Franchising Nov/Dec 2016

Franchising YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE | WWW.FRANCHISEBUSINESS.COM.AU NOV/DEC 2016 VOL.29/NO.6

HOW TO FIND THE BEST SITE FOR YOUR NEW BUSINESS

living

the dream Why passion is a key ingredient

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

AUS $6.95|NZ $7.95

FIND THE FINANCE TO BUY A FRANCHISE P.28

WHAT TO LOOK FOR IN A BRAND NEW FRANCHISE

6 THINGS YOUR FRANCHISOR SHOULD TELL YOU

P.30

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CONTENTS

COV E R STORY

12 SUCCESS

Peta Credlin on failure and success

14 FUTURE PERFECT

58 EARNING A CRUST

Could the bakery business be an investment that delivers the goods? Check out what’s happening in the industry

The latest survey and franchising trends to watch for

18 CELEBRATING EXCELLENCE

Who were the winners at the MYOB FCA Excellence in Franchising Awards

22 BECOME YOUR OWN BOSS

Six ways to get business ownership right

24 CAN YOU BUY A BUSINESS WITH NO MONEY?

82 FROM PASSION TO PROFESSION REGULARS

5 6 102 104 106 110 111 112 114 122

EDITORIAL INSIGHTS LEGALESE SKETCH LEADERSHIP CHECKLIST GLOSSARY DIRECTORY LISTINGS ADVERTISERS INDEX

You’ve got little or no budget – could you still invest in a franchise business? Check out these tips

28 FIND THE FINANCE

What is your credit rating, and other questions you need ask yourself when you look for a loan

30 WHAT TO LOOK FOR

What to consider when you decide to invest in a brand new franchise model

36 HOW TO FIND THE BEST SITE?

Location, location, location is the retail mantra – so how can you get it right when selecting a site?

42

HOW TO SPOT AN UNFAIR CONTRACT New regulation is coming and it affects standard form contracts. Will this affect you, and what should you do if it does?

70 FLASH FORWARD

Franchised photo businesses are on the rise

76 POOCH PERFECT

A whole industry has built up around our passion for our pets

84 FAST FOOD GETS A TWIST

Fresh food and speedy delivery are crucial to Guzman Y Gomez

88 A QUEST FOR A NEW LIFE

Moving from India to Australia, Jaideep Sharma found a franchise to be his perfect opportunity

90 SNAP INTO A FIT FUTURE

This fitness brand is refreshing its look and tapping into new markets

94 HOT PROPERTY

Lenard’s plans another 50 outlets in two years

48 HOW TO MOVE ON

What you need to consider before you sell a franchise

52 A CLEAN STREAK

The cleaning services industry is championed by brands adding value, premium products and innovation

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100 BUY A FRANCHISE

You could set up in business by yourself, or choose to buy a franchise

o F f o n o o i d? s s a P START YOUR BRILLIANT FUTURE NOW AND BUY A BUSINESS WITH HEART

“MY DAUGHTER & I BOUGHT INTO A HEALTHY RELATED FRANCHISE LIKE SUMO BECAUSE WE LOVE THE IDEA OF BEING ABLE TO OFFER PEOPLE HEALTHY DELICIOUS FOOD AND WE SAY ‘YOU CAN MAKE FRIENDS WITH SALAD’ ” ~ Mother & Daughter, Sandy & Sarah

VISIT www .

ALL THE IN sumosaladfranch FORMATION ise.com FOR Y O U NE HEALTHY B USINESS CHED TO MAKE A OICE

( WELCOME )

W

hat will it take to persuade you to invest in a franchise? There are numerous reasons why it makes sense to buy a franchise business – not least the size of the franchising sector in Australia, which continues to grow.

The latest survey indicates the franchising sector brings in $146bn a year in sales revenue (read more on page 14). That’s a substantial pot of money, and it’s driven by the hardworking men and women of Australia who head up their own franchise outlets.

For many the opportunity to operate a franchise is the way to achieve a dream – of business ownership, greater flexibility, providing family security, the ambition to do well and succeed.

In this issue we look at some of the individuals who have changed their lives through franchising – in particular our cover star, Sonya Gruevski, and Quest franchisee Jaideep Sharma.

the very least, hard work and commitment.

You can help yourself along the way by being well-prepped before you buy a franchise. In this edition we look at some of the issues to consider – whether you should buy a franchise or set up your own business, finding money to fund your purchase, what to look for in a brand new franchise, and the six things your franchisor should tell you.

In every edition there is legal advice – this issue looks at both the upcoming Unfair Contracts law and considers whether or not you have to use preferred suppliers.

Success can be a personal achievement, but it can also be recognised by peers.

If you’re looking for a franchise opportunity, then searching online for a specific business in your neighbourhood is the easy way to keep up with what’s new.

The franchising community has just celebrated the high performing brands and individuals across the sector. It’s our pleasure to share their wins with you – turn to page 18 to find out who has scooped a prestigious award in the MYOB FCA Excellence in Franchising Awards 2016.

Why not check out our website www.franchisebusiness.com.au – the official online directory of the Franchise Council of Australia – to find franchises for sale, learn more about franchise brands, search across industries, and of course stay informed about developments in the sector.

To get to an award-winning position takes, at

Good luck with the research!

EDITOR Sarah Stowe P: 02 8224 8371 sarah.stowe@octomedia.com.au

CLIENT SUCCESS MANAGER Jarha Serafin P: 02 8224 8375 jarha.serafin@octomedia.com.au

JOURNALIST Noha Shaheed P: 02 8224 8372 noha.shaheed@octomedia.com.au

MARKETING MANAGER Cherie Nelson P: 02 8224 8374 cherie.nelson@octomedia.com.au

NATIONAL SALES AND MARKETING MANAGER David Strong P: 02 8224 8370 david.strong@octomedia.com.au

GRAPHIC DESIGN Nguyen Pham nguyen@octomedia.com.au

SENIOR ACCOUNT MANAGER Charlotte Redfern P: 02 8224 8373 charlotte.redfern@octomedia.com.au

SARAH STOWE EDITOR

For subscription enquiries call customer service: 02 8224 8383 ISSN: 1321-408X

If you’re looking for a franchise opportunity, then searching online for a specific business in your neighbourhood is the easy way to keep up with what’s new.

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INSIGHTS

Quest invests $7m in training A national franchise chain has unveiled a world-class training program tailored specifically to franchisees.

The brand new Quest Academy is designed to deliver targeted and interactive training for franchisees within the Quest Apartment Hotels group.

The franchise has invested $7m and doubled the size of its learning and development team.

There will be a complete training course and individual workshops available for new and existing franchisees who can attend the learning sessions free of charge. Franchisees can learn in classrooms, through e-learning, or in practical workplace environments.

The academy will include elements that franchisees themselves have asked for, including more training on business skills, increased practical training, varied styles of training delivery, and human resources training.

Three facilities will host the learning program – Quest Abbostford, North Ryde and Woolloongabba.

POOLWERX SCORES TOP PERFORMANCE RATING PoolWerx has been given a top rating that should make it easier for banks to provide lending for the brand’s franchisees.

Leading franchise information

and business intelligence specialist FRANdata has ranked the franchise system in the ‘top quintile’ of the worldwide franchising sector for its credit profile.

Darryn McAuliffe, CEO of FRANdata Australia, said the company achieved an impressive result on a global scale.

“Having calibrated their score (840 out of a possible 950) against hundreds of these reports in the US, FRANdata defines the Poolwerx franchise system as high performing, McAuliffe said.

“Poolwerx is the first brand to authorise the distribution of this objectively produced

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report to all active Australian franchise lenders, which will not only enhance their lender relationships but also promote improved finance access for franchise partners.”

Turn to page 18 to see how Poolwerx fared in the industry awards

INSIGHTS

BEDSHED’S $275,000 OFFER Bedshed, an Australian bedding franchise, is offering a $275,000 incentive which will be available for six months from October 2016 to March 2017 for up to five new Bedshed stores in the Sydney metro region.

Gavin Culmsee, general manager, said “We believe that by providing this ‘once in a lifetime’ incentive, suitable franchisees looking at opportunities of this nature in Sydney can accelerate and improve their initial return on investment,” he said.

The initial franchise fee of $75,000 will be waived, and Bedshed will contribute $200,000 over and above marketing contributions for each new franchise store over two years. Overall, this is an incentive valued at $275,000.

Candidates will need to fit the Bedshed criteria and undergo the selection process to ensure the right fit for the business.

The region also offers multisite opportunities for the eligible candidates.

GYM BUSINESS JETTS IN A $100 MILLION DEAL Private equity firm Quadrant has acquired Jetts Fitness, the first 24/7 gym operator in Australia, following on from its purchase of Good Life Health Clubs in August.

According to a report by Australian Leisure Management, Quadrant had set up a holding company Fitness Lifestyle Group to purchase Goodlife and to make other acquisitions in the sector.

Founded on the Gold Coast by Brendon Levenson and Mark

Pizza Hut under new ownership Major fast food chain Pizza Hut is now being managed through a new Australian licence arrangement.

Fund manager Allegro has taken over the master franchise licence formerly held by Yum! Brands.

“This is an exciting step change in how Pizza Hut operates in this market which will accelerate growth and deliver Pizza Hut to more consumers across Australia,” said Graeme Houston, outgoing Pizza Hut Australia general manager.

The master franchisee business will be led by

Stocks in 2007, Jetts Fitness now has 270 clubs across Australia, New Zealand and the Netherlands – and more than 200,000 members.

an experienced and hands-on new management buy-in team of three Australian quick service restaurant specialists - Peter Rodwell (executive chair), Lisa Ransom (chief executive officer) and Chris Leslie (chief operating officer); each coming from a range of national and international roles. All three bring with them decades of experience with McDonald’s.

The main focuses will be on building a strong customer-centric leadership position, further embracing digital innovations and trends, growing new stores, and building economies of scale to boost market share and profit in a highly competitive market.

launch nationwide Seven Network.

on

the

REAL LIFE FRANCHISEES STAR IN TV SERIES

The weekly half-hour program focuses on the positives, the pitfalls and the personalities in franchising, profiling those at the forefront of Australia’s booming small business sector.

The Franchise Show is the latest business program to

Retail Food Group (RFG), the

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parent company of brands including Gloria Keans, Donut King and Crust Gourmet Pizza is a partner.

The Franchise Show series one began early October and will run for 13 weeks on Channel Seven nationwide.

INSIGHTS

The mandatory Code requires a franchisor to provide prospective franchisees with a disclosure document that, amongst other things, discloses the relevant business experience of all its officers.

“These proceedings are the first in which the ACCC has sought penalties for breaches of the Franchising Code,” said Dr Michael Schaper, deputy chair of the ACCC.

HR CONCEPT LANDS IN AUSTRALIA

Canadian chain brings healthy fast bites to Australia Freshii, a Canadian healthy fast food business, will open its first Australian outlet at a food court in the Carillon City complex, Perth.

heavy energy consumption and producing oily processed meals.

Menu items include custommade green wraps, salads, quinoa bowls and fresh pressed juices.

“We are thrilled to bring nutrition-packed food made quickly to the community,” said master franchise holder Robbie Damjanovic.

The brand is committed to eliminating traditional fast food practices such as using excess packaging, causing

ACCC TAKES ACTION AGAINST PASTACUP The Australian Competition and Consumer Commission (ACCC) has taken action against a franchisor for allegedly breaching the Franchising Code of Conduct.

Pastacup’s current franchisor Morild Pty Ltd (Morild) and the company’s former director Stuart Bernstein has managed and been a director

More than 20 sites are expected to be opened by early 2018.

Additional locations are currently being negotiated across the country.

The HR Dept offers practical HR and employment solutions for the small business community.

It’s been established in the UK for 14 years and has built up a network of more than 60 franchisees across the UK and Ireland.

Now the business is eyeing up the Australian market and is looking to appoint a joint venture partner who would hold the master franchisor agreement for the whole country.

Jane Lombard at The Franchise Shop is handling the recruitment in Australia, said “The UK franchisor will offer board level support for this co-finance initiative.”

The business is targeting at least 100 territories within the next five years.

of two previous franchisors of the franchise system which became insolvent.

The ACCC states that Bernstein’s directorship and management of two previous Pastacup franchisor companies that became insolvent should have been disclosed by Morild to potential franchisees. The watchdog also alleges that Bernstein was knowingly concerned in Morild’s conduct.

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BRIEFS RentWise Report is a new free resource from LeaseWise that can help you decide if you will be paying too much rent or whether your turnover forecast is realistic.

The report will provide a market rent, attainable incentives and other crucial information such as customer traffic, car parking and the productivity of each centre.

Terry White Group, the parent company of the Terry White Chemists franchisors, has posted a net profit increase of $1.84 million in the year to June 30, up from $1.22 million in the previous year.

Narellan Pools, a fibreglass swimming pool franchise, is recruiting 17 new franchisees on the eastern seaboard within the year.

Xpresso Mobile Café is expanding nationally; recruiting 10 franchisees by this time next year and another 10 by mid-2018.

FCF Fire and Electrical has a new franchise model allowing both services to run separately and is set to open 30 new franchises nationally in the next 12 months.

Kubarz Beverage Catering has expanded beyond beverage and mobile bar services for functions, parties and events to include catering, party hire and event management. The business is recruiting nationally to double its existing network.

FoodWorks is introducing three new store formats from early 2017: supermarkets, local and express.

Jonnee Coffee, a new barista machine franchise, plans to open 1000 franchises nationally in the next 12 months. Metropolitan sites will be a focus for the business which can be either a rental or a joint venture partnership.

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.

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.

WHAT YOU NEED TO KNOW ABOUT

SUCCESS AND FAILURE BEFORE YOU BUY A FRANCHISE

B

e fearless and have a go.

That’s the message to potential franchisees from political strategist turned Sky News contributor, Peta Credlin.

The former Chief of Staff to the Prime Minister, the Hon Tony Abbott MP, Credlin describes herself as a passionate believer and supporter of small business. “My parents took on a small business because they felt it was the only way they could get on,” she said.

Credlin grew up working in the small business with her siblings, up at 4am stacking newspapers, working in the deli, doing deliveries, mopping the floor after school.

“Hard work is the only way to get ahead in small business,” she told the franchising community at a breakfast forum at the

National Franchise Convention 2016.

Franchising provides a steady entry point for individuals wanting to move from being a wage earner to paying the wages, but it isn’t without risk, she said.

Her advice for anyone wanting to be in small business: “Be resilient. In business and in politics you are there to get things done, break down road blocks and meet commitments.

Nor does it mean the rules of corporations and commerce are not applicable.

“I’ve always said success is persistence and talent in equal measures, with a bit of luck thrown in.”

Credlin said anyone considering buying a franchise should get advice, and ensure the business fits with their personality and what they want to get out of life.

But while success is what franchisees look for, and why people go into business, getting it right every time isn’t the only consideration.

She also highlighted the value of franchising and small business as a route to a career for women, particularly in the digital age.

Credlin believes getting it wrong can pay dividends and allow you to improve performance.

Going into business, like entering politics, is tough, and women can be their own harshest critics, she believes.

“Failure is not a bad thing. You can surprise yourself if you put your hand up and have a go.

“Self-doubt in business can really hold us back,” she said.

“I wouldn’t have got anywhere without being brave enough to fail.”

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BE IN BUSINESS WITH A CUT ABOVE THE REST

We set out in 2009 to change men’s grooming as it was known. The original barbershop had lost its shine, the trade wasn’t as available as it once was and the tradition was being eroded by modern trends. We wanted to reintroduce the barbershop experience and make it relevant today, the market demand and desire was there.

Now, with over 60 stores internationally, Tommy Gun’s is rapidly expanding. Join us and become a franchisee today. Become a part of Tommy Gun’s revolutionized barbershop experience. franchising@tommyguns.com.au tommyguns.com.au/own-a-franchise 07 3215 6050

FUTURE

PERFECT?

I

f you’re buying a franchise it helps to get a sense of the bigger picture and find out what the sector looks like, writes Sarah Stowe

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Franchising in Australia is a mature market. But it’s still growing and brands are boosting their presence with new outlets across the country.

That’s the message from the latest report unveiled by the Asia-Pacific Centre for Franchising Excellence at Griffith University.

casual employees, up from 461,000 two years ago.

franchise numbers over the next 12 months,” Billson says.

These are some of the key findings of the survey, undertaken by Griffith University’s Asia-Pacific Centre for Franchising Excellence and supported by the Franchise Council of Australia.

According to the Franchising Australia 2016 survey, there are now an estimated total of 1,120 franchise brands operating in Australia, compared with 1,160 in the 2014 survey.

Franchised businesses are contributing a substantial $146bn of sales revenue to the Australian economy – that’s an increase of $2bn over two years.

This year’s survey marks the 10th instalment of this definitive benchmarking study of Australian franchising. The survey dates back to 1998 and has been updated every two years since.

That growth rate doesn’t match the expansion that was recorded in the previous such survey in 2014. Then the sector had shot up from $13bn from $131bn to $144bn.

But the Franchising Australia 2016 survey shows that despite a relatively flat economy and retail environment, Australia’s franchise sector is continuing to grow in total sales turnover and employment and its franchisors are confident of further growth in the next 12 months.

The total number of people directly employed in business format franchising in Australia has reached 472,000 permanent, part-time and

THE NUMBERS YOU NEED TO KNOW Franchising accounts for about four percent of all small businesses in Australia, says Bruce Billson, executive chairman of the Franchise Council of Australia.

And it’s holding its own in a transitioning economy following the end of the mining boom.

“Total sales turnover for the sector has risen slightly, while employment has steadily risen and created more permanent full-time jobs. Franchisors are also predicting growth in

S NAPS H OT O F AU S TR ALIAN FR AN CH I S I N G

So should you worry that the numbers are declining?

Professor Lorelle Frazer, director of Griffith University’s Asia-Pacific Centre for Franchising Excellence, says this gradual reduction in franchise systems is expected as the sector continues to mature.

“Franchise brands have continued to merge and consolidate to remain sustainable and to grow,” she explains. “Whilst the number of brands has declined, individual franchise systems have grown internally with modest increases in the number of franchise units.”

The 2016 survey shows a total of 79,000 units operating in business format franchises in Australia. Whilst the number of franchised units has slightly increased and company-owned units decreased,

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$146bn in total sales revenue

1,120 franchise brands

79,000 business units

472,000 people employees

there has been no net overall change in the number of franchise units since the 2014 survey.

WHICH SECTORS RULE? Want to buy into the major industry in franchising? The retail (non-food) industry attracts the most brands in the Australian franchising sector, with 26 percent of brands operating in this segment.

Behind this, 19 percent of franchise brands are found in accommodation and food services, 15 percent in administration and support services, and 10 percent in other services such as personal services, automotive repairs and IT. However Professor Frazer highlights that the franchising sector continues to be impacted by intense competition in retailing, particularly non-food retailing.

“Food retailing has been more resilient with consumers responding well to variety and innovation in food concepts,” she says. “However, we can expect to see plenty more turbulence in the retail sector moving forward.”

FRANCHISING CREATES JOBS A real positive for the Australian franchising sector is its employment growth, which has been on a steady rise since 2012.

Significantly, the proportion of people employed on a permanent, full time basis has increased, suggesting a more optimistic outlook ahead.

WHAT KIND OF FRANCHISES? If you want to invest in an established brand with plenty of experience to offer new franchise recruits then you’re in luck.

Almost two thirds of the survey respondents (59 percent) categorised themselves as mature – that equates to franchising experience of at least a decade.

Just under one quarter (23 percent) were young brands with between five and 10 years in franchising.

Eighteen percent of the survey respondents are business emerging in the franchising sector, with less than five years’ trading as a franchise.

Predominantly the businesses operating in the franchise sector are small systems with fewer than 20 franchised units.

While 41 percent of franchisors are at this level, they face challenges if they remain small-scale.

“Small systems have to get over that hump [20 outlets] otherwise they don’t make it,” says Frazer.

Business models that have taken their networks to beyond the critical 20 units, but have not yet exceeded 50 outlets are considered medium franchises – and 25 percent of the sector sits in this category.

That leaves a larger 34 percent of large systems operating in this space.

The vast majority of franchises in Australia (90 percent) are homegrown. So investing in a franchise will more than likely be buying into an Aussie concept or innovation.

That’s not to say these Australian brands don’t have global dreams – they do.

One third of the sector already operates overseas and New Zealand attracts three quarters of these exports despite its limited potential.

English speaking countries understandably prove most popular for expansion plans – 21 percent of these globally-minded systems are developing business footprints in the US, 17 percent head to the UK to build a business.

And despite the appeal of the massive markets of India and China, Malaysia is the most popular Asian destination for Australian franchisors.

US TRENDS Darryn McAuliffe heads up the Australian arm of the US business FranData.

In its home base FranData has been collecting data for nearly 30 years; it’s a recent development in Australia.

The statistics for the US sector show how franchise heavy Australia is. The US has 3193 brand compared to our 1120, yet the population difference is considerable.

But the figures also indicate trends that we are already starting to follow.

America has the fast food or quick service restaurant sector as the most dominant, with health and fitness concepts also heavily represented across the 29 industries that franchising operates in.

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Healthy fast food is underpinning this growth, says McAuliffe, with Japanese cuisine the fastest growing food category in US franchising right now.

A US pattern that Australia is mirroring is the development of franchisees operating more than one unit – multi-unit franchisees in other words.

Our market is far behind the US where 55 percent of the market is multi-unit sites, but it’s an increasing trend.

However it’s not all go, go, grow. Unit growth is slowing and that’s a reflection of the wider economy.

So the strategy is increasing market share, says McAuliffe. And this means performance really matters. “The US has an insatiable appetite for measure and compare,” he says.

WHO ARE YOU? James Young heads up recruitment at consultancy firm DC Strategy. He says franchisees today are interested in more than a simple financial equation. Yes franchise buyers want to find an opportunity that offers the right return on investment but they are also seeking something greater.

“People want a connection with a brand, a bigger meaning,” he says. But they also want flexibility, with part time business options increasingly popular, and a general shift away from the 24/7 working ethos.

And they expect to be challenged in the purchasing process.

“People want to be put through hoops, they want to know it’s tough to get into the business,” adds Young.

SO WHAT’S NEXT? In a previous column for this magazine Professor Andrew Terry considered the changing demographics that will change the face of franchising – cultural diversity, an ageing population, the digitally-driven Millennials.

These macro factors will help shift what franchising is and becomes – as will the needs of today’s and tomorrow’s franchisees.

We know what the sector looks like now – what’s exciting is to consider what it will be next.

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HEAD OFFICE 08 8376 3016 www.st-louis.com.au

CE LE BR ATI NG EXCELLENCE

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I

t was a night of glitz and glamour at the franchising sector’s night of nights at the Canberra Convention Centre’s Royal Theatre. The MYOB FCA Excellence in Franchising Awards and Gala Dinner began with pre-dinner drinks and photo booth fun with TapSnap, headed up by smiling master franchisor Dan Kelland.

The theatre lit up in a mystical purple hue and tables adorned with glowing candles on stunning silver candelabras. It was then that our charismatic master of ceremonies Michael Pope began the evening in style.

So who took home gold on the night?

“If you don’t take your franchisees, or their staff or your staff along for the ride, the innovation dies on the vine.

So you must really have an inclusive process on bringing people into innovation, so that they feel a part of it.

Communicate it well and train them well,” he said.

The Single-Unit Franchisee of the Year with two or more staff was taken out

by Chris Wall and Robyn Mitchell who run Pizza Capers in Gungahlin.

Both have run their shop for four years, and is number one in sales within the network. The Canberra locals have won the CANSTAR Most Satisfied Customers Award for five years in a row.

It seems like its strategy is on track, as Poolwerx continues to pave its way into international waters, with a recent expansion into the US 18 months ago in five states.

The winner of the prestigious Australian Established Franchise of the Year Award was Poolwerx, with CEO and founder John O’Brien graciously accepting the award with a heartfelt speech.

Emerging children’s swim school franchise Jump! Swim Schools was named Australian Emerging Franchise of the Year.

Founded 24 years ago, the business has evolved from a man-in-a-van operation into a model that supports big businesses with over 106 partners operating close to 100 stores and 300+ vans.

BAKERS DELIGHT

POOLWERX

As we celebrated long standing veterans in Australian franchising, we recognised the achievements of new faces leading the way in innovation.

The inspiration behind Jump! Swim Schools business was simple. Ian Campbell, CEO and founder is a father to three young sons and has a long history with swim schools. Ian opened his first purpose-built swim

“I remember when I was nine years old and I knew in my heart that I wanted to succeed. I wasn’t sure what it was that I wanted to do, but I knew I wanted success,” said O’Brien.

As innovation was the theme of the National Franchise Convention, which the awards were a part of, he had some key messages for what it takes to be ahead of the crowd.

“Having a culture of innovation is not enough; you also need a structure and strategy for innovation, having rewards for innovation, having people and the environment in which it’s pretty cool to make mistakes and to push the boundaries. Sometimes mistakes are good.

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PANDORA

JUMP! SWIM SCHOOLS

school in 2011 after identifying the difficulty in teaching young beginners in big busy aquatic centres.

FCA EXCELLENCE IN FRANCHISING AWARD 2016 WINNERS

“By franchising our business, we get increased brand recognition across the market, are able to reach more consumers and help them appreciate what kids are capable of in our swim schools,” he said.

Australian Established Franchisor of the Year – Poolwerx

The boys from InXpress Australia Sydney CBD picked up the title of Single-Unit Franchiser of the Year less than two staff.

Childhood friends, Shaun Birley and Sam Orders have excelled as business partners.

Pandora Jewelry took home the award for the International Franchisor of the Year.

Luce Gill, national franchise and commercial manager said that feedback was the secret to adapting international learnings on Aussie shores.

“We really seek to get the franchisees feedback on any ideas that we have,” she said.

POOLWERX

“Just because there is a global promotion, it doesn’t necessarily mean it will work in the Australian marketplace in the original format and Pandora from all the way to the top is very receptive to ideas – from the clientele, to the CEO, up to the offices in Hong Kong and Denmark… we really listen to our franchisees and involve them in every step of the process.”

Humble baker Ryan Kirkham took home the Franchisee Community Responsibility and Contribution award. He is a multi-unit franchisee at Bakers Delight and has been involved with the Hear and Say Foundation, Rip City basketball team, Wishlist, and weekly bread donations to Life Church to help the homeless and struggling families in the community.

Boost Juice franchisees Daniel Mesiti and Anthony Stahl were awarded the Multi-Unit Franchisee of the Year. The pair own five Boost stores and are one of the most highly awarded partnerships in the brand’s history.

Other winners of the night included Specsavers, who took out the Excellence in Marketing Award and Retail Zoo, who was awarded the Franchise Innovation Award for Boost Juice Bars.

SALTS OF THE EARTH

A total of 14 Excellence in Franchising Awards were presented on the evening.

Outstanding individuals and businesses were recognised across a range of functions including franchisees, suppliers, support staff and franchise systems.

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Australian Emerging Franchisor of the Year – Jump!

Swim Schools International Franchisor of the Year – Pandora Jewelry Multi-Unit Franchisee of the Year – Boost Juice, Chatswood, Bankstown, Eastgardens and Top Ryde, NSW Single Unit Franchisee of the Year, two or more staff – Chris and Robyn Mitchell, Pizza Capers, Gungahlin, ACT Single Unit Franchisee of the Year, less than two staff – Shaun Birley and Sam Orders, InXpress, Sydney CBD Franchise Woman of the Year – Natalie Brennan, Foodco, NSW Field Manager of the Year – Stephen Hall, Poolwerx Excellence in Marketing – Specsavers Excellence in International Franchising – G.J Gardner Homes Franchisor Social Responsibility – Bridgestone Australia Franchisee Community Responsibility and Contribution – Baker’s Delight, Kawana & Maroochydore, QLD NextGen winner – David Lindsay, Salts of the Earth Supplier of the Year – Franchise Relationships Institute Franchise Hall of Fame Inductee 2016 – Murray d’Almeida

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BECOME YOUR

OWN BOSS A

re you ready to move on from working for the man and become your own boss? Here are six ways to get it right.

You’ve been working in your role for some time, and have always been interested in working for yourself. A franchise model can be a good way to be your own boss, without set up requirements of a start-up. A franchise can offer you proven systems, a renowned brand, and on-going support from the franchisor.

Here are six steps to becoming your own boss:

YOUR PASSIONS 1. KNOW AND SKILLS SET Yes, you want to be your own boss, but it’s important to understand your interests and skills set. It isn’t wise to select a franchise model simply because a franchisor has told you that there is a guaranteed income or exponential return on investment.

Profit is important, but not just for profit’s sake. Make sure to also consider your motivations and ability to run that business.

A franchise term can start from three to five years, and although it doesn’t seem like a long time, it isn’t a short amount of time either.

TO KNOW THE SPEAK TO 2. GET FRANCHISING SECTOR 5. EXPERTS There is no such thing as being too educated, especially in the franchising sector. Consider enrolling in a free, online pre-entry education course at Griffith University which is good overview of how franchising works. The course is funded by the Australian Competition and Consumer Commission.

TO BUY-IN 3. PREPARE Joining a franchise system usually involves funding an initial investment, which often covers training, fit out or mobile vehicles, and even licensing for some models. These buy-ins can range from $20,000 to even six or seven digit sums. Some brands will offer finance options but it’s very important to revise your expectations when it comes to selecting a funding option.

TO KNOW A 4. GET RANGE OF BRANDS Once you’ve narrowed down industries you are interested in, it is a good idea to get to know franchisors for a range of brands in the category. Attending franchising expos is a good way to meet franchisors and existing franchisees. These run in Sydney, Perth, Brisbane and Melbourne every year.

This is a common advice theme amongst legal and accounting professions, as well as existing franchisees.

A study in March this year found that fewer than 20 percent of franchisees and independent small business owners really understood the term ‘due diligence’ before buying a business.

The Franchising Code of Conduct, which governs the sector, clearly states: ‘You should get independent legal, accounting and business advice before signing the franchise agreement’.

So it is extremely important to do your research before signing the dotted line; otherwise you may risk binding yourself to an agreement for five or more years with a system you didn’t consider thoroughly. And that could result in higher personal and possible financial costs than the fees you would need to pay for expert advice.

TO EXISTING 6. SPEAK FRANCHISEES Who better to ask than someone who is in the system already? Together with expert advice it is imperative to existing and former franchisees.

Ask current franchisees if they are getting the return in investment that they expected. Ask former franchisees why they are no longer in the system. The disclosure document is required to include the contact details of current franchisees and some past franchisees.

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Ask current franchisees if they are getting the return in investment that they expected.

Ask former franchisees why they are no longer in the system

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CAN YOU BUY A FRANCHISE WITH NO MONEY?

W

hile an individual’s suitability for a franchise model can be a deal breaker more often than not, the capital investment required to buy-in can also be the culprit. Most hospitality franchises alone come with a six-digit upfront price tag, writes Noha Shaheed.

So can you buy a franchise if you have no money in the bank?

James Scurr, managing director at Cashflow It Group says it can be done, but isn’t really looked favourably upon.

“We refer to ‘hurt money’,” this is normally cash savings contributed by the franchisee to the set-up of the business.

equipment of the business,” says McAuliffe.

“A number of brands also have formal lending programmes in place with banks and other lenders which allows borrowing against the value of the franchise business.”

SO IS IT A GOOD IDEA TO SEEK FINANCE FOR A FRANCHISE? This could depend on the individual.

“If a franchisee has no capital ‘at risk’ in the business then it is too easy to walk away from the business if things get tough.”

Darryn McAuliffe, CEO of FRANdata Australia says that it’s almost impossible to buy a franchise with no money.

“Apart from the right to carry on a business using the franchise ‘system’, initial franchise fees are generally required to offset the costs of recruitment for a franchisor and initial training of the new franchisee,” he explains.

However, potential buyers who have some capital, but not enough for the full cost of the initial investment may be able to get around it.

Scurr says it is not uncommon for someone who has some savings to contribute to work with a bank or lender for the remaining money.

And there are processes in place for this type of finance.

“The acquisition can be sometimes be completed by borrowing against other assets or the

Scurr comes from a background as a franchisee in the hospitality space, and he understands the importance of using finance to ensure there is enough capital to grow the business.

In his view, using every cent he had to pay the initial investment would not have left enough for the expenses required in the first three to six months of operating the business.

“Also, the tax benefits associated with finance in business are a great bonus,” he adds.

And it’s important to know what you’re getting into if you choose to seek finance.

“It is essential that applicants fully understand the terms of any finance being provided and are realistic in the planning they undertake to ensure those obligations can be comfortably met,” says McAuliffe.

“Lack of capital is a key cause of small business failure and potential buyers should take great care before trying to enter into a franchise arrangement with insufficient capital,” he advises.

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REVISE YOUR EXPECTATIONS If your funds are severely limited it’s worth considering if another option would be more suitable – holding off an investment until you have the money to hand or choosing a minimal-cost franchise option for instance.

program over a longer duration of time, typically between six to 12 months.

If you decide to go ahead, it’s important to be realistic about expectations when seeking finance options. These include taking a small bank loan or family funds. Some brands have pathways to attaining finance.

The program also requires a financial commitment from the Kick Start trainee which is held as a deposit and upon successful completion of the program the deposit goes towards their bakery purchase. However, Bakers Delight does look at their candidates’ financial capabilities before starting the program to ensure that upon completion, they have the minimum finance required for working capital.

Bakers Delight offers a Kick Start franchise program.

And if candidates don’t have enough finance after the program?

“The barrier which many of our prospective Gen Y franchisees face is access to finance, both for training and to purchase or lease a bakery,” says Julia Hewagama, franchise recruitment manager.

“They may be in a position to lease a bakery from a multi-site operator’s portfolio at the end of the program,” explains Hewagama.

WHAT YOU NEED TO TAKE AWAY

“To overcome this finance barrier and to support our network talent we introduced the Kick Start Franchise Program which is an internal pathway to franchise ownership.”

Going into a business under-capitalised is a risk, so be realistic about your cashflow projections, review your options and stress test the numbers.

The program covers the same modules that external candidates complete, however, it allows for the trainees to maintain their full time employment within the network, whilst completing the

If it is more suitable for you to have the capital investment in hand, working as an employee of a brand where you would like to buy a franchise may be an option to start with.

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Lack of capital is a key cause of small business failure and potential buyers should take great care before trying to enter into a franchise arrangement with insufficient capital

HOW TO FIND THE FINANCE TO BUY A FRANCHISE

B

uying a franchise is top of your must-do list right now but you need to be able to fund the purchase, writes Sarah Stowe.

There are some essential questions to ask yourself before you take any more steps towards finding the perfect franchise: • What assets do I have?

• Do I need to get a bank loan?

• How good is my credit rating?

The critical element in getting funding from a banking institution is your credit rating.

It’s easy enough to access your credit report online and this will give you insights into any blips in your credit history that you may need to address.

You will stand a much better chance of accessing funds from a bank if you are seen as a good risk.

Evaluate your assets – these can include property, investments, cash and savings.

How much do you have to offer as financial security?

Banks will offer secured or partly secured loans; a business mortgage loan might give you a cheaper line of finance but you will need sufficient assets to pay off the bank if you find yourself in the unfortunate situation of being unable to repay the business debts so the question of mortgaging your home against a business is a crucial one to consider.

Then consider your debts: it is worthwhile reducing any debts to free up your money before you approach a financial institution for funding.

Expect to outlay at least 50 percent of the total investment of the franchise purchase in equity.

Some established franchise brands are accredited with one or more banks – although the number of franchise systems is much smaller than you might think.

Such accreditation allows the franchise buyer to borrow up to 70 percent of the purchase price based on the reputation of the franchise system and the value of the franchisee’s business.

Banks inevitably favour established brands which can demonstrate consistent cash flow and success in a variety of locations over periods of economic upturns and downturns.

That might influence your choice of franchise.

QUESTIONS TO ASK ABOUT FUNDING FOR A FRANCHISE 1. Does the franchisor offer internal financing?

2. Does the franchisor provide a limited

period guaranteed income?

3. Can your family help fund the purchase?

4. Should you mortgage your home to buy the business?

5. How much working capital will you need?

6. How will you structure the business to maximise tax and superannuation considerations?

7. Will you need your spouse to continue working to bring in a reliable income until the business can support you both?

WHEN YOU ARE READY TO BUY A FRANCHISE Get organised before you approach the bank.

The bank will want to see a personal financial statement, tax returns and documented evidence of the equity you have.

Presentation counts, so the more professional you look, and the more you are able to demonstrate you understand the business proposition and how you will repay the bank the better your chances of success.

SO WHAT IF YOU CAN’T GET FUNDING RIGHT NOW? You may need to rethink your franchise options or consider whether another investment option might better suit right now.

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WHAT TO LOOK FOR IN A BRAND NEW FRANCHISE

B

uying into a brand new franchise business is a riskier venture than signing up to a franchise that’s been established for years and has a strong reputation in the market. But it’s an exciting opportunity to grow with the business and possibly have a hand in shaping the future.

You want to buy a franchise that has plenty of potential for growth, and get in at the start of something exciting.

What’s important before taking the leap into a brand new concept is to understand what the franchisor can provide – and whether this is in place.

Here are some ideas to consider:

THE FRANCHISOR CAN PROVIDE STANDARD PROCESSES In the shift to a franchise model the franchisor needs to establish good procedures and systems. Anything operational, whether that’s an accounting system, an operations manual, an ordering system,

rostering tool should be standardised, easy to understand and to access.

It’s much easier for the network to grow effectively if there are standard systems and reporting processes from the beginning.

THE FRANCHISOR SHOULD BE HANDS-ON This is particularly important if you are the first or second franchisee for a brand new franchise. As franchise chains develop, systems and training improve and other franchisees can provide advice.

But the risk-taking, ground-breaking franchisees who buy into the vision at an early stage will turn to the franchisor when anything is unclear.

THE FRANCHISOR CAN PROVIDE RESOURCES Today’s digital world makes it easy to store information and resources in one place for franchisees to access.

What’s available can range from an operations manual, online training program through to marketing material and online communications tools.

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5 POINTS TO CONSIDER 1. Does the franchisor have proof the model works? If the business is a brand new concept, that’s a challenge. Most franchise businesses convert existing concepts into a franchise model – ideally after two to three years of trading in more than one location. This helps you understand the viability of the model when run by someone other than the founder.

2. You’ll still need to do your own research on the business potential and the market – always back up what the franchisor tells you with your own independent due diligence.

3. How will the franchisor fund the business development? Developing a franchise model can be financially draining, so it’s good to understand how the franchisor plans to fund the growth of the business.

4. And how will it manage day-to-day elements like marketing? Does the franchisor’s growth strategy make sense?

5. How fast does your new franchisor intend to grow its business? Are you confident there will be the support on hand as the franchise adds to franchisee numbers?

6 THINGS your franchisor SHOULD TELL YOU

W

hat can you expect your franchisor to tell you about operating a franchise before you buy a business – and what might they not tell you that you need to know? Check out these points.

Most franchisors provide their franchisees with financial information about the business and some marketing and background information at the signing up stage. However, good franchisors continuously communicate with their franchisees to ensure all franchisees are:

1. Aware of all current and new policies and procedures 2. On track with their business 3. Operating a profitable business There are certain things franchisors do not often communicate to their franchisees, which include some of the essential requirements of operations, as Jane Garber-Rosenzweig, partner at Gable Lawyers, highlights here.

WHAT YOU WANT YOUR FRANCHISOR TO TELL YOU BUT NOW YOU KNOW ANYWAY WILL BE 1. COMPLIANCE ENFORCED

failing to comply so that no one can be vague about what will happen if there is non-compliance.

Let’s be honest, franchisors might say one thing and act differently. You can get a clear idea of how seriously franchisors take compliance from other franchisees in the network.

But remember that if you or one of your fellow franchisees gets away with a breach, it affects your relationship with the franchisor – and it can damage everyone’s business.

“Often franchisors choose not to do anything about minor breaches of the franchise agreement, and, in some cases, major breaches. Although it may be warranted in many cases to forgive certain small ‘deviations’ from the franchise agreement, any major breaches may potentially be very damaging to the brand.”

The enforcement of compliance with the franchise agreement is the necessary evil that must not be taken lightly, she says.

No franchisor wants to be a pushover.

So expect your franchisor to make it very clear that strict compliance with the franchise agreement and the system will be required. The franchisor should be able to spell out the consequences of

days. If your franchisor reiterates the requirement for enough working capital to enable you to run your franchise efficiently and profitably, that’s a positive sign.

Most franchisors will want to see a business plan and evidence that you can operate the business and support growth without suffering a cashflow crisis.

Good franchisors will remind you every six months or so about the need for an adequate amount of working capital. You can expect this to be incorporated into the normal communications between the head office and the franchisees.

ACCOUNTS IN ORDER AND SHARE YOUR FINANCIALS 3. KEEP Yes that’s right, sharing your financial information with the franchisor is increasingly common. Franchisors may have a centralised accounting system, which gives them control over and access to data so it can be audited at any time.

CAPITAL IS 2. WORKING ESSENTIAL

Expect clarity from your franchisor about what information you will be expected to submit, and in what format, and how benchmarking is managed across the network.

Franchisees can often overlook the need for cash to sustain a business in the early

“There is an obligation under most franchise agreements for franchisees

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to keep proper books of accounts,” says Garber-Rosenzweig.

“However, there are also legal obligations on franchisees as business owners to keep certain financial information, including tax related information, employee details, GST figures and other information.

“Franchisees can be audited by organisations such as the Australian Taxation Office or Fair Work Australia and any violations can negatively impact the brand.”

Franchisors can guide franchisees in what constitutes proper books of accounts and suggest courses that the franchisees may be required to undertake, she says. Franchisees should also utilise the services of a bookkeeper and/or an accountant.

COMPLIANCE 4. TERRITORY NEEDS TO BE OBSERVED If your franchise system is territory based, you want your franchisor to provide clarity about what can and cannot be done within the territory – this should be covered in the franchise agreement.

But in addition to the franchise agreement, the franchisor’ policies and procedures should clearly cover instances when the franchisor or another franchisee can operate in your territory.

“Your franchisor should also communicate any instances when your territory can become non-exclusive, if applicable, or be taken away from you,” says Garber-Rosenzweig.

ANNUAL BUSINESS PLAN 5. AN IS VITAL Has your potential franchisor outlined the benefits of having a business plan and actually adhering to it? All good businesses have a business plan which is updated annually. It is no different for a franchise.

Before you buy a franchise you should expect to put together a business plan and your franchisor should ask you to keep this updated.

A good business plan helps you make clear business decisions and work towards increasing profitability, and it can be the basis of regular discussions with your business development or area manager.

is clear and open communication,” advises Garber-Rosenzweig.

Communication is dependent on both parties so it’s vital that you keep your franchisor abreast of any significant issues that could have an impact on how you run your business.

Would your franchisor expect you to turn to them first if any problems occur in your business or even in your personal lives which will affect the business?

“You should not to be scared to approach the head office but utilise the head office to your advantage and ensure a trusting working relationship,” Garber-Rosenzweig adds.

What you want in a franchisor is someone who is aware of any problems within the system and is equipped to solve them.

Transparency in communication is a significant step towards a better understanding between franchisee and franchisor.

6. COMMUNICATION IS CRUCIAL The best relationships are those that have open and honest communication. Franchising is no different, as it is a business relationship between the franchisor and franchisees.

“Your franchisor should ensure that there

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Of course franchisee profitability directly affects the prosperity of franchisors, so it’s in their best interests to ensure a smooth running operation and a network of satisfied franchisees.

Nurturing that relationship and ensuring all issues are ironed out quickly are keys to success of any franchise system.

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HOW TO

FIND THE BEST

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PETER BUCKINGHAM Peter Buckingham is the managing director of Spectrum Analysis Australia Pty Ltd, a geodemographic and statistical consultancy.

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S

o you have decided to join the “XYZ” franchise system, which involves a commitment to open a store. Whether XYZ is a food, home goods or an office services (B2B) business, the franchisor is likely to make the following statements:

• We will assist you in finding a site • It is up to you to do your own due diligence as to the suitability of the site • While we can assist you in this, it will be your final responsibility (as normally your name is on the lease).

• We have undertaken some franchise network planning, and retail site analytics, but cannot share this with you by law.

You may be paying “XYZ $50,000 to $100,000 to join the franchise system, $20,000 for your training, and you are about to commit for a five year lease at $150,000 per annum, and a $350,000 fit out cost – much of which needs to be paid before you open.

Untitled-2 1

While your immediate outgoings may be about $500,000, you are actually committed (in legal documents) to about $1.4m over the next five years. Hopefully it is going to make you a profit.

So while all the words are great, and you are being asked to sign a document indemnifying the franchisor that they have NOT given you any iron clad commitment as to sales forecast or profits, you want to go ahead.

What should you be looking for in your own due diligence before committing to this new franchise system and the suggested site?

FRANCHISE SYSTEM DUE DILIGENCE There is a set of due diligence I will mention, but not expand on. This is the area of the confidence in the “ABC” System, its ethics, and the way it is currently operating, and how you would expect it to operate in the future. This is about the credentials of the senior management, speaking with both existing and past franchisees, confidence

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in their products and the systems they use to run a good business, and finally confidence in yourself and their business plan for your franchise.

If you have crosses in any of these areas, maybe it is time to look elsewhere?

SITE DUE DILIGENCE – 5 MAIN AREAS OF CONCERN What should you be looking for in a site, in conjunction with the network development manager? The priority may change depending on if you are looking inside a shopping centre, a shopping strip or a free standing store. Hopefully the franchisor has undertaken what we call Retail Location Planning and has some logic and priority on areas for new stores.

THE DEMOGRAPHICS How do I know there are enough people living around the area, and are they the right type of people for what I am selling?

The first point of call is the ABS website www.abs.gov.au and look up Census

and Quikstats. You can look at any area, discover which type of people live in each suburb or postcode and some relevant demographics to understand the area.

data maybe your franchisor should subscribe to www.zenithtraffic.com.au which will give traffic estimates in all metro areas.

If you are a B2B business, then think in terms of what businesses surround you, and how many people work in the vicinity. This is most relevant to businesses like accountants, print businesses, lunch time food.

As well as passing traffic, can potential customers see you (visibility), can they get to you easily (access) and can they park?

A great site is wasted if nobody knows you are there and can’t park to visit you.

Onsite parking may be an essential - is there enough?

THE PHYSICAL SITE It’s no good leasing 200 sq m if you need 500 sq m! Make sure the site fits what you are trying to do. If it is in a food court, is there enough frontage, and do you get a remote store room? Think for the future, and what you expect the business to look like in two to five years’ time.

TRAFFIC, ACCESS, VISIBILITY AND PARKING Traffic, both pedestrian and vehicles can be measured, and in many cases is extremely important. For vehicle traffic

GENERATORS Think in terms of what is around you and therefore drawing opportunity near to your store.

Twenty years ago Bunnings was described as a Category Killer to the corner hardware store.

These days many similar and ancillary businesses want to be as close to a Bunnings as possible, as they recognise the sheer drawing power of the DIY and blue collar type customers into the immediate

area, and to the store. Bunnings does not supply everything, and many expert businesses trade very well in its shadow.

COMPETITION Some people over react to competition, some businesses actually like to be with their competitors. Why do Homemaker Centres exist – each with up to four bed shops and electrical retailers?

While you may not want your competitor next door, it normally is not the end of the world if they are neighbours.

SUMMARY You will always be told in franchising that it is up to you to perform your own due diligence. Do your research wisely, or seek assistance from an expert for the property decisions you will be required to make – probably the largest commitments you will ever make, besides your residential home.

OWN A PIECE OF FRANCE Michel’s Patisserie has grown to become Australia’s largest patisserie chain with over 200 locations.

Renowned for delicious specialty cakes, pastries, treats, savouries and award-winning coffee, Michel’s Patisserie has been awarded ‘Coffee Shop of the Year’ for four consecutive years, as voted by consumers through Roy Morgan.

Most recently, Michel’s Patisserie evolved further to include a larger Café model, complete with an extended menu, including breakfast and light meals.

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We are at your service Visit the home of Franchising magazine online at FranchiseBusiness.com.au and ďŹ nd FREE resources to help you on the way to franchising success: 1. How to Buy a Franchise: We share the journey to franchise ownership by revealing the six fundamental steps anyone interested in buying a franchise must know.

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O T W HO

N A T O SP R I A F UN T C A R T N O C

T A H W AND O D O T ?

T I T ABOU

A

re franchisees affected by unfair contract legislation? There’s a new law coming into play and it could give you greater protection in your franchise agreement. Corinne Attard, partner, and Daniel Jepson, solicitor, of Holman Webb Lawyers explain.

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From 16 November 2016, the new unfair contracts legislation will apply to contracts entered into by a small business. To date only individual consumers have been protected from unfair contracts under these laws. As small business operators franchisees may soon be able to make use these protections in addition to those under the Franchising Code of Conduct.

Currently the unfair contract laws which are contained in the Australian Consumer Law apply only to consumer contracts that are in a standard form. A consumer contract is one for the sale of goods, services or land to an individual for predominantly personal, domestic or household use. A standard form contract is not defined but if someone alleges a particular contract is standard form, then it is up to the other person to prove that it does not.

WHAT IS CHANGING? The new laws will now apply to both consumer contracts and small business contracts that are in standard form and entered into on or after 12 November 2016 or are varied after that date.

business that employs fewer than 20 persons (i.e. a small business); and 3. the upfront price payable under the contract does not exceed $300,000 ($1 million for a contract with has a duration of more than 12 months).

But there are a few things to be aware of.

Firstly, the number of employees includes casuals who work on a regular or systematic basis, and, the ‘upfront price’ is effectively any amount payable under the contract that is certain when the contract is entered into.

For example, the upfront fees and any fixed annual fees (such as rent) would count, but not a payment based on a percentage of turnover such as a royalty.

WILL FRANCHISE AGREEMENTS BE COVERED?

A ‘small business contract’ is one that:

A franchise agreement will meet the definition of a small business contract unless the franchisee has more than 20 employees or the total of the upfront price franchise fees exceeds $1m (assuming it is longer than 12 months). The majority of franchise agreements will meet this definition.

1. supplies goods or services, or grants an interest in land (for example a lease); and 2. at the time the contract is entered into, at least one party to the contract is a

The key question is therefore whether the franchise agreement is considered a standard form contract. To determine if a contract is in a standard form, there are a

few things to consider, including: • who holds the bargaining power in the transaction; • whether the contract was prepared by one party before any discussion relating to the transaction occurred; • whether one party was presented with the contract and effectively required to ‘take it or leave it’; and • whether the terms of the contract have been tailored for the particular transaction.

These circumstances might well describe how many franchise agreements are formed. Most franchisors have standard agreements that they submit to proposed franchisees, who enter often into them with little or no negotiation even if given the opportunity by the disclosure protections of the Franchising Code.

In those situations, the franchisors will likely be considered to hold all the bargaining power and the contract is unlikely to be customised for the particular franchise. The Australian Competition and Consumer Commission certainly thinks that franchise agreements will be considered standard form contracts, as they are used in examples of how the new laws will operate.

Franchisors will presumably argue that if a franchisee elects to accept a franchise agreement without negotiation it should not automatically mean it is standard form. However it will be a matter for a court to decide.

WHAT OTHER CONTRACTS MIGHT BE INCLUDED? The new legislation will apply to many contracts that are part of day to day operation of a franchise and business.

Any supply contract that includes terms and conditions that are not negotiated (for example, printed on the back of an invoice) could potentially be subject to the new laws.

This could include contracts as broad as leases, licences to occupy and consultancy agreements. If so, they will be subject to having any unfair terms made inoperable (more on this below).

WHEN IS A TERM UNFAIR? What will be considered unfair will depend on the circumstances of each case. The Australian Consumer Law sets out three matters that must be taken into NOV/DEC 2016 | 44 | WWW.FRANCHISEBUSINESS.COM.AU

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account when deciding if a term is unfair: • whether the term would cause a significant imbalance in the parties’ rights and obligations arising under the contract; • whether the term is reasonably necessary to protect the legitimate interests of the party who would be advantaged by the term; • whether the term would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.

Based on the examples in the Australian Consumer Law and from the ACCC, some common clauses in franchise agreements that may be at risk of being considered unfair include: • a term that allows a franchisor to terminate the agreement for no cause without reciprocal rights for the franchisee; • a term that provides for the franchisee to pay a penalty or liquidated damages that don’t fairly reflect the loss caused; • a right to change the agreement without the consent of the other party; • clauses that limit the liability of a party for its actions.

WHAT HAPPENS IF A TERM IS UNFAIR? The Courts have broad powers to deal with terms that are declared unfair. If a court finds that a particular term is unfair, that clause only will be void - this means the contract stays in place without that term in it. Further, the Court can grant an injunction, payment of money or in fact any order it thinks appropriate in the circumstances.

While anyone can seek to challenge a contract term under the new laws, we anticipate that the ACCC will be active in making sure the new laws are complied with. Indeed, the ACCC has already stated that it will conduct compliance activities in the franchising sector.

WHAT SHOULD I DO? For intending franchisees, the most important thing to do when you enter into a franchise agreement is to get legal advice. As well as looking at the commercial terms of the agreement (the amount of the fees etc) ask your lawyer if any of the terms could be considered unfair. If so ask for their deletion.

It is not advisable to just take the view that if they are unfair they are void anyway as you will need to go to court to prove that. Much better to have the clause removed at the outset.

Both franchisees and franchisors will be coming to grips with these new laws over the next year and working out what clauses should stay in and what comes out. It is a prime opportunity for franchisees to negotiate a more evenly balanced franchise agreement.

This in turn we can hope will reduce future disputes rather than increase them.

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HOW TO MOVE ON: SELLING YOUR FRANCHI

JANE GARBER-ROSENZWEIG Jane is a partner at Gable Lawyers, a practice focused on commercial law, franchising, distribution and licensing on a domestic and international basis, leasing, and the protection of intellectual property. Jane is also adjunct lecturer at the College of Law and a board member of Awards Victoria.

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hat you need to consider before you sell your franchise business. Most franchise agreements have restrictions on the sale of the franchise.

These include obtaining consent of the franchisor. Franchises which run from specific locations also have landlord’s restrictions on assigning the lease. There is a lot for you to consider before listing your business for sale, including the following:

FRANCHISE AGREEMENT You must check your franchise agreement for the procedure and requirements for selling your business. These may include a right of first refusal in favour of the franchisor, which you must comply with.

There is also a likelihood of a transfer / sale fee payable to the franchisor from the purchase price, which can be expressed either as a percentage of the purchase price or as a fixed amount.

If the franchise agreement is silent on the issue of sale you can still ask the franchisor to agree to the transfer although the franchisor’s consent is not required.

name and grant each franchisee licence to occupy the relevant location. If this is the case, the franchisor will either assign the licence agreement or draft up a new one for the purchaser, once the buyer is approved.

However, if you are the tenant named in the lease, you must satisfy the landlord’s requirements for the transfer contained in the lease and obtain the landlord’s consent.

This may and often does include paying landlord’s solicitor and agent costs.

ENGAGE AN ACCOUNTANT In order to sell your business, your accountant will need to prepare relevant financial information to be provided to the potential buyer. The financial information must be accurate and disclose all assets and liabilities of the business. An accountant will also be able to assist you with determining the sale price, taking into account its value and all the expenses that will be incurred.

You should review all the requirements and preconditions to the transfer contained in the franchise agreement to understand what is required from you. Among other things, the purchaser will be required to satisfy the franchisor that they are business and financially savvy. The purchaser will also need to successfully complete training.

You also need to check the requirements in your State legislation as to whether your franchise is considered a small business, in which case an extra form with financial information needs to be completed by your accountant.

You must also understand how much time is left in relation to the term of the franchise agreement and whether there are any options to renew it. The longer the total time span of the franchise agreement, the more valuable your business is.

You have a higher chance of selling your franchised business fast with the assistance of a good business broker. Choose a broker who has experience in selling franchised businesses and, if possible, one that has successfully sold other franchises within your group.

LEASE If your franchised business is tied to a location, you need to review the documents allowing you to occupy your premises.

Some franchisors hold the leases in their NOV/DEC 2016 | 49 | WWW.FRANCHISEBUSINESS.COM.AU

ENGAGE A BUSINESS BROKER

ENGAGE A FRANCHISED LAWYER Selling any business would require an assistance of a lawyer. Selling a franchise requires a lawyer familiar with the

Legal and business experts stress the importance of having exit plans set at the point of purchase.

So what are the signs that it might be time to sell?

1. YOU’RE ENJOYING IT LESS THAN YOU USED TO

franchise industry and dealing with franchisors. A franchised lawyer will be able to: • review your current franchise agreement • review the lease, if applicable • draft the contract of sale • deal with the landlord and the transfer of the lease • liaise with the franchisor to ensure smooth transition

COSTS OF SELLING You must consider the costs of selling your franchise and account for it when setting the price. The costs to you will include: • business broker’s fees • accounting fees • legal fees • transfer costs under the franchise agreement payable to the franchisor • landlord’s costs, which are payable by you unless you agree with the buyer that they will pay • capital gains tax if you sell your business for a higher value than its cost price Before selling your business, get all your ducks in a row and do your homework. See the relevant advisers so that you enter this process being educated as to the consequences and outcomes.

If you’re finding the daily grind is becoming more and more of a drag, or there seems to be a halt on the level of passion you have for your business, it may be time to go. Especially if it’s the first time you’ve noticed a drop in interest.

2. PROFITS ON THE DOWNWARD TREND Although it can be difficult to sell a franchise that is underperforming, if you have been in business for some time and profits aren’t on the rise, it might be time to exit.

3. YOU’RE NOT DEVELOPING If you’re not developing personally and professionally from the business, as well as the franchisor’s guidance, it could be a sign you need to quit the business.

Tony Arena who heads up BCI Business Brokers believes franchisees need to get more from their royalties than branding and systems.

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“Franchisors should provide value for royalties,” he says.

“If you’re in a franchise system that isn’t teaching you, it’s time to go.”

WHAT TO KEEP IN MIND IF YOU WANT TO SELL Rob Toth, partner at Marsh & Maher Lawyers, says franchisees need to consider the following aspects before selling a franchise: • Landlord approval • Any finance remaining on leased equipment or assets is paid for • The franchisor’s consent He says the risks associated with selling a franchise include losing the buyer due to waiting for a franchisor’s consent, or that their interest may go cold.

This can impact on the value of the business.

“If you’re thinking of selling, talk to your accountant and lawyer,” advises Toth.

“It’s very much in the hands of the franchisor providing consent.”

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he cleaning services industry range is championed by brands which add value with unique, premium products and innovation, writes Noha Shaheed.

According to the Construction and Property Services Industry Skills Council’s 2015-16 Environmental Scan, demand for cleaning services is driven to a large extent by trends in commercial construction activity and outsourcing cleaning services by governments and businesses which are looking for operational cost efficiencies.

Franchised brands are on the incline, but the number of foreign operators in Australia will increase competition for larger cleaning contracts, and lead to some reduction in profit margins for major operators in Australia.

Environ mentally-friendly chemical products have also made significant impact on this market, although this is adopted unevenly across the industry.

The commercial cleaning market is expected to generate revenue of $8.5bn in 2016-17, up 1.9 percent for the year, according to IBISWorld. Industry revenue is expected to climb by an annualised 2.6 percent over the five years through 2016-17.

It is forecast to continue growing over the next five years, with revenue rising at an annualised 2.2 percent to reach $9.5bn in 2021-22.

Who are the major franchised players in the market?

AMC CLEANING AMC Cleaning, a professional office and commercial cleaning franchise, was established in 1988.

“What sets us apart is our innovation with technology,” says Kristie Coade, chief operating officer.

She highlights the importance of cleaning materials provided within the initial investment which includes required equipment and a chemical package that is NOV/DEC 2016 | 53 | WWW.FRANCHISEBUSINESS.COM.AU

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valued in the $2,000 mark.

Coade says franchisees are encouraged to invest in this equipment, and if they choose to upgrade, AMC has brand power to get franchisees the better price.

Franchisees hold a triple certification, which complies with International Organisation for Standardisation requirements in environmental management, quality management and occupational health and safety management systems.

And the model is suitable for metro or regional sites.

“AMC’s footprint is far and wide all over Australia and New Zealand,” says Coade.

“We don’t have territories, we never have.

We don’t believe in boundaries.”

Leads are a two pronged approach from branch offices across Australian and New Zealand which include telemarketing and business development teams which are designed to generate leads for franchisees.

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Franchisees are also encouraged to source leads.

nasty smells,” says Janet Bannon, general manager.

The initial investment of an AMC franchise is $15,000 + GST inclusive of the starter pack of equipment and product, two week training, access to accounting system, uniforms, business cards, and on-going support. Term duration is 10 years with an option to renew.

“We comply with Environmental Planning and Assessment regulations and our bespoke products have passed stringent European Union standards.”

The Ovenu start-up package includes everything that a franchisee needs to start their business including equipment and tools, marketing, printing, public liability insurance and three months’ supply of products. Franchisees are required to purchase their van separately.

Coade’s advice to potential buyers looking for a franchise is the find a business model with the right match.

“You have to make sure it’s the right fit.

Make sure there is a reason you want to be in the cleaning game.”

“We recommend the Volkswagon (VW) Caddy and have a fleet discount with VW, but we are flexible as long as it is white, with a lift up back door and is rust free and reliable we can work with it.”

OVENU Ovenu, a domestic oven cleaning business, was established in 1994 in the UK and was introduced into Australia in 2005.

Franchisees are also provided with designated territories. However, the business comes with challenges.

“Our bespoke products are non-caustic and biodegradable, so our service is safe for our clients and their appliances with no

“I think the biggest challenge facing a new franchisee is working on their business

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BECOME A QUEST FRANCHISEE A PROVEN AND SUCCESSFUL BUSINESS FORMULA As Australasia’s largest apartment hotel operator, Quest is a brand business travellers have come to rely on for more than 25 years.

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and not just in it,” says Bannon.

“Buying a franchise is not buying a job, it is buying a business, and if franchisees have not been self-employed before it can be a big learning curve and requires a change of mindset.”

“Our monthly fees are fixed, so the harder a franchisee works the more money they earn.”

The initial investment of a franchise is $42,000 + GST. The model includes a 10 day training period, with ongoing support and mentoring for the term of the franchise. A term is five years with an option to renew.

“Do your due diligence, speak to existing franchisees, look at the history of the franchise,” advises Bannon.

“The service is highly valued, and yes they have to get their hands dirty, but the job satisfaction is enormous.

“Coupled with the flexibility of managing their own diaries, the Ovenu business is a great work life balance with high rewards.”

GRAFFITI EATERS Graffiti Eaters specialises in surface cleaning and maintenance for both graffiti and stains; the latter operating as Stain Eaters.

Mark Mackenzie, managing director, says that the brand is a second generation, 40 year old family business with 26 proprietary cleaning services.

The two brands operate under the model, Graffiti & Stain Eaters for this mobile franchise.

“We operate in niche industries that involve hard surface stain extraction and protective sealing,” he says.

“We are able to upsell and cross-sell our service offerings to add real value and accountability to our clients.

“There is a lot to learn, but knowledge is power and once mastered gives you a real competitive edge,” says Mackenzie.

“Cash flow is king – when starting any

business, make sure you have some saved up cash to get you through the first four to six months.”

As for equipment, the surface restoration vehicle, which is fully equipped with everything required to perform the service, can be leased through financial institutions.

Franchisees make profits with upsells for protective coating services.

Franchise territories are also important and provide long term capital growth.

“Our territories are exclusive for marketing but non-exclusive for performing work to already existing happy clients,” explains Mackenzie.

“The model is deliberately designed this way to give the best of both worlds, protection while being able to maximise the potential of every client franchisees bring on board.”

The initial franchise fee $70,000 plus GST excluding the vehicle. Investment is $110,000 plus GST inclusive of the vehicle. The model

GET THE RIGHT ADVICE BEFORE YOU COMMIT Whether a Franchisee or a new Franchisor getting the right advice from specialists with industry knowledge and experience may save you considerable money and heartache in the future.

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We act for local and international Franchisor’s and local master Franchisor. We provide fixed fees based on the scope of services.

Contact Robert or Marianne on (03) 9604 9410 or by email at rxt@marshmaher.com.au / mim@marshmaher.com.au www.marshmaher.com.au

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NOV/DEC 2016 | 55 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE LICENSING AND RETAIL GROUP

includes a four week full time training period in Melbourne and ongoing support one-on-one for the following 22 weeks. The franchise fee is 17 percent on net sales, and terms are five years with three options to renew.

guaranteed on three years scale,” he says.

What does it take to be a success?

The model does not offer territories but individual flexi franchises within a 20km radius.

• Ability to compete on tender: the ability to professionally cost and prepare cleaning service quotes, tenders and contracts for clients is key to maximising revenue and profit, as is the need to match required service standards to contract payment.

• Ability to communicate effectively: staff working for cleaning companies need to be able to communicate effectively with clients to ensure service levels are met.

• Use of production techniques that add value to base products: at times, it is important to provide clients with a choice of more expensive, value added services, such as major annual cleans, or to have connections with other providers in allied service areas.

• Business operator expertise: self-employed cleaners should have some degree of entrepreneurial skills, particularly in operating a small business, to maximise time and business opportunities.

• Having contacts within key markets: The ability to develop links with property managers, developers and real estate agents will help a cleaning business expand. These downstream businesses tend to represent a range of major clients and industries.

• Economies of scale: large commercial cleaning companies with many clients are more likely to develop economies of scale, which can reduce marginal costs and increase revenue and profit.

“The secret to success in business is having an edge and being able to get better results in faster time then everyone else.

Under this model, franchisees are able to choose their required monthly turnover depending upon how much they want to earn, work full time or part time with this business, and choose to be owner operated or have operators / employees working for them.

“That’s where 40 years of experience comes to the fore.”

And as for its suitability in metropolitan or regional sites;

“The cleaning industry is large and can be very competitive,” says Mackenzie.

KEEN TO CLEAN Servicing residential and commercial properties alike, Keen to Clean Group is headed up by Rohit Bohara, CEO. “Ninety percent of our business is from child care, aged care and fitness centres,” he says.

Keen to Clean’s service matches standards for these relevant industries; a one stop shop for cleaning services.

Bohara explains that there are two levels of franchises: • Level 1: Internal cleaning (vacuum and window cleaning) – equipment included in fee • Level 2: Carpet steam cleaning as a specialisation – franchisees require their own equipment and can lease or buy “We allocate an initial amount of income

“Our model fits anywhere,” says Bohara.

Franchisees need to understand the cashflow of the business and run working capital. Technical knowledge on cleaning and managing people is also beneficial.

The initial investment for a franchise is $13,000 plus GST for a five year term with guaranteed $1000 monthly income, initial training on administration, clients, timesheets, chemical training and ongoing support.

Managerial training for franchisees and operational support available anytime are also included. Agreements are made for a five year term with three options to renew.

Bohara’s advice to potential franchisees is to meet a minimum of two companies in the market before coming to a decision.

He also advises buyers read the entire franchise agreement and talk to existing franchisees.

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Source: IBISWorld Commercial Cleaning Services in Australia July 2016

• • •

EARNING A

CRUST BRUMBY’S BAKERY

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ould the bakery business be an investment that delivers the goods? Sarah Stowe speaks to some of the players in the marketplace about driving business into the future.

The bakery sector has a core product much in demand. Bread is one of the five to 10 key items that drive consumers to shop.

But where are they spending their dollars?

David Christie is the general manager of Bakers Delight. While he sees the bigger, price-driven competitors as an age-old challenge, he is confident that franchises can sustain their place in the market.

“There’s no doubt there is a challenge from supermarkets, they are after our market but that’s business. They have been competing directly ever since our inception.

“Price is definitely not something we compete on, that’s not our space and we have no interest in ever competing on price.

“The good sense of this strategy was born out when supermarkets dropped their prices to $1 for a loaf, then to 85c, and that

has had next to no impact on our sales of comparable products. In fact sales of white block have increased.

“A price war is not a segment we play in.

We’re better at premium.”

In Artisanal Bakery Product Manufacturing in Australia August 2016, a report from IbisWorld, the author suggests “individual franchisees cannot compete with supermarkets on price, marketing capabilities or customer patronage. They are also negatively affected by shorter opening hours and, often, less central locations. To survive, franchisees will need to focus more on premium products such as artisanal breads and specialty cakes.”

Brumby’s Bakery experimented with this theory late last year in a national Bread Swap challenge, where customers who preferred to buy cheap house brand bread

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from their local supermarket were able to swap it for a freshly baked Brumby’s loaf.

“Throughout the day Brumby’s swapped over 50,000 loaves across the country proving that fresh is best. Manufactured bakery products don’t have the same quality and freshness compared to a loaf hand crafted by a real baker,” says general manager David Dinnes.

“Our bakers get into store while our customers are still sleeping and spend hours kneading, proofing and watching as the loaves they’ve made by hand slowly rise in the oven.

“Our franchisees build customer loyalty with their local customers and once they have tasted the difference of home grown goodness, they remain a Brumby’s advocate.”

Christie says it’s crucial to identify competitive advantages that set Bakers Delight apart, such as the ability to be nimble in the market, have smaller format bases and a clear and complete focus on one market segment.

BAKERS DELIGHT

“Other competitive advantages are passionate owners on site every day talking to customers – that’s a huge advantage.”

Location and convenience are important, he says, and the advantage of an established franchise chain is experience with this element of retail.

“Traditionally we’ve been quite good at picking locations, either on premium strips or in centres at the entrance to a supermarket. It’s been core to our business.”

When it comes to opening hours, Christie says there are changes to how consumers are shopping for bread. No longer is it simply a morning purchase but customers are choosing to shop later in the afternoon and evening.

“We’ve extended hours to suit this,” he says. “We have an all-day retail strategy which means baking all day. Over the last four years we’ve invested in technology to allow bakers to start their day later.”

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start, Bakers Delight bakers are now able to begin baking at 3.30am or 4am.

“We anticipate this trend will continue,” says Christie.

ARTISAN OR TRADITION? At Bakers Delight traditional breads are still the major purchase but artisan breads and in particular products providing more tangible health benefits are increasingly popular.

There’s a geographic delineation too, with white bread and rolls supreme in rural regions, in more urban areas there’s a shift to artisan breads and snacks.

style products. Brumby’s Artisan range focuses on gourmet entertaining needs and includes specialty products.

“As consumers look for more health conscious products, they turn to a local baker as a source of wholesome ingredients, freshly baked and often preservative free products,” says Dinnes.

Home baking is less popular as we are a nation of time-constrained, dual-income families; in some areas rapidly increasing populations are adding to the diversity so there is a more fragmented product profile.

Brumby’s is observing a bigger consumer shift towards an artisan ranges of breads as consumers become more knowledgeable about the products they consume.

“Giving franchisees the right tools and right reports and right guidance to best cater for the tastes of their local community is essential,” says Christie. “At our core we aim to be the local baker in every single community.”

“While the traditional white and wholemeal sandwich loaves remain popular across our bakeries, in recent times we have seen an increase in artisan

At Brumby’s, franchisees have access to a world class training facility to learn the skills and knowledge they need to make their business a success.

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Dinnes says “Ongoing, our franchisees can expect best in class strategic marketing effort, ensuring that the brand they have bought into remains fresh and appealing to our target audiences.

“Our marketing teams provide “big picture” strategic marketing support as well as smaller localised marketing support to ensure visibility for each franchised store in their local community and in turn to increase their profitability.

GROWING THE BUSINESS Arna Richardson, IbisWorld senior industry analyst, says “Overall it is expected that the industry will post modest growth over the next five years as the stronger growth expected from the premium end artisan bakeries and cake shops will be partially offset by the relatively slower growth anticipated for hot bread shops and family run bakeries operating at lower price points in direct competition with instore supermarket bakeries.

“In other words, those producing high

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strong cultural support for the celebration of birthdays and other family gatherings.

Growth will come from better meeting the particular needs of consumers in this category than our competitors.”

Plarre adds that history shows sweet treats have been a constant over the years.

“We’ve sold nothing but indulgent cakes and pastries for over 115 years and we’re still here, thriving.”

Cakes and pastries have always been considered treats.

Now though there is a taste for healthier items, less sugary confections.

“We sell ‘sometimes food’,” says Plarre.

“The retail food market is doing a wonderful job of providing our customers with more healthy options than they’ve ever had before. In some ways this allows truly indulgent cakes and pastries to thrive even more.”

The ‘free from’ trend has extended beyond the supermarket shelves to the local baker so innovative bakeries can still create delicious products with alternative ingredients, he says.

Peter Elligett, the CEO of Cookies Australia which includes Mrs Fields in its portfolio, says “There is no doubt that consumers want a healthy choice however, in our experience, they may not choose to take it.

We are finding that consumers are looking for the real chocolate, super indulgent products and cost is not a barrier if there is real value, taste and texture and quality.”

“The bakery café market is definitely a competitive one and the supermarkets are improving their sweet treat offers and cutting prices to attract custom.

value-added cakes or specialty breads who compete on the basis of quality are expected to be less prone to the external competitive pressures welded by supermarkets relative to those industry players competing on the basis of price.

“As such they are expected to experience relatively robust growth, underpinned by strong consumer demand for artisanal breads and high value baked goods.”

Steve Plarre, CEO of Ferguson Plarre, says even when indulgent cakes and pastries

are seen as discretionary purchases, it’s possible to grow a brand.

“The beauty of truly good quality cakes and pastries is that if they’re delivered with equally good service, there will always be customers willing to part with money for that little ray of sunshine that a great cake offers.”

“That being said, we have the benefit of manufacturing our own product so we are always researching and developing new and innovative products to stay ahead of the competition.

Nick Avgerinos, franchise development manager at The Cheesecake Shop, agrees.

“All our product is Australian made in our own factory so we can ensure that only the best ingredients are used to make the Mrs Fields cookies, brownies and muffins. In recent times we have expanded our range to include high quality and cost competitive toasties, pies and savoury rolls which are all doing very well.”

“Cakes are an affordable luxury with

What are the big influencers on today’s

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dozen A BAKER’S

13 THINGS YOU NEED TO KNOW ABOUT THE BAKERY SECTOR 1. There are 743 businesses bringing in a $41.4m profit on revenue of $753.4m.

2. Wholemeal and seeded breads generate about one fifth of industry revenue; artisanal breads just 13 percent, hot pastries and pies about six percent of industry revenue.

3. Pastries (sweet and savoury) and muffins, cookies, doughnuts, biscuits are considered affordable treats and revenue has remained steady.

4. Bread remains a staple, but the taste for gourmet and premium products is resulting in a more elastic demand. In turn, this means disposable income and macro-economic influences now have an impact on the sector.

5. Supermarkets have aggressive price discounting and operate more than 1200 instore bakeries. Their share of the baked product sales has increased over the past five years.

6. Supermarkets also pose a threat in the celebration cake arena.

7. Artisanal products including exotic cakes and cheesecakes are increasingly supplied to cafes and restaurants.

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8. Consumers shopping for artisan items look for ciabatta, brioche, sourdough, baguettes, and are more likely to buy fresh each day.

9. Healthy-minded consumers search for fortified and enriched products.

Increasing demand is expected for wholemeal, rye and seeded breads which have a premium price and higher profit margins.

10. Despite franchise chains, the bakery sector is dominated by small players.

11. Franchises have to compete with supermarkets operating extended opening hours and central locations.

12. Industry profitability will be attacked by external competition and companies competing on price will be worst hit.

13. Value oriented retailers are predicted to reduce their profit margins to continue to operate competitively while those selling premium items will continue to see rising profit margins.

Source: Artisanal Bakery Product Manufacturing in Australia (August 2016); Bread and Cake Retailing in Australia (February 2016).

researching and exploring opportunities to manage costs with our franchise partners,” says Dinnes.

cakes and bakes retail?

Plarre says “I really think there is a renaissance in bakery and patisserie thanks to the likes of Masterchef and their rock-star guests like Heston Blumenthal, Adriano Zumbo and Darren Purchese. Ingredients and methods once considered elitist are now par for the course in everyday cafes and bakeries.

“Franchisees are given tools to help manage their wages and labour costs; they are also given support through our Franchisee Care Centre on a regular basis and receive regular audits to ensure they stay on track.”

“We also have a dedicated Sales and Performance (S&P) team who play a crucial role assisting the franchisees on the ground.

The S&P team assist our franchisees with business planning, coaching and mentoring to overcome day to day challenges facing their small business.”

“This is really exciting for a brand like ours.

It gives us permission to experiment with premium methods and flavours knowing that our customers have had exposure to these products and understand the value we’re offering.”

Improving efficiencies will help franchisees minimise costs; the franchisor can influence aspects of the business such as rent, equipment and the systems and processes.

Peter Elligett at Mrs Fields agrees. “Lifestyle and cooking programs, foodie blogs and Instagram are having a big impact on what consumers are purchasing,” he says. But he believes a premium quality coffee offer is also important in this market.”

KEEPING COSTS DOWN “As a brand Brumby’s are constantly Do g t e c h - HP- 2 0 1 6 0 9 -

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“Franchisors need to fight hard for the best possible terms for the franchisee and be prepared to walk away from a site if the economics do not stack up,” says Christie.

1

“We try and secure the best possible lease deal and contributions from the landlord.

As a vertically integrated franchisor, we always strive to provide products at the best possible price and quality.”

Plarre suggests franchises in this space need to be cognisant of how the business and other local outlets are performing over time and their occupancy costs.

“Getting to know your business neighbours and other brands in your space is incredibly helpful. Sometimes this even means sharing a bit of information with your competitors.

“Information is king in an environment where the cards are stacked against the tenant due to the huge data available to many of the landlords.

“It’s also important to make sure you have accurate and reliable information about your own business. Make sure you don’t sign on to rents that are not commensurate with a conservative estimate of sales.”

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Forecasting is an important part of cost management and the price of key ingredients wheat, sugar and yeast have an impact on profit margins.

Manufacturers rarely reduce prices when their costs drop but will pass on to the retailer any increases.

Both sugar and wheat are expected to rise in price over the next five years with sugar in particular at risk of higher costs as sugar cane is increasingly diverted to the production of ethanol.

According to an IbisWorld report, Bread and Cake retailing in Australia (February 2016), although bread is an Australian staple, it amounts to little more than one quarter of industry revenue (26.6 percent).

Cakes account for the largest share of industry revenue with higher-priced special event cakes proving increasingly popular.

Avgerinos believes that that retail conditions in this category are buoyant.

“The Cheesecake Shop provides an affordable luxury and accordingly our sales patterns are remarkably stable. New products launched over the past year have contributed to a strong competitive position which is considered another positive factor.

“Our category generally is mature and stable, reflecting the ‘affordable luxury’ status that cakes provide. We see modest growth in the years ahead driven by population and GDP growth and accelerated to some extent by growing consumer demand for the type of quality and bespoke product that The Cheesecake Shop is strong in.”

For Plarre, quality and great service are par for the course. “Finding points of difference for your business are key. We ask ourselves frequently, ‘what things can we do that others find very difficult and let’s do those things really, really well’.

“Creating barriers to entry for your competitors is very important. These can include product innovation, store ambience, culture to help get the best from

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your people, bespoke systems that ensure operational agility and cost minimisation.”

Says Dinnes, “The bakeries sector is continually changing and therefore to influence growth, franchisors need to be ahead of the curve with consumer trends and continue to deliver and develop superior quality hand crafted products.”

Christie says “Retail generally has been quite volatile. We’ve had a number of years of great growth, some periods when it’s been stagnant.

“As a business, you have to clear up what your strengths are, what sets you apart for the customer and how you deliver.

“There’s a big opportunity in the bread space, and a lot of our competitors are very big and have big budgets and large businesses behind them.

“The trick is to stay two to three steps ahead, find out what the consumer will want and invest in the resources and tools to deliver that.”

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FLASH FORWARD T

he photography industry celebrates events, relationships and communities. The rise of amateur photographers and operators customised for niche groups also diversify the industry, writes Noha Shaheed

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With no royalty fees or baking required, it’s no surprise that we have been around for so long!

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Photography services range from wedding footage, to portraits and more recently, the advent of photobooth facilities for events.

on the needs of clients. Franchisees are provided with this equipment as part of their TapSnap franchise.

However, franchisees need to be prepared for the working hours required of the industry.

The photography industry is dominated by small and sole traders, many of whom work part-time to supplement income from another job. Industry players frequently focus operations on specific geographic or demographic areas, such as child portraiture in a certain shopping centre, or in niche areas, such as wedding photography for a particular religious or ethnic community.

So who is an ideal operator?

“Weekend work is common practice in the events industry,” adds Kelland.

Photography franchise operators can expect to work on weekends, and need to have people skills as these businesses rely on referrals for clientele. The right equipment is also required to stand out among competitors and stay relevant.

“Our franchisees come from all walks of life, but there is one trait that all successful TapSnap franchisees have in common – their fun and outgoing personalities,” Kelland explains.

“It’s really important that you are a ‘people person’ and are comfortable striking up conversation with strangers.”

So who are the key franchise businesses in this sector?

TAPSNAP Offering a dual business model, TapSnap provides a social media photo booth for weddings, celebrations, Christmas parties and the like, and a photo marketing kiosk for both national and local corporate events, such as brand launches, trade shows and professional sporting events.

Dan Kelland, director, says that the brand is constantly evolving its suite of products and services to differentiate TapSnap’s event productions.

“Our flagship product, TapSnap, is an interactive and fun social media photo booth that is fully customisable,” he says.

“Guests have their photo taken with our professional digital single lens reflex camera, then they play around with their photo on our 42-inch touch screen to add in digital props, pick fun green screen backgrounds, create animated GIFs, and write messages on their pictures before sharing via Facebook, Twitter and email.”

Kelland says the model also offers additional products such as SnapCast (to broadcast the event), Social Photographer (take candid shots from around the event) and Sharing Stations (keep lines moving at larger events).

The TapSnap product suite works together in any combination or as standalone products; that means you can configure any number of event solutions depending NOV/DEC 2016 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

And as for the model’s applicability in metropolitan and regional sites, he says TapSnap offers huge potential to full time or part time franchisees operating in both.

But marketing is key.

Engaging the local community is essential

for opportunities. Franchisees have marketing areas in which they may market their franchise and run promotional events. Referrals generate a lot of business in particular. However, franchisees can travel outside of their territory to cover events when asked.

The initial investment cost of a TapSnap franchise starts from $50,000 for a five year term (including equipment) with the option to renew. Franchisees are provided with full hands-on training, which covers day-to day-business operations of the TapSnap kiosk and other products. Leads

are also provided via Snap Central, the franchise call centre, and as a result of national marketing from head office.

“Ongoing franchise support includes continual product and software development, call centre, 24/7 technical support, marketing, graphic design and being part of our vibrant online franchise community,” says Kelland.

His advice for potential buyers is to do their research and ask plenty of questions. He also says it is critical to have a good relationship with the franchisor from the outset.

“Take your time, and get advice when you need it to ensure you find the franchise that is the right fit for you,” he advises.

VIVA PHOTOGRAPHY Viva Photography specialises in wedding and portrait photography services with more than 20 years of experience.

Vittorio Natoli, CEO and founder, says the major strengths of the model are the values, system, training and brand. In his view, there is a clear approach to how Viva franchisees work and the way they shoot.

This involves creativity between the photographer and the client, so that unique images can be produced to suit the client’s personal requirements. The Viva Photography model allows team members to add their own individuality and client personalities to all image making.

Franchisees are provided designated territories and are reliant on referrals and local IN THE BOOTH

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area marketing for business.

“We have territory mapping data analysis of areas,” says Natoli.

He stresses the importance of commitment to working hard in the business.

“Franchisees are buying a business that they are going to have to run even though there is a system,” he says.

Franchise buyers will require a computer, camera and software to run the business.

Whilst software must be purchases, a computer and camera can be rented.

The initial investment of a Viva Photography franchise is $60,000 inclusive of training, systems, brand, setting up store and equipment lease. Franchisees need to train three full time staff, taking the investment to $250,000. Terms are five years with two subsequent options to renew.

Natoli’s advice for buyers interested in the photography industry is to partner with a brand that already has a good reputation, work in the business before becoming a franchisee to get a feel for the job, and speak to other franchisees about their achievements.

Ideal franchisees love working with people, and have a background in business, marketing or management.

TOP SNAP Top Snap, a real estate visual marketing business is headed up by Ralf Barschow, owner and CEO.

“We offer photographers who are passionate about real estate,” he says.

The initial cost of franchise is $34,000 plus a territory and another $15,000 for training for a 10 year term. Software is provided within the model.

The business has 12 years’ experience with a focus on professional training and innovative advisors and provides engaging visual photos for real estate.

IN THE BOOTH In the Booth offers studio quality photo booths for hire for events.

“Every franchise is grounded with an exclusive territory,” he says.

“In the Booth is the largest photo booth franchise network in Australia and has been in operation since the infancy of the event photo booth phenomenon in 2009,” says Kate Austin, franchisor.

Barschow says the model is suitable to both metropolitan and regional sites.

The model also provides national marketing campaigns and preferred suppliers, but local area marketing is important. Profit is leveraged as franchisees move from being a sole trader to a business owner with network of contractors.

“The franchise model has been designed specifically to allow franchisees to invest the maximum amount of time and energy into the growth and success of their business,” she explains.

“It is a competitive industry which requires 100 percent commitment,” says Barschow.

The model also requires technical skills.

“We require a photography background.”

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Photobooths are manufactured exclusively in-house for franchisee use and all required equipment is provided within the initial investment, however commercial lease options may also be available to approved applicants.

“Franchisees also benefit from extremely low fixed overheads, in most cases with no lease, premises, or permanent staff costs,” says Austin.

Although the industry is an unregulated marketplace, In the Booth is committed to professionalism and commitment and seeks franchise partners with this same vision and dedication.

The initial investment of a franchise can start from approximately $30,000 for a greenfield site, depending on territory particulars. Franchisees operate within exclusive territories and receive extensive initial training and day-to-day support.

Typical terms are five years with a further five year option.

Metropolitan and regional sites have their own respective intricacies.

“Smaller regional areas can be run very effectively as a part time operation or supplementary employment, with head office support geared to facilitate the business running alongside other commit-

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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!

NOV/DEC 2016 | 74 | WWW.FRANCHISEBUSINESS.COM.AU

ments,” Austin explains.

“Busy metropolitan areas can grow to a full time capacity.”

IN THE BOOTH

Austin’s advice for potential buyers considering a franchise in the photography industry is to conduct plenty of research and be prepared to work hard.

“Beware of opportunities promoting easy profits with minimal work, and companies that seem to be more about on-selling photo booth machines rather than providing an excellent client experience,” she says.

“Running any business to be successful and sustainable requires hard work and dedication, and this is just as true in the photography industry as any other.

“Look for a solid reputation and client base, together with good systems but also passion from the franchisor and other franchisees within the network.”

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NOV/DEC 2016 | 75 | WWW.FRANCHISEBUSINESS.COM.AU

7/10/2016 6:11:31 PM

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A

whole industry has built up around our passion for our pets. If working with animals would be your perfect job, then why not consider setting up in business with a petcare franchise? Sarah Stowe reports

CH We’ve all seen them - quirky cat performance videos on social media.

Viewing cute creature clips is a pastime for all animal lovers; as Janie Rose of Blue Wheelers says, “the more humanised the material, the more we watch them. From dressed up dogs who can mimic or talk to their owners; dance to music or ride bikes, we simply can’t get enough.”

Aussies love their pets and that’s good news for businesses which service the needs of our furry friends and their adoring owners.

Humanisation is just one of four trends influencing consumer spend in the pet sector: add in demographics, a focus on health and so-called premiumisation a willingness to indulge in top quality products or services.

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PERFECT “This means there is higher than ever demand for providers of premium hygiene and styling services as well as the provision of premium dog nutrition products, treats and enrichment products,” says Domini D’Abate, franchisor at StopnPaws.

“Dog owners are seeking knowledgeable advice from professionals beyond what was once the sole domain of the veterinary practitioner. This is not to say dog groomers are veterinary professionals however a professional dog groomer is someone who knows about basic dog nutrition and overall wellbeing and care.”

One of the popular services, grooming, has evolved rapidly in recent years in response to the demands of the “new age” pet owner.

D’Abate says “Dog owners in general are now integrating their pets within their homes and daily activities on a scale quite different to days gone by.”

In fact the scale of Australians’ passion for their pets translates to $4.62bn – that’s a significant spend, so why not get your share of this sector?

BLUE WHEELERS Having a dog join your family has many benefits, says Janie Rose. “They teach kids to love and care for someone else; they are known serotonin producers and keep us happy.”

And she sees plenty of potential for the business to provide services for the increasingly ageing population.

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Rose says “Dogs are good company for any demographic and are especially known to offer a great deal of comfort to the elderly.

However, this demographic often are unable to fully care for their dogs and a mobile dog groomer should be booked to visit on a regular basis.

“The benefit for this demographic is that all our groomers go to their homes offering an easy solution for pet care. Some are happy to deliver dog food and treats as an added service.

“Many of our groomers try to keep costs down to a minimum as finances do affect this age group.

“Not only do our Blue Wheeler groomers love catching up with these dogs, they often also enjoy a tea and biscuit at the end

of the service and juggle a genuine chat before moving on to their next appointment.”

Blue Wheelers has 180 franchisees across Australia offering a premium grooming service that ensures a dog is washed thoroughly from snout to tail.

“Our Blue Wheeler groomers become as much a part of the family as the dogs themselves – offering great customer and groomer satisfaction alike.”

DOGTECH Customer satisfaction is high on the list of advantages for franchisees operating a DogTech business.

What’s on offer for concerned dog owners is a solution to difficult pooch behaviour. Based on psychology principles, the DogTech approach is more about understanding and re-setting behaviour patterns than training the dogs to follow commands.

It was founded by the late John Richardson, the self-proclaimed Aussie Dog Whisperer, and

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under new direction from franchisor and CEO Richard McDonald, the business is striking out across the country keen to improve the experiences of many dog-loving families.

pooch and it is nice to feel welcomed.”

STOPNPAWS At Stop N Paws all franchisee salons hold nationally recognised accreditations in companion animal services and undertake ongoing development.

“There’s a big difference between obedience and behaviour,” McDonald says. “A lot of trainers work on obedience principles which are very different from what we do.

“This is our point of difference,” says franchisor Dominic D’Abate.

“We are salon based and hold recognised certifications with emphasis on future development and education in pet care services. We focus on quality grooming services specific to individual dog needs and individual dog breeds. Our businesses also offer premium grade products for retail.”

“This is dog psychology, understanding their thinking and how they are behaving.”

Franchisees are able to derive income from a number of revenue streams: two-hour training sessions tailored to the individual; group classes; and puppy school.

Stop N Paws franchisees pay a fixed franchise royalty regardless of how much they earn, and there are no marketing levies or advertising fees. The franchisor is responsible for maintaining a website which lists all locations and maintaining social media which also highlights and

Working as a DogTech franchisee can give immense satisfaction, he suggests.

“It’s a great business but such a rewarding industry too. Our customers invite us into their homes to help with their troubled Re d Sp o t - HP

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1

promotes franchise locations.

Franchise agreements begin with a three year term with a further two terms of three years available at no renewal cost.

D’Abate believes the focus on ensuring pets and their owners receive the best possible care from qualified and educated individuals accounts for continued growth and success.

ALSO CHECK OUT RSPCA SCHOOL FOR DOGS A new business, working in partnership with motivated people who love animals and have a passion to run their own business, the RSPCA School for Dogs is all about training .

AUSSIE POOCH MOBILE The first mobile dog grooming service founded in 1991 in Australia, this has become a global business with hundreds of franchisees.

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NOV/DEC 2016 | 79 | WWW.FRANCHISEBUSINESS.COM.AU

YOU COULD BE PART OF A THRIVING INDUSTRY WORKING WITH A FAMILY BUSINESS

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re you looking to buy a franchise business without the corporate feel? This model may just be for you.

According to IBISWorld’s September 2016 Building Pest Control Services report, building pest control services is a $1.3bn industry with an annual growth rate of 2.4 percent.

trainer. The industry provides a diverse opportunity for income, especially as the model is a mobile one.

Client referrals are key to building a customer base. Olver adds that there is a 95 percent retention rate due to the specific culture of customer service within the network. However, the market is a seasonal one with spring and summer as the most profitable. Franchisees also need to ensure there is enough working capital to cover

Key drivers of performance include demand from: • accommodation and food services • property operators • retail trade • public concerns about the environmental effects of chemicals or sprays used • government consumption expenditure

BUG R OFF PEST BUSTERS If you’re after a business with a friendly culture, Bug R Off Pest Busters may just be for you.

Specialising in termite control, the brand also offers other solutions to tackle infestations of pests including mice, spiders and insects.

“The main difference (in the model) are the termite sniffer dogs,” says Steve Olver, director “This gives (termite control) a non-invasive inspection.”

He explains that dogs are able to “sniff out” termites without the need to rip through furniture. Bug R Off also has an exclusive relationship with a termite detection dog NOV/DEC 2016 | 80 | WWW.FRANCHISEBUSINESS.COM.AU

quieter winter and autumn seasons.

“We’re (the franchisor) here to guide (franchisees) through the processes and mistakes we’ve learned from,” explains Olver.

The initial investment of a franchise is $88,000, inclusive of training, licensing, a four day course for dog handling, and marketing. For $120,000, the vehicle is also included.

Olver says franchisees need to be prepared to put in the hard yards to develop a client base in addition to the $5000 put aside (out of the franchisee investment) by the franchisor for the operator’s launch designed for advertising.

Pest control is also a highly regulated industry which requires two licences; general pest control and timber pest control. The Bug R Off initial investment includes costs and training for both.

“You’ll pick up many inspections from real estate, which is a foot in the door to then convert them into treatments.”

In this way, franchisees have the potential to become a household name for pest control services.

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FROM

passion profession TO

B

right young mum Sonya Gruevski turned her back on a 10 year career as a hospital pharmacy technician to become a baking supremo. The South Morang Cheesecake Shop franchisee is living the dream, writes Noha Shaheed

This busy young mum grew up baking cakes with her own mother – and knows there is more to a sweet treat than just the ingredients. Now she’s putting her love for baking into a whole new realm and has turned her passion into a profitable venture.

“My mum and I, we’re amateur bakers, we love baking from home,” says the Victoria-based franchisee.

“I had no experience running a business prior to opening the store.”

But that didn’t stop her turning her passion into something bigger.

Gruevski was sick of working in the healthcare industry and was interested in owning a business. But she didn’t want to go it alone. There lay the appeal of a franchise model.

She and her husband were searching for franchises for sale when they spotted a Cheesecake Shop business opportunity available in local South Morang.

Gruevski had actually worked at The Cheesecake Shop as a teenager and was comfortable with the business model and processes.

She approached her mum to help her secure a bank loan and she hasn’t looked back.

“Once the opportunity came along to apply for a Cheesecake Shop we jumped on it straight away,” says Gruevski.

But with two young kids, a family and a business, she says achieving a work/ life balance is the biggest challenge.

“You don’t want to miss out on the important stuff. “(But) a business is not something you can just put in a few hours and expect it to blossom,” Gruevski adds.

She says it took two to three years to reach a stage where she could afford to take a step back.

And from the very beginning The Cheesecake Shop support team was on hand, building up the team’s skills and confidence. Gruevski says franchisees have full control of processes.

“Unlike other franchises, we bake on premises,” she says.

And it’s no cookie cutter business; she also offers popular specialty cake services at her franchise.

“The company has been so supportive with my designs and speciality cakes.

“We like to step out of our comfort zone with cakes as it is a competitive industry,” she says.

And as for working with family, Gruevski admits there have been ups and downs in business but going through it with family helps.

“If anything, this business has brought us closer together as a family.

We are always in contact with each other.

“We all have responsibilities,” she adds.

Gruevski manages and trains staff, her husband takes care of the accounts and invoicing, her mum takes care of the evening shift (and enjoys a later rise the next day), and dad even helps by taking out the rubbish.

So after turning her passion to a profession, what’s changed?

“I don’t bake at home anymore!” she says.

But she still loves creating delicious cake confections and enjoys the smiles that result from her work.

“Seeing a customer’s happy face is so rewarding, more than the money is.”

Running her own business allows her to spend more time with her kids and leave work at work.

Gruevski is confident that anyone can achieve great results as a business owner by following a proven system in a franchise. It’s an ideal way to make your dreams a reality.

“Whether you’re a mum like me or a tradie looking for a change,” she says.

“Just go for it – don’t hesitate.”

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FAST FOOD GETS A

M

exican chain Guzman Y Gomez plans to open about 20 taquerias each year, writes Sarah Stowe. Fresh food and speedy delivery are crucial to this brand’s expansion plans.

Right now 18-35 year olds form 60 percent of the customer base for this predominantly urban-based franchise chain.

on Subway-style production (making food in front of the customer) GYG has taken a different approach.

CEO Mark Hawthorne says “What excites me about GYG is capturing the Millennial market, the holy grail of business.”

The business model is reliant on throughput he says and so kitchen preparation is fundamental to getting the food out fast.

And he plans to do this in the burgeoning Latin American food category.

“Making food in front of you has positive points but you give up speed, the throughput can be quite restrictive. We have a double line out the back,” says Hawthorne.

Of course the quality of food is central to the offer, but so too is the delivery and management of the business.

Speed is a priority for any fast food business. What marks the GYG model as different in the Mexican space is the production line. With competitors focused NOV/DEC 2016 | 84 | WWW.FRANCHISEBUSINESS.COM.AU

But customers still get that ‘made-just-foryou’ moment.

It’s all about the meat. “What we want is to show fresh steak and fresh chicken being cooked,” Hawthorne explains.

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In-store typically busy periods are the lunch hours 12am to 2pm, and early evening 6pm to 8pm.

“In Collins Place and MLC centre, we can take $6,000 to $8,000 in two hours.

We see we can take on the fast food chains. We want this premier proposition to be in the top seven in the marketplace

“We see we can take on the fast food chains. We want this premier proposition to be in the top seven in the marketplace.”

And landlords are responding, Hawthorne says, approaching the brand to feature in their shopping centres as a new face, an alternative to traditional brands.

GYG is all about attracting people who want fresh fast food. There are no freezers or microwaves used.

The latest innovation is the drivethrough which has been designed with a double drive lane to maximise capacity.

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This new development is taking the urban GYG brand into suburban territory, putting the fresh Mexican menu close to residential areas and industrial zones.

While the initial investment level is higher for franchisees, the benefits of the longer leases and better rents equate to a similar overall investment to that paid by franchisees located in shopping centres.

The investment is $300,000 to $400,000 but the scope of landlord contributions can vary. Sites are sized from 2,000 sq m.

MANAGEMENT STYLE Hawthorne cites the quality of management as critical to GYG’s operation.

Founders Stephen Marks and Rob Hayes bought in new investors: Peter Ritchie (who brought

McDonald’s to Australia), Guy Russo CEO of K-Mart and Target, and Steve German, former CEO of McDonald’s.

“I’d rate this against other chains and offerings,” says Hawthorne.

“Love or hate it, McDonald’s does some things really well.

We’ll take ideas for franchise operations, supply chain, retail stores. This is the strength and experience of our management.”

GYG has 13 company owned stores and 25 franchisees and wants to increase the franchised elements.

“We want to bring in people who can execute better than we can.”

THE MISSION TO #FIXFASTFOOD The taqueria franchise has now moved to 100 percent

unprocessed, fresh, Australian free range chicken across all its Australian franchises. Free Range Egg and Poultry Australia (FREPA) accredited poultry meat will be served across all 74 taquerias in Australia.

This makes the franchise the first fast food player in the market to roll out unprocessed Australian free range chicken at scale.

To gain FREPA accreditation, farmers and suppliers must uphold the highest standards of animal welfare.

“Everyone thinks fast food is bad food and that convenience and affordability comes at a cost. But we’re out to show the world this is just not true,” says Steven Marks.

Changes to farming systems for other major proteins are also underway with Guzman y Gomez committing to being 100 percent sow stall free by October

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2016 and its beef 100 percent grass fed and added hormone free by 2017.

“We’ve spent the last 10 years nailing the speed game — serving real, fresh food at fast food pace with no microwaves, and without cutting corners. And now that we’re big enough to create real change, we are proving it is possible to do all that and still act ethically as a business,” says Marks.

“We’re incredibly proud to be only serving Australian FREPA accredited free range chicken in all our taquerias.

“Moving to free range is no gimmick. It’s something we care deeply about and a decision we’re committed to. We hope others in the industry will join us, and help raise animal welfare standards across the whole fast food category,” he adds.

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What excites me about GYG is capturing the Millennial market, the holy grail of business

A QUEST

FOR A NEW LIFE

W

hat would you do if you had the chance to build a hotel resort? Well Jaideep Sharma leaped at the opportunity put in front of him, writes Sarah Stowe.

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Sharma trained in hotel management in India, and worked for the Hyatt chain. But it was when he stepped in to help build a resort after a contract was cancelled in 2001 that he really learned about the business.

While his friend’s father was the engineer, Sharma took on the role of project manager (without any practical experience to bring to the job) – and found himself sleeping in a cabin on-site.

“It was amazing. There was a cook, a security guard and me. I was dealing with the tradies.”

And after tackling this gargantuan task, Sharma spent six months working in Delhi for the Intercontinental Group.

If I had my own properties, no-one knows my brand and I would be paying to get it listed.

With Quest, people know our brand

But the next step of his career would take him far from home. He and his wife decided to emigrate.

His goal was to stay in hospitality and because Australia had gained popularity following the 2000 Olympics, the couple looked at opportunities here.

“Everything was booming,” he says. “And there is always growth in start-ups.”

Thanks to a transfer arrangement, Sharma joined the Intercontinental Group’s Melbourne Rialto and then joined the reception desk at Quest Bayside apartment property.

Within two years he had moved up to be senior receptionist and then team leader. By 2010 Sharma was a night manager.

“This was a good opportunity to live and work onsite and learn how to manage your lifestyle: it’s 24/7 work and 24/7 home life.”

The role offered new challenges that perfectly suited his passion for being busy and a team player.

“If you see staff struggling, you are prompted to help them. I started to like work better.”

In fact Sharma loved his constant engagement with staff and customers so much that he didn’t take a sick day in the next four years.

He admits he’s a workaholic. Add to this his ambition, and it is no surprise that two years ago he started looking for his own business in the Quest network.

The Bendigo apartment block was his first property.

“I met the founder and CEO at the time, Paul Constantinou, and in a five minute discussion I knew what I had to do for the next five years.”

So what was it like to be a franchisee after all this time working for others?

“There is more trust, you feel so proud that people can trust your decision and decisions should always be made in favour of the business.”

The Lonsdale operation has been undertaken with family friends (a lawyer and wealth manager) who provided the financial security. The settlement was completed in March, and since then Sharma has been handling the launch of two venues.

He and his business partner have very clear roles: “He does the legal, body corporate, etc. I bring the money in, he spends it!”

The importance of the brand can’t be overstated in business, he believes. The bank was stringent in its analysis of the business potential and the profile of the franchisees.

“Without Quest this deal was not going to happen,” he says. “It was a tough selection process – both personal and financial.”

A renovation program will be undertaken in time to maintain and bring the Quest on Lonsdale property up to the Quest Group standards.

Although Quest franchisees operate the apartment hotel they are generally not the owners of the apartments. At Quest on Lonsdale, each apartment is individually owned. “This means we work with the owners of each apartment when it’s time to refurbish the apartments and other matters.”

Quest’s experience with this situation is invaluable, Sharma says.

But it is common too for Quest to own just some of the apartments in a building. At Lonsdale, for instance, there are 92 rooms in total. That gives Sharma plenty of potential with another 40 he could to add to his portfolio.

It’s all about the numbers, he explains. “If I get more inventory, the game changes. It’s about the number of rooms. With some staff and structural changes, more rooms generate more revenue.

“Our target is to increase by 40 percent. All CBD properties have potential.”

The brand is a big draw for any franchisee, he says.

“And I’m happy to pay a nine percent franchise fee which includes a one percent brand fee.

“If I had my own properties, no-one knows my brand and I would be paying commission to get it listed.

“With Quest, people know our brand.”

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It’s always been fast, convenient affordable.

Now it’s more premium end as a trusted workout

SNAP I NTO A F IT FUTURE

T

his fitness brand is refreshing its look and tapping into new, complementary markets to take its business to the next level. Sarah Stowe reports.

What do you do when you have a business with extensive reach in a highly competitive arena? Snap Fitness is all about innovation and evolving a product that’s a little bit different, says Australian CEO Dan Newton.

The business was founded 13 years ago in the US; it has been in Australia since 2010 and Newton took over the reins in 2015.

DAN NEWTON

And while the basic premise of the 24/7 gym remains accessible, convenient fitness at a value price, today’s Snap Fitness has a new look and a new message.

“It’s always been fast, convenient and affordable. Now it’s more premium end as a trusted workout.”

In fact the catchphrase of the training concept “Australia’s most trusted workout” is emblazoned on a feature wall in the first of the new look gyms, Morningside in Brisbane.

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There are two key questions asked in the industry: business owners ask ‘How do I get more members?’; clients ask ‘How do I improve my results?’.

“Real fitness results are accelerated through first class fitness programs,” Newton explains.

New touchpoints are needed in response to the industry’s changing expectations, says Newton.

Enter wearable technology MyZone where members don a belt and monitor their performance on screens. Add in new high-impact equipment including functional training rigs, Crowd DJ music systems that allow members to line up playlists from their phones and the virtual training concept Australia’s Trusted Workout for a modernised fitness option.

“People are time poor and in desperate need of a convenient experience which not only complements their busy lifestyle but keeps them engaged and challenged.

“Fitness franchises that don’t offer basics like team training and personal-

ised workouts with a motivating environment will struggle to survive in coming years.”

There are macro trends every five years, says Newton. Right now fitness is moving away from machinery as the catalyst to better fitness to a focus on the body.

And in line with the trend, two new business models have been incorporated into the newly expanded Snap Fitness group, now renamed Lift Brands.

We are looking to break the fitness franchise mould, transforming Snap Fitness from a standalone concept into an ecosystem including 9Round and YogaFit F R 1 6 0 5 _ 0 0 0 _ F A MO U S

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“We are looking to break the fitness franchise mould, transforming Snap Fitness from a standalone concept into an ecosystem including 9Round and YogaFit,” says Newton.

NEW FITNESS OPTIONS In the portfolio Snap Fitness is traditional, 9Round an intense workout, YogaFit the wind down option.

9Round is a 30 minute kickboxing fitness program: the workout offers a number of

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stations that focus on strength building, conditioning, speed and core strength.

There are no class times and workouts change daily.

YogaFit provides a series of routines that can be followed in a dedicated studio in an instructor-led class at peak times or with on-screen instructors, allowing for 24/7 access to yoga activity – yoga on demand, in other words.

The yoga option will be introduced to Australia at the end of 2016, says Newton.

Each of these options is standalone, but Snap Fitness members can upgrade their membership to include these new fitness models.

“It’s about providing a different suite of options,” says Newton.

He believes the industry is notorious for intimidating new members and those who are not comfortable in a sweaty, testosterone-pumped gym environment.

“Our issue is the Australian population has not woken up to going [to the gym] because they don’t want to.”

The average age of a customer is 35 years and most likely to be female. “Women like classes,” says Newton.

Snap’s solution is to provide viable alternatives for individuals wanting something different from the machine-based gym format.

IF YOU WANT TO BUY A FRANCHISE As a business opportunity for franchise buyers the goal is to bring the 9Round franchise offer to under $200,000 for everything. “There’s an average six to 12 month break-even on the current seven outlets,” says Newton.

And YogaFit has a comparable price tag - $200,000 to $250,000; to invest in a Snap Fitness requires $600,000 to $1m.

The lower barrier to entry is deliberate but

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priced at the right point, says Newton.

“If it’s too low it doesn’t value the expertise needed to get the gym open and running the business, how can it be sustainable?”

Franchisees will need business acumen and an appetite and passion for their fitness model. For the 9Rounds model franchisees will need to be on the frontline.

Newton says each 9Round club is forecast to bring in revenue of $1m in its first three years of operation.

Right now there are 189 Snap outlets; the goal is to reach in three years 250 Snap Fitness gyms, 120 9Round, and 100 YogaFit outlets.

“The boutique space is next,” says Newton.

“We aim to offer as much convenience at the best possible price. ”Instead of cowering at the competition we are seizing the opportunity to lead the pack in the next phase of fitness franchising.”

HOT PROPERTY F ood retail franchise Lenard’s plans to open another 50 outlets in two years, reports Sarah Stowe.

An established brand in shopping centres, this household name has revamped its stores and set its sights on reaching 200 standalone sites within two years.

Now Lenard’s is hot property again. That’s the message from the CEO Chris Caldwell who says the new look model has got landlords excited.

“With our new contemporary look and the hot food category, they are very keen to have us.”

And the welcoming attitude of the landlords is benefiting incoming franchisees, he adds.

“It means we can provide franchisees with a more compelling price point and overall offer.”

Shopping centre landlords are now adding retailers with hot food options to their fresh food precincts.

“This aligns perfectly with our offer,” Caldwell says.

It is critical to provide different ways to present chicken to the consumer. “There is always a market for an $8 roast chicken and a $20 roast chicken. Lenard’s provides the staple of roast chicken but with a twist.

“Free range chicken is priced very competitively for $11 to $13.”

Then there are a number of value-added options for about $15 – chickens infused with Portuguese flavours; lemon, garlic and rosemary; lemongrass and ginger; wasabi and soy.

The brand’s distinction has always been the number of exclusive recipes, flavours and sauces.

“Most people are prepared to pay a premium for better product, particularly poultry,” says Caldwell.

Today more than ever the Lenard’s proposition is about making it easy for the consumer.

A ready-prepared curry in a tray that can be put straight in the oven is one example.

“We’ve made a big move to oven ready. We offer everything from fresh chicken cuts for someone who wants to do a Masterchef number at home to value-added kievs to oven ready ranges and hot products ready to eat.”

LENARD’S IS BOOSTING FRANCHISE SUPPORT Lenard’s has taken a three-step process to building its business to the next level: the new look stores, introducing ready-to-eat hot food, and providing a superior level of support for franchisees.

“The level of support extends to one operations executive to 12 stores. That’s two, maybe three times what you’ll find in national chains,” says Caldwell.

And for these business coaches the focus is primarily on profitability, and then boosting sales.

“We really want to make sure our franchisees are generating the best profit they can out of their investment.

“It’s about looking for a 30 to 50 percent return on investment, and about helping them understand it’s not just about product.”

Franchisees are encouraged to be more business-minded, he says.

“We want to bring in people who understand that small changes can have a massive influence on the money they make.”

A passion for chicken and the food market is essential for incoming franchisees and age is not relevant.

“We can support a younger franchisee now with our business coaching and support,” Caldwell says.

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With our new look and the hot food category, landlords are very keen to have us. We can provide franchisees with a more compelling price point and overall offer

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ARE YOUR SKILLS FRANCHISE-FRIENDLY?

C

ould you transfer your business acumen to a new franchise opportunity? For brand new regional franchisee Kevin Neil, joining the Fastway Couriers’ family with extensive business experience made perfect sense.

Neil heads up the new Hume depot, and has previously held CEO positions at Swimming Australia and Canberra Raiders, and was a long-time director of ACTEW Corporation.

So what advice can he offer other new franchisees?

TOP TIPS FOR NEW FRANCHISEES WHAT TIPS DO YOU HAVE FOR NEW FRANCHISEES WHO WANT TO TRANSFER THEIR SKILLS FROM OTHER CAREERS INTO A NEW BUSINESS? Transferrable skills such as customer service, people skills and financial management are essential, and therefore easily transferred. They will give you an advantage when running your new business.

Through the roles I’ve had in my career, I’ve always carried the philosophy of treating the money I was in charge of as if it were my own.

This is good training to becoming an entrepreneur, because, when it’s your business, that’s exactly whose money it is – yours!

You also need to invest (time and resources) wisely in order to grow your business effectively.

Developing and regularly updating your strategic business plan is crucial.

As an employee relationships are very

important but as a business owner this is elevated - you need to develop, build and grow your relationships with your colleagues, customers and friends. You never stop learning in life or in work.

‘people skills’ would be a priority. As a business owner, it’s an integral part of the business to have strong people skills.

I’ve learned that everyone is different and, as a result, can act differently in given situations.

WHAT SKILLS HAVE YOU BROUGHT TO THE FASTWAY COURIERS FRANCHISE?

Identifying ways of improving efficiency is also an essential skill.

I’m very much a people person and I always strive to treat people with respect, regardless of their role, and I expect that to be reciprocal.

I feel that it’s important to have mutual respect for one another in the workplace, so that everyone’s standards can be maintained and goals are met. This is a skill which I believe is as significant as any other when developing a business of your own.

It’s important to consider people’s individual views and opinions, however using our people skills allow us to work together and effectively as a team.

Once, at a meeting with all the NRL chief executives, I gave everyone two caps; his or her own club cap and also an NRL cap. This was a visual reminder that we were there to make decisions as 16 equal shareholders in a business.

Sometimes it’s helpful to remove your ‘club cap’, contemplate the bigger picture and respect others. This can be incredibly beneficial when implemented across all businesses, franchisors and franchisees.

I anticipated that using my

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It can be common for employees and business owners to hold a siloed view of a business or business department.

In my opinion, this mindset reduces efficiency of the overall operation and reduces morale and company culture. With a more lateral view, sharing information and working together, the pie will grow more rapidly.

WHAT SKILLS ARE MOST USEFUL WHEN STARTING A NEW FRANCHISE BUSINESS OPERATION? In any business or professional role, the most important thing is financial control, you need up-to-date financial reports which can support your decision making process. This, I believe, is imperative. The other skills are very important but financial control underlines all the others.

HOW WILL YOU STAY UPSKILLED IN YOUR BUSINESS? I continue to learn by listening to other people, and by asking lots of questions in order to fully understand how and why something is done in a particular way.

Employing people who are bright and enthusiastic allows the team to manage up as well.

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A REWARDING BUSINESS

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o you have a passion for changing lives? Are you after a rewarding career? This model may just be the right fit, writes Noha Shaheed.

Su Middleton is in business with her daughter, Harriet Cox, and the pair has owned Home Instead’s Wollongong franchise for almost two years.

“As female business owners, it has given us enormous satisfaction and pride to be able to offer employment and training to the growing workforce of mature women who were struggling to find meaningful employment,” says Cox. “We have been able to offer these women the opportunity to obtain a nationally recognised qualification.

“Su is now so proud of the fact that, in her

50s, she was finally able to take this step and more importantly motivate and inspire me to make this move with her,” she adds.

And the benefits of a franchise model are three fold, according to Middleton.

“We can direct and influence our business,” she explains.

And working with her daughter has its benefits too.

“We have a shared work ethic and work together well,” she adds.

“We certainly encourage other women to do this.”

“We’ve got the brand behind us, and we’ve got the best of both worlds.”

However, she says some challenges include setting up a business, building a reputation and a team.

Middleton says that some of the benefits of the model include: branding, shared philosophy, training, resources and head office support at any time.

Middleton’s advice for potential buyers is to obtain legal and financial advice, and conduct a plenty of research before making a purchase.

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POSSIBLE STARTS HERE

BUY A FRANCHISE OR SET UP YOUR OWN BUSINESS?

I

t’s the age old question for a fledgling business owner – is it better to invest in a proven system or go it alone as an independent operator?

Noha Shaheed considers the issue.

The questions you may find yourself asking.

Repeatedly.

Is it better to open your own business and spend less money upfront? And possibly save on the on-going costs of partnering with a franchisee?

Or is it wiser to back yourself with a leading brand in the ultra-competitive business market? Is it a case of – if you can’t beat ‘em, join ‘em?

Perhaps being the true owner of your business overrides that security but do you really want to be the corner store competing with a household name?

These are the age old questions most individuals looking to be their own boss have asked.

So here is the low-down on opening a start-up and joining a franchise:

RIDING SOLO Less cost upfront: All businesses come with risk, but generally speaking starting up your own business comes with less upfront costs. This is unlike a franchise which can go up to the six digit mark initially to fund training, fit out and working capital.

However, without the initial costs of a franchise which are used for training, the independent operator is left to develop those skills over time. Also, ongoing NOV/DEC 2016 | 100 | WWW.FRANCHISEBUSINESS.COM.AU

franchise fees used for marketing expertise may require a start-up entrepreneur to spend on outsourcing these services.

You wear the pants: In most effective franchise systems, franchisees are encouraged to share their ideas and play a role in the betterment of the business, but at the end of the day, the franchisor always wears the pants. When you go it alone, the pants are yours.

Disruptors and risk-takers aboard: Although all business ventures come with risk, engaging in a start-up is the quintessential example of this. But this doesn’t mean taking risks are all bad – look at where it’s taken Sir Richard Branson or Janine Allis.

Entrepreneurs welcome: If you’re an entrepreneur at heart that is ready to disrupt with innovation, opening an independent business is a more suitable option. This is because proven franchise systems are designed to be followed.

franchise model, franchisees are backed by proven business systems and processes.

Power of the brand: the franchisor’s connections together with the power of the franchise business can help land franchisees better deals in rent and suppliers; reducing costs in the long term.

A hand to hold: A good franchisor can be a great mentor as you learn the ropes of running a business.

They can provide ongoing support throughout the franchise term. This is an advantage compared to the independent operator who would need to hire a mentor for support and guidance.

You’re not alone: Heading up a business can be a lonely feat, but not necessarily in a franchise system. Think of other franchisees as competitors but also peers. Ideal franchise networks champion the support aspect of the business.

Bring on the competitors: As independent business owners, entrepreneurs are open to competition in territories from other operators and franchises. So it really is a case of ‘may the best man win’.

Location, location, location: Most franchise systems allow franchisees the peace of mind that they will not need to compete with the franchisor or other franchisees customers within their territory.

JOINING A NETWORK

So the best pathway depends on what you’re looking for and which option suits your situation.

Less risk in the long term: As mentioned, all business ventures come with risks, but in a

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The franchisor’s connections together with the power of the franchise business can help land franchisees better deals in rent and suppliers

LEGALESE

ESTHER GUTNICK Senior associate, MST Lawyers

BUYING A FRANCHISE DO YOU HAVE TO USE THE PREFERRED SUPPLIERS?

M

any franchisors require their franchisees to source products and services for use and sale in the franchised business from certain suppliers approved by the franchisor. This requirement may be specified in the terms of the franchise agreement or it may be found in the franchisor’s operations manual (or similar).

If as a franchisee you fail to use preferred suppliers, you risk being in breach of the franchise agreement, which could ultimately result in termination of the franchise agreement and/or legal action by the franchisor to recover any loss or damage incurred because of your actions.

PROS AND CONS OF PREFERRED SUPPLIERS Franchisees are often happy to avail themselves of the franchisor’s preferred suppliers because doing so: • ensures the products and services purchased are consistent with other members of the franchise network; • ensures the products and services purchased are acceptable to the franchisor and comply with any prescribed standards or quality requirements; • may provide benefits of any group discounts or competitive supply terms negotiated by the franchisor which the franchisee would not otherwise be able to secure; and • frees them from the hassles of investigating

and sourcing their own network of suppliers and allows them to instead focus on conducting the franchised business.

However, using the preferred supplier arrangements can sometimes be detrimental to the franchisee, for example if: • they are more expensive, less competitive or less reliable than those the franchisee is able to source individually; • the products are of lesser quality than those the franchisee is able to source; or • the franchisee is able to obtain benefits (such as rebates, marketing opportunities, reduced storage requirements or increased customers) from acquiring its own locally-sourced products.

On face value, franchisees are obliged to comply with the terms of the franchise agreement and use the franchisor’s preferred suppliers.

You should, however, check whether such arrangements constitute third line forcing and are therefore illegal.

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Check whether such arrangements constitute third line forcing and are therefore illegal

IS THE ARRANGEMENT LEGAL? Third Line Forcing is a type of exclusive dealing conduct which is prohibited by section 47 of the Competition and Consumer Act 2010 (CCA). It occurs when a business will not supply goods or services, or give a particular price or discount, unless the purchaser buys goods or services from a particular third party.

In contrast to other types of exclusive dealing, third line forcing is prohibited by the CCA irrespective of its effect on competition.

In a franchising context, the CCA would make it illegal for a franchisor to make it a condition of the franchise agreement that the franchisee must purchase products from

a specified third party.

There are some exemptions, including where the supplier and the franchisor are related parties, and there are also provisions in the CCA that enable a person seeking to engage in third line forcing to effectively obtain permission from the ACCC to do so.

This permission can be gained through what is known as notification or authorisation but public benefit must be demonstrated before such permission will be granted.

Preferred supplier arrangements are also unlikely to be illegal where: • the franchisor has approved several suppliers, from which the franchisee is free to choose

whom to engage for supply; • the approved suppliers have been nominated because they satisfy the franchisor’s standards and quality controls; • the franchisor provides a process whereby new or alternate suppliers can be suggested, assessed and approved, provided they meet the franchisor’s quality standards.

In summary, franchisors may nominate preferred suppliers which meet their quality standards. Franchisees must comply with the franchisor’s mandatory supply arrangements, if the franchise agreement contractually obliges them to do so, unless the arrangements constitute third line forcing (or another type of anti-competitive conduct prohibited by the CCA) and the franchisor has

not obtained notification or authorisation from the ACCC for engaging in such conduct.

SO WHAT SHOULD YOU DO? Before entering into a franchise, you should carefully review the franchise agreement, disclosure document and any operations manual to ensure you are aware of any mandatory supply arrangements and should seek out detailed information regarding the supplier arrangements, including all relevant terms and conditions of supply.

You should also confirm whether the franchisor has any third line forcing notifications in place, which would oblige you to comply with mandatory supply arrangements even if they constitute third line forcing.

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NOV/DEC 2016 | 103 | WWW.FRANCHISEBUSINESS.COM.AU

SKETCH

FRANCHISING AND BUSINESS ETHICS

ANDREW TERRY Professor of Business Regulation in the University of Sydney Business School

F

irst, there is the law. It must be obeyed. But the law is the minimum. You must act ethically. This statement – from IBM’s Employee Guidelines - is one that should be adopted by all enterprises. Not copied of course, as that would constitute breach of copyright which is both illegal and unethical, but certainly embraced as an underpinning philosophy for the enterprise as a whole from the shop floor to the boardroom.

In fact, irrespective of whether Australian franchisors expressly adopt a similar proposition they are obliged behave to behave ethically. All members of the Franchise Council of Australia – franchisors, franchisees and suppliers – are bound by the FCA Member Standards which demand conduct that goes beyond compliance with the law: “Members are expected to behave professionally and refrain from illegal, unethical or improper dealings or otherwise act contrary to the image of franchising or the FCA”.

Volkswagen is simply the most recent highest profile example of an organisation which would be in a much better place today if such a philosophy had been hardwired in the organisation’s DNA. The practices which have cost the car firm billions of dollars in fines and compensation (in well as a plunging share price and massive reputational damage) were flagrant breaches of emission regulations but would not have occurred if the organisation had an entrenched corporate culture of regulatory compliance and ethical conduct.

The circumstances surrounding Volkswagen’s behaviour is still a work in progress but it is obvious

that this scandal was not caused by the conduct of one bad apple – a risk for any enterprise – but reflected a lack of ethical awareness by a number of employees at a number of levels.

Ethics is a branch of philosophy, moral philosophy, which is concerned with how people ought to act. The study has engaged philosophers for centuries from the times of Socrates in 400BC to the present day. From a philosophical perspective it may be unsound to draw too close a connection between business law and business ethics; the law is what you must do, ethics is what you should do.

But although ethics has a life and a role separate from the law it is important to the note that the law which governs the franchise sector has an increasingly ethical influence.

The legislative directions not to engage in misleading conduct and unconscionable conduct reflect broad ethical standards. The unfair contract terms regulation and the addition of an obligation of good faith to the Franchising Code of Conduct are more recent examples.

It is not suggested that the enactment of these broad standards cover the ethical field and leave no room for ethical conduct beyond

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the statutory minimum.

Those familiar with the vast literature on misleading and unconscionable conduct know that that most of the litigation on these provisions are forensic battles about the reach and extent of the statutory provisions and not philosophical debates as to ethical obligations.

In many of the litigated cases – perhaps most – the impugned conduct would not pass the ethical test.

At the end of the day much litigation (and the accompanying time, cost, stress, adverse publicity, business disruption) would have been avoided if business ethics had been considered as well as business law. This will be even more important under the new good faith obligation.

There is a massive cost to litigation for all parties to it and in so many cases a greater attention to business ethics will avoid it.

It is no doubt a cynical approach but although an ethical approach to business is presumably meant to protect those who deal with that business it also protects the business itself from the financial and reputational cost of litigation.

LEADERSHIP

THE IMPORTANCE OF ASKING GREAT QUESTIONS KARLI FURMAGE Karli Furmage is a trainer, coach and writer.

A

sking good questions is an essential survival skill for franchisees.

But not all questions are created equal. Good questions draw out information, stimulate discussion, clarify facts and help shape meaningful conversations: essential for a franchisee communicating with customers, franchisor, staff and suppliers.

Developing the skill of good questioning takes self-awareness, reflection and practice.

YOUR QUESTION ANTENNAE Where do you rank your ability to ask good questions? Most people think they are pretty good, unfortunately most people are wrong!

The first step of becoming a great questioner is awareness.

Honing your questioning skills starts with being aware of some of the bad habits most of us have been guilty of at one time or another.

NOT BEING PRESENT IN THE CONVERSATION We’ve all done this one. Zoning out as someone is talking. Maybe we’re not that interested, we’ve heard it before or we are just waiting for our turn to speak. This type of behavior causes issues as the other person usually knows and we miss the opportunity for a meaningful connection and uncovering useful information.

If I’m finding a conversation tiresome or boring or unproductive, it’s usually because I’m not asking good questions. We can only ask targeted, relevant insightful questions when we pay attention.

POSING AN OPINION AS A QUESTION ‘How much better is this new marketing campaign?’ It might be a fact it is much better. But it also might just be an opinion.

We use these types of questions usually for validation. There is credibility in being more direct,’ I think this promo is great, what do you think?’ Or a more useful way to find out information impartially is: ‘how do you rate this campaign against the last few?’

ASSUMING THE ANSWER Assuming you know what a person is saying [or trying to say] and either tuning out or not clarifying their answer underpins a lot of miscommunication. Make sure you’re not just hearing what you want to hear, ask questions to confirm your understanding.

STACKING QUESTIONS Asking more than one, often unrelated questions is fraught with danger. How were sales today, did you pick up the dog medicine, want me to register for the conference?

It’s confusing and often leads to information being lost, misunderstood or ignored.

We often do this so we don’t forget the information we want or because

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we think on the fly. Write questions down if you’re worried you’ll forget.

NOT BEING CLEAR ON THE QUESTION WE ARE ASKING Some people’s brains and mouths work at the same speed – they say things as they are thinking about them. That’s fine over dinner with friends, or in a casual chat but when you’re trying to have a meaningful interaction or uncover important information lack of clarity can damage your credibility and lead to confusion.

Stop and think about the question you want to ask. Give yourself time to collect your thoughts.

LOADED QUESTIONS AKA LEADING THE WITNESS! We usually know when someone is trying to nudge us into a corner [especially in a sales process] by artful [and sometimes blatant] questioning. When we feel manipulated we tend to either shut down or go on the front foot. Either way our defenses go up. Check your intentions [and your agenda!] and be honest in your questioning.

NOT PROVIDING CONTEXT Sometimes not knowing the purpose of a question can cause suspicion. If you need to share the back story for the response to be worthwhile then do it, if you don’t then don’t. There’s a balance between oversharing and contextualising.

Questions frame a conversation as we retrieve and explore information, great connections help us create new connections and make meaning together.

5 THINGS

YOU NEED TO KNOW ABOUT THE FRANCHISING CODE OF CONDUCT NOV/DEC 2016 | 108 | WWW.FRANCHISEBUSINESS.COM.AU

T

he Franchising Code of Conduct (The Code) is the foundation of Australia’s highly regulated franchising sector – and one of the most important documents for a franchisee. Here are five things you need to know about it.

IT GOVERNS THE ONGOING FRANCHISEE/FRANCHISOR 1.

RELATIONSHIP The document outlines the rights and responsibilities of the franchisee investing in the business, and the franchisor, who runs the franchise system. In many ways, the Code works primarily for the benefit of franchisees.

REQUIRES THE FRANCHISEE 2.

AND FRANCHISOR TO ACT IN GOOD FAIT In January 2015, the Code introduced an obligation under the Code for the franchisee and franchisor to act in good faith in their combined dealings. This obligation is required during the entire franchise rela-

tionship from the negotiation stage to the termination of the agreement.

AREN’T PROTECTED FROM ALL RISKS 5. FRANCHISEES

3.

Yes, the Code is designed to protect franchisees overall, but there are some ways it cannot help franchisees

FINANCIAL PENALTIES AND INFRINGEMENT NOTICES APPLY FOR NON-COMPLIANCE The Code also includes fines and infringement notices for serious breaches of the Code, and can be investigated by the Australian Competition and Consumer Commission.

MUST BE 4. FRANCHISORS TRANSPARENT The document requires greater financial transparency from the franchisor about marketing and advertising, as well as a clarity over franchisor/franchisee e-retailing.

These include: • If a franchisee fails to undergo effective due diligence • Whether a franchisor offers a minimum term or option to renew or extend • A franchisee does not investigate the scope of an offered territory • The fees a franchisor can charge a franchisee; the document does not dictate this • A franchisee terminating an agreement after the cooling off period.

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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?

Who pays for the marketing?

Have you worked out your operating costs?

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?

NOV/DEC 2016 | 110 | WWW.FRANCHISEBUSINESS.COM.AU

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.

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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

NOV/DEC 2016 | 112 | WWW.FRANCHISEBUSINESS.COM.AU

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A-Z LISTINGS

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

G L O B A L

Professional Coaching | Corporate Training Achieving Personal and Business Goals Faster

Phone: 1800 634 227 Contact: Andrew info@briantracyglobal.com www.briantracyglobal.com Start up costs from: $49,950 + GST Includes inventory for fast ROI.

Start up costs from: $51,500 + GST 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 50 franchisees grow profitable and successful businesses.

PROFILE: The name Brian Tracy is synonymous with personal and professional success. Our excellent reputation and highly-regarded programs are unrivalled and will give you brand credibility, prestige and trust in your business community.

We are searching for high-calibre individuals who are self-motivated thinkers, looking for a business opportunity beyond the generic franchise. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find about more about the Brian Tracy International.

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.

Phone: 029723 97231011 1011 Phone: 02 02 9723 Phone: Fax: 029727 97276771 6771 Fax:02 02 9727 Fax: Contact: Nick Nick Avgerinos Contact: NickAvgerinos Avgerinos Contact: Email: franchise@cheesecake.com.au franchise@cheesecake.com.au franchise@cheesecake.com.au Website: www.cheesecake.com.au www.cheesecake.com.au www.cheesecake.com.au

Phone: 1300 659 676 Fax: 1300 659 675 Contact: Dan Toms customerservice@cashflowit.com.au www.cashflowit.com.au PROFILE: Cashflow It are the franchise finance experts. With competitive rates and flexible terms from 12 months to 5 years, Cashflow It can provide the funding that franchisors and franchisees need today. We offer flexible rental solutions, traditional leasing and business loans tailored to your requirements.

What can we Fund - New equipment / Used equipment / Fit-outs / Store refurbishments / Re-financing from other lenders / Buying an existing franchise / National equipment roll-outs Franchise Accreditation - If you belong to a Cashflow It Accredited Franchise system, you can enjoy pre-approval and other exclusive benefits.

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 PROFILE: 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.

Our franchise partners are passionate about providing their customers with the cleanest and healthiest homes.

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.

Start up costs costs from: $200,000 --$800,000 Start $800,000 Startup up costsfrom: from:$200,000 $200,000 - $800,000 ProFilE:

PROFILE: PROFILE: The Cheesecake Shop opened in 1991 and has developed into an Australian TheCheesecake Cheesecake Shop Shop opened 1991 into anan Australian The openedofininalmost 1991and andhas hasdeveloped developed into Australian favourite with a massive network 200 stores across Australasia. favourite with with aa massive massive network Australasia. favourite networkof ofalmost almost200 200stores storesacross across Australasia.

Our award winning system makes for one of the simplest businesses to operate.

Our award winning system makes for one of the simplest businesses to operate.

Our award winning system makes for oneyou of need the simplest businesses operate.

Our systems guide you on how many cakes to produce each weektoand Our much systems guide you on how many cakes you need to produce each week and how of each ingredient to order.

Our systems guide you on how many cakes you need to produce each week and how much of each ingredient to order. how muchare of baked each ingredient order. recipes. You don’t need to be a chef or Our cakes from easy to to follow Our cakes are baked from easy to follow recipes. You don’t need to be a chef or a baker, its so Our cakes areeasy! baked from easy to follow recipes. You don’t need to be a chef or a baker, its so easy! loveitstoso bake cakes for the kids then here is your chance to turn your aIf you baker, easy!

If you love bake cakes for the kids then here is your chance to turn your passion intoto profit.

Ifpassion you loveinto to profit. bake cakes for the kids then here is your chance to turn your passion into profit.

Phone: 03 9508 4465 Fax: 03 9508 4499 Contact: Sally Nathan Sally.Nathan@retailzoo.com.au www.cibo.com.au Start up costs: $220k - $300k + GST (Hole in the Wall model) $400k - $500k + GST (Kiosk model) $450k - $600k + GST (Street site location) PROFILE: CIBO Espresso was born from a passion to share the simple pleasures of the Italian lifestyle - wonderful coffee and quality food in a modern, stylish bar setting.

Share an “Italian moment” whenever you choose, just by stepping through the door.

We use 100 percent Premium Arabica coffee beans, roasted and blended to our own special recipe. Our baristas are trained to ensure a great shot every time.

Adelaide has always had a passion for really good coffee and after identifying a gap in the market, the first ‘CIBO Espresso Bar’ opened in Rundle Street in 2000. It was such a hit, that the phenomenon has expanded across the country fast and is continuing to grow Australia-wide!

NOV/DEC 2016 | 114 | WWW.FRANCHISEBUSINESS.COM.AU

A-Z LISTINGS

Phone: +61 02 9207 8877 Contact: Rod Laycock rodl@civicms.com.au www.civicmanagedservices.com.au

Phone: 0421 644 661 Fax: 07 5591 9021 Contact: John Stanton rfga@rfg.com.au www.thecoffeeguy.net.au Start up costs: $55,000 - $65,000

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.

PROFILE: The Coffee Guy is Australia’s newest and most exciting mobile coffee franchise.

Founded in 2006 in Auckland, NZ, The Coffee Guy mobile coffee franchise has grown into a successful brand with a presence all over New Zealand. The first Australian van launched in Yatala, Queensland successfully in May 2013.

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.

Call us for an obligation free discussion.

Phone: 1300 720 622 Contact: Rian Bell supply@constructionsupplyservice.com.au

Phone: 08 9321 5844 Fax: 08 9321 5855 Contact: Head Office info@cxpresso.com.au www.cxpresso.com.au Start up costs: Entry from $300K inclusive of fees

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.

Behaviour Training

Phone: 1300 650 739 Fax: 02 8088 4383 Contact: Richard McDonald franchise@dogtech.com.au www.dogtech.com.au Start up costs: $50,000 (Approx.)

PROFILE: DogTech is a highly professional and respected dog behavioural training company that enjoys an enviable reputation within the $4.62 billion Australian pet industry.

We specialise in the education, communication and management of individual dog behaviours, no matter the breed, age, size or history.

With over 25 years’ experience in rehabilitating and training dogs utilising our unique Whisper Wise program, we strive to create an ideal home environment for all dogs.

As well as individual dog owners, the reputation of Whisper Wise sees franchisees working with veterinary clinics, dog rescuers, shelters, licensed breeders and government and community service providers.

PROFILE: CXpresso, an extension of sister brand Croissant Express, specialises in the delivery of delicious sit down or grab and go options. We cater to the busy morning commuter, the lunch time crowd and anyone looking for a delicious treat or refreshing beverage. There are few experiences more satisfying than growing your own business, especially with the experience of a strong brand, with clearly defined objectives and the support to achieve them. Become your own boss with new and existing store opportunities available Australia wide.

Phone: 1300 131 888 Contact: Julie Mitchell Franchise.Recruitment@dominos.com.au www.dominosfranchise.com.au Start up costs: Initial investment $250k PROFILE: Domino’s Pizza Enterprises Ltd (Domino’s) is the largest pizza chain in Australia in terms of both network store numbers and network sales. Domino’s Pizza Enterprises now extends across seven countries, with more than 2000 stores and is the leading international Domino’s franchise.

As a Domino’s franchisee you are a part of a like-minded community of food loving, entrepreneurial, techies who are passionate about delivering great service, amazing food and having fun while doing it.

Our Franchising system provides a solid foundation for entrepreneurs to think big and grow with us on our mission to ‘Sell more pizzas, have more fun!’.

DogTech franchisees benefit from an established program that is underpinned by comprehensive training and ongoing support that reflects the professionalism of DogTech.

NOV/DEC 2016 | 115 | WWW.FRANCHISEBUSINESS.COM.AU

A-Z LISTINGS

Phone: 03 5975 8614 Contact: Sal El-Houli franchising@famousfish.com.au www.famousfish.com.au

Phone: 03 9336 3200 Fax: 03 9336 3266 Contact: Peter Collins franchising@fergusonplarre.com.au www.fergusonplarre.com.au

Start up costs: Minimum $200,000 (Dependent on Site Conditions & Fitout Contributions)

Start up costs: $250,000 - $300,000

PROFILE: The Costi family have been retailers of premium-quality seafood since 1958. Our sumptuous menu remains true to its heritage of providing good old fashioned fish & chips, whilst also being continuously refined over the years to maintain a modern touch that is relevant to the ever changing food landscape. With seafood consumption in Australia having increased by 27% per capita since 1997 and remaining the #1 take-away food item sold by independent take-away shops, and with no multi-unit, integrated seafood operations currently in operation, this represents an exciting opportunity for you to capitalize on this significant gap in the market.

PROFILE: Ferguson Plarre Bakehouses has always been and still is a family owned and operated business celebrating its 115 year anniversary in 2016. The fourth generation of the Plarre family still actively own and manage the day to day running of the business from baking through to retail shop design, operations and bakery franchising. The family continue to embrace their forefather’s commitment to quality products, service and innovation.

With no Royalty or Marketing Fees, fresh product delivered daily to the store and no baking required, the business is perfect for people who can drive sales and install this trait into their own team.

Phone: 02 8845 0100 Fax: 02 8845 0199 Contact: Franchise Development Manager franchise@gelatissimo.com.au www.gelatissimo.com.au

Phone: 1300 852 556 or 0438 801 575 Contact: Andrew Roberts Andrew.roberts@fifocapital.com.au www.fifocapital.com.au Start up costs: $49,500

Start up costs from: $300,000 PROFILE: Fifo Capital provides cash flow assistance to small businesses whilst giving a great lifestyle, excellent returns and an enviable work/life balance to its franchisees. No experience necessary as full training and ongoing support is provided.

Having grown by over 35% this year Fifo Capital is making a huge impact right across the country for a variety of reasons. Below are some of the benefits our partners enjoy as members of the Fifo family.

• • • •

ROI of 50+% annualised* Backed by insurance Part-time potential, Work from home (if you wish),

• Backed by one of the biggest and most successful finance franchisors in the country.

• Multiple income streams

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.

Phone: 03 9234 2200 Fax: 03 9234 2266 Contact: Peter Fiasco franchising@hairhousewarehouse.com.au Hairhousefranchising.com.au

Phone: 0412 692 052 Contact: David Wilkinson sales.au@inxpress.com inxpress.com inxpress.com.au/franchising

Start up costs from: $350k +

Start up costs from: $64,950 +GST

PROFILE: With over 20 years of experience in the hair and beauty industry, Hairhouse Warehouse is one of Australia’s leading retail franchise brands.

Hairhouse Warehouse’s vision is clear and simple. Offer quality products at a reasonable price, whilst providing exceptional customer service. This mission is clearly on display in each and every one of our locations by simply looking at our franchisees and the teams they work with.

As a franchisee, no hair or beauty certification is required - just a passion for success.

As Hairhouse Warehouse continues to dominate the hair and beauty industry in Australia, the brand and franchisees are seeing amazing results. To continue our brand domination Hairhouse Warehouse is planning to expand to over 180 stores over the next three years.

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 • Guaranteed income* • No inventory/warehousing

• Minimal employee base • High income potential • Ongoing training and support

For more information about becoming an InXpress franchisee contact us now. *conditions apply

NOV/DEC 2016 | 116 | WWW.FRANCHISEBUSINESS.COM.AU

A-Z LISTINGS

Phone: 131 546 Contact: Andrew Parke getstarted@jimsantennas.com.au www.jimsantennas.com.au

Phone: 02 9527 5444 0439 130 499 Contact: Luke Manning Luke@justcuts.com Justcuts.com

Start up costs: Starting from $59,000

Start up costs: $85,000 - $120,000 (Kiosk) $160,000 - $240,000 (Salon)

PROFILE: Jim’s Antennas is Australia’s most successful antenna and audio visual company.

Our franchisees specialise in a variety of audio visual services, including antenna installations and repairs, TV wall mounting, data points, home theatre, MATV systems, and national contracts such as wireless NBN. No experience is necessary as full training and ongoing support is provided.

Jim’s Antennas currently have both Franchise and Master Franchise Opportunities available throughout Australia.

PROFILE: You don’t have to be a hairdresser to own a Just Cuts™. We truly believe that the success of the brand comes down to our network of Franchise Owners - that’s why we make things easy, convenient and simple for you. When you open your very own Just Cuts™, you will enjoy the benefits of fixed franchising fees, flexible finance options and not only will we guide you through every step of opening your salon, but also provide you with ongoing business, operational and marketing support.

We’ve grown to be the largest hairdressing company in the Southern Hemisphere and perform over 90,000 Style Cuts™ cuts for our Clients each week!

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.

Turn your dreams into reality with Just Cuts™ - Visit www.justcuts.com.au/franchising

Phone: 03 9460 6700 Fax: 03 9460 3099 Contact: Brendan Flanagan franchising@laporchetta.com.au www.laporchetta.com Start up costs: $300,000 + (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+

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: $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.

Phone: 0404 755 759 Contact: Simon O’Brien sobrien@lavacoffee.com.au lavacoffee.com.au Start up costs: $95,000

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.

Phone: 0457 677 986 Contact: Paul Kasper franchising@mbe.com.au Start up costs from: $185K www.mbebusinessfranchise.com.au PROFILE: 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.

Our Owners enjoy a great work/life balance with your Centre opening hours of 8am to 5:30pm Monday through Friday - closed for Public Holidays. As a Business Services Franchise, there is no spoilage and we also partner with our suppliers to provide our Owners a comprehensive and continual improvement training program - no experience is necessary.

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.

NOV/DEC 2016 | 117 | WWW.FRANCHISEBUSINESS.COM.AU

A-Z LISTINGS

Phone: 03 9604 9400 Fax: 03 9600 3313 rxt@marshmaher.com.au mim@marshmaher.com.au www.marshmaher.com.au

Phone: 0457 766 919 Contact: Ian Skeoch Ian.Skeoch@MassageEnvy.com.au www.MassageEnvyFranchise.com.au

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.

5.

6.

7.

8.

Franchisee Advice and fixed fee reports.

Sale/ Purchase of franchise systems.

IP/ Trademark advice.

Company structures and tax advice.

ACCC and Consumer Law advice.

We provide clients fixed fees based on the scope of work.

Phone: 0401 388 863 Fax: 07 5591 9021 Contact: Joanne Taylor Joanne.taylor@rfg.com.au www.michels.com.au

PROFILE: Having experienced phenomenal success and growth in the USA, Massage Envy is now set to take Australia by storm with it’s unique membership based business model.

In the 14 years since it’s establishment in the USA, the Massage Envy network covers over 1,100 locations, providing 20 million massage services a year, to more than 1.65 million members.

With it’s expanding membership base and recurring revenue model, Massage Envy provides unlimited growth for franchisees.

Be one of the first to join the next franchise revolution in Australia.

Phone: 03 9016 7877 Contact: Danielle Joynson milestoneaustralia@milestone.dk www.milestonesys.com

Start up costs: $230,000 - $400,000 PROFILE: Michel’s Patisserie is Australia’s largest patisserie chain specialising in decadent cakes, French inspired pastries, mouth-watering savouries and our exclusive awardwinning coffee. It is this combination that has helped Michel’s win “Coffee Shop of the Year” for the last four years, as voted by consumers.

Being a well known and loved brand, with nearly 300 locations across Australia, our customers can enjoy our French inspired products that help make each moment in life that little bit extra special.

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 761 925 Contact: Marc franchise@nirvanabeauty.com.au www.nirvanabeauty.com.au

Phone: 1300 650 330 Fax: (02) 9922 6738 Contact: 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

Start up costs from: $250,000 - $500,000

PROFILE: Having conquered some of the latest beauty treatments and technologies, Nirvana Beauty Laser Clinics presents a huge investment opportunity for people wishing to enter an industry with enormous potential.

With Nirvana Beauty Laser Clinics you will experience the satisfaction of delivering results-driven treatments for many happy clients with state of the art technologies.

Achieve a true work-life balance and live the life you always wanted.

We offer our franchise owners a high degree of independence and the satisfaction of enjoying the fruits of their own input, while benefiting from the support and security of an established program and expert advice. Enquire today!

NOV/DEC 2016 | 118 | WWW.FRANCHISEBUSINESS.COM.AU

A-Z LISTINGS

Phone: 07 3456 4255 Fax: 07 3456 4299 Contact: Phil Hill phil.hill@propertyclub.com.au www.propertyclub.com.au

Phone: 1800 245 447 Fax: 07 3173 7399 Contact: Mike Geddes & Jason Hanns joinourteam@poolwerx.com.au www.poolwerx.com.au/franchising Start up costs: From $95,000 plus GST PROFILE: Poolwerx are the leading global after-market swimming pool retailer and service company. Our history of innovation is multi-awarded in franchising and the industry.

• 24 years of experience • Proven systems and support • Three income streams (Retail, residential and commercial)

• Database of all pools • Access to finance with two major banks • CRM specific to the industry • Industry best buying power

Poolwerx have opportunities at all investment levels.

Visit www.poolwerx.com.au/franchising for more information.

Start up costs from: $1,000 (Try Before You Buy)

PROFILE: Property Club was established 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 20,000 properties purchased to date. Success of the Club is evident through the 5,000+ members of our Property Millionaires Club.

Property Club now offers an opportunity to join our existing 15 Branches.

Full training, supported by a dedicated team of head office staff and licensed property researchers will be provided to successful applicants.

Phone: 1300 4 REDCAT (1300 473 322) Fax: 03 9696 1553 info@redcat.com.au www.redcat.com.au

Phone: 1800 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@ questapartments.com.au www.questfranchise.com.au Start up costs: $750,000 upwards PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of 150 franchised properties across Australia, New Zealand and Fiji.

For over 25 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended stay corporate travellers among Australia’s top 500 companies.

Quest is now one of the top 15 apartment hotel providers in the world, and widely recognised as the market leader of apartment hotel accommodation in Australia.

To become a Quest Franchisee you must be prepared to make a significant investment and commitment to the business, both personally and financially.

PROFILE: Redcat provides end-to-end, point of sale, accounting and business management solutions that gives users total control of their business.

Redcat supplies Redcat Polygon, an integrated software and hardware solution 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 flexibility 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.

Phone: 02 8303 2224 Contact: Stuart Ratcliffe franchise@redspot.com.au www.redspot.com.au

Phone: 07 5591 3242 Fax: 07 5591 9021 Contact: Michael Marr Michael.marr@rfg.com.au www.rfg.com.au

Start up costs from: $140K PROFILE: 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.

There are obvious synergies owning an Enterprise/Redspot Franchise has with other automotive businesses in particular dealerships. There are exciting opportunities for cross promotion and integration of the businesses.

The Enterprise/Redspot franchise offers existing independent or Franchised car rental operators the chance to re-invigorate their business and join this revolution in the Australian vehicle rental industry.

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 Cafe, Gloria Jean’s Coffees, It’s A Grind, The Coffee Guy, Café2U, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza Bar franchise systems.

NOV/DEC 2016 | 119 | WWW.FRANCHISEBUSINESS.COM.AU

A-Z LISTINGS

Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Les Coppin les.coppin@snapon.com www.snapontools.com.au Start up costs from: $50,000

Phone: 03 9645 4798 Contact: Brad Dekkers franchise@sportingglobe.com.au www.sportingglobe.com.au/franchise Start up costs: $700,000+

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.

PROFILE: The Sporting Globe Bar & Grill is Australia’s most loved sports bar and grill franchise.

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.

The Sporting Globe business model has been designed to allow our Franchise Partners to focus on what is most important – customers!

Offering high quality casual dining in a social and welcoming atmosphere with a state-of-the-art sports fitout, The Sporting Globe is great place to eat, drink and catch a game.

With venues opening across Australia, now is the time to get involved with Australia’s fastest growing sports bar and grill brand – do something you love, enquire today!

Phone: 08 8376 3016 Contact: George Karamalis info@st-louis.com.au www.st-louis.com.au

Phone: 02 7200 4300 Contact: Andrew Wild andreww@sumosalad.com www.SumoSalad.com

Start up costs from: $350,000

Start up costs: From $200k

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.

PROFILE: Join SumoSalad, Australia’s largest and most awarded healthy fast food franchise, on our journey to make Australia a healthier place. We offer healthy, tasty food in a fun, affordable and convenient way. Our high level of standards and superior customer service enables us to continue to flourish and grow within this exhilarating industry.

With unparalleled training, continuous support and a strong, proven store concept, becoming a franchisee within SumoSalad is more than just becoming a business owner; it’s about joining a movement.

Change your lifestyle. Invest in something that warms you from the inside out.

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 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.

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 you’re looking for either a retail or service business that delivers solid revenues with high margins and low fees, just ask Swimart!

Phone: 02 9037 2849 Contact: Doug Downer doug@thealternativeboard.com.au www.thealternativeboard.com.au Start up costs: from $40,000 up to $95,000

PROFILE: The Alternative Board is a membership organisation of Business Owners and CEOs who meet monthly in confidential board meetings to assist each other in transforming their businesses.

The Alternative Board (TAB) exists to help business owners align their business vision with their personal vision. It exists to provide owners/CEO’s with the power to ensure that their businesses will deliver what they want out of life.

In addition to the monthly board meetings, the facilitator/coach meets with the business owner/CEO each month and works with them in a one on one coaching session focussed exclusively on their business.

NOV/DEC 2016 | 120 | WWW.FRANCHISEBUSINESS.COM.AU

A-Z LISTINGS

Phone: 07 3215 6050 Contact: Gen Alexander Franchising@tommyguns.com.au www.tommyguns.com.au

Phone: 0439 966 391 Contact: Wayne Stapleton info@under-wraps.com.au www.under-wraps.com.au

Start up costs: $250,000 - $500,000

Start up costs: $100,000

PROFILE: Tommy Gun’s Original Barbershops have been designed with the customer experience at centre, creating a complete destination for male grooming.

For years men’s grooming needs have been largely ignored. Getting a haircut in a salon surrounded by flowers and piles of ladies magazines…or joining the queue of guys on an uninspiring bench at the local cheap cuts. Getting their hands on the right grooming products was also a challenge, running around to multiple stores for razors, oils or waxes.

Tommy Gun’s is the new alternative that has been received with high fives and fist pumps.

Seamlessly combining the latest technology with old-world finishes, grooming services and products, all under the one accessible roof. What’s not to love?

With custom red barber chairs, an exclusive waiting lounge, arcade games and Foxtel in every mirror, the experience is relaxed, luxurious and affordable.

PROFILE: Under Wraps is a health inspired sandwich, salad + juice bar. Under Wraps offers fresh, nutritious “Real food Real Fresh” approach for breakfast, lunch, snacks and take home meals.

The sandwich + salad bar is a delicious range of wraps, sandwiches, baguettes, wholefood salads and bowls, protein pots, breakfasts and hot dishes freshly prepared with love using fresh, seasonal ingredients. A broad range of vegetarian and vegan options in integrated in the menu.

The juice bar offers a fabulous range of fresh juices, frappes and smoothies prepared with care and premium quality ingredients to give customers a glow, a protein punch, to rejuvenate, and to supercharge. When we need a caffeine fix, the Under Wraps gourmet coffee and tea range is extensive, with a rewarding loyalty card for devotees.

Phone: 0418 295 091 Contact: Luke McGrath franchising@wokme.com.au www.wokme.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 turn-key!

Start up costs: $150,000 - $250,000

PROFILE: WOK ME is an Australian owned healthy, fast food company.

Our philosophy is to provide a Healthy - great tasting, Fresh – made to order, Fast to take home or delivered to you in store or to your home as quick as possible. Basically, top quality experience at affordable prices. We do this in what we call the most flirtatious way possible, meaning with the best customer service experience we can create.

Giving our customers an above expectations experience.

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 audio, on hold phone messaging and music-video technology through our 1800 ONHOLD and Moo Music brands.

We help you create the perfect ambience for your franchise with the latest internetdelivered music and messaging services - inclusive of public performance fees.

Whether you require great background music, or a professionally produced on-hold phone message, the team at Zoo Business Media can put a program together that will ensure your business sounds great.

Contact us on 1300 139 913 to find out more.

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ADVERTISING INDEX

INCORPORATING FCA NEWS

* INDICATES FCA MEMBER

Appliance Tagging Services

97*

Mortgage Choice

87*

Brian Tracy

61*

Nirvana Beauty

57

CashflowIt

7*

Octomedia

40-41*, 113*

Chemdry

21

Poolwerx

78*

Cibo

27*

Property Club

53

Quest Apartment Hotels

54

Construction Supply & Service

86

Redcat

105*

Croissant Express

23*

Redspot

79

DogTech

67*

Retail Food Group

62-63

Domino’s

31

St Louis

17

Famous Fish

92

Snap-on Tools

71*

Specialised Events

93

Sumo Salad

65*

Swimart

69*

The Alternative Board

103

Inxpress

35*

The Cheesecake Shop

9*

La Porchetta

60*

The Coffee Guy

45

Lava Coffee

81*

The Sporting Globe

Lenards

124*

Tommy Guns

13

55*

Wok Me

123

Massage Envy

2*

Xpresso Café Mobile

Michel’s Patisserie

38-39

Xpresso Delight

Milestone Systems

99

Zoo Business Media

Civic Managed Services

Ferguson Plarre Fifo Capital

Gelatissimo Hairhouse Warehouse

Marsh & Maher

47

75* 107*

4*

51*

43

NOV/DEC 2016 | 122 | WWW.FRANCHISEBUSINESS.COM.AU

74* 11* 85

ARE YOU A

Success

DRIVEN INDIVIDUAL? etic rg e n e ly s u o ri e s a r fo g We are lookin o g to g in k o lo l a u id iv d in success driven ess. in s u b f o l e v le t x e n e th to You must be customer focused with a history of demonstrating initiative and excel in customer service.

Great opportunities now available in: • Brisbane • Sunshine Coast • Canberra • Gold Coast • Townsville • Toowoomba ‘Wok Me’ the Australian owned and run healthy fast food company.

With a philosophy of providing a Healthy, Fresh, Fast and Flirtatious business model.

Offering great tasting quality at affordable prices.

wokme.com.au

HEALTHY, FRESH, FAST + FLIRTATIOUS

THE CHICKEN SPECIALISTS In 2016 Lenard’s Chicken embarks on an exciting new chapter in our 29 year history – the introduction of a new contemporary store design and long-awaited ready-to-eat cooked range!

Already attracting rave reviews from our customers, the premium product range is led by our delicious Free Range Roast Chickens. The new format is destined to catapult us into the market leading position we aspire to continue to own for the next 30 years.

To ensure you are part of this journey with Australia’s favourite chicken retailer, register your interest now with Aroha Leigh at opportunities@lenards.com.au or call 1800 068 111.

NEW STORES NOW OPEN IN: Bondi Junction NSW, Loganholme QLD, Warwick WA, Baldivis WA, Lucas VIC, Wendouree VIC, Hervey Bay QLD, The Avenues QLD

NEW STORES OPENING SOON IN: Sugarland QLD, Harrisdale WA, Castletown QLD, Woden ACT