Inside Franchise Business Feb/April 2019 by Octomedia Pty Ltd

YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE WWW.FRANCHISEBUSINESS.COM.AU

FEB/APR 2019

ISSUE 32 VOL1

BRILLIANT BUDGET BUYS

Top low-cost investments

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PUMPING IT!

US fitness chains: founders talk tactics

BEAN BUSINESS: FRANCHISES WITH COFFEE HERITAGE

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CONTENTS

REGULARS

LEADERSHIP

14 BEAN HERITAGE 5 EDITORIAL Check these coffee chains with kudos. 6 GLOBAL EYE 10 INSIGHTS 147 WHAT IS A FRANCHISE 148 GLOSSARY 18 THE FITNESS MISSION Anytime Fitness, Orangetheory Fitness 150 BUYING PROCESS and Xtend Barre in the spotlight. 151 INFLUENCERS 24 REIMAGINING OLD FAVOURITES 152 CHECKLIST Three food franchises give their store 153 RESOURCES designs a shakeup. 28 CELEBRITY CHEF PICKS AUSTRALIA

SPECIAL FEATURE 55 21 TOP BUDGET BUYS

Take a look at what’s on offer from these hot-shot, low-cost franchises.

SPOTLIGHT

Why top restaurateur Marco Pierre White is bringing his franchise here.

30 GOT IT SORTED!

If you love numbers, a Shoebox franchise could be a great opportunity.

32 GENERATIONS GAME

Family fortunes are closely linked in these four real-life franchisee tales.

62 SWEET SENSATIONS

FRANCHISE BASICS

71 CHOC TOPS

105 BE EFFECTIVE IN YOUR SEARCH

Five dessert franchisors consider what’s on the plate for the sweet treats market. How franchisors sustain a niche business.

HOGGING THE LIMELIGHT

One franchisee couple is spearheading new initiatives at Hogsbreath.

43 FRESH START WITH MAD MEX

An accomplished franchisee couple takes on a new brand.

44 A LASER FOCUS ON HER FUTURE Mum-of-three is franchisee of two medi-aesthetic clinics.

48 LEANING IN

Female franchisee takes on tyre business.

50 DOUBLE DYNAMOS

Award-winning Hire A Hubby franchisees share their stories.

52 A DAY IN THE LIFE OF...

Andrew Bellchambers, Shingle Inn

How do you start to find your perfect franchise?

109 GETTING IT RIGHT

72 JUST THE VEGANNING

Vegan alternatives are firing up a new flavour in consumer culture

77 DIVING INTO THE DEEP END

Could a pools-based business be for you?

86 SAFE AND SOUND

Get the lowdown on two franchises.

88 A CONVENIENT FUTURE

A snapshot of convenience store trends.

The legal perspective on conducting due diligence.

112

WHO OWNS THE BRAND?

What the law says about brand ownership.

114 HOW MUCH IS A FRANCHISE? An easy guide to purchasing costs.

119 MONEY TIPS

Essentials on leasing equipment.

120 HOW TO BE A SALES SUPERSTAR Hot tips from a stellar franchisee.

90 SHOWTIME!

Looking for the best locations in NSW?

97 CENTRED ON SUCCESS

HIRING AND FIRING

The basics of employing staff..

128 IT’S NOT YOU, IT’S ME!

Understanding the franchise relationship

133 5 TRAITS OF TOP FRANCHISEES Become a brilliant business owner. 137 WHAT NEXT FOR THE SECTOR? The ACCC looks at franchising.

141

A FRAMEWORK FOR SUCCESS

Why it’s time for mandatory registration.

144 PM LOOSENS PURSE-STRINGS Franchise Council chief considers small-

Visit the Sydney Franchising expo.

92 HOT PROPERTY

125

122 TOP 3 MARKETING TIPS

How to market your business online.

Source the right shopping centre location. FEB/APR 2019 | 3 | WWW.FRANCHISEBUSINESS.COM.AU

business funding.

162 MYTH BUSTERS

Why legal costs are necessary.

Join the

fAmilia!

Mad Mex is the leading fresh & healthy brand in the fast casual category, we serve Baja-style Mexican food made with authentic and fresh ingredients, in a chilled, fun, fiesta-inspired atmosphere.

For over 10 years, Mad Mex has been an award winning franchise

concept recognised for its fast growing potential, ROI and successful business model.

BECOME YOUr OWN HEAD HONCHO madmex.com.au/franchise

EDITORIAL

A force to be reckoned with Due diligence is crucial to franchise success Welcome to Inside Franchise Business and the first edition for 2019 packed full of franchise experiences, real life stories, tales of expansion and innovation, and practical advice. This year Inside Franchise Business is bumping up its magazine content into four super-sized issues to make it more convenient to tap into the resources you need. A new spotlight on regional Australia will reveal the trends in population and business growth outside the metro regions. We launch this exciting series with a look at the thriving towns and upcoming areas in New South Wales. Which town will be the next top spot? Turn to page 92 to find out. Introducing our first Focus special feature, Inside Franchise Business showcases budget buys. We chart the specifics of each franchise offer from 21 diverse businesses so you can compare costs, training and support. If you want to purchase a franchise on limited funds, this is a must-read. Whatever the investment level of a business, there is a critical need for every buyer to do thorough due diligence, or research, before signing up to a franchise. It’s a fundamental that the whole team at Inside Franchise Business is very passionate about – franchising doesn’t offer any guarantees of success but the chances of achieving financial and lifestyle goals are considerably weakened when there’s very little investigation into how the franchise head office operates, the problems that exist for current franchisees, and whether the business will be money-making. And because due diligence is so important, the Franchise Basics series of articles offering essential advice, tips and insights is a valuable part of each edition of the magazine. This year we’re backing this up with a Best Practice section that looks at critical concerns every franchisee will need to address – marketing, financial, working with the franchisor – once operating their franchise. As I write this, the Parliamentary Inquiry into the Operations and Effectiveness of the Franchising Code of Conduct has just delayed the release of its findings. The report is now set for a mid-February deadline. Whatever the recommendations made, there’s no doubt that for franchising 2018 was a tough year. But it’s given the sector’s 1170 brands (or thereabouts) the opportunity to face up to some of the actions that haven’t been favourable to franchisees and to consider how best to take the franchising model into 2019 and beyond. As a significant employer to thousands of staff, a sector that generates about $144bn annually (excluding car dealerships) and a method of empowering individuals to enter business ownership with the opportunity to fulfil their personal and career goals, franchising is a force to be reckoned with. I hope reading this magazine takes you one step closer to committing to a franchise – and to ensuring due diligence is uppermost in your mind. Sarah Stowe

Sar a h Editor

EDITOR

SENIOR ACCOUNT MANAGER

SUB-EDITOR

Marketing & sales co-ordinator

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

Margaret MacNabb

JOURNALIST

Nick Hall P: 02 8224 8355 nickhall@octomedia.com.au

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

Ian Sudjatmiko P: 02 8224 8375 ian.s@octomedia.com.au

GRAPHIC DESIGN

OCTOMedia

L10, 51-57 Pitt St. Sydney NSW 2000 PO Box R217, Royal Exchange, NSW 1225 Ph: +61 2 9901 1800 Fax: +61 2 9251 5957 www.octomedia.com.au FOR SUBSCRIPTION ENQUIRIES CALL customer service: 02 8224 8383 ISSN: 1321-408X

Rozelle Carlos rozelle.c@octomedia.com.au

GENERAL MANAGER

David Strong P: 02 8224 8370 david.strong@octomedia.com.au

Inside Franchise Business is the FCA media partner and official online directory Confirmed distribution of Nov/Dec 2018 issue 6,930 - Print Post 100008121

FEB/APR 2019 | 5 | WWW.FRANCHISEBUSINESS.COM.AU

ALL INSIDE FRANCHISE BUSINESS MATERIAL IS COPYRIGHT. REPRODUCTION IN WHOLE OR IN PART IS NOT ALLOWED WITHOUT WRITTEN PERMISSION FROM THE EDITOR. OPINIONS EXPRESSED IN INSIDE FRANCHISE BUSINESS ARE NOT NECESSARILY THOSE OF INSIDE FRANCHISE BUSINESS OR OCTOMEDIA. © COPYRIGHT OCTOMEDIA, 2016 P R I N T E D BY: B LU ES TA R P R I N T 8 3 D E R BY S T R E E T, S I LV E RWAT E R N SW 212 8 P : 0 2 974 8 3 411

GLOBAL EYE

OPEN FOR BUSINESS New brands, new sites, new appointments...the lowdown on new opportunities in the world of franchising.

NEW ENTRANT

The fastest growing home-care franchise system in North America is set to hit Australia, following the announcement Vancouver-based, Nurse Next Door has secured a master franchisee down under. The latest expansion sees the brand’s inaugural Aussie location open in Melbourne, the first outside of the over 150 franchises now operating throughout Canada and the US. The brand identified Australia as a strong growth opportunity due to the country’s ageing population and reliance on home-care. "Countries around the globe are experiencing the same rapidly growing population of seniors as we are in North America," said Cathy Thorpe, president and CEO of Nurse Next Door. "We're excited to leverage the tremendous success we've had domestically and start impacting the lives of seniors in Australia and across the globe,” she said.

MILESTONES AND MULTIPLIERS

ZEUS TARGETS 30 Fast-casual dining franchise, Zeus Street Greek is returning to its traditional roots as it fires up for a blockbuster 2019. The Aussie brand unveiled expansion plans that will see the Zeus franchise network grow by one third over the next 18 months, targeting 30 sites as the golden number. As the brand gears up for national growth, general manager of Zeus Street Greek, Ramon Castillo reiterated a renewed focus on delighting consumers is critical, revealing the brand has a number of customer-centric initiatives in the The Boiling Crab

Anytime Fitness

innovation pipeline. “We want to get back to traditional beliefs that the customer is a gift, you treat them with respect. Without the processes and the sincerity behind that, we aren’t going to convert people into raving fans.” ANYTIME FITNESS MILESTONE MARK Anytime Fitness hit a significant milestone with the opening of its 500th club in Australia, coinciding with a major update to its studio design. The brand celebrated its 10 year anniversary down under this year, opening an average of one club per week during its time in the country. FEB/APR 2019 | 6 | WWW.FRANCHISEBUSINESS.COM.AU

Chairman and co-founder at Anytime Fitness Australia, Justin McDonell said, “We’re extremely proud to have succeeded in reaching our 500th Anytime Fitness club in Australia. We entered the market back in 2008 with an aim to make fitness more accessible and convenient for as many Australians as possible. "Now, 10 years later, we’ve built a network of 500 clubs and 500,300 members nationwide. We’ll continue to work towards a fitter and healthier Australia as our national footprint continues to expand.” Read more about this gym chain and its sibling brands in the Collective Wellness

Grow your network with Cashflow It Franchise Accreditation Help your franchise partners get the finance they need by becoming a Cashflow It accredited franchise system. Not only does accreditation reduce the challenges of accessing finance, it is also a powerful tool to assist in the growth of your franchise network. While Cashflow It operates with the flexibility of a small business, we have the resources and backing of one of Australia’s largest non-bank finance companies - Thorn Group Ltd, an ASX 200 company with over 80 years’ experience in the finance industry.

Cashflow It has been a key partner for the growth of the Rolld system. Where traditional lenders have rigid requirements, the team at Cashflow It have understood the challenges of a growing franchise system and have been prepared to partner for growth. Ray Esquieres, Co-Founder & CFO, Rolld Australia

Benefits of Accreditation

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Just about any serialised piece of equipment can be funded with Cashflow It as well as some customised assets.

2. Preferred rates of funding 3. Access our full range of finance products 4. Accredited franchise priority service 5. Other exclusive benefits

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Get accredited You’ll be happy to know that Cashflow It Franchise Accreditation is nothing like bank accreditation. It’s a very simple, pain free process. Call us today on 1300 659 676 or visit cashflowit.com.au for further information.

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GLOBAL EYE

Group in our feature on page 18. DOUGHNUT ICON EXPANDS INTERSTATE Iconic Victorian specialty outlet, Walker’s Doughnuts ventured out of Melbourne and into New South Wales for the first time in its 13 year history. With an experienced multi-site franchisee taking on the area development rights for the state, Walker’s Doughnuts has set a goal of at least 15 New South Wales stores. The brand has seen a dramatic increase in store numbers over the last 12 months.

Taco Bell Australia is prepping for further growth, setting sights on 60 new locations. The new restaurants will rival fellow franchise brands Guzman y Gomez and Mad Mex, bringing a new era of consumer choice in the Tex-Mex scene. Expansion is expected to take time however, with the 60-store mark slated for completion by 2024, with franchisor Restaurant Brands New Zealand saying it expects the growth to be funded from internally generated cash flows.

MOVER AND SHAKERS

TACO BELL GROWS SOUTH OF THE BORDER After successful trials in Queensland,

SUMO MERGES WITH THR1VE Healthy fast food chain SumoSalad announced an agreement to merge with Thr1ve, an omnichannel brand focused on functional nutrition solutions. The move is the first step towards the creation of a house of wellness brands according to Sumo founder Luke Baylis. “The combination of SumoSalad and Thr1ve is the first step of what I see as a broader category roll up opportunity. By leveraging Thr1ve's expertise in technology and direct to consumer ecommerce it is the perfect pairing with the power of Sumo's leading brand positioning and awareness, national reach, and deep operational expertise.” SumoSalad will continue with its retail portfolio, introducing wellness cafes as the next iteration of the food franchise and the Thr1ve brand will play a key role in this new concept. Sumo also made its first foray into the grocery market, SumoWell, late last year, which is expected to expand substantially.

DID YOU KNOW?

GETTING SOCIAL

MUFFIN BREAK’S RED CENTRE In December, award-winning franchise, Muffin Break brought its brand of coffee, cakes and customer service to the heart of Australia, launching its first site in Alice Springs. The new, family-owned location marked a significant move for the coffee and casual dining brand, opening the door for further regional development in the Northern Territory. Since 2011, the population of Australia’s cultural heartland has grown by about 15 per cent, buoyed by a healthy tourism trade and a rising migrant demand. For Muffin Break, the Alice Springs expansion capped off a successful year, with the brand awarded the Roy Morgan Coffee Shop of the Year award for the second year in succession.

Most-clicked brands Nov-Jan on franchisebusiness.com.au... 1. 7-Eleven 2. Boost Juice 3. Sporting Globe 4. Jim’s Mowing 5. The Lucky Charm Most-clicked categories Nov-Jan on franchisebusiness.com.au... 1. Coffee 2. Cleaning 3. Fitness & Gyms 4. Aged Care 5. Automotive VISIT FRANCHISEBUSINESS.COM.AU FOR THE LATEST FRANCHISE OPPORTUNITIES ACROSS AUSTRALIA.

AUTOMOTIVE CODE GETS THE GREEN LIGHT The Department of Industry, Innovation and Science called for input from the nation’s car dealers in anticipation of a proposed split from the Franchising Code of Conduct. The government body released a Regulatory Impact Statement (RIS) outlining a number of possible solutions for the tightening relationship strains between car dealers and manufacturers identified by the Australian Competition and Consumer Commission (ACCC) in 2017. While the government has committed to exploring the possibility of an industryspecific code, the RIS indicated that no firm agreement had been reached between car dealer franchisees and car manufacturer franchisors. FORMER ZAMBRERO CEO PARTNERS WITH FITNESS BRAND Stuart Cook, the former head of fast-casual chain Zambrero joined fitness franchise Fitstop Australia as chairman of the board, investing in the business through his company TWIYO Capital. Cook’s timely appointment to the Fitstop executive team not only boosted the business from an operations capacity, but also in terms of social equity. The former Zambrero CEO was instrumental in the success of the franchise’s Plate 4 Plate initiative, which donated one meal to the underprivileged for every burrito sold in Zambrero stores.n

What are you watching? Top three trending Inside Franchise Business videos 1. Cheat’s guide to franchise financials 2. Your franchise agreement cheat sheet 3. How to pick the right franchise for you

LOCATION, LOCATION

A new dining, shopping and entertainment precinct in Sydney’s south has given locals a taste of retail convenience on their doorstep. The South Village development in Kirrawee boasts a series of fresh market options, including a diverse range of franchise outlets, architecturally designed to maximise customer appeal. Meanwhile, the outer suburbs of Brisbane are in for an overhaul with Consolidated Properties Group announcing a $250m shopping hub will anchor its new residential community. One of the state’s biggest developments, The Yeerongpilly Green project will host more than 5000sqm of retail space, comprised of a mix of restaurants, commercial buildings, parkland and a boutique hotel. Construction for the development is expected to start later this year, with additional tenants and operators still to be announced. FEB/APR 2019 | 8 | WWW.FRANCHISEBUSINESS.COM.AU

INSIGHTS

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A NEW

REALITY It may seem like the far-off reaches of science fiction, but as the number of businesses adopting virtual and augmented reality tactics grows, the future of retail may be closer than you think. By Nick Hall

While augmented reality (AR) is by no means a new concept, having functional roots that date back to the early ’90s, retailers and small businesses have traditionally struggled to translate the technology into consumer satisfaction and sales. When AR first broke into the mainstream, it was viewed as a marketing gimmick used primarily for attention-grabbing stunts. However, after decades of impractical adoption, it seems retailers are beginning to realise the potential benefits of the virtual experience. In November, global franchise pizza chain Domino’s unveiled a world first, announcing the launch of New Pizza Chef, an AR application set to revolutionise the customer journey. The app allows Domino’s customers to create their own pizza, and watch it cooking in real time, presenting a new experience for fast-food fans and a first for the QSR community. While you could argue that the New Pizza Chef app is another example of marketing gone mad, the brand’s willingness to let consumers peer behind the curtain from the comfort of their own homes cannot be undervalued. “The development of the New Pizza

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Chef gives customers the ultimate technology by creating a pizza just the way they like it,” Domino’s Group chief marketing officer Allan Collins said. “Making sure each ingredient shown reflects the weight we use in store means that the pizza a customer receives looks the same as the one they created, and that makes for a more satisfied customer.” Domino’s wasn’t the only retailer to realise the potential of augmented reality in 2018, with outdoor specialist Barbeques Galore unveiling its own customer-centric AR app earlier in the year. The BBQ Galore – At Home app enables Australian consumers to view more than 100 of the brand’s products in ultra-realistic detail in situ, comparing sizing, dimensions and design through the use of a drag and drop feature. Luke Naish, Barbeques Galore CEO, said the app had the potential to boost product awareness and streamline buying times, thus emphasising the importance of innovating consumer technology and experience. “Around 70 per cent of our customers begin their journey of exploration and research online, so we really wanted to create something that was informative and enjoyable for the customer,” Naish said. “It’s really about empowering the customer to make a positive buying decision.”

INSIGHTS

FUTURE MARKETS There’s no doubting the influence that internet and e-commerce platforms have had on the retail sector, with studies suggesting innovations such as AR present further opportunities to target youth markets. According to the Global Augmented Reality Market Research Report 2018-2025, the AR market has experienced a steady rise, having now exceeded US$1 billion, with predictions estimating market growth at around 65 per cent compound annual growth rate (CAGR) from 2017 to 2025. Bricks-and-mortar retailers are slowly beginning to roll out AR and VR tools to complement in-store experiences, bridging the gap between physical and digital worlds. For example, clothing retailer Lacoste introduced the LCST Lacoste AR mobile app in April 2016, allowing users to virtually try on shoes, while Seafolly rolled out its interactive fitting room earlier this year. In its Retailer Trends: Vol 2 - A Guide to Virtual and Augmented Reality for Australian Retailers report, Deloitte commented “the integration of immersive technology is about to become the new gold standard for omnichannel retail and brand experiences”. “AR and VR allow customers to make more informed purchases as they visit stores, increasing the buyer conversion rate.” The latest development from Domino’s sees the brand deliver on its promise to provide consumers with the ultimate fast-food experience. Michael Gillespie, Domino’s Group chief digital and technical officer, said the introduction of augmented reality into the retail space represented a significant step forward in streamlining the customer buying journey. “Innovations such as the New Pizza Chef with augmented reality are important as they help us to continue to drive online sales, and with up to two million items sold online in one week, we know it’s important for us to always be making the online ordering experience more seamless, rewarding and memorable for our customers,” Gillespie said. The New Pizza Chef isn’t the first technologically driven innovation that Domino’s has presented to market, with the brand boasting robotic delivery and a first-to-market GPS delivery driver tracker. Domino’s Australia CEO Nick Knight said the company was committed to changing the way people think about fast

food, creating a more comprehensive digital experience. “At Domino’s, we like to think differently and always push the boundaries of what’s possible. This is evident in the rollout of technology such as our popular Live Pizza Tracker, OnTime Cooking and our GPS Driver Tracker technology,” Knight says. “When we decided to create New Pizza Chef with augmented reality, we wanted to create a more enriching experience for our customers. One of the top priorities was to make the images as realistic as possible.” While AR and VR remains in its retail infancy, Jason Bender, Deloitte’s national head of innovation and digital transformation, said that, in time, the results will overtake the hype. “The technology has come from nowhere in this past year, and given the rate of change, will be so much better in a year and two years,” Bender said. “I predict mass adoption of it in the next three years. And it will be cheaper and more accessible – making it easier to make a business case for it at the enterprise level.” While measuring the effectiveness of AR integrations is a major challenge at the moment, collection methods are continuously improving, presenting the opportunity for businesses to dive deep into their data.

FINAL THOUGHTS The retail sector in Australia is in a transformative period, with new market integrations looked at with varying opinions. With the success of AR and VR integration still yet to be determined, Australian businesses are right to be wary. However, Deloitte said retailers that embrace the digital era are better placed to see their bricks-and-mortar stores become destinations, as opposed to outlets. “To ensure VR and AR adoption is an integrated experience for customers, many retailers would need to look at introducing VR or AR as part of an omnichannel approach to improving online offerings, integration and internal systems,” Deloitte said. “The adoption of VR or AR technologies, even in some small areas of your business, can bring immediate benefits and cost savings for retailers and other sectors.” n

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Be the

LEADER OF YOUR OWN SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous. A 7-Eleven franchise is a partnership in success. When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation. From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment. We set up shop for you and give you

full training

We take payroll admin off your hands

and help with the book-keeping

We deal with suppliers to get you the

best products

We manage the fuel

Financials

Contact Details

An initial investment of between $400,000 and $1,000,000 + is what is required to become a 7-Eleven Franchisee, so it’s certainly a big decision to make.

Franchise Development Managers

The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees. 7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits. Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.

We have brands you won’t find anywhere

Brett Reading Queensland

E-Mail: bzr@7eleven.com.au Mobile: 0407 877 674 Peter O’Hara Victoria / Western Australia

E-Mail: pwo@7eleven.com.au Mobile: 0408 175 534 Shayne Boogaard New South Wales

E-Mail: szh@7eleven.com.au Mobile: 0418 136 156

else

We provide advertising and promotional

support

START YOUR SUCCESS STORY TODAY www.7elevenfranchise.com.au

FRANCHISING

THE LIST

BEAN HERITAGE Australians are discerning coffee drinkers and everyone has a favourite barista and brew. It’s a competitive arena for franchises, with a caffeine fix now a standard in food outlets, and some convenience stores and supermarkets joining the throng of hot beverage providers.

F Cafe2U

Cafe2U has 140 mobile coffee vans - 60 per cent of business comes from hot beverages. The minimum investment is $52,000 + GST WHAT'S YOUR COFFEE HERITAGE? Cafe2U started in Sydney’s Northern Beaches in 2000 and has worked closely together with a roasting company to develop our unique blend. WHAT'S THE SECRET TO YOUR COFFEE? Our award winning multi bean blend has

Cibo Espresso

More than 30 stores operate in Australia. Coffee is our core making up more than 65 per cent of our business. It costs from $350,000 to invest in a franchise. WHAT'S YOUR COFFEE HERITAGE? CIBO Espresso is an Italian Espresso Bar born in Adelaide in 2000, with strong Italian heritage bringing a little slice of Italy to Australia. WHAT'S THE SECRET TO YOUR COFFEE? CIBO Espresso’s exclusive blend is dark

Fibonacci Coffee

There are 23 outlets in Australia across three models: kiosk, cafe, cafe bar with investments starting at $140,000, $180,000 and $250,000. For the cafe/bar, 50 per cent could be financed and paid by the business out of cash flow. Coffee accounts for 40-50 per cent of revenue. WHAT'S YOUR COFFEE HERITAGE? We started in 2000 well before the rise of the boutique cafes. Love for people, community and passion about espresso

or some of these franchised brands standing out from the market is all about their strong coffee heritage.

stood the test of time and rivals any main street, fixed location brew. Our blend contains Arabica beans from five different countries (making the blend 100 per cent Arabica), which is becoming less common within the industry. WHERE ARE YOUR COFFEE BEANS ROASTED? Di Bella Coffee.

ROI by providing an improved product range, increasing their profit margin on products by leveraging the power of Retail Food Group purchasing arrangements, and constantly reviewing our equipment and vehicle layout as we look to gain every possible advantage.

BEST TIP FOR BOOSTING FRANCHISEE PROFITABILITY We are looking to improve franchisee

PLANS FOR 2019 Locally, we want to add another 100 franchises in four years, and internationally we are seeking opportunities in countries that lend themselves to the Cafe2U business model.

Italian style roast unique to our business. All our beans are hand roasted in Thebarton South Australia by acclaimed coffee roaster Tony D’Angelo. Best brew? Our traditional CIBO Espresso blend.

PLANS FOR 2019 Deliver quality coffee to more South Australians by adding some key landmark sites to our portfolio, and drive improved product offering and customer experience.

BEST TIP FOR BOOSTING FRANCHISEE PROFITABILITY A collaborative trust relationship between franchisee and franchisor with regular structured business reviews designed to drive business growth and drive business metric performance.

coffee were the driver of our family business. WHAT'S THE SECRET TO YOUR COFFEE? An organic product that changes with the seasons. We continue to explore new blends to find the best fit for our customers ever-changing palate. WHERE ARE YOUR COFFEE BEANS ROASTED? Roasted in the lower north shore in Sydney FEB/APR 2019 | 14 | WWW.FRANCHISEBUSINESS.COM.AU

in a multi-million dollar dedicated roasting facility setting new standards for the industry. Best brew? Cappuccino is the favourite drink among customers. BEST TIP FOR BOOSTING FRANCHISEE PROFITABILITY Focus on your customers. If you love what you do and create vibrant, happy energy, you will attract lots of people who want to be served by you. The profit will roll in from there.

THE LIST

Jamaica Blue

Jamaica Blue operates about 130 sites in Australia. It costs a minimum of $100,000 to $500,000 to buy a franchise. Coffee sales range between 30 and 40 per cent of total sales and vary by state and location. WHAT'S YOUR COFFEE HERITAGE? We are inspired by and named after the Jamaica Blue Mountains, widely regarded as the home of the world’s best coffee. Our signature blend features premium

Jamaica Blue Mountain beans and we also have an exclusive Jamaica Blue Mountain single origin coffee, as well as seasonal single origins. Jamaica Blue has won a string of awards for its coffee including Golden Bean Overall Best Roaster 2017 and ASCA Coffee Chain Challenge in 2017. WHAT'S THE SECRET TO YOUR COFFEE? The secret to our coffee is the beans which

form part of the Jamaica Blue Signature Blend, sourced from six different countries and roasted here in Melbourne. BEST TIP FOR BOOSTING FRANCHISEE PROFITABILITY Strategic and considered growth including exploring café opportunities within hospitals, universities, airports, etc… as well as further enhancing our portfolio within shopping centres.

Muffin Break Muffin Break has more than 200 stores in Australia and 300 worldwide. Minimum investment is $100,000 to $350,000. Coffee is an integral product in our offering and represents approximately 35 per cent of sales. WHAT'S YOUR COFFEE HERITAGE? Muffin Break opened its first site in Coolangatta in 1989 and became one of the first franchise groups to bring high quality espresso to the broader Australian consumer. Our skills and our coffee have

Stellarossa

There are 23 stores with a combination of cafes, kiosks and fully licensed cafe models. In smaller stores the coffee accounts for 70 per cent revenue, down to 40 per cent in the larger outlets. WHAT'S YOUR COFFEE HERITAGE? Correct ageing and fresh roasting so our franchise partners receive the coffee at its peak to provide customers with optimum flavour.

Xpresso Mobile Cafe

Forty three vans operate in the franchise, with a minimum investment of $134,750 ($85,000 can usually be easily equipment financed). Coffee sales equate to 70 per cent of turnover. WHAT'S YOUR COFFEE HERITAGE? We source our coffee through our Crop to Cup green bean buying program. The Crop to Cup philosophy is about building sustainable relationships with coffee-growing communities and empowering them to work with us, rather than for us. The program is

evolved to meet the changing tastes of the Australian palate and won many awards along the way, including the coveted Golden Bean Overall Best Roaster in 2014 and the ASCA Coffee Chain Challenge in 2015. In both 2017 and 2018, Muffin Break was awarded Roy Morgan’s Coffee Shop of the Year award. WHAT'S THE SECRET TO YOUR COFFEE? Carefully selected green beans from five origins, expertly roasted and blended

WHAT'S THE SECRET TO YOUR COFFEE? Currently contract roasted by Di Bella Coffee. MINIMUM INVESTMENT It costs at least $200,000 to purchase a Stellarossa outlet. BEST TIP FOR BOOSTING FRANCHISEE PROFITABILITY? Keeping cost of goods and wages in check

committed to building skills locally, providing job security and growth opportunities for local workers, upholding fair practices as well as encouraging responsible farming. By collaborating with the farmer, we have the unique ability to match raw coffee origins to our blend profiles in order to consistently deliver our signature blends all year round. WHAT'S THE SECRET TO YOUR COFFEE? Consistent and speedily delivered 8/10 coffee.

by our head of coffee and World Barista Championship judge, Jeremy Regan. Great coffee though, forms only part of the equation which is dependent on the right equipment and professionally trained baristas. What’s the best brew? Flat white. BEST TIP FOR BOOSTING FRANCHISEE PROFITABILITY? Muffin Break’s best tip for boosting franchisee profitable is by maximising the customer experience at a store level.

although giving great service and product is essential to client retention. It doesn't matter how much you keep your numbers in check if you haven't got people walking through the door. PLANS FOR 2019 Strong growth after a year of repositioning in 2018. We will open three drive-through outlets in 2019 along with several inline stores already in the pipeline.

BEST TIP FOR BOOSTING FRANCHISEE PROFITABILITY? Maintain a great attitude and bundle food items with each and every hot/cold beverage. Plans for 2019: push through our milestone of 50+ mobile cafes and dominate high positioning with internet search engine results.

FEB/APR 2019 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

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COVER STORY

THE FITNESS MISSION FEB/APR 2019 | 18 | WWW.FRANCHISEBUSINESS.COM.AU

Anytime Fitness has opened an extraordinary 500 clubs in Australia. It’s the flagship brand for the Collective Wellness Group which includes boutique chains Xtend Barre and Orangetheory Fitness. When three of the US founders of these brands landed in Sydney, Inside Franchise Business was there.

t the end of 2018 Anytime Fitness co-founder Chuck Runyon, Andrea Rogers, creator and founder of Xtend Barre, and co-founder and CEO Dave Long of OrangeTheory Fitness were in Australia finding out more about the growth of their business models and how Australians are responding to the innovative fitness options. Inside Franchise Business was lucky enough to meet up with these three powerhouses. There’s no better time to be engaged in the fitness arena with its ever-growing selection of niche workout programs, they suggest. Today’s fitness consumer has a myriad of choices that suit different users and don’t directly compete, says Anytime’s Runyon. “We serve consumers with different needs and different expectations, so as long as you understand who you serve you can provide valuable progress or a connection with the industry or a club, it’s a big industry out there, there’s plenty of room for all of us to be successful, and most importantly we’re on a mission to make Australia, and quite frankly the rest of the globe, healthier.” Orangetheory CEO Dave Long likes the idea of the pick and mix approach that’s possible with today’s fitness diversity. “Consumers have got options and they can a la carte kind of pick and create their own wellness week with a lot of different programs and disciplines serving them,” he says. As Runyon points out, “Two thirds of fitness users have more than one membership in one location so they will likely use Xtend Barre, Orangetheory and mix it up with Anytime Fitness so we’re not really competitive because guess what, the more people working out the better it is for all of us. “In Australia 18 per cent of the population is a member, commercially, of a fitness centre and every time that percentage goes up that’s 240,000 members entering the fitness space. “And over the next decade it’s going to increase maybe to the mid 20s and so we’re going to have like a million and a half, two million entering the fitness space in Australia so I’m telling you, there’s room for far more Orangetheories, Xtend Barres and Anytime Fitness – and future fitness concepts.” As the founder of a booming boutique business former dancer Andrea Rogers points to what’s most important at Xtend Barre. “For us at the core it’s about provoking movement and inspiring confidence. We’re female based primarily and I want women to feel good about moving their bodies. I want them to feel strong about walking into our studios, and I want them Chuck Runyon, Anytime Fitness; Andrea Rogers, Xtend Barre; Dave Long, Orangetheory Fitness.

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COVER STORY

to feel inspired and confident because we all have different goals and that might a weight loss goal, it might be just to get out of my house and communicate with other people in the community. I want to inspire people.” Runyon believes this is a “wonderful innovative period” with the marriage of data and digital technologies with the fitness experience. “I mean I think in the studio sector specifically everyone’s on their game, the environment is designed better, things like the music, all the little touch points and experience are just so much better than they’ve been before, and quite frankly the science and art are coming together, as I said before, there’s never been a better time to be a fitness consumer.” The wealth of options translates to greater choice for potential franchisees searching for a fitness business that suits their needs. There are certain advantages to joining a business that has experience in building a strong fitness profile in Australia and has the tools and systems in place to achieve results for franchisees. But what’s it like as a brand chief based in the US, working with the Collective Wellness Group? Rogers says “For us it was a wonderful opportunity to partner with someone who had the history of growing brands like Anytime Fitness, and working with Orangetheory, it was wonderful to have that infrastructure and that strategy and be able to have a partner that understands what is happening on the ground here.” Runyon adds “Echoing Andrea, market conditions, the mechanics of site selection and territory selection, those are critical. They set up our franchisees for success by doing those types of things, and they’ve done a terrific job of it.” Long values the commitment to the brands from across the team. “They are so engaged and committed to franchisees, and they are all users of our products, their staff, their teams are in our studios and clubs, understanding the product and enjoying it, and I think that goes a long way for the authenticity of what they are doing for the franchisees.” Check out the full video interview on www.franchisebusiness.com.au.

Orangetheory

BRAND FIT

Xtend Barre

ANYTIME FITNESS If you’re a gym user you’ll be well aware of the Anytime Fitness brand, and might think that the extraordinary spread of the gym chain equates to a saturated marketplace. In reality, while the Anytime brand caters for a highly engaged, active population this is a small percentage of adults in Australia. In total, less than 20 per cent of the country’s population is engaged in the fitness market overall. And that means there’s plenty of room to move, says Arthur McColl, CEO of the Collective Wellness Group which is the brand’s Australian master franchisee. Anytime Fitness started trading in Australia six years after the brand launched in the US and last year celebrated a decade of helping keep Aussies fit. So why has it been such a success? Reflecting on the 10 year journey McColl, who joined the business in 2015, says it was all about timing and technology. The 24/7 gym was a brand new concept, and a cost effective option for gym users.

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COVER STORY

Who’s who at Collective Wellness Group?

Chairman Justin McDonell owned his first gym at age 18 and co-founded Anytime Fitness Australia. McDonell is on the board of the industry body, Fitness Australia and is a director of Anytime Fitness in the UK. Co-founder and director Richard Peil has been in fitness for more than 30 years and is an awarded club operator, with clubs varying in size from niche 200 member weight loss facilities to his largest club of over 7,000 members. Co-founder David Mortensen is president and co-founder of Anytime Fitness and Self Esteem Brands. Mortensen and Chuck Runyon revolutionised the fitness industry launching Anytime Fitness as an alternative to big-box gyms. CWG CEO Arthur McColl was appointed CEO of Anytime Fitness in late 2015. McColl has over 30 years’ experience in the health and fitness industry and grew Livingwell Health Clubs from 24 to 86 clubs through new builds and acquisitions.

Anytime Fitness Australia opens its 500th gym. Pictured left to right: Gordon Martin, GM; co-founders Justin McDonell and Richard Peil; Arthur McColl, CEO.

The all-hours access was made more appealing by the development of technology such as CCTV which gave members the comfort of added security. Once a novelty, the convenience factor remains important, even though only 8 per cent of members use the gyms in the midnight to early morning hours. Consumers enjoy the cross-club membership and today 23 per cent of visits are made by members who are signed up to an Anytime Fitness gym in a different location. It is still a low staffing business model with a recurring monthly direct debit revenue and a fixed franchise fee. For a gym owner, the opportunity to leverage the high level of support and branding is invaluable. A global club redesign has just been unveiled by Anytime Fitness and showcases vibrant colours and open design, creating a welcoming and an open friendly environment for members. McColl says “Our new design concept embraces and enhances the favourite features of our existing gyms, identified by our current members, such as top-of-the line equipment, larger free weight areas, and private changing rooms. We’ve focused on creating an environment where members feel empowered, not intimidated, to get over the hurdles of improving their health.” The first club to be fitted out in the new fashion is run by franchisee Matthew Doughty. He says “Our passion is driven by seeing members achieve their fitness goals and feel good about their workouts. The new design is engineered to help us better ‘care, coach and connect’ with our members. "Features such as an open office allow us to better communicate with our members and engage in their experiences. Increased functional training space allows for more flexibility with group training programs to meet the needs of a wide variety of members.”

An Anytime Fitness club will have an average of 1057 members; national membership is more than 500,000.

BOUTIQUE FITNESS Within the Collective Wellness Group each business has a clear identity, and a separate operating team headed up by a general manager focused entirely on boosting the network’s growth and profitability. Of course the advantages of an umbrella group like CWG is access to streamlined shared resources for things like basic franchise training where the topics and processes are comparable across all brands. This is particularly relevant for Orangetheory and Xtend Barre which have similar operating procedures. ORANGETHEORY FITNESS A striking brand design and orange lighting invoke high energy levels and the 60 minute class is all about high intensity based on cardio, rowing and strength stations. Co-founder Dave Long is clear that the brand established in 2010 and now with 1000 global locations has a distinct niche as a fitness option. “It’s heart rate based intensity training so it is an intense workout and everyone is working for their own personal goals. So part of what we talk about with our members is that this isn’t a workout you do every day, two to three times a week is really all you need and then there are plenty of other great programs and places to go on those other days.” Studio classes are small and technology is a vital part of the program: attendees can be monitored by the instructor to ensure they are achieving their optimum workout and will get post-class reports that measure metrics

such as calorie burn. Some existing Anytime franchisees have taken on Orangetheory studios. It’s not a simple addition though points out McColl. “We have to be mindful that it’s a very different proposition,” he says. Not every Anytime franchisee is suitable for Orangetheory. XTEND BARRE Former professional dancer Andrea Rogers combined the high energy of dance with Pilates movements to provide a dynamic full body workout. There are four class options -Barre, Suspend, Stick and Sweat - that appeal to two distinct customer profiles, both female: a 39-45 year old customer, affluent but with a single income, and the 25-35 year old with disposable income. These clients are likely to come with a dance background or to be seeking a higher energy workout than they have achieved with Pilates. For many members the dance-based class reminds them of a childhood joy and is something they can be still passionate about. Most franchisees come from similar backgrounds. At the moment its female dominant membership is a result of programming reined in by simple logistics; Australian GM Kevin Mott is confident diversity will be achieved when the brand develops a two studio space that can encourage men to participate in programs like TRX and Reformer Pilates. Membership is up by 60 per cent and Xtend is working to an 80-100 unit development plan. And with two other brands alongside, there is a pool of enthusiastic franchisees ready to expand into new businesses. “There’s interest from investors in different brands, Anytime franchisees like the idea of diversifying,” says Mott.n

FEB/APR 2019 | 22 | WWW.FRANCHISEBUSINESS.COM.AU

Join a national franchise convenience store system that supports you every step of the way! WHY NIGHTOWL?

SUPPORT

First franchised in 1987, we have never stopped growing and with an exceptionally strong brand presence, we now operate over 75 stores throughout Queensland and New South Wales.

•

YOUR SUCCESS IS OUR SUCCESS

•

If you want continued growth year on year, you’ve come to the right place. You’ll never be left without support. We continually invest in franchisee training, modern marketing methods, advanced technology and systems, profitable supplier relationships, store refurbishment and continued expansion into the convenience market.

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• •

You are supported by a network with over 40 years trading history Your business is boosted with modern marketing via LED screens, Beacon Technology and NightOwl Mobile App You benefit from group buying and marketing power You are given the support of a recognised brand while maintaining flexibility to adapt your stock to suit local demographics You are investing in a proven Return on Investment (ROI) model You benefit from an on-going operations, training and merchandising support

YOU CAN KEEP GROWING NightOwl franchisees can operate a single franchise or multiple franchises within the group – and are given an exclusive territory.

Speak to us about franchise opportunities today

If you don’t have a location, we can help. We use specialist demographic and site analysis to assess an appropriate site for all new NightOwl stores.

Holly Usher Franchise Sales Manager Email: holly.usher@nightowl.com.au Mobile: 0475 980 219

NightOwl Owl Franchises AVA I L A B L E N AT I O N W I D E

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REIMAGINING

OLD FAVOURITES Fast food favourites are striking out for success with new-look stores.

ustralian store design is top of its class, as showcased by three popular food brands taking their outlets to a new high.

OPORTO Oporto has unveiled a fresh take on its Portuguese heritage, revealing a new store design to appeal to millennial customers. The brand new look can be seen at the latest store to open in NSW, at Green Hills Shopping Centre, Maitland. Craig Tozer, Oporto CEO, tells Inside Franchise Business, “We’re constantly

innovating around experience and this is part of that program. It’s our first restaurant in a fast-casual precinct. “We wanted to design a restaurant that would be innovative and meet the needs of millennial customers – and be disruptive at the same time. “The branding we’ve put into the business really stands out – we redesigned our brand architecture. Our customers want to have an experience, so it’s about welcoming them in and showcasing the history of the brand – but in a modern, lively and trendy way." The Green Hills location also heralds a refocusing of store operations and customer service.

“It’s a particularly high-quality, high-end development in fast-casual," says Tozer. “The key elements of the customer journey will stay the same. We don’t expect to put this restaurant everywhere but will use certain flagship stores for a more defined look. “We serve really high-quality food and we want to showcase that food and what made Oporto famous – high-quality food, an open kitchen because we’ve got nothing to hide, and we want to welcome you into the restaurant.” This has led to Oporto making a big call: store team members will be less focused on order taking and more on welcoming customers.

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“It’s a transformational change that is very, very difficult, but less difficult when you’ve started as a family business. It’s like welcoming someone into your home rather than sitting behind PoS. Layouts will change, people will have a meet-and-greet role.” Craveable Brands is investing $2 million over a two-year period to ensure technology can assist with this new focus. Customer service is paramount to the brand, says Tozer, who is proud of awards achieved in the last year, particularly for the Asia-Pacific business, which won global Loyalty magazine’s Best Omnichannel Loyalty Initiative of the Year, and a Salesforce Partner Innovation award for its personalisation and programmatic marketing in partnership with Kalido. “It’s something I’m very passionate about – it’s as important as the palette and the store build,” he says. “This restaurant is the first to redefine this, to enable people to see what the brand was like when it started.” Tozer slates another four or five outlets in this design mould over the next 12 months among its 25 planned store openings. The new look isn't taking over from the standard fitout, however. The more adaptable black-based layout can easily translate into sites across airports, food courts and as drive-throughs, Tozer says. “Our restaurants will all be designed for

specific locations and demographics, but broadly there are elements that will be consistent across the network. We are seeing democratisation of the development process – building something that is fit for each location.”

RED ROOSTER Also at Craveable Brands, family-focused QSR franchise Red Rooster has unveiled two new restaurant designs set to revitalise the brand’s customer experience. The restaurants, located in Craigieburn in Victoria and Mt Ommaney in Brisbane’s outer suburbs, are the first of Red Rooster’s new generation of drive-through boutiques, and feature a modern twist on the iconic branding. Nick Keenan, Red Rooster CEO, tells Inside Franchise Business the restaurants were designed to improve in-store customer experience, while at the same time build on the brand’s commitment to innovating its offering. FEB/APR 2019 | 25 | WWW.FRANCHISEBUSINESS.COM.AU

“The new restaurant designs are about resetting our brand across all the key customer communication touch points and leveraging our wonderful Aussie spirit and heritage in a modern and contemporary way,” Keenan says. “This new physical bricks-and-mortar design is synchronised with our overall creative messaging, and showcases a modern look with a fun and cheeky tone that is uniquely Red Rooster.” The latest redesign sees Red Rooster incorporate state-of-the-art, energy-efficient operational equipment, integrated music systems that automate volume setting, time of day and playlist selection as well as introduce navigational signage that alters the way customers engage with the restaurant. In an innovative move, the two restaurants also feature click-and-collect bays, offering customers a convenient experience for those who engage via online, mobile or e-commerce ordering platforms. The Great Indoors director Lee Hopkinson, who designed the new

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restaurants, says the primary focus of the project had been bringing the brand into the new era. “The general consensus was that the current design was quite dated and needed to progress. Overall, it needed to have an overhaul and feature a design that moved with the brand, and we were able to achieve that through using those brand colours as highlights for both the exterior and interior and improving all customer touchpoints,” Hopkinson says. “In terms of design, we focused on improving the menu experience and menu innovation, creating an environment that was warm and friendly but that still celebrated that red quite confidently. One thing that you’ll notice with all the designs is that a new language has been developed around this idea of “Aussie Legends”. Red Rooster is an iconic brand, and we felt like that needed to be celebrated.” Hopkinson says the redesign signalled a move away from traditional fast food, placing Red Rooster on a new tier of dining experience. “The previous design didn’t allow for multidemographic dine-in options. There was no option for tradies to sit at the windows and families to sit in booths, and when you’re moving towards this fastcasual and food-theatre experience, it’s that offering that needs to be addressed.” While the store designs have shown a marked improvement in customer experience, Keenan acknowledges that it would take some time to refine the core concepts before national rollout could commence. “Once we settle on the key concepts and final brand guidelines, build and design will be rolled out nationally over the next few years,” Keenan says. “We are still testing design concepts, but it certainly won’t be a long testing period. We aim to be thorough and take the learnings and incorporate and implement them nationally.”

CRUST Crust Gourmet Pizza Bar has unveiled its first brand refresh in the franchise’s 17-year history. The latest matte black and brass design furthers Crust’s efforts to capture a new market segment, with the brand redefining its offering to appeal to dine-in consumers in addition to boosting takeaway sales. Sam El Debel, owner of Crust franchises in Surfers Paradise, Broadbeach and Coolangatta, is behind the latest Nerang opening. He says he believes the new look would inject more personality into the brand. “We want our customers to feel like they are stepping into their own modern local pizzeria, and the new-look brand will help us do that. Part of it is also encouraging our store managers to run the new-look stores with pride, like they are serving food to their own extended family in their own upmarket restaurants,” El Debel says . “What I say to all my staff is take the time to have conversations with customers, try to ask questions and understand what they really want. The golden rule for me is building customer loyalty, and if you make the effort for them personally, they’ll come back.” The renewed focus on local community and the brand refresh mark a significant step in humanising the business, which Renee North, general manager of Crust believes is pivotal to future-proofing the franchise brand. “This brand refresh is projecting an image that is fully differentiated within the traditional QSR space, and that’s really exciting for our customers,” North says. “We’ve been working with franchise owners like Sam to create a brand which reflects our premium-restaurant-inspired menu. It’s also about future-proofing the brand image so it’s appealing, contemporary and relevant – not just for today’s customers, but into the future,” she adds. n

FEB/APR 2019 | 26 | WWW.FRANCHISEBUSINESS.COM.AU

JOIN THE SHACK FamilY The Local Shack is a relaxed dining experience. All Local Shacks are fully licensed with a menu catering for all day breakfast, lunch and dinner. We have memorable childhood games on each table, such as Guess Who, Jenga and Connect Four - to bring back quality time with families. The unique fitout sets it apart from all other franchises in Australia. The comfortable surroundings ensure the guests feel like its their local every time. Each Staff member plays an important role in The Local Shack - with a structured approach delivering quality food, drinks and amazing table service.

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WHY ONE CELEBRITY CHEF HAS PUT AUSTRALIA ON THE MENU Superstar chef Marco Pierre White is franchising his restaurants in Australia and shares his tips for success. By Sarah Stowe

aster Chef celebrity Marco Pierre White and his business partner Nick Taplin have signed a deal with UAE-based RMAL Hospitality to form Black and White International. The Black and White Hospitality business launched in 2013 and has since rolled out 50 restaurants in the UK.

The new business will focus on building the celebrity chef’s restaurant brands across the Asia-Pacific region. Hotel chains are likely partners. Seven brands sit within the portfolio: • Marco Pierre White Steakhouse Bar & Grill • New York Italian • Bardolino Pizzeria Bellini & Espresso Bar • Wheelers of St James Oyster Bar & Grill Room • Marconi Coffee & Juice Bar • Mr White’s English Chophouse • Koffmann and Mr White’s English French Brasserie White expects to see Koffmann and Mr White’s, Mr White’s English Chophouse and the Marco Pierre White Steakhouse taking up residence in Australia, although he won’t reveal where the first venue will be, or when.

Speaking to Inside Franchise Business from London, White was full of praise for Australia’s dining scene. “Aussies love their food. I’ve watched the standard rise over the last 10 to 15 years. Every year restaurants raise the bar, getting better and better,” he said “What Australians are really clever about, they do middle-market really well. The concept of food is very technical and serious, very understated, very casual. It’s really good food without the pretence.”

WHAT DOES IT TAKE TO GET A FOOD FRANCHISE RIGHT? While individual franchisees won’t be getting a chance at investing into the brands, there are some top-level tips that can help any franchisee choose the right hospitality brand. Whatever the market, there are crucial ingredients to serving up a highly reputable and successful food retail business. White insists there are five steps to success: 1. An understanding of the market and demographics 2. A business with good infrastructure 3. A franchisor who invests in the

business and staff 4. The ability to provide customers with a good experience 5. The right people leading the business White says a good meal is all about the experience. “I travel the world a lot, I notice we’re all the same. We go out to have fun with the people we love. We’re selling a night out, not just a plate of food. When we ask for the bill, we quietly say to ourselves, does that represent value?” A restaurant has to be fun, deliver not just service with a smile but kindness, and of course food at a good price, he suggests. And so that’s what Australians expect from a Marco Pierre White dining experience. “We don’t want to dictate to people – it’s their evening out. It’s about the customer. If you want to go out tonight and have something very simple, you can drop in and have something like a steak. Next time you might buy a bottle of champagne. You can make it as inexpensive or expensive as you like. “It’s always affordable glamor without the intimidation. That’s what I like, that’s what people want – we don’t always want three courses. It’s about the customer. And they dictate their evening,” he says. n

FEB/APR 2019 | 28 | WWW.FRANCHISEBUSINESS.COM.AU

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If you love numbers and want to work for yourself, a Shoebox franchise could be a great opportunity.

usy tradies and small business owners can be so focused on delivering a good service to their customers they barely have time to keep paperwork on track. And that’s when the Shoebox bookkeeping business steps in to help, translating the box stuffed full of receipts into up-to-date accounts using Quickbooks, MYOB or XERO.

Thanks to an expanding network of franchisees, this mobile bookkeeping option with low, fixed fees eases the financial burden for many business owners who need help with business activity statements (BAS) or tax. There are now plans afoot to release extra services through Shoebox Advisory. Founding director Yvette Coad says, “Our philosophy is ‘empowering business owners to realise their business dreams’, so our plan with Advisory is to assist small to medium businesses throughout their journey by answering any questions they might have and providing helpful tips and information where relevant. “We are currently trialling Shoebox Business Basics webinars to help educate small business owners on the business hacks that we have learned during our own business journeys.” The business began franchising in 2012, and since then the average annual growth of the Shoebox brand has been 61 per cent. And there is no sign of a slowdown. Coad is confident this year is going to be big for the bookkeeping business, which hit the major milestone of the 50th franchise in its network late in 2018.

“Our expansion plans include a further 15 outlets across Australia in 2019. Our overall growth has increased by 51.7 per cent from 2017 to 2018 year on year. In 2018, we introduced 13 new territories – four of those territories were to existing franchise owners. Two of our franchise owners on the Sunshine Coast have teamed up to secure the last remaining territory there, making it our first super territory,” she says. “Our ideal franchisee candidate is trustworthy, enjoys helping people and although they don’t necessarily need bookkeeping experience they should enjoy working with numbers. This candidate has a drive to succeed with fantastic organisational and communication skills.” What’s important for Shoebox is whether or not a potential franchisee will fit the culture. It’s a business based on values of honesty, integrity and trust, embracing empowerment with accountability, bringing a passion to business ownership and delivering a personal service. Franchisees need to make an impact, says Coad. In return, they will be supported by a six-month training course on bookkeeping, with two days devoted to understanding initial client meetings, marketing tools and a system that puts clients on a monthly plan so cashflow is easy to manage. The nature of the business appeals particularly to women who have childcare commitments and can combine the discipline of working from home alone with being a team player. n

FEB/APR 2019 | 30 | WWW.FRANCHISEBUSINESS.COM.AU

you deserve to join a growing industry Established in 1996, Australian Skin Clinics has now expanded to nearly 50 clinics nationally, due to client demand. We are leaders in highly effective laser and skin treatments, cosmetic injectables, acne programs and skin care products. Australian Skin Clinics has developed The Advanced Skills Academy (TASA) to provide full training and development for all franchisees. If you are new to the industry, you can be assured that by the time you open your clinic, you will be equipped in all areas of management including recruitment, marketing, medical requirements, legal, systems, procedures, protocols; all supported by a Medical Director and in-field teams.

franchise benefits Nationally recognised brand Turnkey operation Ongoing training and development In-field support from business development managers and training teams

Custom IT systems and online sales and support Advanced medical support 7 days a week with a Medical Director Multi-channelled centralised marketing support Latest treatment technology

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australianskinclinics.com.au/franchise

Join the fastest growing sector in retail!

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GENERATION GAMES Family fortunes are closely linked in these four real life franchisee tales. FEB/APR 2019 | 32 | WWW.FRANCHISEBUSINESS.COM.AU

RED ROOSTER TIM HUMPHREYS 3 GENERATIONS

hree generations of the Humphreys family are embracing the best of Red Rooster. Queensland franchisee Tim takes up the story… “Mum works full time, Dad works at Bribie Island full time. Our eldest son is 14 and he’s just started at the Narangba store. He works a couple of hours and every week is putting away half his wages. Our other son is chewing at the bit to get in – he likes to be there for a day in the holidays.”

The youngest generation is taking inspiration from Tim’s example – by the age of 18 he was already the manager of a Lenard’s store. He moved to the bigger network of Red Rooster stores, notched up experience as district manager, married at a young age and had a family on the way. Buying a Red Rooster outlet made perfect sense. “It was familiar, nothing was hidden. I bought a store I had opened and managed. The biggest thing I could see for growth was delivery. When the Red Rooster business was purchased by the Archer Group I could see great things.” Tim’s confidence was countered by natural anxiety about the size of his investment in the brand. “I had three kids and it was a big investment, I was only 28. It was a bit daunting and I was scared of the borrowing potential. But I was super excited to get into it.” Suddenly everything Tim had worked so hard for was on the line, and he took drastic action. “I did a lot of hours. I was so nervous about the loan, so I did some big hours in the store. I enjoyed being back in the store after I had been district manager, and spending quality time coaching. I like to keep my finger on the pulse.” Now in control of his future, and his very own business, Tim turned to family for extra support. And not just afterhours problem solving, he wanted his parents right there with him. “Mum worked at Lifeline for 12 years – I asked Mum if she wanted to work full time in the business. Mum and Dad have a great work ethic, I don’t believe we’ve

had an issue. They take it a bit personal about getting it right so it’s gelled quite well. Dad has been a truck driver – this was a big change for him.” There’s no doubt that working with a different generation brought its own challenges and required a lot of discussion. The benefits are obvious to Tim, though. “Their heart is in it almost as much as yours – they have your back if you’re not there. It’s a relief to know they are there. You can believe them. They come up with great ideas, as do the staff, which I encourage.” Tim has learned through management courses and experience the vital role empowered staff can play, and he’s adamant that it is crucial to keep staff informed about processes, financial costs and how small actions have an impact on the overall business. “We generally ran above average, up about 20 per cent on the previous year, the year before about 15 per cent. I was spending a lot of time in business getting it right. I’m a big believer in local store marketing.” The success of the first store allowed him to buy a second outlet. This proved a significant challenge, despite his experience. “It was very hard, I put a lot of hours into the Bribie Island store. We had huge growth within the business, but all the percentages stayed the same. I spent the first four years reducing debt and now I am back where I was, so even though it’s great to get a second store it takes you back to the beginning financially. But it’s long term, and we will probably want up to five stores.” The key to success is twofold, he suggests: great employees and a nice home environment will bring in great results. “The biggest thing is having your home life right. I have to put a lot of time and effort into work, so I have to make time with family. I have a very supportive wife, we had our kids young, bought our first house young, learned about resilience, love each other, have fun, and are agile in business. We’ve learned a lot of lessons.” FEB/APR 2019 | 33 | WWW.FRANCHISEBUSINESS.COM.AU

“

Their heart is in it almost as much as yours – they have your back if you’re not there. It’s a relief to know they are there. You can believe them. They come up with great ideas, as do the staff, which I encourage.

LEADERSHIP

“

I did want to have a second salon but was always concerned that I would end up with two average salons rather than one exceptional one

ELLA BACHE

ANGELA, GEORGIA, ALEXANDRA MOTHERS AND DAUGHTERS

ngela Andriopolous is living proof that working with family can be a dream. Endlessly passionate about the Ella Bache beauty salon brand, she has imbued her two daughters with a similar dedication. She set up a salon in Glenbrook, in Sydney’s Blue Mountains, and is still running the business almost 24 years later. As a working mum, Angela built up the business to a point where she is now able to work three days a week, thanks to a great staff. And along the way she has recruited both daughters into the salon business. While neither Georgia nor Alexandra had an ambition to join their mother at work, they have become equally enthusiastic about the business and opportunities for growth. Georgia forged the way, leaving school in year 11 to follow in her mum’s footsteps and take up an apprenticeship in the salon. A proud mother and boss, Angela was thrilled when Georgia was awarded the Ella Bache therapist of the year title for 2018. “She’s grown up with the products, she’s passionate and so it’s easy to

recommend to clients. She’s an incredible therapist. She thrives on working in this environment,” says Angela. Despite their similarities, the pair have different skill sets, with Georgia happily inhabiting the social media world and encouraging her mother to delve more deeply into using these channels to engage and communicate with clients. Add 18-year-old Alexandra into the mix and there are some other different talents on show, adding to the strength of the business. Like her elder sister, Alexandra had no intention at school of joining the beauty industry – her interest lay in early childcare. But the lure of extra funds to bolster a student lifestyle took her to the salon. She discovered an aptitude for sales and is now the full-time receptionist. Angela says, “Alexandra helps motivate the other therapists with what they are selling. She has great skills, and she is happy recommending products.” Their interest in developing the business with new services helps formulate the salon’s strategy, says Angela. “They see what the salon takes, how we are buying products, the costs, and we

are all quite driven to make it a profitable business to keep everyone on staff.” Working with family can be a challenge. Aside from any personal tensions, there can be a fraught working environment with other team members. Fortunately Angela has handled any minor concerns in a very direct way: “You can’t play favourites,” she says. For her, there really are no negatives to having her daughters involved so deeply in her business. “We don’t argue. We drive to work together, we live together… but we do have different days off,” she says. “We’re very close, we all go on holiday together as a family.” While she admits to thriving on the energy she gets from running her business, this franchisee is now ready to move on to the next stage of her life now. “I did want to have a second salon but was always concerned that I would end up with two average salons rather than one exceptional one.” Instead, she is selling this wellestablished Blue Mountains salon and will set up a new Ella Bache salon closer to her new home, nearer the Southern Highlands. This development is an opportunity to ease herself slowly out of the business. “I’m looking at handing it over to my daughters. I’ll drive it to begin with, then back down, work more in reception, bookings and sales, and work my way out.” Angela admits it will be very hard to let go of the Glenbrook salon when it is sold. There’s no doubting her confidence that the new site will be a success, with her daughters very much part of the salon’s future. “I know the way we are, and how passionate we are – it will be great.”

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l We’re franchising l • • •

Low entry costs & on-going fees Store build entry costs of c. $220,000 - $280,000 ex GST 3 week training programme

Interested? now is the time to apply! For more information on becoming a Gelatissimo franchise owner contact (02) 8845 0100, email franchise@gelatissimo.com.au or visit www. gelatissimo.com.au/franchising

Congratulations to our newest Franchisees Michelle & Terry from Gelatissimo Wollongong

LEADERSHIP

SNAP ON

GRAHAM AND JOSH FATHER AND SON

raham knew the Snap On brand as a mechanic. So when he was ready to take on a new challenge in his late 40s he turned to what he knew best.

“A Snap On franchisee suggested it. I was getting a bit older and thinking about what I want to do. I thought, there’s only way to find out. I’ve been in just over eight years.” This August, he took on a second territory with one of his two sons. “He was helping out in the truck as an assistant and the other territory came up. Snap On approached us.” In his early 20s Josh was “pretty keen” to take on the challenge. “We operate independently as franchisees. He runs one truck, and I run the other. They neighbour each other. “I’ve shown him what I’ve learned over time. He does his own things at times, which seems to work. You have to try new things.” The inter-generational experience highlights the strengths that each can bring to the business. “I’ve learned a lot about IT. He’s not from a mechanical background at all and he sells to customers that I couldn’t really sell to. It could be personality- or age-related, most mechanics are a lot

younger than me. “I think our strength is building relationships with customers. I wouldn’t call myself a salesman, and he’s not either, but he can relate to the customer. Sales come from building relationships.” Graham says handing over the knowledge from one generation to another can sometimes take more time than he expects. He’s thrilled, though, with how his son is forging his own path. “In our business, there is a lot to learn and he’s going on leaps and bounds – I’m pretty proud of him.” After a hard day at work, the pair head home together. There’s a trick, though, to keeping their family life and business life as separate as possible. Graham chose to keep his truck in a shared shed with four other truck owners, and that keeps the business at arm’s length after hours. “Sometimes you’ll remember things at night. We try and do all the work here, and then go home, and leave it at work. Most of our franchisees take their trucks home and you tend to think at 8pm, oh, I’ll do that – and you’re still there at midnight. Instead, I write a note to myself.” He’s clear that relationship building and product knowledge trounce admin duties, so he ensures that an accountant takes on

the bigger tasks. “I don’t want to do BAS – that’s not my job,” he says. The 55-year-old says he wished he had taken the step to business ownership earlier. “I enjoy it. It’s good. I’m out and about talking to different people – you never stop learning.” The father and son are directors of the overarching company with the relevant responsibilities, and Graham is insistent that Josh steps up to the role. For Graham being hands-on has been brilliant, but he’s ready to take a more strategic role. “I’m hoping to put an assistant on in early new year. I want to oversee the two trucks rather than work one, so I can help out wherever I can.” He has his eye on fixing up a house by the river in his spare time. “You have to be careful about letting the business go though,” he says. “You have to try and keep your finger on the pulse a bit. I’d want to do a couple of hours doing this. Once it’s up and running smoothly I want to pull back and Josh can start overseeing things.” Expansion is on the cards already, with a third territory a long-term goal.

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LEADERSHIP

ZARRAFFA'S COFFEE

DANIELLE AND TRACEY MOTHER AND DAUGHTER

orking with her mum was nothing new for franchisee Danielle Cook.

“We both worked for Rebel Group and Amart, and I was a store manager at Brisbane city stores and Mum was a department manager. I’d been with the group for nearly 10 years and I was looking for something a bit different. I wanted my own business.” Danielle looked at a few different franchise models, but Zarraffa’s coffee and the support network provided won over the pair. “We spoke to other franchisees at the time. Mum frequented one cafe, and we would talk to a couple of franchisees – they were great advocates. We loved how Zarraffa’s had a family-oriented culture inset in values which aligned with our own.” Danielle expressed interest in opening a franchise, and ended up with an option in Warwick, not Brisbane. That meant relocating, but for the two women it was going home to a town with family history. “Mum’s sixth generation here,” says Danielle. “It was uncanny. The site was really good, in a fantastic location, and both of us were wanting a change in our lives.” The pair signed up in 2010 and opened the doors in 2011. “We’re both living in Warwick now. I love it, wouldn’t move back to Brisbane in a hurry. I love the quiet community – there’s a different culture, it’s a friendly town. I think that was evident after we

had a break-in when we’d been open just a few months. We had fantastic support from local community – people sending us flowers and checking in on us.” They have been running the business for seven years and have ambitions to grow further, but expansion within a small town has its limitations. The Coffee Club has opened up, and there are a host of boutique coffee houses, but the drive-through remains a specialty. So the focus for Danielle and Tracey is to give back to the local community through sponsorship of sporting groups and charities, to try and be the number one coffee brand. Danielle says the staff in this drivethrough are like family, which when moving to a new town (even though they had connections there) proved invaluable and was “second to none” in helping the pair transition. “We’ve had a lot of challenges but we very rarely disagree.” The difficulties include serious illness in the family, with Tracey taking on a full-time carer role for six months. That took her out of the store and inevitably shifted the load heavily onto Danielle. The situation has eased now, but she admits the health scare presented a massive challenge. “When things like this happen, you get a slap on the face to know what’s important. Business is – but family is more important, so I had to step up and run the business so Mum didn’t have to worry. “We’re also trying to step back a bit. FEB/APR 2019 | 38 | WWW.FRANCHISEBUSINESS.COM.AU

We’re both very much in the business and work long hours and big weeks.” The pair are establishing a strong team of staff members who can meet the challenge of operating the cafe without either of the franchisees around and allow them to take a well-deserved holiday. Their previous experience of working together has served them well now they are joint franchisees, and the natural family bond overrides any external challenges. “I think it’s because Mum knows me better than anyone she knows when something is not right – she’s very protective. I know if I’m struggling she’ll step up. “Mum’s my best mate, I know that she has my back regardless of what happens,” reveals Danielle. “We complement each other: Mum’s a bit more gung ho, she’s very open, tells people what she’s thinking. “I’m more reserved, I do the bookkeeping, I make coffees. She’s the brand ambassador.” I’m very much at the forefront of things but sometimes I spread myself too thin. “I’m front and centre as the barista and doing the bookkeeping; Mum takes care of food sales and food prep. “We have an equal share in the business, and I think we’re very similar in what we want. We don’t expect to be millionaires, we just want to be comfortable, to cover our own bills and enjoy what we do.”

LEADERSHIP Hogsbreath Rockingham

HOGGING THE LIMELIGHT

One franchisee couple is forging ahead at full speed in a hospitality business, not just taking advantage of opportunities but spearheading new initiatives to generate extra income streams.

lenn and Kelly Sell run a Hogsbreath outlet in Rockingham, WA, and in November 2018 were named the Franchisee of the Year at the company conference in Bali. “We were chuffed to bits,” says Glenn. And no wonder. Glenn has snapped up an all-expenses-paid trip to the Disney Institute to further develop his service skills and knowledge. The couple are clearly exceptional performers in two of the criteria for Franchisee of the Year – willingness to move into new systems, and the ability to adapt to change and improve methods of operation. Glenn has been involved with Hogsbreath since 2009 when he was the manager of the Rockingham store. He was such a good operator that in 2012

he took out the Hogsbreath Manager of the Year award. Glenn bought into the business a year later and found himself running the whole operation. It caused some friction with his former boss, and in 2014 the Sells had fully acquired the store. While he admits the transition to franchisee was a little difficult, there were few surprises about the business. The big challenges were economic changes outside of his control. “I bought the business at top of its game and the economy was good then, but it ground to a halt. We had a decline in sales and that’s when I spoke to Ross (Worth, the franchisor) about doing a food truck.” The idea to create an opportunity for the business in tough times marked the beginning of Glenn and Kelly initiating a stream of fresh ideas.

“I wanted to do more, but under the Hogs umbrella. It’s an important thing to learn and not just under the four walls of the store. I still see franchisees who don’t look beyond the four walls. It’s important to try and get out there and do other things,” Glenn says. He believes a constant agitation for new business is good for the franchise chain, and the franchisor too. “We have to keep him on his toes,” he says. Glenn is adamant that franchisees cannot sit back and wait for great ideas to emerge from head office. “You can’t rely on the franchisor to always come up with the things. Technology is moving at a massive pace. That’s how franchising grows: you have good ideas, bad ideas and learn from the system. Ross allows us to do that.” Glenn reveals that he lets the franchisor know what he’s thinking of

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Glenn and Kelly Sell

doing, and sometimes it’s an idea that Hogsbreath will jump at. The mobile truck was one concept that became a joint project; Glenn was put on the corporate payroll to help the hospitality chain realise his idea. It became a travelling success, attending kids baseball clubs, sporting events – even the Adele concert in Perth. By this point, Glenn had learned the flow of the food order to delivery was the most challenging aspect of successfully operating a food truck. “At this, we had Ross on the friers, another executive Paul Piers on the grill, my wife, me, my daughter and one other person serving. It was three hours of madness.” Glenn and Kelly had really hit the straps. Next up was the Paul McCartney show, R&B Friday, and the WA Perth Motorplex speedway drag racing. Delivering the goods at the auto event led to the couple being asked to manage the food trucks – and the 15 food outlets in the complex. “We own the food rights to every single event there,” Glenn explains. Hot dogs and burgers are branded as Funky Mexicans (a Hogsbreath brand), a couple of outlets will bear the Hogsbreath logo, doughnut and ice cream outlets with Freak Shakes and ice-creams will be given the Hog treatment. Even the bar will rebadge. While some franchisees might consider they had enough on their plate, not these two. And so tendering for the three food outlets at the Optus Stadium seemed like a good idea.

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Glenn has found the power of the brand helps his cause, and once there is an established connection with venues they are happy to negotiate. And while independent gourmet mobile trucks are popular, venues prefer to deal with a franchise for its established name and reputation. In the process of expanding operations outside the bricks-andmortar store, Glenn has made a lot of connections, particularly through the Chamber of Commerce. “I was very negative about networking but it worked for me. I won businessperson of the year in Rockingham in 2017,” he reveals. While Kelly manages the other brand in the couple’s portfolio, Funky Mexican, their focus is still on developing the food truck model. Glenn’s goal is to install a computer system within the truck so festival goers can order online and then pick up. He won’t be standing still though in 2019. There could be another brand opportunity within the group, and naturally Glenn is ready to take it on. “It’s all about experience … How can we be different in a food truck? We need to take it into whatever we do.” Developing new ideas is about mindset. “I have nothing to lose, and everything to gain,” says Glenn. “If you’re confident in the power of the brand, and what it can bring to the table – “We’re Hogs, what can you do for me?” why not? Choose something that fits, and go hard.” n

1899 1979 OPENED IN

FRANCHISED SINCE

Printing Since 1899 . At Snap, we’ve been in the printing business for over 100 years We’ve seen a lot of changes since then, and today we’re known for the business solutions that we provide our clients, across print, design and websites.

100% Australian Owned & Operated We’re proudly Australian and always have been From the day we opened our first print shop in Perth, to today where we have over +140 Snap Centres located across Australia, we’ve always been a family-run business invested in building relationships and supporting our local communities.

Prioritise Your Lifestyle We Believe in Having Weekends Off At Snap, we work to live, not the other way around. We work when our clients work in order to support their businesses, which means we work Monday - Friday and keep our weekends free to spend time with our friends and family.

Franchise Opportunities Available Now If you want to learn more about becoming part of the Snap team, we’d love to hear from you!

franchiseenquiries@snap.com.au 1300 810 233

LEADERSHIP

FRESH START WITH An accomplished franchisee couple takes on a new brand.

easoned franchisees Jim and Linda Ainsworth head up the Mad Mex team in Albury, NSW. While they are just one year into running this fast food favourite, the pair have notched up almost 30 years with brands such as Subway and Healthy Life. HOW DID YOU GET INTO FRANCHISING IN THE FIRST PLACE? We’ve always wanted to own our own business. Franchising is a great way to own your own business while having the support of an established brand and network. WHY DID YOU CHOOSE THE SUBWAY BRAND TO BEGIN A RESTAURANT FRANCHISE WITH? We started with Subway in the early 2000s. We saw Subway as an emerging brand that really fitted with our values and healthy lifestyle. Recently, we felt the Mad Mex brand values amplified the fresh and healthy ethos and so joining the Mad Mex family was a no-brainer. Our initial goal was to own and operate two Subway restaurants. We still laugh about that because we readjusted our goals a number of times as opportunities were presented. Before we knew it, we had eight restaurants! WHAT LESSONS HAVE YOU LEARNED FROM THE MULTI-UNIT EXPERIENCE? Don’t expand too quickly ... easy to say now, but looking back we weren’t properly prepared. I describe it as "growing pains". You need experienced people and at the time we didn’t have the critical numbers we needed. Sure, we got the restaurants opened and operating but it probably took another 12 months to have them operating efficiently. Also, think and plan big from the start; put the systems in place that will allow you to expand and operate more than one store. These are lessons we’ve learned and are hoping to implement at Mad Mex.

WHAT HAVE BEEN THE KEYS TO WORKING TOGETHER? Communication and trust are important in any business partnership and they have always been incredibly important for us. Fortunately, we both share the same values and are prepared to do the hard work. WHAT WAS THE CATALYST FOR THE CHANGE AFTER ALL THIS TIME TO THE MAD MEX BRAND? The market is always changing and often very quickly. We recognised that and felt we needed to think about change. Also, I had another franchisee knocking on my door to buy my Subway stores, so we took the opportunity. Looking around we believed the Mad Mex brand values were very much in line with ours. We have always wanted to offer fresh, healthy food to customers and we saw that Mad Mex provided this option. All food is prepared daily, including our guacamole and pico de gallo. The key to any business, I believe, is quality and we like that Mad Mex has a truly great product. WHAT GOALS HAVE YOU SET FOR THE NEW VENTURE? Our main goal was to establish Mad Mex in a competitive marketplace. It isn’t easy to build any new business, and it takes time and effort. Now, having reached the one-year milestone, we are beginning to see the rewards. To do this, we also needed great people. Our current crew have become very much like family as Linda and I work with them side by side every day and get to know them personally. For some, it’s their first real workplace so we are happy to provide that opportunity and enable them to be valued members of our team. HOW DOES HEALTHY LIFE FIT INTO ALL THIS? Mad Mex and Healthy Life share a lot in terms of values. Healthy Life is where we started – health and wellbeing is what caught our interest – so to be able to

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incorporate our work with our personal interests was a real bonus. We thoroughly enjoyed being in a business that offered value to the community. As our first business some 30 years ago we believed that going with a brand that could assist and guide us would be beneficial. Healthy Life at the time wasn’t a huge brand but fortunately had some great people and, looking back, we probably owe them a lot. This new store with Mad Mex and our current team feels a lot like starting back then, and we’re looking forward to growing with the brand. HOW HAVE YOU MANAGED YOUR TIME SO YOU CAN BE INVOLVED IN THE COMMUNITY? Our local community has been great supporting us throughout the years, so we make sure to make time to give back. We have provided sponsorship and ongoing support to many different groups. I’m fortunate to have a business partner I can trust, which has allowed me at times to be actively involved in local sporting groups. WHAT HAVE BEEN THE BIGGEST CHALLENGES AND BENEFITS OF BEING A FRANCHISEE? Clearly the benefits have been the support and expertise provided by the franchisor. The team at Mad Mex have been very approachable and accessible. We recently attended the annual Mad Mex conference, which provided insight as to how the stakeholders, especially franchisees, are really feeling. It was the first time I had met many and it was welcoming, relaxed and friendly. There is a real benefit in everybody working together. As regards challenges, all franchisees will tell you that you have a lot of rules to follow, and some people don’t cope with this. I do believe that if you are going to invest in a franchise use their expertise and stick with the plan, there is little benefit in trying to change something that already works. n

LEADERSHIP

A LASER FOCUS ON HER FUTURE Beauty is more than skin deep, and no one knows this more than mum of three, manager to 24 staff and franchisee of two medi-aesthetic clinics, Kerry-Ann Sirovs.

hen she started out as a makeup artist in 1988, KerryAnn had no idea where her career was taking her, but she knew she had a passion for skin, education and great customer service. “Once I started my journey in skin I knew I was never looking back.” Many women she was working with in her makeup career wanted better skin, she says. “Creams and potions can only do so much. I was interested in what we can do to strengthen skin – for women to be the best version of themselves. This whole industry is, hopefully, about women feeling good about themselves.” Kerry-Ann notched up experience in a number of cosmetic clinics as a beauty therapist before landing a role as a laser technician with Australian Skin Clinics. “I’d been in the beauty industry since I was 23 and I kept upskilling. I’m still learning, it truly doesn’t stop.” What Kerry-Ann loved about the Australian Skin Clinics business was the move to make laser treatments affordable and acceptable, to take it out of the realm of “secret women’s business”. “I liked the concept that this should be for everybody,” she says. And now she is fulfilling her ambition to grow a business. After working in Australian Skin Clinics as a trainer, she signed up as a franchisee and opened the Westfield Helensvale site in 2011. “The biggest thing for me is that I really wanted to leave a positive footprint, and I really wanted to grow a business,” says Kerry-Ann. After owning and running this clinic for more than seven years, she grabbed the opportunity to add a second clinic in Loganholme, situated between Brisbane

and the Gold Coast. “As well as learning something new every day, the most exciting part of owning a business is watching your business grow to the point where you can start thinking about where to go next,” she says. “I was approached by the master franchisee, we investigated the area and found there was a really big gap for the business. It’s one of those areas that will become very populated, and I’d like to have a really good footprint before that happens.” That’s as much about trust and reputation as it is about opening a further clinic. Already customers are prepared to travel for the service and discretion that Kerry-Ann provides. “Clients fly from Papua New Guinea or come up from Sydney, and we have some A-list clients in sporting fields. I stay back and help them out after hours.” Taking on the second clinic proved a challenge of timing because the Helensvale manager was on a five-week holiday. But Kerry-Ann was excited to revive the brand’s presence in the area. “I was lucky to open the clinic nearly two years ago, and I had a bit of history with it as a trainer. But you could see then a few things weren’t being done. It unravelled and the clinic had closed. I wanted to get it up and running, and I ran it the same way as I ran Helensvale.” So the first six weeks of the new business proved stressful, but Kerry-Ann knew what would get her through. A crucial element of a well-operated clinic is having the right skill set, and nurturing team members, she says. “We had a lot of team bonding and huddles, and a lot of training prior to opening, but we were ready to go, and quite confident.” Another bonus was having her son

Hudson on board. “Clients were a bit surprised to hear his voice on the phone, but now there’s a few men working within the clinic, and the clients like that.” Four months into running two clinics and Kerry-Ann loves it: she has two new staff members and is actively networking in the community to further develop the brand. “I’m imprinting into the local businesses, setting up meetings, working with gyms and bridal shops to cross-sell. It’s nice to meet other business owners from different backgrounds and cultures. “As a busy mum and someone who likes to be very involved in the business, I’ve had to learn how to share my passion while trusting my team to manage the day-to-day, to ensure our clients are always happy with their results,” she says. “To me, it’s about being true to our mission. Australian Skin Clinics prides itself on delivering results-driven treatments carried out by experienced, qualified and highly trained team members.” Kerry-Ann’s advice for anyone wanting to become a franchisee is to know the company you want to invest your time and money into and understand where you want to go. “At the end of the day, you want to feel proud of the brand you represent. Immerse yourself in learning and keep up to date with research and treatment information. “When I first entered the business I asked a lot of questions, learning from the expertise of our trainers and head office support staff. “Working with a group of driven professionals who are task-focused in a friendly team-oriented environment and the consistent, high-level training means everyone is set up for success from the get-go.” n

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To join a second generation family business phone 0431 649 450 or visit shingleinn.com/franchising/franchising-eoi/

What does a PowerfulPoints Franchisee do? As a franchisee you do the Account Service and business development function. Our team of designers, copywriters and trainers work with you to deliver your clients brilliant presentations, videos, motion graphics and other collateral to help them get their message across. You don’t even need to know PowerPoint to be successful, you just have to love providing class leading service to your clients.

You will receive comprehensive training and ongoing support and the entire Australian geographic region will be your territory. You will get to work with some of the world’s and Australia’s leading brands, working with a range of departments and personnel from marketing, sales, HR, finance…even the C-Suite. If you enjoy business, this is ideal for you.

Question:

Why are franchises like zebras? Answer: Like zebras, every franchise is different, but few really stand out. A PowerfulPoints’ franchise however, stands out like an orange zebra. Why? Well, because it really is unique. 1. It is a franchise that lets you use your business experience and relationships to build an asset and a substantial income. 2. It’s a white collar franchise that isn’t financially based (which, given the Hayne Royal Commission’s findings, can only be a good thing). 3. It has low fixed costs, and you can work from home. 4. There is no other franchise offering like this available anywhere, and there will only be around 25 in Australia.

5. Every business in Australia is a potential client, with the bigger the business, the more likely that they are to use PowerfulPoints’ services. 6. One of the most satisfying parts of our work is the thanks and accolades we receive from our clients and your clients really will thank you, 89% of our client’s said we made a significant difference to the outcome of their project.

For more information visit our web site today at: powerfulpoints.com.au/franchise-opportunity/ or email: franchising@powerfulpoints.com.au

LEADERSHIP

LEANING IN

and loving it Every day Bec Bull is proving that the tyres business isn’t what people expect.

s a franchisee with Jax Tyres she’s showing her mettle in this typically male-dominated arena.

It’s as much a surprise to Bec as it is to the clients who drop in to her tyre retail outlet. This former economics law degree student spent 10 years in property development before finding her way as a business owner. “I had spent a lot of time working for various developers handling residential and shopping centre projects, handling the development applications. In 2012 a friend mentioned Jax was looking for progressive business-minded franchisees. I put my hand up. “I didn’t know anything about the tyre business, but I knew the Jax name and brand was solid. It’s a really strong business model. I realised that as 90 per cent of my day was about business modelling for other people to make money, I could do that. “I was very comfortable with how they conducted themselves, the fees, the legal side, how inclusive it is, it was a quick and easy decision.” Bec brought her sister into the business as assistant manager. The mechanics are male, but it’s very much a family business, and female-oriented. “I have started my apprenticeship,” Bec says. “We’ve always been about cars and trucks – though my sister is huge on bikes.” The business’s attraction to women in business has been hugely positive, says Bec. The tyre store is located as part of a shopping centre, so many clients are women. They drop off their car, and Bec says it’s very rare if they don’t remark about how comfortable they feel dealing with the two women. What are the keys to success? It really is about knowing your numbers, says Bec. “You have to do a fair amount of market research and know your demographics, even though the product

is tyres it’s competitive. If the industry is down, play to your strengths. It’s about where you market, how you bring the brand back. You want to capitalise on that.” Bec believes a tyre franchise makes perfect sense as a business ownership opportunity for a woman. “Women are 52 per cent of the clientele – it’s probably more here – in an industry that is fast becoming a retail-focused business, more like a shop experience than a workshop experience.” It’s particularly pertinent at Jax outlets where a strict standard of presentation has to be adhered to. An organised and structured layout that’s easy to maintain is a drawcard for female franchisees, suggests Bec. “It’s just another shop, a showroom, it’s customer-service based. There is none of that grimy workshop going on anymore.” Bec is a firm exponent of face-to-face customer service – the personal aspect to car service can bring back customers who had tried the internet experience and found it lacking. Of course, customer service means excellent staff, and there’s no doubt that in common with business owners in food and other retail categories, Bec finds staffing and rostering the biggest challenge. “Of course to deliver excellent customer service Bec requires good team members. Staffing and rostering are the biggest challenge,” she says. Bec’s goal is to build a strong customer base in her franchise – she opened the

doors to the brand new site in January. “We find we are hitting the mark quite well at the moment.” The regional manager has proved a wealth of knowledge, just part of the back-up team that provides head office support. While bringing in more customers is what’s driving Bec and her sister right now, she has an eye on the long-term expansion into further outlets. “I’m focused on this business, but if the right area came up at the right time, I’d take any Jax store.” Not only is Bec making a business for herself, she’s striding forward for women in industry too. “We need more women in industry to deal with women on their behalf. Closing this gap is quite satisfying,” says Bec. n

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LEADERSHIP

DOUBLE

DYNAMOS

Hire A Hubby was a standout success in the 2018 Franchise Council of Australia awards. A double franchisee win added to the top triumph of being named the Established Franchisor of the Year.

ranchisor Brendan Green has been at the helm of the successful property maintenance franchise for 21 years.

“Typically franchisees start out as a man in a van and we offer an income guarantee of up to $125,000 as they establish themselves,” he says. “Then the goal turns to transitioning to a business with two or more employees to increase the skillset and capacity to tackle larger projects and bigger workloads.” Among the 360 franchisees are a handful turning over more than $1 million annually including the two award winning franchisees were recognised as the best in the country in their respective categories. “These two are employing between five and eight guys each and most of them are trade qualified meaning you can really take on a lot of varied projects.”

Hire A Hubby is Australia’s largest franchised property maintenance business with plenty of room to grow in an industry tipped to exceed $1 billion annual revenue in the next few years. “If you look around any CBD you see cranes and trades everywhere, which leaves fewer people available to tackle the types of work we are targeting resulting in stronger demand for our services,” Brendan says. “We do everything from property maintenance odd jobs to minor renovations and extensions and our best performing franchisees have strong ties with their local real estate agents and body corporates.” With annual turnover of $65 million, Brendan says Hire A Hubby could double the number of franchisees across Australia. “We have defined up to 750 territories currently and that number will grow as

new developments open up outside major cities,” he says. “Some of our franchisees have also grown as big as they want to grow and are now exploring the opportunity to sell off half their territory.” “It is an opportunity for them to get a return on the business they’ve worked hard to establish and the incoming franchisee is underpinned by our income guarantee. It’s a win-win.”

AWARD WINNERS ALL ROUND That’s what Sydney-based small business entrepreneurs Jim Kelly and Crystal KellyPetzer decided 15 years ago. The couple realised it was time to move on from running service stations and convenience stores and they started exploring other franchised businesses.

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Second from left, Russell Hampton; 4th and 5th from right, Crystal Kelly-Petzer and Jim Kelly.

“Jim discovered Hire A Hubby and after a few meetings went and worked for Hire A Hubby in Manly to bring his skillset up to speed, and then he had the opportunity to start the franchise in Narrabeen,” says Crystal. “He was working on his own and I was working a corporate job to help subsidise our income, but by the second year Jim was starting to work until late in the evening finishing off quoting and paperwork. “Over time I was cutting back my days at work but eventually I had to give it all up to support him full time.” Jim remembers on the one hand how daunting it was when Crystal finished up her job in the city but this was countered by the pair learning to work better together. “We had the goal of creating a lifestyle we wanted so it forced us to grow the business laterally, focusing on customer service and generating a lot of word of mouth referrals, and we had a great partnership,” he says. The business now employs five full time staff across the two franchise areas and that is supported by regular work through local body corporates and real estate agencies. There are 11 other Hire A Hubby franchisees on Sydney’s northern beaches, which collectively provide a great support network and sounding board for discussing ways to tackle the variety of challenges thrown at them. “Preparing properties for sale has been a huge growth market for us because a lot of things need to be fixed ready for that all important first impression,” Jim says. “There’s normally a tight deadline attached to that sale and we can go in there, fix it all up, and help them sell the property at a higher price – particularly with average prices dropping a little. “However, we try to not put all of our eggs in the one basket,” Crystal adds. “There is a huge amount of property maintenance odd jobs and minor renovations needing to be done, and people simple don’t have the time or knowledge to do them.” She says one of the more unusual projects they completed this year was building a 3-metre by 4-metre cat run from a house to a garden in a yard that backed onto bushland.

“We do a broad variety of jobs and one thing we have focused on over the past five years has been building a complementary team with different trades and skillsets to boost both our credibility and ability to take on a bigger scope of work,” Crystal says. “Our son is an electrician and he occasionally gets some work out of us too.” Shifting their business focus to the handyman scene has put this handy duo into high performance mode. The pair topped off 10 years as Hire A Hubby franchisees by winning the Franchise Council of Australia Multi-Unit Franchisee of the Year award. Brendan Green says Jim and Crystal are more than deserving of the national award. “Jim and Crystal have shown how you can start out as a man-in-a-van operation and through doing great work with the right attitude you can take on multiple territories and build a successful and respected business.” At the same national event fellow franchisee Cairns handyman Russell Hampton was recognised as Franchisee of the Year with two or more staff. Brendan praised Russell’s achievement, saying he is the perfect example of what could become of buying a Hire A Hubby business. “The market for handyman work and trades is only growing and Russell has built a successful and significant business based on his high levels of workmanship and commitment to customer service.” For Russell operating Hire A Hubby Bayview in northern Queensland is in stark contrast from his previous role. Russell established his franchise five years ago after a 24-year career with Woolworths, where he was promoted through a range of positions from store management to area manager. Overseeing store fit-outs at the supermarket chain and renovating a few homes over the years are what piqued his interest in getting on the tools full-time. “Both my father and grandfather were cabinet makers, so I guess it was in the blood, but I enjoyed working with the different trades and on personal projects, so I thought why not make this my job,” Russell says. He now employs eight staff in the

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business, most of whom hold different trades, which boosts his capacity to take on almost any project, large or small. “We tackle everything from property maintenance odd jobs such as mounting a TV on a wall or resealing bathrooms to minor renovation projects - and often people don’t realise just how big we are,” he says. “Having relationships with real estates has been key because we do a lot of call outs and preparing properties for sale. They can send us literally any project and we coordinate it all, making life easier for the agent, property owner and tenant.” About 18 months ago Russell purchased a warehouse to move the growing business away from his home, creating a good grounding point to store materials, meet with customers and manage administration duties. Another handy Hampton is in the making with Russell’s 15-year-old son starting his carpentry apprenticeship with the business three months ago. “It’s a pretty good platform to learn your trade,” he says. “My wife and daughters also get involved in the business, helping to keep things moving behind the scenes.” Reflecting on his business journey, Russell remembers it being a daunting move switching careers. “I wanted to make sure it was something that was a sound opportunity for my family and future, which you can never know for sure until you do it.” Not only has Russell scooped a top gong for his franchise performance he sees other significant benefits to his lifestyle change. “Five years later I consider the CEO of Hire A Hubby a mate and I’m part of a network of 360 franchisees who collectively provide tremendous support to one another,” he says. “I’m also involved in the local BNI networking group which is the top chapter in Australia and I’ve met a lot of different people in the community through that.” Hire A Hubby was also recognised as the best franchise network in Australia at the awards night, rounding out an impressive evening for the property maintenance business. n

LEADERSHIP

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A DAY IN THE LIFE OF Catch up with this Queensland-based franchisor who heads up heritage cafe chain Shingle Inn. Q: What’s the first thing you do in the morning? AB: More often than not, the morning starts with going for a run. Whether at home in Brisbane or travelling interstate, I always pack the running gear! Q: What time do you start work and where? AB: Typically start between 7am and 7.30am at our Brisbane office, which is less than a 10-minute drive from home, which is handy. If I’m heading interstate, then I’m normally up before 5am to get a plane. Q: How do you manage your day? AB: My online diary provides some structure to my day, specifically meetings scheduled with franchisees, landlords, suppliers, internal management. Also, time is always allocated to current projects or new projects that are in the pipeline. Our industry is very fluid, so you need to be adaptable and have the ability to keep your focus across many priorities at the same time. Q: Briefly describe a day in the office – is there a pattern to it? AB: Besides having a coffee every morning, no two days are ever the same! Q: How much of your time is spent on strategy, and how much on detail? AB: Monthly board meetings provide a good opportunity to develop and assess strategy. I also try to schedule time each week in my calendar to work through strategic plans. Sometimes the day-to-day business can seem more urgent or pressing than allocating time to strategy… it is always a difficult balance. Q: How often are you travelling interstate or overseas, and why? AB: Roughly, travelling interstate every second week to visit stores and negotiate with landlords on new or existing sites. It is also important to spend time connecting with other business leaders in different markets across the country. Q: How often do you connect with franchisees? AB: In addition to visiting stores…and it is hard to get around to 50+ stores in high frequency... I attend our Shingle Inn Quarterly Family Forums, where our franchisees gather in each state to discuss new initiatives in the network and openly raise any issues that they may have. We also have an internal online platform, where it is great to see enthusiastic

franchisees and their teams sharing ideas…whether it is amazing latte art or someone posting their first transaction of a new promo campaign. Q: What are the management roles that report directly to you and how often do you talk/meet? AB: Shingle Inn has an amazingly committed and often long-term management team, including the national operations manager; the national franchise development manager; national marketing manager; HR manager; and our production facility manager – most of whom I speak with daily and have formal catch-ups on a fortnightly or monthly basis. Q: What’s the biggest motivator for you on a daily basis? AB: The biggest motivator on a daily basis is the responsibility of ensuring longevity. Being confident that the decisions and subsequent actions being made across all corners of the business are enduring ones, and that they are positioning the vast majority of franchisees and the Shingle Inn brand in the best place for success into the future. Q: What time do you leave the office – what time do you finish working for the day? AB: Mostly I try and leave by 7pm, head home and have dinner with my wonderful wife and see my two beautiful children, before working for another hour or two on any loose ends/emails from the day or getting organised for what is coming in the days/weeks/ months ahead. Q: What’s the best thing about working at Shingle Inn? AB: The family, across many levels, as my direct family are also centrally involved (brother, wife, sister-in-law). The Shingle Inn team is certainly a part of the family. We have many highly devoted people who work in the business supporting our franchisees. With Shingle Inn being a family-owned and -operated business for generations, we have team members who have been with us for 30+ years, but also many who are circa 10 years with Shingle Inn who have been a part of the business for much of the journey into franchising and our national expansion. Last, but not least, many franchisees form part of the extended family as well. I genuinely enjoy visiting their stores and talking with them (and often members of their family) about how they are going with work and general life. n

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BE PART OF SOMETHING BIGGER QUEST FRANCHISING - A PROVEN & SUCCESSFUL BUSINESS FORMULA As Australasia’s largest apartment hotel operator, Quest is a brand business travellers have come to rely on for more than 30 years. We’ve created a business format franchise model that takes away some of the challenges to achieving success in small business, with the support of one of Australia’s most recognisable brands.

Visit questfranchise.com.au or call 1800 809 913

FOCUS

SPECIAL FOCUS:

21 top budget buys Why not invest in a low-cost franchise and reap the benefits? Take a look at what’s on offer from these hot-shot franchises.

franchise investment doesn’t need to be a hefty sum. It’s possible to purchase a business opportunity for less than $20,000, though the options are limited. As the budget increases, there is a vast array of diverse franchises operating across a wide selection of industries.

Of course, there are things to consider when buying any franchise, no matter the cost.

WHAT TO LOOK FOR IN A BUDGET FRANCHISE As a franchisee you’ll expect back-up and service. But for a low-level investment there may not be the resources to provide the level of support you’re expecting. Remember that everything comes at a cost. It’s crucial to find out exactly what “support” looks like in your chosen franchise – will there be IT tools to assist you in the business? Can you contact the franchisor after your initial launch if there’s a problem? Will there be any further training – what will it cost? Is there a support person (a business development or field manager) who will visit – if so, how often? Will the franchisor provide marketing materials for you? Some business models offer to help franchisees source clients – this might be a temporary measure to get the business established or be an ongoing service. It’s important to understand the franchisor’s expectations, how much you need to find your own new business, so there is no misunderstanding over performance expectations. Read a snapshot of the brands here, and then check out their franchise investment, fees, support and training in our chart overleaf.

BATHROOMWERX

What do you look for in a franchisee? Someone with basic handyman skills, not afraid to get their hands dirty; a desire and determination to be in business for themselves and be part of a professional team; good communications skills.

BILLY’S BUDDIES

What do you look for in a franchisee? We are seeking passionate, driven and highly ambitious people who wish to make a positive difference both in the community and within their own lives financially. Our process for franchisee selection is rigorous and involves a number of steps. We need to take these measures to safeguard the brand and ensure we maintain a high-performance culture.

What’s the business potential? Hotels, motels, hostels, hospitals, government housing departments, caravan parks, real estate agents, nursing homes, retirement villages, builders, plumbers, home renovators, facilities maintenance companies, and, of course, private home owners.

What’s the business potential? Starting a Billy’s Buddies franchise is a oncein-a-lifetime opportunity. You will not only be joining Billy Slater (one of rugby league’s bestever players and a national brand in his own right) but many other franchisees in bringing a world of adventure and development to young children across Australia.

CIRCLE OF LOVE

What do you look for in a franchisee? To ensure the success of the company, we look for positive, driven and passionate people who share our vision. What’s the business potential? The Australian Industry generates over $4 billion annually, with many weddings costing in excess of $40,000, with an estimated 120,000 weddings in Australia each year. Wedding industry reports and figures from the Australian Bureau of Statistics show that the number of weddings has increased continuously in recent years.

DIXONS HOMES

What do you look for in a franchisee? A potential franchisee would have a building background, preferably in the housing industry. A knowledge of the housing industry and their local housing market would be advantageous. We have a unique, supportive system that will deliver fantastic results for a driven local builder or business person with a builder’s licence.

What’s the business potential? We are a structured system that allows the franchisee to provide a house and package unique to their client. Our systems and processes are second to none and with over 2500 designs to choose from the final product will be exactly what their client wanted.

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FOCUS FRANCHISE BASICS

BATHROOM WERX

BILLY'S BUDDIES

CIRCLE OF LOVE

DIXON HOMES

ELM CLEANING

FASTWAY

FOX MOWING

GECKO SPORTS

GROUTPRO

KUMON

INVESTMENT COST

$45,000

Varies

$34,990 + GST

From $20,000 + GST

$28,500.00 + GST

Only paid once at the beginning, with the exception of leasing vehicles if required

$16,000 plus trailer & equipment (all up aprox $25,000.)

$38,000 + GST

49,950 + van

$8052 $30,774 if leasing venue; $4052 - $11,174 otherwise

FRANCHISE FEE

$45,000 inc equipment, starting stock, stationery, uniforms and 4-week training course + accommodation

$25000+GST

$190.66 per month

Monthly maintenance fee of system Currently $350 + GST

$22,000

Only one at the beginning

$125 per week

15% fixed fee includes franchise fee and marketing support

$49,950

$1000

ROYALTY FEE

15%

9% + GST per month

7% gross monthly income + GST

10% of total monthly revenue

No, paid on delivery

See above

$215 + GST per week

50% of income from one-off enrolment fees. 45% of income from monthly tuition fees during provisional licence. 40% of income from tuition fees during full licence.

MARKETING LEVY

N/A

$94.45 + GST

2% of total monthly revenue

$31 per week

See above

$275 + GST per month

TERM AND RENEWAL OPTIONS

5 years + 5-year renewal

5 years

5 years + renewal

Perpetual

10+10 years ongoing

5 years +5-year renewal

7 years +7-year +7-year renewal

2-years + 2-year renewal

NUMBER OF UNITS

1200 vehicles+ 800 courier franchisees

125

50+ franchisees

294

GREENFIELD SITES OR TERRITORIES

Territories

Yes

Territories

N/A. We set up franchisees in suburban or commercial locations

EXCLUSIVE OR NON-EXCLUSIVE TERRITORIES

Exclusive

Yes

Non-exclusive, but if a franchise owner is always available for work.

Exclusive

Non-exclusive

UNIT PERCENTAGE GROWTH 2018

17%

n/a

20.0%

Growth of 2018 = 4 franchisees

2018 student enrolment growth rate in Australia was 5%. Kumon opened 10 new centre locations this year

MULTI-UNITS

Yes

Maximum of two centres per franchisee

RATIO OF FRANCHISEES TO BDM/AREA MANAGER

5 to 1

1 - GM of whole network

Depends, on average 25 to 1

30 to 1

10 to 1

3 years + 3-year renewal

ONGOING SUPPORT CALL CENTRE

Yes

INTRANET

Coming

Yes

NATIONAL CONFERENCE

Biannual

Yes

Yes - annually

Yes

PURCHASING AGREEMENTS

Yes

n/a

Yes

ONLINE SUPPORT

Yes

PROPRIETARY IT/ SOFTWARE

Yes

PROPRIETARY PRODUCTS

Yes

FRANCHISE ADVISORY COUNCIL

MENTORING GROUPS

Yes

N/A

Yes

Once we reach 150 franchisees

Yes

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LITTLE KICKERS

MAGGIE MOO MUSIC

MY HOME WATCH

OVENU

RESOLVE

SOCCAJOEYS

SHOEBOX

THE COFFEE GUY

$50,000 (incl franchise fee)

$8000 - $10,500

$25,000 +GST

white van

$5000

$25,000 - $35,000

$29,990 plus GST

$52,000 + GST

$20,000$37,000

$6250 - $8750

$550 per month

$25,000+GST

$15,000

$25,000

10%

Fixed monthly fee $130

$550 per month + GST

N/A

$100 per month + GST

5 years + 5-year renewal

3-year term + option to renew

5 years + 5-year renewal

3 years + 3-year renewal

300+ globally. Approx 50 in Aus

Mapped territories

Both are available

120

Exclusive

17%

Yes. Approx 40%

Exclusive

High

15 to 1

Yes and option to split territory for future growth. 10 to 1

Yes

Yes Yes Yes

TOP SNAP

WET-SEAL

$34,000

$25,000 + GST (Greenfield): POA (Brownfield)

Weekly fees all +GST: $150 franchise fee, $25 technology fee

$34,599

Yes

N/A

8.5%

$450 or 7% of gross income monthly which is the greater

Weekly license fee $300+GST

10%

Yes

20% (18% average)

N/A

3% on gross income monthly

Weekly $5.60 + GST

Yes

N/A

5x5

5 years + 5-year renewal

5- or 10-year contract

5-years + 5-year renewal

5-year plus further 5 years $7995

10 years

15 years via 3 x 5-year terms

Both

150

130

No restrictive territories

Exclusive

Since our launch in October 2017, we have had 8 franchise partners join us.

23%

13 new franchises - 51.7% increase from 17 to 18 year on year

N/A

100%

13%

Yes

Available

N/A

20 to 1

THE PEDI PEOPLE

2 for network

1 x franchise relationships manager + 6 head office staff

30 to 1

3 to 1

n/a

Yes

Not currently, however, we will in future years as we continue to expand and grow.

Yes

ONGOING SUPPORT

Yes Yes

Yes

Set up in progress

Quarterly state based catch-ups; networking opportunities

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Yes

FOCUS FRANCHISE BASICS

BATHROOM WERX

BILLY'S BUDDIES

CIRCLE OF LOVE

DIXON HOMES

ELM CLEANING

FASTWAY

FOX MOWING

GECKO SPORTS

GROUTPRO

KUMON

MARKETING SUPPORT AD TEMPLATES

Yes

Available

Yes

SOCIAL MEDIA

Yes

Available

Yes

SEO

Yes

Available

Yes

EMAIL MARKETING

Yes

Available

Yes

LOYALTY PROGRAM/APP

Yes

TBA

Yes

50 (5 days) initial and ongoing

Minimum 85 + ongoing support

50 (5 days) initial and ongoing

18 + ongoing

CHANNELS

Yes

HOW MANY HOURS TRAINING? ON-THE-JOB/ TECHNICAL TRAINING

200

BUSINESS TRAINING

3 days

2-3 days

4-5 days

Negotiable

4-5 days

Yes, minimum 2.5 day initial 16 at start, then franchise ongoing program training 8 normally + ongoing

2.5 day initial

GECKO SPORTS

FASTWAY COURIERS

What do you look for in a franchisee? When we select our franchisees we look for people with a high work ethic with good time-management skills, a focus on consistently working to a deadline and who are peopleoriented given the customer interface. Being physically fit is also important.

What do you look for in a franchisee? A sports fan who loves having fun and has always wanted a flexible family-friendly lifestyle. Gecko Sports is for people who want to follow their passion, creating a happier, healthier and more active future for kids. If you enjoy working outdoors and being mobile where no day is the same, becoming a Gecko Sports franchisee will tick all the boxes.

What’s the business potential? It's a franchise business that will provide regular income and incremental growth (weekly and annually) – especially given it’s a fast-moving, evolving industry driven in part by the booming e-commerce market. There’s no real limitation on growth potential – apart from the boundary of your territory – and you get an asset you can build.

What’s the business potential? Gecko Sports works in schools and the local community with a commitment to make a difference in children’s lives. We offer fun-fitness bootcamps and multi-sport programs for primary school-aged kids where we have serious fun in a structured non-competitive environment, where kids can learn and grow.

FOX MOWING

What do you look for in a franchisee? Fox franchisees obviously love the outdoors and above all else, take great pride in the quality of their work. They also have excellent organisational skills and love talking with different types of people.

GROUTPRO

What’s the business potential? When we set up Fox Mowing & Gardening in late 2012 our plan was to package all the good things: larger territories, fairer fees, bigger opportunities, more personalised service, and a real turnover guarantee. Our aim is to have 250 franchisees within our first 10 years of operation. With 125+ we are well on our way to achieving this target.

What’s the business potential? GroutPro is a part of the rapidly growing home renovation industry in Australia. There is very little competition in the tile and grout restoration market and no prior knowledge or experience is necessary. Income possibilities are enormous as our GroutPro services are suited to apartment buildings, resorts, shopping centres and commercial premises.

What do you look for in a franchisee? The ability to completely exceed our clients’ expectations. If you’re interested in restoring, renovating and enjoy the satisfaction of a happy customer then a GroutPro franchise could be for you.

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LITTLE KICKERS

MAGGIE MOO MUSIC

MY HOME WATCH

OVENU

RESOLVE

SOCCAJOEYS

SHOEBOX

THE COFFEE GUY

THE PEDI PEOPLE

TOP SNAP

WET-SEAL

Yes

National promotions, seasonal promotions, marketing start up kit, etc.

Yes

On a needby-need basis (custom made for each application)

Yes

Facebook, Instagram

Yes

Facebook (including Facebook Locations)

Yes

Limited

Yes

Yes, Google Adwords, retargetting through different channels

Yes

Google My Business & other channels

Yes

Bi-monthly builder e-newsletter, periodic newsletters

n/a

Coffee loyalty cards

Yes

In development

Yes

1 week + ongoing

Optional

1 - 2 weeks online

10 days

30 + ongoing

1 week at head office +6 months practical training

2 weeks on the road

40+

40 (5 days)

75 minimum

1 week + ongoing

Video

1 day + ongoing

1 day

36 ( not including accreditation training)

30 hours + ongoing

1 week at head office + ongoing

2 weeks - 1 week classroom training, 1 week remote launch preparation

40+

24 (3 days)

37.5 minimum

KUMON

What do you look for in a franchisee? We seek people who are highly proficient in both maths and English, with strong business acumen and organisational skills, who are effective communicators and are actively involved with the local community. We also look for people with a growth mindset who seek to improve through professional development. Our minimum requirements for franchisees are a bachelor’s degree, Australian permanent resident status, a valid driver’s licence and own transport, and a relevant working with children check. What’s the business potential? Kumon is the world’s largest after-school education program with 4.25 million students enrolled worldwide across 51 countries. From 2014 to 2018, Kumon experienced yearly consecutive growth, with a growth rate of 18.7 per cent.

LITTLE KICKERS

What do you look for in a franchisee? Our franchisees really do come from all walks of life. The common thread that links them all is that they are passionate about owning their own business and getting young children involved in sport. We look for are perseverance and determination, strong communication skills, good admin skills and being fit and active.

MAGGIE MOO MUSIC

What do you look for in a franchisee? A love of music and children is essential, but no formal music training is needed. What’s the business potential? With nearly one and a half million 0 to 4 year olds in Australia , the market for baby and pre-school activities is a hungry one. Maggie Moo Music in only two years, has attracted 21 franchisees to this international, proven and tested brand.

MY HOME WATCH

What do you look for in a franchisee? We look for enthusiastic individuals or couples who are passionate about people and homes who are trustworthy and reliable. Leaders, communicators and team players. Those with a passion for business and wanting to make a positive difference within their community and are willing to work hard to grow their business. What’s the business potential? Travel, pet, home security and real estate are all billion-dollar markets, thus our franchise system in property and pet care has enormous potential for franchise partners with longevity in this service-based industry. Global expansion plans are under way for the property and pet service brand in 2019.

What’s the business potential? Little Kickers is now active in over 30 countries and has been successful in each market. We pride ourselves on having a local feel while providing world class infrastructure and support. Our brand is currently listed at #199 on Entrepreneurs Top 500 list and we have about 8,000 kids per week attending sessions in Australia.

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FOCUS

THE COFFEE GUY

RESOLVE FINANCE

What do you look for in a franchisee? Forming real customer relationships is something our franchise partners deeply care about. A Resolve Finance franchise could be the right fit if they value success, are motivated, accept their workload, embody our philosophy – they are ready to be their customers’ finance partner for life. What’s the business potential? Since 1997, we’ve expanded to fill every niche of the financial services industry, from home loans and conveyancing, to financial planning, personal finance and insurance. Financial services will always be needed and the sector continues to grow each year. In fact, over 53 per cent of home loan customers now seek out mortgage brokers to save them money and time.

What do you look for in a franchisee? Previous business management skills and business operation skills are not considered critical. To be successful, franchisees must possess some core elements: a desire to be their own boss, be selfstarting and motivated, be a good communicator and understand the importance in value for money for the customer, be ethical, open and honest. What’s the business potential? The model is based around high gross profit products combined with minimal operating costs. Franchise partners have no wages or rent costs, which in traditional business absorb over 50 per cent of your turnover. The business is not affected by seasonal conditions. The Coffee Guy is our second coffee mobile brand [Cafe2U the first] with available territories nationally, powerful branding, award-winning coffee and introduction of a new van.

THE PEDI PEOPLE

SOCCAJOEYS

What do you look for in a franchisee? A passion for childhood development – it’s at the core of what we do. Successful franchise applicants will also have exceptional interpersonal skills, be passionate about developing skills for life in our registrants and lead by example – that means being community-minded and promote a healthy and active lifestyle. A high level of motivation, adaptability and organisation are also required. What’s the business potential? The childhood development industry across Australia is currently in a state of strong year-on-year growth. Parents are not slowing down in their investment in extra-curricular activities for their children. Soccajoeys meets this demand with an extensive product offering which encompasses eight different product lines (for kids aged 2.5-11 years).

What do you look for in a franchisee? The most suitable franchisee for The Pedi People is someone who is caring by nature, has a nursing, caring or communityservices background. But they could also be just a motivated individual with a desire to run their own business and care for older and disabled adults to be more mobile and stay in their own home longer. What’s the business potential? As a truly niche business in the aged care and disability sector, there is great potential to take advantage of the ageing population and increase in disability services. As a turnkey business, franchisees can make a fast return on their investment within 12 months as there are low ongoing overheads and real potential to make a good profit.

TOP SNAP

What do you look for in a franchisee? A highly motivated, results-driven entrepreneur, even without a passion or background in photography. What’s the business potential? Top Snap is an international franchise group and an accredited Google Trusted Agency providing professional marketing solutions for the real estate industry across Australia and New Zealand for over 14 years. Our service offerings include professional real estate photography, floor plans, property videos, property virtual tours and more, tailored and delivered to our customers – real estate agencies, homeowners, builders, architects, interior designers and property developers.

WET-SEAL SHOEBOX

What do you look for in a franchisee? Our ideal franchisee candidate is trustworthy, enjoys helping people and although they don’t necessarily need bookkeeping experience they should enjoy working with numbers. This candidate has a drive to succeed with fantastic organisational and communication skills. What’s the business potential? Primarily we operate in the world of small business where potential to grow is significant. We also support individuals and tradies with their bookkeeping needs; always encouraging local businesses to work on growing their business, while we work on their bookkeeping. This target market is extensive, with small to medium business, tradies and individuals operating nationwide.

What do you look for in a franchisee? Many of our franchisees come from trade backgrounds, like building or carpentry, but it’s not an essential requirement for taking on your own Wet-seal territory. All you need to do is have an ability to build relationships with local builders, be on job sites when you are expected to be and find opportunities within your territory – if you’ve got all this covered, we assist with the rest. What’s the business potential? Wet-seal has been the trusted name for waterproofing in the building and construction industry for over 30 years. Wet-seal’s systems are manufactured using the most stringent of standards that meet or exceed not only environmentally friendly requirements but also comply with all standards and the National Construction Code (NCC). Its range of waterproofing primers and coatings are top-notch. They are also backed by the Quality Assurance Certification System (ISO 9001) and are BRANZ appraised.

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BUILD YOUR FUTURE WITH A RETAIL ICON

As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 60 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry.

Our industry knowledge will help you build a strong business, becoming the local pool specialist in your territory and helping you work in a lifestyle environment. Our franchisees benefit from: •

Our business development and support • teams will assist you in building your successful • business. We have three exciting franchise models where we are looking for new, motivated • and business orientated franchisees for: • • Clark Rubber Retail Stores • Starting from $420,000 plus GST • •

Clark Pool & Spa Shops Starting from $147,500 plus GST Clark Rubber Pool Care Service Territories Starting from $49,500 plus GST

Unparalleled national and local support Proven marketing and business strategies Group buying power No franchise renewal fees Turnkey development and set up Retail brand celebrating 70 years

•

Multi Award winning franchise system

•

Unsurpassed initial training and ongoing support

If you would like to hear more about franchise opportunities in your area, please contact Dirk Heinert for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or dirk.heinert@clarkrubber.com.au

clarkrubber.com.au

INDUSTRY SPOTLIGHT

Sweet Sensations Five dessert franchisors consider whatâ&#x20AC;&#x2122;s on the plate for the sweet treats market. By Sarah Stowe FEB/APR 2019 | 62 | WWW.FRANCHISEBUSINESS.COM.AU

resh ideas and fabulous flavours are just the icing on the cake when it comes to operating a great dessert franchise. Behind the scenes it’s the marketing, the costs, the customer trends and the capacity to be agile that drives a successful business.

CHOCOLATERIA SAN CHURRO MARK ATTARD, marketing director The Spanish-inspired chocolate chain has invested time to find out what consumers really want right now in

a world where social media is more important than the experience of enjoying a dessert, and Instagram is the crucial tool to communication. “It’s tough. You’re dealing with trends around the world. Something pops up in the US and consumers expect it in Australia next week. That’s even more challenging on scale. “It’s a challenge the way they are wanting to share, and how rapidly you have to change. We used to have time to prepare, to analyse trends, to decide what to leap on and what not to leap on,” Attard says. San Churro has invested heavily in product development, now employing FEB/APR 2019 | 63 | WWW.FRANCHISEBUSINESS.COM.AU

three full-time staff in what used to be just a part of the marketing manager’s role. Behind the scenes, the team is sourcing, working with chefs, analysing trends, measuring results, testing product. Accommodating dietary needs is important, and can be more challenging when a diet shift strikes right at the heart of the niche sector – think gluten and sugar. “We probably overestimated the impact of gluten-free. We worked really hard to do this because we are working with flour all the time. The uptake on churros is slow. But we had a sugar-free bar now do sugar-free hot chocolate.

INDUSTRY SPOTLIGHT

Sugar-free is not going away.” Attard says it’s easy to make a mistake if the business is driven by doing what works operationally, what is convenient for the store, which means the customer is coming last. “We survey customers. We trial, not necessarily in the most efficient way, then work on operations,” says Attard. A turning point in product development which took the business into a new areas was the conveniencebased share-a-snack pack. It was takeout, Instagram-friendly and not just the usual product in-store, he explains. “We weren’t very good at takeaway before that.” Premium chocolate is a fundamental ingredient for the chain, so there is little flexibility when it comes to controlling the costs. However, the product team spends a lot of time on cost of goods, guaranteeing minimums and pricing. “We’ve just launched Ruby chocolate – it’s gone really well, we sold out our mid-September container. Unusually in retail we went crazy with that, people wanting to gift. We have a degree of exclusivity with that through our purchasing power.” The fixed cost of a lease is the biggest factor in success. “There’s science behind it. We say no to a lot of sites. We’ve become a lot better at getting it right and understanding the mix.” Against a backdrop of increasing rents, fixing the location site to a commercially viable size opens up the opportunities for franchise success. The first San Churro store was just 47sqm, now a site can be up to 450sqm. Today, there are fewer diverse products with a merchandise focus on core product and a more realistic 200sqm. “That’s the sweet spot, it tends to work. I’d rather have a few people queuing up than have empty seats in busy times. We’re looking at smaller locations,” says Attard.

THE CHEESECAKE SHOP KEN ROSEBERY, managing director “It’s a competitive business. To gain any advantage, you have to be keeping an eye on trends and be able to respond with product. “We do market research – typically every two years – commission primary research that might include focus groups, insights into customers and entertaining, birthdays. We also attend trade shows, Fine Food and Healthy Food and see what’s going on. You watch your competitors. “I don’t think it’s ever easy, I think things always appear easy in hindsight. We recognise we need to keep working on that – franchisor marketing and product, feedback from franchisees. In the end, we’re in it for the long term, customers in it for the lifetime.” Rosebery reports that customer profiles are changing. Men are now buying – couples who both work because life’s busy. “It’s not as clear as it used to be.” And the transition is reflected in marketing, which has added a more metrosexual tone. Traditionally the go-to store for celebratory cakes, The Cheesecake Shop is observing the emergence of another FEB/APR 2019 | 64 | WWW.FRANCHISEBUSINESS.COM.AU

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INDUSTRY SPOTLIGHT

consumer, the grocery shopper. “We’ve certainly had increasing success, with more breadth in our range,” says Rosebery. Party cakes are now baked in mini size, full size and the most popular, the midi size. For a dessert, the focus is on everyday and that can mean a smaller size – even a single portion dessert cup. The Cheesecake Shop does have a presence in shopping centres, but the strip location is its more natural habitat. That comes with advantages – a far less volatile environment than the shopping centre, says Rosebery. “We have leases with multiple options, in location for 10 to 20 years. The brand is established, landlords are happy to have us there. That’s the strength of our business and it keeps rent down.” The size of the chain makes it a big player when it comes to supplies, and that allows the business to wield some power. “We’re a big outfit in Australia in terms of ingredients, We have steady contracts, big buying power, just some fluctuations because primary production is affected by weather. We look at pricing once a year generally, and our pricing and COGs is pretty stable.” The business has been trading for 21 years and continues to innovate to stay competitive with consumer taste trends, and with in-store operations. “We are working on some great things, we’re launching product for 2019. Eggless sponge is one. We do have lower sugar, flourless and vegan options in development. These are small but important needs that we have to supply, even if they are not profitable.” The company is developing facial recognition to run across POS to time sheets. “We’ve done a lot over four to five years to get closer to real-time profitability and what we need to run a franchise. “We care about profitability. If franchises don’t understand, there is a greater emphasis on franchisors to take care,” he says.

GELATISSIMO FILIPE BARBOSA, CEO Gelato is getting indulgent at Gelatissimo, as the company launches a deluxe range and focuses on flavour combinations with lots of inclusions such as brownies, cookie dough and real fruit pieces. “We utilise social media to engage and entice our audiences and are careful

to ensure our gelato not only tastes delicious but looks ‘shareable’. Our internal and external digital marketing team closely monitors brands throughout Australia and internationally to stay on top of trends and engages social media influencers to ensure we’re getting in front of new audiences every day,” says Barbosa. “We make sure to spend plenty of time at the coalface of our business, at all levels of the organisation. This enables us to talk to our customers and understand what they are seeking. In addition we are always on the lookout for new ingredients and keep strong relationships with our suppliers, which have the benefit of seeing many different perspectives. “More and more customers are becoming increasingly flexible with their dietary choices, and we must consider this as part of our evolving product range.” Gelatissimo late in 2018 introduced a vegan range of gelato (see page 73). Another challenge is leasing costs. The current retail climate is without doubt difficult, but success ultimately comes back to basics and doing them well, he says. What counts is amazing product presentation, excellent in-store standards and great, engaging customer service. “The businesses that do this better than their competitors will thrive, and those that don’t will inevitably perish. Continual training and communication with our store network on the importance of these basics is key.” When it comes to managing the ingredient supply chain, Gelatissimo has fostered long-term relationships that allow the business to benefit from the variety and quality customers seek but at an acceptable price. In today’s competitive environment the challenges of site selection are common, and Gelatissimo is not unique in facing tough retail rents. “Sites on prime ant trails come with big-ticket rents, and we have to be careful to ensure that we are not emotionally connected to a site decision,” says Barbosa. “Our natural growth will be in regional or outer suburban areas in coming years so in a way this is a good

way to find good sites without the huge CBD. In addition, these upcoming areas are looking for new retail experiences, and thus our offer is a perfect fit.” A common response to rising location costs is to adopt an alternative business model. Barbosa says the business is exploring a few ideas but nothing is set in concrete. “In the next 12 to 18 months, we will inevitably pilot an extension or new concept,” he says.

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Ben & Jerry’s Some food trends come and go but ice-cream is a classic and is here to stay. Ben & Jerry’s is keen to keep both flavours and menu choices fresh, and has a team of “flavour gurus” who trial and test the latest trends. In addition to ice-cream there are sorbets and non-dairy frozen dessert. Coming next year will be the lower-fat but still chunky ice-cream, moo-phoria. Across the menu, ingredients are natural, organic, fair trade and locally sourced where possible as part of the brand’s social mission. With a tag of “peace, love and ice-cream,” Ben & Jerry’s sees itself as a quirky and unique brand. That translates into a need for fun locations – which comes with its own challenges. It’s a balancing game, finding a premium location that works for the business.

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INDUSTRY SPOTLIGHT

BASKIN-ROBBINS BEN FLINTOFF, general manager It has offered customers more than 1000 ice-cream flavours since its beginnings in the US in 1945. Baskin-Robbins is part of the global Dunkin Brands group and claims to be the world’s largest specialist ice-cream chain. “Baskin-Robbins brings a premium ice cream to the world unashamedly. We do not position ourselves as an everyday food, and our guests enjoy the indulgent sensation we have to offer,” says Australia GM Ben Flintoff. “We have had a broad gluten-free offer for several years and have launched successful dairy-free and no-sugar-added flavours in our history, with more to come. Today’s guests want us to address a variety of diet, health and allergen concerns, and we choose to actively listen to our guests via website feedback and through the use of social media, and have focused on offering more choice through menu and product innovation.” Flintoff highlights the transparency of nutritional information, including allergen information, on the menu, something the business has supported for many years and backs up with allergen training. “We conduct stringent allergenhandling training and place allergencontaining products in particular locations throughout our display to minimise risk of cross-contamination. With our standard process being followed, a guest need simply advise the team member of their concern and be assured of a high duty of care,” he says. “As a global brand, we remain committed to producing high-quality, premium products, sourcing our ingredients and materials responsibly, managing and improving the footprint of our operations and positively impacting the communities we serve,” he says. As other franchisors attest, there

are particular challenges in operating a big-brand business in a niche within the current food retail climate. “As an after-meal or indulgent offer, our biggest opportunity remains in our guest experience. We have a known and trusted brand with a quality product offering, however it is simply not necessary to have dessert in the same way we need to have three main meals,” points out Flintoff. “That motivates us to create great engagement with our guests through positive in-store experiences and imaginative marketing campaigns to ensure when ice-cream lovers are looking to treat themselves, BaskinRobbins is top of mind. Challenges are faced by most brands in our “time-poor” society and these observations are also in line with our recently activated homedelivery channel. “We need to ensure we provide convenience to our guests and an experience and value offering which will see them return and tell their friends.” A strong product backed by excellent marketing still needs to be backed by good ingredient prices and reliable supplies. How does Baskin-Robbins achieve this? “Our high-quality assurance standards mean that our ice-cream is produced from a single factory with a long lead time. Clearly, demand planning is a critical skill in that regard and we have a highly experienced supply chain managing that for us.” Flintoff is confident that good planning and a stringent approach to financial viability means the business is solving the retail puzzle. “High-rent locations are usually related to highly desirable foot traffic counts. So in some cases there is a reason to write a big rent cheque.” Flintoff points out that rent sharing and minimising footprint through clever operational design have delivered

significant advantages to franchises over the past two years in particular. “Recently, our highest-volume store halved its footprint in a radical store refurbishment that directly impacted the bottom line for years to come for that franchise partner. In addition, while we may be presented with locations that are a perfect fit, the rental costs sometimes mean that the only winner would be the landlord, so we make a conscious decision to politely decline the opportunity,” he says. Refurbishment is a crucial process to ensure stores maintain a contemporary look and feel. It’s challenging in such a fast-moving industry. Flintoff says the business has taken it one step further. “Over the last five years, BaskinRobbins Australia has been very careful in requiring capital expenditure by our franchise partners outside of the usual refurbishment at renewal. This has worked well, with over 85 per cent of our network proudly displaying the current look and feel (known, of course, as Happy 1.0).” There are other innovations too, he reveals. “In 2019, we’ve targeted a product category in our menu with great upside that will see an introduction of some exciting technology into our store network. The investment will be low, the return on investment very high.” What about new business models? “We already offer support to our network through two business models – royalty-based and earned equity. In the case of the latter, we were recently able to lift up a corporate store manager from our own portfolio and partner with them into a location. A fantastic opportunity for both sides. “As the retail environment changes, so will our model, and we are currently reviewing kiosk models for high traffic locations, alongside mobile units that can visit events and community occasions.” n

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INDUSTRY SPOTLIGHT

C hoc tops

The specialty chocolate cafe market was born out a universal love of indulgence, however as consumer trends evolve and the nation becomes more health-conscious, is there still room to grow on sweet street? By Nick Hall

he modern Australian consumer is a tricky premise, and for specialist food retailers, creating a diverse offering with multi-demographic appeal is proving to be difficult, even for the experienced players.

Over the last 12 months, there has been a number of high-profile collapses in the food retailing industry, highlighting the importance of not only understanding the market in which a brand operates, but remaining proactive in the face of sector evolution. Tightening economic conditions have put the squeeze on considered purchases, and in the highly competitive world of specialty chocolate cafes, the heat is well and truly on.

CHALLENGES While the progressive mentality of the Australian consumer has traditionally presented a profitable opportunity for brands to develop and cultivate market share, the wide array of food options and tightening economic factors have restricted growth over the last few years, particularly in the specialty cafe scene . “The biggest challenge in the market is that the customer expectation has changed,” San Churro marketing director Mark Attard told Inside Franchise Business. “Prior to the last 12 months, it was a completely oversaturated market. Not just in specialty chocolate cafes, but the dessert industry as a whole – it’s no longer a niche market.” Sales performance in sectors such as dessert restaurants provide a snapshot into the wider retail landscape, with considered purchases such as speciality food often the first to suffer when economic conditions worsen. In October, Israeli-born speciality chocolate cafe Max Brenner Australia collapsed into voluntary administration, citing “escalating costs and tighter retail trade” as catalysts for the move. With a network of around 600 employees across the country, Max Brenner’s collapse was the most high-profile of what has become a recurring theme for the industry. Counterpart Oliver Brown was plunged into voluntary administration earlier in

2018, putting the future of around 50 of the brand’s franchise stores in doubt. Conversely, Attard said the evolving market expectation has driven San Churro to promote innovation as a core function of its business model. “We’ve been in the game since 2006, and the speed at which you need to respond to market demand has exponentially increased over time,” Attard said. “It’s about keeping up with consumer need for new products and trends, while at the same time staying true to your core and what it is that you do well.”

INNOVATION What San Churro has done well in recent times is cater to consumer demand, introducing innovative product offerings and focusing on meaningful market growth opportunities. “We were certainly feeling the same pinch everyone else was in the market, but we made an active choice two years ago to change what we were doing. It was about the long game and putting together those detailed strategy pieces – nothing is accidental. Those pieces have now given us that foundation, and sales have turned quite dramatically, predating the market evolution,” Attard said. Investing heavily in its innovation pipeline, San Churro implemented strategies that allowed for network-wide roll-out over a short period of time, with Attard acknowledging a focus on consumer wants was behind the brand’s driving success. “You can’t do everything, and one of the main challenges for us as an agile business is that when you have one or two sites, introducing new things is simple, but when you have 50, that becomes a real process,” Attard said. “Product development used to be a function under the marketing manager, now we have a dedicated team working solely on product development. That’s in response to those consumer demands, we identified that we needed a resource around it that would address those many factors and challenges that come with offering innovation.” While he agreed that the wider specialist food retailing environment was in a rebuilding phase, Attard reiterated that Australian

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businesses can no longer afford to rest on their laurels. “I think a major reluctance for people would be the huge cost involved in innovating. When you take a look at the actual outlay and costings of introducing new market offerings, it demonstrates how important it is to have the right strategy,” Attard said. It’s that strategy that’s allowed San Churro to traverse the difficult economic conditions that have left several industry counterparts in its wake.

OPPORTUNITIES While both Max Brenner and Oliver Brown have been salvaged from the brink of failure, the impact of voluntary administration has cast doubts over the operating models, with Oliver Brown announcing a network-wide restructure of practices. Attard said that while high-profile exits have hit the sector hard, it was less of a reflection of the landscape as a whole, and more a response to lack of agility. “While it’s been disappointing to see that market shift, it was also probably necessary, there’s only so much room in the market for niche offerings, and that reduction in competitors was honestly natural and predicted,” he said. The recent market conditions have highlighted the need for niche brands to stay contemporary, focusing on consumer relevance to drive demand, which Attard says perfectly placed San Churro for growth. “With a reduction in sites, however, there’s certainly an opportunity for us in the market, but we have to be measured in our approach,” he said. “We’ve been in the game a while, and we’ve seen guys come into the market and roll out really quickly and exit just as fast. Growth can be a hard beast to master.” San Churro is revelling in the face of sector evolution, which Attard credits to a focus on brand values, placing the brand at the forefront of the specialist food retailing industry. “You’ll find that if you put the same effort into refining your core product and offering, there is no need to dilute. The future for us is really interesting.” n

INDUSTRY SPOTLIGHT

Just the

Veganning Australia’s growing appetite for vegan alternatives is firing up a new flavour in consumer culture. Here, Inside Franchise Business takes a look at the franchise brands driving the meat-free movement. By Nick Hall

onsumer trends are traditionally characterised by flavours, fads and fresh-to-market offerings, however, one socially conscious category is changing the way food retailing is approaching Aussie tastes.

According to global market research company Euromonitor International, the vegan packaged-food industry has exploded in popularity, reaching a retail value of $503 million in 2016, and is projected to hit $535 million this year. More Aussies than ever before are jumping on board with the healthyliving, cruelty-free movement, and as the market continues to soar, retailers and grocers find themselves eager to flex their vegan credentials. Between 2014 and 2016, the number of food products launched in Australia carrying a vegan claim increased by over 92 per cent, research from Mintel Global New Products Database suggests. While meat will almost certainly remain a staple in the Aussie culinary vernacular, lifestyle, social and health factors are helping the vegan market to gain traction in the diverse domestic landscape. One in seven Australians now indicate that they avoid or intend to avoid red meat in the immediate future, meaning casual dining, restaurant and fast food brands must review their offerings and cater to the vegan demand. So which franchise brands are jumping ahead of the curve and adopting the meat-free mantra?

DOMINO’S For long-suffering vegans, even the most simple of pizza toppings presented a forbidden fruit. A staple of Italian fast-food menus, the humble cheese pizza, was out of reach for the dairy-free until Domino’s unveiled a networkfirst partnership earlier this year. The global pizza giant penned a deal with supplier Follow Your Heart in January, introducing vegan cheese as a limited-time offering. The trial was an overwhelming success, however, and the brand quickly confirmed that the product would remain a year-round offering. Nick Knight, Domino’s CEO Australia and New Zealand, says the decision to introduce a vegan option followed extensive research and a customer

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The customisation aspect of Domino’s – and indeed the pizza sector as a whole – presents the opportunity for customers to add or remove toppings as they like, making the integration of dietary-specific menu innovations all the more seamless. The brand now offers three dedicated vegan pizzas, as well as the option to alter any pizza on the menu to a vegan substitute. Domino's

survey pushed to the company’s over one-million-strong Facebook following in late 2017. “At Domino’s, we pride ourselves on our ‘people-powered pizza’ mantra and listen to what our customers want. We were blown away by the response to the survey and for this product in general,” Knight says. “The unprecedented demand for vegan cheese resulted in stock exhaust in just one week after its release.” Identifying not only a rising demand for vegan products, but a thriving community of like-minded individuals, Domino’s launched a dedicated Facebook page for vegan cheese enthusiasts, providing a vegan-centric online space where users can share ideas, experiences and new topping suggestions. “The popularity of, and demand for, vegan products has increased considerably over the years so it’s great that Domino’s continues to offer high-quality, non-GMO, plant-based and preservative-free vegan cheese,” Knight says.

GELATISSIMO While vegan options have primarily been a response to morally conscious eating behaviours, a recent social trend away from gluten, GMO and dairy products has boosted the market’s appeal, particularly in the dessert industry. The rising popularity of superfoods and guilt-free desserts saw Australia’s largest gelato franchise, Gelatissimo, launch a limited-edition vegan, non-dairy flavour made from almond milk. Specifically designed to cater for the tastes of lactose-intolerant and health-conscious Aussies, Gelatissimo’s low-calorie, low-fat, high-protein vegan almond sorbet features chocolate swirls, cacao nibs and toasted almonds. Filiz Kaya, Gelatissimo’s product development manager, remarks that the brand had been watching the vegan market grow steadily over a number of years, and the strategic move to launch the product on World Vegan Day highlighted just how seriously it viewed the demographic.

Domino's

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INDUSTRY SPOTLIGHT

Zambrero

“Over the past couple of years, we’ve seen increasing demand for flavours that incorporate superfoods like activated charcoal and almond milk, so we’re proud to be launching this on-trend and refreshing almond milk flavour on World Vegan Day,” she says. “It perfectly complements Gelatissimo’s artisanal range, which already has a series of non-dairy and vegan flavours.”

LORD OF THE FRIES For the Melbourne-based burger, hot-dog and fries business, Lord of the Fries, targeting a vegetarian market was not merely an afterthought. Established in 2004, the brand was born out of a love of fast food and vegetarian fare, with founders Amanda Walker Koronczyk and Mark Koroncyzk searching for a solution for chemical- and beef-tallow-laden frying options. “Fast forward to 2018 and we have 18 bricks-and-mortar takeaway and sit-down stores across Australia and New Zealand, over 100 stores due to open in India over the next 10 years and more stores popping up across Australia,” Koroncyzk says. In recent years, Lord of the Fries has made the move to 100 per cent vegan ingredients, however Koroncyzk suggests it was more than just consumer demand that elicited the change. “There’s no doubt that we’ve seen a higher demand for vegan options and have seen the industry respond widely.

Customers are certainly becoming more conscious about where their food is coming from and the effect it has on the planet, as well as their health, likely due to social media, documentaries and so on,” Koroncyzk says. “Although in part the move to 100 per cent vegan was a reflection of increasing consumer demand for vegan options, it was mainly due to our growth as a business allowing us greater accessibility to vegan ingredients that were cost-effective for our franchisees and customers.” Since moving the entire business from vegetarian to vegan, the brand has introduced an innovative breakfast menu across all stores that even features a vegan egg option, in addition to launching an Australian first last year. “We also launched the globally celebrated and celebrity-backed Beyond Meat burger to Australia – a 100 per cent plantbased burger that is said to cook, look and even bleed like meat. As Beyond Meat’s exclusive restaurant partner, customers have loved that we’ve been able to keep it as a permanent menu item as part of our premium range,” Koroncyzk says.

HUNGRY JACK’S Following on from the continued success of its Veggie Whopper range, fast-food franchise giant Hungry Jack's committed to introducing a vegan offering in 2018.

In June, Hungry Jack's trialled the vegan cheeseburger in select stores in Sydney and Melbourne, and following an overwhelmingly positive consumer response, rolled out the product in all 400 Australian stores. The Hungry Jack’s vegan burger features two veggie patties made with 100 per cent Aussie veggies (including carrots, peas, potato and capsicum), melted vegan cheese, tomato, lettuce, ketchup, and locally made vegan mayo on a sesame-seed bun. Scott Baird, Hungry Jack's chief marketing officer, said the company’s decision to roll out the vegan burger was in response to growing consumer demand. “We are committed to making sure there is something for everyone at Hungry Jack’s, so we are very excited to offer a great value option to the growing number of vegans around the country,” Baird says. “We received a terrific response during the trial phase and we are confident Australians will embrace the Vegan Cheeseburger, just as they did the Veggie Whopper, which was introduced 17 years ago and is still going strong.”

ZAMBRERO Mexican fast-food franchise Zambrero is no stranger to social movements: the brand launched the Plate 4 Plate initiative to curb world hunger, signing a partnership with hunger-relief agency Rise Against Hunger. Following consistent demand, Zambrero rolled out vegan cheese as part of its full-menu offering in August, delighting Aussie consumers. Bianca Azzopardi, Zambrero CEO, says the integration was a reflection of growing demand for vegan and dairy-free options. “Across the industry we have seen an increase in the desire for vegan-friendly products, not only by vegans but also those that are lactose intolerant and health conscious,” Azzopardi says. “We know it can be tricky to find consistency in plant-based alternatives, especially that taste really good, and we continue to aim to position Zambrero as the first choice for a healthy, veganfriendly meal.” n

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INDUSTRY SPOTLIGHT

Diving into the

deep end

If you’re ready to make a splash in business, could a pool-based franchise be for you? By Sarah Stowe

POOLWERX

ew research reveals that nearly 2.7 million Australians live in a house with a swimming pool – that’s equivalent to 13 per cent of the Australian population. The figure is higher in regional Queensland, where 20 per cent of houses have pools. According to Roy Morgan, there are two pool-friendly communities: the typical average Australian family or empty-nester who sees their home as a reflection of their achievements; and high-income, highly educated, progressive, career-focused individuals. Let’s dive a little deeper… swimming pool ownership is high among a group of culturally diverse Australians, with almost half born overseas and a significant proportion of these from Asia. The Roy Morgan report shows mid-life householders are among them, living predominantly in the suburbs of Sydney and Melbourne. Michele Levine, Roy Morgan CEO, says, “Besides a warmer climate, there are other factors that determine whether someone will own a swimming pool and these include socioeconomic factors and also the presence of children in the house. Over 17 per cent of Australians with kids aged six to 11 have a pool at home (up 2 per cent on four years ago), a figure that jumps to just over 23 per cent (up 3 per cent) for homes with older children (12 to 15 years).” There is also a shift in urban environments to more apartment living and fewer single-home developments. While the suburbs are extending everoutwards, the city is moving on up. Alongside the new way of living, there is often a host of facilities for apartment dwellers to enjoy – and this can include a swimming pool. Our housing might be changing shape, but we still love a dip. So which brands are taking advantage of this industry? Inside Franchise Business slipped into a franchise buyer role and asked five brands about their businesses.

Q: How seasonal is this business and how do you manage quiet times? While the peak domestic pool servicing season runs for eight months of the year, commercial pool contracts run all year round. Poolwerx is focused on maximising profitability for its franchise partners so it has developed options to generate income across four sectors: residential servicing, retail sales, online and commercial pool servicing. Q: What technical knowledge do I need? No prior experience is necessary as Poolwerx provides full training. Each franchisee completes an official Certificate III or Certificate IV in Swimming Pool and Spa Service, including three weeks’ intensive training provided through our Pool School. Q: What will I be doing as a franchisee and how do I make money? There are four income stream opportunities for a franchise partner: MOBILE: Domestic pool or spa maintenance and equipment supply RETAIL: The stores carry a full range of pool equipment and chemicals from industry leading suppliers. B2B: Commercial client relationships are built at a national and regional level. ONLINE: Poolwerx e-commerce platform aims to improve market penetration and improve turnover both on and offline. All sales made online are passed on to the respective local franchisee. Q: How does the franchisor make money? There are scaling franchise royalty fees based on the size of the business and marketing group fees as part of the franchise agreement. Q: How can I expand my business? Poolwerx has a strong focus on business development and has a proven pathway to success with opportunities to grow from a mobile operator to multi-site owner. Retail franchisees can expand their business through purchasing new stores or acquisitions and conversions of existing

independent pool operators. Poolwerx retail stores also drive growth into the mobile side of the business. Q: What makes the business stand out from competitors? This year we hit our major goal of achieving $100 million turnover, 100 stores and 100 franchise partners. Our systems are worldclass, and we have been recognised for them with many awards throughout our 25-year history, including: Franchisor of the Year 2016, 2004, 2002; Multi-Unit Franchisee of the Year 2015, 2013, 2012; Home Services Franchise of the Year NZ 2018, 2012, 2010; and Best Field Manager 2018, 2016. Our franchise partners are our brand, and without their hard work and dedication the Poolwerx brand would not be where it is today. We enable this level of skill through national accreditation and providing the most comprehensive training program in the industry. Q: What innovations have you introduced in the last 12 months to help franchisees? Poolwerx recently invested heavily in a new global website, business management support system and customer relationship management tool. The new systems ensure greater accountability and transparency in recording and managing business data to ensure the focus is on positive business performance. Q: How big is the network of franchisees? Currently there are 120 franchise partners in the business, with 119 retail stores and close to 400 mobile vans. Q: What will it cost me to invest in a franchise? There is a wide range of business opportunities available, starting with single mobile business – a greenfield mobile starts from $150,000, including the van and GST. Q: How long is a term and can I renew? Initial franchise agreement is for five years and is then re-signed for another five years. Further five-year renewals are available.

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INDUSTRY SPOTLIGHT

CLARK RUBBER Q: How seasonal is this business and how do you manage quiet times? Clark Rubber has three key product categories on offer: Everything Pools, Foam and Rubber. The pool and associated categories are seasonal, while the rubber and foam categories form the core of our business and perform consistently right throughout the year. Q: What technical knowledge do I need? Franchisees buying or investing into a Clark Rubber store do not require specific technical knowledge or experience. Our franchisees receive comprehensive training before commencing their business and also receive ongoing training. All Clark Rubber franchisees also obtain a Cert III SPASA Pool Technician qualification, which was developed by SPASA. Q: What will I be doing as a franchisee and how do I make money? The main focus of our franchisees is to drive sales at store level across our key product categories. In addition, our franchisees operate the mobile pool-care service, taking care of their customers’ pools. Clark Rubber also supports its franchisees through the operation of the Clark Rubber e-commerce platform, with all sales from this channel being directed to franchisees’ stores. Q: How does the franchisor make money? The franchisor charges an ongoing franchise fees on gross sales. Q: How can I expand my business? Clark Rubber encourages franchisees to invest into the brand by becoming multi-site owners. This may take the form of a second or third Clark Rubber store, or a Clark Pool & Spa shop. Clark Rubber franchisees have the support and opportunity to operate multiple poolservice vehicles in their trading area, presenting another growth opportunity for existing franchisees. Q: What makes the business stand out

from competitors? Clark Rubber’s mix of products and extensive ranges make it unique in the Australian retail landscape. With its Everything Pools, Foam & Rubber tagline, Clark Rubber has become a destination store for Australian consumers. As all of our stores are owned and operated by individual franchisees, Clark Rubber is well known for its excellent customer service. Q: What innovations have you introduced in the last 12 months to help franchisees? Clark Rubber has recently introduced an automated replenishment system to help franchisees better manage stock and cash flow at store level. In addition, a sophisticated software system has been made available to all stores, allowing for more accurate pool-water testing, and therefore additional sales opportunities for franchisees. Q: How big is the network of franchisees? Clark Rubber has a network of 59 franchised Clark Rubber stores and one Pool & Spa shop Q: What will it cost me to invest in a franchise? The investment required in a Clark Rubber franchise varies, depending on the size and location of the premises from which the franchise will operate. A greenfield development can start from $420,000 plus GST and plus working capital. This investment includes all franchise entry costs, all stock, plant and equipment, fixtures and fittings. Other investment opportunities include standalone Clark Pool & Spa shops from $147,500 plus GST and service areas for onsite pool-care service from $49,500 plus GST. Q: How long is a term and can I renew? The Clark Rubber franchise agreement offers two terms of five years each. After the first five-year term, the franchisee has the option to renew the agreement for a further term of five years.

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INDUSTRY SPOTLIGHT

SWIMART Q: How seasonal is this business and how do you manage quiet times? Swimart is a seasonal business but the work never stops! As every pool owner knows, you can’t just forget about your pool in the months you are not swimming in it. So, in our network, the retail trade might take a slight dip in winter, but Swimart’s pool servicing and maintenance services keep all our franchise partners busy. Q: What technical knowledge do I need? No technical knowledge is required. With our Swimart Academy online training and extensive in-field training program, you will learn everything you need to know about running a successful pool and spa business. We would never put a new franchise partner in front of a customer if they weren’t ready, but after 35 years of experience, we know a thing or two about the industry. Q: What will I be doing as a franchisee and how do I make money? Put simply, we have two main sources of revenue: retail and service. The beauty of Swimart’s franchise model is that franchisees are not solely reliant on just one income stream. We sell chemicals, pool equipment, above-ground pools, spas and leisure products – and the list keeps growing. Onsite we service, maintain and complete

installations on our customers' pools and spas. Q: How does the franchisor make money? Being part of the Swimart group requires you to pay a monthly franchise fee. Q: How can I expand my business? Expansion can be achieved in a few different ways. You can become a multi-unit franchise, which means having more than one location. Expansion can also be achieved within your existing business by growing retail traffic and your service customer base. We have proven strategies on how to do all of this successfully. Q: What makes the business stand out from competitors? Swimart is the longest-running – and one of the largest – pool and spa groups in Australasia. Also, knowledge, tenure and expertise is key to our success. Some of our franchise partners have been with us for up to and over 30 years. That is very rare, especially for a franchise model.

drive sales to our locations. This evolution away from traditional media has generated fantastic results. Q: How big is the network of franchisees? Swimart has 76 locations across Australia and New Zealand. Q: What will it cost me to invest in a franchise? A new Swimart store can range in price depending on the size, but let’s say between $150,000 and $250,000. A mobile-only franchise costs approximately $50,000 to get started (not including the vehicle). Q: How long is a term and can I renew? The initial term is five+five years and at the end of 10 years you will have the option to renew for another five+five term.

Q: What innovations have you introduced in the last 12 months to help franchisees? Technology continues to play a major role in Swimart’s evolution. In the last 12 months, we have launched more local focused marketing campaigns and promotions to

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CONTINUED ON PAGE 84 u

SNOOZE MAKES BUYING A BED AS EASY AS 1-2-3 Everyone is different We all crave comfortable in our own unique way. When it comes to mattresses, why would one mattress feel the same for a 130kg person as it would for a 55kg featherweight? The simple answer is, it wouldn’t. Each of us have different sleeping positions, varied weights and builds, potentially different sleeping habits and health issues, the idea that one mattress can be designed to fit everyone doesn’t make sense. How could 25 cm of foam feel the same with different weights and pressures applied? This challenge alone fuels demand in the mattress & bedding industry.

Uniquely owned system How does a mattress & bedding company stand out from the rest within the industry? An ownable system that is unique to the business, and adds value to the customer experience, can help create that differentiation. At Snooze, our new Snooze Profiler® can help customers choose a bed that’s right for them. The process starts with the customers answering a few simple questions about how they live and how they sleep. Then they try the test bed, a fun way to figure out their preferred mattress-feel. It only takes a few minutes and the customer will not have to spend time testing every mattress in the store.

Customised products to individual’s need Customers desire personalised items that fit their needs. The days of one size fits all are long over. A business that offers customised product helps feed this growing demand for choice. A customised product helps with a more personalised customer experience, and may lead to stronger customer loyalty. Snooze offers a range of products that cater to this demand. One example is the SleepTailor®

mattress and base range. It’s designed with the individual in mind, especially if a couple have different ideas about how they like to sleep. Each SleepTailor® mattress offers dual feel options and independent support systems for each side.

Innovation - Convenience of technological tool An investment in innovation and a drive to adapt to the market is essential for continued business growth. Snooze has an online tool known as bedBUILDER®, that makes it easy to customise a bed and see it come to life. A customer simply chooses a headboard and base in the finish or fabric of their choice, saves it for later, or sends the design to a store to have it ordered. They can also head into a Snooze store to view product samples. With countless combinations, the choice is entirely theirs.

Visit a store to experience Snooze Profiler® for yourself, or for more information about becoming a Snooze Franchise Partner, contact Bettina Davis bettina.davis@snooze.com.au | 0423 077 844

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INDUSTRY SPOTLIGHT

JIM’S POOL CARE Q: How seasonal is this business and how do you manage quiet times? There is definitely a quieter period during winter when you first start, however we focus on building regular service runs over time that keep franchisees busy all year. The quieter times give the franchise owners some breathing space to get on top of their business tasks and processes, local area marketing, training and planning for the next season. Q: What technical knowledge do I need? Jim’s Pool Care provides all the technical training to get a new starter into the business and confident to help pool owners. We also have ongoing support programs with suppliers and regular team meetings throughout the year. A crucial part of our training is the “On the Road” program where new franchisees learn first-hand about the business. Jim’s also puts franchisees through the Cert 3 National Accreditation. Q: What will I be doing as a franchisee and how do I make money? You will be helping pool owners keep their

pools clean and safe to swim, selling a range of pool equipment while building a regular service run of happy customers. You will be responsible for invoicing and ordering stock and supplies. You will also be arranging your day around your lifestyle and family commitments based upon your goals. Q: How does the franchisor make money? The franchisor charges a monthly flat franchisee fee. Q: How can I expand my business? You can put on staff or grow to a second or third vehicle for no additional fees. You can also specialise in certain areas and move into commercial and body corporates with training and qualifications. Q: What makes the business stand out from competitors? Jim’s Pool Care has a flat fee system. We also provide a model whereby we have an on the ground franchisor in every state to support new and existing franchisees. We should also mention we are an integral part of the Jim’s Group, one of Australia most

recognised brands and franchisees can leverage other Jim’s in the areas to cross promote and refer. Q: What innovations have you introduced in the last 12 months to help franchisees? We have rolled out the latest in water technology that speeds up the onsite water-testing process and also utilise cloudbased invoicing. Q: How big is the network of franchisees? We now have 104 franchisees around Australia in the Jim’s Pool Care division. Q: What will it cost me to invest in a franchise? $69,000 plus vehicle and working capital. Q: How long is a term and can I renew? Jim’s has moved to a 20-year agreement to give all new franchisees certainty and with zero costs to renew.

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LOCAL POOL INSPECTORS

Q: How seasonal is this business and how do you manage quiet times? House sales occur all year round, with spring the peak selling season, however rentals must be inspected every two years and shared pools (hotels, motels, resorts etc) annually, so there is always a demand for our services. If the property has a pool, it has to have a current pool safety certificates. Q: What technical knowledge do I need? To qualify to be a pool safety inspector you must attend an accredited course, which we organise. It is conducted over three days. Q: What will I be doing as a franchisee and how do I make money? As a licensed franchisee, it will be your responsibility to conduct safety inspections to swimming pools as required by law and either pass them or advise the owners what is required for the pool to comply. You are paid directly by the owner, not by us, so you have the cash flow going directly to you. Q: How does the franchisor make money? After the initial payment of the franchise

fee, there is a $20 royalty payment for each pool. The more pools you inspect, the more royalties you pay, so it’s in our interest to keep you busy. Q: How can I expand my business? This business is based only in Queensland. Generally there are between 11,000 and 15,000 pools for each franchise area, so with the right marketing there is no end of expansion. On top of that, Queensland Building and Construction Commission figures quote there are a minimum of 10,000 pools being built per annum. When this all first kicked off there were 340,000 pools registered in Queensland. It is now over 440,000, so as you can see it just keeps on growing as will demand for inspections. Q: What makes the business stand out from competitors? What makes us stand out from other franchises and makes us unique is the fact we are one of the very few franchises that offer a service that is compulsory by law. There are only 22 franchises available state-wide to give everybody a comfortable turnover. No more territories

will be added under current legislation. We also offer interest-free loans to qualified applicants. Q: What innovations have you introduced in the last 12 months to help franchisees? We've done TV and radio advertising as well as a rep calling on real estates, body corporates and rental managers. Q: How big is the network of franchisees? Currently we operate from the Hervey Bay area down to the border, with vacant pockets in between. Expansion is to include the whole state as franchisees come on board. Q: What will it cost me to invest in a franchise? The price for a franchise is $25,000 irrespective of any position in the state. Everyone is treated equally. Every area has approximately the same number of pools. The only difference is some are higher turnover areas than others. Q: How long is a term and can I renew? The term of the agreement is five years with a five-year option. n

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INDUSTRY SPOTLIGHT

SAFE AND SOUND Get the lowdown on two franchises operating in the safety industry.

SAFETY QUIP

Q: How long has it been trading? We’ve been 26 years in business and franchising for 16 years.

Q: How do you approach the franchisee/ franchisor relationship? The franchisor takes a consultative approach with franchisees for all major decision-making, provided there is no deviation from the core model proposed. Which helps to explain why the average franchisee tenure is more than 10 years.

Q: Who owns the business? Gary and Joan Shearer, Patrick Evans and Trevor Harch.

Q: How many people are in the head office and regional support teams? Seven.

Q: Who is the franchisor? Gary Shearer.

Q: Who deals with the franchises most on a daily basis? Our general manager and our marketing and merchandising support team.

SafetyQuip franchisees distribute via multichannels to market PPE (personal protective equipment), site safety equipment and safety services to the SME segment of the market.

Q: What is the company’s mission statement? That our customers and their employees shall return home safely from work every day.

APPLIANCE TAGGING SERVICES

ATS protect workplaces and save lives by providing nationwide electrical safety testing and fire safety testing services to over 26,000 locations large and small. Q: How long has it been trading? It started in 2002, franchised in 2006.

Q: What about awards? Twice ranked in BRW’s 50 fastest-growing franchisees. Also named Queensland Franchisee of the Year and South Australia Franchisee of the year. Q : Who is your top-performing franchisee or franchisee of the year and why? Our top performer is our Sunshine Coast franchisee, followed closely by our Baywater branch. Both franchisees understand the importance of following the business model without deviation.

Q: What makes your business a good investment?

Q: How do you approach the franchisee/ franchisor relationship? There are 20 in the ATS national support office who provide administration, operations and technical support to our network of franchisees.

Q: Who is the franchisor? Our mission is to provide all businesses Australia-wide with a professional and costeffective solution to their electrical safety compliance through the development of our own innovative testing equipment and software; and to provide all customers with the highest standard of customer service.

Q: Who deals with the franchises most on a daily basis? Given the way our model works, our entire team works with our franchisees daily. Whether it is a member of our team assisting with a technical testing issue, a team member scheduling a client for servicing, or an administration team member preparing an invoice, each franchisee has regular contact with our whole support office. That’s one of the things that sets our franchise system apart from so many others.

Q: What is the company’s mission statement? We see every ATS franchisee as an integral part of ATS ability to deliver a national service offering, and so much of our relationship is based upon “compliance” in all aspects of the business.

Q: What makes your business a good investment? ATS takes care of nearly all the back-office side of the business, including all invoicing and debt collection, which frees up our franchisees to focus on the important areas of their business – securing new clients and

Q: Who owns the business? The franchisor, Ainslie Allen.

The longevity available. Five+five+five-year terms. And when on-selling, the franchisee sells five+five+five-year terms.

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delighting current clients. ATS franchisees’ investment in their business is between $55,000 and $85,000 and the business can be run solely by themselves, or staff can be engaged as the business grows. Many of our franchisees achieve excellent ROI while maintaining a great work-life balance. Q: What about awards? ATS won the FCA Emerging Franchise System of the Year in 2011 which was a huge honour. In 2013, an ATS franchisee in Queensland won the FCA Franchisee of the Year (two or fewer staff). Q : Who is your top-performing franchisee or franchisee of the year and why? Our 2017 franchise of the year are longstanding ATS franchisees. Megan and Ken Black established their ATS franchise in Canberra in 2007. They consistently receive amazing feedback from their clients, and their revenue is growing year on year. Their selection for this award was based on achieving the best outcome in the areas of communication, engagement, customer service and local area marketing.

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INDUSTRY SPOTLIGHT

A CONVENIENT FUTURE No longer seen as just an expensive alternative to supermarkets the local convenience store offers time-poor consumers a viable shopping option for last minute grocery purchases. However times have been tough, so in challenging trading conditions what’s the key to success in this industry?

nalysis firm IBISWorld published a report in January 2019; it focuses on those outlets primarily selling convenience goods and does not include service stations with add-on convenience stores.

The report shows households have kept a tighter grip on their wallets and stores have needed to shift their merchandise focus and pricing to ensure their offers are competitive. Major supermarkets have encroached on the convenience space and there has been a decline in demand for tobacco products. However franchised chains, particularly those with fuel retailing attached, have been better placed to face the challenges. Take 7-Eleven, which holds the top spot in the sector with 9.5 per cent of market share. The business has refreshed its store design, broadened its service offer, introduced a focus on fresh and healthier foods,

and talked up its sustainability program. Report author Bao Vuong writes “7-Eleven has strengthened its industry position over the past five years.” Vuong notes the differences between capital city, franchised outlets and the regional independent milk bars. “Individual 7-Eleven stores tend to earn higher revenue on a yearly basis compared with milk bars and other traditional convenience stores as they are usually located in prominent urban centres.” Predictions for 2019-24 show a drop in revenue, and profit margin. But there are growth opportunies in the sector, suggests Vuong, if operators take the following steps: collaborate with suppliers, bring in store innovation and consumer offers, and develop brand differentiation. “Further growth opportunities will likely stem from firms expanding their range of fresh and healthy food items, engaging with smartphone users and developing

KEY STATISTICS IN 2018-19

BRAND MARKET SHARE

MOST COMPETITIVE PRODUCTS

PRODUCTS SHARE IN 2018-9

REVENUE: $4.7BN PROFIT: $273.9M WAGES: $439.1M BUSINESSES: 8114

TAKEAWAY FOOD NEWSPAPERS AND MAGAZINES HEALTH AND BEAUTY ITEMS CIGARETTES

applications to boost sales, implementing self-service check-outs with contactless payment technology, introducing rewards programs and offering essential groceries in bulk.” The sector has to embrace the changes and find ways to gain market share. For instance, gaining ground on post offices and newsagencies by offering lottery ticket sales and postal services. If networks tackle the changing tastes of the population by introducing healthier ready meals there is likely to be an impact on store size if larger coolrooms are required. Vuong is clear there are some simple steps to take in-store: Quick, easy service Clear store layouts Attractive merchandise displays Additional service.

7-ELEVEN:9.5% LUCKY 7: 2-3% NIGHTOWL: LESS THAN 1%

TOBACCO 37.5% BEVERAGES 25.6% SNACKS/CONFECTIONERY 10.5% COMMUNICATIONS/TRAVEL/CAR ACCESSORIES 9.1% GROCERIES 8.1% READY TO EAT FOOD 6.3% PRINTED MATERIALS 1.9%

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EXPO

SHOWTIME! Fresh concepts and established brands will be showcasing their business opportunities at the Sydney Franchising Expo.

nyone considering being their own boss will find more than 100 exhibitors to review. There will also be legal and financial advisers available and inspiring speakers at the free seminar series.

“It’s a new year and maybe people are considering taking the leap into investing in their own business,” says exhibition manager Fiona Stacey. “Attending the Franchising Expo is a great way to find out what you need to know and meet real people who can explain the ins and outs of their business venture.

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“And visitors are often inspired by business ideas in industries they had never even considered!” An expo is an easy way for potential buyers to discover exciting new brands or to familiarise themselves with the people and business behind household names, with opportunities priced from budget to premium. The Sydney Franchising Expo will showcase a wide spectrum of exhibitors, from established brands such as Aussie, Snap, GutterVac, Ogalo and Poolwerx to up-and-coming business concepts like Flatpack Assembly Services, Home Instead Senior Care, Experimac, Dippin’ Dots, Supatramp and NanoShield. Others such as Zarraffa’s Coffee and Okami Restaurant are seeking NSW-based franchisees after business success in their home states. Stacey adds that visitors to the show will not only benefit from meeting franchisors and franchisees on the stands, but also from listening to experts and advisers speaking in the free seminar program. The Franchisee Success panel sessions presented by the Franchise Council of Australia are always popular, featuring successful franchisees and franchisors. “Hearing from franchisees in person gives a great insight into the challenges and opportunities of owning a franchise,” says Stacey. “They are very frank about their experiences – what has worked well for them, and what hasn’t!” Franchisees, franchisors and advisers are all on tap for the interested potential buyer to find out more.n FEB/APR 2019 | 91 | WWW.FRANCHISEBUSINESS.COM.AU

Inside Franchise Business readers can register to visit the Franchising & Business Opportunities expo for FREE at www.franchisingexpo.com.au by using promo code FMG. The expo runs March 23-24 at ICC Sydney Darling Harbour, from 10am to 5pm daily.

PROPERTY

HOT PROPERTY Keen to turn a killer opportunity into a thriving business? As the old adage goes, it’s all about location, location, location. By Nick Hall

he right site selection can make or break a business opportunity, and as the popularity of rural real estate grows and the country’s metropolitan centres hit boiling point, it may surprise you which regions are ripe for the picking. The factors that influence a location’s profitability are many and varied, but all play an equally important and significant role. Understanding the brand’s customer base, the demographics that dictate the region’s buying demand and the proximity to supply channels are all critical elements that must be considered when assessing a franchise opportunity. Regardless of the proposed business’s industry or offering, however, access to a high flow of traffic and customer visibility will be pivotal to the overall prosperity of a site, and landlords know this. Rents in high footfall areas such as shopping centres and CBD spaces are steadily rising,

however, the impending results of the parliamentary inquiry into franchising threaten to swing the power back into the hands of retailers. With the NSW government pledging a renewed focus on industry and development, prospective franchisees are well poised to make a move into the world of business ownership, with Commercial Property Guide’s Stephen Rose suggesting entrepreneurs widen their search. “When it comes to industrial property there is a ring of sweet spots around the 20km distance from the Sydney CBD,” Rose says. “This seems to be the point at which most property seekers believe the locations can provide the balance between quick delivery times to the majority of the metropolitan population and the lower-cost industrial rents of the slightly further out suburbs, compared to inner city industrial rents.” As the lure of prime real estate at an affordable price shifts the focus from city centre to outer reaches, where are the NSW hotspots prospective franchisees should be setting up shop?

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WESTERN SYDNEY

With a population now topping five million people, the iconic Sydney skyline has been no stranger to construction cranes and towering scaffolding structures, with its western suburbs the latest region set to reap the reward of increased development. In its 2017 state budget, the NSW government committed $72.7 billion over a four-year period to help boost the area’s road and public transport projects, reducing commute times and easing congestion. Projects such as the $20 billion, 33-kilometre WestConnex motorway will link the area with Sydney Airport, granting

domestic and international guests easy access to the thriving cultural hub. The ongoing infrastructure developments are expected to significantly bolster both residential and commercial property values, akin to the boom seen in Lilyfield and Rozelle following the opening of the Anzac Bridge in the mid-’90s. Rose suggests the increase in development and an expected population growth made Western Sydney, already Australia’s third-largest economy, a primary target for eagle-eyed investors and entrepreneurs. “Population growth is the main reason for rising commercial property prices,

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both for lease and for sale prices,” he says. “The firm commitment to the Western Sydney airport has started an upward move in the wider precinct commercial property prices, particularly industrial property prices. This is as much in anticipation of the improved road transport access as the airport itself. The strategic thinkers are making plans now.” Interest in Western Sydney is steadily rising, with the areas of Penrith, Liverpool and Parramatta expected to attract a further million residents over the next 10 to 15 years, thanks to community-centric developments such as the Eastern Creek Quarter.

PROPERTY

EASTERN CREEK QUARTER Located within the Western Sydney Parklands, Eastern Creek Quarter is the latest project from perennial developers Fraser Property Australia, and features an innovative dining precinct set to supply visitors and locals with a fresh market offering. The space will house a range of speciality retail stores and services, an entertainment precinct, children’s play area and other community amenities. “At Eastern Creek Quarter, we’re looking to create the most talked about place in Sydney’s west. This means creating a vibrant, unique and exciting food and beverage offer in the most comfortable, sustainable environment imaginable,” says Tim Moore, general manager, retail leasing, Frasers Property Australia. Like many developments within the Western Sydney catchment, the project leverages the area’s predicted growth and increased accessibility as key market assets, with the new development marketed as just a 15-minute drive for 330,000 people and a 30-minute drive for another 1.2 million Sydneysiders. Driving won’t be the only option for Western Sydney visitors, however, with the first stage of Parramatta’s light rail project expected to open in 2023.

At Eastern Creek Quarter we’re looking to create the most talked about place in Sydney’s west.

PARRAMATTA The introduction of the Parramatta line capitalises on the $2.7 billion Parramatta Square redevelopment that is set to revitalise the area with premium-grade offices space, multi-level retail opportunities and civic facilities that showcase the latest in contemporary design. Developed to provide a food and beverage offering that runs 18 hours a day, seven days a week, the Parramatta Square project is gaining national attention from food service providers and culinary connoisseurs alike. The 290,000sqm retail development is being constructed to accommodate the surging influx of people set to join the region over the next 20 years. The Metropolitan Plan for Sydney 2036 targeted an employment capacity of 70,000 jobs for Parramatta by 2036, strengthening the area’s role as Sydney’s premier regional city and second CBD. According to a study by professional services firm, PwC, commissioned by the City of Parramatta, economic growth within the region is expected to double in the years 2016 to 2021, including an additional $1.2 million daily retail spend. With more than $10 billion worth

of investment in economic and social infrastructure expected to be completed in Parramatta over the next three years, the total workforce is set to rise to 186,000, up by 29,000 in 2016. Compounding this, an additional 41,000 people are predicted to call Parramatta City home by 2021, a growth that nearly doubles the national rate. Rose says the increasing residential demand and commitment to boost infrastructure is causing a shift in market value, forcing commercial prices to slowly rise as the wealth of projects near completion. “Small and medium-sized industrial developments have been widespread,” he says. “The commercial property market functions exactly as the economics textbooks says free markets operate. Demand from population growth causes commercial rents to rise. These increases in lease costs encourage more investment in industrial property to take advantage of the high rent returns. Eventually rents stop rising. We’ve seen this in Sydney in recent years. For a while, the best option was to be an owner-occupier then as new properties hit the market, renting becomes the preferred option.”n

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PROPERTY

WOLLONGONG

Located on the southern fringe of the CBD, Wollongong has exploded in popularity over the last two years, due primarily to the growth in areas such as Port Kembla and Shoalhaven. Retail in the Wollongong region has remained steady over the last decade, however, the recent inconsistency in sales growth for the country’s primary discount department store (DDS) retailers has sharply effected tenancy. In its Sub-Regional Shopping Centres: A Case of Middle Child Syndrome? report released this year, property group CBRE suggested that a healthy mix of tenants and a focus on servicebased offerings were helping to boost regional retail market share. “Our analysis indicates that neighbourhood shopping centres – underpinned by their relatively secure income profile, which focuses on food and convenience – are now being priced more sharply than sub-regional centres, which is a historical anomaly,” CBRE head of research Bradley Spears says. “Meanwhile, larger landlords are heavily investing capital into regional shopping centres to ensure their

ongoing allure to shoppers.” Developments such as the Warrawong Plaza in Wollongong’s south highlight the importance for centres to revitalise the local community through a diversification of specialist offerings. “While some sub-regional shopping centres may be faced with discount department stores either vacating or shrinking their footprint, this presents an opportunity to landlords to redefine their asset as a centre for service, convenience or entertainment,” CBRE associate director, retail investments, Nick Willis says. Earlier this year, brands Another Burger

Joint and Sugar Rush were added to the Warrawong Plaza centre, complemented by the announcement QSR offering Rashays had submitted a development application for a 181-seat restaurant with the Wollongong City Council. As the Port Kembla and Warrawong areas continue to develop as cultural, food- and service-based destinations, the sharp increase in popularity and population in Wollongong looks certain to continue.

GRIFFITH

Further inland is where true rural opportunities lie however, with

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demographer Bernard Salt suggesting Griffith is a region experiencing rapid growth. Speaking at the National General Assembly of Local Government in Canberra in 2018, the managing director of The Demographics Group told delegates that the region charted well in the key metrics of employment levels, growth and economic diversity. Situated in an area easily accessible from places such as Adelaide, Orange, Sydney and Bathurst, Griffith has become more than just a truck-stop and refuel destination, despite its proximity to the Hume and Newell Highways. Quest Serviced Apartments franchisees and husband-and-wife team Josh and Fleur Nadzielski saw an opportunity to develop their network in 2016, when they packed up and relocated to Griffith. “We came out to Griffith, and everything stacked up,” Josh told Inside Franchise Business in June. “The thing that I like best about moving to the region is that the community is so open and friendly. You notice who’s a local and who’s not when you

walk down the street and see who is on their mobile phone.” The Nadzielskis have benefited from what Salt suggests is a strong resurgence in the number of older people making the move to regional centres, in particular the baby boomer generation. "I expect there will be a shift as more rural regional lifestyle communities come to the fore,” he told the ABC in April. "We'll start to view regional Australia through a different lens." The rising number of Australians opting for a tree-change is driving new industry markets in regional areas, with Griffith experiencing a wave of new openings in the last few years. Nadzielski says the cost of living, coupled with the community-focused lifestyle made the area a goldmine for potential investors. “There is the opportunity in the regional areas to buy land, and the prices are quite different to Sydney or Melbourne,” he says. “There are some great coffee shops, and people stop and ask how business is going. They are genuinely curious.”

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FINAL THOUGHTS

While there is no doubt inner Sydney still presents the strongest opportunity for high footfall rates, added pressures such as the cost of rent and proximity to competitors can make the area unrealistic for some prospective franchisees. A commitment from the NSW government to provide greater accessibility through public transport and infrastructure has seen more developments spring up in the outer suburbs of western and northern Sydney. As population grows and development continues in areas such as North Ryde and Parramatta, prospective franchisees should consider if relocation is a potential catalyst for future success. Additionally, a rising trend of retirees and baby boomers making the move to regional areas has brought new industry opportunities to welcoming regional areas, with growth expected to steadily increase over the next decade. n

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FRANCHISE BASICS

CENTRED ON SUCCESS You are about to make one of the biggest investments in your life, so how do you decide where to locate?

f you are buying a retail franchise, the site decision is probably the most important decision you make, after agreeing to join the franchise.Shopping centres are one of the main options to consider, compared

The geo-logistics expert

Peter Buckingham, managing director, Spectrum Analysis While they are consistent and reasonably predictable as a huge generator for retail sales, shopping centres have some limitations, such as usually higher rentals as well as set lease periods with normally no lease options. WHAT MAKES A SHOPPING CENTRE A GOOD OPTION FOR A BUSINESS? The first thing in locating a good shopping centre for your business is confidence that there are enough people in the surrounding area who will want to and can afford to buy your product. The demographics of the area are the first place to start, and you need to ask yourself: • Who lives in this area and are there enough people to meet my needs? • Are they a suitable demographic for our goods and services? • Can they afford what we are trying to sell? A franchisee needs to understand the demographics of the trade area around their proposed store, and how they fit the clients they hope to attract. One of the best sources of this information is the Australian Bureau of Statistics website (look for Census and Quikstats). You can look up any area by suburb or postcode and gain a good understanding

with a shopping strip, a homemaker centre or a freestanding location. Three industry experts reveal some of the critical issues that need to be considered before signing up to a shopping centre site.

of its demographics. If there are natural barriers, a coastal site bordered on one side by the ocean for instance, there are fewer prospective shoppers and it becomes a restricted market. A major shopping centre, to be an attraction, must have a good selection of stores and entertainment these days to attract the public to it. This can be thought of in terms of: • Anchored by a major department store like Myer or David Jones • A range of mini majors – Target, Big W • At least one major supermarket • A large selection of specialty stores • Great food options – not just the standard old food court • Theatres and possibly an alfresco or casual dining precinct Smaller shopping centres should have some of these features but will inevitably attract less foot traffic. HOW TO EVALUATE A SHOPPING CENTRE 1. Size of the shopping centre and what is the GLAR, MAT and pedestrian count? (GLAR is the gross leasable area retail of the shopping centre in square metres; MAT is the moving annual turnover in dollars; pedestrian count is the total pedestrian movements in and out of the shopping centre.) These can be obtained independently from the Property

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Council in data they sell on shopping centres, or the leasing agents should be able to provide this to you. 2. Are the shops being offered the correct size? 3. Are you in a suitable precinct, matching you with others in the same market? 4. Who are your near neighbours – do they benefit or hinder your brand? 5. Is the pedestrian traffic strong in the area being considered? 6. Are you paying the correct rent for what you are selling? WHAT MAKES A SUITABLE SITE? In setting up your new business, there must be a match between the type of location and the product you sell. There are two clear options: Is the product a high-impulse item? Or is it a destination product – the customer has an intent to purchase before they start shopping? One way to look at this is as a continuous scale – where then does the business sit on the line? IMPULSE VS DESTINATION • High-impulse sites are required for high-impulse products and as a consequence will have high rents. • High-destination, low-impulse products can be sold in sites that are far less visible with lower rentals.

FRANCHISE BASICS

HIGH IMPULSE

LOW IMPULSE

LOW DESTINATION HIGH RENTALS

HIGH DESTINATION LOWER RENTALS

LOW $ PURCHASES

HIGH $ PURCHASES

HIGH-IMPULSE ITEMS

High-impulse items are usually low-cost, spontaneous purchases such as buying a carton of milk, some chocolate or a newspaper. The customer may make some decision where they go, but convenience normally drives this purchase. When we look at the most high-impulse business we can imagine, think of a beggar or a busker. In these cases, they are very mobile and are able to move to the best traffic flow at no cost. As the cost of the goods you are selling increases,

you move further along the line towards low-impulse/ high-destination.

HIGH-DESTINATION PURCHASES

If the goods wanted are reasonably expensive and the customer probably has predetermined that they wish to buy the item, then that is a high-destination purchase.

GIVING A VALUE TO THIS IMPULSE VS DESTINATION RATIO Your business can normally be addressed as X per cent impulse; Y per cent destination and I shall give some examples. GIVING TO A BUSKER

100% IMPULSE

0% DESTINATION

ATTENDING THE BALLET

1% IMPULSE

99% DESTINATION

BUYING PETROL

80% IMPULSE

20% DESTINATION

MCDONALD’S

60% IMPULSE

40% DESTINATION

HIGH-CLASS RESTAURANT

20% IMPULSE

80% DESTINATION

BUYING SMALL ELECTRICAL GOODS

70% IMPULSE

30% DESTINATION

BUYING A PLASMA SCREEN TV

30% IMPULSE

70% DESTINATION

As you can see, the more premeditated the purchase, the higher the probability you will look up where you want to go, not just spontaneously make a purchase from the first store you see. Finding the right spot in a shopping centre is highly important, and not sufficiently researching the footfall can result in a poor site selection. Researching this is simple, but it takes time. You can buy and use small people-counters and then stand and measure in five- or 10-minute time slots the number of people walking past the proposed location. Go and do that in a few different areas

in a shopping centre, and gain clarity on which are the busy and quiet areas. The devil is in the detail, and the negatives of shopping centres are the rent and the rental increase clauses, often at around two or three per cent above inflation. What is going to happen at the end of the rental/lease period? Shopping centres are not obliged to renew leases, and they have significant powers to enforce major upgrades or reimaging the store – at your cost.

THE DECISION The rental you pay for a property is probably defined by the owner’s view on whether the premise has high traffic flow and high visibility. What you need to do is pay the appropriate rental for the appropriate store, and if you have a highdestination type product, then you do not want to be paying top rental for the peak corner in the shopping centre. And there is no point being down at the back of the shopping centre paying cheap rental, next to the discount rug bazaar, if you have high-impulse products such as phone cards, sandwiches or other food items.

The actual rental you pay will be determined by the market and the process of negotiation. If you are paying a correct market value for the store, which may be assisted by the franchisor’s representative or an expert retail leasing company such as LeaseWise or Lease1, and if you have a viable product or concept to sell, you should have a sustainable business. If, however, you have found a totally unsuitable store, then you’ll be battling to make money. Even if the franchisor is engaged in sourcing the site and negotiating the lease, the ultimate responsibility still falls on you, the potential franchisee. In the end, it is your money on the line.

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The leasing expert

James Coffey, CBRE, NSW leasing

Trends are stepping away from the old-school thinking “build it and they will come”. Today it’s about creating engaging community spaces, providing essential service and non-discretionary retailers to provide additional traffic. The addition of medical centres, gyms and childcare facilities gives consumers more reasons to be there on a daily basis. The larger-format retail centres are looking to diversify product, and the lines are blurring a bit. I think that personalisation is too broad for shopping centres which need to be something to everyone. It’s more about retail theatre – improving offline to compete with online. It’s all based around theatre – that is, providing a better customer experience. If you think about food retailers, can you see things being made – flaming woks, doughnuts tumbling off a conveyor belt? This dramatic element went away for a while, but it’s coming back. Shopping centres can create theatre to separate your business from the crowd – with social media as your window – and allow you to take advantage of more opportunities. A good fitout is going to be well received. No two sites are the same, so there needs to be design control as well

as individual design. A franchisor team needs to be looking at the market, the centre, the position of the store and then customise, while also keeping the brand standard. The consumer has pushed back on that cookie-cutter effect. This is even a regional issue now. Why are people lining up at one cafe and not another? Is it the beans? The barista? The fitout? For franchisees, it’s prudent to analyse the centre, to consider the speciality of the particular centre and whether or not that aligns with the customer perception. Franchisees need to investigate how shopping centres encourage customer visits, what is the centre’s point of difference, how effective is social media? Franchisees definitely need to make sure social media is an important focus, because it’s the new shopfront. Franchisees always need to have an understanding about what will happen during their lease term, so it is crucial to ask the landlord to disclose any plans. In a new or redeveloped centre, it’s important to know if the franchise outlet will be in a brand-new area with significant demand or in the second stage of the development. There’s reason to be cautious with shopping centre owners that are heading towards more environmental awareness because of the costs of fitouts and materials.

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Star ratings require certain materials to be used. Some larger owners do have environmental targets, like Barangaroo in Sydney’s Darling Harbour. This means additional solar panels, no water wastage – even control of plastic cups and straws. There can be operational costs, So you definitely have to be aware as a new franchisee. The food presence is continuing, but there has been a bit of a move away from the traditional franchise model. Centre owners are looking for independent operators that will drive the business. Food and beverage (F&B) drives traffic, and shopping centre owners often do like franchised food brands because they usually present well and give consumers a lot of options. But centre owners are now looking to make sure they understand their critical mass of F&B, and pick the cream of the crop. There’s also a trend for centres going outside and developing more of a community space with a focus on amenities, soft play areas and interesting spaces for F&B. We’re also seeing the activation of laneways, with a services hub for the area to support public infrastructure.

FRANCHISE BASICS

The leasing manager

Nick Patrick, national manager of leasing and development, Soul Origin

Shopping centres are deliberately becoming more focused on entertainment and food.This means that throughout any given lease term, there are likely to be significant changes in the level of competition as well as the number of precincts available for shoppers to choose from when it comes to dining options. A few recent redevelopments have seen centres expand from one or two dining precincts (traditional food courts and fresh food precincts) to as many as five distinct and separate dining and entertainment precincts. The impact that this has on shopper behaviour and patterns needs to be

carefully considered when selecting appropriate locations in such large and competitor-heavy centres. The question also needs to be asked, will our business be sustainable in the long term with so much competition for “share of stomach” expenditure? Such major expansion and diversification of the food catering category means we as retailers need to be very considered and careful when selecting the right location. While we are very specific on locational requirements, we also believe it is the sites you say no to and walk away from when a sensible commercial arrangement cannot be reached that result in a healthy store network. We have been offered plenty of locations over the years that were right for the brand and had franchisees ready

to take them on, however, we have walked away because we weren’t able to reach sustainable commercial terms. So what sort of research should a franchisee do themselves? Our franchise partners are required to spend time in an existing store with existing franchise partners, complete a comprehensive site-specific business plan and seek independent financial advice prior to proceeding with any new location. By ensuring there is thorough due diligence on the franchisee’s part, we make sure that any incoming partner is aware of all the potential risks and the hard work involved in entering bricksand-mortar retail and the shopping centre environment. n

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YOUR FRANCHISE SEARCH With about 1120 franchise systems in Australia, where do you start to seek out one that is perfect for you? By Carolyn Dufton, Franchising Plus

he obvious place to begin is to calculate your initial entrylevel investment. A common pitfall is for potential franchisees to ignore or underestimate the need for working capital to support the establishment phase of the business. An accountant can assist in assessing this amount as everyone’s situation differs.

Once you are clear on how much money you have to spend, online research is a good next step to see what types of franchises are available and the required investment level. Most franchises advertise on social media platforms in addition to being featured on the major franchise websites, such as franchisebusiness.com.au. Search engines will display a myriad of franchises for sale when prompted. There are business brokers that specialise in franchises for sale, although their franchises tend to be in the higher investment brackets. It can be prudent at this point to seek advice from a franchising specialist to provide guidance on the different types of franchise systems available and the pros and cons of the system, as franchising can be a minefield for the uninformed.

In Australia, franchising is regulated by the ACCC. The Franchising Code of Conduct is a mandatory industry code which serves to protect franchisees and provide security within a franchise. A franchising expert can help you navigate the process and assess your substantial outlay. You will be advised to consider: • The entire investment, in terms of franchise fee vs set-up, fitout and stock costs. An initial higher investment level can reflect the level of potential return and profit or the fact that the fitout costs and initial stock are costly. The Griffith University 2016 Franchising Australia report indicated the average retail startup cost to be $287,500, with a franchise fee of $31,500. Non-retail startup costs were $59,750, with a franchise fee of $28, 000. • Is a franchise on a permanent site appealing? Leases, outgoings and restrictions need to be considered, and sometimes a mobile or homebased business may be more attractive. • Are you risk averse or prepared to spend more to possibly gain much more? • Do you want to buy an existing business or start in a new

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FRANCHISE BASICS

HOW TO BE EFFECTIVE IN

FRANCHISE BASICS

•

• •

•

territory or site? An existing franchise will usually be bought from the existing franchisee directly. There will be a fee for the franchise plus the goodwill component and stock and equipment where applicable. The franchisor’s approval will be needed for your application, even though the franchisee will be eager to sell. Buying an existing franchise is a complex process and expert advice is highly recommended. Do you wish to work part time, flexible hours or full time? You are your own boss and are responsible for your success, providing that the system you are in is not flawed. A flawed system is one where it is challenging to derive a profit. A franchising expert can assist in establishing the merit of the franchise. Do you want to buy yourself a job or run a business? There is no wrong or right answer to this, but it is important to be clear from the outset. If you buy a lawn mowing or handyman franchise, for example, it is usual for the franchisee to be hands-on. Do you want to include your family in the franchise? The idea of providing

•

work for your offspring could be attractive or – on the other hand – a nightmare. Be clear on why you are buying a franchise. Just because you love coffee doesn’t mean that you have to buy a cafe. Be realistic, not romantic, about the industry and business you are considering entering. Do you want to have a business in a shopping centre? While there’s no denying the attraction of having continuous passing trade, but you could find yourself beholden to a shopping centre god and a franchisor god. Is one god enough? Avoid the trap of falling in love with one brand. Many franchisees buy from the heart, commit to research on only one brand from the outset and regret the decision later. Shop around in the same industry and explore other industries too. Experience is rarely needed in a chosen field and training is given, so be brave in seeking “outside the box” options. Beware parting with any prepayment that isn’t 100 per cent refundable before

the disclosure document and franchise agreement have been provided. Seek expert advice before handing any money to a franchisor. Once you have found your perfect franchise, you need to undertake due diligence and research. Don’t feel pressured to rush the signing and payment process. By law you have a minimum of 14 days before you can sign and pay but remember it is a minimum, so you can take as long as you need. Before committing to a franchise you need to: • Feel confident that you have the right personality type to be part of a franchise system. While you are certainly your own boss in a franchise business, you need to accept that the franchise model will offer a tried and tested system which you should follow. It is likely that you will be restricted to the types of product and services to be offered. Can you live with this? • Shop around for finance and have the acceptance in place before you get to the stage of appointing franchising advisers. • Be provided simultaneously with a

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current disclosure document and specific franchise agreement by the franchisor for thorough review. Despite the Franchise Code of Conduct’s clear directive with this process, it is common practice for a prospective franchisee to be issued a draft non-specific franchise agreement. An adviser cannot provide an opinion without the specific finalised documents. • Contact current franchisees and former franchisees and ask for their experience in the franchise. Their contact details must be provided in the disclosure document. You have the right to contact anyone you wish to contact, not just names given to you by the franchisor. It is standard for the franchisor to notify the franchisees prior to your contact so that the franchisee knows you are a bona fide approved prospect. • Become a detective. If you are buying into a well-known brand, ask everyone you know for their thoughts and opinions on the brand, the service, product and general customer experience. Google the brand and research any adverse news reports or glowing recommendations. • Research your territory or site. If you are

responsible for selecting your own site premises and are not being provided with the franchisor’s assistance, this is in itself questionable. Reputable brands are experts in site selection and have the experience to guide or even insist on a suitable site. Site selection can be onerous and some franchisors steer away from being involved. There are mapping companies that specialise in franchise site selection and an expert opinion should be sought to ensure you select the best possible position. Location, location, location is paramount in business and real estate. There are many high-calibre, ethical and successful franchise systems in the Australian marketplace, so take your time to find that perfect franchise for you. n Carolyn Dufton is an experienced franchisor and franchise consultant. Formerly a franchisor for 10 years, she now runs Maggie Moo Music. As a consultant, Carolyn is focused on best practice, and evaluates franchises for potential franchisees.

It can be prudent at this point to seek advice from a franchising specialist to provide guidance in the different types of franchise systems available and the pros and cons of the system, as franchising can be a minefield for the uninformed.

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FEB/APR 2019 | 107 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS

GETTING IT RIGHT

FROM THE START

Why due diligence is the best investment you can make prior to buying a franchise.

By Catherine Sedgley, Coleman Greig Lawyers

urchasing a franchise can be a daunting and unknown process. More often than not, franchise buyers are given a large bundle of documents to review, are expected to be familiar with the Franchising Code of Conduct and are required to make a large financial investment.

Too often am I seeing franchisees bypass the vital task of conducting their own due diligence prior to buying a franchise on the basis that it is too expensive, or that it delays the sign-up process. Instead of viewing due diligence as an expense to the business, franchisees should view the process as an investment, as it provides critical knowledge required to make calculated decisions.

WHAT IS DUE DILIGENCE? Due diligence is the extensive appraisal of a franchise and the franchisor, undertaken by a prospective franchisee. A due diligence audit will often reveal the following information: • Current assets and liabilities of the franchisor; • Current and prospective litigation matters involving the franchisor, a director of the franchisor or an associate of the franchisor; • Current intangible assets that

the franchisor, or an associate of the franchisor may possess (such as goodwill and intellectual property); • Current supply arrangements and contracts. Often, it is not until a dispute arises between the franchisor and the franchisee that a strong case for undertaking a comprehensive due diligence process becomes apparent. Unfortunately, by this time it can be too late. Conducting a thorough due diligence process at the outset provides the franchisee with the opportunity to consider whether their purchase is good value for money, whether they are properly equipped to combat inherent challenges faced by the franchise, and whether the franchise model meets their expectations. This process also provides potential franchisees with the opportunity to ask any difficult questions that they may have prior to purchasing the franchise. In recent months, I have received several inquiries from franchisees looking to exit their franchise agreement midterm. Some themes common throughout these inquiries have been that the franchisee did not undertake a thorough due diligence process, that they were quick to sign the franchise agreement, that they did not fully appreciate their obligations

under the franchise agreement or that they were not aware that they were entitled to negotiate the terms of their franchise agreement. As a result, their initial dreams and expectations about the franchisor, the franchise network and the operation of their own franchise have not been met.

TIPS FOR DUE DILIGENCE Here are some tried and tested guidelines to assist you with the due diligence process that Coleman Greig advises prospective franchisees to undertake prior to the purchase of a franchise. 1. CHECK FOR ANY UPFRONT AND/OR CONTINUING FEES In relation to the franchise agreement, it is normal practice for a franchisor to charge a franchisee an array of upfront fees, including an initial franchise fee, training fees for managers and key employees, fitout costs and an intellectual property

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FRANCHISE BASICS licence fee, upon execution of the franchise agreement. During the term of the franchise agreement, a franchisee may also be expected to pay monthly royalties (usually a percentage of gross sales), management fees and marketing levies. During your due diligence process, you should ask the franchisor to confirm what upfront fees you will be expected to pay, as well as continuing fees to pay in the future. 2. EXAMINE THE DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT CAREFULLY Both the franchisor’s disclosure document and the franchise agreement are valuable sources of information for prospective franchisees. Franchisees should read both documents carefully, and in the process of doing so, make a list of questions. These could be questions for yourself, the franchisor, your accountant or your lawyer. Where possible, accountants and lawyers who have experience in the franchising sector, and more specifically in advising franchisees should be consulted. To ensure that you understand the franchise business, further inquiries should also be made – such as visiting existing franchising businesses or speaking with existing franchisees to get a feel for the system and how it operates. A list of the current franchisees should be included in the disclosure document. 3. CONDUCT YOUR OWN BACKGROUND RESEARCH You should use the internet to find out as much background information as you can in relation to the franchise. The internet can often equip you with information that isn’t necessarily required to be disclosed in the disclosure document or franchise agreement – so it is generally a good idea to conduct your own research further to the documentation that you are supplied with. For example, you may discover that the franchisor is planning to expand the franchise network into overseas markets. Keep in mind that the internet can be a highly unreliable source of information, although it may help you to add questions to your list

4. INVOLVE YOUR BUSINESS ADVISORY TEAM EARLY When buying a franchise, it is important to surround yourself with a team of trusted advisers, including your accountant and lawyer. My experience has been that it is in your interest to involve your accountant as well as your lawyer early in the transaction, so that you begin negotiations with the franchisor having a complete understanding of the full implications of the relevant contractual and taxation obligations imposed on you . 5. GET THE STRUCTURE RIGHT AND HAVE YOUR FINANCES IN ORDER You should consult with an accountant experienced in assessing franchise businesses to discuss both the feasibility of the franchise and the most appropriate business structure to establish as the franchisee entity. Your accountant will consider your taxation obligations and asset-protection strategies, as well as ensuring that you are able to access required finances to help fund the acquisition. 6. GET EVERYTHING IN WRITING! Buying a franchise is a very exciting time. As such, I often see franchisees very keen to get their new franchise up and running – although as an unfortunate result, they tend to rush the process and dive straight in. With this frantic mindset, franchisees-to-be are less likely to ensure that all promises, obligations, rights or responsibilities are properly documented. This can pose challenges later when you go to rely on the word of the franchisor and they either renege or don’t recall the conversation. 7. DON’T SIGN A LEASE UNTIL YOU’VE BEEN APPROVED AS A FRANCHISEE AND YOU HAVE RECEIVED FINANCE When negotiating the terms of a franchise, you must ensure that you try to arrange for the franchise agreement and the start of the lease to coincide. Failing to do so may result in having to pay rent for a couple of months prior to the franchise being up and running. It is also important to ensure that

once you’ve ironed out all terms of the leasing and franchise agreement deals, you are approved for finance. Again, you don’t want to see yourself out of pocket for an extended period prior to your finance getting sorted. 8. DON’T UNDERESTIMATE EXPENSES AND INITIAL CAPITAL REQUIRED In the process of furiously organising their finances and budgeting, franchisees often either underestimate or forget to include the additional amounts of money required to cover miscellaneous expenses. These costs may include (but are not limited to) employee expenses such as leave entitlements, uniform and equipment costs, insurances and training expenses, as well as normal day-to-day operating costs. You should remember to include a “buffer” when it comes to your budget, in order to leave yourself with some room to breathe.

KEY POINTS TO REMEMBER There are three key things to remember about due diligence: 1. You’re entitled to request it: Commercially, it is sensible to ask as many relevant questions as you can of yourself, the franchisor, your accountant and your lawyer prior to making the purchase; 2. Help is available: You won’t be expected to understand every piece of information the due diligence process uncovers, nor are you supposed to forecast the potential ramifications arising from this knowledge. Professional advice is available to help you make sense of the information; and 3. Due diligence is an investment, not a cost: While due diligence may require your time, the advice of professionals and at least some sort of financial commitment, the overall benefits of the process will far outweigh the short-term costs. n Catherine Sedgley has 10 years’ experience as a commercial lawyer, and specialises in intellectual property, branding and franchising.

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New year, new opportunity: here’s why franchising could be for you in 2019. It’s no secret that starting something new requires effort and determination, and a Bedshed franchise is no exception. But for those who work hard, particularly in the initial stages, it offers flexibility and substantial financial rewards. Healthy work/life balance

Have you always wanted to be your own boss? Do you want to do something that’s rewarding, both financially and in your work/life balance? There’s no better time than the beginning of a new year to consider these important questions, and the type of business venture that will allow you to achieve your life goals.

While franchising offers a number of benefits, the promise of achieving work/life balance is often one of the greatest appeals. When you join Bedshed, one of Australia’s largest and most trusted bedding retailers, you can look forward to shorter, family-friendly hours. You’re the boss Like all franchises, Bedshed has certain tried and tested procedures and protocols you’ll need to follow in line with its national network, but you’re in charge of the management of your own store.

What would you rather sell?

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Ample financial rewards With an average turnover of $3.75m in its Victorian stores, Bedshed franchisees consistently report a profit in excess of 10% of turnover. Not surprisingly, independent research revealed that Bedshed franchisees are more financially satisfied than 84% of the sector. Career security When researching different franchise networks to join, you’re able to carefully consider what is going to be your safest and most secure option for career stability. The Bedshed franchise story is now in its 36th year. If you’re looking for a rewarding franchise opportunity with job security, take a look at Bedshed – the numbers speak for themselves. If you’re interested, contact Rod Parker at rparker@bedshed.com.au or 0419 494 480.

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FRANCHISE BASICS

WHO OWNS THE

BRAND?

As a franchisee do you own any part of the brand you are trading under?

ROBERT TOTH Marsh & Maher Richmond Bennison

he straightforward answer is no, you don’t own any part of the franchise brand. As a franchisee you are simply licensed to operate under the brand.

Most franchisees will assume the franchisor they meet is the owner of the brand and that is generally the case. However, there can be instances where the business has split off its intellectual property from its operating business. The first question to ask your new prospective franchisor: i. Do you own the rights, and did you create the name and brand? ii. If created by an individual, has that person assigned the rights of ownership to the business or company or will there be a licence to use that name? is it documented in writing? iii. If so, have you registered the name? Franchisors must disclose whether they or a related entity or person owns the rights to the name or brand in their disclosure document.

SO WHO OWNS THE BRAND? So who owns your brand? The starting point legally is that the owner and/or creator of the brand owns the brand and owns copyright in its creation. They can therefore register the name if not already in use or registered in the same classes.

A trademark is any unique word, symbol, name or device used to identify and distinguish the goods or services and gives the owner the exclusive legal right to use, license and sell its intellectual asset in Australia. Trademarks also help to prevent confusion about the brand and its distinctive qualities. The owner of a trademark can apply for its registration. Many companies trademark their name with their logo but not the words, thinking this will give them adequate protection. It is always preferable for the franchisor to register the wordmarks and then the logo. There can often be issues as to who created the brand, particularly in new startups where there may be two or three partners and they have all contributed to the concept and branding. The key is to document this and ensure transparency to prevent issues down the track. Registration of the business or trading name with ASIC does not provide intellectual property rights or protection, it simply stops another party registering that name.

FRANCHISEES, CUSTOMERS, BRAND AMBASSADORS

and by franchisors, employees, referrers, suppliers and influencers on social media. The Taco Bell chief marketing officer was quoted as saying that the community owns a brand and marketers are just keepers of the brand – the “heavy lifting” is done by a brand’s community, or “tribe” of customers, fans, influencers and advocates. But although these can be powerful influencers, they need to be controlled. Is your potential franchisor keeping a firm handle on how the brand is presented on social media? Is there a strong policing of rules and regulations to ensure the brand (not just the logo and catchphrase) is protected? Are franchisees who bend the rules around branding brought into line to avoid damage to the brand and franchisees’ businesses? It seems there are many so-called owners of a brand, but ultimately the franchisor needs to hold legal title and ownership and keep control of it. n Robert Toth is franchise partner at Marsh & Maher Richmond Bennison. Robert is a Business Law Accredited Specialist, a member of the International Franchise Lawyers Association (IFLA), and a member of the Australian Institute of Company Directors.

A brand can be carried into the market not solely by a company’s own marketing activities but by the products or services offered FEB/APR 2019 | 112 | WWW.FRANCHISEBUSINESS.COM.AU

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FRANCHISE BASICS

WHAT WILL YOUR

FRANCHISE COST?

An easy guide to the financial payments you’ll need to outlay when you buy a franchise. By Kate Groom, Franchise Accounting and Tax

ave was feeling frustrated. Once again he was on the phone to his accountant who was helping him with loan documents. He had spent the last few weeks trying to arrange finance for the franchise he wanted to buy. Getting the money to buy a franchise was proving harder than he had anticipated. Karla was also on the phone to her accountant. She had just opened her fitness studio. Money was tight even though they had good customer numbers. The build-out of the studio had cost a lot more than she anticipated and her credit card debt was growing by the day. These situations are common in today’s franchise climate. So, if you’re thinking of buying a franchise, it’s a good idea to understand what it will cost to get up and running and what the financing options are. This will help you avoid the frustration of falling at the final hurdle and the stress of going over budget. It can be a bit tricky to work out the cost of a franchise. That’s because there are several components to the price. However,

once you know the main components, you should be able to gather the information you need.

THE KEY COSTS IN A FRANCHISE PURCHASE There are five main categories of cost: 1. Franchise fees 2. Equipment 3. Fitout 4. Legal and accounting 5. Other costs, including uniforms, stock, and initial marketing costs If you are buying an existing business, items 2 and 3 are included in the cost of the business you are buying. 1. FRANCHISE FEES Franchise fees are usually quite easy to find out as they should be clearly stated in the disclosure document. The franchise fee can be described as the up-front fee for the right to operate the franchise. Your initial payments to the franchisor may also include other components. The most common one is training fees to cover the cost of your

initial training program. This might be additional to the franchise fee, or it may be included. In some cases, the initial fee might include specific services and even equipment. For instance, in one franchise we know, the initial fees include computer equipment and setup. 2. EQUIPMENT Most businesses require some type of equipment. This may be as straightforward as a phone and computer, or a van and tools. For a food business it might include fridges, freezers, cooking equipment and tables. If you’re buying a fitness business it will include the exercise equipment. If you plan to operate from a home office you may need furniture such as a desk and chair, and storage space. The costs for these items should be very clearly specified. Ideally the franchisor should be able to provide you with a list of every item you need and the costs of those items. 3. FITOUT If your business will operate from a

FEB/APR 2019 | 114 | WWW.FRANCHISEBUSINESS.COM.AU

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FRANCHISE BASICS

physical location (shop, cafe, gym etc) you’ll need to pay for the premises to be fitted out. This may be a simple matter of some paint, or it can include complex planning applications, building works etc. 4. LEGAL AND ACCOUNTING You will need to pay for your own costs of legal and accounting advice. Depending on how complex the agreement is, this cost can range from $3000 to $5000, or more. Extra costs come along when you need lease agreements, complex company structures etc. Apart from your own costs, some franchisors require franchisees to pay the costs of drawing up the franchise agreement. 5. OTHER Whenever a person buys a business there are various “other” costs. Depending on the franchise you are buying they may include: initial advertising, licences and permits, stock for sale and sundry supplies, uniforms, a business phone, business

cards, and so on. A well-prepared franchisor should have defined all these costs, but it’s also a good idea to ask other new franchisees what their other costs were.

BUYING AN EXISTING BUSINESS If you are purchasing an existing business there are also several types of costs. First is the price that you negotiate with the vendor of the business. This will be made up of equipment that you purchase and, usually, an element of goodwill. Goodwill is the amount you pay over and above the value of the assets for what finance people call “future maintainable earnings”. But the purchase price isn’t the only cost. There will also be franchise fees, training fees and the legal and accounting costs. You might also have to pay for refurbishment or new equipment.

THE COSTS THAT PEOPLE FORGET So far we’ve talked about the costs that

are relatively easy to define, but you’ll encounter other costs that may be less obvious. These are the amounts of money you will need to spend to fund the business during its start-up phase. Most new franchisees discover that they need to put money into the business to pay expenses in the first few months. That’s because the initial income for a new business is usually not enough to cover all the expenses. In addition, the owner has living costs to cover. This means that you will need an amount of money to cover these operating costs.

HOW TO WORK OUT THE COSTS In order to work out the costs for the franchise you’re considering, you will need to look in a few different places and ask some questions. The main source of information is the disclosure document. But the franchisor should be able to provide you with a written summary of the franchise costs when you make your initial inquiry. If they don’t do this, you should ask for one. After all, how

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FEB/APR 2019 | 116 | WWW.FRANCHISEBUSINESS.COM.AU

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Splash have their o contractor that are

COST

AMOUNT EXCL. GST $

NOTES

INITIAL FRANCHISE FEE

$50,000

INCLUDES COMPUTER AND INITIAL MARKETING PROGRAM. NO FRANCHISE FEE FOR FIRST THREE MONTHS.

TRAINING FEE

$5000

INCLUDES ACCOMMODATION. TRAVEL NOT INCLUDED.

VEHICLE

$40,000

CAN BE FINANCED

UNIFORM ALLOWANCE

$250

TOOLS, EQUIPMENT, LICENCES AND PERMITS

$3000

CASH PURCHASE

LEGAL AND ACCOUNTING

$2500 (ADVICE) $3000 INITIAL SET-UP AND STRUCTURE

FRANCHISOR DOES NOT PASS ON THEIR LEGAL COSTS.

LIVING COSTS

$21,000

TO COVER THREE MONTHS LIVING EXPENSES, VAN REPAYMENTS ETC.

can you decide if the franchise is within your budget if you don’t know the costs! Apart from the disclosure document, we recommend you ask recent franchisees what their costs were. This will help you validate the costs of setting up the franchise. It’s a good idea to create your own table showing the various costs and your

own notes about them, as above. Once you know the costs, you can work out how you will finance them. By taking a methodical approach to understanding the costs, writing them down and validating them with established franchisees you’ll be able to assess whether you can afford the franchise and reduce the chance of

financial surprises down the track. n Kate Groom has a background in economics, accounting and franchise management and helps franchisees make better use of planning, communication and technology to improve business management.

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FEB/APR 2019 | 117 | WWW.FRANCHISEBUSINESS.COM.AU

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LEASING EQUIPMENT What a franchise buyer needs to know about funding the hardware. By James Scurr, CashflowIt

hen purchasing equipment for your franchise business, whether it be for a new location or as part of an expansion or refurbishment, you will no doubt be faced with a wealth of options. While there is no one-size-fits-all solution for every business, many franchise buyers believe purchasing the equipment for the franchise outright to be the more affordable option. The reality is, in the long run this is not always the case – it can even end up costing you more. Asset rentals, leasing and business loans are smart alternatives to investing your capital into buying equipment outright, and can help take the stress out of opening or expanding your franchise business.

UNDERSTAND YOUR OPTIONS Having a greater understanding of your finance options will put you in a better position to make educated choices. Equipment leasing comes under the broader umbrella of debt financing, which can include finance from banks, alternative lenders or even vendor finance through your franchisor. While some franchisees expect to access debt finance for 100 per cent of their business, this will very rarely get approved. Debt financing is a great tool to be used in lieu of capital to fund expensive elements such as equipment and fitout, not as your only source of funds.

RETAIN YOUR HARD-EARNED CAPITAL One clear benefit to leasing your new equipment is that you are able to retain

your hard-earned capital. Working capital plays a crucial role in the sustainability and success of a business, and the opportunity to have more of it on hand will be a blessing, particularly during start-up or expansion phases. Purchasing equipment outright draws vital capital away from other facets of the business; whereas leasing solutions allow you to take these funds and invest them into business development activities, such as local area marketing, which have a significant impact on the longevity and success of your business.

MINIMISE ASSET RISK An important consideration when purchasing any piece of equipment is the concept of asset risk. Over a long period of wear and tear, the cost of equipment maintenance and repair becomes significant. In addition to this you are also investing funds into a depreciating asset. Choosing to lease equipment allows you to replace it regularly, and not only lessens maintenance cost but allows you to refresh your business with the most up-to-date technology. Opting for a lease solution helps overcome concerns of asset depreciation and ultimately minimises asset risk.

TAKE ADVANTAGE OF EXPANSION OPPORTUNITIES Utilising external finance opens the door for many opportunities, one of which is the ability to expand into becoming a multi-site operation. Relying solely on working capital to fund your business can place limits on your ability to invest in growth opportunities, delaying the potential expansion timeline of your business. Starting a

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relationship with an equipment finance lender will allow you to gain quick access to funds when an opportunity arises, allowing you to take action without impacting your levels of working capital.

PREPARE FOR THE APPLICATION PROCESS In order to have a successful finance application, it is important to understand what lenders will want to see. Ultimately you want to show a lender that your business is viable and reinforce how you will meet repayments. Most lenders will want to see the basics such as a completed application form and ID, but will likely also request a business plan, asset and liability statement, financial projections, commitment schedule and personal or company tax returns. To put your best foot forward, you should have all of these documents prepared and ready to ensure a smooth and timely application process.

BEWARE OF FINANCE TRAPS Finally, be smart when choosing a lender. Signing up for a finance contract you don’t fully understand can be costly in the long run. Be sure to read the terms and conditions and seek advice if there is anything you don’t understand. Also be on the lookout for common “traps” such as contracts without a fixed term, repayment-free periods or confusing payout calculations, which are not always what they seem at face value. n James Scurr is the founder and managing director of CashflowIt, and a former multi-unit franchisee.

FRANCHISE BASICS

MONEY TIPS:

FRANCHISE BASICS

CREATING A

SALES PROCESS

It doesn’t matter what business you are in, your ability to create a predictable and scalable sales process is one of the most important parts of your operation. By Steve Rollings, Anytime Fitness international franchisee

any new franchisees spend a large percentage of their time producing marketing, operation and financial plans, but overlook having a sales plan. It’s not until a few years down the track that they realise what a huge mistake they have made. So let’s start:

STEP 1: LEADS These are the first and most important parts of your plan. Ask yourself: What does my perfect customer look like? Where are these people? Why would they buy from me? How much would they spend? What’s their average age? Gender? The better you can articulate these points, the clearer and more effective your lead-generation material will be.

STEP 2: LEAD GENERATION Once you know what your ideal prospect looks like, you need to go out and find them. Many people respond well to a free seven-day trial, your first session free, or a short-term sale. Your goal with a lead-generation piece is to get a prospect interested enough so they can be booked into an appointment to join up or purchase something from your business.

STEP 3: BOOKING AND CONFIRMING Once you have a steady stream of leads coming in, you must have a plan to call them within a certain time frame and get an appointment booked. Just as important is to confirm this appointment. The easiest way for this is via an SMS. This then produces your lead-to-appointment ratio. The better the ratio, the better your

leads are and the better you were at booking and confirming your appointments.

STEP 4: THE SALES APPOINTMENT Congratulations! Your prospect has turned up for an appointment. The fact that they are there means they want to purchase what you have. Your job is to guide them through the process. The first thing you need is to gain rapport with them. If they don’t like you, you are dead in the water. Smile, shake their hand, make eye contact. Remember their name. Many people choose to either like or dislike you within seconds of meeting you.

STEP 5: FOCUSING ON THE CUSTOMER Ask the prospect questions about exactly what they want to achieve by buying your product, and why that’s important to them. Not doing this is by far the biggest mistake people make during the sales process. Most people just have a brief chat to the prospect, don’t ask any questions and then try and guess what they might want.

STEP 6: OFFER CHOICES Once you know what they want, and why they want what you are selling, always offer them two choices. For a gym it might be a 12- or an 18-month membership. People love a choice, and it gives them the feeling of being in control.

STEP 7: ASK FOR THE SALE Many sales fall through simply by not asking what option suits them best, or asking when would they would like to start. You’ve got to be genuine and expect that they will accept one of the options you offer them.

STEP 8: ASK FOR A REFERRAL Ask if they have any friends that might want to also use what they have just purchased, or who might want to train with them. The key is to offer an incentive for this and always, always ask for every single sale. You’d be surprised at the end of the month just how many leads you will get. n Steve Rollings is a multi-unit international franchisee with Anytime Fitness and the CEO of Fitstreem.

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FRANCHISE BASICS

TOP 3 TIPS FOR MARKETING YOUR

BUSINESS ONLINE

Don’t be afraid of digital marketing – it’s easy once you know how. By Cloe Johnston, TLS Marketing content manager

re you scared to start marketing your franchise online? TLS Marketing, a full-service marketing agency specialising in franchise marketing, hears this often. Getting started online can seem so complicated when the tools are always changing, but it’s not as scary as it seems. Once you get the hang of it you’ll soon become a natural. Follow TLS Marketing’s top three tips for marketing your franchise business online.

1. GET SOCIAL Social media is a great and cost-effective platform for increasing brand awareness, conversions and website traffic. Studies show that on average, internet users have 5.5 social media accounts and spend 116 minutes a day on social media. That is an ample amount of time to reach potential customers each day. Use your social media accounts to communicate with your clients by making your content social and engaging. A study conducted by Sprout Social shows 46 per cent of social media users are turned off by excessive promotional content, so avoid making your posts too “salesy”. Your customers want to get to know the personalities behind your business, and natural

content is a great way to increase reach and engagement.

2. WRITE CONTENT First up, you’ll need to know if you can create your own website for your particular business – the franchisor will have the final say in this and may insist only the national website is used. But if you are encouraged to develop your own page or website, why not add a blog? Writing regular, informative blog posts about your products or services helps establish your credibility in your customers’ eyes. It also helps bring customers back to your website because they’ll start to expect new content regularly. Is your business in the fitness industry? Write tips on staying fit and healthy through the season. Are you in finance? Educate your audience on the latest news in the markets. A good franchisor will be doing this for the national site but your personal touch adds value to your local market. Further, having a blog increases your website ranking in search engines. Websites with blog content often have 434 per cent more indexed pages, meaning your page has more content for search engines to crawl and index. This helps legitimise your website as an informational resource in the search algorithm, improving your ranking without you spending a cent.

3. SEND EMAILS Did you know that 72 per cent of customers prefer email communication as their point of contact with businesses? If you’ve ever wondered how your customers are feeling about your service or product or worry they will forget about you, then you want to start email direct marketing on a routine basis. As a franchisee, you are likely to have brand-awareness among your customers, but they also want to know the people behind the brand – that is, your franchise specifically. Create branded emails that share news about your team, customers or local area. Make sure they aren’t overly promotional (or you run the risk of your email winding up in the spam folder) to help your customers become familiar with your business and loyal so they keep coming back. Your franchisor will want to ensure you are always on brand and is likely to create professional content for you to use online. Remember, digital marketing is just like print marketing – it can be the first impression your customer has of you and your business. If your imagery isn’t high resolution or your content isn’t engaging or optimised for search engines, you won’t receive a high return on investment. Follow these three online marketing steps and watch your website conversions and foot traffic grow. n

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FRANCHISE BASICS

HIRING AND FIRING Top tips for employing the right staff - and what to do if it goes wrong.

LEE-ANNE HUNT AND TEGAN ROSE HR Dept Ringwood

our people are the face of your business. Good people can help you lift your business to the next level. But sometimes they are the stuff that keeps many business owners awake at night. In this article we’ll give you our top tips for how to get those good staff and what to do if by chance you don’t.

Let’s start at the beginning with the hire. Once you get this right the rest should fall into place or at least that’s the theory! Our top 4 tips for hiring: 1. KNOW WHAT YOU WANT This means understanding your business and the type of person you want in each role. Start with defining the values of your

business that all employees will need. This could be qualities such as team work or accountability. Next, think about the role in detail; as an example, it would be important for a customer service operator to be a good communicator, confident and friendly whereas as a kitchen hand would need good attention to detail and to be unphased by repetitive tasks. Think about the absolute bare minimum you need in qualifications and/ or experience. Our top tip would be to hire the person with the right qualities and then train or teach them the skills they need. 2. DO IT RIGHT Ensure your contracts/employee agreements are compliant and use them! We know it’s

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FRANCHISE BASICS

nice to hire a friend or their children but doing it legally will save confusion, heartache and friendships if it all goes wrong at the end of the day. Know the Modern Award that covers your staff and the applicable pay rates. The Fair Work Ombudsman site www.fairwork.gov.au can assist you with this or hire a HR consultant to take the hard work out of it. 3. HAVE A RECRUITMENT PROCESS Think about the steps you need to go through. A typical process involves placing an advertisement, shortlisting, phone or video interview followed by a group or personal interview. And most importantly don’t forget to referee check! Our top tip: ask a referee if they would hire the person again. 4. INDUCT NEW STAFF Again, it’s about the processes, make sure everyone is on the same page regarding your values, workplace health and safety, bullying and harassment and your day to day work instructions. This is particularly important if you are hiring young people who have never held a job before – they don’t know what they don’t know and that could cost you and your business. Induction should include some initial “on the job” training. If you’re not conducting this yourself make sure you have a written process/checklist for your managers to follow and employees to sign off that they have received the training. If you follow our tips above on hiring hopefully you won’t need these next tips. But just in case you need to follow a disciplinary process, here’s what you need to do to ensure it’s fair. 1. KNOW THE RULES Understand the Small Business Fair Dismissal Code (you can find this on the Fair Work Ombudsman website) or contract HR consultants to do this for you. 2. MAKE SURE EVERYONE KNOWS YOUR RULES Have processes and policies in place

and ensure EVERYONE from your managers who are implementing them to your most junior employees know and can access them. Before embarking on any performance management or disciplinary policy refer to your policies. Many small businesses have tripped themselves up at the Fair Work Commission by failing to follow their own policies and processes. 3. DON’T LET ISSUES FESTER Have the difficult conversations early before they become a major issue. Don’t do this in front of other employees or by group message. Take an employee aside and talk to them. And remember this is a two-way conversation. If you find it hard to know where to begin start by asking how your team member feels they are going and what you could do to help. Remember to document all your conversations. And to keep these locked away where other employees can’t access them. If you do end up terminating an employee, you will

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need to show you have followed a fair process. 4. MEET YOUR OBLIGATIONS FAIRLY Ending someone’s employment is never an easy decision and can be particularly hard in a small business where employees can feel like family. Sometimes the best you can do for that employee and your remaining team is to let that person go. But you can do it fairly by paying notice and entitlements promptly. And never respond to a disgruntled ex-employee with anger. You are the boss and your team takes their cues from you. n Tegan Rose & Lee-Anne Hunt, HR Dept Ringwood, have over 20 years’ experience in HR, change, learning and development and communications for small to large organisations, nationally and internationally. They are extremely passionate about supporting businesses to grow and thrive through good people practices.

FRANCHISE BASICS

IT’S NOT YOU, IT'S ME! Knowing the role of franchisor vs franchisee helps keep both parties aligned in a franchise relationship. By Corina Vucic

he benefits of being associated with a franchise brand are numerous – from branding, to operations, to systems – but it is vital to know where the responsibilities lie between franchisee and franchisor.

Buying into a franchise brand is effectively becoming a co-pilot in a business. Together, the franchisor and franchisee will navigate the business, but as in any team, each party has a role to play. What are these roles and how do they differ when it comes to the day-to-day running of a franchise?

PERFORMANCE Everyone wants their business to succeed. To achieve this success, it's vital to have a clear business plan and regularly analyse sales and financial performance to stay on track – and adjust if required. A franchisee should be undertaking a

regular analysis of their bottom line, their sales and their profit-and-loss statement. A franchisor should be providing benchmarks to help the franchisee understand how they are performing against the network, as well as support, coaching and planning tools via business or field coaches. Ultimately, a franchisee must be in control of the day-to-day performance of their business but should harness the support tools made available by the franchisor to identify weak spots and improve the bottom line.

PEOPLE A franchisor will recruit and train the franchisee. From there, the franchisee is responsible for recruiting, training and managing the team within that business. There are significant responsibilities in the area of human resources and industrial relations, such as those outlined in the Fair Work Act.

While a franchisor will often have tools and templates available, along with induction and training programs, it is vital that franchisees take control of matters pertaining to their staff to ensure that employment agreements are compliant and staff are inducted and trained. This may include seeking external human resources advice if the requirements are complex or identifying external training programs to best support the needs of the business.

PROMOTION One of the most attractive selling points in becoming a franchisee is buying into a well-known and respected brand. However, when do the branding and marketing stop becoming the responsibility of the franchisor and start becoming the domain of the franchisee? While the franchisor is responsible for the overall branding and strategy (such as

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logos) and brand-level marketing (such as a website), local area marketing falls to the franchisee. It’s important for franchisees to plan out activities to promote their business within their local community via a social media presence, advertising in local newspapers, community sponsorships and letterboxing. With an effective local area marketing strategy, combined with the power of a clear and consistent brand, a franchisee can harness the reputation of the business and gain loyal followers in the local community.

PRODUCT The franchisor is responsible for the overall product or service offered through the franchise network. It’s up to them to consider trends, competition and consumer demand when developing products. It is then the responsibility of the franchisee to deliver and sell those products at a local level. One of the key reasons customers love franchises is consistency – they know they can get the same product regardless of whether they walk into an outlet in

Brisbane or Hobart. It's vital for franchisees to deliver this consistency to their customers. If it is an Italian restaurant, stick with the menu outlined by the franchisor rather than offering Mexican food on the side. This just causes confusion for customers and dilutes the power of the product at a brand level if different franchisees are serving completely different meals or selling diverse services. Feedback is essential, and franchisees should tell the franchisor what is working, or not working, with customers. Customer and franchisee feedback is vital in product innovation and development to keep the entire brand cutting-edge and ahead of industry trends.

Everyone wants their business to succeed. To achieve this success, it's vital to have a clear business plan and regularly analyse sales and financial performance to stay on track – and adjust if required.

PREMISES The safety and presentation of the business premises – be it a gym, restaurant or mobile van – is the responsibility of the franchisee. Keeping spaces clean, safe and on brand is essential for the overall look and feel of the business, but it is also

important from an occupational health and safety perspective. Franchisees must also ensure that equipment is reliable and maintained to guarantee safety for employees and customers. Franchisors should support this through the provision of guidelines and tools for franchisees to check equipment, as well as continually innovating and developing new technology and equipment. However, ultimately, day to day, franchisees need to ensure their business looks great and is safe for staff and customers.

A TRUE PARTNERSHIP Owning a franchise is being a partner in a business. However, like any partnership, there need to be clear roles and responsibilities to keep things on track. Together, the franchisor and franchisee can create a significant opportunity to deliver superior products and services to customers. n Corina Vucic heads up FC Business Solutions, and has been involved in franchising for more than 16 years. She is also a Certified Franchise Executive, a mentor, trainer and business coach.

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Joining the FCA Become a Franchise Council of Australia Member Membership of the FCA is voluntary, and open to any organisation or individual involved in the franchise sector, including franchisors, franchisees, lawyers, accountants, banks, consultants, academics, publishers - plus many others. Benefits of Membership Representation of franchising sector perspectives to government A voice in your association Franchising public relations Excellence in Franchising Awards NextGen in Franchising: International exposure Network and learn at regular industry events Education: Internationally recognised CertiďŹ ed Franchise Executive program National Franchise Convention: Australiaâ&#x20AC;&#x2122;s largest annual franchise event FCA branding Website directory advertising Enquiries and Further Information E info@franchise.org.au W www.franchise.org.au

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FRANCHISE BASICS

5 TRAITS OF

TOP FRANCHISEES What turns a new business owner into a brilliant franchisee?

or first-time entrepreneurs, franchising presents the opportunity to leverage the history and legacy of a tried and true method of operations with the guidance of an experience franchisor, greatly increasing the likelihood of success. The model allows inexperienced business owners to achieve positive results and develop brand loyalty from day one, with the backing of a proven system of processes. As a franchisee, your personal talents will be brought into play, and while certain industry and business-specific traits can be developed, your success hinges on a few characteristics. Here are five things that all successful franchisees embody.

1 COMPLIANCE The primary benefit of entering into a franchise model is the ability to trade with a reduced risk of failure, but that only happens when the franchisee commits to compliance, with respect to both the franchisor’s wishes and legislative requirements.

Franchisors have established operating methods, supply chain processes and customer service protocols for a reason, because they are efficient, and they work. In order to maintain consistency across the network, every franchisee must commit to maintaining the standards of operation put forward in the franchise agreement. Additionally, in whatever industry you operate, there will be legal requirements that govern the business, such as health and safety standards or necessary qualifications for employees. Profitable franchisees must show a dedicated commitment to compliance across all operations standpoints, including payroll and recruitment, or risk facing harsh penalties.

franchisees. “There is a common theme with all young InXpress franchisees, that they’re motivated, they’re focused and they’re very much coachable. When I say coachable, I mean that they are willing to learn even more and to apply those skills,” Lal says. “It’s not just about learning, it’s about developing the techniques to and actually the practical application of the learning. It’s no good learning if you’re not able to actually apply it, so we have to teach people how to apply that.” All franchisees must be willing to learn and develop their hard skills, focusing on improving the overall efficiency of their outlet.

2 COACHABILITY

All franchise outlets will rely on some degree of customer service, regardless of industry or offering. Franchisors increasingly look for franchisees who can not only satisfy customer expectations put provide a holistically positive consumer experience. An outlet with exceptional customer service will improve its overall brand value, creating a consumer-centric culture that cultivates sales.

Unlike independent operation, the franchising model provides on-going support and mentorship, cementing franchisees with a solid platform for success. General manager of the Australian and New Zealand arm of global shipping and logistics franchise, InXpress, Marcel Lal says the ability to learn and take on advice is critical to the success of new

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3 CUSTOMER SERVICE

FRANCHISE BASICS

4 FINANCIAL UNDERSTANDING From the outset, successful franchisees tackle the financials head-on. While first-time business owners often struggle with financial documents in the beginning, those willing to develop their personal understanding, or seek advice from their franchisor will go far. It is always a good idea to seek help from a franchise accountant prior to the business purchase, however, once the purchase is made, it would be wise to strengthen that relationship. On-going consultations with a franchise accountant will allow you to better chart the current health of your franchise business, as well as uncover any discrepancies that may arise over the course of your operation.

5 COMMUNITY FOCUS Despite having a big business mindset, franchising is after all, small business. Franchisees who are personable, approachable and willing to contribute to the local community will develop a level of brand equity that can greatly improve business sales.

This may involve a number of outside initiatives, from sponsoring sporting events and engaging in council fundraisers, to something as simple as introducing yourself to your fellow local business owners. Successful franchisees understand the value of community engagement and the role that word of mouth marketing plays in small communities.

ARE YOU AN IDEAL FRANCHISEE? If you are considering starting a business, and have a firm vision of how you want things to be, franchising isn’t for you. While franchisees are given the freedom to operate their own business with a high level of self-regulation, the reality is that you are buying into a set of ideals and processes that have been established to increase efficiency and financial return. Franchisees that are open to coaching and willing to commit to compliance and professional development stand the best chance at prolonged success in the sector. Are you a perfect fit for franchising? n

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FRANCHISE BASICS

LOOKING FORWARD, LOOKING BACK:

THE CHANGING NATURE OF CONTEMPORARY FRANCHISING The Australian Competition and Consumer Commission reflects on 2018 and the year ahead.

s we reflect on 2018 it’s clear what a huge year it was for all those involved in franchise businesses. From hard-hitting stories in the media; to the parliamentary inquiry, to changing market and lending conditions; last year really shone a light on the good and the bad.

BUSINESSES UNDER THE MICROSCOPE The franchising industry is an important part of our economy. But recently, the industry has come under scrutiny with the media exposing the financial distress of some franchisee businesses and allegations of misconduct by some big players including widespread underpayment of

employees in some franchise networks. This included reporting of underpayments and other non-compliance with Australian workplace laws within the Caltex and 7-Eleven franchise networks. These events really put the industry on notice. The Franchise Council of Australia boldly said that this behaviour has sparked “probably the biggest crisis in confidence the franchising sector has ever seen”.[1] So, as we prepare for the year ahead, let us take a moment to consider the key events of 2018 and then turn our mind to what 2019 might hold.

PARLIAMENTARY INQUIRY Following increased attention on the franchising industry, in March 2018 the

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Australian Senate referred an inquiry into the Franchising Code of Conduct to the Parliamentary Joint Committee on Corporations and Financial Services. The Parliamentary Inquiry’s terms of reference include the operation and effectiveness of the Franchising Code of Conduct and the Oil Code of Conduct. The committee established to conduct the Inquiry welcomed individual stories that may identify widespread issues and recommendations for reform. The Inquiry held public hearings around the country, and over 200 public submissions were received. It heard of disputes between franchisors and franchisees, including complaints from franchisees about excessive fees and royalties, working too hard for little to no reward, and an overarching lack of transparency.

FRANCHISE BASICS

Some submissions to the Inquiry highlighted an imbalance of power in the relationship between franchisors and franchisees, as well as allegations of non-compliance. Specific issues raised in the submissions include: • underpayment of wages • the generally restrictive nature of franchise agreements • excessive fees and rebates • supply arrangements which are considered unfair by franchisees • franchise business models that are not financially viable for franchisees • franchisors misleading prospective franchisees as to expected profits • churning of franchise businesses at the expense of franchisees • franchisors not acting in good faith or unconscionably, and • dispute resolution not being effective.

ADVOCATING FOR CHANGE The ACCC is responsible for promoting compliance with the Competition and Consumer Act 2010 (CCA), including: • the Australian Consumer Law • the Franchising Code of Conduct, and • the Oil Code of Conduct. In our detailed submission to the Inquiry, we made a strong case for changes that would make the relevant codes more effective. Notably, we have called for a substantial increase in penalties for code breaches to at least reflect the much steeper penalties available under the Australian Consumer Law. The ACCC was successful in 2018 in court cases that imposed penalties for contraventions of the Australian Consumer Law. We saw record penalties handed down by the Federal Court in November, with the sole director of We Buy Houses Pty Ltd, Rick Otton, personally fined $6 million for making false or misleading representations to consumers, and his company fined $12 million. During 2018 Parliament amended the Australian Consumer Law so that penalties for breaching it in the future could be several times higher than this. We have also called for more transparency from franchisors, including disclosure of meaningful information to potential franchisees about establishment costs and

other expenses. We would also like to see actions that will create more incentive for prospective franchisees to seek independent advice before investing in a franchise, and changes that make unfair contract terms illegal. Speaking at the Inquiry, ACCC deputy chair, Mick Keogh, highlighted to the committee that we want to see more effort invested in encouraging prospective franchisees to take meaningful steps to understand what they are investing in. The party that takes the most risk in entering a franchise relationship is clearly the franchisee, who needs to be able to better understand the risk they are taking, their ability to incur any losses, and what will happen if their significant investment in money, time and hard work does not pay off. Our work in the franchise industry will remain a key focus for the ACCC. We will continue to provide education and guidance materials; conduct an active Franchise Code compliance program; and keep up our efforts in enforcement. We’re also working on a potential class exemption that would allow franchisees to collectively bargain with their franchisor. We currently have two proceedings before the Federal Court in relation to franchising: Ultratune and Geowash (a former national franchisor), and we have material investigations underway into several others. We’ve also had a number of recent successful enforcement actions, including Domino’s Pizza, Husqvarna, West Aust Couriers Pty Ltd trading as Fastway Couriers (Perth), and Pastacup franchisor Morild.

CREATING BETTER PARTNERSHIPS IN 2019 We may well this year see a change in the regulatory landscape that governs franchising and we welcome any reform that results in a more level playing field. Successful partnerships are always a two-way street. They work best when franchisors and franchisees understand their obligations and responsibilities and have a fundamental respect for what each party brings to the table. So let’s see more of that in 2019: better collaboration, better due diligence, and better business practices. n

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FRANCHISE BASICS

A FRAMEWORK

FOR SUCCESS

The case for mandatory registration of franchise systems. STEPHEN GILES Norton Rose Fulbright

espite having one of the most comprehensive disclosureand conduct-based regulatory regimes in the world, overseen by a regulator with strong investigative and enforcement powers, too many things fall through cracks. Distilling the various submissions to the Parliamentary Franchising Inquiry in 2018, and objectively reviewing the issues and apparent underlying causes, a few key structural themes emerge: 1. Too many franchise systems are not

complying with the existing regulatory framework. 2. Not enough franchisors have elected to register on the voluntary Australian Franchise Registry. In its submission to the franchising inquiry, FRANdata Australia, which administers the registry, indicated that it felt the registration prerequisites to lodge a compliant current disclosure document and franchise agreement were a significant reason why some franchise systems failed to register. The concern for the sector is that the registryâ&#x20AC;&#x2122;s compliance prerequisites are, FEB/APR 2019 | 141 | WWW.FRANCHISEBUSINESS.COM.AU

in fact, statutory obligations under the Franchising Code. Although the ACCC is able to access the registry, it does not appear that it currently considers the registry when framing enforcement activities. 3. Too many franchisees are not meeting the underpinning expectation that they will use the Franchising Code framework to assist them in conducting proper due diligence. Specifically, too many franchisees are choosing to ignore the codeâ&#x20AC;&#x2122;s strong and explicit recommendations (and the mandatory documents provided by franchisors to

FRANCHISE BASICS

every prospective franchisee) to obtain legal and business advice. 4. Franchisees, the media and the general public expect more assurance around franchisor compliance than is currently provided by the Franchising Code, which is essentially disclosure-based and assumes franchisees will accept their obligations to undertake due diligence. 5. The ACCC’s largely complaintsbased enforcement activities are not sufficient, and no amount of further resourcing will solve that problem. Industry experts would say that it is hard to objectively fault the enforcement activities of the ACCC, but the clear conclusion from numerous submissions to the Franchising Inquiry critical of the ACCC is that the ACCC is simply not positioned to provide the level of comprehensive sector oversight that franchisees appear to expect. Although some improvements could be made to the Franchising Code, and ACCC enforcement could be enhanced, these

changes will not be sufficient to restore confidence in Australian franchising. On the flipside, if the total burden of responsibility for the success of a franchisee’s business is placed on the shoulders of franchisors, this undermines the very essence of the collaborative business model that drives the competitive advantage franchising enjoys over other business structures. Mandatory registration of franchise systems could provide significant additional protection for franchisees, but not tip the balance too far or remove the important duality of responsibility that should underpin a business joint venture where the franchisee enjoys all net income and capital growth benefits. If it is industry-led, mandatory registration will not impose excessive compliance costs on franchisors or franchisees. It would also be relatively simple to administer.

HOW WOULD REGISTRATION WORK? The registration system would be

relatively simple, and could be incorporated into the Franchising Code of Conduct: • Franchisors would be required to be registered on an approved public registry to engage in the granting of franchises. Registration would require franchisors to provide a certification in relation to certain matters or corporate details, and to confidentially provide a copy of their current franchise agreement and disclosure document. • On registration, franchise brands would be given a distinctive registration number. • The register would be publicly searchable by any person free of charge, with a flexible search mechanism permitting searches by brand. • If they failed to renew their registration, or had their registration cancelled or suspended, franchisors would be unable to enter into new franchise agreements. (They could continue to operate their businesses and would, of course, still be obliged

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to comply with their obligations to franchisees under existing franchise agreements.) â&#x20AC;˘ Failure to register would not of itself trigger any fine or other penalty. However, any franchise agreement entered into by an unregistered franchisor would be voidable at the option of the franchisee, who would be entitled to a full refund of all monies paid. â&#x20AC;˘ Other compliance obligations contained in the code would still apply, and would be enforceable by the ACCC. So failure to register could, and often would, trigger an investigation or audit by the ACCC, and prosecution or other enforcement action would occur if the failure to register related to non-compliance with the code obligation to update disclosure documentation. Registration of franchise systems is not a new idea. Indeed it occurred prior to the introduction of the Franchising Code of Conduct in 1998, and was recommended by various state and federal franchise inquiries.

The main objections to registration were cost, on the assumption that the registration system was government-operated, and preference for lighter-touch industry regulation. Those objections would remain valid if the registration system was government-operated, but I believe an industry-led but government-backed initiative would receive positive sector support. Whereas a government-funded registry would probably cost more than $20 million per annum to establish and operate, an industry-led initiative would be self-funding at relatively modest cost from franchise system annual registration fees. Mandatory registration is not a complete panacea, but it does deliver several significant new benefits: 1. It ensures core fundamental compliance obligations are met by all franchise systems, not just those that chose to do so or are audited by the ACCC. 2. It provides additional information for prospective franchisees and their advisers in an easily searchable registry. 3. It provides an early-warning mechanism that could alert the ACCC to possible

breaches of the law. Unless the government was prepared to provide some form of statutory indemnity registration, it would not include the vetting or audit of submitted documents. However, the ACCC has the statutory indemnity, and these functions are probably best left with the ACCC. Registration augments disclosure, and would sit well alongside additional code changes recommended by the franchise sector, such as mandating that franchisees obtain legal and business advice. If the franchise sector genuinely wishes to restore confidence in Australian franchising, it must embrace a significant new substantive initiative. Tinkering with the wording of the Franchising Code is not enough. The time has come for the Australian franchise sector to embrace an industry-led initiative for the mandatory registration of Australian franchise systems. n Corporate and commercial lawyer Stephen Giles is the global leader of Norton Rose Fulbrightâ&#x20AC;&#x2122;s International Franchising Business Group.

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FRANCHISE FRANCHISE BASICS BASICS

MORRISON LOOSENS

THE PURSE-STRINGS

T MARY ALDRED CEO, Franchise Council of Australia

he Franchise Council of Australia recently welcomed the federal governmentâ&#x20AC;&#x2122;s response to calls from business and lenders to act to underpin availability of credit for cash-starved small to medium businesses (SMEs).

The FCA understands that the government is developing a package of economic measures to boost small business, as Prime Minister Scott Morrison prioritises smaller companies ahead of corporations in the lead-up to the next federal

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election. The policies include boosting access to funding for small business to overcome the risk of a credit squeeze, improved tax dispute resolution with the Australian Taxation Office and helping small companies get paid faster by large customers. In a first step, the Morrison government will inject $2 billion into the small business loan market in an

unprecedented effort to boost SME lending. The new small business funding policy recognises that it has become increasingly hard for small businesses to obtain finance other than on a secured basis, typically, against their main personal asset – their home. The FCA is pleased by the announcement that the new government fund will underpin SME loans issued by smaller banks and non-bank lenders, boosting funding to lend to small businesses and potentially lowering SME borrowing costs. The creation of a taxpayer-backed securitisation fund to invest in small and medium enterprise credit will also potentially facilitate new investment from institutional investors, such as superannuation funds. Franchising mainly comprises small businesses which make a major contribution to the Australian economy – there are 1200+ different franchise systems, more than 80,000 franchised businesses and more than 500,000 people employed in the sector across urban, rural and regional Australia. We want to see them grow and succeed and a transition from credit squeeze to credit crunch would have severe impact. It has always been a challenge for small business to access debt finance, but even when small businesses can access finance, funding costs are higher than they need to be. The situation has worsened as the Banking Royal Commission has waved the big stick of stricter lending laws and loan serviceability rules. The government’s shake-up should increase competition against the big four banks which account for more than 80 per cent of business loans of less than $2 million and charge an interest rate premium of up to 4 percentage points to small businesses. The FCA has been greatly concerned that any extension of the consumer responsible lending regime into SME lending could have significant negative impact in a sector already struggling in a tight market environment. The FCA believes that potentially vulnerable small business customers FEB/APR 2019 | 145 | WWW.FRANCHISEBUSINESS.COM.AU

In a first step, the Morrison government will inject $2 billion into the small business loan market in an unprecedented effort to boost SME lending. should be protected without restricting finance to those who can afford it. Australia is a very franchised economy. With around 95 per cent of franchisees representing small business, the economic and employment contribution is too big to ignore – over 500,000 Australian jobs and an economic contribution of around $146 billion every year. As a business model, franchising is unrivalled in its capacity to take a business idea and expand it into a nationally or internationally franchised network. It allows franchisors and franchisees the opportunity to achieve their business dreams, and for employees to fulfil their career goals. Healthy businesses sustain healthy communities. From contributing tax revenue, to driving a demand for skills and jobs to reinvesting locally, sustainable businesses drive a strong national economy and well-resourced local community – and franchising plays a significant role. Small business is increasingly being squeezed on a number of fronts, including escalating energy costs, compressed margins, a complex industrial relations framework and availability of finance. The FCA doesn’t want to see any slowing of investment from the sector because that will impact economic growth and jobs. We welcome the new government initiatives to support small to medium business, including many in franchising.

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Every franchise model may be different, but each operates on similar principles. It’s important to understand the foundations before setting out to build your own business.

t’s a well-established practice – to take a business and through licensing allow other individuals to profit from the success of the original concept. It’s doubtful that the man credited with setting up the first franchise, sewing machine distributor Isaac Singer, would have imagined his idea would achieve such a global presence nearly 100 years later.

Franchising is a method of doing business that incorporates diverse business models across almost every conceivable industry, from the traditional to the up-andcoming, from the high-profile food retail chains to studio gyms, from lawn mowing to drones, from commercial cleaning to business advisory boards, from early learning to aged care, from IT to robotic dessert dispensers. Most of us are familiar with the business format franchise typified by the McDonald’s chain – a perfect example of a business that grew exponentially once Ray Krock introduced the systems and consistency that mark a solid franchise. So what are the fundamentals?

WHO IS IN A FRANCHISE?

A franchise has two main parties: the franchisor who owns the rights to the brand and the systems employed to run the business; and the franchisee, who buys the rights to operate under the brand and use the systems, usually for a set period of time. Both the franchisor and franchisee can be an individual or group of individuals.

IS A FRANCHISE A LICENCE?

While the franchisor is effectively licensing the rights to a third party, franchising is more stringent than a licence or distribution model.

WHY DO BUSINESSES FRANCHISE?

Franchisors are looking for franchisees to replicate the business they have established, and are likely to use the capital injection from new franchisees to help support the existing businesses and expand the network of franchisees.

WHAT DOES A FRANCHISEE BUY

A franchisee is purchasing the rights to operate a business, and the details of compliance will be outlined in a franchise agreement. While the franchisee runs the business according to the particular rules set out, this is likely to be for a term – often five years. There may then be the opportunity to renew the contract, or to exit from the business. On exiting, the franchisee has no further rights over the branded business and will be expected to vacate any premises it occupies under the franchise name.

HOW DOES A FRANCHISEE MAKE MONEY?

There are two ways a franchisee can get a return on their investment: firstly, by making enough money to put aside profits as the business is operating; secondly, by selling the business and getting a big capital gain at the end. Of course a good ROI is dependent on the purchase price of the business, ongoing costs and the final sale. Franchising offers no guarantees for profitability.

WHAT ARE THE FEES?

The franchisor has taken the risk to trial a business concept so will charge an initial fee and ongoing royalty fees and marketing levies for the rights to operate and for head office support. Regular fees are likely to be paid monthly. There are rules around marketing fees, which dictate the funds must be used to advertise and promote the brand. Franchisees can expect to pay for their own local area marketing.

WHAT ARE THE RULES AROUND FRANCHISING?

Every franchise operating in Australia, whether it is headquartered here or is an overseas brand, comes under the jurisdiction of the Franchising Code of Conduct. This code outlines important rights for the franchisee, and sets out processes to deal with disputes, and renewing and ending a franchise agreement.

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FRANCHISE BASICS

FRANCHISE

WHAT IS A AND HOW DOES IT WORK?

FRANCHISE BASICS

LEARNING THE

BUZZWORDS

Like any area of endeavour, the franchise sector has its own particular terminology that new franchisees need to understand.

ACCREDITATION

a banking loan scheme that provides franchisees with some of the finance they may need when buying the franchise. It is based on a bankâ&#x20AC;&#x2122;s understanding of the brand and its business methods. While this funding option is popular, it is not common across the sector.

ASSIGNMENT

when a franchisee sells their business to a new franchisee, it is referred to as assignment. It is common for the franchisor to retain the right to interview and accept or reject any proposed buyer. The franchisor may also have the right to buy back the franchise. The vendor franchisee can set the value of the franchise.

BUSINESS-FORMAT FRANCHISE

alignment, and sales and profit. This role might also be called business development manager or area manager.

FIXED SERVICE FEE

franchisees may pay their franchisor a weekly or monthly fixed-amount payment, or a service fee calculated as a percentage of turnover (above a minimum payment).

FRANCHISE AGREEMENT

this is the legally binding business between the franchisor and the franchisee.

FRANCHISEE

an individual who runs a franchised business using the intellectual property of the franchisor.

a business model with four criteria â&#x20AC;&#x201C; 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.

FRANCHISEE ADVISORY COUNCIL

COMPANY-OWNED UNITS

an up-front cost paid to the franchisor. It covers the use of the brand name and business system.

locations run by the franchisor rather than a franchisee.

CONVERSION

FRANCHISE FEE

FRANCHISING CODE OF CONDUCT

an existing independent business that joins a franchise network.

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

the process of conducting in-depth research on a business before purchase.

FIELD MANAGER

a structure for franchisors to seek and receive feedback from their franchisees. Participating franchisees may be elected or chosen by the franchisor.

an individual tasked with managing a group of franchisees, with a focus on relationships, brand

a mandatory code that governs franchising in Australia. It 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).

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. Franchisors often refer to a term with two options to renew as 5 + 5 + 5, for instance.

FRANCHISOR

the franchisor grants permission to the franchisee to conduct business using its intellectual property, brand name, working methods and marketing.

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GREENFIELD SITE a brand new site.

areas of the business, and should regularly update the information.

GOODWILL

REGIONAL FRANCHISEE

INFORMATION STATEMENT

RENEWAL

this is a calculation of the value of trade in an existing business that is likely to continue and benefit the incoming business owner.

this is a two-page standard document that outlines what franchise buyers need to know about franchising.

INTELLECTUAL PROPERTY

this term refers to the trademarks, copyright, know-how, trade secrets, designs, patents, branding, operational manuals, methodologies and/or recipes franchisors license to franchisees.

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

often abbreviated to LAM, this is marketing the franchisee is responsible in their territory or designated marketing area.

MARKETING & ADVERTISING LEVY a regular flat or percentagebased-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 who has been granted the rights to run 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

similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area. 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. 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.

TERRITORY

is the area assigned to franchisees for their business. Territories can be exclusive or nonexclusive.

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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FRANCHISE BASICS

BUYING A FRANCHISE:

THE PROCESS

It can take three months or 18 months to find and open up a franchise. This is the typical path that will take you to franchise ownership.

1. MAKE AN INQUIRY

Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.

4. CONFIDENTIALITY

The franchisor will ask you to sign a confidentiality agreement before sharing sensitive information with you. Expect a copy of the disclosure document, draft franchise agreement and the Franchising Code of Conduct, plus an information statement. Your franchisor might also send more commercially sensitive information to help you consider the viability of the franchise opportunity and build your business plan.

7. PROVE YOURSELF

You will need to create a business plan and show to the franchisor you have the capacity to take ownership of and drive this particular franchise unit. A follow-up meeting will enable you to ask further questions following on from your due diligence, and for the franchisor to further quiz you.

2. FRANCHISOR RESPONDS

3. FIND OUT MORE

5. FIRST MEETING

6. CONDUCT DUE DILIGENCE

If you have emailed an inquiry, typically a franchisor will send out an information pack to you, and follow this up with a phone call.

This is the time you will get a much clearer idea of the business, and the franchise team you will be working with.

8. OTHER STEPS

Some brands can include a number of interviews, try-before-you-buy work experience or a panel review. The franchisor might ask you to complete a profiling assessment.

Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.

This is a crucial stage, so take your time and be thorough in your research. You will need to sign a document confirming that you have received independent advice, or that you have decided not to do so. Obtaining expert opinion from franchise-experienced professionals can save you money in the long term, so it is a worthwhile investment.

9. DONâ&#x20AC;&#x2122;T RUSH IT

The process to get from inquiry to sign-up could be a matter of weeks, or it could be months. Buying a franchise is a significant, long-term commitment. It is important not to rush the process.

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THE

INFLUENCERS

Who will be driving the business that you invest your hard-earned dollars into?

hat influence will the franchise team have over your future? Here we look at key roles in a larger franchise business that will be shaping the direction and operation of the network. Not every business will include each role and in a small franchise set-up the franchisor will be wearing several, or all, of these hats.

tial in the company’s long term success. Any funding for marketing or development initiatives will be approved by the CFO. The CFO manages the finance and accounting divisions and takes responsibility for the accuracy and timeliness of the company’s financial reports.

CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR

A CIO has responsibility for the implementation, management and efficacy of information and computer technologies, vital in today’s digital world. It’s the CIO who will investigate the benefits of any proposed technological change, and then implement the system - a website or inventory software, for instance. The role is increasingly strategic and directed to gaining and maintaining the competitive advantage of a business.

CHIEF INFORMATION OFFICER

The top ranking executive in a company, the CEO is focused on directing high level company strategy and growth. In a smaller company, the CEO’s role includes operational business decisions and they may be much more hands-on on a daily basis. In a larger business the CEO may have a position on the company’s board, and act as the link between corporate operations and the board of directors. The founder of a franchise typically takes a CEO role.

CHIEF OPERATING OFFICER/ OPERATIONS MANAGER

CHIEF MARKETING OFFICER

A COO/operations manager essentially works with the CEO to implement the strategy, making the decisions on how to achieve the goals set out. The role is typically responsible for daily operations, production, research and development, creating operational policies, and HR. The operations manager can influence the franchise business performance through resource allocation, cost reduction, improved efficiencies, the introduction of high quality products and services. In a franchise where the founder is the CEO, the COO may be the more experienced executive.

CHIEF FINANCIAL OFFICER

This senior executive reports to the CEO but plays a strategic role in the way the company manages its finances, investments, and capital structure and is influen-

The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations. Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.

GENERAL MANAGER

A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations. The responsibilities of the role may be incorporated into a CEO role.

FRANCHISE RECRUITMENT MANAGER

The franchise recruitment manager is responsible for attracting franchise buyer enquiries and for the recruitment selection process, increasingly working with managers from other divisions and

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the CEO or MD in the final selection. The franchise recruitment manager needs to meet internal recruitment targets and ensure franchisees are a match for the franchise brand.

BUSINESS DEVELOPMENT MANAGER/FIELD MANAGER:

Variously called a BDM, regional manager, field or area manager, this role is the interface between the franchisee and franchisor. Responsibilities include helping franchisees achieve their business goals, ensuring brand compliance across the network, communicating brand direction and strategy to franchisees.

TRAINER

The person or team who will set up a franchisee to run the business. Responsibility for training may fall under operations or general management. Training may involve technical skills, customer service, business basics, and operational procedures. The trainer may train franchisee staff.

PR AND COMMUNICATIONS

How the brand is presented in the media, how the brand engages with social media, how brand damage is mitigated...all these are influenced by the team that handles PR and corporate communications. This may be an internal team or an external agency.

SUPPORT TEAM

The individual employees at head office who manage, monitor and deal with queries, requests and complaints from franchisees.

FRANCHISE ADVISORY COUNCILLOR A franchisee member of the Franchise Advisory Council which is typically involved in providing frontline feedback from franchisees to the franchisor, and in assessing and trialling new initiatives.

FRANCHISE BASICS

THINGS TO CHECK R BEFORE YOU INVEST

Get set prior to your purchase with our easy checklist. Just tick off the must-do items.

Are you confident in the franchisor?

Have you worked out your operating costs?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

Do you know the term of the agreement?

What training is available and who pays for it?

Is the franchisor compliant with the Franchising Code of Conduct?

Do you need a permit or license to operate the business?

Who owns the intellectual property and what is licensed to the franchisee?

Have you run a credit check on the franchisor?

Is the business operating from fixed or mobile premises?

What marketing will the franchisor implement?

Does the franchisor have a history of litigation? Are there any cases coming up?

Have you checked the lease? Is there a right to renew?

What marketing is your responsibility?

If you are buying an existing business, have you seen current financial statements (balance sheets, profit and loss, tax returns)?

Does the length of the lease match the franchise term?

What is the dispute resolution process?

Have you evaluated the financial returns?

What are the store fit-out costs?

Do you know what it is like to be a franchisee?

If you are buying a greenfield (brand new) site, do you have sales and profit examples and know the method behind the calculations?

Are you working within a territory? If so is the area exclusive?

Do you have an exit plan?

Do you know all the expenses franchisees are required to pay?

Are you restricted in your product purchase?

Have you spoken to former and current franchisees about the business?

What royalties are there and how are they calculated?

Are you required to reach a minimum performance level?

What restrictions are there on the franchisee and guarantor operating a similar business?

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RESOURCES AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC)

The ACCC is an independent Commonwealth statutory authority which regulates the mandatory Franchising Code of Conduct (Code) and can investigate alleged breaches of the Code. The ACCC is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure. Its role is to protect, strengthen and improve the way competition works in Australian markets and industries. Visit: WWW.ACCC.GOV.AU

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 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

The FCA is the main body for representing franchisees, franchisors and service providers in the $146bn franchising sector in Australia. Becoming a member of the FCA is a voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees. Visit: WWW.FRANCHISE.ORG.AU

FRANCHISEBUSINESS.COM.AU

This is the online arm of the Inside Franchise Business publication. Both platforms are focused on providing essential advice and information for anyone looking to invest in a franchise. The website provides short and snappy business tips and news, video interviews, industry commentary and market reports. FranchiseBusiness.com.au 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 opportunities that currently exist in the market and enquire about the franchisor or brand. Users also have access to franchise consultants and advisors who

can assist prospective or existing franchisees and franchisors with legal, financial educational and training, IT and other services. Visit: WWW.FRANCHISEBUSINESS.COM.AU

FRANDATA

FRANdata is the home of the Australian Franchise Registry which identifies franchise brands that have up-to-date franchise agreements and disclosure documents, and which have confirmed with the Registry their compliance with the Franchising Code of Conduct. FRANdata also provides reports on the franchising sector. Well established in the US since 1989, the business was established in Australia in 2013 to help the franchise sector address key strategic challenges and take advantage of opportunities available to qualifying brands. Visit: WWW.FRANDATA.COM.AU

FRANCHISE.ED

Franchise.ED (previously Asia-Pacific Centre for Franchising Excellence) was created to help people find independent information and research on franchise best practice. FranchiseED is a Not for Profit which provides education to encourage best practice; provides consultancy services; and provides access and dissemination of quality franchise research. The revenue generated by these programs will help support the social enterprise programs of FranchiseED. It extends upon the work undertaken previously by the Franchise Centre at Griffith University with the transformation into FranchiseED. Visit: WWW.FRANCHISE-ED.ORG.AU

THE FAIR WORK COMMISSION

Fair Work Commission (the Commission, previously called Fair Work Australia) and the Fair Work Ombudsman (FWO) are independent government organisations that regulate Australiaâ&#x20AC;&#x2122;s workplace relations system but have different roles. The Commission is the independent national workplace relations tribunal. It is responsible for maintaining a safety net of minimum wages and employment conditions, as well as a range of other workplace functions and regulation. The FWO enforces compliance with the Fair Work Act, related legislation, awards and registered agreements. It also helps employers and employees by providing advice and education on pay rates and workplace conditions. Visit: WWW.FAIRWORK.COM.AU

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1300 LOCATE

A-Z LISTINGS

1300 562 283

pipe & cable locators asset protection

Phone: Shayne Boogaard (NSW): 0418 136 156 Brett Reading (Qld): 0407 877 674 Peter O’Hara (Vic/WA): 0408 175 534 Contact: Shayne Boogaard (NSW): szh@7eleven.com.au Brett Reading (Qld): bzr@7eleven.com.au Peter O’Hara (VIC/WA): pwo@7eleven.com.au www.franchise.7eleven.com.au

Phone: 1800562283 Contact: Jason Kelly Franchising@1300locate.com.au www.1300locate.com.au Start up costs: Enquire

PROFILE:

Start up costs: $400,000 to $1,000,000

1300LOCATE offers a comprehensive service specialising in Subsurface Utility Locating and Mapping for the Australasian Engineering and Construction industries. As the Business owner you will have three (3) different revenue stream to maximise your income potential covering Underground Utility Locating, Vacuum Excavation and Pipe CCTV Survey. To maximise the growth of your business and creating future stability opportunities cover large areas of metropolitan and/or rural locations around Australia. Business Opportunity numbers are caped around Australia and there are opportunities around the greater Australasian area available upon request.

PROFILE: 7-Eleven is the largest convenience and independent petrol retailer in Australia with more than 670 stores across VIC, ACT, NSW, QLD and WA. We opened our first store in 1977 and have almost 40 years’ experience in franchising. When you buy a 7-Eleven franchise, you buy two things. Firstly a globally recognised brand name, and secondly a business system that works, one that provides more support than most other franchises. As our stores are open 24/7, support is just a call away 24 hours a day, 7 days a week. We are looking for Franchisees who have the potential to lead their team to deliver an outstanding experience to customers. Learn more about what it takes to be part of a partnership in success with 7-Eleven, at www.franchise.7eleven.com.au

Contact: Brett Turner Brett.turner@anytimefitness.com.au www.anytimefitness.com.au/own-a-gym/

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.

Start up costs: $350,000- $450,000 PROFILE: Anytime Fitness is Australia’s biggest gym community, with over 520,000 members and 490+ clubs nationwide. With a 24/7 concept, alongside PT’s and the Anytime Workouts app, we’re getting Australians moving for a fitter and healthier future. When you join the Anytime Fitness family, you’re investing in much more than a gym, you’re joining a fitness movement full of like-minded entrepreneurs. In October 2018, we won the FAC – Franchise Council of Australia – International Franchisor of the Year award - based on our financial strength and stability, growth rate and size of our system. We have over 4,000 clubs in over 30 countries. That means an unrivalled support network to draw on, from dedicated franchise coaches and national marketing teams, to a wealth of online tools and training. As an Anytime Fitness franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group (CWG), to guide and support you every step of the way.

Phone: 1800 219 512 Fax: 1800 460 819 Contact: Peter Warwick peter@artofaquaria.com.au www.artofaquaria.com.au

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.aquariumgallery.com.au Start up costs: 300K-400K

Start up costs: $45,000 to $200,000 PROFILE:

PROFILE: Aquarium Gallery is not your traditional pet fish shop. Think of a high standard specialty aquarium. Yes, an “Aquarium Gallery” which includes fish, aquatic plants, corals, natural aqua-scaping materials along with, of course, the best equipment and accessories to enable anyone to enjoy the wondrous beauty of aquatic life in their own home or office. We offer the customer a truly comfortable retail experience, from the moment walk in they begin their journey into the amazing and inspiring aquarium world because we pay specific attention to every detail resulting in healthy, beautiful and sustainable aquarium life. If you love the beauty of aquatic life we will show you how you can turn your passion into a business and be proud of yourself, what you do every day you are at work and make money doing it.

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au Start up costs from: $52,000 + 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 56 franchisees grow profitable and successful businesses.

How About A Business Opportunity Which Generates Serious Profits And An Attractive Lifestyle Art of Aquaria are in the process of releasing a number of territories with established client bases so that you can choose to either walk straight into a cash generating business or build up your own greenfield territory. Are you looking for a business that you can operate by yourself with the support of a fun and dedicated team? Are you seeking a growth industry where you can follow your passions and shape your own destiny? If you share our passion for acquaria and think you have what it takes to be part if our team, we want to hear from you!

Phone: 07 5509 0000 Contact: Mark Crapper franchise@australianskinclinics.com.au australianskinclinics.com.au/franchise PROFILE: Australian Skin Clinics was founded in 1996 and is one of Australia’s leading cosmetic clinics focused on Skin Rejuvenation, Cosmetic Injectables, Laser Hair Removal and Fat Reduction. With up to 50 clinics nationally Australian Skin Clinics is empowering people to look and feel proud of their reflection. Franchisee’s gain access to a turnkey operation supported by a nationally recognised brand. All training is provided via The Advanced Skills Academy, owned and operated by Australian Skin Clinics; covering all areas of running a successful clinic. This is your opportunity to join the fastest growing sector in retail!

No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

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Phone: 0419494480 Contact: Rod Parker rparker@bedshed.com.au www.bedshedfranchise.com.au

Phone: 1300 309 759 Contact: Franchise Recruitment Team franchise.recruitment@bakersdelight.com.au www.bakersdelight.com.au/franchise/

Start up costs: $500,000 - $750,000

PROFILE: Bakers Delight are an Australian iconic brand. We’ve been baking bread since 1980 and currently have over 550 bakeries across Australia, Canada and New Zealand. We are the largest Bakery Franchise and a household brand name. At Bakers Delight we offer a large variety of back end business support, including: • Business Operations • Marketing

• Human Resources • Property

• Projects • Purchasing

• Information Support • Full Training

If you have the passion and drive to be the local face of a bigger brand. Take the first step and contact our team to learn about any local business opportunities available within your area.

PROFILE: Bedshed is an accredited franchise business model led by a professional management team. Backed by over 30 years of successful operation, Bedshed provides support, specialised advice, training and a proven structure which takes a lot of the risk out of running your own business. With 35 stores in a growing network Bedshed is committed to partnering with franchisees to help them achieve business success, while offering flexible hours and a fulfilling lifestyle.

Phone: +61 474 278 485 Contact: In Australia: Carsten Brink (Business Development Director for Asia-Pacific) franchise@boconcept.com Boconcept.com/franchise

Phone: 03 9508 4409 Fax: 03 9508 4499 Contact: Boost Franchising boostinfo@retailzoo.com.au www.boostjuice.com.au

Start up costs: Around $600.000 AUD

Start up costs: $280,000 - $450,000 + GST

PROFILE: BECOME OUR NEW FRANCHISE PARTNER JOIN A GLOBAL FURNITURE DESIGN BRAND, OFFERING A STRONG RETAIL FRANCHISE CONCEPT From Denmark to the world since 1952, BoConcept is the brand name of Denmark’s most global retail furniture chain, specializing in premium quality interior design for the urban-minded customer and creating outstanding modern and sophisticated living spaces at affordable prices. BoConcept has grown its global presence through a unique strategic market positioning.

With over 25 years of franchise experience, and 265 stores in 65 countries, our franchise model is a proven, strong and award-winning concept. Our business model and core competencies are applied throughout the value chain from design, branding and marketing to production, logistics, sales and customer service, to optimize the overall sales performance in the stores. The strong toolbox and support within all areas of business and retailing makes the setup and management of a BoConcept store straightforward. Therefore, most of our partners own multiple stores.

PROFILE: Boost Juice is an Australian franchise success story. Founded by adventurer and entrepreneur, Janine Allis, the brand has taken its winning combination of healthy fresh fruit, blended and squeezed into delicious smoothies and juices to open over 485 stores across the globe. Boost Juice has come a long way from its humble beginnings but one thing hasn’t changed – our commitment to health, fun and loving life. Our partners are provided with an abundance of support and we strive to innovate and develop in all facets of the business. Take the steps to join one of Australia’s most loved brands today!

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos nicka@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.

Start up costs: New store - $389,000 + GST PROFILE: The Cheesecake Shop is one of Australia’s favourite retailers and shares in the celebrations and happy occasions of millions of people each year with their signature dessert products. With over 200 stores across Australia and New Zealand and a two time winner of the Franchise Council of Australia’s Franchisor of the Year award, The Cheesecake Shop is one of Australia’s premier franchise systems.

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: (02) 4587 6370 Fax: (02) 4587 8733 Contact: Lachlan Mitchell lachlan@chemdry.com.au www.chemdry.com.au

Phone: 03 8727 9999 or 13 80 90 Fax: 03 9729 3266 Contact: Dirk Heinert dirk.heinert@clarkrubber.com.au www.clarkrubber.com.au

Start up costs from $19,950

Start up costs:

From $ 420,000 + GST (including stock) Clark Rubber Store From $ 147,500 + GST (including stock) Clark Pool & Spa Shop From $ 49,500 + GST (including stock) Clark Pool Service territories

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.

PROFILE: Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for over 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network with 60 locations nationwide. In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer. Clark Rubber offers a unique business proposition which includes business development, site selection and fit out assistance, comprehensive training and ongoing local area marketing and IT support.

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A-Z LISTINGS

Phone: 02 8039 9000 08 6146 0100 03 9081 9000 07 3193 9000 1300 881 284 Contact: Renz Flores marketing@cloudstaff.com www.cloudstaff.com

A-Z LISTINGS

PROFILE: Cloudstaff offers next-generation outsourcing solutions for franchisees to help them reduce labour costs and extend their service offerings. Based in the Philippines, Cloudstaff provides highly trained, dedicated professionals for a fraction of the cost of hiring locally. Cloudstaff works with the franchisees to find the exact staff they are looking for. Whether they need staff to help with office administration, accounting, payroll, creative services, technical support, or an entire team of developers to create the next big app, Cloudstaff outsourcing solutions are fast to deploy, extremely scalable and tailored to the individual needs of the franchisee.

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.thecupcakedesire.com.au Start up costs: $180K-300K PROFILE: The cupcake Desire was established in 2014 as a premier speciality cupcake and cakes store. Having successfully operated for more than 4 years, we have decided to commence franchising to allow franchise partners to join our business. We believe franchising will add more resources, fresh and innovative ideas and support to constantly grow The Cupcake Desire and create product differentiation in the market. The quality of our cupcakes is what people come back for. They are baked fresh everyday using the finest ingredients. We bake Gluten – free, Vegan cupcakes and cakes. We empower and value our customers as they contribute to an overall success of “the Cupcake Desire”

Phone: 0412 511 630 Contact: Kevin Bugeja kevin@franchise4u.com.au earlcanteen.com.au

Phone: 1300 131 888 Contact: Hannah Giang Email: franchise.recruitment@dominos.com.au Web: www.dominosfranchise.com.au

Start up costs: $300,000 - $400,000

Start up costs: $450,000 - $600,000 + GST PROFILE: Domino’s is not just Australia and New Zealand’s leading pizza brand – it’s also one of the world’s most advanced digital retailers and an undisputed leader in online ordering with Australia and New Zealand’s most advanced mobile ordering apps, pizza creation app and only real-time pizza tracker. Being a part of the Domino’s family is a rewarding way to take control of your own personal wealth and be your own boss. You’re not only joining Australia’s largest food chain but a community of passionate, excited entrepreneurs.

PROFILE: EARL is an industry leader of fast, healthy food and specialty coffee operating in 7 Melbourne CBD locations. With a grab and go menu made fresh each morning, to made to order breakfast, sandwiches and bowls, there is an EARL for every part of your day. We are passionate about offering an innovative, quality focused and healthful experience, delivered with a smile every time. EARL Canteen - Sandwiches, Salads, Sweets, Coffee and Service!

There has never been a better time to join the Domino’s family. Enquire now to receive your copy of our Domino’s franchise information booklet.

Phone: (02) 9432 5016 Contact: Felicity Baker FranchiseAdmin@ellabache.com.au Ellabachefranchise.com.au

Phone: 1300 884 165 Phone: 0421 644 661 Contact: John Stanton john.stanton@fibonaccicoffee.com.au fibonaccicoffeefranchising.com.au

Start up costs: $150,000 - $350,000 PROFILE: Ella Baché is Australia’s largest skincare franchise network and leaders in Skin Solutions. The brand has been established in Australia for over 65 years and currently boasts over 160 locations nationwide. As a Franchise Owner, you’ll be given all the support you need to grow your business and develop your skincare knowledge. You can expect ongoing innovation, training, guidance and non-stop motivation to create a successful business from day one.

Start up costs: minimum of $100,000 PROFILE: Fibonacci Coffee is a fresh new cafe concept in the Australian coffee landscape. Started as a family business Fibonacci Coffee keeps on building on those traditional family values. Embracing and promoting innovation in the everevolving cafe industry. Encouraging positive community impact, and providing mouthwatering food offering with flexible menus. Designed with a Co-op concept in mind we provide a platform where partners can contribute and share their ideas as well as learn and support others. Fibonacci Coffee is all about helping entrepreneurs to prosper.

Phone: 07 3357 62 70 Contact: Warren Ballantyne warren@guttervac.com.au www.guttervac.com.au

Phone: 02 8845 0100 Contact: Franchise Development Manager franchise@gelatissimo.com.au www.gelatissimo.com.au Start up costs from: $280,000

PROFILE: Australia’s leading gelato franchise is looking for outstanding franchisees. Prior food experience is not necessary however franchisees must have passion for the system and brand, leadership skills, and enthusiasm for delivering quality products through excellent customer service. Multi award winning Gelatissimo provides full training and on-going support from dedicated operational, marketing and development teams enabling them to produce artisan gelato fresh in store using a simple and proven system.

Start up costs: $79,000 + GST + freight PROFILE: Gutter-Vac is an innovative cleaning franchise using revolutionary vacuum equipment to quickly and effectively clean corporate and domestic gutters, roofs, ceiling spaces, rainwater tanks, storm water sumps and much more. Gutter-Vac is now the largest gutter vacuum cleaning network in the world. The Gutter-Vac network includes 80+ franchises across 7 states and territories including Queensland, Victoria, New South Wales, ACT, South Australia, Western Australia and Tasmania. Gutter-Vac now has an international brand “Outback GutterVac” based in Atlanta Georgia, USA. Gutter-Vac is a proven model that provides a lifestyle or entrepreneurial business. A Gutter-Vac franchise is an exciting and promising small business opportunity that is constructed upon a reliable foundation of simple, innovative and effective equipment, systems and procedures.

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Phone: 1300 658 311 Contact: Bill Lockett info@homecaringfranchise.com.au www.homecaringfranchise.com.au

Phone: 0438 944 026 Contact: Gary Glen gary.g@emirateslr.com.au www.hudsonscoffee.com.au

Start up costs: $80,000 - $120,000

Start up costs: $200 - $500k

PROFILE: Home Caring provides an opportunity to be part of one of the fastest growing sectors in the Australian economy – disability, aged and dementia care. As the population ages, it is anticipated that the number of people over 65 will double in the next 30 years and the number of people accessing the NDIS will grow from 140,000 to over 500,000. Proudly Australian owned, Home Caring provides professional and compassionate personalised care services in the home and is seeking community minded franchisees who can build a solid financial future combining their local networks and the national marketing of the Home Caring and Dementia Caring brands. Home Caring is offering a limited number of locations in a joint venture arrangement, enabling more people to become involved in the industry at a lower entry cost. Full training and support is provided to ensure a successful, profitable partnership.

PROFILE: Our passion for coffee is at the heart and soul of everything we do, and we pride ourselves on maintaining consistently high standards across our entire network. Having great people who pride themselves on operational excellence is the key to delivering a strong brand, network growth and most importantly a loyal customer base. We offer contemporary and modern store environments that have been embraced by our customers in a range of strategically selected locations, including central business districts, regional areas, airports and hospitals.

Phone: (02) 8962 8556 Contact: Maria Chemali franchise@kwikkopy.com.au www.kwikkopy.com.au/franchise

Phone: 1300 097 857 Contact: David Wilkinson sales.au@inxpress.com inxpress.com.au inxpress.com.au/franchising

Start-up costs: $280,000 (for a Greenfield)

Start up costs: $64,950 + GST 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, Startrack and TNT to offer a complete suite of courier and freight solutions, providing increased value and service, saving valuable time and money. Operating in 14 countries with over 350 franchisees globally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include: • Low entry costs • Low Overheads • No inventory/warehousing

• Work from home • High income potential • Ongoing training and support

For more information about becoming an InXpress franchisee contact us now. *conditions apply

PROFILE: Start your franchising journey with Kwik Kopy, the leading provider of design, print and online solutions throughout Australia. Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high quality services on-site. Owning your B2B franchise means operating business hours Monday to Friday so you’ll also enjoy work-life balance. As a Kwik Kopy franchisee you get to become your own boss and be part of a supportive community committed to your success. You’ll also receive all the training you require, so no prior print or design experience necessary. A Kwik Kopy franchisee is young at heart with business experience, entrepreneurial flair and most of all – an absolute passion for customer service. We have both existing and new locations for sale throughout Australia.

Phone: +61 402 171 399 Contact: Liz Seeto franchising@laserclinics.com.au www.laserclinics.com.au

Phone: 0420 900 382 Contact: Casey Reid casey.reid@theleatherdoctor.net.au www.myleatherdoctor.com.au

Start up costs: $290-$350K +GST approximately

Start up costs: $49,000 - $75,000

PROFILE: At Laser Clinics Australia & New Zealand, our vision is to provide affordable, effective and safe non-invasive cosmetic treatments. Since 2008, Laser Clinics Australia has grown to be the largest provider globally of laser hair removal, cosmetic injections and skin treatments. Laser Clinics Australia & New Zealand is an award-winning business with over 100 clinics in Australia and launching in New Zealand. Laser Clinics Australia & New Zealand offers every franchisee partner a unique franchise business opportunity. Each location we open is a 50/50 partnership between the franchisee partner and Laser Clinics Australia & New Zealand. Our unique business partnership model reduces start up and ongoing operational costs.

PROFILE: Our Mission. “To be the worlds number one mobile franchise”. This is fast becoming a reality as The Leather Doctor is Australia’s leading franchise for mobile home services in leather. Acclaimed by the FCA as one of Australia’s top five franchise systems in 2016 and 2017, The Leather Doctor is an essential home service. Established in 1989 The Leather Doctor now support over 60 Franchisees who earn great income cleaning and repairing goods made from leather, vinyl, plastic and fabric. They service a wide variety of industries including furniture, automotive, marine, retail and hospitality. Work is abundant and these new and established small business opportunities, are some of the best in Australia.

We seek out the most motivated individuals who will be empowered to take on the day-to-day responsibilities of running a successful clinic. Franchise partners receive a $100,000 salary from day one.

Phone: 0433 405 737 Contact: Bradley Wright franchise@thelocalshack.com.au thelocalshack.com.au

Phone: 02 9651 3444 Contact: Dom Galluccio franchise@lockandroll.com.au www.lockandroll.com.au

Start up costs: $450,000-600,000 PROFILE: The Local Shack is a relaxed dining experience. All Local Shacks are fully licensed with a menu catering for all day breakfast, lunch and dinner. We have memorable childhood games on each table, such as Guess Who, Jenga and Connect Four - to bring back quality time with families. The unique fitout sets it apart from all other franchises in Australia. The comfortable surroundings ensure the guests feel like its their local every time. Each Staff member plays an important role in The Local Shack - with a structured approach delivering quality food, drinks and amazing table service.

Start up costs: Circa ($100k) PROFILE: Lock & Roll has a great opportunity for you to secure your future and become a part of an exciting venture with strong rewards and real growth opportunities. We are a specialist window and door repair, maintenance & upgrade service for domestic and commercial property owners and managers. With the increasing demand for our services, Lock & Roll is looking for dedicated and customer focused people to become franchisees. We will be able to show you how you can earn a strong rewarding income and ultimately be your own boss with an opportunity to grow a business that fits into your desired lifestyle.

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A-Z LISTINGS

Phone: 02 8115 9550 Contact: Phillip Blanco franchising@madmex.com.au www.madmex.com.au

Phone: 07 55 327071 Contact: Michelle Christensen franchising@lonestarribhouse.com.au lonestarribhouse.com.au

A-Z LISTINGS

Start up costs: $375,000 to $550,000 PROFILE: With smiles as wide as the sky, the Lone Star Rib House offer a stimulating and energetic dining atmosphere, and a taste as big as Texas! With franchise opportunities across Australia, the Lone Star Rib House offers a proven business model with robust operations, training systems and support.

PROFILE: As a thriving fast casual food brand with a strong growth strategy, we are actively seeking new franchise partners. Our menu is influenced by fresh, Baja-style Mexican food made with authentic ingredients true to our roots. We’re focused on leading the way in tasty, fresh and healthy with the freshest produce available, food made fresh every day and allowing our customers to tailor their meals to personal tastes and dietary requirements or health trends. If you have the drive to lead the way with fresh authentic Mexican flavour, a passion to utilise your past business knowledge & skills to deliver an outstanding customer experience, all with a cheeky grin, then this journey is for you! Become your own Head Honcho at Mad Mex, enquire today!

Phone: 1800 625 677 Contact: Sales Enquiries info@majorsgroup.com.au www.majorsgroup.com.au

Phone: 03 9604 9400 Fax: 03 9600 3313 robert@mmrb.com.au www.marshmaher.com.au

PROFILE: PROFILE: Majors Group have been specialising in the distribution of ice cream, gelato, frozen yoghurt, granita equipment, commercial refrigeration and all related products throughout Australia, New Zealand, South East Asia and the Pacific region for over 25 years. Majors group offers the best value, quality products, and excellent service to all of our customers. Majors Group is known for our innovation, efficiency and sustainability. Majors Group is committed to ongoing training and promotions for all our staff and customers to deliver the finest service and support for all. Majors Group is the one stop shop for everything delicious. We offer consultation, training, equipment, ingredients, finance and service solutions to suit your business

Phone: (03) 9600 3440 Fax: (03) 8610 2081 Contact: Stefano Del Monaco stefano@monacolaw.co www.monacolaw.co PROFILE: At Monaco Lawyers we develop comprehensive solutions that drive business success. In partnership with our clients and other like-minded professionals we develop, implement, and oversee all aspects of franchising and licensing, from concept to operation. We help with dispute resolution and are regularly involved in mediating Franchise related disputes. In addition, we provide a full range of complimentary services to support your business. Our extensive experience in both Australian and International Franchising makes us the perfect business partner. So, contact us today for a no-obligation consultation and let us support you in your business journey.

Well recognised and published franchise specialist with over 30 years industry knowledge and experience. Providing advice to: 1. International Franchisors and Franchising. 2. Master Franchising. 3. Dispute Resolution – 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. CCC and Consumer Law advice.

We provide clients fixed fees based on the scope of work. Contact Robert Toth on (03) 9604 9400 or by email at robert@mmrb.com.au

Phone: 07 3221 2221 Contact: Bill Morgan info@morganmac.com.au www.morganmac.com.au PROFILE: Morgan Mac Lawyers is an experienced commercial law and commercial litigation firm with a specific focus in franchising law. Bill Morgan, has over 20 years’ experience in complex commercial litigation involving disputes between franchisors and franchisees. Since 2016, Morgan Mac Lawyers has acted in over 40 franchise dispute mediations. The franchise related legal services Morgan Mac Lawyers provides include: • Commercial litigation • Alternative dispute resolution and franchise mediation • Franchise Dispute solutions • Corporate and business structuring • Purchase or sale of franchise businesses

Phone: 02 9472 8555 Contact: Peter Elligett info@mrsfields.com.au www.mrsfields.com.au

• • • • • •

Advising on franchise documents Franchise employment law advice Preparing franchise documents Risk and compliance advice Commercial and retail leasing Privacy and privacy policy advice

Phone: 1300 730 921 Contact: franchise@myob.com www.myob.com/au/comms/business/franchise-solutions

Start up costs: From $199,000 + GST PROFILE: PROFILE: Mrs. Fields Bakery Café is more than a Café… Mrs. Fields is all about making people feel good through simple, special moments. Whether it be nibbling on a softbaked cookie, enjoying an award-winning coffee, roasted exclusively by Mrs. Fields or sitting down to grab a bite for lunch – whether it be a toastie, a pie or any of our other savoury offerings… we want to serve up moments made better, every time.

Together with an advanced eco-system of technology partners, MYOB can address the pain points in your franchise business, giving you back the time to make more sales, increase profits and grow your franchise.

We have a number of delicious franchise opportunities available around Australia, so if you’re ready to call the shots and run your own Mrs. Fields Bakery Café, contact us today.

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Phone: 07 3088 1232 Fax: 07 3088 1212 Contact: Holly Usher holly.usher@nightowl.com.au www.nightowl.com.au

Phone: 0413 564 565 Contact: Marc Akil franchise@nirvanabeauty.com.au www.nirvanabeauty.com.au

Start up costs: $300,000 - $650,000

Start up costs: $250,000 - $550,000

PROFILE: NightOwl is a national convenience franchise system established in 1975 as Australia’s first 24 hour trading Convenience retail business. First franchised in 1987, we have never stopped growing and with an exceptionally strong brand presence, we now operate over 70 stores throughout Queensland and New South Wales. Retail experience is not necessary in running a NightOwl, but motivation and entrepreneurial skills are a must. You must be determined to succeed and the Franchisee Support Office will help you with the rest. We are seeking motivated and hardworking franchisees with a determination to succeed!

Phone: 03 8851 4200 Fax: 03 8851 4277 Contact: Michael McNamara franchise@noodlebox.com.au www.noodlebox.com.au/franchise

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. As a franchise owner with Nirvana Beauty Laser Clinics, you will experience the satisfaction of working in an exciting and on-trend industry. Every day you will reap the fruits of your own input by delivering results-driven treatments to many satisfied clients. Enjoy working with state-of-the art equipment, a great work-life balance, a personalised support network, and ongoing training through our Head Office What are you waiting for? Contact us today and join in our success.

Contact: Chrissie Blackadder cblackadder@orangetheoryfitness.com.au www.orangetheoryfitness.com.au Start up costs: Please enquire

Start up costs: $175,000 - $200,000 PROFILE: At Noodle Box we believe in the power of the mighty wok. To transform a humble kitchen into a fiery theatre. And transform the simplest ingredients into a feast that’s out of this world. Noodle Box started life in 1996 on the back of a vision of two adventurous young Aussies who were amazed by the fiery theatre and the incredible wok-charred flavours of Southeast Asia’s hawker markets. They brought their experience back to Australia and worked with the best wok chefs in the business to bring new life to traditional recipes and satisfy Aussie tastes. Today, Noodle Box restaurant numbers continue to grow, strengthening our position as Australia’s leading Noodle-based franchise system. And while this growth has been fueled by continuous investments in our brand, our products and our systems, our success is due to the ongoing dedication and loyalty of our Franchise Partners. With franchise opportunities available nationwide, there’s never been a better time to join the Noodle Box family.

PROFILE: Orangetheory Fitness is one of the world’s fastest growing franchises with 1000 studios open across 18 countries and zero studio closures globally. We’re growing rapidly across Australia but there are still some prime territories available. Orangetheory is a one-of-a-kind, group training experience that uses heart-rate based interval training to promote maximum calorie burn. Every single workout is scientifically developed and approved by a Medical Advisory Board to ensure it remains 100% results oriented. As an Orangetheory Fitness franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group, to guide and support you every step of the way.

Noodle Box – Wok Inspired, Market Fresh

Phone: 1800 245 447 Email: joinourteam@poolwerx.com.au Web: www.poolwerx.com.au

PROFILE: Australia’s Franchise System of the Year - Twice!! Build your successful business future with us. We have a career path in business that we can tailor to suit you. As a Poolwerx Franchise Partner, you can start small or jump right in. Join us as a man in a van, progress to multi-vans, a retail store and vans and then in multi store. Or purchase an existing fast start mobile territory or retail mobile business. Whatever your journey, we will help you realise your vision. Our one focus is to create a profitable partnership. We do that by matching over 25 years experience and outstanding support, marketing and business development systems to your energy and enthusiasm. For more information, visit poolwerx.com.au/franchising.

Phone: +61 2 8212 4578 Contact: Vivian Rounsley franchising@powerfulpoints.com.au www.powerfulpoints.com.au Start up costs: Franchise fee: $65,000, Equipment, etc: $7,000, Working capital: $25,000 PROFILE: PowerfulPoints is one of Australia’s leading visual communications companies providing services to mainly medium and large companies. Working with a team of world class designers, copy writers and trainers we help clients create highly effective presentations, videos, motion graphics and other digital and traditional media. We help them communicate effectively in today’s multimedia rich world. As a franchisee, your job is to do the sales and account service. You will have extensive training and ongoing support to help build a lifestyle and valuable asset in this rapidly growing market. This is a limited opportunity, only around 25 franchises will be offered in Australia.

Phone: 1800 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@questapartments.com.au www.questfranchise.com.au

Phone: 02 9708 6959 Contact: Ammar Quettawala info@qtecx.com.au www.qtecx.com.au PROFILE: FRANQ is a franchise and corporate-owned outlets management solution developed by QTECX Solutions. The solutions helps franchisors and corporates to thrive by automating business processes, solving franchise data challenges, and offering business insights for effective leadership. With this solution, the head office and outlet owners will always have access to the latest information and will be able to plan and track the business development teams and franchise partners activities. Modules include franchisee recruitment, store opener, document storage, compliance tracking, territory management, auto alerts and dashboards and many more. QTECX Solutions provides high-class CRM consulting, implementation and integration services. With over 30 years’ global experience of designing flexible and efficient end-to-end solutions, we go above and beyond to help you enhance your customer experience.

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 over 165 franchised properties across Australia, New Zealand and Fiji. For 30 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended stay business travellers. 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.

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A-Z LISTINGS

Phone: 07 3399 3000 Fax: 07 3399 3077 Contact: Patrick Mulcahy franchisedevelopment@shingleinn.com www.shingleinn.com

A-Z LISTINGS

Start up costs: $290,000-$360,000 PROFILE: Shingle Inn is a leader in the boutique café market. Established in 1936, against the backdrop of the Great Depression, Shingle Inn has been the perfect destination to share special times with family and friends for generations. Luxurious high-backed chairs, warm rich colours and intimate booths create an atmosphere that attracts customers and Shingle Inn’s focus on superior quality food and coffee keeps them returning. With decadent cakes and delicious treats, made from traditional recipes in Shingle Inn’s central bakery, Shingle Inn prides itself on an exclusive product range that will not be found in any competing café. Together with Shingle Inn’s constant focus on coffee excellence and freshlyprepared meals on our extensive menu, Shingle Inn is unsurpassed in today’s café culture. Contact us to find out why Shingle Inn could be the right coffee and food business for you. Patrick Mulcahy 0431 649 450.

Phone: 1300 810 233 Contact: Kevin Lacey klacey@snap.com.au www.snap.com.au

PROFILE:

The sophisticated Snap Centre of today is a far cry from the convenience of the corner printer of the 60s, Snap is one of the most recognised brands in Australia with a reputation in its field of quality production and service, and a commitment to people. Snap continues to evolve its franchise model and is building on its reputation for innovation and embracing change through the introduction of new products and services combining the best of traditional print with online marketing solutions. We are Multiple Award Winning Australian Franchise Success Story that has expanded its successful franchise model into Master Franchises in Ireland, China, New Zealand.

Phone: 1300 781 735 Fax: (02) 9150 0837 Contact: Stacy Alogdellis info@soccajoeys.com www.soccajoeys.com.au/franchise

Phone: 03 9830 4166 Fax: 03 9888 6327 Contact: Bettina Davis bettina.davis@snooze.com.au www.snooze.com.au/franchising PROFILE: Snooze has been giving Australians a better night’s sleep for more than 40 years. These eight points form the basis of our franchise support system: Marketing and promotional support Benchmarking & KPI measurement Sales and merchandising support and comparison Product training Site selection and property Business management support negotiation IT services Store design & layout What’s needed to be a Snooze Franchise Partner? Enjoy working with people, have good interpersonal skills, enjoy being retailers and have a strong customer service orientation. Have an ability to organise, supervise and motivate staff. Have a hands-on approach to their business and have a strong work ethic.

PROFILE: Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 11 years We deliver our programs to over 35,000 children annually with over 300 classes in operation across the country. Transform lives, including yours and become a Soccajoeys Franchisee. We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives.

Phone: 0478 652 884 Contact: Stacey Mercaldi staceym@sohq.com.au www.soulorigin.com.au

Phone: 1800SPLASH (775274) Contact: Kylee Clasper admin@splashswim.com.au www.splashswim.com.au Start up costs: From $150,000

Start up costs: $320,000 to $420,000 + GST PROFILE: From humble beginnings in 2011, Soul Origin have grown their 3 stores to 108 stores now trading nationally. With being awarded as one of Australia’s fastest growing franchises in 2017, Soul Origin have exploded onto the scene serving food that is good for the soul. Soul Origin places a strong focus on fresh, quick and nutritious salads and sandwiches that are easy to grab and go, with equally impressive coffee that is made by in house trained baristas. Coupled with providing a customer experience that is fun, engaging and personal, the brand has found their unique stride in the market.

A-Z

• Ongoing training to boost your success • Continuous Head Office support (marketing, operational, financial and systems) • Access to industry leading childhood development programs • Coaching and mentoring workshops • Trusted Australian brand • Become part of a thriving and energetic network of franchisees • Your own business and exclusive franchise zone • Rewarding career in the childhood development industry • Flexible lifestyle.

PROFILE: Splash Swim School is a boutique custom-made swim school. We have a state of the art turnkey fit out. Our pools are custom made to suit any size warehouse. We follow Royal Life’s Swim and Survive program that is accredited Australia wide. Full training and support. An easy 1800SPLASH telephone number to remember. Operation system and full support Splash have their own in house architectural service, project manage and building contractor that are registered in all states of Australia

Soul Origin franchise partners are provided with on-going support from an experienced and dedicated team, who are passionate about your success. Take the steps to join the Soul Origin franchise partner community today!

L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

CONTACT SENIOR ACCOUNT MANAGER CHARLOTTE REDFERN ON 02 8224 8373 CHARLOTTE.REDFERN@OCTOMEDIA.COM.AU

Phone: 03 9645 4798 Contact: Brad Dekkers franchise@sportingglobe.com.au www.sportingglobe.com.au/franchise Start up costs: $700,000+

PROFILE: The Sporting Globe Bar & Grill is Australia’s most loved sports bar and grill franchise. 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. The Sporting Globe business model has been designed to allow our Franchise Partners to focus on what is most important – customers! 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!

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Phone: + 61-02-8091-2520 Fax: +1 416 646 0366 Contact: Fiorella Alva opportunity@tutordoctor.com www.TutorDoctorOpportunity.com

Phone: 02 8874 5000 Phone: 1300TOWNCR (1300 869 627) Contact: Glenn Hames Glenn.hames@towncarsaust.com.au info@towncarsaust.com.au www.towncarsaust.com.au

Start up costs: $60,000

Start up costs: $50,000 - $120,000

PROFILE:

PROFILE: Established in 2009, Towncars Networks Australia provides executive chauffeur services for both corporate & private clients. With a fleet of luxurious vehicles and accredited drivers, we offer our clients competitive fixed-prices, no meters or tolls. Towncars low entry cost, allows new franchisees the opportunity to invest in exclusive areas in both Sydney and Melbourne. Work is not limited to your area, as most corporate jobs are to and from the airports. Franchisees are supported by head office marketing and management. Tools of the trade include our in-house software along with our 7 Day Call Centre.

Tutor Doctor is a leader in providing one-on-one supplementary education to students and adults through in-home tutoring. Tutor Doctor franchisees, who manage a team of professional tutors and work on the business rather than in it, follow an award-winning home-based business model that requires no educational background to operate. Private tutoring is a multi-billion-dollar industry, and Tutor Doctor is experiencing one of the fastest growing international expansions of any educational company in the history of franchising. With over 590 locations around the world, Tutor Doctor has changed the lives of 270,000+ people by helping them their academic goals.

Phone: 04 3909 4068 Contact: Sarah Oram franchising@unique-laser.com.au www.unique-laser.com.au

Phone: 1300 193 178 Contact: Jayesh Kasim jayesh.kasim@valentabpo.com www.valentabpo.com.au/franchise

Start up costs: $100,000 to $450,000

Start up costs: $50,000 + GST PROFILE:

PROFILE: Unique Laser is revolutionising the aesthetics industry… Have you noticed that laser clinics and skin franchises all look the same? Unique Laser is the newest laser clinic and is different. Very different. We have developed a Unique, multi-award winning business model that: • Stands out from the rest in terms of initial investment, return on investment (ROI) and branding • Has exclusive rights to the fastest, newest lasers in the world • Provides complete training, ongoing support and medical supervision We have a range of partnership opportunities available that will allow you to take control of your life within a booming sector. Do not invest in another laser franchise before speaking to us. Contact to us today to see how we can change your life, and the lives of others, for the better.

Valenta is a multi-faceted company that provides outsourced staffing solutions for businesses across verticals. A global company, we currently help hundreds of businesses cut costs and improve efficiencies by outsourcing their non-critical tasks to us. We are currently offering entrepreneurs and industry specialists an exciting outsourced staffing franchise opportunity. Due to the varied nature of our services, our franchise is perfect for anyone who enjoys sales and has good knowledge of any industry. Further, our unique franchise model has our franchise owners focusing exclusively on growing their franchise while Valenta takes care of all operations. The flexibility offered by this allows them to initially develop their franchises part-time until it becomes profitable.

Phone: 1300 345 020 Contact: Malcolm Rees malcolm.rees@worldoptions.com au.worldoptions.com

Phone: 1300 549 200 Contact: Kevin Bugeja kevin@franchise4u.com.au walkersdoughnuts.com.au

Start up costs: $35,000

Start up costs: $100,000 - $250,000 PROFILE: We make food that adds a smile to your day. Just one bite and you’ll know you are eating something special; something reminiscent of your childhood. A simple model with absolutely minimal baking* in store; just filling, decorating and displaying. Our famous varieties include Boston Custard Cream, our signature Vanilla Glazed, Pretzel Choc Caramel, Cherry Bomb, Cookies & Cream and many others. Our *Hot Jam doughnuts are freshly proofed and cooked on site throughout the day. The aroma is impossible to resist! Together with our specialty-coffee created especially for Walker’s, our Classic hot dog flavours, our soda-fountain diner Milkshakes, and our speciality Heritage Sodas imported exclusively by Walker’s Doughnuts directly from the USA, you’ll find us an unbeatable and irresistible offering.

Contact: Chrissie Blackadder chrissie.blackadder@collectivewellness.com.au www.xtendbarre.com.au Start up costs: From $120,000

PROFILE: Barre is one of the most popular programs in boutique fitness, with a loyal client following that continues to grow. Xtend Barre leads the barre industry with its unique teaching formula, dynamic programs and personalised approach. Founded on pilates, it’s a safe and effective workout that delivers RESULTS. When you invest in Xtend Barre, you’re investing in much more than a barre studio. You’re joining the world’s biggest barre franchise, and an ambitious and supportive community that spans the globe. As an Xtend Barre franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group (CWG), to guide and support you every step of the way.

PROFILE: World Options is a company that resells transportation services. The business model is simple. We buy transportation services at large volume discounts and resell to SMEs. We have a world class online shipping platform that connects our customers with major transportation companies to select and compare the best and most competitive transportation solutions. The Australian transportation industry has a market value of over $65 billion which we successfully compete and operate in. It is a home-based business that only requires a telephone and computer, successful franchisees in the UK earn in excess of $65,000 per month.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

NATIONAL SALES & MARKETING MANAGER DAVID STRONG ON 02 8224 8370 DAVID.STRONG@OCTOMEDIA.COM.AU

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A-Z LISTINGS

FINAL WORD

LEGAL ADVICE IS AN UNNECESSARY EXPENSE MARIANNE MARCHESI Legalite

hen you’re buying a franchise, you’ll no doubt be looking at a long list of expenses and will be striving to save every dollar where you can. As a result, some franchisees choose to forgo getting legal advice to save on costs. But is it essential to get legal advice before entering into a franchise? To answer that question, let’s have a look at some of the potential consequences of not getting advice (based on real-life examples):

•

A franchisee signs a “prior representations deed” before signing the franchise agreement. A year later, certain promises made by the franchisor don’t eventuate. Unfortunately, the franchisee didn’t realise the importance of the prior representations deed and the franchisor relies on this as evidence that the promises were never made. An individual buys a business which is not treated as a “franchise”. However, as it turns out, the arrangement falls under the definition of a franchise agreement and the franchisee should have received a disclosure document as well as certain other rights. The parties engage in a lengthy and expensive dispute about a whole host of issues, many of which could have been avoided had the arrangement been properly treated as a franchise. A franchisee enters into a franchise agreement which contains a number of unfair contract terms, including that a particular fee can be unilaterally increased by the franchisor at any time. The franchisee ends up spending thousands of dollars in legal fees arguing that the clause is void. While it was successfully challenged, a good lawyer would have had this clause struck out at the negotiation stage,

thereby avoiding the need to incur further costs in disputing the clause. • A franchisee with a long history in hospitality buys into a cafe franchise. The franchisee doesn’t realise when signing the franchise documents that the franchise agreement contains strict restraint provisions. After the end of the franchise agreement, the franchisee can’t operate a similar business for two years after expiry, thus destroying his livelihood. There are plenty of other potential consequences of failing to obtain legal advice. At the very least, franchisees should understand their obligations under the franchise agreement before signing. Not only that, but many disputes can be avoided if franchisees seek advice on the franchise arrangement and therefore avoid any “surprises” down the track. On a more positive note, getting

legal advice will also help you to understand your rights under the franchise agreement. Franchisees are afforded a Shan and number ofGerard rightsO’Sullivan under the Franchising Code of Conduct which it is useful to be aware of. For example, if there is a marketing fund, franchisees are entitled to the marketing fund’s financial statements each year. When you consider the overall cost of buying a franchise, getting legal advice is a very small portion of this. And while it may sting at first, it can not only save you thousands of dollars in the future, but also considerable heartache and emotional energy. So in answer to the question – you simply can’t afford not to get legal advice. n

Marianne Marchesi is the award-winning founder and principal of law firm Legalite.

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BRETT HAD ALL THE RIGHT INGREDIENTS TO BECOME

A 19 STORE SUPERSTAR 2007 2004

BUYS FIRST STORE

THE HITS ORE T S 0 1 K MAR

2016

FIRST ADDS TIONAL A N R INTE E STOR

Brett Moore Multi-Unit Franchisee

B T UY ST HIR S O D RE

06 UR 20YS FORE S

RE MO L SEL ZZA E PI OR EM V HA UN! F

O E BU M OR T S

CU S RR COTO EN U RE T 19 NT

Brett Moore always had the right ingredients to build a successful business: a belief in people, an appetite for hard work, and a hunger to succeed. As a 19 store multi-unit franchisee with stores across Australia and New Zealand, Brett’s shown that by taking the leap, you can reap the rewards.

To start building your Domino’s business, visit dominosfranchise.com.au.

OWN YOUR FUTURE

With a network of over 360 restaurants across the country, Red Rooster are spreading their wings and looking for owner/operators to open new restaurants in regional and metro NSW, QLD, VIC and TAS. ENQUIRE TODAY www.redrooster.com.au/franchising