Franchising March April 2016

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FRANCHISING

Franchising YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE | WWW.FRANCHISEBUSINESS.COM.AU MAR/APR 2016 VOL.29/NO.2

MAR/APR 2016

DELIVERING MORE THAN

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PR I N T P O S T A PPR OV E D 10 0 0 0 8121

WWW.FRANCHISEBUSINESS.COM.AU

BUSINESS SERVICES, HANDYMAN MARKET, HAIRDRESSING

10 QUESTIONS: WHAT TO ASK YOUR FRANCHISOR P.27

DO YOU HAVE A FRANCHISEE MINDSET? P.110

EMPIRE BUILDING: TIPS ON MULTIUNIT OWNERSHIP P.36

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CONTENTS

COV E R STORY

12 TOP 10 CONSUMER TRENDS

60 HOW TO PICK RIGHT WHEN

16 ON THE HOME STRETCH

True love is a marathon, and a solid franchise relationship is no different It’s a balancing act of emotional appeal and practical thinking

How are shoppers choosing to spend their money this year and why?

BUYING A FRANCHISE

Could a home loans franchise be your next business opportunity?

22

WHAT IS THE FRANCHISING CODE OF CONDUCT? If you want to buy a franchise, you need to know the rules for you and your franchisor

30 KEEPING THE FAITH

We look at due diligence between franchisors and franchisees

64

ARE YOU READY TO INVEST IN A PIZZA FRANCHISE?

36 EMPIRE BUILDING Here are the franchising

benefits

of

multi-unit

Trends in the hairdressing industry for 2016

42

TOP TIPS FOR NEGOTIATING YOUR RETAIL LEASE Every element of a retail lease is negotiable

46

THE NUMBER ONE KILLER FOR SMALL BUSINESS Cash flow is the number one killer of small businesses, according to the latest HISI by Silver Chef

The tale of the Leather Doctor franchise chain

100 UNLOCKING THE KEY

THE SKETCH

CHECKLIST LISTINGS ADVERTISERS INDEX

TO THE HANDYMAN VAN

The handyman business has been on the rise as time poor consumers rely on the franchises for odd jobs around the house.

98 DOCTOR IN THE HOUSE

LEGALESE

GLOSSARY

86 FROM THE BOARDROOM

OF SYDNEY’S FRANCHISES

INSIGHTS

DIRECTORY

Outsourcing has been a major aspect of the B2B sector

The Sydney Franchising and Business Opportunities Expo can help turn your dreams into reality. Check out our preview

WELCOME

LEADERSHIP

79 SOURCING THE B2B BUSINESS

90 EXHIBITING THE BEST

REGULARS

5 6 106 108 110 112 113 114 115 122

73 COLOURING THE FUTURE

TO FRANCHISEE SUCCESS

52 10 REASONS WHY

We chat with Brent Giblin, the proud 2015 winner of the FCA Franchisee of the Yearsingle unit

FRANCHISEES FAIL

Jason Gehrke looks at the top 10 list of causes of franchisee failure

56 WHAT ARE THE RISKS BEING A FRANCHISEE?

102 UP CLOSE & PERSONAL

Q&A with the new Anytime Fitness CEO

OF

There are a number of risks in buying a franchise which must not be ignored MAR/APR 2016 | 3 | WWW.FRANCHISEBUSINESS.COM.AU

104 FAST TRACK TO SUCCESS

The latest development in the Fastway Couriers story

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( WELCOME )

I

f you’ve picked up a copy of Franchising magazine because you’re serious about becoming your own boss, then you have taken the first step towards investing in your future.

It’s a bold move to buy a franchise but one that can take you to a new level of financial success, allow you to achieve your goals and put you in the driving seat as you head towards your destiny.

popular categories (particularly food and coffee) but what’s most important when choosing a business is finding a franchise that suits your skills and interests, something about which you can be passionate.

As you will discover in this issue, the premise of franchising is quite simple (turn to page 20 to find out more) but there are nuances and technicalities to the franchise set-up that can be both challenging and satisfying.

This magazine is just a taster of the breadth and depth of the franchising sector. Our website www.franchisebusiness.com.au has a comprehensive directory of franchise brands and locations for sale, a listing of advisors in the sector, and of course plenty of pertinent expert advice and news.

And there is no other method of going into business that gives you such a hand-up: the support the franchisor’s team can provide is unrivalled – from initial training to opening day support, an operations manual, ongoing business development, and of course the camaraderie and mentoring of other franchisees in the same network.

You will also notice as you read through this publication the diversity of opportunities that are available. Of course there are

Take a look at the site, and sign-up to our digital newsletter to get the latest events and opportunities brought to your inbox.

In March, the first of the Franchising & Business Opportunities Expos for 2016 takes place in Sydney. We preview the event on page 90. Come along and say hello to the Franchising team (we will be next to the Franchise Council of Australia under the Franchise Business banner), we’d love to meet you.

EDITOR Sarah Stowe P: 02 8484 0900 sarah.stowe@cirrusmedia.com.au

BUSINESS DEVELOPMENT MANAGER Jesse Hopwood P: 02 8007 3113 jesse.hopwood@cirrusmedia.com.au

JOURNALIST Noha Shaheed P: 02 8484 0740 noha.shaheed@cirrusmedia.com.au

CLIENT SUCCESS MANAGER Kim Church P: 02 8484 0963 kim.church@cirrusmedia.com.au

ART DIRECTOR Julia Gee P: 02 8484 0708 julia.gee@cirrusmedia.com.au

HEAD OF CLIENT SUCCESS Sheree Bryant P: 02 8484 0973 sheree.bryant@cirrusmedia.com.au

GRAPHIC DESIGN Justine Dunn David Ashley

PRODUCTION CO-ORDINATOR Tracy Engle

NATIONAL SALES AND MARKETING MANAGER David Strong P: 02 8484 0905 david.strong@cirrusmedia.com.au

SARAH STOWE EDITOR

It’s a bold move to buy a franchise but one that can take you to a new level of financial success and allow you to achieve your goals

For subscription enquiries call customer service: 1300 360 126 ISSN: 1321-408X

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ALL FRANCHISING MATERIAL IS COPYRIGHT. REPRODUCTION IN WHOLE OR IN PART IS NOT ALLOWED WITHOUT WRITTEN PERMISSION FROM THE EDITOR. OPINIONS EXPRESSED IN FRANCHISING ARE NOT NECESSARILY THOSE OF FRANCHISING OR CIRRUS MEDIA. © COPYRIGHT CIRRUS MEDIA, 2016

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INSIGHTS

SOCIAL MEDIA TRENDS TOP STORIES: CASUAL DINING Casual dining has come up top this month on our social media channels. We look at trending topics on Facebook and LinkedIn: LINKEDIN

The top two brands trending on LinkedIn were Coco Cubano and Mad Mex’s new dining concept. Users are curious about the opportunities and developments as food franchises remain a popular topic.

FACEBOOK

Casual dining is a cause for a click on Facebook too, with the Australian expansion plans of Carl’s Jr. reaching the top engagement. Tied with the infamous American burger franchise was the Oporto’s real person story of 22-year-old franchisee Akanksha Taneja, which also saw increased interactions.

Schnitz has a big appetite for growth

TOP VIDEO Have you seen any of our quirky infographics this month? Our highest performing video was ‘How does franchising work?’ which includes guidelines about how franchises are made up, and how they function.

Check our Youtube channel Fra nc h i s eBu si ne s s.com.au to view them!

For all schnitzaholics out there, we’ve got some news that will tickle your tastebuds. Melbournebased go to for hand-made, pan cooked schnitzels has some solid expansion plans this year. We spoke to Schnitz chief executive Andrew Dyduk about the chain’s national roll out plans.

itive, Schnitz has tapped into a market niche by offering unique flavours of rolls and wraps which also cater for various dietary requirements. The menu offers meat and vegetarian menu choices, not to mention gourmet salad options for the health conscious.

Schnitz had an eventful year in 2015, with 17 new restaurants opening up across Victoria, New South Wales, the ACT, and Queensland, eight of these outlets being franchised. But Schnitz is not stopping there. The brand has big plans to bite into more states and territories across the country.

“These fresh, made to order products, together with our hugely popular chips, have been a big part of our success,” says Dyduk.

“In 2015 we invested a lot of time and money developing our corporate infrastructure to allow for sustainable growth in the coming years,” explains Dyduk.

Although the fast food business is highly compet-

“In our research, there isn’t an Aussie market that doesn’t love a schnitty and when they try our hand-made, pan-cooked schnitzels they’ll have a new appreciation for what quality tastes like,” says Dyduk.

Schnitz is looking to expand into more metropolitan cities and regional towns in Victoria, New South Wales, and Queensland, with a goal of introducing the brand to a wider customer base.

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INSIGHTS

UFC Gym franchise to expand in Australia The executive vice president of Australia, Tom Wright, said “The UFC Gym flagship location in Sydney has performed extremely well since it opened and we believe this partnership will unlock additional growth paralleled with the continued evolution of UFC’s brand.”

If you’re looking for something more than a traditional gym, the news that UFC Gym is expanding its franchise across Australia might spark your interest.

UFC Gym is the first major brand extension of UFC, the world leader in the sport of mixed martial arts with events such as the recent high profile UFC 193: Rousey vs Holm fight.

The US based chain of gyms combines mixed martial arts (MMA) with fitness.

The business began in 2009, and now has more than 135 sites in the US, Canada and Australia, including 11 flagship, usually corporate-owned, clubs.

What’s on offer for gym members is a range of fitness classes that includes group and private MMA training, performance-based training, kickboxing, Brazilian jiu-jitsu, women’s self-defence as well as youth programs for MMA. Ultimate Franchising Group CEO Maz Hagemrad said the gym’s programs with a ‘Train Different’ ethos promote “focus, respect, integrity and discipline, in addition to strong physical health.

“The opportunity to be involved with the UFC GYM brand in Australia is unprecedented for prospective franchisees,” he added.

Fifty new gyms are expected to open globally this year.

“Our strategic focus for 2016 is to have three new locations open with a further three in development. We will be focusing on at least one location in Brisbane and Melbourne and a second in Sydney,” said Hagemrad.

UFC Gym CEO Brent Leffel said “It’s exciting to partner with the Ultimate Franchising Group as they embark on an aggressive plan of expansion for UFC Gym in Australia.”

The franchised boutique gyms offer a similar program to the Signature flagship clubs but allow franchisees to enter the business at a lower cost and enjoy simplified operations.

Negotiating the cost or details of what happens when the lease ends is something so far in the future most people don’t think about it.

It is not uncommon for a tenancy being ‘made good’ to cost many, many thousands of dollars.

Ange Kondos, Leasewise

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EXPANSION The infamous burger chain Carl’s Jr has opened up in Bateau Bay near The Entrance, right next to McDonald’s. Operating in over 30 countries, Carl’s Jr has big plans to bite into the Australian market. The burger chain plans to open 300 stores in the next 10 to 15 years.

Franchised hair salon chain Franck Provost Paris is acquiring nine further salons in New South Wales and Queensland. The acquisitions will bring the portfolio to a total of 23 salons. Eight of the acquired businesses are former salons of the collapsed Evolve group. (Read more about the hair business on page 73).

The 24/7 gym chain Jetts has unveiled its first gym in Bangkok, Thailand. The move marks a significant milestone for the group, which has a network of more than 270 gyms across Australia, New Zealand and the Netherlands since launching on the Gold Coast in 2007.

Zarraffa’s Coffee will have a new base for its domestic and international operations following the $12.5m purchase of a 5.4ha site in Logan by its sister company Tonken Property Group. It could take up to 12 months for the site development; a staged relocation plan will include moving its head office, training, packaging and franchising operations to the site.

Australian Skin Clinics has unveiled its new education facility with state of the art technical equipment on the Gold Coast.

This registered training organisation offers courses for students across the country.

Students can learn from professionals who specialise in the field of medi-aesthetics, with courses available both online and on-site.

SHINGLE INN FOCUSES ON FRANCHISEES As it celebrates its 80th anniversary this year, Shingle Inn café has appointed an operations manager to help build recognition and strength of the brand in new markets across Australia.

Michael Walker has joined the Shingle Inn franchise primarily to add value to the brand by focusing on key issues such as franchise profitability and brand compliance, which in turn will benefit the customers of each café around Australia.

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INSIGHTS

Top four reasons to buy home grown franchises There’s never been a better time to invest in a home-grown franchise. We look at the best reasons to choose an Australian franchise.

According to a study conducted

by IBIS World in October last year, the Australian franchising industry is projected to post annualised growth of 2.8 percent over the five years through 20152016, boasting 1,175 businesses and a revenue of $172bn.

There is a diverse range of Australian-based franchise available, but the top four reasons for choosing a home grown franchise are: 1. FAMILIAR COMMERCIAL PRACTICES Buying a home-based franchise will ensure that you are familiar with Australian customs and practices. Information is also easily accessible.

MORE GLOOM AND DOOM FOR 7-ELEVEN

2. DIRECT ACCESS TO FRANCHISOR

Here is just a taste of some home-grown brands:

Michel’s Patisserie: part of the Retail Food Group with more than 320 Australian stores.

Begin Bright: committed to helping pre-school children reach their academic goals.

Narellan Pools: a family business that has grown to become an iconic Australian brand.

Boost Juice: tickling our tastebuds with over 350 stores operating in 17 countries.

Oporto: from North Bondi to businesses in New Zealand, the UK, and China.

Ferguson Plarre Bakehouses: baking for more than 110 years, and over 65 stores today.

Plus Fitness 24/7: an award winning, 24 hour gym franchise, operating for nearly 20 years.

4. BRAND TARGETED TO THE AUSTRALIAN MARKET

Jim’s Mowing (Jim’s Group): has franchises in cleaning, electrical, fencing, finance and more.

Sumo Salad: more than 100 stores offering healthy, wholesome fast food, with a big taste to match.

Businesses based here are branded and geared for a local market.

Lenard’s: this chicken retailer has embraced change and a unique profit model.

For other business models to suit a variety of budgets visit www.franchisebusiness.com.au.

Australian-based franchises will mean that franchisors are more accessible for advice, support, and assistance,.

3. FRANCHISOR IS MORE INVESTED IN THEIR HOME BASE Overseas franchisors may have many other offshore franchisees like you, but Australian-based franchisors are more invested in our market.

as reported by Fairfax Media.

“The intimidation has gone to levels that are very worrying,” said Hennessy.

Exploited 7-Eleven workers are allegedly still being forced to give pay back to their bosses and at least one is said to have been beaten for speaking out.

This has led former Australian Competition & Consumer Commission chairman Alan Fels to tell a Senate inquiry he has lost confidence in the chain’s ability to handle the debacle.

Deloitte partner Siobhan Hennessy, a member of the Fels Wage Fairness Panel created by the company to investigate the scandal, told senators in Canberra that a worker had been beaten for speaking to the panel,

BUY A FRANCHISE

The hearing also included a testimony from former 7-Eleven chairman Russ Withers, current chairman Mike Smith, and interim chief executive Bob Baily that up to 500 employees were still being short changed.

Claims of cash-backs related to the fiasco were on track to peak at $50m in what Senator Sue Lines described as the biggest back-pay claim in Australian history.

7-Eleven has already budgeted a sum of $25m for back-pay claims.

Two former 7-Eleven workers who played a major role in speaking out for underpayment have received their back pay while another worker expects to receive $270,000 in wages from the convenience store chain.

CROATIA’S OLDEST BAKERY BITES INTO AUSTRALIA Croatia’s oldest and largest bakery chain is set to open franchises in Australia in May this year, specialising in continental bread and pastry.

The veteran bakery retailer has been tantalising tastebuds since 1903 across Croatia, Slovenia and Hungary. According to a report by Croatia Week, Australian franchises will be branded and set out exactly the same as they are in Croatia, but will be run by franchise partners.

Mlinar currently operates under two franchise models, the franchise partner model designed for Australia and Saudi Arabia (also launching in May), and a model which allows outlets to stock Mlinar products.

Signature items such as bureks (a filo pastry filled with cheese, meat, potato, spinach) are already

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marketed across Australia.

Mlinar also plans to open 150 bakeries in Germany within the next five years.

HALF YEARLY FINANCIALS Beacon Lighting has announced a net profit of $11.1m for the 26 weeks leading up to the 27th December 2015, an increase of 22.1 percent from the previous year. The lighting franchise reports growth was driven by “innovative new products, effective price management and a favourable foreign exchange position.”

Domino’s Pizza Enterprises Limited has reported a jump in profit results, mainly from organic growth. The brand’s digital focus, electric push bike concept, and expansion plans are said to be the main drivers of the pizza giant’s growth. Net Profit After Tax was $45.6m, an increase of 56.7 percent on the prior corresponding period.

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TOP 10

global consumer trends

for 2016

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W

hat’s directing consumer spending this year?

Established and new trends are mixing with countertrends that Daphne KasrielAlexander believes are challenging ways of living and shopping.

The author of Euromonitor International’s Top 10 global consumer trends for 2016, Kasriel-Alexander highlights the drivers to the changing landscape.

“Middle class shoppers also enjoy being frugal. The consumer has been permanently conditioned to expect significant discounts,” PwC, quoted in the report.

We need to cater to an agnostic, sceptical shopper, slow down and create time for ourselves, get a social conscience, harness technology appropriately and find ways to counter the growing reliance on digital aspects of life with analogue activities. The young and the old have the spending power, so it pays to learn about their behaviour and their needs.

Shoppers are becoming more savvy and putting what the Financial Times cites as “relentless pressure” on ‘premiumisation’.

The trend in food has obvious implications for the franchise sector, but in differing ways and to varying levels, all these consumer trends will influence the businesses of tomorrow.

THE TOP 10 TRENDS AGNOSTIC SHOPPERS Value and novelty rather than brand loyalty are driving these shoppers who “are torn between wanting to be thrifty, while enjoying spending on products which inspire them”. What makes an agnostic shopper happy is finding good quality in unknown, unadvertised brands.

Matched to this is an interest in innovation – new ideas and start-ups.

How does this translate into business?

Geolocation on smartphones and websites offering a ‘virtual concierge’ service allow shoppers to source good deals. ✱ Feelter is launching an algorithm service aimed at persuading customers to shop immediately rather than keep hunting and opening new online tabs. ✱ Approved Food is a UK brand selling food past its ‘best before’ date MAR/APR 2016 | 13 | WWW.FRANCHISEBUSINESS.COM.AU

BUYING TIME In 2016 time is now considered the ultimate luxury. Saving time goes beyond convenience and consumers are willing to outsource elements of their day-to-day lives. ✱ The increase of ready meals ✱ Time saving solutions such as pedestrian fast lanes to help shoppers ✱ Outsourcing childcare, domestic chores, home renovations ✱ Consumers are impatient, and expect almost instant responses to online comments A survey in the US found companies only responded to 20 percent of tweeted questions yet 85 percent of consumers expect an answer in less than 60 minutes. ✱ Companies need to look to quicker responses and social media teams As digitally-active consumers continue to connect through the night, sleep is being seen as a lifestyle choice, suggests Kasriel-Alexander in the report.

“Consumers’ busy lifestyles and today’s greater understanding that sleep enhances lives, health and weight loss, see more brands responding,” she writes ✱ Businesses are offering travel and sleep combinations for customers seeking enhanced sleeping opportunities

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CHALLENGING AGEING According to Euromonitor International data, the world’s population of seniors (those aged 65+) is set to hit 626 million this year – out of a global population of 7.3 billion.

Savvy business operators are targeting retirees – supermarkets, tourism hubs, cinemas and clubs are already doing this around the world.

But not everyone is retiring – some are becoming entrepreneurs. And according to the Smart Ageing Research Centre in Tohoku University, “understanding the mentality of older consumers is more important than functionality when marketing products to them”, the report highlights.

Energised ageing – mature citizens are not sitting at home.

In the UK the over-50s account for the majority of the travel and tourism spend.

Senior empowerment, whether through travel, clothing, or embracing technology, is growing. The over-65s can use technology to stay mentally alert, to monitor their health and wellbeing, to get robotic assistance around the home.

CHANGEMAKERS Millennials have a social conscience. They are interested in embracing social causes, want brands to behave responsibly and think “How will the world be different because I lived in it?”.

A more positive approach to the world is reflected in a desire for good news about communities and individuals. ✱ More lifestyle, fewer consumer goods ✱ Renting or sharing products

meeting and information hubs – merchandise is an after-thought “Smartphones have displaced cars as the consumer good that young adults regard as essential to their sense of freedom.”

restaurants which deliver food with more natural ingredients ✱ Consumers are talking about where the food comes from

GENDER BLURRING There is a more vocal rejection of gender stereotyping and gender fluidity is having an impact on consumers.

Retailers and manufacturers are creating gender-neutral labels and it’s being reflected in store layout with the US Target chain no longer dividing departments by gender-based signage.

Unisex designs in clothing and wearable technology

MENTAL WELLBEING A holistic approach which includes optimal mental and physical health.

“Striving for mental wellness is also a response to pressured lives. It includes a tinge of nostalgia and offers a way for workaholics to pause.” ✱ London’s latest trend – Drop-in Silence, a place to find stillness

GREENER FOOD

✱ The colouring book craze

Even fast food is getting greener, reads the report. And along with the trend for fresh produce and healthy eating choices is a new pathology: “orthorexia nervosa, an abnormal urge to eat healthily, correctly and ethically”.

✱ Yoga is “enjoying a global moment”

✱ The Ambrosian Refectory, a pop-up dining hall creating haute cuisine meals from surplus food and serving them to the needy ✱ Locally grown, seasonal produce, urban gardens ✱ Smaller format outlets, convenience stores, street food, farmers’ markets HEALTHY MEAL SERVICES Australians are buying better quality meat, but less of it.

Euromonitor reports that Lisa Sharp of Meat and Livestock Australia told website Queensland Country Life, “Australian consumers will support local brands with a strong ethical story, particularly around the care of animals”.

✱ Car-free and greener transport alternatives

✱ McDonald’s has pledged its US restaurants will serve chicken free of antiobiotics within two years

✱ Shops with a focus on

✱ The growth of fast casual

✱ Airports are providing tranquil spaces for healthconscious consumers wanting to unwind OVER-CONNECTED CONSUMERS Almost half of the global population is networked – internet users are predicted to hit three billion this year, according to Euromonitor International.

Smartphones are now a mainstream tool for consumer payments – 45 percent of internet-connected consumers have at least once tried in-store mobile payments.

However sleep deprivation and addiction to texting are creating what the author calls ‘vampire kids’, one of the downsides of the technological trend.

Technology is also speeding up our sense of time. Time pressure has been linked to heart disease and depression, according to a study by James Cook University.

One response has been the re-emergence of analogue items which are now seen as luxury goods.

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✱ Meditation and spending time in nature are antidotes ✱ Being off the radar SHOPPING FOR CONTROL Consumers are harnessing technology to counter their feelings of insecurity about life – tracking systems installed on kids’ phones, so-called ‘helicopter parenting.

Brands are recognising the need to rebuild trust among consumers. Buying ‘green’ is one way shoppers feel in control.

Buying online from home also appeals. Globally shoppers are expected to spend US$1,152 bn online this year, a lift of 16.3 percent on last year’s figures.

SPENDING SINGLES “With fewer commitments and more to spend, premium singles are a captive audience for authenticity-led services and products,” reads the report.

Young spenders now spend on travel, and goods for other people’s children. ✱ Hotels are targeting single guests looking for lifestyle ✱ PANKS (professional aunts, no kids) holidaying with nieces and nephews ✱ Solopreneurs – creative freelancers sharing communal office spaces ✱ YUCCIES (urban creatives in ztheir 20s/30s, a hybrid of hipsters and yuppies) They are tech-savvy, entrepreneurial and creative yet more traditional and cautious, and the strive to link their creativity to wealth.

When you research a franchise opportunity, you’ll be wellplaced to find out about the vision for the business and how it will embrace new trends so there continues to be a competitive edge for franchisees.

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RULE THE ROOST. Red Rooster Franchise Opportunity.

This is a real opportunity to be seized. Red Rooster is looking for self-motivated people to become owneroperator franchisees.

If you’re a hard-working people-person, with a can-do attitude, you’re just the kind of person we’re looking for.

You’ll find all the details on how to apply at

www.redrooster.com.au/franchise

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2016-02-23T15:04:53+11:00

On the

home stretch

C

ould a home loans franchise have the potential you’re looking for in a business opportunity?

New data from the Australian Bureau of Statistics has found home loan demand surged significantly over the month of December.

According to the December Housing Finance Data, 58,552 home loans were approved over the course of the month – up 2.6 percent from 57,081 in November.

Mortgage Choice chief executive officer John Flavell said approvals haven’t been so high since January 2008.

“December was an incredibly strong month in terms of home loan approvals. The fact that we haven’t seen this level

of demand for home loans since 2008 is a testament to the ongoing strength of the property market,” he said.

increased over the month of December, with the data showing the total value of all home loans written grew 0.8 percent.

“Pleasingly, the data shows that all parts of the market improved over the month of December.

“In December, more than $33.5 billion worth of home loans were written,” Flavell added.

"The number of dwelling commitments approved for the construction of new dwellings was up 1.8 percent, while the number of loans written for the purchase of new dwellings and the purchase of established dwellings was up by 12.4 percent and 2.1 percent respectively.”

“The value of all investment loans written was up 0.6 percent, while the value of all owner occupied home loans written was up by 0.9 percent.”

And it wasn’t just the number of home loans approved that

“At Mortgage Choice, we know from our own data that

However the sudden surge in activity wasn’t altogether surprising, according to Flavell.

MAR/APR 2016 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

December is a traditionally hot month in terms of home loan settlements, as Australians are keen to finalise their property plans before the New Year commences,” he said.

But Flavell is confident that the property market will remain robust over the coming months.

“Interest rates continue to sit at record lows, making the cost of borrowing more affordable than it has been in a long time. As such, we should continue to see a steady stream of buyers entering the market looking to take advantage of the current rate environment.”

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FR0316_018

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2016-02-23T18:49:05+11:00

What’s happened to the

hardware and building supplies

market?

T

he Master’s meltdown in January exposed the peculiar nature of the hardware and building supplies industry, writes Noha Shaheed.

Although costs were a price paid

by Master’s, industry revenue in hardware and building was expected to grow in the next five years. Operational costs of the Woolworth's owned Master’s business, however, also proved to be a struggle. Woolworths confirmed that Home Hardware, its chain, will also be sold. Along with Masters Home Improvement, Home Timber & Hardware, (a joint venture with US based Lowe’s Companies Inc called Hydrox Holdings Pty Ltd) will embark on a prospective sale or wind‐up process.

However, the process will take several months.

“Woolworths’ decision to dispatch the struggling Masters chain is indicative of fierce competition,” said IBISWorld senior industry analyst, Spencer Little.

Franchising spoke to Little about the implications of the decision for the industry, and how it would affect

the remaining players in the hardware and building supplies retailing industry.

Little explained that the influential role of Bunnings as the industry’s stable player certainly contributes to the competitiveness of the industry. Price remains the key differentiator of consumer choice, which was the Masters’ plan, but with a cost.

That is, keeping up with the cost of overheads and operations.

Little said that businesses interested in entering the industry should be well aware of the initial capital costs or expenses of buying a franchise licence.

He also added that prospective players should also consider the challenges of finding an appropriate sized location in the major cities and towns.

‘The dominance of existing players, particularly Bunnings, also acts as an entry barrier, as it can be extremely difficult to remain competitive and profitable in such a competitive industry,’ he said.

When we asked Little what it would take for smaller businesses in the industry to thrive in the industry, he stated it was about expanding store networks and launching advertising campaigns.

Differentiation is also paramount, so that customers

see the value in choosing one retailer over another.

its buying power and keep prices down.

‘Many other smaller independent hardware retailers in the industry have also found success by offering a range of niche and specialised products,’ he said.

2. Ability to control stock on hand: sufficient stock controls are needed to reduce inventory costs (costs of items such as property, goods in stock, or the contents of a building) and allow for efficient switch-overs to new product ranges.

Franchising Magazine contacted Metcash Limited, which owns the Mitre 10 independent hardware retailer, who provided no comment.

Little asserted that trends in the hardware and building supplies retailing industry is on the rise due to household number growth in the last five years.

The hardware and building supplies retailing industry is expected to expand by 6.7 percent annually over the five years through 2015-16, to peak at $15.9 bn.

TIPS FOR SUCCESS IN HARDWARE AND BUILDING SUPPLIES RETAILING A report by IBISWorld outlines six key pointers for success in this industry: 1. Economies of scale (costs saved from producing more): businesses which are able to save costs whilst increasing output will improve

MAR/APR 2016 | 18 | WWW.FRANCHISEBUSINESS.COM.AU

3. Sale of goods popular in the market: stocking the latest products which reflect current consumer tastes can help attract customers.

4. Proximity (closeness in location) to key markets: franchises that are located in highly-populated and convenient areas are able to increase their customer base and generate more revenue.

5. Effective product promotion: product promotion is important for distinguishing brands and increasing consumer traffic in hardware stores.

6. Access to highly skilled workforce: it is crucial for retailers to employ highly skilled employees that are highly knowledgeable about products, and are able to provide customers with detailed information about hardware products and building supplies.

FR1115_000_MAD

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2015-11-09T10:33:07+11:00

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FR0316_020

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2016-02-23T15:23:30+11:00

HOW DOES

FRANCHISING WORK?

F

ranchising is a way for individuals to invest in an existing business and gain a competitive advantage.

It’s also a great way to learn about running a business, rather like having training wheels on. For many individuals and couples, investing in a franchise is the first step towards being their own boss.

HOW DOES IT WORK? The business owner or franchisor licenses to franchisees the right to operate a business or distribute goods or services for a specific period of time.

And in return, the franchisees pay the franchisor a fee. This usually comprises an initial payment and then regular ongoing fees. These monthly fees may be a flat rate or a percentage of the franchisee’s sales.

WHY PAY FEES? Good question. The franchisee is investing in a proven system with all the experience and knowledge of the franchisor on hand.

That can be an easier and quicker way to get a return on investment than starting up a business from scratch. For the franchisor, the fees paid help to further expand the franchise network, allow it to pursue business opportunities, invest in research MAR/APR 2016 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

and development, and employ a strong support team.

WHAT ARE THE RULES? Of course there are limitations to what can be done with a business if it’s part of a franchise group. The franchisee will have to operate their business according to the rules and processes set out by the franchisor. After all, the tried and tested formula is what has made the business a success. How regulated the business is will depend on the individual franchise system - some franchisors have a light touch when it comes to the rules, others prefer strict guidelines across the board.

WHAT DOES THE FRANCHISOR PROVIDE? When a franchisee invests in a business, what will be part of the package?

FR0316_021

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✱ an existing business model ✱ a brand ✱ operating systems and processes ✱ marketing strategy ✱ training ✱ support These are the fundamentals of a franchise operation - again, differences will be found in the depth and breadth of each element according to the franchise system.

WHAT IS A FRANCHISE NETWORK? Every franchisee who joins a franchise system joins a network of other business owners, perhaps like themselves, perhaps quite different. What they have in common is the brand, the tools and the support from the franchisor to help them build their own business.

The advantage of a network is the ability for

any franchisee to learn from others in the group about best practice, how to handle difficult business situations or staffing issues, how to get through the troughs in the business.

Franchisees can mentor each other, can network at local or national meetings or conferences, even vie with each other to be awarded for top performance. For some franchisees the network of fellow franchisees is like a second family.

HOW LONG IS A FRANCHISE TERM? A franchisee who follows the rules can run their business for the length of the franchise term – it could be three years, five years or longer.

At the end of the term, the franchisee may be able to renew the franchise agreement – but this is not always the case.

MAR/APR 2016 | 21 | WWW.FRANCHISEBUSINESS.COM.AU

HOW IS FRANCHISING REGULATED? In Australia the mandatory Franchising Code of Conduct is the governing regulation for the sector. It outlines the rights and responsibilities of both franchisee and franchisor, and breaches of the Code can result in financial penalties.

HOW TO ACHIEVE FRANCHISE SUCCESS Every franchisee will have a different measure of what constitutes success but most would consider a profitable business to be a starting point. Along the journey to profitability good communication with the franchisor and a great attitude to the business will really count. Franchisee success is dependent on many things: the brand, business support, location, costs, and ultimately, the franchisee’s ability to manage and control the business.

FR0316_022

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What is the

FRANCHISING CODE OF CONDUCT?

V

ery few of us love regulation but if you are thinking of buying a franchise, you’ll need to understand what you and your franchisor can and can’t do. It makes sense to be informed before you invest so here’s a quick guide to the big daddy of franchise rules, the Franchising Code of Conduct.

The franchise sector is highly regulated in Australia, and at the foundation of this governance is the mandatory Franchising Code of Conduct. It governs the ongoing relationship between the franchisee investing in the business, and the franchisor, who runs the franchise system.

Essentially there are three elements to the Code: ✱ information that must be disclosed to assist franchise buyers in their decisions ✱ the conditions contained in the franchise agreement ✱ dispute resolution procedures

The Australian Competition and Consumer Commission has regulated the franchise sector since 1998; regular updates have taken place over the years with the most recent changes an overhaul of the Code with the new regulation becaming law in January 2015.

GOOD FAITH The new Code has introduced an obligation under the Code for both the franchisee and the franchisor to act in good faith in their joint dealings. As there is no defi nition of good faith provided in MAR/APR 2016 | 22 | WWW.FRANCHISEBUSINESS.COM.AU

the Code, this is up for interpretation.

But it follows the unwritten law that both parties must act with honesty, avoid arbitrary actions, and co-operate to fulfi l the intention of the franchise agreement.

Unreasonable, unfair or oppressive behaviour may be seen as a breach of good faith.

But as Professor Andrew Terry at University of Sydney has written, “The obligation to act in good faith does not, however, prevent the parties from acting in their own legitimate commercial interest. For example, there is no breach if the franchisor has reasonable grounds to deny an extension of the franchise agreement”.

And of course it works both ways: franchisees too are bound to act in good faith when dealing with the franchisor. A clear breach of this would be the use of social media to spread false and negative information about the franchisor’s business.

FR0116_000_CHE

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1

2015-11-20T09:54:27+11:00

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Financial penalties and infringement notices have been included for serious breaches of the Code.

HOW DOES THE CODE HELP? The Code outlines information you are entitled to as a franchise buyer; for instance, you must now receive from the franchisor a short information sheet which highlights the benefits and disadvantages of a franchise.

It highlights what should be included in the disclosure document which must be given to you at least 14 days before you pay a non-refundable deposit.

It’s important for potential franchisees to carefully read the disclosure document as this will outline any expenses the franchisor may require you to spend.

Some changes that can benefit franchisees include: ✱ The new Code requires greater financial transparency from franchisors handling marketing and advertising funds. ✱ The Code has also brought in an extra requirement for clarity over franchisor/franchisee e-retailing. ✱ Franchisors are prohibited from putting substantial capital expenditure demands on to franchisees, with a few exceptions.

There is an approved process for disputes between franchisee and franchisor, and the Code points out what to do when things go wrong.

DOES THE CODE APPLY TO YOU?

✱ ask franchisees to pay the franchisor’s costs relating to a dispute settlement Alleged breaches of the Franchising Code, or the Competition and Consumer Act 2010, can be investigated by the ACCC, which has the power to take enforcement action if that is appropriate. This does not include investigating disputes concerning just a contractual issue.

The Code applies to any franchise agreement - and a franchise agreement has the following four elements:

The ACCC has compiled a Franchisee Manual to help explain rights and responsibilities.

1. a written, oral or implied agreement 2. an existing system or marketing plan 3. a trademark 4. fees to be paid to the franchisor

The Code of Conduct has been tweaked over time to better balance the relationship between the franchisor and franchisee. It pays to be knowledgeable about the respective rights and responsibilities so you can make decisions and conduct your business accordingly.

3 THINGS THE FRANCHISOR CAN’T DO Under the Franchising Code of Conduct the franchisor cannot: ✱ ask a prospective franchisee to sign a document waiving any verbal or written representations made, or releasing the franchisor from liability ✱ take action on a dispute in a State or Territory different from the franchisee’s base

Ready to delve a little deeper?

WHERE TO FIND OUT MORE Visit www.accc.gov.au Read the Code in full: www.comlaw.gov.au Check out advice articles at www.franchisebusiness.com.au MAR/APR 2016 | 24 | WWW.FRANCHISEBUSINESS.COM.AU

Franchisees too are bound to act in good faith when dealing with the franchisor

FR0316_000_CHEESE

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FR0316_027

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10

QUESTIONS

TO ASK YOUR FRANCHISOR

A

s a prospective franchisee there are many questions you need to ask before committing to being part of a franchise. Although a franchise may look successful and profitable on the outside, it is best to ask as many questions as possible to ensure that this image isn’t just smoke and mirrors.

Below are 10 questions a prospective franchisee should ask to ensure they are entering into a successful, profitable, efficient and effective franchise.

1. HOW MUCH IS THE INITIAL INVESTMENT? You may already know what the initial franchise fee is but also ask about any additional pre-opening fees and overheads.

Adding up the total cost of a franchise prior to opening the franchise business will ensure you know whether you can or can’t afford the total out of pocket costs before signing any franchise documents.

MAR/APR 2016 | 27 | WWW.FRANCHISEBUSINESS.COM.AU

2. WHAT DO MY FRANCHISE AND MARKETING FEES BUY ME? Discuss with the franchisor exactly what this investment will provide you with. Once you have an idea of the cost to start up the business ask yourself: "Is this good value for what it actually provides me with?”

3. WHAT SUPPORT SYSTEMS ARE IN PLACE? As a new franchisee you may be new to the industry you have chosen, or this may be your first time running your own business.

The beauty of a franchise is the back-up on

FR0316_028

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Ask questions to ensure you are happy with the growth strategy the franchisor is following offer, so ask the franchisor about the support systems including training, promotional materials, legal advice and financial support.

4. WHAT ARE THE LAWS IN REGARDS TO STARTING THE BUSINESS? Depending on the type of business, there may be several legal regulations or issues that you will have to deal with once you become a franchisee. This may cause issues if you have no prior legal experience and will mean spending time and money with a legal advisor. Find out what help you can get from the franchisor.

5. HOW LONG HAS THE FRANCHISE BEEN IN OPERATION? This may be an obvious question but it’s an important one. If a franchise has been in operation for many years but has not seen much growth or profitability, this may mean there is an issue with the business model.

However, high growth in a short amount of time may also be a warning sign. Ask questions to ensure you are happy with the growth strategy the franchisor is following.

6. WHAT ARE THE SATISFACTION LEVELS OF THE EXISTING FRANCHISEES? What better way to find out whether a franchise is well suited to your needs and expectations than to ask people with experience. The satisfaction levels of existing franchisees will always indicate whether the franchise provides a business structure that supports franchisees and ensures a quality and profitable investment.

7. WHAT MAKES THIS BUSINESS MODEL PROFITABLE? There must be reward for the amount of effort you put into the franchise. If you work every day, all day but see no return on investment then you are likely to fail. If you are purchasing an existing business, take into account the franchisee’s profitability history and cash flow as well as things such as overhead costs

and decide whether this franchise is worth both your time and your money.

8. WILL THERE BE TERRITORIAL PROTECTION? For some franchise models territorial protection is crucial. This is so no new franchisee can penetrate your market and diminish customer numbers through unnecessary competition.

9. ARE YOU INVOLVED IN FRANCHISE RECRUITMENT OR FRANCHISE SALES? It may be difficult to initially find out whether the franchisor is in the business of building their franchise team or just selling franchise packages and making their money up-front. However, a good indication of a franchisor involved in franchise sales is one that provides very low support systems and follow-up once the sale is complete.

Ensure you consider the benefits of both.

Typically those involved in franchise sales alone can be more flexible and less controlling – yet can lack the guidance, support and governance that one concerned with franchise recruitment may offer.

10. WHAT IS YOUR VISION FOR THE BUSINESS? Any business has a greater chance of success with a passionate, dedicated leader at the helm - someone who has a vision for the business.

So what does the franchisor envisage for the brand next year and in five years' time? How will changing market forces have an impact on the business and what plans are in place to alter the franchise model accordingly?

What investment is the franchisor putting into research and development?

Ask these questions to get a clear idea of whether or not the franchise you have in mind will do the job.

MAR/APR 2016 | 28 | WWW.FRANCHISEBUSINESS.COM.AU

FR0316_000_LAV

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1

2016-02-19T16:08:31+11:00

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FR0316_030

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faith

Keeping the

A

cting in good faith is one of the new legal responsibilities for both franchisors and franchisees under the Franchising Code of Conduct. Good faith is a two-way street. It means being honest with the other party and considering their interests. It also extends to consulting with the other party about proposed changes and trying to resolve disputes as they arise.

A franchisor is required to act in good faith in its business dealings with current, and prospective, franchisees. And on the flip-side, they must act in good faith when dealing with the franchisor.

This mutual obligation applies throughout the franchise relationship; covering pre-entry negotiations, performance of the contract, dispute resolution, and the end of the franchise agreement.

DR MICHAEL SCHAPER Deputy chair of the Australian Competition and Consumer Commission.

MAR/APR 2016 | 30 | WWW.FRANCHISEBUSINESS.COM.AU

FR0915_000_DOM

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1

2015-09-09T14:14:46+10:00

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FR0316_032

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But, can you still act in your commercial interests? What sort of conduct do you need to be aware of? And, what are the consequences for not holding up your end of the bargain?

extend their franchise agreement does not mean that the franchisor has not acted in good faith in negotiating the agreement.

LEGITIMATE COMMERCIAL INTERESTS

The Franchising Code doesnâ&#x20AC;&#x2122;t define exactly what good faith means, however it does state that the obligation of good faith is to reflect common law.

Good faith doesnâ&#x20AC;&#x2122;t prevent you or your franchisor from upholding any legitimate commercial interests.

Yes, you must have regard to the rights and interests of the other side, but this does not mean you have to act in their interests.

As an example, good faith will require parties to act honestly and cooperatively during the negotiation of a franchise agreement, however it is unlikely to compel a franchisor to make requested additions or changes to an agreement.

Similarly, the decision by a franchisor not to offer a franchisee an option to renew or

WHAT DOES THE LAW SAY?

Under common law, good faith requires parties to an agreement to exercise their powers reasonably and not arbitrarily or for some irrelevant purpose.

Conduct may lack good faith if one side acts dishonestly, or fails to have regard to the legitimate interests of the other side.

Australian courts have found business dealings to be not in good faith when they involve one party acting for some ulterior motive, or in a way that undermines or denies the other party the benefits of the contract.

MAR/APR 2016 | 32 | WWW.FRANCHISEBUSINESS.COM.AU

Failing to act in good faith could result in the ACCC seeking a penalty of up to $54,000

FR1113_000_SUB

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ACTING WITHOUT GOOD FAITH Here’s a hypothetical example of not abiding by the good faith clause: The franchisor of a sporting goods franchise system grants a franchisee an exclusive licence over a particular territory. Under the agreement, the franchisor is not allowed to be involved in the sale of sporting equipment within the franchisee’s territory.

During the term of the agreement, the franchisor starts to sell sporting equipment via its website to consumers who live in the franchisee’s territory.

By selling sporting equipment within this region, the franchisor has not acted in good faith as it has denied the franchisee the benefits of the contract.

GOOD FAITH CHECK LIST ✱ When considering whether your conduct is in good faith, ask: ✱ Have you been honest with the other party? ✱ Have you considered the other party’s interests? ✱ Have you made timely decisions? ✱ Have you consulted with the other party regarding issues/proposed changes? ✱ Do you have a contractual right to act in that way? ✱ Are you imposing any conditions on the other party?

Are those conditions necessary to protect your interests? ✱ Where a dispute has arisen, have you attempted to resolve the dispute (either directly with the other party, or through mediation)? ✱ Are you acting for some ulterior purpose?

The Franchising Code outlines certain factors that a court may consider when determining whether a franchisor or franchisee has acted in good faith.

The court may look at whether they acted honestly and not arbitrarily and whether they cooperated to achieve the purposes of the agreement. A court may also consider other factors.

STRETCHING THE FAITH Conduct that may raise concerns under the obligation of good faith includes: ✱ a franchisor treating a franchisee differently because the franchisee has raised concerns about the system ✱ a franchisor raising numerous minor and immaterial breaches with a franchisee in an aggressive and intimidatory way to extract concessions or stop complaints ✱ franchisees using confidential information provided by the franchisor to compete with the franchisor ✱ franchisees using social media to post MAR/APR 2016 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

negative comments about their franchisor or their dispute with their franchisor.

Whether certain conduct will lack good faith will depend on the circumstances surrounding the conduct.

THE CONSEQUENCES Failing to act in good faith is a breach of the Franchising Code. If you believe a party hasn’t acted in good faith in their dealings with you, you have a ‘private right of action’ under the law. This means that you can take them to court for breaching the Code.

The ACCC may also take action if it believes a business has broken the law.

Failing to act in good faith could result in the ACCC seeking a penalty of up to $54,000 or issuing an infringement notice of $9000.

Decisions by the ACCC about what is the appropriate response to a breach of the law are made in accordance with our Compliance and enforcement policy, which is available online at www.accc.gov.au/cepolicy.

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FR0316_037

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MAR/A MA R/APR 201 R/A 20 016 | 3 37 7 | WWW WWW.FR .FR FRANC FR ANC CHIS H EBU BUSIN NES ESS.COM.A ESS .CO CO OM.AU M.A M AU

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So what are the benefits of multi-unit franchising?

THE FRANCHISOR’S VIEW The founder and managing director of Poolwerx, John O’Brien, shares the company’s experience with multi-unit ownership: Franchisors have a fundamental obligation to their franchise partners to constantly look at what’s the next big thing.

What will keep them and the business ahead of the curve?

What’s the next challenge for them once they get to the top?

It was trying to bring this goal to fruition that lead to such a focus on multi-unit franchising within Poolwerx.

We were about five years into our original man-in-avan journey when we made

a decision that we wanted a stronger point of difference in the marketplace. We realised we wanted to provide the franchise with a competitive advantage that would attract a different calibre of franchisee; someone who wanted to buy a franchise business rather than just buy a job.

Our franchise agreement now allows someone to join the business at any level but we include a development clause that requires them to open a retail store in their territory within the first two years. Business development managers work closely with franchise partners to assist them on their career path.

they want. It’s an opportunity to recruit applicants that will grow your business harder and faster.

FRANCHISE BENEFITS

Another benefit is that it assists with increasing the longevity of franchise terms.

In our business it has helped us push this to over eight years, and growing, which is above industry standard.

We knew that if we could attract business people our model would become more scalable.

People with a business mindset understand the importance of expansion. The attributes of someone content to be a man in a van are very admirable but that is not where we saw the most potential for Poolwerx’s future.

A franchisor can benefit greatly from underpinning growth through a multiple business development strategy. Sixty five percent of our franchisees are multi-unit owners and it has been central to our growth.

Our four level career path developed from this premise but it probably took us 12 years from the time we began planning to when we opened our fi rst multi-store franchise.

If you open your business to multi-unit franchising the calibre of people it introduces improves, they have more to invest with and generally their vision is very clear. They come into the business knowing what

MAR/APR 2016 | 38 | WWW.FRANCHISEBUSINESS.COM.AU

It also saves on recruitment and training as you don’t need as many development and field people to support the network because they are working with a smaller pool of bigger franchisees.

Multi-unit franchising also allows the calibre of support staff to improve as you are able to shift the full focus from compliance to more support and mentoring. Many of our business development managers have franchisee experience themselves.

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BENEFITS FOR FRANCHISEES A multi-unit platform enables franchisees to truly fulfil their personal career aspirations, as well as determine their income potential and the balance of lifestyle they want to achieve.

Having a larger business also enables a franchisee to establish a management structure within their business.

At Poolwerx our multi-unit partners employ a retail, service and account manager to support the numerous locations. This ultimately provides them with more freedom and flexibility for family and holiday time.

Long-term, there is also the opportunity for succession planning.

A HIGH CALIBRE OF FRANCHISEES In my experience offering a strong career path that includes multiple units does change the calibre of franchisee you can attract in the business.

A common misconception is that franchising is only for people who want a small business, but our award winning franchisees Ian and Irene [read their story on this page] are proof of the level you can reach within this industry, and basically the sky is the limit.

Ian and Irene Hughes, winners of the Franchise Council of Australia 2015 Multi-unit Franchisee of the Year Award, followed the Poolwerx multifranchise career path, with the business at its peak achieving turnover of more than $3m.

Our model is specifically designed to allow franchise partners a strong career path from mobile to multiple store owners allowing them to develop a business as big as their vision determines.

“We started out with one store, added another within two years and then a partnership in 2010 saw us grow to four stores and we have continued to grow year on year at an average of 20 percent despite some tough economic conditions over the last five years.

This was a deliberate strategy we developed to provide a competitive advantage for our business and it has certainly worked.

“We bought out our partners for another 30 percent in 2011 to become 80 percent manager owners. We left our corporate jobs in pursuit of being the masters of our own destiny, and it is a decision that has paid off in many ways for us, both financially and in lifestyle balance and flexibility.

Poolwerx has won the FCA Multi-Unit Franchisee of the Year Award three times in 2012, 2013 and 2015, as well as being a finalist in 2011 and 2014.

We have profiled our top franchisees and know what combination of skills and attributes they need to succeed.

THE FRANCHISEE'S VIEW

“It has really been one of the best choices we ever made. We would have been a one-man-in-a-van business without the progression plan presented to us and all the support is there for that.”

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While it’s very hard to find all of them in one person, most of our business owners are husband and wife teams who, as a combined force, possess the right skills and attributes. As a result we now always profile a couple even if one of them is not planning on starting in the business.

THE RELATIONSHIP WITH FRANCHISEES Franchisors approach multi-unit franchisees like any other franchisee; as a business owner. They are always very driven people so it’s about sharing the journey with them, being honest and mentoring them as much as possible.

In our business we term them ‘intrepreneurs’; somebody who strives to be their own boss, to experience the freedom of running their own business and the opportunity to sure up their financial future, but who has the wisdom to realise they don’t want to start from scratch to achieve it.

The key therefore is to ensure the structure is right that you have better sales, better marketing and

better buying to provide the level of support they expect.

Franchisors need to be constantly on their toes seeking ways to raise the bar and help improve profitability.

The head office team must be capable of working with multi-unit business, and have the right level of business or franchise experience to do more than just support the team.

There needs to be constant innovation and focus on profitability to improve the experience and opportunity for both the franchisee and franchisor.

I believe this is mainly the franchisor's responsibility, as it is a key factor in maintaining high levels of franchisee satisfaction. You always have to have ‘the next thing’ tied up in a bow and ready to roll out.

The advantages of this business development strategy far out way the work required to support it properly and I honestly don’t know why more franchisors don’t utilise it.

TIPS FOR SUCCESSFUL MULTI-UNIT FRANCHISING Bedshed’s Susie Ralph started her franchise in 2006, relocated and expanded her business five years later, and will now open her second store in 2016.

Susie’s advice for multi-unit franchisees 1. COMMUNICATE WITH YOUR FRANCHISOR Many franchisors are really proactive, Bedshed included, so it helps to engage them early. They are able to make location recommendations based on market research they have conducted, and can assist with negotiations of the lease agreements.

In our case, they had already secured a suitable location and offered the site to existing surrounding franchisees.

I took this opportunity to re-evaluate my business, and discussions were made with Bedshed to expand.

2. DO YOUR RESEARCH The importance of taking the time to do your own research when deciding to open an additional franchise is critical. Ask yourself some hard questions. Can you afford to have a second franchise; can you afford not to?

Will this hinder or complement your existing business? A SWOT analysis (looking at strengths, weaknesses, opportunities and threats) is a good tool to use for the new site and how it will affect existing business. A business plan is also a good decision-making tool, and will be essential as part of the franchise approval process, along with accountant and legal advice.

3. LEVERAGE ECONOMIES OF SCALE Plan how you will leverage the economies of scale offered by having multiple franchise units. Stock purchasing and storage, for example, can be combined so you can get double the reward without twice the outlay.

Also, think about how you’ll staff the new franchise and whether you can use experienced staff from your existing business in the interim, to help get the new one up and running. Consider the cost and the time required for training new staff.

4. MANAGE YOUR TIME It’s hard enough not to get bogged down in the day-to-day running of one business, let alone two or more. It’s critical to manage your time effectively, delegate, and focus on the things that really matter. Some initial time and investment into hiring exceptional, reliable staff will go a long way.

Fortunately, in my case, my husband and I work really well together – in fact our skills complement each other.

It is worthwhile to determine what the staff’s strengths and weaknesses are, to use the best of their abilities to run the business. That is the key to running a business. Take care of your people, and they will take care of your business.

MAR/APR 2016 | 40 | WWW.FRANCHISEBUSINESS.COM.AU

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TOP TIPS FOR NEGOTIATING your retail lease

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here are many benefits to buying a franchise including the chance to get help negotiating your lease. And when it comes to negotiating, here are several fundamental elements that all make up a retail leaseâ&#x20AC;&#x2122;s cost or value to a retail business.

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ANGE KONDOS Managing director at Leasewise, with clients such as Mrs Fields, Schnitz and Breadtop.

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The headliners are rent, term of the lease, rent free period and fit out contributions the most prevalent in the shopping centre industry.

1. RENT The rent is the most fundamental recurring cost that has to be negotiated correctly. This can be done by researching the market rent or appointing a specialist negotiator that will have the most current rental information and add further value with the elements I will refer to below.

2. RENT FREE PERIOD Rent free period is a key negotiating point that follows the rent. The rent free period is crucial to a business start-up as the cash saved helps negate some of the substantial investment in the business.

Negotiating a clear start date is paramount; a retailer may lose some of the benefit of the rent free period by not defining separately the fit out period. The fit out period is the period during the build of a shop fit and depending on the size and complexity of the operation, can take anywhere from two weeks to 10 weeks.

So if you negotiated 12 weeks rent free and you have spent four weeks building a shop and then have had delays from builders and contractors of another three weeks (a common occurrence) your rent free period can quickly be halved with your business losing the cash benefit. Negotiating a fit out period separate to the rent free period and building in delay contingencies is common in today’s market.

3. FIT OUT CONTRIBUTION A fit out cash contribution towards a retailer’s shop fit is a regular feature in any shopping centre lease. The amount of the contribution is always negotiable: the final amount will depend on the quality of the shopping centre and quality or demand for retailer.

The higher the demand for your brand or business the more cash can be negotiated.

return on your investment is paramount.

Strip locations enable you to negotiate options for further terms that can add tremendous value to a business’s good will. Shopping centres are fixated on shorter terms - five to seven years on average; this can dilute good will and can be negotiated further in today’s market.

MORE ELEMENTS TO NEGOTIATE Other key elements that can be negotiated to negate start-up costs or recurring costs are: 1. Capital costs such as

4. TERM OF THE LEASE

✱ plumbing to the tenancy ✱ air conditioning costs ✱ fire services costs ✱ general outgoings costs All of these are negotiable and can be quite costly if not highlighted, negotiated and then clearly defined.

The term of the lease is inexorably linked to the value and security of your business.

Negotiating a term that ensures you get a

2. Storage costs. It is not uncommon in shopping centres for tenants to pay anywhere

It is not uncommon for centres to pay cash equivalent to a year’s rent or more in a current flat market to secure the brand they require and to fill spaces.

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from $400 to $1000 per sq m for storage space that is tucked away in a corridor near a loading bay. Negating these costs by negotiation prior to a lease is paramount.

Further points of negotiation that can assist a business drive sales and curb costs are: ✱ signage on pylons ✱ access without cost to common areas for marketing and sales drives ✱ parking costs for owners or staff ✱ the cost of ‘make-good’ Negotiating the cost or details of what happens when the lease ends is something so far in the future most people don’t think about it. It is not uncommon for a tenancy being ‘made good’ (the stripping of equipment, taking out ceilings, levelling floors and walls, removing shop fronts etc) to cost many, many thousands of dollars.

It is a retailer’s market and it will continue to be a retailer’s market. Every element of a retail lease is negotiable.

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I DID IT. â&#x20AC;&#x153;Jackie and I bought The Leather Doctor franchise because we love being together as a family. But it built up so quickly we became frantic!

We trained our son, Cameron and his wife, Kayla to take over the Mackay region while we stay focused on Rockhampton. Truth is, we do better together than what we do apart!â&#x20AC;?

- Jon & Jackie Minards Franchisee

Exciting new brands are now available following the same winning system, The Leather Doctor, The Timber Doctor and The Fabric Doctor. This is real opportunity.

I_DID_IT_MINARDS_205x275mm.indd 1

Call 1300 453 284 or visit www.myleatherdoctor.com.au You can do it too.

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THE NUMBER ONE

KILLER

FOR FRANCHISE AND SMALL BUSINESS MAR/APR 2016 | 46 | WWW.FRANCHISEBUSINESS.COM.AU

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ccording to the latest Hospitality Industry Success Index (HISI) by Silver Chef, cash flow is the number one killer of small businesses, accounting for a staggering 90 percent of small business failures.

With 84 percent of franchisees admitting that managing cash flow was a constant juggling act and hard to keep on top of, cash flow is undoubtedly one of the greatest challenges faced by the hospitality industry.

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TIPS FOR CASHFLOW SURVIVAL Andy Reeves of Silver Chef shares his top tips to keep your business trading through the tough times of cash fl ow fl uctuation.

PREPARE A SALES FORECAST According to Silver Chef’s latest HISI report, 27 percent of restaurants and 20 percent of cafes could be selling themselves short by not updating their prices refl ective of growing business costs including stock, wages and rent.

While no one can tell you what the future holds, preparing a sales forecast at least once a week, will give you a rough idea to work around market climates, seasonal trends, or fl uctuations in the industry to adjust your pricing accordingly.

Create a cash fl ow projection using factors like: ✱ Sales forecasts ✱ Customer payment histories ✱ Upcoming expenditure

ESTIMATE CASH INFLOWS This is always the fun bit: what are your cash infl ows for the period in question? Your list should include money from customers, interest earnings, loans received, or other sources of income.

BACK TO REALITY It’s of equal importance to estimate your cash outfl ows and expenses, to build a true refl ection of your cash affairs. Outgoing expenses will be different for every business but could include supplier payments, salaries, loan repayments, taxes, or debts, as well as less frequent costs like insurance, rates, and registrations. It’s often these less frequent costs which get overlooked.

NET CASH POSITION This formula is simple: cash on hand + estimated cash infl ows – estimated cash outfl ows = net cash balance.

This number will give you a good picture of where you stand in terms of spendable income and outgoing costs.

SURVIVING SHORTFALLS This is the moment any business dreads, being unable to pay the bills. By regularly calculating your net cash balance, you should be able to spot the problem early, and in doing so, be in contact with your bank for assistance. Always ask your suppliers for longer payment periods, and most of all: be transparent. Hiding the problem or lying to those owed, will only create more of a problem.

The lesson here is to prepare for the black swan – that is, rare events with great impact. Have you got your game plan ready for sudden loss of staff, equipment, expense increases, or product failure?

Mark Wynhoven (see case study) did not expect the impact the shopping centre’s renovation would have on his bottom line. Luckily, having a good idea of his infl ows and expenses allowed him to keep his head above water.

FOR MORE CASH FLOW SURVIVAL TIPS AND INDUSTRY INSIGHTS, DOWNLOAD THE FULL HISI REPORT AT WWW.SILVERCHEF.COM.AU/RESOURCES/HOSPITALITY-TREND-REPORT-1516

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On top of the regular risks of doing business, hospitality providers face additional challenges unique to the industry such as food spoilage and ever-evolving dining trends, meaning they must learn to work within very tight margins to be successful.

When can cash flow become a problem for hospitality businesses?

There are several factors which can culminate in cash flow issues. A common factor, particularly amongst new business owners, is balancing external set up and equipment costs, before stock or services are converted into cash.

Other common causes of cash flow difficulties stem from selling goods below their cost, excessive wastage of stock (for example, goods rendered unsaleable by spoilage) and owners regularly drawing from business funds to pay themselves. While profit is a goal for every small business, the number one priority should be cash flow. Remember that even profitable businesses can go bust if there isn’t enough cash in the bank.

CASE STUDY Franchise owner of Cold Rock Wilsonton, Mark Wynhoven, is proof that good cash flow management can save a struggling business.

Within six months of taking over the Cold Rock franchise from the previous owner, Wynhoven along with his wife and business partner, Louise, lifted business profit by a whopping 70 percent.

“We basically went in and evaluated every single product on the franchise offering, and identified an opportunity to

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introduce waffles to the menu – something no one else was doing at the time,” Wynhoven says.

“As the only dessert operator within a strip of other food providers, we wanted to work with our neighbouring businesses to build the profile of the precinct as a complete dining destination.”

However in order to take advantage of this niche offering, Wynhoven first had to find a way to fund the necessary new equipment.

“We probably would have bought the equipment outright but we were in the middle of funding an expensive advertising campaign which was already more than double our regular budget,” he says.

Remember that even profitable businesses can go bust if there isn't enough cash in the bank

“We contacted Silver Chef who suggested a 12-month rental agreement, which allowed us some flexibility to double the size of our machines and see how the product would sell first, before investing in the total equipment costs.

“It sounds like quite a simple change, but the success was enormous. The franchisor was amazed at how well we could make waffles work, and in the space of just a few weeks the store went from doing $300 a day to around $1500.”

While the business grew substantially over the first six months, Wynhoven was faced with an unexpected threat to his business when the shopping centre in which he operates was taken over by new owners.

The new owners decided to do a full redevelopment, with many of the stores in the strip electing to close, and in return reducing foot traffic to Mark’s store. As a result, his trade suffered a 40 percent decline.

“The effect it had on our business was immediate, but I believe in our offering and

know that we can come back as strong as ever. Diligently keeping on top of our daily budget, outgoing expenses and weekly sales forecasts has ensured we are able to pay our bills and keep the business moving forward,” Wynhoven says.

“It’s also important to have a flexible funding partner that understands your business and how quickly your circumstances can change.

Being transparent about our situation with Silver Chef has helped us to manage our cash flow and get back on track.

“We are now looking to adopt new technology and utilise the latest online marketing tools to increase our traffic flow as a destination outlet.”

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STAY IN CONTROL OF YOUR CASHFLOW First time and existing franchise owners face the same battle when it comes to managing cash flow.

Silver Chef’s national franchise manager, Andy Reeves, says it’s important to be prepared during both the good and the bad times of doing business.

“As Mark’s experience shows, anything can change in business so it’s important to stay in control of the elements you can – that is, the timing when you pay your staff, staggering your food deliveries, and forecasting as regularly as possible,” Reeves says.

“It’s up to you, as the business owner to know your numbers inside and out.”

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10 REASONS why franchisees

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fter more than 25 years in franchising, Iâ&#x20AC;&#x2122;ve seen both franchisees and franchisors achieve spectacular success, and others lose it all.

There is no such thing as a sure bet in business, but franchising helps reduce the risks of small business by providing a supported environment utilising both the resources of the franchisor, and the community of franchisees operating under the same brand.

BY JASON GEHRKE Jason is a director of the Franchise Advisory Centre and has been involved in franchising for 25 years at franchisee, franchisor and advisor level.

Franchisees do not invest in businesses to lose money, but by the same token they donâ&#x20AC;&#x2122;t always do enough to mitigate their risks either. If their business fails, the franchisor is the obvious target for the franchisee to blame, and on occasion, this is justified.

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However, franchisees are often the architects of their own misfortune for a variety of reasons that they can’t or won’t acknowledge in time to save the business.

So between franchisor-related reasons and franchiseerelated reasons, here is my top 10 list of causes of franchisee failure (and which can occur in any order, depending on the business):

FRANCHISOR CAUSES 1. BAD BUSINESS MODEL The franchisor’s business model might be the first thing that franchisees would like to blame for their failure, but this is not always the case.

Underdeveloped business models are likely to be found in new, start-up networks, and this should be factored into a potential franchisee’s assessment of the risks of joining.

While the business model risk may be greatest for a new franchisor, it can also re-emerge as a potential cause of failure in mature networks unable to match the pace of change set by nimble competitors, or which have otherwise failed to evolve with their market.

2. INADEQUATE TRAINING AND SUPPORT Failure caused by poor training or subsequent levels of support is also likely to occur in newer, start-up systems compared to mature brands. Training and support is typically limited to operational matters in new brands, with little or no general business training provided.

Franchisees can better protect themselves from training and support problems by better understanding in advance the nature, content, frequency and assessment of training and support provided by the franchisor, and if it doesn’t

seem adequate, to either ask for more or look for another system altogether.

3. INSOLVENCY When franchisors go broke, often their franchisees will be unable to survive because functions such as marketing, supply chain logistics, IT and other core activities that hold the network together may be wound back or cease altogether. Again, the greatest risk of franchisor failure is among newer, start-up franchisors, but even mature brands on occasion can fail, such as Angus & Robertson in 2011, and Kleins and Kleenmaid in 2008.

for the products or services).

Unfortunately there is a big difference between loving the products or services, and embracing the challenge of running a business that sells those products or services.

Sometimess franchisees, no matter how passionate they are about the product, the brand or the industry, are just not suited to the business.

They may not be dynamic enough to evolve with the business over time, may be incapable of managing or retaining staff, or there may be a whole bunch of other reasons best summarised by simply being the wrong fit for the business.

FRANCHISEE CAUSES

5. INSUFFICIENT PLANNING

4. WRONG FIT

A failure to plan is a plan to fail.

Despite the obvious wisdom of this saying, many franchisees still fail to prepare a business plan before starting their franchise – and on the flipside, many franchisors fail to insist on one either.

A potential franchisee may love a business from a customer’s point of view, and from this decide that the business is one that they would like to run (because of their passion

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A business plan should be a road map that shows the way to achieve profits by certain milestones. The franchisor should be involved in the planning process and should analyse and constantly monitor business plans submitted by franchisees to ensure that the franchisee operates their business according to the plan.

6. INSUFFICIENT WORKING CAPITAL AND REINVESTMENT A lack of working capital and a lack of reinvestment are among the most common causes of all business failure (not just franchising). Franchisees who start operating businesses without adequate working capital will be unable to pay their bills when they fall due if the amount of cash coming into the business is not greater than the amount of cash going out.

Even if the business is profitable, it can still fail if its

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customers have not paid it on time and it runs out of money to pay its own bills.

Understanding the difference between cash flow and profit can mean the difference between survival and failure.

Likewise with reinvesting in the business – a failure to progressively put cash back into the business could eventually result in massive reinvestment works that can send a franchisee broke.

7. UNREALISTIC EXPECTATIONS Does a franchisee have unrealistic expectations? The best way to test this is to look at the business plan; it will provide an essential insight into financial expectations (and the timeline) but there may be other unrealistic expectations based around training, support and the flexibility of the business model.

The problem is that these expectations are rarely articulated to the franchisor until after the expectations have failed to have been met.

8. DISTRACTIONS (STEALING FROM THEMSELVES) Sometimes the cause of a franchisee’s business failure is not related to the franchise at all, but something else altogether. If a franchisee is comfortable with the performance of their business, they may look elsewhere for a challenge and fi nd another business or interest to keep them occupied. Often this will take too much of the franchisee’s time (and their money) away from the franchised business.

Where this occurs, franchisees effectively steal from themselves by taking valuable capital and human resources from one business to support another. When the left hand robs the right hand, both hands risk losing the lot.

9. FAILURE TO EVOLVE (COMPLACENCY) The market in which the franchisee’s business operates is constantly changing, and if the franchisee doesn’t change with that market, they will ultimately become irrelevent.

Fortunately for the franchisee, they are not alone on this journey of constant change, as the franchisor must also evolve to keep up with the market as well. However if the franchisee is too complacent with their business (or has their attention elsewhere) to adapt to change, their business will inevitably suffer.

10. FAILURE TO FOLLOW THE SYSTEM Despite investing in a franchise with a prescribed way of doing things, some franchisees think they can do it better and instead of following the franchise system, they buck the system and try to do their own thing. Franchisors are the first to admit that franchisees can come up with excellent ideas to improve a whole system, but if some of their ideas are completely at odds with the brand offer and values then the franchisee may as well have bought an independent small business instead.

Not only do franchisees who fail to follow the system risk censure and even termination by their franchisor, but they often sabotage their own business in doing so, causing sales and profits to decline.

This is not an exhaustive list of reasons why franchisees fail.

Nor are these reasons independent of each other, and sometimes two or more are responsible for a franchisee’s business to collapse.

So now that you’ve read the top 10 reasons for a franchisee’s business to fail, what are you going to do differently to make sure that none of these happen to you?

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What are the

RISKS of being a franchisee?

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uying a franchised business is often seen by franchisees as a definite path to making large sums of money. This may be true for some, however, there are a number of inherent risks in buying a franchised business for potential franchisees which must not be ignored. These risks must be assessed, weighed up and considered in the overall decision of investing into a business.

JANE GARBERROSENZWEIG Principal at Gable Lawyers and a specialist in franchising and commercial law

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Grow your business through property investment with Property Club Franchises offered for the first time • nearly 5,000 Property Millionaires Club members and counting “Property Club is wholly dedicated to providing Australians with the opportunity of a better life through property investment. To celebrate 21 years in property, we are offering a limited number of Property Club franchises. This is a unique offer to be part of an organisation that has over 80,000 members and we’ve helped more people create million dollar property portfolios than any other property investment organisation with almost 5000 members now in our Property Millionaires Club. Take advantage of this exclusive opportunity by contacting us today.”

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UNREASONABLE EXPECTATIONS Franchisees often have extremely high expectations of the business they are buying, including its earning and growth potential. Some of these expectations may have been set as a result of information provided by the franchisor but in many cases it is a general perception of what the business in question should make as opposed to the reality and factual figures.

It should be remembered that even the most recognised brands will yield different financial results in different areas. The financial success of a franchised business will depend on its location, visibility, amount of rent and outgoings payable, higher competition in a particular area and the ability of the franchisee to operate and grow their business.

LACK OF SUPPORT One of the major benefits of franchising is being able to rely on the franchisor for support and guidance.

However, this may be lacking in some franchise systems. Every franchisor and their offering is different. Lots of consideration must be given to finding out how much support a particular franchisor offers, what is included and how willing the franchisor is to assist.

The best source of information in relation to the franchisorâ&#x20AC;&#x2122;s support is its current and past franchisees. Ask about training programs offered by the franchisor, both initial and on-going. Inquire about telephone support and the time it takes to obtain information or order product from an alternative source or sort out any issues arising in your business.

OVERSTRETCHING THE FINANCES One of the biggest mistakes in business, franchised or otherwise, is overcommitting financially. You must make sure that you have enough working capital and that you budget for 10 percent over the total anticipated cost, as budgets often blow out. Preparing forecasts and assessing all the financial information presented to you by the franchisor or the franchisee you are purchasing the business from are essential.

Assistance of an accountant is highly recommended to ensure that all financial considerations have been covered.

INABILITY TO FOLLOW THE SYSTEM Franchising involves operating under the franchisorâ&#x20AC;&#x2122;s name and using their systems. This

requires following the rules and procedures put in place by the franchisor. It also means that there is not much room to be entrepreneurial. If your personality does not deal well with taking directions from third parties, then franchising may not be for you.

NOT UNDERSTANDING THE DOCUMENTATION More and more often franchisees sign the franchise documentation on the dotted line without fully understanding what they are getting into, all of their obligations and procedural requirements of the franchisor.

This, in turn, leads to breaches of the franchise agreements and possible termination, resulting in the loss of the business and a loss of a large financial investment. Obtaining legal advice prior to entering into a franchise relationship is imperative to your future success.

Franchising soon - taking expressions of interest now

For further information please contact Max: Phone: 0422 849 493 | Email: max@taxmc.com.au MAR/APR 2016 | 58 | WWW.FRANCHISEBUSINESS.COM.AU

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NOT A WELLESTABLISHED FRANCHISE SYSTEM If you are considering entering into a franchise relationship within a new brand that has not been on the market long, there are additional risks of its long term viability. You need to do a much more thorough research in relation to the people behind the franchisor, its directors and investors, to ascertain their business background, experience in the same or similar industry, and likelihood of being able to grow this new brand into a successful franchise.

FRANCHISORâ&#x20AC;&#x2122;S FAILURE The reputation and success of your franchised business is directly dependent on that of the franchisor. Any difficulties that the franchisor encounters, will have a direct impact on your business. Further, if the

franchisor becomes bankrupt or insolvent, you may not have any business that you can operate, as you will no longer have the right to operate under their brand and in many cases the landlord will have the ability to terminate your lease agreement.

FIXED PAYMENTS Franchisees are usually required to pay a number of on-going payments to the franchisor, including royalty and marketing fees. These fees can be fixed or stated as a percentage and are payable at fixed intervals, which are usually on a monthly basis. Fees are still charged as a percentage of the franchiseeâ&#x20AC;&#x2122;s sales, so even when the business is not doing well, fees are still payable (albeit smaller amounts).

BAD REPUTATION The conduct of the franchisor or other franchisees

within the same system may give the brand a bad reputation and will be completely out of your control.

SALE OF YOUR BUSINESS If you want to sell your franchised business in the future, you will need to adhere to the procedure stated in your franchise agreement, which will include the potential purchaser being approved by the franchisor.

PRODUCT PURCHASE If your franchised business is product based, you will be required to purchase all products either from the franchisor or from an approved supplier. Such products may be marked up to a higher price than you could fi nd elsewhere, but you will be restricted as to where you can purchase products.

MAR/APR 2016 | 59 | WWW.FRANCHISEBUSINESS.COM.AU

RESTRAINT Most franchise agreements will impose a restraint of trade, restricting franchisees from operating a similar business within a certain radius from the premises or the territory of the franchisee for the duration of the agreement, and for a period post termination (or expiration).

You must understand the restrictions imposed upon you within the franchise agreement to ensure that you are not restricting yourself from job or business opportunities in the future.

Buying a franchise should not be a quick decision or a decision made lightly. Do your due diligence and assess all the risks. Please remember that professional advice is invaluable in ensuring that all potential risks are addressed.

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LOVE at first sight?

H

ow to pick right when buying a franchise.

Noha Shaheed suggests tips for a long term relationship.

You’re getting ready to meet the franchisor. Butterflies in your stomach, checking your interview notes over and over again. That’s when you’re not reassuring yourself that you’ll be fine because you love the brand and product so much.

It’s everything you believe in.

Their business values are your values. And surely the franchisor likes you if you’ve been picked for interview. You knew it was love at first sight when you saw the branding in your teens. The feeling inside was electric. And the franchisor is so nice and easy to talk to. It’s sure to be a great investment.

But we all know that a relationship is more than just the initial thrill of eyelash-batting, daydreaming at work, and intermittent blushes. Behind the perfectly posed, power couple photographs are the ups and downs, compromise, and hard work needed to keep those smiles genuine.

True love is a marathon, and a solid franchise relationship is no different. Behind those glitzy awards night pictures and annual conference fun times is a backstory of hard work that needs TLC too. It’s a balancing act of emotional appeal and practical thinking.

INITIAL IDEALISM THAT WILL HOOK YOU IN LOVE FOR BRAND It’s important to be passionate about the brand and what it stands for in order to franchise.

Without that drive, term agreements can seem like forever.

And as Confucius said, “choose a job you love, and you will never have to work a day in your life.”

LOVE FOR PRODUCT Believing in the product or service will also go a long way.

If you love the product, it will shine through to like-minded staff and to your customers. If it doesn’t, you might start asking yourself why you invested in the franchise .

ESTABLISHED BRAND Yes, an established brand nationally or even internationally

can work in your favour. Household names are recognized and loved in the community, so you don’t have to worry about the uncertainty of whether there is a market in place for your product or service. Often franchise networks within established brands come with a lot of support for franchisees.

SOCIETY SAYS YES Like a romance, business is a two-way street at the end of the day. To make profits and succeed, the market and overall community (including your own family) will ideally have a positive reaction to the franchise. Business creates business, and positive attention can also be a plus.

PRACTICAL POINTS THAT WILL KEEP YOU COMMITTED LEGAL When purchasing a franchise, what seems like dry paperwork is a must. Legal advice is necessary for understanding the structuring of your purchase, due diligence and franchise documentation, and contracts. Legal support is also available within most franchise

MAR/APR 2016 | 60 | WWW.FRANCHISEBUSINESS.COM.AU

networks for your perusal.

FINANCIAL We all know that dreams are a beautiful thought but are realised with the practical components. In the case of franchising, financials are a major practical feature for the investment. Having enough funding is integral to getting through the early stages of business when franchising, especially if there is downtime in the first few months or years.

ADMINISTRATIVE Time and time again, franchisors say that many potential franchisees underestimate the behind-the-scenes work required to run a business. This includes human resources, OH & S, overhead costs and maintenance, and local marketing.

Again, most franchise networks provide support for these aspects of the business, but as the franchisee, it’s your job to complete.

So before you go all in and put your cards on the table, make sure you’ve balanced out the sentimental value with the logical reasoning so you can live happily ever after!

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A premium slice MAR/APR 2016 | 64 | WWW.FRANCHISEBUSINESS.COM.AU

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H

ow much pizza is enough?

Apparently $3.6bn worth of cheese-topped, doughbased deliciousness.

That’s a lot of slices. Are you ready to invest in a pizza franchise?

According to the IbisWorld report Pizza Restaurants and Takeaway in 2014-15, there are 3,629 businesses in Australia with the largest market share estimated at 14.9 percent – Domino’s tops the league at nearly double the estimated market share of Eagle Boys', with the Yum! Restaurants’ Pizza Hut business listed in third position.

So if you’re looking to invest in a pizza business what are the benefits of investing in a franchise, and does it have to be one of the big boys? Is there room for a smaller brand to add value to the customer, and of course to the franchisee?

Here we speak to four brands in the market, and find out what approach they have to the fast moving sector and how innovation is driving business.

PIZZA TEMPTATIONS Whatever the business, the key to creating a space in the market for the smaller brand is having a point of difference.

ABOVE: TOWN & COUNTRY RIGHT: PIZZA TEMPTATIONS

That’s what is allowing Pizza Tempations, just in its very early days of franchising, to compete on a local level with Dominos, Pizza Capers, Crust as well as independents, says founder Daniel Pirrone-Cook.

For Pizza Temptations, it’s dessert. And nachos, and spaghetti Bolognese.

“I wanted to have pizza and pasta, we’ve slowly added to the menu,” he says.

“We are really big on customer service; getting to know the customers, we know their order, always smile, say hello and goodbye, just being aware of them.”

Competition is the big challenge for this fledgling business, so Pirrone-Cook uses Facebook campaigns and flyer drops to showcase new initiatives.

“I’ve got to be innovative, it brings in new customers.”

What is also effective as a marketing tool for this Queensland business is word of mouth.

“We rely on quality and I believe that beats everything, People will pay for it. We’re generous with our toppings. People see value for money.”

Large pizzas are priced from $15 to $20.

Online ordering systems were installed from the beginning and are increasingly important.

The franchise model is based on delivery and in-store business, seven nights a week from 5pm to 10pm.

New on the agenda for this fledgling MAR/APR 2016 | 65 | WWW.FRANCHISEBUSINESS.COM.AU

franchise could be the lunch market.

“We are opening about five more stores.

My main target is Queensland – Brisbane, Gold Coast – but would consider elsewhere.”

What Pirrone-Cook is cautious about is over-extending the footprint of the brand in a small area. “Opening up too many is cannibalism. The border for the territory should be about 16 minutes drive.

“I want to make sure there is enough business for franchisees to make money.”

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PIZZA SLICED

JOE ROSSI, TOWN & COUNTRY PIZZA

ESTIMATED MARKET SHARE

“I feel larger brands are helping smaller brands have more impact.” That’s the view of Joe Rossi of Town & Country Pizza.

Domino’s

There are always hurdles to overcome in business, and for this pizza chain managing product consistency with suppliers can be a challenge.

“The weather influencing the pineapple market, for instance. There is constant volatility but we are seeing an increase in produce quality.

“That’s partly our ability to turn to local suppliers, and partly because people are more educated about ingredients and so franchisees are putting pressure on their suppliers.

14 .9

%

It’s important, he says, for potential franchisees to see value in investing in a franchise rather than just opening a local pizzeria themselves. One particular advantage is local marketing support that can help give a franchise longevity, says Rossi.

Other

7.6%

5.8%

65.8%

Eagle Boys Pizza Hut RFG (Crust/Pizza Capers) 4% La Porchetta 1.9%

[Source: IbisWorld Pizza Restaurants and Takeaway in Australia Industry Report, June 2015]

“The majority of items come through single suppliers but with fruit and veg we source locally," Rossi explains. "We like to have an impact on the local community. And we

get better produce.

“Our operations team has to keep an eye on certain standards – there are three in the

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CONSTRUCTION, SUPPLY & SERVICE | FREECALL 1300 720 622 | PO BOX 137, ZILLMERE QLD 4034 MAR/APR 2016 | 66 | WWW.FRANCHISEBUSINESS.COM.AU

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team – not bad for an eight store chain.”

All locations are in Victoria. “We’ve a fairly good stronghold around Geelong, and we have a regional focus. We want a bigger piece of Victoria and will creep up the highway towards Melbourne.”

Rossi says “We want fewer stores doing very well rather than more stores doing not so well. We know we can do very well in some areas.”

While some stores are all-in-one outlets, the business offers two distinct service models which are appropriately located.

All the takeaway outlets and delivery stores are near a supermarket or in a shopping complex for convenience.

The destination café/restaurants are in high profile strips and the company is prepared to accommodate higher rents to get the right location, says Rossi.

When it comes to the menu, variety and innovation are key, says Rossi. Times have changed as customer tastes develop.

Ten years ago the prosciutto that is now

replacing the shredded ham wouldn’t have been seen.

“It’s partly exposure to European style cooking, with people prepared to pay a higher price,” Rossi says.

“We’re a 30 year old business. Innovation allows us to move on. Trends lead to more gourmet pizza but it will become mainstream product.

“It gives us a chance to increase our margins. We don’t want to cut our way to success.

“People will pay for a good product. You are only as good as the produce.”

In addition to pizza, the menu includes a range of pasta and risotto dishes. The customer split is about 63/35 pizza/pasta.

Town & Country Pizza’s customer base is predominantly women aged 25 to 40.

“It’s an opportunity to catch a bigger crowd. And pasta is increasingly popular.

It saves cooking at night, we get some

MAR/APR 2016 | 67 | WWW.FRANCHISEBUSINESS.COM.AU

OUT OF THE BOX The sector is expected to grow over the next five years by an annualised 2.1 percent to reach $4bn.

New markets for pizza franchises will be opened up with the expansion of the outer suburbs of capital cities as our population grows.

A steady growth in discretionary income “will continue to fuel the food movement that is sweeping across Australia”.

Competition will heat up and drive product innovation and increase technology expenditure as a result.

[Source: IbisWorld Pizza Restaurants and Takeaway in Australia Industry Report, June 2015]

people coming in three to four times a week.”

The business has been franchising for four

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years. It started with two stores and six have been opened.

“A line of people outside the store is hard to argue with,” he says.

WHAT’S OUR TASTE?

“We prefer hospitality experience but definitely need some level of acumen, although procedures are getting easier.”

Every brand has to have a digital focus, says Rossi. “It’s adapt or die. Domino’s has set the benchmark. There are a lot of third party providers but for smaller firms it’s just not in our favour, the costs are too big. We’re trying to develop our own proprietary systems. Going digital is an absolute must.”

DOMINO’S You won’t find Don Meij, CEO at Domino’s, disagreeing. Digital disruption has been the mantra for the pizza chain for some time now.

Traditional pizzas

Other products

“A lot of our enquiries ask about multiple units. But we’re tentative, we have no problem with offering help but need to know they are right for it. Franchisees understand that two to four stores can spread their operating costs.

16.4%

Pizza sides

42.7%

18.3%

22.6% Gourmet and specialty pizzas [Source: IbisWorld Pizza Restaurants and Takeaway in Australia Industry Report, June 2015]

There’s no doubt that the pizza market is very fast moving.

At Domino’s two thirds of the business has been online.

And the disruption continues with the recent launch of DLab, an innovation hub at the company’s Queensland head office.

“We’ve had stores last week [early February] doing 80 percent of their sales digitally."

“A lot has happened in our kitchen or technology software. Now we are moving into hardware,” says Meij. “Lots of people have great insights but don’t know how to bring them to life. This can help them research and innovate. It’s a good working environment.

The 55 year old business keeps reinventing itself. A franchisee in New Farm has beaten the benchmark set by Domino’s to deliver in 13 minutes – it can be done in 10 to 11.

“We want to encourage start-ups external to the business. We are after innovation in certain areas that are complementary [to us].

The mantra ‘Slow when it matters, fast when it counts’ has guided the development of improved processes. A slow approach is appropriate for the ingredients (natural and fresh) and for safe delivery driving, and time spent interacting with the customer on delivery. Where speed has an advantage is in the cooking time, and new technology has helped improve this.

“We’re very good about commercialising ideas, and we’re a potential customer - in return we get all the exposure to ideas.

“We’re getting bigger and inevitably you get corporate.”

Risk taking and innovative start-ups bring energy and fresh thinking to the market.

“We had four data touch points, now there are seven.”

“Our food is all natural and fresh, and we’re educating the customer about this."

“It’s incredibly important.”

The 10 minute delivery has been a significant change to the industry, Meij believes.

Meij cites what he describes as “breathtaking, a major breakthrough to us” – the capacity to reduce cooking a pizza to three minutes. It’s been achieved.

And customers are responding with positive ratings. “We monitor the impact on the brand, through net promoter scores, record scores.”

MAR/APR 2016 | 68 | WWW.FRANCHISEBUSINESS.COM.AU

The company has a 24/7 social media team, and an internal goal of responding to comments within 30 minutes.

“That’s live feedback, we’re very active.”

The business still undertakes traditional qualitative and quantative research but it serves to confirm the results of the live data, says Meij.

“We are well advanced in eliminating all artificial colours, flavours and preservatives from our menu, without sacrificing the great taste and we are on way to achieving this target within two years."

Meij highlights the name change as indicative of the business’ new direction: no longer Domino’s Pizza, but Domino’s.

“We do carry-out and have seats in many stores. We’ve gone beyond pizza. We’re more than a pizza company, we deliver chicken, desserts,” explains Meij, who started his career as a Domino’s driver. “I was out on the road last week delivering a $55 order and it was all desserts.”

That’s a big change from his early days in the business.

“We will continue to expand our menu.

We’re now the fastest delivery service in Australia for scale and size.”

So what is it that ultimately attracts new franchisees to the Domino’s network?

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DON MEIJ, CEO, DOMINO'S

CRUST GOURMET PIZZA The passion for change is on Crustâ&#x20AC;&#x2122;s menu too. Managing director Renee North says the company is always looking for ways to grow. Initiatives include GPS tracking, bespoke CRM solutions and operational efficiencies.

The Crust brand has been part of the Retail Food Group since 2012.

So North cites support for the franchisee and being consistently innovative as attractions for franchise buyers. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re invested in adapting to change.

Meij believes the answer is simple: it's all about profitability. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re growing, improving and itâ&#x20AC;&#x2122;s all about store economics. Itâ&#x20AC;&#x2122;s the franchisorâ&#x20AC;&#x2122;s job to give franchisees the ultimate tool box.

We do that, and we ask them to keep up the last mile.â&#x20AC;?

There are 60 new stores planned for Australia this year, with a long term

outlook of 900 outlets in three to four years.

Franchisees need to be able to embrace change. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s hard if you donâ&#x20AC;&#x2122;t like change. We donâ&#x20AC;&#x2122;t always ask them for additional investment.

The internet is a great big shopping mall.

They are getting access to this. Sometimes they have to invest in equipment.â&#x20AC;?

â&#x20AC;&#x153;In 2016 we want to understand and target the customer a bit better. How can we look to offer a bespoke service to customers?â&#x20AC;?

Crust appeals to young adults with disposable income: consumers use less traditional media and engage in digital channels. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got the challenge that customers are being bombarded so how do we stand out in the crowd? Weâ&#x20AC;&#x2122;re a really bold brand, not sophisticated as in posh, our customer

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MAR/APR 2016 | 70 | WWW.FRANCHISEBUSINESS.COM.AU

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consumer trend around health. We’re highlighting what’s naturally better for you in the ingredients, highlighting the natural goodness in pizzas.”

CRUST GOURMET PIZZA

So this year Crust is introducing a spelt grain, returning to house-cooked meats, and tightening up the supply chain with a focus on the paddock-to-plate process.

These changes will be implemented across some, but not all of the menu.

Everything is cooked in the pizza oven, the meats mixed with spices and oils. There is even a ginger-based pizza.

“There is strength in the brand, it has a really good track record, it has a good perception in the market for its service and gourmet offer.” base tends to be aspirational. So we speak to that level.

about price, says North, it’s higher quality product and service.

“Gourmet is almost a consumer expectation. Everyone is trying to add ingredients but for us it’s a founding principle: original, new ingredients.

It’s usual for the business to relaunch the menu in March, and this year is just the same. The new look menu has an emphasis on premium quality.

Customers are spending more but it’s not

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MAR/APR 2016 | 71 | WWW.FRANCHISEBUSINESS.COM.AU

FR1115_000_POS

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Colouring the future J

ust about all of us cut our hair on a regular basis. We might get an extra treatment too. Our maturing citizens are keen to keep age at bay. And thatâ&#x20AC;&#x2122;s good news for the hairdressing services who are taking up the challenge.

MAR/APR 2016 | 73 | WWW.FRANCHISEBUSINESS.COM.AU

HAIR BY FRANCK PROVOST PARIS

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The latest IbisWorld industry report on hairdressing and barber franchises was released in November 2015, and outlines the challenges and current successes of the marketplace.

So what do you need to know?

Let’s start with the current statistics.

In 2015-16 the sector (which comprises 47 businesses) accrued revenue of $343.2m, made a profit of $38.8m, and paid wages of $86.1m.

Annual growth from 2011 to 2016 is calculated at 1.4 percent; a slightly lower growth predicted for the next five years to 2021: 1.2 percent.

It’s not huge growth but it is steady.

And because getting a regular haircut really is considered an essential part of our lives, we will continue to visit the hair salon. Of course there are dips in spend when the economy tightens and as a result customers either postpone the cut or choose not to indulge in the more discretionary services such as colouring, treatments and styling.

What is driving performance of this sector is population growth. Add to this an ageing population, and it’s good news for the industry.

As the IbisWorld report highlights, “As consumers grow older they are often keen to keep signs of maturity at bay, and may opt for colouring grey hair. This boosts demand for hair colouring services, driving industry performance.”

Also contributing to revenue growth is the expanding market of increasingly image-conscious male consumers.

The average weekly hours worked is one of the key external drivers for the sector – and the 2015-16 period is expected to show a fall.

When consumers are faced with shorter working hours and less discretionary income, it becomes common for them to cut back their visits to salons and turn to home-based treatments. That was the experience back in 2011-12 when consumer confidence was weak and DIY solutions were popular. But the busier their lives and the stronger the household income, the easier it is to for consumers to find a salon visit an essential, suggests IbisWorld analyst Arna Richardson.

For any hairdressing business the principle challenge is attracting customer loyalty. With a high level of independent salons operating around the country, it’s essential for brands

to differentiate themselves through price or service.

either

While there are lots of independent hair salons opening and closing the report suggests “franchisees are less susceptible to failure as they receive substantial support from franchise owners.”

Franchisees typically pay advertising fees of about three percent to fund the brand’s marketing campaigns, and with a large network, the franchised hairdressing chains can implement effective marketing schemes.

Increasingly common is the use of digital tools to communicate with consumers, whether that is through apps, mobile websites or social media channels.

But despite all the brand initiatives, a customer’s loyalty to one salon can be seriously affected by a hairdresser leaving the business. And there is generally a high rate of staff turnover in hair salons.

ATTRACTING NEW BUSINESS This is a concern that the Franck Provost Paris chain is working to address.

Jean-Francois Carré, master franchisor for the French-based chain, explains.

MAR/APR 2016 | 74 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCK PROVOST PARIS

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“To do this you have to have a brand, training, artistic awards, conventions.

We work hard to attract and keep them. It’s not an easy industry. It can be difficult and tiring.”

According to Job Outlook, an Australian Government initiative, research in 2014 indicated that just over half of qualified hairdressers were working full time (54.8 percent).

chisees in the network, with some of those not trained in haircutting finding their hands-on role working in the salon reception. There are hands-off investors too, but Carré says this works best in shopping centres where the approach is more commercial rather than community focused.

“Once you have the brand, the concept, it relies on location, team and management.”

The outlook for the years to 2019 is positive, with the number of job openings for hairdressers (that includes both new jobs and turnover).

At the end of the day, it all comes back to the customer.

Staff retention can be a big challenge for franchisees.

“As a franchisee, you need to work on your team, make them feel as good as possible, then they will look after your clients.”

“Management is an option,” says Carré “We offer other layers.

“There’s a centralised call service because it’s hard for hairdressers to take enquiries and make bookings, and it’s not good for a quality service.

The whole point of a franchise is support. There are lots of tools, an operations manual. We can do marketing, do the books.

“We provide franchisees with business aspects to make sure they are profitable.”

At the Franck Provost chain, franchisees don’t need to be hairdressers.

There’s a mixed background of fran-

At Hairhouse Warehouse Peter Fiasco echoes this view. “The most challenging part for a franchisee is finding and keeping the right people. Our business is primarily a people business. It’s all about the experience our customers have in our stores, and ensuring we keep finding those great people to serve our customer and create those experiences for them is the most challenging.

“We cannot say that we have a typical franchisee. Our franchisees come from various walks of life – people who have had no experience within the hair and beauty industry, to people who have grown up living and breathing Hairhouse Warehouse.

“We also have a lot of franchisees who are couples, and this can work somewhat well, where one person is the face of the store while the other focuses on back of house requirements.

However, at Hairhouse Warehouse, we have developed a model over the years where it works just as well if they are a one person operator.”

There is no doubt that for franchisees in this sector the costs of employing staff are significant, accounting for about one quarter of revenue.

This is a labour intensive industry so a considerable portion of hairdressers and barbers are employed as part-time or casual employees, which lowers the average wage. However, with penalty rates required for Sunday and public holiday work, very common among chains dependent on shopping centre traffic, the Franck Provost business is considering options such as closing on public holidays or introducing surcharges.

Of course fierce competition in the industry has helped push up rental costs too.

To keep and build on the estimated 11 percent profit that hairdressers are pulling in, it is imperative to look to increasing margins, and draw on a large and loyal customer base.

The IbisWorld report highlights

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expanded from France around the world, clocking up a spread of 3000 salons worldwide.

So how does a brand with a global reputation but very little awareness or market share in Australia extend its footprint?

Carré highlights four essentials in the business: point of difference, relevance, awareness and reputation and image – but he puts differentiation and reputation as the top two contenders.

“Hairdressing is all about trust, particularly at the high end. Franck Provost is an international brand, it has the legitimacy of a Parisian brand, and that defi nitely helps,” Carré says.

Of course customers have expectations from a high end brand.

HAIRHOUSE WAREHOUSE

the need for franchised hairdressing chains to make their mark in a sector dominated by independents.

There’s an imperative for brands to fi nd their own niche and attract and retain customers.

Fiasco highlights what makes Hairhouse Warehouse different from competitors.

“Hairhouse is a true hybrid model. Our business has more than one income stream, both services and product.

We aim to be the best we can be in both streams. We have the largest hair product range in the industry with the strongest margins, as well as exclusive ranges that customers cannot access anywhere else, including our competitors or online.”

Franchisees can add to the hair services and product line-up with beauty treatments, bringing in another opportunity for customer spend.

“The Hairhouse Warehouse relies on both our strong profile including our national and local marketing, but we just as importantly work hard to ensure we have the right locations that provide our franchisees with the maximum walk-by traffic to also convert to customers.”

For head office, the biggest challenge right now is finding franchisees in

specific locations the business is targeting, particularly in regional areas.

“Interestingly enough, these regional areas also provide the best opportunities for prospective franchisees as they can own the hair and beauty market in that specific region,” Fiasco points out.

EXPANDING THE NETWORK Hairhouse Warehouse is going through its largest expansion ever, he says. It is already listed in the IbisWorld report as the second biggest franchised player in the Australian marketplace, just five percent less market share (22 percent) than fellow Aussie brand Just Cuts, which has 185 franchises across Australia and New Zealand. The Price Attack business has significantly lower market share at 14.4 percent; Toni & Guy, the business that started in London in the 1960s’ heyday of hairdressing and arrived in Australia in 1995, holds a six percent share.

The remaining 30 percent of the market is taken up by other brands.

So for Hairhouse Warehouse the goal for the next five years is to achieve 170 stores nationwide, and to have a footprint in at least two international markets.

In reverse, Franck Provost Paris has

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“There’s a promise to the client that you will deliver – that comes through training,” he says.

“We are very proud of our service and customer satisfaction is our highest priority. The lowest score on review websites for our salons is 4.3 out of 5.”

Carré cites Toni & Guy as its main competition. “It’s more expensive and edgy. Franck Provost is a commercial cut – the French are known for timeless beauty and glamour. Franck Provost is accessible luxury – it’s not cheap because it’s high quality.

“Hair colour at a premium salon is core business – for us it’s our main expertise.”

At Hairhouse Warehouse it’s all in the name. It has been part of the Australian hair care scene since it was founded in 1992 by brothers Tony and Joseph Lattouf.

“Part of our strategy is to be a multibrand business within the hair and beauty industry,” says Peter Fiasco.

“We have further plans to expand this new brand, as well as acquiring further complementary businesses that fit into our portfolio.

“We are close to being able to announce the acquisition of another beauty brand,” he reveals.

THE COFFEE CLUB IS ONE OF AUSTRALIA’S LEADING FRANCHISE BUSINESSES, WITH OVER 25 YEARS EXPERIENCE IN DELIVERING HIGH

INDUSTRY STANDARDS FOR OUR FRANCHISEES AND CUSTOMERS. We have more than 200 franchisees who own and operate over 300 stores across Australia. An opportunity to “Join The Club” provides not only a robust business opportunity, but also a chance to own a piece of a strong brand entity within a supportive network.

With a solid pipeline of new stores, The Coffee Club is always on the lookout for the right franchisees to work with us as we pursue our Vision.

In addition to our new franchisees, we are proud to have some of the longest standing franchisees in the industry with many of our Franchise Business Partners celebrating 10, 15 and even 18 years with our brand.

The best part about The Coffee Club franchising model is our stores are locally owned and operated by passionate people who are determined to cater to the needs of their community.

Once your store opens, you’ll also have a personal Business Development Manager to guide you through your business venture. As both mentor and coach, your Business Development Manager will work with you to develop a business plan to help you achieve growth and success.

To find out more contact Matt Vidler on 0417 639 837 or email matt.vidler@coffeeclub.com.au

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SOURCING

THE B2B

BUSINESS T

he business to business (B2B) industry, which focuses on the exchange of products or services between companies, has become a growing source of revenue for small business.

Traditionally, outsourcing business processes has involved office administrative tasks such as consultancy and bookkeeping; it now encompasses IT, customer service, marketing, HR, etc. Organisations engage in B2B solutions to reduce costs and maximise economies of scale (proportionate saving in costs achieved by an increased level of production).

An IbisWorld report finds that although there are no major players in the industry, over the next five years through 2020-21 it is estimated to expand at 3.1 percent annually to $36.6bn.

Firms incorporating new technology to streamline operations have also added to this growth, and provided a wider range of integrated services to customers at less cost.

Growth is also expected to climb as companies increasingly desire high-quality, specialised IT services provided by Australian-based BPO companies.

However, as the technological space progresses vigorously, risks associated with managing

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third-party companies have also jumped.

One benefit for the market is the level of competition in the market as a result of small to medium sized businesses offering niche products and services.

Here we find out whatâ&#x20AC;&#x2122;s happening in the Australian market from key B2B franchises, including Brian Tracy International, MBE, Watchouse, MAS Tax Accountants, ATS, Pack & Send, and InXpress.

BRIAN TRACY INTERNATIONAL At Brian Tracy International, the training and coaching of individuals and organisations

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is the speciality. With origins in Canadian Brian Tracy’s topselling books on professional and personal achievement, B2B franchises operate in more than 32 countries.

Brian Tracy International.

“One of the key things is that our services are not commodities and are not price sensitive,’ Phillips explains.

Phillips says that company outsourcing has been beneficial for the B2B business. However, he says that a common misconception of potential franchisees is that the business is easy.

Andrew Phillips, owner and managing director of Brian Tracy International Australia/ NZ/UK/Ireland, believes emotional intelligence and having the right mindset are key skills required to succeed in franchising.

“(There are) low overheads and control of your own time.”

“Read the fine print,” he advises.

“It’s not a walk in the park.”

He also mentions the established franchisor branding, service quality, and history of intellectual properly as a plus.

He stresses the importance of managing time, of self-discipline, and having realistic expectations of the business.

Franchisees should have clarity on their five to 10 year goals and why they are signing up.

“A high level of emotional intelligence and communication skills are needed,” Phillips says. In short, he says franchisees need to be able to talk to both a small business owner and a CEO. In his view, there are two key benefits to B2B franchising at

However, Phillips makes it clear that there is a high failure rate with franchisees when there is a skills mismatch.

He believes potential franchisees need to be self-aware about their communication and behaviour styles, as well their motivation.

This is to ensure an appropriate match to the business.

In his view, the first 12 to 24 weeks requires some hard work.

“Part time gets part time results,” he says. “There is no shotgun approach.”

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MAIL BOXES ETC. (MBE) Franchise development manager, Paul Kasper of MBE, which specialises in B2B franchising of design, print, and shipping services, says that the main skills needed are an outgoing personality and professional, communication skills.

As learning is key to franchising, Kasper explains that potential franchisees need to have a “teachable spirit”.

In his view, the benefits of joining a B2B franchise like MBE is the lifestyle and support from the system. Typical working hours are 8:30pm to 5:30pm.

However, to potential franchisees Kasper recommends

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“Do your homework and due diligence. Don’t make rash decisions; make the right choice for you and your family,” he advises. “Talk to franchisees on the ground.”

B2B business allows for other organisations to engage businesses that specialise in services, but MBE’s suppliers are also competitors, which creates an interesting dynamic.

Kasper believes many potential franchisees underestimate the extent of the role beyond the day-to-day.

“There are so many hats you’ve got to wear,” Kasper explains. In his view, this is something franchisees learn on the job.

“You have to think about OH & S, operations, sales, staffing” because “you’re it”.

WATCHOUSE MANAGEMENT SERVICES Offering opportunities to start a private security company, Watchouse is tapping into the need for professionally branded security guard companies.

Owner Shawn Delaney says a background in law enforcement or security is generally preferably for this B2B business. An interest and skill in crime prevention is also a plus. He says the benefits of the franchise model are the professional branding, access to apply for government contacts, prepare tenders, registration, ID, and uniform. “(We) open the door of opportunity and business development,” says Delaney.

He also says that eight out

of 10 people who start up their own security business don’t make it past five years.

This is why he recommends investing with a professional company like Watchouse which has an established brand and trading record.

Watchouse’s reputation, he says, allows for success because companies tend to outsource to the specialist B2B security services franchise.

But he explains the business is well suited to people with the background in security and crime prevention considering the competitive nature of industry.

MAS TAX ACCOUNTANTS CEO of MAS Tax Accountants, Alan Maddick, highlights the importance for franchisees to be confident and

capable of building long term relationships with clients in B2B business. MAS Tax offers tax, accounting, and fi nancial services (mortgages and fi nancial advice) to families and small business clients.

“You have to be confident in front of people,” says Maddick, when explaining the importance of developing richer, long term relationships with clients.

Franchisees who don’t realise how much work goes into client relationships often end up dissatisfied. He explains that key challenges of the business are time management and prioritising.

Maddick says that outsourcing has been integral to the growth of the business, as MAS Tax provides services to smaller businesses that don’t necessarily have a department to take

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care of bookkeeping or training.

Maddick believes that potential franchisees should be able to understand the sales process and be comfortable in that side of the job.

APPLIANCE TAGGING SERVICES Providing electrical safety assessments, and testing and reporting management systems, ATS looks for motivated and passionate people with a strong work ethic.

Time management, responsiveness, and the ability to secure contacts are integral to selling the service to national organisations. Steve Wren, national sales manager, says that the network developed from client base to secure business is very important, as well as a good CRM (Customer Relationship Management) system.

“Essentially, when you’ve done a deal with a group of people, it’s much easier to get work,” says Wren.

He says reputation is a big part of the business, and work is often obtained by referral or recommendation.

Wren explains that franchisees don’t always appreciate the complexity of a B2B business.

He says that when working for franchise networks, communicating with a franchisor on behalf of franchisees can sometimes cause communication gaps.

“Big business doesn’t necessarily mean better,” he says. “The left hand needs to know what the right hand is doing.”

This is why he advises that it’s important to be good at all areas of business.

Wren says that a trend for outsourcing has been beneficial for the B2B business. As well as the networking benefits, systems such as Google Ad words have made it easy for firms to find ATS. Where businesses haven’t invested in electrical safety assessments, and testing and reporting management systems, ATS provides it.

customer needs, the ability to communicate with middle management and business owners. The benefits of the franchise model are mainly the lifestyle, which ensures normal business trading hours. Other perks include access to e-commerce to earn income, and technology to help sell.

PACK & SEND

“It’s a no-limits philosophy,” says Paul. However, he highlights the importance of franchisee proactiveness, and the need for them to have a marketing campaign and use social media to increase business.

Michael Paul, CEO of Pack & Send, says that a key function of B2B companies is selling solutions to other businesses.

There is a “trend of companies outsourcing what is not core to their business,” he says.

The company specialises in brand servicing e-commerce logistics, parcel, and freight delivery solutions.

He believes franchisees require an understanding of

Franchisees need to understand the power of social media platforms for gaining business, he explains.

“You can’t wait for all the customers to come to you,” he explains. “Networking is important.”

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FR0315_000_MAR

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WOW what a year in franchising since the new Franchise Code has come in!

2016 looks like another busy year in Franchising with Overseas investment and companies entering the Australian market COMPLIANCE ISSUES Robert, Marianne and Natassja in our franchise group have been extremely busy with new and overseas Franchisors upgrading their agreements to comply with the Code.

Overseas Franchisors coming into the Australian market require their franchise documents to be updated to comply with the Code and also meet their financial disclosure obligations under the Code.

NEW FRANCHISORS We are acting for a number of new and exciting Franchise systems in a wide range of areas such as Retail, Food and Hospitality, Childcare, Fitness and Health, Online sales and other Business to Business Service Industries.

We love being part of such a dynamic industry and acting for Local and International clients.

DISPUTE RESOLUTION There have been a number of recent high profile franchise failures where Franchisors have been placed into Voluntary Administration and Liquidation.

We have been advising a number of Franchisees in these systems as to their rights and obligations including their options in dealing with shopping centre landlords and Administrators.

We have also been involved in a number of mediations under the Code acting for both Franchisors and Franchisees aimed to resolve disputes so the parties can get on with business or negotiate an exit.

We provide a full range of services to our business clients in the areas of Leasing, Employment Law, Intellectual Property, Contract law, and Dispute Resolution.

We also provide the full suite of franchise services to our franchise clients which include Franchisors, Master Franchisors and Franchisees.

Marsh & Maher are members of: • The Franchise Council of Australia (FCA).

• International Franchise Lawyers Association (IFLA) being a network of specialist franchise and licensing lawyers worldwide. We can therefore refer Australian Franchisors to reputable and experienced advisors worldwide.

• US Commercial Service – assisting US companies to establish business in Australia; and • Themislink European Lawyers Network.

We also have a network of experienced consultants who are FCA members to assist our new franchisor clients to ensure the success of their franchise system, which includes accountants, feasibility, site selection, territory planning and developing operations, manuals and franchisor systems.

Our recent experience includes: • Acting for overseas companies from Germany, France, Sri Lanka, Thailand, Greece, Hong Kong, New Zealand and the US to establish their business operations and franchise system.

• Assisting multiple Franchisees to renegotiate their franchise agreements with their franchisor and in mediation.

• Preparation, review and renegotiation of Master Franchise Agreements.

• Advice on corporate structures for Licencing and Distribution systems.

• Acting for multiple Franchisees in dispute with a Franchisor.

• Upgrade of Franchise documents to comply with the Franchise Code 2015.

• Advice to Franchisees for a fixed fee.

• Applying for Third Line Forcing exemption from the ACCC. • Strategic advice to Franchisors and Franchisees.

Robert and Marianne have over 35 years of industry knowledge and experience.

We provide clients with fixed fees based on the scope of services where possible so our clients can monitor and budget for their legal costs.

Please contact Robert or Marianne

FRANCHISE LICENSING AND RETAIL GROUP

Robert Toth Partner (03) 9604 9405 rxt@marshmaher.com.au

Marianne Marchesi Senior Associate (03) 9604 9413 mim@marshmaher.com.au

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His advice for potential franchisees is to manage their time and productivity well. Paul believes franchisees need to “ensure they allocate a period of time a week or a day scheduled to marketing and sales activity.”

He calls this discipline the “10 before 11” approach where 10 contacts should be called by the franchisee before 11 am on an average day.

the financial gain that comes from dealing with large scale clients. There is plenty of support in the system and the flexibility of being able to run the business from home.

Some organisations don’t have the finances to carry out the shipping services that InXpress offers so it makes sense for them to outsource.

And it’s easy too.

INXPRESS InXpress is a global courier and freight sales consulting B2B franchise. Glen McKay, general manager, believes the key to successful franchising is that franchisees have confidence and courage.

“The crucial thing is the ability to sell themselves,” he says. Franchisees need ‘drive and motivation’ at the face of a challenge.

McKay says that one of the top perks of the B2B franchises is

“We can offer multiple carriers under one income,” he says.

McKay highlights the challenges of cash control when starting up, managing finance, and the variables of the business flow: sometimes franchisees will be flat out, and other times there will be down time.

Regardless of the challenges, franchisees should keep going, he suggests. “Mistakes happen. Keep to the vision, keep motivated.”

HOW TO MAKE A SUCCESS IN A B2B FRANCHISE According to the IbisWorld report, the key success factors of a B2B business are:

✱ Streamlined processes: lesser process will allow for the most efficient and cost-effective solutions. ✱ Strong communication and negotiation skills: the broad nature of the outsourcing business industry means that effective communication to articulate the benefits of their services will win contracts. ✱ Product has low operating costs: as clients look to B2B businesses to reduce their own costs, it is important for outsourcers to minimise costs of their own operation to avoid adding to client costs. ✱ Ability of vary services to suit different needs: to maintain client business, outsources need to be flexible and provide bespoke products and services tailored to client needs. ✱ Effective quality control: industry players must ensure sufficient quality control to maintain excellent service to clients, and secure future business.

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From the

BOARDROOM to the HANDYMAN VAN

T

he handyman business has been on the rise for the past five years as time poor consumers rely on the franchises for odd jobs around the house, repairs, and renovations, writes Noha Shaheed.

According to a report by Service Seeking, renovation costs in NSW rose by 8.11 percent year-on-year, and approximately 52,000 quotes were submitted by tradesman on their website.

CEO Jeremy Levitt says homeowners are investing in their existing properties through value-adding renovations which has pushed prices up.”

The demand for renovation work shows the rise of the handyman business, highlighting the importance of service providers offering versatile home improvement services. A report by IbisWorld highlights: ‘Industry operators

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are typically sole traders that perform of range of jobs such as gardening, building maintenance, plumbing, fencing and painting.’

The opportunities in the industry have expanded and diversified, as independent service providers sign up on franchised businesses to boost their exposure and competitive edge. This means that tradesmen will need to broaden their skills and be innovative to compete. In a world where word of mouth is more effective than branding, handyman franchisees need to project excellent service and keep customers talking about their brand. Not to mention price.

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Another IbisWorld report finds “Franchises that provide quality services at affordable prices are generally able to retain existing clients, increase franchise reputation and potentially take business from rival franchises.”

The report suggests there is a moderate level of market share concentration with three businesses – Jim’s Group, VIP Home Services and Hire A Hubby – which make up for 48.4 percent of the market share.

The rest of the sector is highly varied.

I work harder than I did before, but I can modify my workload to balance my family life

IbisWorld’s report reads “Market share concentration has remained relatively stable over the past five years, as major players have had to contend with their own market saturation despite demand growth for handyman services.

Over the coming years, this is not expected to change significantly. This is due to the difficulty of individual businesses to expand nationally; a franchisee is not likely to travel interstate to perform work. Due to the competitive nature of the industry, new national franchises will find it hard to break into the industry.”

In this arena the majority of the jobs are generic, not demanding specialist work but still at a level higher than most consumers could perform.

Consumer sentiment is a significant indicator of demand for franchisees: a positive outlook gives consumers confidence to spend on repairing or renovating their property.

While households are the major source of income in the industry, commercial property owners, builders and property managers can also leverage business for the handyman.

For those brands already running, it has been a lucrative time. The demand for labourintensive tasks has increased over the past five years, while revenue for the next five years

is expected to reach $1003.9m in 2019-20.

One of the top three groups, Hire A Hubby, specialises in a wide range of DIY services for residences and commercial offices. More than a third of the ‘Hubbies’ decided to ‘hang up their suit’, grab a tool belt, and run their own handyman franchise. We talk to a few Sydney-based Hubbies to find out more.

NEIL: MAKING A DIFFERENCE For Neil Gibbons, becoming a Hire A Hubby for the Ryde and Gladesville area allowed him to work in a field that he really enjoyed. After about 27 years working in the corporate world as a successful vice president for Citibank, Gibbons revisited his passion for tinkering with things, pulling objects apart and putting them back together.

Another motivation to looking for something different from the finance and banking industry was his young family.

Although the corporate world enabled him to travel overseas, he says “It sounds really flashy, but it’s not much fun when you have kids.”

He discusses the importance of job satisfaction as a franchisee compared to working at Citibank.

“There is a lot more job satisfaction than in corporate because over there you’re working hard for the shareholder, but as a franchisee you have more personal control and change people’s lives,’ Gibbons says.

He also mentions that franchising is rewarding, flexible, and that he’s “proud of the brand”.

With that said, he admits to some concerns he had before leaving the security of his previous role. Financial benefits of a full time role such as super, pay, and leave entitlements, as well as the fear

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of the unknown all played a part. The risk and uncertainly of going into franchising at the time, with a hefty mortgage on the cards were also at play.

However, he doesn’t miss the high stress of his previous role, and finds his now job rewarding and flexible.

A typical day as a franchisee is full of variety, and comprises of taking constant phone calls from clients, planning and carrying out jobs, researching materials to provide quotes, completing invoices, and other paperwork.

“You are the whole business in one person,” Gibbons says.

He is inundated with so much work due to word of mouth.

“Don’t ever underestimate the power of a mum network,’ he says, laughing.

He also elaborates on the level of support available from the Hire A Hubby network.

He explains that there was a gentleman’s agreement when it came to new clients and their locations.

"We’re not in competition with each other,’ he explains. ‘You buy into the network and you’re not limited to your territories."

His tips for those looking to invest in a Hire A Hubby franchise? Be organised, excel in time management, know the product, and deliver the best service. He adds that practicality is the key to success, as well as thinking like a businessman.

“What we do is play Tetris.

Some blocks are easy and some blocks are hard,” Gibbons says.

He also advises franchisees to start engaging staff when at 80 percent capacity to keep on top of customer enquiries and keep business moving forward.

MEET CLIVE: DOING WHAT HE LOVES A former policeman, Clive Milward initially worked in the

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building industry after leaving school, but then joined the police force, where he worked for 22 years. After watching a home improvement show with Scotty Cam featuring Hire A Hubby, he bought the Hoxton Park franchise.

"My passion has always been for building things, making things, and fixing things," Milward says.

Job satisfaction and work life balance were major drivers in the decision to franchise.

It allows him to achieve that balance as well as financial security. In his view, buying a franchise was buying into stability because support is available. He also didn’t have to worry about branding as it was already established, allowing him that work life balance.

"We don’t live to work, we work to live," he says.

As he employs staff members, his day-to-day routine includes supervision and oversight of larger scale jobs being done, completing smaller jobs such as fixing locks, providing quotes, and managing the business.

To those considering heading up a handyman franchise, Milward suggests research is key, as well as knowing what it is franchisees want to get out if the business. He also advises having a solid plan and understanding how human resources works when having employees. Milward says that support from the system is also available, which is a plus.

SIMON: FINDING THE WORK-LIFE BALANCE After starting out as a trainee designer and then working in retail marketing for 20 years, Simon Steiner joined a Hire A Hubby at the suggestion of his wife who noticed he was always completing handyman jobs for friends and family around the house.

His previous role also required him to travel. With a young family and a wife who travelled for her job, it became very difficult finding that balance.

He says that work life balance in a job that allowed him to spend time with his family was a major driver for buying a franchise.

"I had young kids," Steiner says "Life was just a juggle.

"Now I have work life balance.

I work harder than I did before, but I can modify my workload to balance family life."

Despite his concerns about the income security of the role and a fear of failure, Steiner said he has great job satisfaction and has found building relationships has helped make him the go-to handyman for clients.

His advice for those interested in franchising is about being practical and aware of all elements of the job.

Four months ago he hired a full time employee and has really invested himself in the business.

"People underestimate what’s behind the scenes," he explains.

"It’s hard work upfront.’"He looked at a lot of franchises before choosing Hire A Hubby; he says he was buying into the system equipped with support.

"I haven’t looked back," he admits. "It’s been a rewarding experience."

"As a business, the way they’ve set it up; it’s really professional," Steiner says.

MAR/APR 2016 | 89 | WWW.FRANCHISEBUSINESS.COM.AU

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Exhibiting

THE BEST

of Sydney’s franchises

T

he Sydney Franchising and Business Opportunities Expo is the go-to for franchising information to turn your business dreams into a reality.

The expo features successful exhibitors from all walks of franchise, including brands from food and beverage, health and fitness, and even maintenance and business services. Financial and legal advice is also at your fingertips. There are a range of seminars available for your perusal, as well as access to professional bodies like the Australian Competition and Consumer Commission (ACCC) and the Fair Work Ombudsman for further information.

THE BRANDS, THE COUNCIL, AND THE MAG So, what’s in it for you? You’ve got the fi nance. You’ve got the drive. This preface will be your GPS for the expo. The event will be a whirlwind of household brand names, up-andcomers, and an array of advice go-tos. The Franchise Council of Australia will even be ready for any head scratchers you might have. Not to mention our own stand with the Franchising team on hand to chat about all things franchising. Good thing we’ll be upfront!

So which franchise is right for you? We look at a few different exhibitors setting up camp at the expo.

CHILDREN’S CLOTHING WITH CLASS: MINI RAXEVSKY If you love children’s fashion and are looking for a two-way investment, Mini Raxevsky might be the franchise for you.

Mini Raxevsky is an international children’s fashion brand. The company designs, manufactures and delivers the final products to its customers through franchised retail outlets.

We spoke to Andrew Stachurski, master franchisor of the brand in Australia. In his view, potential franchisees need a vision of success, and to feel passionate about fashion and elegance. Open mindedness and the ability to adopt and follow a proven system are key traits, regardless of age.

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Xpresso Delights 2, 3 or 4 day a week business offers genuine semi-passive income.

How? Let our premium fully automatic coffee machines do the work for you, they make the coffees while you earn the income. Plus you get to choose the days and hours you would like to work.

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At Xpresso Delight, we are in the corporate workplace coffee market.

We offer a business opportunity like no other, operating within a market that loves and accepts our unique product and service. Plus you benefit from over 12 years experience with our proven systems, training and support.

Xpresso Delight provides a cafe quality experience right inside the workplace. Our client Locations enjoy all their favourite coffees and even hot chocolate all at the press of a button. Plus they enjoy our 5 Star Concierge Coffee Service that only Xpresso Delight can deliver.

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“In my opinion the most important aspect in choosing the franchising business is to find one that fits perfectly with life style and desires of the potential franchisee,’ he states.

RETAILING CHILDREN'S CLOTHING

A common misconception is that franchisors will provide everything for the franchisee. He stresses the importance of ensuring that a franchise satisfies an individual’s lifestyle and passion, instead of just choosing to “look at the bottom line”.

Dimitra Raxevsky, owner and the heart and soul behind the company, will be present and supporting the brand at the Sydney expo.

INDUSTRY SPECIALISTS: FRONTLINE DIAGNOSTICS If working with national clients in the B2B (business to business) world is more in line with your interests, Frontline Diagnostics may be your calling.

As the founding company in the drug and alcohol testing industry, Frontline Diagnostics was the first to be accredited by NATA (National Association of Testing Authorities) and ISO 9001 (criteria for a quality management system).

“For us, children are our priority and designing children clothes is more than just profession. We want to see joy painted in their eyes and contentment reflected in the eyes of theirs parents when selecting our product,” he explains.

Michael White, managing director of Frontline Diagnostics, says franchisees that have brought up children are generally preferred due to their ability to manage others, and have a “highly tuned BS detector”. People with a strong, supportive family and that are socially conscious are also a preference.

“We are very selective about our staff and our franchisees,” White says.

He also discusses the benefits of the franchise model.

“The process begins with you, but then we continually support and guide you because we don’t just want you as a partner, we want you to succeed as well,” he says.

The franchising support from Mini Raxevsky includes all the elements that integrate the boutique setup and then its proper operation in order to give the business opportunity to success.

Stachurski says other perks of the model include: ✱ Global brand with unique designs and quality of product: the Mini Raxevsky team oversees the production process from design, fabric selection to garment quality control. ✱ New designs released twice a year: new design collections are introduced twice a year. Elegant retail outlets: boutiques create a pleasant customer experience. ✱ Successful positioning: boutique locations are carefully selected to ensure high margin which leads to profit. No more than 30 boutiques in total are planned across Australia. ✱ Flexible exit option: the option to hand the franchise back over to the master franchisee comes at no cost to the franchisee.

Stachurski also explains that potential franchisees need to be sure that they can financially support the investment, study the co-operation scheme, and analyse the franchisor’s track record.

A potential franchisee needs to choose a business that sparks their interests and passion.

MAR/APR 2016 | 92 | WWW.FRANCHISEBUSINESS.COM.AU

USE THE EXPO TO FIND A FRANCHISE

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MAKE A HEALTHY BUSINESS CHOICE

JOIN SUMOSALAD, AUSTRALIA’S LARGEST HEALTHY FAST FOOD CHAIN, IN OUR JOURNEY TO MAKE AUSTRALIA A HEALTHIER PLACE.

“I bought two Sumo stores as I saw a great future with SUMO. I love how the whole team work together to make the brand better and better!”

Victoria based multi-unit SumoSalad franchisee Emma Li

Visit www.sumosaladfranchise.com or contact Andrew Wild at andreww@sumosalad.com for all the information you need to make a healthy business choice.

SumoSalad Franchising Full Page Ad - Cirrus Media MAR 16 - 2.indd 1

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“One franchise owner who has the wrong attitude to teamwork and service delivery can soil the efforts of a hundred other skilled professionals.

“We have spent (17) years planning it and waiting until we could deliver a highly tuned and professional support system that is unique and innovative,” he explains.

The benefits of the franchise model, he says, are: ✱ A rewarding career: following the training and mentoring program franchisees can be instrumental in saving dozens of individuals and their families from substance abuse. ✱ A steady income: there is a national support network and there is no restriction on how much franchisees can earn. As an established business, the potential risk of failure is reduced. ✱ Network support: a national fleet of mobile testing clinics is available, which can provide support at any time to the franchisee. The support office will run as a virtual office for the franchise owner for all messages, booking schedules, laboratory results interpretation and general office printing. ✱ Cutting edge technology: all job data, testing details and administration, including financial remuneration and accounting, can be managed electronically.

White explains that some of the challenges associated to the business are:

The company’s products are all organically-certified and use natural all-Australian ingredients. Even the gift vouchers are environmentally-conscious, as they include no waste and no excess packaging.

“We have an ethically-sound, environmentally-friendly offering.

That’s a key focus of ours,” adds Stewart. She adds that a lot of potential franchisees underestimate the hard work required in the first three to four years.

This is why it is important for franchisees to take advantage of the benefits of the franchise model, which include. ✱ Comprehensive, in-house training: from basic training, to management education, and followed by annual mandatory training. ✱ Collaborative and passion nurturing: as a brand, Endota Spa likes to work with franchisees that are willing and eager to be collaborative and allows for more independence as different stores come with various markets and demographics to work with. ✱ Network support: franchisees have access to a group marketing fund, leasing advice, and even HR advice from the support centre.

“When you join Endota Spa you’re joining a very strong network, and you’re never alone,” says Stewart.

✱ Remote working: working in a virtual team means that a good support office is important. ✱ Developing franchise territories: franchise territories are planned so that franchisees can work to build a highly lucrative asset which can then be resold.

His advice for those looking to franchise is to have a commitment to delivering a successful outcome in order to profit.

“A franchise opportunity is a short cut to success through initiative and a good work ethic,” he says.

ENDOTA SPA: ETHICAL AND ENVIRONMENTALLY-FRIENDLY Endota Spa is Australia’s largest day spa network specialising in treatment services and organic skincare products, and has more than 90 locations nationwide. Emma Stewart, Endota business development, highlights the importance of collaboration with franchisees.

‘We look to form ‘business partnerships’ with our franchisees, and give them a greater sense of independence than they might get in other franchise systems,’ she says.

“As a brand, Endota Spa likes to work with franchisees that are willing and eager to be collaborative.”

Stewart says that franchisees tend to be people who are passionate about the brand, enjoy customer service, and create beautiful spaces. She adds that finances and experience in running a small business are a plus, but belief and passion are fundamental.

“It’s obvious when someone comes to us and they’re passionate about Endota and the business,’ Stewart says. “That’s very important to what we do.”

MAR/APR 2016 | 94 | WWW.FRANCHISEBUSINESS.COM.AU

AN ENDOTA SPA TREATMENT ROOM

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UNLOCK YOUR POTENTIAL WITH THE INXPRESS FRANCHISE MODEL

InXpress delivers customers with international and national freight advantages to gain a competitive edge. As an authorised sales partner for world class carrier DHL and domestic partner for TNT, Startrack and Toll, InXpress offers customers a complete suite of courier and freight solutions which deliver outstanding value and savings. This coupled with local personalised services from local InXpress franchise owners, makes InXpress the clear choice for leading import and export business customers.

AS AN INXPRESS FRANCHISEE YOU CAN GROW YOUR BUSINESS WITH International InXpress Network operating for over 16 years Proven Business Model Intensive and ongoing training and support Low entry costs A business designed to suit your lifestyle Own your own business, generate residual income and secure your financial future with an InXpress Franchise.

For more information on joining the InXpress Franchising Team call David on 0412 692 052

OPERATING FOR OVER

16 YEARS in 13 countries

NATIONAL AFFILIATIONS

OUR AWARDS

Shaun Birley, Franchisee Sydney

G L O B A L

R E A C H

Phone: 1300 469 773

W I T H

A

P E R S O N A L

email: sales.au@inxpress.com

T O U C H

www.inxpress.com.au

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However, he says that franchisees should “be prepared to work hard,” as a common misconception is that the business is easy and that the franchisor will do everything. He also advises those interested to “have sufficient cash for two years” in case there is some turbulence on the path to success.

DON BROCK, REFRESH INNOVATIONS FRANCHISEE

PEOPLE FIRST AT POOLWERX Award winning pool and spa care franchise Poolwerx is part of a thriving sector and strong industry, according to franchise development manager, Mark Geddes. The pool franchise, he says, is part of a strong industry, and “service sector which is thriving.”

Other perks of the business include:

A REFRESHING NATIONAL BRAND: REFRESH RENOVATIONS As the first national brand in the renovations market, Refresh Renovations is tapping into the increasing demands for home improvement in Australia. Mark Zilm, general manager Australia, says that the renovation industry is a $30 bn industry, which is why Refresh Renovations is the “Wikipedia for Renovations.”

Zilm says the benefits of the franchise model are that it is a scalable model that can be as large as a franchisee could want. There are “targets in place, but no ceiling.” Also, support from the network is available for IT and marketing systems.

He says potential franchisees need to be “business minded”, provide excellent service, and have an interest and passion in renovations. He adds that many franchisees have 10 to 15 years’ experience in the business.

✱ Unrestricted services: franchisees can explore the multifaceted nature of services available at Poolwerx, including retail, customer service, and e-commerce. ✱ Training and support: franchisees are provided with on board training and support, as well as national assistance for marketing and HR, as well as field officer assistance for general support. ✱ Franchisee satisfaction: Poolwerx runs annual research to review franchisee satisfaction, and has been listed in the top 10 in this category (topfranchise.com.au) ✱ Career growth: Poolwerx comes with a four step career path, with a malleable size and earning potential (from a single van to multi business). ✱ Solution for seasonal business: as the pool industry is seasonal, franchisees are able to work with commercial clients during downtime.

One of the challenges for franchisees is understanding that finance is important, he says, especially for the first nine months before real revenue starts to kick in. Zilm also advises that potential franchisees be aware of behind-the-scenes admin like HR and OH & S. However, he is confident in the industry’s potential.

“It’s no fad,” Zilm says. “People always need food, clothing, and shelter.”

FIFO CAPITAL: A BUSINESS WITH A LIFESTYLE Specialising in providing cash flow solutions in the form of short term business funding, Fifo Capital is a privately owned advocate of business. Neil McMillan, managing director, says that the main perks of the business is its lifestyle.

“Franchisees can work from home to suit their needs,” he explains.

“They can tailor work around the school run.”

With no staff to manage or premises to run, the franchise comes with low overheads. Support is also ingrained in the system, with support staff sporting 20 years of experience.

McMillan says candidates best suited to the franchise are confident and able to represent the business.

He believes experience and technical skills can be developed. He also adds that Fifo Capital has a “low risk business model”.

MAR/APR 2016 | 96 | WWW.FRANCHISEBUSINESS.COM.AU

COME AND SAY HELLO TO THE FRANCHISE BUSINESS TEAM

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Geddes says the key skills required in franchisees are the motivation, values, integrity, and desire to succeed. An ability to handle the financial side of the business is also integral, and experience highly regarded. Good communication and a can-do attitude will also go a long way.

“The key to success is having the right attitude and drive,” he explains.

However, Geddes says that potential franchisees should be aware of the “transitional time and steep learning curve initially.”

He advises those interested to conduct research by speaking to existing franchisees, choose a franchise they are passionate about, and make sure they are committed.

SYDNEY FRANCHISING & BUSINESS OPPORTUNITIES EXPO When: Where:

18 to 20 March 2016 Royal Hall of Industries, 1 Driver Avenue, Moore Park NSW 2021 Open: 10am to 5pm daily Tickets: Tickets available online, use the code FMG Visit www.franchisingexpo.com.au to fi nd out more

Xpresso Mobile Cafés operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts.

We supply premium Di Bella Coffee products – both hot and cold.

Frappés, energy drinks, cold brew coffee products, bottles of water and food options such as gourmet cookies that are designed to compliment the enjoyment of an awesome espresso coffee.

An Xpresso Mobile Café is perfect for corporate and school/ community events. Ask us about our unique school fundraising programs!

We also stock Di Bella Coffee specialty capsules that fit the ‘Nespresso’ pod machine. Both of these services are unique to Australia!

MAR/APR 2016 | 97 | WWW.FRANCHISEBUSINESS.COM.AU

POOL TESTING

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Doctor IN THE HOUSE D

ean Reid heads up the Leather Doctor franchise chain. His brother Casey takes care of the franchise development. Oh, then there is youngest brother Phil who handles franchisee training.

Add in the all-important Geoff, the patriarch of the family who first bought a franchise with Leather Doctor – he’s now a director and shareholder, a product development manager, and oversees new franchisee training. It’s quite a family affair.

But that’s not the start of the story. The business began as a one person operation in Brisbane in 1989 as simply The Vinyl Doctor.

The repair expertise was in demand for cracked dashboards, car door trims, consoles and the occasional piece of furniture.

In the late 1990s the company saw the increasing popularity of leather furniture matched with improved technology for repairing, cleaning and recolouring leather, added a leather service and rebranded as The Leather Doctor.

Dean takes up the tale.

“My father Geoff started as a franchisee with The Leather Doctor in 1997 working from our family home in Brisbane.

“Within five years I had bought my own franchise on the Gold Coast (after a spell as a brand manager with Mars in Albury/ Wodonga). I had watched Dad work in the business for a few years and saw potential for its growth, so I got involved.

A year later, Casey got involved working with Dad. “Over the next three years, and after testing a lot of our ideas on our own franchises, we bought the business from the original owner who had no plans to expand nationally. We began franchising around the country straight away, selling our first franchise in Perth in 2005.

“By this time, my youngest brother Phil had got involved working for Casey.

“By 2010 we had established the additional brands of Care Cover, The Timber Doctor and MSi to accommodate the growth and set up our head office here on the Gold Coast.

“It was at this time that we had to get off the tools, and stop running our own franchise territory and focus full time on building a management team.”

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THE VALUE OF THE BUSINESS Casey explains how the management team brought innovation into the business.

“We have a custom build job tracking system that we developed from scratch called System 1. It was originally developed to enable our large national furniture clients to keep track of their jobs. It proved an amazing success and System 1 now has tens of thousands of jobs logged and hence a database of individuals and business clients.

“This year we have started looking at ways to better utilise the database in The Leather Doctor franchise system and incorporate an on-line marketing and lead generation strategy to further build on this database. This has our management team and franchisees rather energised as it means we will soon not only be able to provide commercial jobs to our franchisees, but also large amounts of private sector jobs too.”

Last year five existing franchisees took up the option to expand their own businesses with a second territory.

“Franchisees making additional purchases is a strong indication that our business is a really good investment opportunity,”

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year in at least one of these two regions.”

FROM LEFT: CASEY, GEOFF, PHIL AND DEAN REID

And there’s no standing still in the domestic market either. The Timber Doctor and The Fabric Doctor are brand extensions launched here in Australia.

“Each of these independent franchises has capacity for 50 franchisees so as an overall franchise group we expect our total number to increase to 200 within the next five years,” Reid says.

As it stands The Leather Doctor has 67 operators, 57 of whom are franchisees, with that number set to rise to 100 over the next five years.

A further 10 franchises are available in Sydney with territories throughout Melbourne and Adelaide too.

explains Casey. “Existing franchisees clearly see the value and these are the people who know the system intimately.”

employees and several vehicles, with an office also in neighbouring emirate Abu Dhabi,” Dean says.

And now the business has gone overseas, granting a master franchise licence for the UAE.

“We are in the process of working with our Dubai master franchisees to expand into Africa and India. This is still in the early stages, however we expect to grant a master franchise for the Leather Doctor brand sometime towards the middle of this

“After a return visit 18 months after start up, the Dubai team had grown to over 20

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“The potential is endless. We focus on all things in and around the home, office, hotel, gym etc. In today’s busy society, people don’t have time to bring large furniture items to a workshop to be repaired.

“Also, there are many items we work on that simply cannot be removed from their location, so a mobile service is essential. Anything made of leather, vinyl, timber or fabric is potentially our market,” Dean says.

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UNLOCKING the key to franchisee success: Brent Giblin

F

rom cutting keys and engravings to making the cut at 2015 MYOB FCA Excellence in Franchising Awards - Brent Giblin is the proud 2015 winner of the FCA Franchisee of the Year- single unit, with less than two staff.

And it’s only the beginning.

“Every day is different,” he says. “You’re always on your toes.”

Giblin says that the specialised nature of the business means that the challenges of running a store was “getting the right team” that could serve customers properly.

There is only one other staff member in the business. When he was hiring a staff member, Giblin was focused on employing someone with an outgoing nature and the ability to converse easily.

Currently the franchisee of the Shellharbour Mr Minit franchise, Giblin has been working for the brand for 10 years, and running the franchise for four years. Under the Mr Minit model, employees are required to prove they can run the business successfully before being given franchising opportunities.

“I got to work in the business for quite a while before taking over a franchise,” Giblin says.

After business began to pick up in Shellharbour and more customers were on the horizon, he realised he needed help to run the store. He says he wanted to maintain a leadership role within his team.

Giblin highlights one of the benefits of the particular franchise model is the required experience working for the brand before being able to franchise.

He mentions the benefits of low startup costs, and support from the network.

Giblin says an average day is not set in stone, mainly due to the unique nature of customer enquiries at Mr Minit which offers services such as shoe repairs, keys, engravings, watches. He believes the main focus should be customer service.

“The customer service side is most important to me,” Giblin explains.

“Technical skills can be taught.”

His advice for anyone considering signing up to a franchise as opposed to investing in a their own start up is to focus onf the support. Franchises are established and provide most of the things required such a branding, support, store items he says.

That’s quite unlike a start up which comes with more uncertainty and things to take care of.

“You’re really on your own (in a start up),” he says.

So where to next for Giblin? What does the future hold?

MAN WITH A VAN He says that he would certainly like to go into multi-unit franchising with the brand, but via the new mobile Mr Minit.

The concept involves a van and allows Mr Minit be portable, and assist customers where they are. Giblin explains that the mobile Mr Minit is currently in pilot stage.

So stay tuned.

ENGRAVING HIS NAME OVERSEAS Busy times are coming up for Giblin. Since the FCA win, he’s been moving upwards and onwards. He’s been awarded a competitive scholarship in Japan for high achievement at Mr Minit.

‘You have to apply for it to get in,’ he explains.

He flies over to Japan for a week in March where he will visit the Tokyo Mr Minit store, support office, and shoe repair.

He’ll even get to work half a day in their store, and visit Kyoto for some sightseeing and culture. It will be a great opportunity to share his experiences and develop professionally.

“I’m taking my family with me,” he says gleefully.

After he returns from the trip, he will be able to share what he’s learnt in the Mr Minit franchise conference in May.

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JOIN THE

TEAM AT SNOOZE

Wake up to a fresh new career with Snooze.

If you’ve always dreamed about owning your own business, becoming a Snooze Franchise Partner might be just what you’re looking for. Snooze is proudly owned by Steinhoff International, this means if you become a Snooze Franchise Partner you won’t just be joining one of Australia’s most successful bedding specialist retailers, you’ll enjoy the backing of a global organisation.

Our tried and tested business model has seen our business grow to 78 stores nationally, combined with our training program, support and your winning attitude this could be the start of an exciting and new career path. Stop dreaming and enquire now about becoming a Snooze Franchise Partner.

Vendor Finance Available to Approved Applicants

It’s amazing what a little snooze can do. snooze.com.au

For more details visit snooze.com.au Or email Bettina Davis, Network Development Manager - bettina.davis@snooze.com.au

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&

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A

nytime Fitness Australia has a new chief.

Arthur McColl is an experienced fitness industry executive and Franchising magazine caught up with him to find out what will change at this 24/7 gym chain.

Chairman and co-founder of Anytime Fitness Australia, Justin McDonell, has a vision for the brand to continue as the largest health club chain in Australia, offering franchisees a long term, profitable and sustainable brand.

“Our core product is convenient fitness, so this will maintain at our core, but you see additional programs to support our members added through face to face connections and technology,” McDonell says.

The strategy for the future includes adding Arthur McColl as CEO. In 2003, McColl spent three years in Australia as vice president for Living Well, and has left his role as chief operating officer of LA Fitness in the UK to take the reigns at Anytime Fitness.

In the first few weeks of his appointment, McColl has presented plans for the year to franchisees. The strategy is to focus on the following: better processes and data, more innovation, getting better people on board, simplifying systems and creating a bottom-up culture.

Q. WHAT DO YOU BRING TO THE AUSSIE NETWORK OF 432 OUTLETS? A. “I’ve had 30 years in health clubs but I’m new to franchising.

I have a passion for people and the industry, strong integrity and I’m tenacious. I’ve listened to the market, and understand the business – I have a knack of getting to the point, and I build teams and culture.

ARTHUR MCCOLL

“I see with fresh eyes. Our strategy is not to drive a huge increase in outlets. We will help franchisees to grow, mature and be successful.”

Q. ANYTIME FITNESS HAS A STRONG FOOTPRINT ACROSS AUSTRALIA. IS THERE STILL ROOM FOR NEW FRANCHISEES? A. “There are opportunities, and we certainly have a lot of enquiries. It’s about being smart with new opportunities, following the growth of new housing.

“I’m seeing multi-site management, which is good for everyone concerned. Franchisees see value in moving to two, and then three to five outlets really work because there’s more infrastructure.

“Quite a few have eight to 10 clubs – one owner has just bought the rights to Italy, and another one to Sweden.”

Q. ARE FRANCHISEES THE SAME NOW AS THEY WERE WHEN THE BUSINESS STARTED? A. “We have owners from all backgrounds and multiple brands. I’m amazed about the number of experts we have in lots of areas.

“We are seven years old and have a five year agreement.

Some owners are looking to renew and move to larger premises, a lot more are looking for multi-units.

“Opening the fourth or fifth outlet is much more challenging than the first three. So we provide business coaching.”

Q. WHY DID YOU APPOINT A HEAD OF FITNESS? A. “It’s all in the name. We have people who are incredibly knowledgeable and the Australian user is more fitness savvy than in the UK or US, but we want someone to implement and project manage

things like member engagement initiatives, more research, putting the fitness back into the business; team education and engagement, whether it’s through the club environment or a digital channel.

Clients have different needs and reasons. As a brand, there is a real sense of community, and a convenience factor.”

“Sam Theyers worked for me in the UK. He has multi-site club experience he knows how to work in the constraints of the model, and he brings a lot of practical skills.

A. “For a start, by not being complacent. We need to improve marketing and improve support but also let franchisees look in the mirror.

Clubs need good hygiene, to be welcoming to the customer, to maintain consistency. We need to magnify this message.”

“He’s also very personable and great on camera, so he’s good for training and presentations.

“How do we educate on how to improve lifestyle? He’s here to drive a fairly tight process.”

Q. WHAT CHALLENGES DOES THE BUSINESS FACE? A. “The challenge is communicating to members or team, to get cut through. And as the club network matures, there’s the challenge to refresh clubs and the space, add more relevant equipment, tweak the brand.

“It’s a challenge not to compete on price. We are moving towards specialisation and personalisation, and need to convince the owners of this.

“People want instant gratification, but one size doesn’t fit.

MAR/APR 2016 | 103 | WWW.FRANCHISEBUSINESS.COM.AU

Q. HOW WILL YOU IMPLEMENT CHANGE?

Q. WHAT NEW PRODUCTS AND SYSTEMS WILL WE SEE? A. “A mobile app is fairly advanced. We’re looking at support for the customer because you can’t out-train a bad diet. We need to look at other issues such as nutrition and stress.

“On the technical side, we’ve been working in the background. And have a very aggressive approach on data so we can keep members informed about keeping fit and healthy.

“And we’re working on a good quality CRM [customer relationship management system].

“Anytime Fitness tries harder than most.”

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FAST T R ACK TO

F

S U CCE S S

astway Couriers is a great success story. And it’s tapping into a multi-billion dollar boom in online retail.

Now Aramex, a global logistics firm based in the UAE, has just acquired the Fastway business in Australia and New Zealand.

FROM LEFT: OTHMAN ALJEDA, CEO OF ARAMEX ASIA; RICHARD THAME; BRUCE SPEERS, FASTWAY GLOBAL MD; HUSSEIN HACHEM

It’s an exciting time for Fastway which, under the direction of Australian CEO Richard Thame, has embraced and sought out technical innovations in response to the growing online customer spend.

The world of Fastway has for years been focused on business-to-business deliveries. Now e-commerce has transformed the business model.

of the logistics service as drop-off and pick-up points.

When you consider that with EBay as a customer an online delivery business could access 10 million customers you get a size of the scale of the future. Thame says, “We’ve got the scale to achieve but we’re agile too.”

Hachem sees how this puts the customer at the heart of the business. “Traditional freight companies have dictated the terms, this puts the power back with the customer. And the consumer will decide on the service level.

It’s the e-commerce world that Aramex has experience with. Hussein Hachem, CEO at Aramex, says “We will see what we can do to facilitate this in the Australian community, deploying our technology, giving the consumer more choices in courier, freight, payment and total visibility on the process.

We’re one of the few with technology and infrastructure to cope with this.”

“When you measure delivery performance, you might be achieving 97 to 99 percent.

But while you’re doing that, the customer is not happy. We really need to measure sentiment, that’s most important.”

Digital algorithms that can help predict spikes in business in the consumer world will be a boon to franchisees. Then there’s the very 21st century trend for crowdsourcing which can be harnessed to allow franchisees to employ casual couriers to take on extra business on an occasional basis.

It’s all about moving on from a traditional model. Take the disruptive Parcel Connect business. It allows retailers to become part

It’s about real time data measuring the happiness journey, he says.

Thame points out that the technology serves to make couriers more profitable.

This acquisition will fast-track the business, he says. “For us it’s speed to market.

For franchisees it’s exciting innovation that impacts the value of their business immediately.”

investment for franchisees at the moment.

This acquisition was the only opportunity to grow the business to this level.

“Integration is well underway, we don’t have legacy equipment. Our franchisees are motivated about the change.”

Fastway will be focused on four more territories in regional areas this year and, says Thame, will continue to grow aggressively.

Further technical developments are in the pipeline: online payment through Apple or Android, service rating and a couriertracking app.

Almost all new customers come through e-commerce. Fastway can claim OzSale as a client, Aramex lists The Iconic in its portfolio.

“There is a conversion trend in every market,” Hachem says. “We really need to be ready. Technology is moving so fast.

Exponential growth - 3D printing, robotics, drones.”

Leveraging technology is key, says Thame.

There is a new income stream with an international outbound courier service.

“It has a good margin, and there’s no real

“Our sweet spot always been SMEs. We like to pick winners, we're really proud of what we’ve been doing. ”

MAR/APR 2016 | 104 | WWW.FRANCHISEBUSINESS.COM.AU

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LEGALESE

6 RAYNIA THEODORE is a principal at MST Lawyers and has extensive experience in corporate, franchising and leasing law.

P

THINGS TO AVOID in your franchise agreement

urchasing a franchise is often considered to be less risky than purchasing a business that is not part of a franchise system. This might be true, but no matter how profitable a business appears, there are many issues to consider prior to signing an agreement to buy a franchised business.

The franchise agreement is the most important document in the suite of documents a prospective franchisee will have to sign as it will govern the legal relationship between the franchisor and the prospective franchisee. Below are six things franchisees should try and avoid in a franchise agreement.

franchisees to the territory. Franchisees should review the non-compliance provisions and insist the franchise agreement allows the franchisee ample opportunity to improve its performance.

1. TERM AND RENEWAL RESTRICTIONS

It is imperative that franchisees understand the grounds upon which a franchise agreement can be terminated by a franchisor and ensure these grounds accord with the Franchising Code of Conduct. Franchisees should look out for and avoid other clauses that allow the franchisor to terminate the franchise agreement on notice.

Some franchise agreement offer an option to renew the agreement, others do not. If an option to renew is not offered and the initial term is not very long the franchisee should consider requesting a further option. This may make it easier for a franchisee to raise finance to fund the acquisition of the franchise. Without an option to renew the franchisee will be at the mercy of the franchisor at the end of the franchise agreement.

Even an option to renew does not guarantee renewal.

Renewal is usually subject to the franchisee complying with conditions, including payment of a renewal fee, refurbishment of premises and signing the franchisor’s ‘then current’ franchise agreement, which may be different from the franchise agreement originally signed. Franchisees should ensure the conditions of renewal are reasonable.

4. TERMINATION

5. RESTRAINTS In most franchise agreements the franchisee is restrained from being in any way involved in a competing business within a specified area for a particular period after the end of the agreement.

The Code provides some protection in that it specifies some limited circumstances in which the restraints in a franchise agreement will not be enforceable. Franchisees should consider negotiating releases from restraints in circumstances such as the franchisor becoming insolvent.

2. TERRITORIAL ENCROACHMENT

6. UNILATERAL CHANGES

Some franchise agreements are limited to a particular site, some grant a territory. A territory may be nonexclusive or exclusive (but quite narrow). Franchisees could request a larger territory. If that cannot be negotiated, a franchisee may prefer a first right to be offered a franchise in a neighbouring area.

Franchise agreements often give the franchisor the ability to change the agreement unilaterally in ways that may not be immediately obvious. Look for the ability for the franchisor to change things such as menus, approved goods and services, standards, intellectual property and fees from time to time or in accordance with the operations manual.

Even with exclusive territories there can be exceptions e.g. the franchisor and other franchisees can sell products or services online. Franchisees should endeavour to limit the exceptions in the franchise agreement.

3. MINIMUM PERFORMANCE CRITERIA Consequences of failure to meet minimum performance criteria typically include requirements to attend further training. Non-compliance may also have severe consequences such as the franchisor appointing other

These types of clauses enable the franchisor to make changes to the system and the franchisee’s franchise agreement which may ultimately mean the franchisee incurs costs. Changes, especially to fees, may also affect the profitability of the business.

Before signing a franchise agreement it is critical to read all the documents and undertake extensive research, ask questions of the franchisor aand seek the advice of an experienced franchising lawyer and accountant.

MAR/APR 2016 | 106 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

Is franchising too

regulated?

ANDREW TERRY Professor of Business Regulation, The University of Sydney Business School

O

ver three decades ago Henry Bosch, chairman of the agency that is now the Australian Securities and Investments Commission, commented “it is a fact of modern life that economic and social growth depends on a highly complex economy which requires sophisticated rules and enforcement procedures across a wide range of activities”.

Regulation is omnipresent, all encompassing and complex. It is not easy. We don’t particularly like it but we can’t do without it. When it adversely impacts on us we will question its appropriateness, its balance and its unintended consequences. If we are beneficiaries of the regulatory regime our attitude to it may of course be quite different.

Any regulation is difficult. Regulation impacting on entrepreneurial activity is particularly difficult: how to encourage entrepreneurship while protecting the interests of the more vulnerable stakeholders? Franchising is a classic example. It is an entrepreneurial activity for both franchisor and franchisee but the typical franchisee is an atypical entrepreneur. It is a business to business commercial relationship that has much in common with a business to consumer relationship. Although some franchisees – such as those who are Australian master franchisees with rights granted by offshore systems to open, or franchise outlets, within Australia – are substantial enterprises, most franchisees in Australia more closely resemble the “mom and pop” model who are particularly vulnerable to the information and power imbalance inherent in the typical franchise relationship.

It no doubt reflects the complexity, and consequences, of the franchise relationship that franchising has the dubious honour of being the most inquired into business sector in Australia. An English speaking alien from another galaxy with an interest in regulatory issues (there really are such creatures) who drops into Australia on a voyage of discovery may be surprised to find that franchising is more inquired into and reported on than drugs, sex and rock and roll. Franchising in Australia was only a few years old when the Swanson Report in 1976 raised issues relating to termination of franchise agreements and reports and, more recently, regulatory action has followed at regular intervals.

As a result of this regulatory interest in franchising, Australia has the world’s most rigorous regulatory regime for franchising. The Franchising Code of Conduct is of course the most prominent expression of this. Only about a quarter of the world’s franchising sectors have dedicated franchise regulation and ours is the most comprehensive. But there’s more! Australia’s underlying laws of general application – which apply to all business activities, including franchising, are also much stronger than that of most other countries.

Our laws prohibiting misleading conduct, unconscionable conduct and unfair contract terms have few parallels internationally.

So, back to the question “is franchising too regulated in Australia?” The obligations of regulation are imposed primarily on franchisors and some may answer this question with a resounding “yes’. But Australia is also universally acknowledged as one of the world’s leading franchise sectors and it is my very strongly held opinion that our robust regulatory regime is entitled to much of the credit for our enviable international standing.

I wrote many years ago that franchisees are damaged and franchising is diminished by the unethical practices of franchisors without the commitment, the ability or the experience to deliver on the promise of franchising. Regulation cannot guarantee success or profit but it can at least remove from the equation those prospective franchisors who are not prepared to commit to the standards imposed by law as well as providing a degree of comfort to those prospective franchisees considering entering the sector.

The Australian regulatory experience has, in my opinion, been overwhelmingly positive. Regulation has undoubtedly raised the bar for acceptable franchising practices. This has resulted in better franchisors, more confident franchisees and a franchising sector which is the envy of most countries.

MAR/APR 2016 | 108 | WWW.FRANCHISEBUSINESS.COM.AU

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FR0316_110

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LEADERSHIP

Do you have a

FRANCHISEE MINDSET? KARLI FURMAGE is a trainer, coach and writer. Contact karli@goglobal. consulting

T

here are a lot of factors influencing your success as a franchisee. Your experience, the skill of the franchisor, the location, the brand, the support, the staff you employ, the customers you serve, the product or services you sell, what happens in the market, the global economy… it’s a long list.

Some of these factors are in your control and some are not.

One factor firmly in your control is your mindset. The importance of what goes on in the squishy grey matter between your ears is a significant influence on how your journey as a franchisee will play out… a triumphant success future generations will write songs about or a cautionary tale franchisors will use to scare new franchisees?

Our mindset is the established set of beliefs, attitudes or assumptions we all hold. Our mindset determines how we respond to events, challenges, issues and opportunities. Let’s look at an example.

Cathy has a mobile mortgage franchise and was extremely successful in the small regional centre where she operated. For the last eight years Cathy had been the only mobile mortgage broker, then a competitor set up shop on her turf.

If Cathy’s mindset was optimistic, she may hold the view her clients were loyal and she believed she was capable of tackling a challenge head on. How do you think she would deal with this development? Most likely, she would jump on the front foot, plot ways to firm up her client base, perhaps do extra promotions, maybe even

explore ways to work with the competition. Her mindset would drive her to be solution focused.

What if Cathy believed this was the greatest catastrophe any franchise had ever dealt with in the history of franchising? Her mindset was negative, she felt hard done by and really angry. She believed the situation was hopeless and she might as well just give up now.

In this situation which Cathy has the best chance of continuing to successfully run her business?

upset… the trick for mastering our mindset is to acknowledge and work through those feelings and then find a more helpful state. Determined to resolve the situation, motivated to find a fix, open to help, confident the set back can be overcome… all mindsets that increase our chances of positive outcomes.

In your franchise career you will face setbacks, challenges and difficult times. A key staff member leaves, you lose an important customer, the franchisor makes a decision that negatively impacts your business, you get some thumping feedback or like Cathy, a competitor opens up.

All these things [and many, many more!] will happen. The key to not just struggling through the tough times, but thriving is your mindset.

Is your success?

mindset

geared

Our mindset shapes our behaviour.

We are in control of our minds [although it doesn’t feel like it sometimes. We’re talking to you middle-of-the-night-brain that just won’t stop!]. We can control our thoughts and set our mindset for success. How? Bad things happen, we face challenges and that’s life. Managing your mindset isn’t about repressing negative emotions [we’ve got to feel the feels!] but being aware of your feelings, your attitudes and beliefs, working through them and making the choice to look at a situation from a more constructive point of view.

Something bad happens and we feel angry, sad, disillusioned, negative,

MAR/APR 2016 | 110 | WWW.FRANCHISEBUSINESS.COM.AU

the trick for mastering out mindset is to acknlowledge and work through those feelings and then find a more helpful state

for

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CHECKLIST

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:

Are you confident in the franchisor?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

What training is available and who pays for it?

Have you evaluated the financial returns?

Who owns the intellectual property and what is licensed to the franchisee?

Do you know all the expenses franchisees are required to pay?

What marketing will the franchisor implement?

Have you worked out your operating costs?

Who pays for the marketing?

Do you know the term of the agreement?

What is the dispute resolution process?

Is the business operating from fixed or mobile premises?

Do you know what it is like to be a franchisee?

Are you working within a territory?

If so, is the area exclusive?

Can you assign the franchised business?

Are you restricted in your product purchase?

How can the franchisor or franchisee terminate the Franchise Agreement?

Are you required to reach a minimum performance level?

What restrictions are there on the franchisee and guarantor operating a similar business?

MAR/APR 2016 | 111 | WWW.FRANCHISEBUSINESS.COM.AU

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DIRECTORY

ASIA-PACIFIC CENTRE FOR FRANCHISING EXCELLENCE A pre-entry franchise education program is available for free and online through this centre. Funded by the ACCC this course aims to help franchisees understand the process of due diligence and have realistic expectations of what it means to be a franchisee.

The Centre was launched by Griffith University in 2008 and undertakes research on franchising best practice. The research helps inform policy and team members regularly engage with government bodies and franchise associations across the Asia-Pacific.

VISIT: WWW.FRANCHISE.EDU.AU

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC) The ACCC is an independent Commonwealth statutory authority that is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.

directory of government and business associations, planning templates, business videos, and business checklists.

Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training.

VISIT: WWW.BUSINESS.GOV.AU

FRANCHISE COUNCIL OF AUSTRALIA (FCA) The FCA is the main body for representing franchisees, franchisors and service providers in the $131 billion franchise sector in Australia.

Becoming a member of the FCA is voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees.

VISIT: WWW.FRANCHISE.ORG.AU

FRANCHISE BUSINESS

Its role is to protect, strengthen and improve the way competition works in Australian markets and industries. The ACCC also regulates the Franchising Code of Conduct (Code) which is a mandatory industry code that applies to parties involved in a franchise agreement, namely the franchisor and franchisee. The purpose of the Code is to regulate the conduct of the parties involved and if allegedly breached prompts investigations by the ACCC.

As the online arm of Franchising magazine, this website is focused on providing essential advice and information for anyone looking to invest in a franchise - short and snappy business tips and news, video interviews, industry commentary and market reports.

VISIT: WWW.ACCC.GOV.AU

Franchise Business is also the official directory of the FCA and lists franchising opportunities available in Australia and New Zealand. Potential franchisees looking to move into the franchising sphere can explore by location opportunities that currently exist in the market and enquire about the franchisor or brand.

BUSINESS.GOV.AU This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business.

New business owners can access the advice finder, events calendar, grants and assistance finder, a

Financial, legal and business guidance are key components of the independent, authorative editorial that helps potential franchisees make their purchasing decision.

Users also have access to franchise consultants and advisors who can assist prospective or existing franchisees or franchisors with any legal, financial, education and training, IT and other services.

VISIT: WWW.FRANCHISEBUSINESS.COM.AU

MAR/APR 2016 | 112 | WWW.FRANCHISEBUSINESS.COM.AU

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GLOSSARY

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 agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction 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.

GREENFIELD new site.

SITE: a brand

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 franchisor’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 franchisee’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

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.

MAR/APR 2016 | 113 | WWW.FRANCHISEBUSINESS.COM.AU

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A-Z LISTINGS

Phone: 1300 Cafe2U (1300 223 328) Fax: 02 9451 2105 Contact: Os Castaneda, Sales & Franchising Manager franchises@cafe2u.com.au www.cafe2u.com

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au Start up costs from: $47,000 + GST

Start up costs: $130,000

PROFILE: 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 45 franchisees grow profitable and successful businesses.

No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

PROFILE: Cafe2U is Australia’s first and most successful mobile Café system.

With over 250 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success.

This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory.

Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo.

The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator.

If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny.

Phone: 1800 243 637 Fax: (02) 4587 8733 Contact: Alan Biddle alanbiddle@chemdry.com.au www.chemdry.com.au Start up costs from $39,950 + GST

Phone: 1300 659 676 Fax: 1300 659 675 Contact: Dan Toms customerservice@cashflowit.com.au www.cashflowit.com.au PROFILE: PROFILE: Cashflow It specialises in equipment financing solutions for the franchise sector.

Cashflow It can get you pre – approved so that you can find the best deal on the equipment you need from any supplier in Australia. Whether you are looking for just one piece of equipment, fitting out a brand new store or buying an existing business with established equipment, we have a funding solution that can help.

Chem-Dry is Australia’s largest and most successful carpet and upholstery cleaning franchise. Established in 1986 as a healthy and green carpet cleaning alternative, today Chem-Dry cleans more carpet and surfaces than any other company.

Using the company’s patented cleaning solutions and over 35 years of experience, our franchise partners are able to build successful businesses by making their customers’ homes and workplaces cleaner and healthier.

Choose terms from just 12 months up to 5 years. At the end of the term you can Continue Renting, Purchase Equipment, Rent To Own or Return Equipment.

Our franchise partners are passionate about providing their customers with the cleanest and healthiest homes.

If you belong to a Cashflow It Accredited Franchise then you will enjoy additional products, benefits, and cost savings.

A Chem-Dry franchise is not just about residential and commercial carpet cleaning.

Our franchise partners also clean upholstery, leather, tiles and grout, and are specialists in water damage restoration.

Apply online today in less than 10 minutes.

Phone: 0407 059 603 Contact: Duncan Powell duncan@cocolat.com.au www.cocolat.com.au

Phone: +61 02 9207 8877 Contact: Rod Laycock rodl@civicms.com.au www.civicmanagedservices.com.au PROFILE: Civic Managed Services (CMS) is a professional service provider and experienced franchisor offering tailored solutions for small to medium sized businesses on a short or long term basis.

CMS offers a full suite of business services, including Operations, IT Support, Online and Offline Marketing, Purchasing, Warehousing and Distribution, Finance and Management Reporting, Franchising and Strategic Management and Planning.

CMS is ideally suited to provide infrastructure to businesses wishing to launch or expand their business, without the need to invest in costly staff recruitment. We have expertise and experience in a range of industries including retail, franchising, food, technology and education.

CMS could be the cost effective solution to provide you with an experienced team to grow your business.

Start up costs: $200,000 +

PROFILE: “Now Franchising” At Cocolat we pride ourselves in our handmade artisan Products – Deserts, Chocolate Truffles, Gelato and Coffee. Our Team of Chocolatiers and Bakers use only the finest of ingredients in our full production kitchen based in the beautiful Adelaide Hills.

Cocolat is a popular South Australia Icon which has just opened up their first store in St. Ives, Sydney.

Now Franchising throughout NSW, VIC, SA, QLD, WA, NT and TAS.

Call us for an obligation free discussion.

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Phone: 03 9923 3514 Contact: Ross Malcomson franchise@dodo.com www.dodo.com/franchise

Phone: 1300 720 622 Contact: Rian Bell supply@constructionsupplyservice.com.au

PROFILE: Construction Supply & Service (CSS) was established in 2003 with a view to providing a one stop solution for businesses in the QSR & restaurant industry.

We can locate, design, build, equip and maintain your business. With 24 hour a day on call service techs we can make sure you are always operational. With over 500 builds completed we have the expertise to ensure that it is done right the first time. From custom one of a kind build and equipment supply through to franchisee stores we have the team and contacts to take care of all your needs.

PROFILE: Dodo Connect is a fun, vibrant and energetic technology and home utilities driven business. Core to Dodo’s success has been the provision of extremely competitively priced products, along with superior customer service.

A Dodo Connect franchise provides you with low-cost entry, a simple business format, a wide range of products and services (including: internet, home phone, mobile phone and mobile wireless broadband, electricity and gas, plus vehicle, home and contents insurance.

Dodo is backed by an ASX listed powerhouse the M2 Group, in a dynamic and growing sector.

Phone: 1300 131 888 Contact: Ashleigh Williams Franchise.recruitment@dominos.com.au www.dominosfranchise.com.au

Phone: +61 7 3036 1152 Contact: Karen Prescott karen.prescott@egnatium.com www.egnatium.com Start up costs: $100,000

Start up costs: $250,000 PROFILE: Looking for a new career path and want to be your own boss?

Join the success of the Number One Pizza Company in Australia- Domino’s!

Our objective is to ensure every franchisee in the network is successful by offering; • Proven Systems and procedures for single unit and multi-unit operators • Clear growth & development strategies • Un-Paralleled Support from a dedicated team • Comprehensive training programs • Constant innovation • Leading Marketing Strategies • Support through all stages of the store building process • Local franchise consultant to help with ongoing store operations Our stores generally cost between $300,000-$600,000 + GST we require you to have approximately 40% of the total investment in cash and/or available equity.

PROFILE: We are one of the first ever companies providing a franchise opportunity for a combined set of sustainable growth solutions including software, consulting, coaching implementation and training. Aiming to become a global player in B2B sustainable growth solutions and to ensure that our clients can benefit from a global network with a local presence.

Through a suite of packages on: • Strategy management • Competency management • Appraisal management

• •

Learning management Experience management

Egnatium is a trademark designed by Egnitus Holdings Pty Ltd. Egnitus Holdings Pty Ltd is a leading B2B franchisor that has established a reliable network of franchisees within Australia, South East Asia and the Middle East.

Live your Dream and apply now.

Phone: 1300 FASTWAY Fax: 02 9264 4966 fastway.com.au

Phone: 03 9336 3200 Email: franchising@ fergusonplarre.com.au Website: www.fergusonplarre.com.au

Start up costs from: $25,000 PROFILE: Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: t Guaranteed income package* t Low start up costs t No weekend work t Ongoing business support & training t Exclusive territories t Perpetual franchise agreement with no ongoing fees

Start up costs from: 250K PROFILE: Ferguson Plarre Bakehouses is a 5th generation bakery-café franchise and is ranked in the top ten franchise systems in Australia and in the top two for food in the Topfranchise Awards.

We’re very proud to be able to offer you a full range bakery-cafe business model with no royalties and without the late nights and chocolate stained uniforms!

No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you.

With fresh product delivered to you daily, you get all the perks of owning a bakery (without the late nights or very early mornings) as well as the perks of owning a café.

Fergsuon Plarre is the change you have been looking for.

*Conditions apply

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Phone: 02 8845 0100 Fax: 02 8845 0199 Contact: Karen Pollard franchise@gelatissimo.com.au www.gelatissimo.com.au

Phone: 1800 689 550 Fax: 07 5591 9021 Contact: Maria Taylor Maria.taylor@rfg.com.au www.gloriajeanscoffees.com.au Start up costs: $320,000 - $450,000

Start up costs from: $350,000

PROFILE: Australia’s leading gelato franchise is looking for outstanding franchisees.

Prior food experience is not necessary however franchisees must have passion for the system and brand, leadership skills, and enthusiasm for delivering quality products through excellent customer service.

Multi award winning Gelatissimo provides full training and on-going support from dedicated operational, marketing and development teams enabling them to produce artisan gelato fresh in store using a simple and proven system.

PROFILE: Gloria Jean’s Coffees is tireless in the pursuit to serve the highest quality coffee, while making each and every guest feel like they are returning home when they step into any of the brand’s coffee houses.

After opening the first coffee house in Australia, the business model was perfected for international growth. Gloria Jean’s Coffees footprint has grown to over 800 coffee houses in 40 markets worldwide. Gloria Jean’s Coffees vision is to be the most loved and respected coffee company worldwide, and with the biggest international footprint of any of RFG’s Brand Systems the brand is well on its way to making this vision a reality.

Phone: 07 5515 0118 Fax: 07 5500 3716 Contact: Geoff Biddle mail@groutpro.com.au www.groutpro.com.au

Phone: 0412 692 052 Contact: David Wilkinson sales.au@inxpress.com inxpress.com inxpress.com.au/franchising

Start up costs from: $39,950 + GST & vehicle

Start up costs from: $64,950 +GST

PROFILE: Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition.

GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and re-colours old grout saving customers time and money without having to re-tile.

Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information.

PROFILE: InXpress provides a revolutionary concept delivering customers with express freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing increased value and service, saving valuable time and money.

Operating in 12 countries with over 300 franchisees globally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include: • Low entry costs • Low risk • No inventory/warehousing

For more information about becoming an InXpress franchisee contact us now.

Phone: 02 9527 5444 0439 130 499 Contact: Luke Manning Luke@justcuts.com Justcuts.com Start up costs: $85,000 - $120,000 (Kiosk) $160,000 - $240,000 (Salon) PROFILE: We believe in making this easy and convenient for all our Franchisees. That’s why we offer a fixed franchising fee, flexible finance options and ongoing business, operational and marketing support to all our Owners. It’s no wonder almost half of our Franchisees own two or more salons each! Our business model has been tried, tested and refined over 25 years, helping us become the largest hairdressing company in the Southern hemisphere. And, did you know, you don’t have to be a hairdresser to own a Just Cuts™ salon?

Our latest innovation, the Just Cuts™ Kiosk Salon, also allows you to buy into a new lifestyle from just $85,000. Designed to function as a smaller, compact, satellite site within high traffic shopping centres, they’re a great opportunity for those looking to take the first step into franchising or a fantastic way for existing owners to expand.

Find out what Just Cuts™ can do for you – give Luke Manning a call today.

• Minimal employee base • High income potential • Ongoing training and support

Phone: 03 9460 6700 Fax: 03 9460 3099 Contact: Brendan Flanagan franchising@laporchetta.com.au www.laporchetta.com Start up costs: $300k + (site dependant) PROFILE: Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part of serving our guests quality Italian food, to order, using fresh ingredients.

We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the drive and commitment and La Porchetta will provide the proven systems, training and support to achieve success.

WHY LA PORCHETTA? • A proven profitable operation.

• We are a much loved and recognisable national brand.

• We have strong local area marketing support and advice.

• Be part our dynamic and engaged family of restaurants that love people.

Join our team of restaurant owners who love getting together and share ideas.

We offer a flat fee structure that allows you to build your business faster.

Minimum Investment: Dependent on Site Conditions $300k+

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Phone: 0404 755 759 Contact: Simon O’Brien sobrien@lavacoffee.com.au lavacoffee.com.au

Phone: 1300 453 284 Fax: 07 5564 9045 Contact: Casey Reid recruitment@theleatherdoctor.net.au www.myleatherdoctor.com.au

Start up costs from: $95K PROFILE: Warming to the dream idea of owning a HOT new Lava Coffee franchise?

Our awesome Coffee ensures that we have both very happy customers and franchise partners. Our Franchise Partners are able to enjoy a great business, whilst avoiding the high set up costs associated with other leading brands.

Our concept includes the latest in design innovation. With modern and functional retail kiosks, placed in appealing locations, our winning formula means our turnkey franchise package and ongoing costs are a fraction of our competitors, with no compromises on quality.

Discover the substance behind our brand and enquire about joining a winning team and owning your dream coffee franchise today.

Start up costs from: $55,000 plus GST PROFILE: The Leather Doctor is the leading international brand in Australia for mobile leather repairs. With over 60 franchisees in Australia and teams in New Zealand and Dubai, this is truly a turn-key business with proven success. No previous experience required.

All training included. For a unique business opportunity with little competition, great income and amazing support, call today for an information pack.

Phone: 0457 677 986 Contact: Paul Kasper franchising@mbe.com.au

Phone: 1800 068 111 Fax: (07) 3100 7888 Contact: Aroha Leigh Email: opportunities@lenards.com.au Website: http://franchise.lenards.com.au/

Start up costs from: $185K PROFILE:

Start up costs: $350k-$400k turnkey PROFILE: Lenard’s Chicken is Australia’s favourite chicken shop and a leading brand among Australia’s fresh food retailers. Our unique concept of value-adding amazing ingredients and flavours to fresh chicken has established our offer as the leader in the marketplace.

Since the first store opened in Queensland, Lenard’s has sold more than 500 million chickens, served more than 200 million customers and injected more than $2 billion into the Australian poultry market. Today, Lenard’s employs more than 2,000 staff in nearly 300 franchises, supermarkets and butchers across Australia and remains one of the great success stories of Australian retailing.

Looking for more than just a print and design company?

Mail Boxes Etc. is part of the world’s largest Business Services franchise system, with over 1,500 MBE Centres world-wide and growing. We offer a multi-income stream of printing, shipping and mailing services, just to name a few.

Working Monday to Friday, 8am to 5:30pm, with no spoilage, is one of the many benefits of owning your own Centre. No experience is necessary, as we partner with our suppliers to provide comprehensive and on-going training.

Our National Marketing Program will help you identify and find your clients, and our National Supplier Agreements, will ensure you’re always purchasing as cost effectively as possible.

With MBE, it’s an investment in your future.

Visit us on www.mbebusinessfranchise.com.au

Phone: 02 8197 3080 Contact: Michael Savvas Michael.savvas@madmex.com.au www.madmex.com.au

Phone: 03 9604 9400 Fax: 03 9600 3313 rxt@marshmaher.com.au mim@marshmaher.com.au www.marshmaher.com.au

Start up costs: $400-$600K PROFILE: Healthy, fresh, authentic and high-quality Mexican food in a fast casual environment.

Voted the best Mexican restaurant nationwide in the Lifestyle Food Awards, Australia’s best fresh Mexican restaurant, Mad Mex is expanding and looking for passionate and enthusiastic franchisees.

Serving gourmet, restaurant quality food in a fast paced environment, Mad Mex is ideally positioned neatly between high end restaurants and food court operators.

Mad Mex enjoys the best of both worlds! Fast enough to create a high volume takeaway business but a unique and high quality product offer that is sufficient to command a premium price point.

Mad Mex believes in creating a complete Mexican dining experience, so our locations are typically licensed and we provide a range of Mexican beers, tequilas, and our famous $8 margaritas. Our target market is at the high end of the fast food market; and we want our customers to feel good about eating at Mad Mex every day, both in terms of value and quality.

PROFILE: Robert Toth and Marianne Marchesi Well recognised and published franchise specialists with over 30 years combined industry knowledge and experience.

Providing advice in: 1.

International Franchisors and Franchising.

2.

Master Franchising.

3.

Dispute Resolutions – solutions and strategies.

4.

Franchisee Advice and fixed fee reports.

5.

Sale/Purchase of franchise systems.

6.

IP/Trademark advice.

7.

Company structures and tax advice.

8.

ACCC and Consumer Law advice.

Fixed fee to upgrade franchise documents for 2015 Code Compliance.

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Phone: 0455944999 0400908083 Contact: Andrew Stachurski andy@mini-raxevsky.com.au www.mini-raxevsky.com.au

Phone: 03 9016 7877 Contact: Danielle Joynson milestoneaustralia@milestone.dk www.milestonesys.com

Start up costs from: Dependent by site location

PROFILE: Milestone Systems is a global industry leader in open platform IP video management software, founded in 1998 and now operating as a stand-alone company in the Canon Group.

Milestone technology is easy to manage, reliable and proven in thousands of customer installations, providing flexible choices in network hardware and integrations with other systems.

Sold through partners in more than 100 countries, Milestone solutions help organizations to manage risks, protect people and assets, optimize processes and reduce costs.

Phone: 1300 650 330 Fax: (02) 9922 6738 Contact: Tiffany Spiers franchising@mortgagechoice.com.au www.mortgagechoice.com.au/ join-mortgage-choice.aspx

PROFILE: Since 1992 Mortgage Choice has revolutionised Australia’s home loan market.

Today we are a fully-fledged financial services business, offering a broad product suite including financial planning, car loans, business loans, insurances and credit cards. Are you ready to become part of our success story?

With Mortgage Choice, you’ll receive unrivalled training, valuable qualifications and personal coaching to set you on the path to success. You’ll have the backing of Australia’s leading financial services provider and our well-known brand, and the rewards of our generous commission structures and incentive-based bonuses.

If you’re driven to build your own successful financial services business, please contact us at 1300 650 330 or email franchising@mortgagechoice.com.au

PROFILE: Creating fashion since 1989, Mini Raxevsky represents one of the leading companies worldwide in children’s clothing. Its differentiated collections meet perfectly the needs of demanding little customers from the moment of their birth to the age of 14 years old.

Mini Raxevsky is expanding internationally with the faithful commitment to excellent quality, unique concept, original designs, combination of comfort & styling and attractive prices. Over the last 10 years, Mini Raxevsky collections are offered through the retail chain of Mini Raxevsky in elegant boutiques that ensure pleasant service and excellent customer relationship. We invite you to a magical journey in the fascinating world of Mini Raxevsky!

Phone: 1300 961 588 Contact: Luxottica Franchising Team franchising@luxottica.com.au luxottica.com.au/franchising Start up costs from: $250,000

PROFILE: OPSM is a highly respected and market-leading franchise brand with nationwide opportunities available to both business professionals and optometrists.

From a single store in Sydney to over 400 OPSM stores across Australia and New Zealand, our passion has remained constant. We love eyes. When you partner with OPSM you’ll benefit from award winning systems, support, training and business development programs; and be part of an innovative, professional network.

An OPSM franchise makes great business sense. You can benefit from scalable and multi-site scenarios, backed by proven business systems and the reassurance that you’re working with world-leading technology and products.

Phone: 1300 977 988 Fax: 1300 977 988 Contact: Robin Lau robinlau@postnet.com.au postnet.com.au

Phone: 02 8905 8401 Contact: Gary Glen Gary.glen@qsrh.com.au www.oporto.com.au From approx.: $500K

Start up costs: $150,000

PROFILE: Oporto was Australia’s first Portuguese-style chicken restaurant and is renowned for its fresh-not-frozen, grilled-not-fried delicious tender chicken and fresh vibrant chilli sauce. From tantalising the taste buds of local Bondi residents with its first store in 1986, Oporto now satisfies over 13 million customers per year across 140 stores, and that number is forever growing.

PROFILE: PostNet offers full-service digital printing and finishing services. We provide everything from wedding invitations and graduation announcements to business cards, brochures, flyers, catalogues, posters, banners and vehicle graphics.

We also offer marketing solutions including direct mail, email marketing, graphic design, website creation, business services and private mailboxes rental services.

Oporto® has come a long way over the last 29 years, however it has maintained the heritage of high quality, great tasting, authentic fresh-grilled chicken and burgers. With new store fitouts, a new customer rewards program and its amazing food, Oporto® is an exciting business opportunity.

PostNet Neighbourhood Business Centre helps our customers to pack and ship anything to anywhere using the major courier carriers — FedEx, DHL, TNT and E-Go. So many services, one stop solutions provider, that’s PostNet !

We’re The Business Behind Your Business.

Create I Print I Ship I Support I Grow

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Phone: 07 3456 4255 Fax: 07 3456 4299 Contact: Phil Hill phil.hill@propertyclub.com.au www.propertyclub.com.au

Phone: 02 8905 8401 Contact: Gary Glen Gary.Glen@qsrh.com.au www.redrooster.com.au From approx.: $600K

Start up costs from: $49,000

PROFILE: Property Club was estalished in 1994 as The Investors Club, and has grown to become one of Australia’s most successful property investing organisations.

By educating and assisting members to purchase carefully selected investment properties in Australia, Property Club has worked together with investors and property vendors with over 19,000 properties purchased to date. Success of the Club is evident through the 4,700+ members of our Property Millionaires Club.

Property Club now offers an opportunity to join our existing 21 Franchisees.

Full training, supported by a dedicated team of head office staff and property researchers will be provided to successful applicants.

PROFILE: Red Rooster is Australia’s largest roast chicken quick service restaurant chain.

Since opening the first restaurant in 1972, Red Rooster has become an iconic Australian brand. There are currently 360 restaurants across Australia and this number continues to grow. The strength and scale of the network makes Red Rooster a great proposition for franchisees. In addition to its well-known and loved roast chicken and its famous chips, Red Rooster continues to invest in innovation, most recently launching a range of premium chicken burgers and wraps, as well as launching a new home delivery service in selected locations. As one of Australia’s most recognised brands and with a well-established support network, Red Rooster offers exciting business opportunities.

Phone: 1300 4 REDCAT (1300 473 322) Fax: 03 9696 1553 info@redcat.com.au www.redcat.com.au

Phone: 02 8303 2224 Contact: Stuart Ratcliffe franchise@redspot.com.au www.redspot.com.au Start up costs from: $140K PROFILE:

PROFILE: Redcat provides end-to-end, point of sale, accounting and business management solutions that gives users total control of their business.

Redcat supplies integrated software and hardware solutions that can manage sales, staff, stock, payroll, through to accounts, GST, customer loyalty, and web based multi-site reporting to provide a complete business management system.

Franchised groups can benefit from their flexible centralised management capability that permits multiple levels of control and reporting.

Redcat are also able to provide online ordering systems. Customers order and pay through a uniquely branded app, the order is then automatically integrated into the point of sale system.

What we offer: An opportunity to join the world’s largest car rental group, Enterprise/Alamo/National Car Rental and Australia’s largest independently owned car rental company, Redspot Car Rentals. As part of the Redspot/Enterprise network of locations your business will be represented in all the groups international and domestic marketing activities and on all booking channels worldwide.

Are you a good fit?

Are you a dynamic person who loves dealing with people and delivering top quality service? Are you active in your local community and have the attitude and dedication to operate in a fiercely competitive market? Do you have access to capital/finance? Are you able to follow a proven business system and generate new business using our local marketing programmes?

Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Les Coppin les.coppin@snapon.com www.snapontools.com.au

Phone: 07 5591 3242 Fax: 07 5591 9021 Contact: Michael Marr Michael.marr@rfg.com.au www.rfg.com.au

PROFILE: Founded in 1989 as the owner and manager of around 50 Donut King and bb’s Café stores, and Listed on the Australian Securities Exchange (ASX) since 2006, Retail Food Group (RFG) now has a strong portfolio of world class franchise systems with an extensive global footprint.

RFG is the owner, developer and manager of Donut King, Brumby’s Bakery, Michel’s Patisserie, Gloria Jean’s Coffees, It’s A Grind, The Coffee Guy, Café2U, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza Bar franchise systems.

Start up costs from: $50,000

PROFILE: Snap-on Tools Australia & NZ is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers and technicians across the country. Snap-on Tools is a wholly owned subsidiary of Snap-on Inc., a developer and manufacturer of innovative and technologically advanced tools with an established network of solid franchise operations across the globe.

After more than 25 years in the Australian market, Snap-on continues to solidly perform, providing robust financial results for its network of over 170 franchisees.

Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.

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Phone: 03 9830 4166 Fax: 03 9888 6327 franchising@snooze.com.au www.snooze.com.au/franchising

Phone: 08 8376 3016 Contact: George Karamalis info@st-louis.com.au www.st-louis.com.au

Start up costs from: $450,000

Start up costs from: $350,000

PROFILE: As one of Australiaâ&#x20AC;&#x2122;s longest-running, successful and innovative franchised business, Snoozeâ&#x20AC;&#x2122;s experience in the bedding industry is second to none.

With 78 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment.

Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including: â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Vendor finance assistance NAB & ANZ accreditation Sales and product training Business management support

â&#x20AC;˘ A national marketing program â&#x20AC;˘ IT services â&#x20AC;˘ Franchisee Advice and fixed fee reports

PROFILE: St. Louis franchisees will find comfort in the support and guidance they receive once they become part of the St. Louis family and take the first steps into owning their own business.

With full training and on-going assistance franchisees will learn the art to producing the highest quality, premium ice cream and dessert creations, and much more in store, using a simple, user-friendly model.

We are looking for franchisees who are passionate about dessert, have a love for all things sweet and decadent, and who believe in never compromising on quality.

Change your lifestyle. Invest in something that warms you from the inside out.

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

Phone: 02 9898 8608 Contact: Chris Fitzmaurice enquiries@swimart.com.au www.swimartfranchise.com.au Start up costs from: Retail - $175,000 - $250,000 Mobile - $85,000 - $90,000

Start up costs from: Varies by site PROFILE: SubwayÂŽ is the worldâ&#x20AC;&#x2122;s largest restaurant chain with more locations than any other chain. We offer business owners simple operations, ongoing field support and a defined marketing structure, along with providing customers with a variety of freshly made menu options.

PROFILE: Swimart operates in the pool and spa industry providing owners with all their pool and spa needs from filtration equipment and chemicals to pool cleaners, accessories, spare parts and leisure products. We also provide extensive, in home services, such as pool cleaning and maintenance.

For over 47 years, the SUBWAYÂŽ brand has been helping individuals build their own independently operated business â&#x20AC;&#x201C; run by people just like you! From step one, throughout the entire franchise process, the SubwayÂŽ system provides training and guidance that aids in the operation of each restaurant.

Established in 1983, Swimart has over 70 retail stores and more than 250 service vehicles across both Australia & New Zealand and is a fully owned subsidiary of Waterco Ltd, a publicly listed Australian company with operations in over eight countries around the globe. We offer both retail and mobile franchises with set up costs starting from as little as $85,000. If youâ&#x20AC;&#x2122;re looking for either a retail or service business that delivers solid revenues with high margins and low fees, just ask Swimart!

Join the winning team with the #1 Franchise! Register your interest today.

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos franchise@cheesecake.com.au www.cheesecake.com.au

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

Start up costs from: $200,000 - $800,000

PROFILE: The Cheesecake Shop opened in 1991 and has developed into an Australian favourite with a massive network of almost 200 stores across Australasia.

PROFILE: V.I.P. was the first company to start franchising in home services in 1979.

Our award winning system makes for one of the simplest businesses to operate.

V.I.P. has franchise opportunities available in: t ( BSEFO . BJOUFOBODF BOE -BXO . PXJOH t )PNF $ MFBOJOH t $ PNNFSDJBM $ MFBOJOH

Our systems guide you on how many cakes you need to produce each week and how much of each ingredient to order.

Our cakes are baked from easy to follow recipes. You donâ&#x20AC;&#x2122;t need to be a chef or a baker, its so easy!

If you love to bake cakes for the kids then here is your chance to turn your passion into profit.

V.I.P. has over 1100 franchisees across Australia and New Zealand.

Over the last 35 years, V.I.P. has helped over 4,000 people just like you become successful business owners by providing: t *OJUJBM BOE POHPJOH USBJOJOH coaching and mentoring t " GGPSEBCMF GSBODIJTF PQUJPOT t / BUJPOBM BOE MPDBM NBSLFUJOH

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A-Z LISTINGS

Wisewould Mahony Lawyers Lawyers in love...... with Franchising

Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Melissa Strain melissa.strain@wisemah.com.au www.wisewouldmahony.com.au

Phone: 1300 655 559 Contact: Jonathan Payne joinus@xpresso.com.au www.xpresso.com.au www.facebook.com XpressoMobileCafe Start up costs: $119,500 + GST including our FAST TRACK Program which guarantees your income!

PROFILE: Experienced Franchise Lawyers.

Member Franchise Council of Australia (FCA), International Lawyers Association (IFLA), Franchise Association of New Zealand & US Commercial Services.

FIXED COST FEES to Franchisors and Franchisees based on scope of works.

No hourly rate surprises!

Services provided: • Drafting & review of Franchise documents • Legal and consulting advice to Franchisors & Franchisees • Dispute resolution – mediation – strategies and solutions

• Code compliance requirements • Sale/Purchase of Franchise Systems & Business • Master Franchising • International Franchising

Call or email for a complimentary brochure for Franchisors and Franchisees.

PROFILE: Xpresso Mobile Cafés operate in large geographical territories nationally where there are limited fixed location café options for the workforce in commercial and light industrial precincts.

We supply premium Di Bella Coffee products – both hot and cold including frappés, energy drinks, cold press coffee drinks and bottled water. The average spend from each customer is also increased by providing lunch options such as awesome salads, gourmet wraps, sandwiches, cookies, banana breads and Ben & Jerry’s ice cream products.

Franchisees further boost their income by attending weekend community, sporting and school events which do not need to be in their usual territory.

Xpresso Mobile Café has recently won 2 awards placing it in the Top 10 Franchises in Australia in the areas of Passion and Lifestyle.

Phone: 0414 669 101 Contact: Stephen Spitz stephen.spitz@xpressodelight.com.au www.xpressodelight.com.au

Phone: 1300 139 913 Fax: 07 5587 7223 info@zbm.com.au www.zbm.com.au

Start up costs from: $59,990 + GST

PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded!

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

Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees.

This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

PROFILE: Zoo Business Media is a full service supplier of innovative music, video and voice messaging solutions to hundreds of franchised businesses around Australia. We provide the latest in digital, customisable in-house radio and branded, music video technology.

We help you create the perfect ambience for your retail stores, gyms, restaurants or bars with the latest internet-delivered music and messaging services - inclusive of public performance fees.

Contact us on 1300 139 313 and find out how we can make your franchised business sound great!

START YOUR JOURNEY Thinking about buying a franchise? www.FranchiseBusiness.com.au

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ADVERTISING INDEX

INCORPORATING FCA NEWS

* INDICATES FCA MEMBER

Appliance Tagging Services

4*

Milestones

61

Cafe2U

38-39*

Mini Raxevsky (Roan Investments)

26

CashFlow It

11*

Mortgage Choice

67

Chem-Dry Australia

23

Oporto

51*

Cirrus Media

109

Postnet

72

Civic Managed Services

55*

Prodigy

58

Cocolat

71*

Property Club

57

Construction Supply & Service

66

RedCat

78

Dodo Services

69*

Red Rooster

15*

Domino’s

31

Redspot

59

Egnitus

49

Retail Food Group

62-63*

Fastway Couriers

123*

Snap-on Tools

9*

Ferguson Plarre Bakehouses

7*

Snooze

101*

Gelatissimo

35*

Specialised Events

107

Gloria Jean’s Coffees

41*

St Louis

17

Groutpro

81*

Subway

33*

InXpress

95*

Sumo Salad

93*

La Porchetta

82*

Swimart

105*

Lava Coffee

29

The Cheesecake Shop

25*

Leather Doctor

45

The Coffee Club

77*

Lenards

124*

VIP Franchise

83*

Mad Mex Fresh Mexican Grill

19*

Xpresso Delight

91*

Marsh & Maher

84*

Xpresso Mobile Café

97*

MBE

70*

Zoo Business Media

2

MAR/APR 2016 | 122 | WWW.FRANCHISEBUSINESS.COM.AU

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1

2015-06-23T12:01:31+10:00

THE CHICKEN SPECIALISTS

In 2016, Lenard’s Chicken embarks on an exciting new chapter in its 28 year history. Our new contemporary store design is already attracting rave reviews from our customers.

For years our customers have asked for Lenard’s to create a premium range of Roast Chicken. In 2016 their dreams are answered when an amazing array of infused Roast Chicken flavours will hit the market.

The foray into a new hot range will catapult Lenard’s Chicken into the market leading position it aspires to continue to own for the next 30 years.

To ensure you are part of this journey with Australia’s favourite fresh chicken retailer, register your interest now with Aroha Leigh at opportunities@lenards.com.au or call 1800 068 111.