location enables landlords to offer more incentives such as cash contribution to fitout and/or rent free periods

KEY POINTS

likely sales a site will achieve which will have a direct bearing When negotiating a new lease the on the rent they can afford. The fundamental points are always experience and brand equity a the same: franchisor brings to a location • Secure lease terms that are fair enables landlords to offer and reasonable based on the more incentives such as cash business model contribution to fitout and/or • Obtain the best incentives rent free periods. The advantage possible of a franchisor with negotiating • Include clauses that protect the A D _ F R S I G N MA Y _ 1 2 . p d f Pa ge 1 5 / 0 4 / 1 2 , 3 : 0 4 PM experience is that franchisees can client from unforeseen charges avoid hidden charges that can and events

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prove horrendous in shopping centres, charges such as hoarding fees, design review fees, the costs of moving air-conditioning ducts, fire sprinkler heads etc. These charges can amount to tens of thousands of dollars and an experienced franchisor that knows how to avoid these pitfalls can make significant savings for its franchisees.

NEGOTIATIONS 1. Rent negotiations 2. Lease renewals 3. Advice on relocations/ demolition clauses

1. Rent deals Rent information is more widely available and shared in today’s market than ever before. In the past franchisors were often pitted against each other by leasing executives who have one singular advantage – sales data. If a centre is performing well, landlords will use the data they collect from

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tenancies to lure a new prospect and base their rent on this data. Of course, established franchisors have a better handle on whether this data is legitimate or not. Inexperienced prospects can often agree to a rent that cannot be sustained for the term of the lease. A franchisor these days will validate data within the network or use external information providers to validate it. Shopping centre rents can be further falsely inflated by the fitout incentive carrot. Basically if a rent of $150,000 per annum is attained by providing $100,000 fitout money, the real rent amortised over the term of the lease is $124,000 in the first year, as franchisees have in effect paid for the prop up. 2. Lease renewals Lease renewals can be quite traumatic for franchisees. The shopping centre industry in particular is known for seeking increases of 30 to 60 percent at

a renewal of a lease. Although this practice has petered off a little during the last two years it does come up in sites where a centre judges that a store is overperforming. The centre will give no credit to the operator and franchisor and grab maximum rent based on their perception of what the operator can afford. This practice can denigrate further when a

Hidden charges can amount to tens of thousands of dollars and an experienced franchisor that knows how to avoid these pitfalls can make significant savings for its franchisees leasing agent markets the site to a competing franchisor using the sales figures the current operator provided to the centre. Although illegal, it does go on. Franchisors who communicate well within their network and do not get involved in this (because

inevitably it happens to them) are well placed to lift the burden from the franchisee and get the best possible result. 3. Relocations and demolition Relocations and demolition clauses can be used to great

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advantage or can be a burden to a retailer. These clauses can be quite technical, however an experienced franchisor is well placed to negotiate a better result for a franchisee because they are usually enacted when there is a major development, and this gives the franchisor the opportunity to bargain for a better location, fitout payment and rental abatement during the development. A demolition clause usually means that the retail space is needed for building works and compensation for the balance of the lease is due to the leaseholder. A franchising system that has proper

A franchising system that has proper financial reporting provides the advantage as most independents do not have the data and A D _ F R ME T J U L _ 1 2 . p d f a ge 1 6 / 0 6 / 1 2 , 1 1 : 1 5 reporting capability toPmaximise the return

financial reporting provides the advantage as most independents do not have the data and reporting capability to maximise the return. I remember a time when franchisors would say to me “Listen, can you assist with the rent negotiation, but I don’t want to upset the shopping centre because they may not give me a site in future developments”. This thinking has changed and all franchisors now deal vigorously with landlords and provide the best possible information and representation to their franchisees, realising the power they have and how important each franchise unit is in the chain. F

METROPOLITAN SHREDDING SERVICE PTY LTD Metropolitan Shredding Service delivers immediate income and the opportunity to expand at your own pace. What we’ve created has some great benefits for you to consider: • • • •

Long term revenue growth in document destruction and paper recycling A five day working week and some existing clientele A great first time business opportunity with low entry cost and low overheads A head office which provides training and support and is committed to your success

Metropolitan Shredding franchisees have: • • •

The desire to succeed in their own neighbourhood Good sales skills and experience in handling people The desire to earn a substantial income working from home

Get into business, now, for as little as $30,000 plus van.

Contact: Theo St. James Phone: 1300 677 074 or Email: theo@metroshred.com.au Website: www.metroshred.com.au

130| FRANCHISING SEP/OCT 2012

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Ange Kondos is managing director of The Leasewise Group

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11:05:32 AM

Passive Income with Guaranteed RETURNS Work ONLY 1 day a week in the booming coffee market and earn better than the national average wage*

If you ever wanted to own your own business, but didn't want to work the usual 60 - 70 hours per week required. Well now you don't have to. Introducing Xpresso Delight a one day a week business that returns a normal weeks worth of five days labouring, with a guaranteed minimum 50% revenue return on investment.

This is a limited Franchise opportunity with: • Greater than 70% gross profit margins

• 170+ Franchisees in 8 years and growing fast

• Capital investment from $69,900 + GST • Xpresso Delight is NOT a vending business

• Special Offer! All COFFEE Systems now come with Instant Income Locations**

Join one of Australia’s Fastest Growing Franchises as listed in BRW Magazine 08-09-10-11-12

Call NOW to discover the magic of passive income or visit our website at: www.xpressodelight.com.au QLD: 0435 224 096 NSW: 0419 203 940 VIC: 0438 563 885 SA: 0400 297 959 WA: 0406 584 340 New Zealand: +64 2187 5431 *based on the average Xpresso Delight franchisee earnings ** All coffee systems refers to the initial purchase requirement only

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How to|Mediation

Communication is essential at any time in a franchise partnership, but never more so than when business is challenged, suggests Bianca Keys of the Office of Franchising Mediation Advisor

‘

Times are tough’ is a turn of phrase that we are hearing more and more. Budgets are tight, and we are increasingly scrutinising cash flow, cost of supplies and the expense of human resources. In the world of franchising we might quickly jump to the conclusion that it is franchisees that are ‘doing it tough’ and in many circumstances this will be true. However, it also needs to be noted that many franchisors are operating small businesses, and are feeling the effects of similar monetary constraints. In a franchise relationship where both parties feel the push and pull of financial concerns, effective communication can easily become the first casualty of

Tough times can’t last forever, but resilient partnerships can. It is up to you to make communication a priority and to nurture and preserve the relationship through tough times 132| FRANCHISING Sep/oCt 2012

the cash flow war. However, when times are difficult, it is communication that will get you over most hurdles. Effective communication must be a priority, regardless of the pressures being experienced by one or both parties.

Why communicate?

We are human beings, and when times are tough our survival mechanism goes into overdrive. It causes us to focus on “me”, “my worries” and “my needs”. These are obviously essential considerations, but they do create a rigid and limited view of the world, and an atmosphere ripe for tense and one-sided debate. As you focus on “me and my”, you not only fail to consider the difficulties faced by the other person, you add to the difficulties faced by them. They in turn will become more frantic and focus on their own “me and my” concerns, failing to address the tensions raised by you. A viscous cycle is set in motion and communication can degenerate quickly. Defence becomes the survival strategy of both. The franchise relationship is a unique one that depends on the success of the brand for all concerned, and on the support and motivation of all parties. A cycle

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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

• 50 Franchisees in Australia, 5 in Dubai • 20 year history • Contracts with Australia’s leading furniture retailers • Proven system ensure success Give us a call and we can help you take the drivers seat in your future… chair. e… or in our case the easy chai

Retailing market research 2012)

The Leather Doctor offers a proven system that ensures success. We have a national customer base of major furniture retailers and manufacturers as well as a well recognised brand within the private market. This is backed up by the fact that our growth has continued each year despite economic conditions.

1300 453 284 Email: info@theleatherdoctor.net.au

www.myleatherdoctor.com.au

National Marketing Manager: Dean Reid - 0438 844 238

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of destructive communication is not conducive to meeting these needs and may only destroy any chance of survival for all involved parties.

How do we break the cycle?

This will take energy and concentrated effort, but it is worth the time invested. More than ever, you will need to think in “we” language and work on creating strong alliances with your franchise partner. Firstly, you will need to prepare well for a conversation with the other person. 1. Write down your main concerns and the needs driving these concerns; 2. Think about the possible solutions that would satisfy these needs; 3. Consider and write down the possible concerns and needs of the other person;

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4. Think about ways in which their concerns and needs might be met; and 5. Tie this thinking together by addressing ways in which both sets of tensions might be eased. Think laterally. Such preparation will force you to take off your blinkers and see the problem peripherally. You might even consider increasing your chances of collaborating effectively by alerting the other person of your desire to have a conversation; using language that invites them to prepare in a similar way. Once you are on the telephone or in the meeting room, consider employing the following techniques to maximise success: 1. Invite the other person to share their concerns (because you may not have identified them correctly); 2. Really listen to what they have to say and let them know you are taking it in by: a. Asking clarifying questions b. Relaying the key points back to them. 3. Once it is your time to speak, think about raising your own concerns and needs by: a. Raising your concerns with “I” and “My” language (“My concern is…”) b. Refraining from making statements of blame (avoiding “You do/don’t do this….”) c. Identifying any common ground d. Inviting collaborative problem-solving by separating the people from the problem and suggesting that “we” consider how “we” might be able to meet the concerns that are important to “us” and the brand. Keeping your cool is certainly going to assist, and an open-mind will be an important feature for 1effective 0 : 1 5 communication. AM >> continues on page 137

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You want cheaper and easier business insurance. We have just the trick.

To find out how we can insure a franchised business in just four clicks, speak to Darryl Morris today on 1800 776 747 or email info@mynfib.com.au

mynfib.com.au National Franchise Insurance Brokers Pty Ltd is an authorised representative (ARLN 277977) of LTM Group Pty Ltd (AFSLN 245374) NFI059

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>> continued from page 134

Tough times can’t last forever, but resilient partnerships can. It is up to you to make communication a priority and to nurture and preserve the relationship through tough times. If the relationship deteriorates there are tools available to assist you.

Getting help

These conversations can be as difficult to deal with as the financial pressures that keep firing at you. However, there are tools available to you, to help you to have these difficult conversations. The Office of the Franchising Mediation Adviser (OFMA) is an independent service established under the Franchising Code of Conduct. Part 4 of the Code provides a dispute resolution mechanism, focusing on mediation as a way to resolve problems quickly, efficiently and cost-effectively. A mediator is a neutral third party. Their role is to facilitate effective dialogue, with a focus on problem solving in order to reach unique and meaningful outcomes, bearing in mind the needs and objectives of those involved. OFMA has a panel of nationally accredited mediators A D _ F based R G R throughout E S E P _ 1Australia, 2 . p d f with P specific a ge 1 experience in franchise matters. Where one party requests mediation under the

Code, both parties are obligated to attend a mediation meeting. These meetings are conducted “face-to-face”, with both parties and the mediator present. The majority of mediation meetings result in agreement between the parties. Mediations under the Code typically take five to seven hours on the same day and cost each party approximately $1200-$1300 in mediation fees. This represents a fraction of the costs of more formal legal processes. For problems that are fairly straightforward and do not require a face-to-face meeting, OFMA may offer an early intervention service before or in place of mediation. This is a voluntary process conducted via telephone and email. There is no charge for this service. F Bianca Keys is assistant franchising mediation adviser (OFMA)

FoR moRe INFoRmAtIoN oN medIAtIoN Contact OFMA: your call will be treated confidentially Office of the Franchising Mediation Adviser (OFMA) Free Call: 1800 150 667 6Email: / 0 8 office@franchisingmediationadviser.com.au / 1 2 , 1 1 : 0 4 AM Website (and online enquiry): www.franchisingmediationadviser.com.au

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logged on Social media use in the workplace continues to be an issue for Australian employers. So is the increasing online access in our lives good or bad for Australian business?

any franchise brands have been swift to embrace the ever-changing world of social media; itâ&#x20AC;&#x2122;s a key communication tool in our personal and business lives. But it can be an unwieldy beast to manage.

Online opportunities

According to one report, one in every five minutes is spent on social media, with Facebook and Twitter proving to be key sites. With a reported 13 million Australians online for an average 18 hours a day, there are clearly some very heavy users 138| FRANCHISING Sep/oCt 2012

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among the sampled 1400 adult consumers surveyed in ExactTarget’s Digital Down Under report. The survey also draws on a number of other sources including the Australian Bureau of Statistics to make its findings*. Lee Hawksley, managing

their consumers across the channels they use most. Creating relationships between brands and consumers requires more than just a clever tagline and some posh marketing materials. To truly connect with customers, we need to understand their behaviour and motivations.”

While many employees are quick to see the benefits, employers and managers are still grappling with a host of complex issues relating to privacy, monitoring and access to sensitive business information Impact on work patterns

director of ExactTarget Australia, says “These statistics show that people are increasingly However, Australians are spending more becoming less productive as social time online which creates a media impacts on workplace A D _ F R D C S M A Y _ 1 2tremendous . pdf Popportunity a g e 1 for4 / 0 4 / 1productivity, 2 , 9 : 1suggests 4 A Ma recent businesses to connect with survey, the Kelly Global Workforce

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Index, which found 48 percent of employees believe social media discourages productivity, and 59 percent believe a mix of personal and professional connections through social media can cause problems in the workplace. The findings from the survey also indicate 21 percent of respondents believe a social media presence is important for their employer firm, and 21 percent feel it acceptable to share views on work with friends and colleagues through social media. Karen Colfer, managing director, Kelly Services Australia says “There is nervousness about the pitfalls if the personal and professional worlds of social media are allowed to intermingle. The reality is that the spread of social media in the workplace is occurring faster than any rules designed to manage it. “While many employees are quick to see the benefits,

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employers and managers are still grappling with a host of complex issues relating to privacy, monitoring and access to sensitive business information.” Employsure Australia has surveyed 864 employers and found 88 percent had to discipline their staff this year for using social network sites during working hours. Seventy-two percent of employers surveyed view social networking sites as a distraction at work. Edward Mallett, managing director of Employsure Australia says it’s vital for employers to have internet policies in place that clearly indicate to employees that social media websites are off limits during working hours.

“Social media is an evolving platform and all Australian employers need to have a policy in place to prevent it from becoming a workplace hindrance.” Employers are within their rights to regulate employees’ work conduct and Mallett highlights that this is still applicable even when actions take place away from the workplace and out of hours. “Introducing a social media policy could aim to completely prohibit

Social media is an evolving platform and all Australian employers need to have a policy in place to prevent it from becoming a workplace hindrance

business growth specialists

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claims against your business.” Only 18 percent of employers have a policy in place to prevent employers using social media sites to make derogative remarks about their workplace, the survey found. A social media policy is vital for a business of any size, Mallett adds. So what levels of control will you have as a franchisee to manage social media activity? And how will your chosen franchise engage online with consumers? While the merging of personal and professional activities in social media can be detrimental to workflow, there is plenty of opportunity for firms to connect with consumers. F

any comments linked to the company, or allow the use of social media in a constrained context. Certain industries thrive in a social media environment and this is how they do business, and in those cases there need to be clear guidelines. “It is essential to have general disciplinary action in place, by not doing so, you jeopardise your business and could risk facing employment

People are increasingly spending more time online which creates a tremendous opportunity for businesses to connect with their consumers across the channels they use most. Creating relationships between brands and consumers requires more than just aP aclever tagline and 1some AD_ F RF CASEP_ 1 2 . p d f ge 1 1 6 / 0 8 / 1 2 , 2 : 0 4 posh marketing materials

*Other sources include AIMIA Sensis Social Media Report, Stephen Cater Social Media in Australia, and Australian Direct Marketing Association.

Canberra Convention Centre [ 7 - 9 October 2012 ]

NFC 12

Intelligent Connections Join Australia’s top franchisors for the year’s best franchise event This year’s FCA National Franchise Convention will showcase more of the nation’s top franchisors than ever before. The Convention will also feature keynote speakers former Prime Minister, John Howard OM AC on leadership and Chairman of Yellow Brick Road and host of Channel 9’s The Apprentice, Mark Bouris on the challenges and triumphs of his career so far.

To register visit www.franchise.org.au/national-franchise-convention-2012.html For more information about sponsorship and exhibition opportunities please contact the head office on 1300 669 030

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optimising the connectivity of your franchising system

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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

kwikkopy.com.au FranchisingAPril_1pg_KwikKopy_FA_Headley.indd 1

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How to|Invest in retail

What should a potential franchisee take into account before entering into a retail franchise? Hymie Zawatzky has some advice to help avoid the problems and pitfalls of signing up to a retail system

RETAIL

CHECKLIST I

t’s essential to do your homework before signing a franchise agreement to give yourself the best chance of success in the retail arena. In this edited extract from The Immigrant’s Guide to Retail, Hymie Zawatzky shares his years of financial and management experience and suggests starting the due diligence process by looking at the product you’ll be selling.

Examine the retail product

There are a number of questions to ask yourself when you consider the merchandise. For instance, has the product been sold for a number of years in Australia? Consider if the franchise is a single product franchise and if the product is sold yearround; for instance if it is an ice cream franchise, what will you sell in the winter months? Is the product likely to be replaced by new technology in the short or medium term and how well placed is the franchisor to cope with such change if it should occur? 144| FRANCHISING Sep/oCt 2012

Does the company you plan to invest in use the internet, Facebook or Twitter as marketing tools?

The market

Has the product particular qualities that give it a distinct advantage over its competitors? Think too about the sector of the market it sits in: is it in direct retail, which is in decline, and affected by online sales? Is the product

Always take out a credit check on the franchisor, either through your bank or a credit agency. Remember the financial failure of a franchisor may result in you, the franchisee, losing your entire investment www.FRANCHISe.Net.Au

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r ard fo w a A n FC ence i l l e c x “E l ationa n r e t n I ” hising c n a r F

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How to|Invest in retail

Sourcing

exploiting a fad or current fashion which may be short lived? How competitive is the market for the product, and the price of the product? Will competitiveness be maintained? Is there the possibility of over saturation in the market for that product?

Is the product likely to be replaced by new technology in the short or medium term and how well placed is the franchisor to cope with such change if it A D _ F R J E MMA R _ 1 2 . p d f Pa ge 1 6 / 0 2 / 1 2 , should occur?

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Is the product sourced locally or imported? If imported it may be subject to currency fluctuations. Are future supplies of the product certain, and are there alternative sources of supply of the product if a main supplier goes out of business? Are the products based on a trade mark or patent? If so how long have these trademarks or patents to run? Find out if the franchisor has a long term contract with the supplier for the products and if they are supported by guarantees and service facility support. Consider whether or not a manufacturer can easily by-pass a franchisor and set up his own supply to the market. What is the reputation of the product as to reliability in the minds of the public? What is the reputation of the main supplier? If it is a food product, has it undergone certification from the appropriate government authority? Do discount stores and mini major stores also sell the product and cut prices? You could be put out of business. We saw this recently in the photo processing industry. Are volume discounts earned from group purchases from one supplier passed on to all franchisees?

The franchisor: financial position and business acumen

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A new way to connect with your customers RedCat’s new mobile phone application allows hospitality and franchise outlets to have their own branded iPhone application as well as working as a web application on other mobile devices. It also offers the ultimate in convenient ordering, allowing customers to prepay and pre-order food at their desired time directly from the application. Purchases can be paid for using points, pre-paid gift cards or credit card. Orders will be sent direct to the Point of Sale at the store and will print out automatically, at the correct time, without the need for any interaction by the staff. The application can also be conﬁgured to be used as a self ordering kiosk at store level. Not only will it streamline the ordering process, it will allow you to take advantage of the dramatic increase in popularity of coupons. Research shows that globally, mobile coupon redemptions will exceed $6 billion by 2014*. Hospitality outlets can also use the application to deliver targeted and relevant advertising offers directly to their members which can be redeemed and tracked seamlessly through the RedCat Point of Sale system. * Jupiter Research

Registration

Coupons

Store Locator

Ordering

Barcode Loyalty

Existing members can login, or new members can register their details directly within the app.

Targeted marketing sent directly to your members. Relevant. Immediate. Redeemable at POS.

Customers can search for their nearest site by using integrated GPS, or postcode search.

Save favourites, pay using points, vouchers or credit cards and send orders to the store.

Once registered, members can display their points balance, member status, and a barcode for identiﬁcation.

To ﬁnd out how you can take advantage of RedCat’s Mobile Applications, call 1300

8676 RedCat Mobile Phone Leaflet 205x275.indd 1

4 REDCAT or visit www.redcat.com.au

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YOU NEED A PLAN, BUT WHO DO YOU TURN TO? These days we live longer, so we need to save for more time without an income. The idea of running out of money is scary; you know you need a financial plan, but you’re not sure who to turn to. How can you tell one financial planner from another? Not all financial planners are the same. CERTIFIED FINANCIAL PLANNER® professionals have acheived the highest standards of education, experience and ethics recognised worldwide. Always look for a CFP® professional.

4 : 2 6

business and whether the franchisor has been in total control of the chain, and so aware of all the strengths and weaknesses of the business. Is the franchisor selling the business to raise capital? Or does the franchisor simply have a single store and is more in the business of selling franchises than running businesses? Check the company records of director’s interests. Particularly note if the franchisor has no interest in your main supplier. Speak to other franchisees to ascertain whether the franchisor is approachable and will continue to be, after you sign the agreement and whether you will be happy being in a long term relationship with the franchisor. Check there is a manual which clearly sets out all you need to know about the business and the product.

Financial, legal and leasing

What is the total investment and are there any hidden or additional costs? Make sure you are aware of the total entry costs. Sometimes charges by landlords including design fees, plan approvals of fit-out, survey fees, consulting and engineering charges by landlords will be passed on to the franchisee. These fees could be $6,000 or more and should be taken into account in the purchase price of the franchise.

Discover FPAdifference.com.au

CFP®, CERTIFIED FINANCIAL PLANNER® and CFP Logo® are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Financial Planning Association of Australia Limited is the marks licensing authority for the CFP marks in Australia, through agreement with FPSB.

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Make sure you are aware of the total entry costs. Sometimes charges by landlords including design fees, plan approvals of fit-out, survey fees, consulting and engineering charges by landlords will be passed on to the franchisee

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Invest in retail|How to

Will you, the franchisee, have to purchase from the franchisor product or equipment for fitting out the shop? You need to know if this will be done at cost to the franchisee, or are there any extra costs, commissions or charges added on by the franchisor? Confirm the exact rate of the royalty and ascertain whether this is to be paid on sales or on delivery cost. Make sure to work through an example of how it is calculated so that you miss nothing. Ask what terms have been negotiated by the franchisor to pay the suppliers and whether there are any cash discounts available for 30 day or seven day payments. Be certain that any projected profits set out in the franchisors’ marketing document, have been verified by an independent accountant. Check who has legal responsibility for the product if there are problems and discuss the legal terms of the agreement, particularly the termination provisions, dispute provisions and the exact definition of your territory with an independent lawyer. If your franchise is in a particular shopping centre, ascertain the past five year performance of that centre from a consultant, in respect to sales, traffic flow and sales per sq m for specialty tenants. Ascertain whether there are any new centres contemplated within five kilometres of your centre, which could draw traffic flow away from your centre. Try to get the franchisor to involve you in the negotiations of the lease so you are confident, that you are paying the best rental, and have secured the best lease conditions. If necessary engage an independent consultant to oversee it for you. If you are considering a food business, check whether you have a seating area in front of your store or kiosk and whether there is a store room available for storing product. These areas are usually covered by a licence agreement not with the landlord but with the centre’s management. Make sure that you also receive a survey certificate showing the area that forms part of your tenancy. Leases are governed by state law so make sure you know your rights. Even though the lease may be in the name of the franchisor, the licence agreement authorising you to occupy the premises may provide that you pay rent to the landlord. Make sure that you are aware of the implications if the rent is not paid on time, particularly in a major shopping centre. Make sure that any marketing funds are paid into a separate banking account. Also ascertain that the franchisor is sending you a statement at least quarterly, showing the balance in the marketing fund at the start of the quarter, plus contributions received, less expenses paid, resulting in the balance in the fund at the end of the quarter.

If you are considering a food business, check whether you have a seating area in front of your store or kiosk and whether there is a store room available for storing product. These areas are usually covered by a licence agreement not with the landlord but with the centre’s managementment The decision to go into franchising Having considered all that I have indicated above, you have to consider whether this franchise is for you. No matter what franchise you consider, there will always be positive and negative factors. If you are still not sure, why not use the T method of decision making? Simply list the positive points on the left hand side of the T and the negative points on the right hand side. Once the two lists are completed, assign each item a number to designate its importance to you. A simple scale of one for unimportant, two for somewhat important and three for very important can be used. Total the numbers for each side. The larger the numerical difference between these totals the more you can be sure of your decision. Your final decision to purchase should always result in enthusiasm and dedication for the undertaking. F Hymie Zawatzky is a certified practicing accountant and business consultant who has helped set up retail franchises. The Immigrant’s Guide to Retail is available from www.placeofbooks.com.au, iTunes and Amazon

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Finance|How to

A FIRM

When you buy or set up a franchise business, you have a choice of a number of business structures. But which one is right for you? Tim Kilham looks at the pros and cons

FOUNDATION B

efore you set up in business you need to know what shape the structure of your business will take: sole proprietorship, partnership, company and trust - these are some of the business structures available. Sometimes there may be a number of these entities in combination. The most appropriate structure to use will depend on a wide

range of factors; these factors can generally be grouped under the following broad headings: • Simplicity, cost and ease of operation • Flexibility • Asset protection • Tax minimisation This article explains the different types of structures from the perspectives of simplicity, cost and ease of operation, flexibility

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and asset protection. This article therefore does not address tax considerations involved in choosing a structure: for advice on tax considerations go to www. franchise.net.au/advice/howto/a-taxing-issue

Sole proprietorship This is the simplest structure available. It is also sometimes called sole trader. A sole

SEP/OCT 2012 FRANCHISING | 151

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proprietorship exists when a person legally runs their business in their own right. In other words it is the individual who is trading, perhaps using a registered business name. Registration of a business name is required when the trading entity (for example, an individual or a company) trades under a name different to its legal name.

or any combination of those. An agreement between partners can be written, verbal or implied.

Company

A company is recognised as a separate legal entity, distinct from its shareholders. A company comes into existence when it is registered with ASIC [the Australian Securities and

Sole proprietorship is undoubtedly the simplest structure, the easiest to operate and the least costly to establish and maintain. Companies and trusts are more costly, and more complex. This is even more so the case when the trustee of a trust is a company Partnership

A partnership is a relationship that exists between two or more persons or entities carrying on business in common with a view to making a profit. The partners of a partnership may be individuals, companies, trusts

Investments Commission]. A company is owned by its shareholders and managed by its directors or sole director. There are a number of different types of companies. All companies have the letters ‘Ltd’ or the word ‘Limited’ after their

name – this means the liability of the shareholders is limited to capital invested. Shareholders and directors are not normally personally liable for any amounts the company cannot pay. The most common type of company is a private company – identified by the letters ‘Pty’ or the word ‘Proprietary’ after the name. Private companies are distinguished from public companies mainly by the fact that restrictions can be imposed on the transferability of share of private companies, and by the fact that the number of members of a private company is limited to 50.

Trusts

There are a number of different types of trusts, with the most popular type being a discretionary trust. These trusts are often called family trusts. All trusts have a trustee (or trustees) that look after and administer the affairs of the trust. Discretionary trusts also have beneficiaries. These are people who are entitled to receive the profits of the trust. These beneficiaries are sometimes named individuals and entities [e.g. John Smith] and sometimes they are defined by the relationship to a particular person [e.g. the parents, children, spouse, grandparents etc. of John Smith]. So which structure or combination of structures is most appropriate from the perspective of simplicity, cost and ease of operation, flexibility and asset protection?

Simplicity, cost and ease of operation Most people understand the concept of running a business as a sole proprietorship or sole trader. All that is required to set up in business is registration of a business name (but only if you are trading under a name other >> continues on page 155 152| FRANCHISING Sep/oCt 2012

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AD_FRBASSEP_12.pdf

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Finance|How to

>> continued from page 152

than your own name). The cost of registering a business name is less than $100. Apart from the registration of a business name there is no other cost that must be incurred in setting up a business as a sole proprietor (or as a partnership). The cost of setting up a company is about $800 to $1,000 and the cost of setting up a discretionary trust is about $700 to $1,000. As stated earlier, all trusts have trustees. For reasons set out later in this article, the trustee is often a company. When the

business structure involves a company and a trust the costs of set up are about $1,500 to $2,000. Many people struggle with the concept of a company and the fact that although it is their company, it is a separate entity to them. It is a similar situation with trusts and the concept that with a trust there are at least two entities – a trustee that is the legal owner of the business and the trust that is the beneficial owner of the business. The difficulty of embracing the concept of beneficiaries means that for many people therefore, trusts and companies are not

With a discretionary trust, salaries can be paid to any person for work actually performed. However, a discretionary trust also then enables any remaining income, after paying all expenses, A U T O N A T M0 5 0 3 4 . p d f Pa ge 1 4 / 0 6 / 1 2 , 8 : 4 4 AM to be distributed to beneficiaries

Autobarn Franchise

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sep/oct 2012 FRANcHIsING | 155

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simple or easy to understand. Sole proprietorship is undoubtedly the simplest structure, the easiest to operate and the least costly to establish and maintain. Companies and trusts are more costly, and more complex. This is even more so the

can be paid salaries for the work they perform, as can other individuals for work actually performed. Companies provide limited flexibility. After the payment of salaries the remaining profits, if distributed, must be distributed

The limitation of liability afforded by companies is often more real in theory than in practice. This is because there are usually a number of major creditors of a business that seek personal guarantees from the owners of the company – and as soon as personal guarantees are given there is no longer limited liability case when the trustee of a trust is a company.

Flexibility

Flexibility refers to the ability to pay income to those persons most suited to receive that income. Sole proprietorships offer little or no flexibility. With a sole proprietorship, all income must go to the sole proprietor. No income can be paid to other persons unless the payment is in the form of a salary for work actually performed. With a partnership, income must be distributed in accordance with the partnership agreement. There is little flexibility, although partners

156| FRANCHISING Sep/oCt 2012

to shareholders in proportion to their shareholdings. With a discretionary trust, salaries can be paid to any person for work actually performed. However, a discretionary trust also then enables any remaining income, after paying all expenses, to be distributed to beneficiaries. Potential beneficiaries of a discretionary trust usually include the family members of the person that set up the trust and also any companies or other entities in which that person and their family members have an interest. Most trusts therefore have a wide range of potential beneficiaries. It is up to the trustee of the trust

www.FRANCHISe.Net.Au

to determine each year which beneficiaries actually receive distribution of income. This provides a great deal of flexibility.

Protection of assets

When a business is operated as a sole proprietorship or partnership, there is little or no asset protection. All the assets in the name of the proprietor or partner – vehicles, houses, etc. - are at risk if the proprietor or partner is sued for a business debt. This fact is an important deterrent to many people operating as sole proprietors. Partnerships also carry with them the concept of joint and several liability. This means that if a partnership incurs debts and is unable to pay them, the persons suing can sue any of the partners for the full amount of the debt, and not just each partner for that partner’s share of monies owed. The trustee of a trust is also personally liable for the debts of a trust, in the same way that a sole proprietor or individual partner is responsible for debts. However, when the trustee of a trust is a company, liability is limited in the same way that it is for all companies. There is therefore much greater protection of assets when a business operates as a company or as a trust with a company as a trustee. In each of these cases, it is the company [and not the individuals operating the trust or company] that is responsible for paying the debts. It is the company that will be sued if the debts are not paid. The liability of the members [the shareholders of the company] is limited to the amount of the share capital the members have contributed, which is normally only a few dollars – thus the expression ‘a $2 company’. The limitation of liability afforded by companies is often more real in theory than in practice. This is because there are usually a number of major creditors of a business that seek personal guarantees from the

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So companies (whether trading or acting as trustee of a trust) therefore offer greater asset protection than do sole proprietorships or partnerships, but this asset protection

owners of the company – and as soon as personal guarantees are given there is no longer limited liability. The individuals giving the personal guarantees become personally liable for the debts.

In my experience, the most common structure for franchise businesses involves companies, whether these are companies trading in their own right or acting as trustees of trusts For example, if you are setting up a franchise business • A bank will seek personal guarantees • A landlord is likely to seek personal guarantees • The franchisor often seeks personal guarantees These three creditors are usually the major creditors of a franchise business. Providing personal guarantees to these creditors therefore negates some of the advantages of the limited liability of companies.

158| FRANCHISING SEP/OCT 2012

is reduced when personal guarantees are provided.

Conclusion

It should be clear that there is no one structure that is best suited for all businesses. Sole proprietorships are cheap to set up, cheap to run and simple and easy to understand. They will suit many businesses where income splitting is not important and asset protection is not a priority. Partnerships are often very useful vehicles where a number

WWW.FRANCHISE.NET.AU

of people or entities are involved. The degree of complexity, asset protection and flexibility of partnerships will depend on whether the partners are individuals, companies, trusts or some mixture of these. In my experience, the most common structure for franchise businesses involves companies, whether these are companies trading in their own right or acting as trustees of trusts. These company and trust structures provide varying degrees of flexibility and some level of asset protection, and these are usually important factors for most people. If you are going to be creating a structure to run a business, you are well advised to do some research to make sure you understand the implications of each of the structures and then seek advice of a professional adviser to help you choose the structure that best suits your circumstances. F Tim Kilham is a director of Lanyon Partners Chartered Accountants, heads up its franchising division and is particularly active in advising on the purchase and set up of franchise businesses. Contact Tim at timk@ lanyonpartners.com.au or www.lanyonpartners.com.au

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Advice legit | leGAlese mAde eAsy

What you need to know about compliance and franchising

T raynia theodore Raynia theodore is principal, corporate advisory and franchising team at mason sier turnbull lawyers

here are two vital questions that prospective franchisees must consider before entering into a franchise agreement: is the system compliant with the law, including the Competition and Consumer Act and the Franchising Code of Conduct (the Code); and can I comply with the system and the franchise agreement? Franchising is about developing a system or method of doing business and then allowing franchisees to operate a replicated business following the system. Franchisee compliance is a key factor in the success of the network. To determine whether a franchise system is one with which you will be able to comply, it is critical that you read all of the legal documents carefully, including the franchise agreement and the disclosure document. Do not leave the reading to your advisors, because something that is standard from their point of view might be something that you cannot endure. You should also view a copy of the franchisor’s operations manuals that will deal with the system attributes and what is required of you on a daily basis. You should ask for the operations manual, firstly to verify that there is an active, functioning system and secondly to ensure you are able to abide by it. Franchisors are often unwilling to provide a copy of their operations manual before a franchisee signs the franchise agreement. Where this is the case, ask to review it at the franchisor’s offices. In deciding whether a franchise system is compliant with the Code, you should look at its disclosure document. Although some non-

You should ask for the operations manual, firstly to verify that there is an active, functioning system and secondly to ensure you are able to abide by it compliance may be trivial and almost irrelevant, it does send a message about the attitude of the franchisor towards compliance.

Non-compliant systems

Some areas of non-compliance with the Code by the franchisor include failure to: 1. Disclose key events such as the number of closures, terminations and sales in the franchise network and details of franchisees who have left the network; 2. Provide financial statements and the audit reports for the marketing fund; www.FRANcHIse.Net.Au

3. Provide the franchisor’s financial statements for the last two financial years or an audit of the franchisor; or 4. Disclose material facts, including litigation affecting the franchisor or its directors. There are some businesses opportunities, which are marketed to be licenses or distributorships. However if an arrangement satisfies the four elements of the definition of a franchise agreement contained within the Code, it will be deemed to be a franchise agreement irrespective of what the arrangement is called. Put simply, if there is an agreement (written, verbal or implied), a system or a marketing plan that must be followed, a trade mark that must be used in the business and the payment of fees, the arrangement is very likely to be a franchise. The Australian Competition and Consumer Commission is the governing body in franchising and it is continuing to crack down on non-compliant systems. The consequences of non-compliance can be severe for all parties concerned. Whilst noncompliance by the franchisor will primarily be the franchisor’s problem, if monetary penalties are imposed and the franchisor is required to put in place a trade practices compliance program, it can affect the whole network and its viability. It will affect the goodwill of the brand in the marketplace and severe monetary penalties may even affect the financial viability of the franchisor. Educate yourself about the Code, the system you are considering, the agreements and the operations manual of that system; listen to other franchisees, ex-franchisees and to your professional advisors. If what you see and hear accords with your beliefs and values, only then should you take the leap of faith and sign on the dotted line. F sep/oct 2012 FRANcHIsING | 161

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Opinion THE SKETCH | TRENDS AND DEVELOPMENTS

All you need is love?

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

t is now 45 years since the Beatles, in the world’s first live global television link, informed 400 million people in 26 countries that “all you need is love”. It’s a powerful slogan with a simple message and universal appeal. Why then the question mark? Is love not all you need? Well, in the business context, probably not. Indeed, from the perspective of a prospective franchisee, definitely not. Love, and its associated emotion – passion – underpin personal relationships. To some extent they are also the drivers of successful entrepreneurs. Richard Branson, the entrepreneurs’s entrepreneur, has written that “If you can indulge your passion, life will be far more interesting than if you are just working. You’ll work harder at it and you’ll know more about it”. Hardly rocket science so far. It makes sense and it is a beautiful thing if we have a love for, a passion for, a labour that pays the bills. But Branson qualified his comment. Passion by itself is not enough: “First you must go out and educate yourself on whatever it is that you’ve decided to do – know more about kite-surfing than anyone else. That’s where the work comes in.” The good part is that, in Branson’s words, “if you’re doing things you’re passionate about, the hard work will come naturally”.

Be passionate and follow your dream but be careful not to allow your passion to blind you to the business realities The same sentiment has been expressed a little more floridly by Daniel Isenberg in a recent Harvard Business Review blog: “So, entrepreneur, leave your passion in the bedroom. And when you’re launching your venture, let nothing stand in the way of sober, hard headed, objective assessment.” The message for prospective franchisees is pretty clear: you would be crazy to acquire a franchise or a business concept for which you have no love or passion or enthusiasm or drive or emotion. But you would be equally crazy to let your passion for a concept blind you to the underlying business realities. Business success, whether as a franchisor or as a franchisee or as an stand-alone business is ultimately driven by the basic drivers of business. Passion alone cannot pay the bills. It is not 162| FRANCHISING SEP/OCT 2012

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a substitute for the business fundamentals. It cannot compensate for due diligence and planning. It can nevertheless be a significant value-add to a business proposition that, even without the passion, makes business sense on its own. There is little scope for sentiment in business. In the current challenging economic climate this is particularly true. Small business in Australia is doing it tough and the reality that we are not doing it as tough as most other countries provides little consolation. What should provide some consolation is that the credentials of good franchise systems are more clearly demonstrated in such times. In good times even bad businesses can be successful. But tough times provide the opportunity for good and proven franchises to demonstrate the power of good systems, concepts, support, training, buying power, technology, management, networks and infrastructure. The opportunities for business success for a franchisee with a passion for the business concept which is tempered by due diligence in relation to the business proposition and awareness of the dangers of letting passion get in the way of a sound business decision are very real. Albert Einstein – who knew a thing or two – commented that “Nothing great in the world has ever been accomplished without passion”. Benjamin Franklin’s codicil is nevertheless important: “If passion drives you, let reason hold the reins.” So, be passionate and follow your dream but be careful not to allow your passion to blind you to the business realities. Be fuelled by, but not fooled by, passion. And remember that the word “passion” comes from the Ancient Greek verb ‘paskho’ meaning to suffer. F

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ears Celebrating 25 y

As we look back on the last 25 years and what we have managed to accomplish in that time, all of the team at Franchising magazine would like to take this opportunity to thank all of our readers, contributors and advertisers for their long lasting relationships and continued support. Whilst embracing the future of media, we will continue to help and inform franchisors and potential franchisees with all of the key issues aﬀecting the industry.

We hope you’ll be right there to share future successes with us! f 0 1 . pd 2 . P G0 L AUG1 F R. J U

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Opinion PEOPLE | LEADERSHIP

How the supporter effect creates winners

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

s I write this, the Olympics are in full swing. If past behaviour is the best predictor of future behaviour, Great Britain is going to win a record number of medals. The reason has nothing in particularly to do with the Brits themselves, it’s more to do with a phenomenon known as the home ground advantage. An analysis of Olympic medal wins by Professor Ray Stefani at California State University has shown host countries on average win 46 percent more medals than in previous games. One reason for this is the powerful and positive impact of having lots of local supporters. Psychologists have consistently found that the support of others,

what is technically referred to as psycho-social support, has a positive and powerful influence over all areas of our lives, including how we perform at sport and how we bounce back from life’s physical, mental and emotional challenges. Not surprisingly, this supporter effect also operates in business, particularly in a franchised business, where there are numerous opportunities for franchisees to tap into the support of others.

How to build supporters The prosperity of every business on the planet hinges on the support received by various groups of people. Successful franchisees understand this

Top seven

Here are seven tips for building supporters. None of these will cost you more than a couple of dollars. 1. Thank members of the franchisor team when they do something useful. They will be more likely to support you in the future if you are supportive of them. 2. Ask your staff what they are passionate about in their life and take an interest in this. 3. Phone a franchisee with whom you have something in common to ask how things are going and share something positive that has happened in your business recently. 4. When suppliers call, ask them if they have any ideas on how they can help you to improve your business.

This supporter effect also operates in business ... where there are numerous opportunities for franchisees to tap into the support of others and work hard to build the commitment of the people on whom their business depends. We are not just talking about customers. Supporters can include employees, suppliers, financiers, family members, fellow franchisees, franchisor support staff and the local community. Because this is such a broad group of people, many who are constantly changing; your focus on building supporters needs to be ongoing and relentless. This is the reason why we placed Build Supporters as the first piece in our new Franchisee Wheel of Excellence, developed from our most recent research into the predictors of franchisee success. I’ll talk about the other pieces in future columns. WWW.FRANCHISE.NET.AU

5. Make a time to visit your bank manager to tell him or her how your business is tracking and your plans for the future. 6. Thank your family for their tolerance and support. Make time to do the things they enjoy. 7. Buy a coffee for a fellow business operator in your vicinity and share a few minutes together talking about business, life and the universe. Speaking about life and the universe, a pompous, egocentric businessman was overheard boasting to his staff “And I’ll have you all know I’m a totally self-made man.” “Well at least we don’t have to take responsibility for that,” said God, smiling. F SEP/OCT 2012 FRANCHISING | 165

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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.

166| FRANCHISING SEP/OCT 2012

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

WWW.FRANCHISE.NET.AU

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 TO DO LIST | HeLp GuIDe

20 things to check before you invest Before you purchase your franchise you need to tick off all the must-do items. Check the following:

1. Are you confident in the franchisor? 2. Have you seen a disclosure document? 3. Have you evaluated the financial returns? 4. Do you know all the expenses franchisees are required to pay? 5. Have you worked out your operating costs? 6. Do you know the term of the agreement? 7. Is the business operating from fixed or mobile premises? 8. Are you working within a territory? If so, is the area exclusive? 9. Are you restricted in your product purchase? 10. Are you required to reach a minimum performance level?

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11. What are the franchisee and franchisor obligations? 12. What training is available and who pays for it? 13. Who owns the intellectual property and what is licensed to the franchisee? 14. What marketing will the franchisor implement? 15. Who pays for the marketing? 16. What is the dispute resolution process? 17. Do you know what it is like to be a franchisee? 18. Can you assign the franchised business? 19. How can the franchisor or franchisee terminate the Franchise Agreement? 20. What restrictions are there on the franchisee and guarantor operating a similar business? 1 : 2 0

PM [with thanks to Mason Sier Turnbull]

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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

www.franchise.net.au

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

Website: ViC: NSW: QlD:

Online directory

www.7elevenfranchise.com.au Peter O’Hara or Michael McNamara - 03 9550 0600 Shayne Howarth - 02 9798 1200 Brett Reading - 07 3291 9400

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: approx $400,000 + GST

Profile: 7-Eleven is a global success story with over 46,000 stores world wide. This year 7-Eleven will continue to grow, providing great opportunities for motivated, energetic and hardworking Franchisees to join this successful brand. As a 7-Eleven Franchisee you will enjoy the position of market leader in convenience retailing, backed by one of Australia’s most comprehensive support systems which provides a complete turn-key set up and no rental payments*. To learn more visit our website or contact one of our Franchise Development Managers. Australian Retailer of the Year 2011

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.

* expenses incorporated in the 7-Eleven charge

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

Start up costs from: $220,000 to $345,000

Start up costs from: $43,500 + GST

ProFilE: Anytime Fitness is one of Australia’s fastest growing franchise networks, with over 180 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 1800 clubs open worldwide, a proven track record and over 55% of our franchisee owning more than 1 club.

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.

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A-Z listings Phone: 07 5509 0023 Fax: 07 5564 8277 Contact: Deb Farnworth-Wood Email: deb@ozskin.com Website: www.ozskin.com

Phone: 1300 769 967 Fax: 1300 883 989 Contact: Luis Nevares Email: info@austvending.com Website: www.austvending.com

Start up costs from: $450,000 - $550,000

Start up costs from: $34,990 + GST

ProFilE: Australian Skin Clinics Express are at the leading edge of the growing cosmeticmedical industry. Franchises offer a selection of effective, highly sought after products and treatments, including laser hair removal, laser rejuvenation, cosmetic injectables, microdermabrasion and retail skincare. Australian Skin Clinics was founded in 1996 and has an established brand and reputation. Franchisees can expect above average returns on investment, thorough ongoing in-house training and development, high cash-flow and minimal day-to-day management requirements. Beauty therapists, cosmetic nurses and doctors and investors looking for higher than average returns on investment are ideal franchisee candidates for this proven franchise model.

PROFILE Specialising in establishing new vending machine rounds including locations, first fill of stock, delivery, training and product supply. The company operates nationally in Australia and New Zealand. Exclusive importation rights and over 14 years in the market makes them the leaders in the industry. Austvending provides you with a reliable cash flow business with below average workload. Markup on stock from 300% to 700%. Austvending gives you the opportunity to have a business and enjoy your desired lifestyle at the same time!

Phone: 1300 550 155 Fax: 03 8878 2222 Contact: Steven Woodward Email: franchising@autobarn.com.au Website: www.autobarn.com.au

Phone: 07 5532 7518 Fax: 07 5532 7517 Contact: Christian Coenen / Johannes Schoch Email: christian@bakersclub.com.au / johannes@bakersclub.com.au Website: www.bakersclub.com.au

Start up costs from: $700,000 to $800,000

Start up costs from: $250,000 - $350,000 ProFilE: Autobarn is now Australia’s largest franchised specialist auto accessories retail group, with 101 stores spread from Darwin to Hobart. Products range from spare parts and accessories to the latest in in-car entertainment systems, state-of-the-art car security systems, a wide selection of car cleaning and maintenance products, paint and body repair items and an evolving car performance range especially catering for the 4 & 6 cylinder market. Autobarn offers a complete vehicle audio installation service which ensures customers a high level of professional expertise. Many of Autobarn’s most successful franchisees have come from diverse backgrounds such as teaching, the public service & the financial service sector. The one thing they all have in common however, is good people skills.

ProFilE: Baker’s Club is the new generation of bakeries, eliminating the need for night work completely. We have combined a Bakery, Sandwich bar, Pie shop and Café all into one, and therefore we are enjoying the benefit of all of them. We have positioned ourselves into the health food market as well as the timeless baking business with the additional security of our multiple income streams of retail, dine-in and take-away. Using a unique innovative super food concept and more than 160 years of tradition, experience and quality, we give exceptional know-how and support to our franchisees.

Phone: 1300 309 759 Contact: Franchise Recruitment Team Email: franchise.recruitment@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: 30% or $150,000 whichever is highest. ProfilE: Bakers Delight, Australia’s most successful bakery franchise was established in 1980. An Australian owned company, Bakers Delight has 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.

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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 more than 6,700 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.

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A-Z listings Phone: 1300 131 664 Fax: 02 9450 2844 Contact: Diana Wilson - Franchise Manager Email: dwilson@bebrite.com.au Website: www.bebrite.com.au

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

Start up costs from: $17,150

Start up costs from: $350,000-$600,000

ProFilE: Bebrite presents an opportunity to enter into a Residential/Commercial and Carpet cleaning franchise at a low entry. With 17 years experience in the business, Bebrite provides the perfect business model for success. A Bebrite franchise suits couples or single operators with unique advantages, including generous guaranteed incomes, flat monthly fees (no royalty), no territory restrictions, high level of demand for service, prominent Internet presence and an opportunity for continued growth. Bebrite operates in NSW, ACT and Qld. By providing a high quality service, Bebrite franchisees enjoy a loyal and stable customer base. Three (3) unique websites, continued support, sophisticated marketing and efficient business systems assist franchisees to achieve success.

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

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.

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.

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

Phone: 0409 161 516 Contact: Neil Soares Email: franchise@chickentreat.com.au Website: www.chickentreat.com.au Start up costs from: $250,000-$350,000

Start up costs from: $129,600 + GST ProFilE: Australian owned Cafe2U is the world’s largest mobile coffee company, with over 125 franchises in Australia and 190 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.

ProfilE: Chicken Treat is a proud Australian owned and operated Company that has built an enviable reputation over more than 30 years. Home to Two flavours of Chicken our network is continually growing and currently has close to 100 stores across Western Australia, Queensland and Tasmania. With the substantial backing of the Quick Service Restaurant Holding (QSRH) Group behind the brand, Chicken Treat enjoys significant buying power in products, marketing systems and advertising reach. If you can see yourself as a passionate business owner, enjoying the enviable reputation of being your local community hero, please contact Neil Soares, our Brand Franchise Manager for an obligation free chat.

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A-Z listings Phone: 1300 131 664 Fax: 02 9450 2844 Contact: Diana Wilson - Franchise Manager Email: dwilson@bebrite.com.au Website: www.bebrite.com.au

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

Start up costs from: $17,150

Start up costs from: $350,000-$600,000

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

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

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

Phone: 0409 161 516 Contact: Neil Soares Email: franchise@chickentreat.com.au Website: www.chickentreat.com.au Start up costs from: $250,000-$350,000

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A-Z listings Phone: 1300 094 764 Contact: Tony Melhem Email: franchise@cococubano.com Website: www.cococubano.com

Phone: 1300 139 557 Fax: 03 9876 6612 Contact: Grant Garraway Email: grant@thefranchiseshop.com.au Website: www.crocsplaycentre.com.au

Start up costs from: $295,000 - $550,000

ProfilE: Coco Cubano has been inspired by the romance and rustic charm of Cuba as well as the friendly, sophisticated style of the European café bar experience. We have blended these inspirations to bring a unique, multi-location café bar destination to Australia. Coco Cubano offers customers delicious handpicked espresso coffee, tasty tapas, decadent chocolate drinks and delicious meals at all peak trading times from morning to night. With a strong business model and a management team with years of experience in franchising, business and hospitality, Coco Cubano is a strong coffee franchise offering. Limited AAA grade sites available.

PROFILE: Croc’s Playcentre has become the brand leader of children indoor play Melbourne and are looking to replicate this expansion success across Australia. Lawrence Cusdin director of Croc’s said “We have spent the last four years developing the brand here in Melbourne”. Croc’s was created as a result of research that had identified a gap in the market for a “much better than average” children’s indoor activity centre. At Croc’s it is not only the children who are catered for we make sure that the parents also have a great time with us. Initial fees, training and your legal costs will be around $60,000 and your investment in equipment and fit out can be up to $380,000 subject to the conditions of your site.

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: • Franchise program, system & network development • International expansion • Online strategy • Performance & profit improvement • Legal advice • Disclosure documents & franchise agreements • Trademarks & intellectual property • Business & franchise sale agreements • Property leasing • Dispute resolution

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.

If you are serious about developing a valuable franchise network, or want to buy or 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

• Unparalleled 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.

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

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

Start up costs from: $32,500

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.

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.’ 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. • Great lifestyle • Large exclusive territories • Trusted brand • Full training and ongoing local support • Low entry cost and low fees

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

Phone: 0407 646 179 Contact: Nicholas Bernhardt Email: info@greenbizcheck.com Website: www.greenbizcheck.com Start up costs from: $38,500 inclusive

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

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. 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.

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.

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

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

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

The Hairhouse Warehouse concept was first developed in 1992 at Knox City Shopping Centre, Melbourne.

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.

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.

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.

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.

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.

ProFilE: 2011 FCA Winner – Established Franchisor of the Year.

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

Phone: 0429 39 69 39 Contact: Errol McClellamd Email: errol@htiwater.com.au Website: htiwater.com.au Start up costs from: $150,000+

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.

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ProfilE: Forward Osmosis Water Filtration - Sensational New Product Unique In The Market! “Personal hydration” market opportunities exist with the military, marine, both commercial and recreational, 4-wheel driving, caravanning, bushwalking, mining, occupational health and safety, disaster relief, and more. The HTI water system has and can be utilized from NASA space trials to the family wagon, as part of an emergency survival kit. Travellers going to remote or third world locations where potable water is unreliable at best! The market potential for “HTI water” products is huge and diverse.

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A-Z listings Phone: (03) 8631 7710 Fax: (03) 8631 7799 Contact: Carly Parkinson Email: franchise@hudsonscoffee.com.au Website: www.hudsonscoffee.com.au

Phone: 1800 465 786 Fax: 02 9987 0004 Contact: Anthony Davis Email: anthony@inkontherun.com.au Website: www.inkontherun.com.au

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

Start up costs from: $44,000

ProFilE: At Hudsons Coffee, we’re as passionate about your success as we are about our coffee! We want to do business with dedicated, hard working, like minded people who recognise that they would like to go into business for themselves but not by themselves. We seek to build strong relationships with our Franchisees. We understand that you as a Franchisee are an individual, with your own business aspirations, and we recognise that it is our duty to provide ongoing support to assist you in achieving success. Do business with us and we can offer you the experience and customer base of an established brand, the security of being backed by the high profile Emirates Group, a six week Franchisee Training Program along with the ongoing support of a dedicated Business Consultant.

ProFilE: lnk on the Run is Australia’s premium mobile supply and refill service catering to the growing market of lnks, laser and copier toner cartridges to both homes and businesses. More and more we hear of consumers frustrations with the costs associated to run the printer at work and/or home. lnk on the Run offers not only competitive pricing on branded product but a green and more cost effective alternative of refilling. Opportunities are available throughout Australia with no technical expertise required as full training and standing systems ensure you will have the foundations for a successful business.

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

Start-up costs from $15,000 ex GST

Start up costs from: $99 per month

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!”

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

Start up costs from: $45,000 Start up costs from: $28,000 to $40,000 Depending on the Region and Territory

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.

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

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

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

Start up costs from: $25,700 + GST

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.

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.

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.

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.

ProFilE: Don’t just buy yourself a Job!

Phone: 1300 KOALAKRANE Contact: Rick Garrity Email: rick@koalakrane.com.au Website: www.koalakranefranchise.com.au

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

Start up costs from: $40,000 - $110,000

Start up costs from: $210,000 ProfilE: Koalakrane franchisees own and operate amusement crane machines in locations such as supermarkets, pubs, clubs and malls. We are the experts at running these machines successfully and profitably and have over 100 owner operators in Australia and New Zealand. Our business is easy and fun to operate. Koalakranes appeal to people of all ages and provide a very lucrative return. Our machines are stocked with licensed prizes – including the biggest and best sporting brands in Australia. We provide full and ongoing support while our franchisees enjoy the synergy that comes with being part of Australasia’s largest amusement crane group.

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. Kwik Kopy is a B2B print and design provider, focussing on the small to medium business market. 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. The benefits of becoming a Kwik Kopy franchisee include: * Award winning franchise model * Regular working hours Mon-Fri * Strong brand and on-going marketing solutions * 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 Start up costs from: $79,900 ProFilE: We provide our licensees industry leading resources, systems and processes… proven sales & marketing systems and the ability to provide clients nationally recognized certificates & diplomas under our Registered Training Organisation (AUS) & Private Training Establishment (NZ) status. Our license system offers a high margin B2B opportunity and the benefits of a 5 day per week lifestyle under the umbrella of National and Global support structures. The market for people development is worth over 2.6 Billion dollars and growing. All businesses recognize the need to develop their people and LMA’s unique development process continues to provide exceptional solutions that meet current and future demands.

Phone: 1300 565 597 Contact: Holly Beck Email: franchise@lollypotz.com.au Website: www.lollypotz.com.au

ProfilE: Lollypotz franchise owners make and deliver beautiful chocolate bouquets in their large exclusive territory. They even make money if a customer from within their territory orders a bouquet anywhere else in Australia. We have a well developed system, website and National Support Office to support you and all Lollypotz franchise owners receive excellent training, induction and ongoing support. Franchise owners can choose whether to operate from a home office undertaking casual mall leasing at peak period or take the traditional shopfront if they prefer.

Limited opportunities are available across Australia and New Zealand.

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A-Z listings Phone: (02) 9542 2000 Fax: (02) 9542 2100 Contact: Drew Arthur Email: sales@micronet.com.au Website: www.micronet.com.au

Phone: 1300 664 908 Fax: 1300 667 809 Contact: Michael Walker Email: admin@mia.edu.au Website: www.mia.edu.au Start up costs from: $22,000

ProFilE: The Management Institute of Australia is a Nationally Registered Training Organisation. We have Developed a Training industry opportunity for talented individuals to leverage their skills and to achieve greater returns for their training skills. Become part of a proven business model and gain access to the current scope of over 60 Qualifications! As an industry leader you can build your business NOW! We take care of the compliance issues and tendering so you can get on with running your business and looking after your clients. Become a franchisee and get access to the KNOWLEDGE and EXPERTISE of a PROVEN BUSINESS MODEL and more importantly you can GET STARTED TODAY!

PROFILE: Micronet Systems is a leading provider of business software solutions to growing franchise groups. Since the introduction of our first generation product in 1983, over 2000 companies have implemented the Micronet software in a diverse range of industries. Our tailored franchise solution assists franchise groups to grow, manage and improve their business processes while removing the everyday burden to IT. The Micronet franchise solution is specifically configured to suit the unique business processes and industry requirements of today’s franchise operations. Delivering greater business control and improved profitability, the Micronet solution gives franchise groups greater market differentiation and competitive advantage.

Phone: 1300 677 074 Fax: 02 9588 4015 Contact: Theo St. James Email: theo@metroshred.com.au Website: www.metroshed.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: $30,000

ProFilE: Metropolitan Shredding Services offers franchise owners a unique business opportunity in the fast growing document destruction and paper recycling industry. The business system supports a great lifestyle with a five day working week and a solid immediate cash flow from existing clientele. A great first time business opportunity with low entry cost and low overheads. Only a limited number of territories available in which you can create your own delivery and pick up routes.

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.

Phone: 1800 NANOTEK (1800 626 683) Contact: Franchise Recruitment Manager Website: www.nanotekcarcleaning.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: $45,000 + Car Lease 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!.

ProFilE: NFIB meets the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses. 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.

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.

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A-Z listings 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!

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 restaurant franchise, specialising in casual dining and premium quality steaks. With the largest range of steaks on a menu anywhere in the world our concept provides wide market appeal. With proven systems Outback Jacks has grown to 28 successful stores in prime location throughout Australia. We believe in hands-on, motivated franchisees with a true desire to grow the brand through exceptional business habits and a passion for great food and customer service.

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.

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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.

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

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

Start up costs from: $229,000 inc equipment

Start up costs from: $80,000 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. 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. 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…

ProFilE: The only true 24Hour Gym Turn Key Franchise on the market, Plus Fitness 24/7 capitalises on strong supplier relationships developed over 15yrs in the Fitness Industry. 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 proven operating systems, unrivalled franchisee training and ongoing 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. With 24 gyms open or scheduled to open by end 2011 and a further 21 territories sold, Plus Fitness has a clear goal of establishing over 75 gyms by end 2012.

Phone: 1800 245 447 Fax: (07) 3217 8900 Contact: Dean Atkins Email: joinourteam@poolwerx.com Website: www.poolwerx.com

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

Start up costs from: $93,950 plus van

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.

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.

Phone: +1 94 9419 7429 Fax: +1 94 9625 8880 Contact: Robert Shaw Email: r.shaw@rightathome.net Website: www.rahglobal.com

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.

Start up costs from: $575,000+ ProFilE: The home aged care business in Australia will grow dramatically during the next 15 years as seniors aged 65 + will comprise nearly 20% of the population. Right at Home® is an innovative multinational leader of in-home aged care services offering exclusive national development rights for Australia. The Right at Home business model and franchise system offer a compelling opportunity for our Master Franchisees to capitalize on a large scale on the fastgrowing demand for well managed, in-home care for seniors. These individuals do not currently need or want to live in a nursing home, but do want assistance with everyday living activities at home, and to stay at home as long as possible. This contributes to their enjoyment and quality of life – the most valued attributes of senior lifestyles by the elderly and their families alike.

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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: 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

ProfilE: Joining Salsa’s Fresh Mex Grill makes you part of the largest fresh Mexican food franchise in Australia. With 29 locations in just 4 years, it’s the brand that’s cooking up fast, delicious Mexican food people can’t get enough off. 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! With the same proven growth platform, systems and structures that saw Boost Juices’ meteoritic rise to over 185 locations across Australia and now in 16 countries around the world, you can invest in a Salsa’s Fresh Mex Grill franchise with confidence.

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

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

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

Start up costs from: $200,000 ProFilE: SIGNARAMA is the world’s leading sign and graphics franchise, with 850 locations worldwide in over 50 countries. With close to 90 locations nationally, we are the dominant sign franchise in Australia.

ProFilE:

We sell a product that every business needs and uses every day, and our franchisees will continue to see outstanding growth. We have pioneered the ‘bricks and clicks’ strategy in the sign industry, and no sign company can match our E-Commerce and physical presence.

• Purchase the equipment and enjoy a 75% rental rebate • Return equipment if you don’t need it anymore • Keep renting and we will continue to reduce the purchase price • Upgrade if you decide your franchise has outgrown the original equipment

As a B2B franchise, we offer Mon-Fri trading, low staff, low inventory and quality of life. Every product is custom-made so margins are high! No previous experience is required – join SIGNARAMA, your local sign experts.

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 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:

Silver Chef Limited is a public company listed on the Australian Stock Exchange.

Phone: 07 3331 1400 / 0435 841 811 Contact: Catherine McGill Email: cmcgill@snapfitness.com.au Website: www.snapfitness.com.au

Phone: 07 5478 4014 Fax: 07 5477 7133 Contact: Leigh Wallis Email: leigh.wallis@smith-sons.com Website: www.smith-sons.com.au

Start up costs from: $450k - 550k inc. equipment ProFilE: Smith and Sons are professional renovation builders who provide high quality renovations from concept to completion. 2008 saw the conception of Smith & Sons Renovations & Extensions, with directors Corey Passey, Darren Wallis and Greg Gardner at the helm. The first Smith & Sons office opened in Maroochydore, Queensland in March of that year, and within 36 months, there were 40 offices open across Australia and New Zealand. The Smith & Sons teams quickly became known for their professional, holistic approach to renovating, and with a company culture of excellence, team spirit, hard work and enjoying life, Smith & Sons has raced to the front of the renovation industry, forging successful and long lasting business and client relationships. The next few years look to be a great ride for all involved with the Smith & Sons team.

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ProfilE: In today’s uncertain economy, professionals and small investors from all walks of life are saying “enough!” and partnering with Snap Fitness, the fastest-growing franchisor of compact, state-of-the art, 24/7 fitness centers in the world. Discover the freedom, flexibility and fulfillment that comes with owning the leading alternative to traditional “big box” health clubs; and a value-driven concept that’s right for the times. Easy to own *Affordable Investment *Financing Investments available Easy to manage *complete Turnkey operation

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Easy to market *Ready to go - proven sales and marketing support

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A-Z listings Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Nick Hudson Email: nicholas.hudson@snapon.com Website: www.snaopontools.com.au

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

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

Start up costs from: $450,000

ProFilE: Snap-on Tools is the global leader in developing and manufacturing innovative tools and equipment predominantly for the automotive industry. Franchisees operate from a custom built mobile store that takes the in-demand product direct to the customer’s workplace. Extensive training and ongoing support is provided – no previous mechanical experience required.

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.

Operating in Australia for over 21 years, Snap-on Tools is one of the longest running and most successful global franchises, with a proven and profitable business model and was named Best Value Franchise System by Smart Investor Magazine. Today Snap-on Tools is seeking to expand its franchisee base in Australia, offering an exclusive finance package to support the transition of suitable candidates into their own successful business.

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.

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Phone: 07 5577 8166 Fax: 07 5577 8266 Contact: Max Collins Email: max@socialmediabusinessboosters.com . Website: p d f www.socialmediabusinessboosters.com Pa ge 1 3 9 1 8 / 0

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Start up costs from: $15,000 - $35,000 ProFilE: Social Media Business Boosters is a world first social media marketing franchise offering low market entry, rapid return on investment, minimal overheads and the ability to grow your franchise from home. This unique franchise originated in Australia and is expanding rapidly in local and overseas markets. There is huge need for professional social media marketing expertise in the current market and Social Media Business Boosters fulfils this need by thoroughly training all franchisees in Social Media Marketing techniques. Take advantage of biggest shift since the industrial revolution the social media industry call today.

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

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.

A-Z listings

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

Phone:1300 1300769 769967 967 Phone: Fax:1300 1300883 883989 989 Fax: Contact:Luis LuisNevares Nevares Contact: Email:info@staycleanhands.com info@staycleanhands.com Email: Website:www.staycleanhands.com www.staycleanhands.com Website:

Phone: 1800 011 827 Phone: 1800 788 335 Contact: Elizabeth Contact: John Newton Email: strategiclifestylesolutions@gmail.com Email: franchisesales@stufflers.com Website: www.stufflers.com Start up costs: $2,000, $10,000, $20,000

Start up costs $9,990 + GST Franchises from:from: $80,000 + GST

Start up costs from: $45,000

ProFilE: Stayclean Hands is a franchise system that specializes in the business to business supply of hand sanitizing solutions through service contracts in clearly defined PROFILE areas. Service contracts provide a guaranteed monthlysolutions income to Licensor for the distribution rights of hand sanitising forfranchisees businesses. and the franchise offers attractive returns on investment every year. The Stayclean Hands system provides business to business distribution opportunities of its battery-operated dispensers offer the latest in environmental design and touch-free touch-free hand sanitiser dispensers through exclusive areas in Australia and technology, measuring the exact amount of solution into the hands of each user. New Zealand. With a modern look and silver finish, they are an essential component to every healthconscious business owner. Franchisees are supported through marketing activities, lead generation, centralised invoicing and all systems and processes; however, it is their responsibility to sign service contracts in their exclusive areas. Franchisees must be extroverted operators who are comfortable delivering presentations and increasing clientele in their territory or be able to hire a dedicated salesperson.

PROFILE: ProfilE: Strategic Lifestyle Solutionshas is abeen member of one of fastest global This exciting new franchise franchising in the Australia forgrowing just over a year. organisations the industry. Building on theinsuccessful growth of shopping centre bear making stores, Stufflers somemaking peoplestuffed think about prosperity, they may about a large sum of isWhen all about animals at kids’ parties andthink events using the Stufflers money,mobile or maybe a lavish lifestyle. Others may not think about it all because they unique machine system. believe prosperity is something only other people have. With clothes, hearts and special carry carts - Stufflers is the next party By utilizing the resources we provide, it is now possible to completely eliminate phenomenon. The franchise is best suited to a stay at home mum that has 2 days debt, dramatically increase cash-flow, build greater self-awareness and begin living available midweek to work on our unique local marketing programs. the lifestyle you deserve. As part of your $45,000 franchise fee, you will receive 8 mobile Fluffenstuff machines that step are custom Stufflers. Take the next and callbuilt nowby1800 011 827 Our opening launch price of $45,000 is substantially lower than the $500,000 needed to open a retail store.

Phone: 07 3221 0211 WWW.FRANCHISE.NET.AU Fax: 07 3221 0822 Contact: John Watt Email: john.watt@supanews.com.au Website: www.supanews.com.au Start up costs from: $300,000

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Phone: 02 9898 8666 Fax: 02 9898 3089 Contact: Bonny Email: enquiries@swimart.com.au Website: www.swimartfranchise.com.au

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A-Z listings Phone: Toll Free Australia 1800 630 355 NZ 0800 444 618 fax: 07 3852 4081 Contact: Franchise Administrator email: ssa@subway.com Website: www.subway.com Start up costs: 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. Please refer to www.subway.com for latest restaurant and country counts.

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 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!

Phone: 13 GEEK (13 4335) Fax: 07 3209 6550 Contact: Mick Davey Email: franchise@supergeek.com.au Website: www.supergeek.com.au/franchises

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

Start up costs from: $39,000

Start up costs from: $99,000

ProFilE: Business is all about relationships. SuperGeek franchisees care about providing dependable support to their extensive client base, creating a reliable income stream for themselves with our highly developed, easy to operate and fun business model. The company is driven and focused to provide a solid stream of convenient support solutions to home computer users and the SME sector.

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.

To ensure a sustainable and fast paced business growth, our new franchise owners are supplied with a comprehensive start-up and support package. Including active help in setting up business, on the job training at commencement and practical guidance from their own completely independent and experienced business coach.

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos Email: franchise@cheesecake.com.au Website: www.cheesecake.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: $300,000 - $400,000 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

ProFilE: Take your passion for baking out of the kitchen and into the local community with an Australian icon, The Cheesecake Shop. Trading since 1991 and with operations in 4 countries and almost 200 stores across Australasia, the Cheesecake Shop is one of Australia’s franchising success stories. With a great system to guide you, recognized two times by the Franchise Council of Australia as Australia’s best franchisor, The Cheesecake Shop is perfect for the first time business owner.

We want Partners who are: • Passionate ,Crazy , innovative leaders • Have a passion to succeed.

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A-Z listings the chocolate room

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 7627) Contact: Rob Watkin Email: rob.watkin@topsnap.com Website: www.topsnap.com Start up costs from: $39,000 + 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 property photography and marketing tools. In recognition of this outstanding growth, Top Snap was recently ranked 17th in the 2011 SmartCompany awards, which recognise and celebrate Australia’s fastestgrowing SMEs.

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

Phone: 03 9394 4300 or 0438 214 314 Contact: Neville Bruns Email: newstores@totaltools.com.au Website: www.totaltools.com.au

ProfilE: Total Tools specialises in trade and industrial tools carrying an extensive range of the worlds leading brands. Total Tools also has its own private brands including TTI, Mastercraft Value, Detroit, Guardall, Iron Air, Hornet & HRD. The Total Tools brand promise is to have the broadest range of tools available on the market. This, backed by the unrivalled retailing standards in the tool industry and experienced staff offering professional advice and service, has firmly established Total Tools as the market leader in professional tools for the people who use tools for a living. There are currently 32 stores forming the Total Tools group with representation in Victoria, New South Wales, South Australia & Queensland, with more stores planned nationally.

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

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A-Z listings Phone: 1300 139 913 Fax: 1300 133 338 Contact: Darren Farrell Email: dfarrell@trusonic.com.au Website: www.trusonic.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: $200,000-$350,000 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!

Profile: Trusonic is a full service music provider and audio marketing specialist. 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 To get Trusonic music working for you, call Darren Farrell on 1300 139 913.

Phone: 03 9413 1594 or 0488 223 022 Fax: 03 9413 1401 Contact: Russell Desa Email: russell.desa@unitedpetroleum.com.au Website: www.unitedpetroleum.com.au/ franchising/welcome Start up costs from: $400,000 upwards 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. 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

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!

Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au

Phone: 1800 766 170 Fax: 07 3105 5901 Contact: Customer Relations Email: sales@weeklymedia.com.au Website: www.weeklymedia.com.au

Start up costs from: $25,000

Start up costs from: $28,826

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: • Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning 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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ProFilE: Weekly Media have discovered a new and improved way to feed your appetite using a full range of top selling Australian magazine titles along with International publications, and all it takes is the single push of a button. The new magazine media station is packed with Australia’s most popular lifestyle titles and is attracting a generous dollar through combining convenience with on-the-move retail solutions. The concept is simple, the start-up is supported, the potential is endless and the opportunity is yours. The magazine media stations will be popping up at a corner near you, the question is whether you’ll be the one who’s reaping the rewards.

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A-Z listings Phone: 03 9612 7297 fax: 03 9629 4035 Contact: Robert Toth email: robert.toth@wisemah.com.au Website: www.wisewouldmahony.com.au

Phone: 02 8394 7800 Fax: 02 8394 7801 Contact: Athol Ritchie Email: franchising@worldwide.com.au Website: www.worldwide.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

Start up costs from: $150,000 ex GST (excludes 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

Phone: 1300 YOGABUGS Contact: Rob Connelly Email: rob@yogabugs.com.au Website: www.yogabugs.com.au Start up costs from: $20,000

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!

ProfilE: YogaBugs is imaginative, interactive and fun for children aged 2 to 12 years, postures, breathing and relaxation techniques are woven together into fun stories and games. Being non-competitive & fully inclusive, children are always the heroes of their YogaBugs adventures.

This pent up demand for gourmet coffee in the workplace is very poorly met.

Breathing improves concentration and energy levels & promotes healthy sleeping patterns. Postures strengthen the core stabilising muscles & assists in reducing childhood obesity. Relaxation aids in better memory retention, whilst calming symptoms of anxiety and nervousness.

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.

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Companies in this issue 7-Eleven 77* 10 Thousand Feet 167* Amazing Clean 34* Anytime Fitness 15* Applied Marketing Science 68 Appliance Tagging Services 159* Australian Skin Clinics 136 Austvending 38* Autobarn 155* Baker’s Club 157* Bakers Delight 188* Baskin-Robbins 154* Bebrite 106 Bedshed 114* Brian Tracy 45* Burrito Bar 57* Cafe2U 39* Caltex 160* Chicken Treat 53* Coco Cubano 13* Contours 29* Croc’s Playcentre & Care 83 DC Strategy 140-141* Diversified Exhibitions 54* Domino’s Pizza 27 Fastway Couriers 187* FC Business Solutions 97 Financial Planning Association 148 Franchise Council of Australia 142 Franchise Legal 6 Franchise Selection 128-129* Gloria Jean’s Coffees 23* Greenbizcheck 55*

Grey Army 137 GroutPro 109 Hairhouse Warehouse 21* Healthy Habits 63 Howards Storage World 11* Hudsons Coffee 35* Ink on the Run 24 Jani King 44, 89* Jem Promotional Products 146 Jim’s Pergolas 17 Jumping J-Jays 4* Just Cuts 62* Keen to Clean 145* Koala Krane 37* Kwik Kopy 143* Leadership Management Australasia 2* Light my Fire Australia 59 Lollypotz 41* Management Institute of Australia 67* Messagecom 118 Mason Sier Turnbull 25* Metropolitan Shredding 132 Micronet 14* Nanotek by Ecowash 80-81* National Franchise Insurance Brokers 135 Oporto 79* Orange Leaf 115 OrderMate 153 Outback Jacks Bar & Grill 19* Ovenu 51* Ozetel 121

Franchising Advertising enquiries

INCORPORATING FCA NEWS

FRANCHISE COUNCIL OF AUSTRALIA

* indicates FCA member

Plus Fitness 24/7 33* Pricewaterhouse Coopers Australia 85* RBI 150, 164, 168* Redcat 147 Right at Home 61 Salsa’s Fresh Mex Grill 69* Signarama 74-75, 126-127* Silver Chef 96, 139* Smith & Sons 134 Snap-on Tools 9, 91* Social Media Business Boosters 65* Solutions Franchising 12 Snap Fitness 120 Snooze 105* Subway 71* Sumo Salad 107* Supergeek 112* Telechoice 116-117* The Cheesecake Shop 99, 123* The Franchise Shop 48-49* The Leather & Vinyl Doctor 133* The Touch up Guys 111* Top Snap 66* Total Tools 101* United Petroleum 70* Vanity Bar 73 VIP Australia 40* Weekly Media 125 Wisewould Mahoney 47* Worldwide Online Printing 31* Xpresso Delight 131* Yogabugs 28

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 186| FRANCHISING SEP/OCT 2012

WWW.FRANCHISE.NET.AU

AD_FRFASSEP_12.pdf

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Take control of your future Run your own business Fastway Couriers has a number of exciting franchise opportunities available! • Low start up costs

• Exclusive territories

• Guaranteed income package*

• No weekend work

• Perpetual Franchise Agreement

• Unparalleled business support & training

• Recognised brand

• Easy to operate - no experience required

• Award winning system for over 25 years

• 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.

AD_FRBAKSEP_12.pdf

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6:10

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