Inside Franchise Business - Mar/Apr 2018 by Octomedia Pty Ltd

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

MARCH/APRIL 2018

ISSUE 31 VOL 2

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CONTENTS

REGULARS

LEADERSHIP

5 6 10 108 110 111 112 113

14 TOP 10 CONSUMER TRENDS

EDITORIAL

What customers will be shopping for in 2018.

GLOBAL EYE INSIGHTS

32 CLEANING UP

From a single territory to a divisional franchisor: one franchiseeâ&#x20AC;&#x2122;s story.

34 FROM TRADIE TO TRADER

GLOSSARY

What turned this successful sparky into a stockmarket trader?

INFLUENCERS

18 A MISSION TO REINVENT FAST FOOD

TIMELINE RESOURCES

How Mexican fast food chain Guzman y Gomez is striding into the future.

CHECKLIST

37 MODEL BEHAVIOUR

Food franchises are finding ways to embrace the new retail landscape.

24 BRAND NU WAY

Nutrition Station has a new look and a new name.

26 FROM FARM TO PLATE

40 COVER STORY

28 EXERCISING THE DREAM

56 EXPLORING OPPORTUNITIES

Yarra Valley Farms is ramping up its recruitment.

How Andrew Simmons got Vision Personal Training up and running.

INDUSTRIES

FRANCHISE BASICS

60 TAKE A BITE

80 RESEARCHING YOUR BUSINESS

Emerging franchise chains in Australia talk all things burgers.

OPPORTUNITY

FCA chair Bruce Billson offers insights into crucial research before you buy.

Showcasing franchisee success: nine longterm franchisees share their stories.

A dedicated franchising expo is a chance to find out more about the sector and discover new brands.

102 HOW TO AVOID A FRANCHISE FAIL The ACCC points to precautionary steps you can take as a potential franchisee.

82 PUT YOURSELF IN THE PICTURE

Find a franchise that can accommodate your dreams - no matter how big your ambition.

87 MARKET FORCES

What to look for when you are searching for an industry with business potential.

68 CHOCOLATE CHAMPIONS

The franchise sector plays a dominant role in the niche chocolate cafe scene.

75 THE PROPERTY SECTOR

This multi-faceted industry opens up different investment opportunities.

91 WHAT'S THE FRANCHISORS VISION?

How to read between the lines and make a smart investment decision.

96 QUESTIONS TO ASK

Check out these queries to pose to franchisors.

99 JOINING THE BRAND WAGON

Put your passion in perspective before you sign up to a new future. MARCH/APRIL 2018 | 3 | WWW.FRANCHISEBUSINESS.COM.AU

108 5 REASONS...

Why you could be the perfect franchisee.

122 FINAL WORD

Professor Andrew Terry on on whether franchising is a flawed business model.

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EDITORIAL

Meet the loyalists Showcasing success from franchisors to long term franchisees Who doesn’t love a great success story? Well, there are plenty to be found in franchising, despite the mainstream media’s focus on the franchise failures. And in this issue Inside Franchise Business continues its series showcasing success, putting the spotlight on long term franchisees who have notched up decades with the one brand. The super-achiever in this section is our cover franchisee, Brad Peatling, who has turned his love of baking into a career spanning three decades...and still going. Turn to page 40 to read more about The Loyalists; we hope this inspires you to see the potential of investing in and running a business that you love, all backed up by the support of a professional franchise. That’s not to say there aren’t mistakes made in franchising, but the best solution to the problem of franchise failure is to understand clearly what’s involved, the responsibilities of the franchisee and the franchisor, and to thoroughly research the business before signing up to a franchise agreement. The Franchise Basics series in this edition considers what top level research, or due diligence, can involve (before you get into the legal and financial aspects where you need expert insights) from researching the market, doing due diligence on the franchisor, and understanding the brand. You can find all this on page 80. One way to get a good idea of how franchisors present themselves and their brands is to visit a dedicated expo. The Sydney Franchising & Business Opportunities Expo is in March, and provides the chance for would-be franchisees to see a selection of franchise systems in one place, and to access expert advice and hear from franchisees themselves in the free seminar sessions. Find out more on page 56. Inside Franchise Business will be there - come and say hello.

EDITOR

SENIOR ACCOUNT MANAGER

SUB-EDITOR

CLIENT SUCCESS MANAGER

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

Louis Allen louis@octomedia.com.au

JOURNALIST

Gali Blacher P: 02 8224 8355 gali@octomedia.com.au

GENERAL MANAGER

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

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

Jarha Avila P: 02 8224 8375 jarha.avila@octomedia.com.au

Marketing & sales co-ordinator

Sar a h Sarah Stowe

Editor

OCTOMEDIA

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GLOBAL EYE

FRESH FACES IN FRANCHISING A Vietnamese urban tuck shop, superfood cafe, and a locks and bolts business are launching into the Australian franchise scene. MISSCHU A rebranded misschu tuckshop is set to rollout nationally, led by managing director Gabi Machado who has joined forces with DC Strategy consultants to expand the network from three to 50 over the next five-plus years. With a background in private equity, Machado approached the founder of misschu, Nahji Chu, in mid-2010 to bring her popular Sydney-based Vietnamese concept to Melbourne. “We are currently in discussions with several potential tuckshop owners. Our ideal candidates are individuals and couples who are passionate about healthy food and lifestyles, understand the importance of customer experience and can remain cool and calm under pressure,” said Machado. Consultants DC Strategy director of recruitment James Young sees the misschu brand and offering as something quite special.

“When it kicked off in 2009, misschu really set the scene for urban street-food brands. The food offering is inspired by Vietnamese and Chinese flavours but the menu is quite unique to misschu. The brand itself is quirky, fun and easy to fall in love with. We are already getting really good traction with this exciting opportunity,” Young said. New tuckshops will receive direct supply of fresh seafood, vegetables, meat and poultry from local suppliers and will continue to wok-to-order. Continual innovation in every aspect of the business and retaining a freshly cooked product are seen as key points of difference in the roll-out space.

DELICIA ACAI AND PROTEIN BAR Scott Dempster always knew that Delicia Acai and Protein Bar would be a franchise. He set it up from the get go to

be a nationwide family loving franchise chain. “I tried and tested everything. From the beginning I put measures in place to make sure that this would be a franchise,” he said. Eighteen months after launching his first cafe, his dream has come true and three stores are already running under a franchise model in Adelaide. He is in discussions currently with a potential franchisee in Perth. Dempster’s hope is to have 50 locations Australia wide and encourages mums and dads who want a little change to come and join his brand. “We are a very very affordable franchise and we want those down to earth, family oriented people to come and join this growing brand,” he says. The business owner is passionate about health and Brazilian Jiu Jitsu and discovered acai in 2011 on a trip to Brazil. He even named the café Delicia which is Brazilian for delicious. Dempster and his wife Katie sold their house in order to get the business started. This was a risk that has certainly paid off. The husband and wife team have worked “day and night” to make sure all processes are in place for a successful and easy to operate franchise.

LOCK & ROLL This specialist in windows and doors will be converting to a franchise model. There is lots of opportunity for potential franchisees interested in all things ‘handy man’. MARCH/APRIL 2018 | 6 | WWW.FRANCHISEBUSINESS.COM.AU

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GLOBAL EYE

The business has existed for 11 years and currently has four licensees that are converting to franchisees. “The plan is to have 20 franchise regions in Sydney and we have mapped it out to 80-100 across Australia,” said Dom Galluccio, general manager. Once the new franchise model is established in Sydney, Galluccio thinks they’ll look at either Adelaide or Queensland next. “Our five year plan is to be represented in every state with the franchise model operating,” he said. Galluccio was brought on as the GM in order to help make the transition from licence group to franchisee.

TAKING STEPS FORWARD FCA APPOINTS CEO The Franchise Council of Australia has appointed a new CEO. Mary Aldred will take up the role on 3 April, 2018. Aldred is currently CEO of the Committee for Gippsland, a position she has held for seven years. Her career also includes political experience. Aldred was an intern in Washingston with a US Senator, and has worked with Bruce Billson, chair of the FCA. “More than a decade ago, Mary worked with me as part of my Ministerial office team at which time I became aware of her considerable talents and capacity which have been deployed and further developed in the years that followed,” Billson said. Aldred described the role of CEO at the Franchise Council of Australia as “a once in a generation opportunity to work in the engine room of the national economy. There are transformational challenges and opportunities presenting to the industry,” she said. "The industry is about people, and I want to drive a renewed focus on the mums and dad working small businesses to create jobs, young people in our industry starting their first job, and building regard and recognition for a sector that contributes $146 billion to the Australian economy," she said. Aldred left school at 15 to work in her parent's small business, and so brings a real life understanding of small business, said Billson.

FAST FOOD CHAINS DITCH PLASTIC BAGS Australian owned and operated national brands Red Rooster and Oporto as well as WA fast food favourite Chicken Treat have begun phasing out single-use plastic bags. With stock no longer being replenished, some restaurants will be plastic bag free in the next month, with all of the network onboard with #banthebag by July 2018. This will see 8 million plastic bags removed from future circulation and landfill.

BITCOIN TREND HITS FRANCHISING In February Boost Juice announced it would be the world’s first retailer to give away Bitcoin, currently valued at over $14,500 each. To win the four Bitcoins, one given away each week, customers had to guess the value of the crypto-currency at 12pm the next day, using the Boost Juice app the closest prediction winning the Bitcoin. Christian McGilloway, Boost Juice’s chief technology innovation officer, said “it's exciting that as a brand, we’re playing alongside our customers. We have no idea if we are giving away $8,000 or $28,000 next week.” McGilloway said the brand is working hard on integrating cryptocurrency payment into its app to provide a great customer experience. In the meantime, Melbourne’s ‘branchise’ (a model between franchise and independent) Burger Love has embraced the growing adoption of cryptocurrency by becoming the first fast food restaurant to accept top ten digital currency, XEM. The burger chain’s fan base and techsavvy holders of the digital currency will now be able to purchase their favourite gourmet burgers from its South Melbourne branch. Head of marketing and branding, Steve Agi, said, “Cryptocurrencies are the future of trade. It is a fascinating concept that our clientele is already on board with and we’re ready to stop watching from sidelines." n

MARCH/APRIL 2018 | 8 | WWW.FRANCHISEBUSINESS.COM.AU

NOVELTY OR NICHE? A FIRST FOR CANNABIS In the US a marijuana business is turning to franchising to grow from the two Green Man stores it currently operates to a national chain of dispensaries. The business will be rebranded ONE Cannabis. Christian Hageseth began the operation nine years ago in Denver and has built it up to a US$6.5 million business. Through franchising he plans to open 50 stores across Colarado, Ohio and Michigan within the next three years. Hageseth told local media outlet BizWest, “There’s a clear need in the market for a franchisor in the cannabis space. It’s a difficult business.” Running a cannabis outlet requires appropriate licensing, product sourcing and marketing, all aspects eased for a franchise who is following a system, he said. PLACENTA PLUS A celebrity trend for taking placenta pills after childbirth could become more mainstream if a UK businesswoman is successful in franchising her concept. According to The Chester Chronicle, mum of three, Danielle Kinney, used placenta pills to ease her severe postnatal depression. Unable to source a local manufacturer able to undergo the convoluted process of turning a placenta into pills Kinney made the capsules herself, and two years ago set up the business selling the branded Placenta Plus tablets. “I started this business to help women but cost and distance meant it wasn’t available to many and that got to me. Now I’m changing that,” she told the media outlet. Kinney claims interest from international as well as local prospective franchisees.

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INSIGHTS

TOP

CONSUMER TRENDS

By keeping abreast of retail trends, you can give yourself a head start in business.

hat will be driving consumer choices this year? The latest Euromonitor report predicts 10 top global consumer trends for the next 12 months, revealing continued disruption for business. Leading the way in shaping change are mobile technology and internet access. There is an expectation of boosted consumer expenditure, the greatest growth since 2011, but with minimalist

and cost-conscious overtones, benefiting budget retailers in particular. Alison Angus, Euromonitor’s head of lifestyles research and author of its report Top 10 Global Consumer Trends for 2018, says consumers of all ages want and need less. “Ownership is under question, and flexible, minimalist living is gaining popularity, with consumers sharing everything from clothing, household items and pets through to cars and living spaces." There is a growing preference for

what Angus terms “entrepreneurial lifestyles on the road” and a general distrust for business.” Talking about sustainability and social responsibility is no longer enough, and this year consumers will seek more radical transparency from brands." The trend for customisation deepens, with consumers interacting with design and production. Here are Euromonitor’s 10 top trends...

MARCH/APRIL 2018 | 10 | WWW.FRANCHISEBUSINESS.COM.AU

CLEAN LIFERS

1. CALL-OUT CULTURE Hashtag activism sees empowered consumers call brands to account and petition for change. Consumer opinion is not just social-media based, customers are boycotting or buying from brands according to their corporate values.

These abstemious, stay-at-home consumers are clean living: think increasing sobriety, rejecting animalbased products, saying no to reckless spending, embracing multi-generational travel, early-morning yoga raves.

2. THE BORROWERS Community-minded sharers are rejecting conspicuous consumption, and this is not just the millennials but baby boomers, who are downsizing in favour of flexibility. Renting goods is becoming more popular as affordability, convenience and sustainability drives these consumers who use technology to seek more efficiencies in shared services.

5. ADAPTIVE ENTREPRENEURS

IT’S IN THE DNA

Great news for franchising – there is a strong trend for selfemployment as consumers reject traditional nine-to-five working models and are prepared to take risks. Macroeconomic factors, lifestyle changes and the internet are encouraging alternative ways of working. Consumers are more adaptable and seek adaptable brands.

Consumers want to know what makes them special – quite literally. They are seeking genetic information that helps them with health, fitness, nutrition and skincare. Businesses using this include wine selection based on customer genes and meals to suit DNA profiles.

MARCH/APRIL 2018 | 11 | WWW.FRANCHISEBUSINESS.COM.AU

INSIGHTS

RETAIL TRENDS

Inside Retail Weekly has spotted these top five macro-trends for the year ahead...

VIEW IN MY ROOMERS Consumers want to connect the digital and the physical, visualising products before they try them and looking for immersive experiences. Greater technical offerings in smartphones drives this trend, and augmented reality is key. Global internet retailing is expected to increase by 13 per cent this year.

1. SPEED, SPEED, SPEED

Fast delivery is shaping up to be a focus not just for the increasingly competitive online marketplace, but also for brickand-mortar stores, which are adopting the click-and-collect model.

SLEUTHY SHOPPERS Say hello to investigative consumers. From Gen X to Gen Z, these consumers draw battle lines, and brands are either friend or foe. Transparency is key: the purchasing journey starts with the supply chain, and consumers want to be comfortable with the final product.

2. CUSTOMER CONVERSION

As customers know what they want when they visit a store, it is important to ensure good stock levels and easy payment options such as buy-now, pay-later or contactless card systems to help convert the potential buyer into a paying customer.

3. DIFFERENTIATE OR DIE

Retail Doctor Brian Walker says this year will be less about store size and product price, and more about remarkable experiences. “Expect data technologies to drive this.”

4. CONSOLIDATION

On the horizon, expect further mergers and acquisitions as retail faces continuing challenges. Multibrand retailers in particular are likely to restructure to focus on the most profitable parts of their business, suggests Deloitte’s Australian retail lead David White.

I-DESIGNERS

7. 8.

Think re-evaluated spending habits, the sharing economy and the desire to create. The result is personalised products that match the consumer’s wish for authenticity and a mindful approach to buying. These consumers want to get their hands dirty, so long as the process is easy.

10.

5. SUSTAINABILITY

Retailers who can showcase their sustainability goals are likely to come out on top, winning over the socially and environmentally aware younger generation of shoppers. Expect to see more electric vehicle recharging opportunities and shopping centres boasting their carbonneutral status.

CO-LIVING

THE SURVIVORS

Shared living, shared resources, shared interests. These consumers are disrupting real estate with an alternative approach to urban living.

Consumers are staying frugal, even 10 years on from the GFC and despite improving economies. Second-hand outlets and budget retailers help cash-poor consumers make ends meet.

MARCH/APRIL 2018 | 12 | WWW.FRANCHISEBUSINESS.COM.AU

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

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FRANCHISING

THE LIST

10 FRANCHISING

THINGS ABOUT

Sub

Franchising is all about small business, but it’s truly big business when you look at the numbers. Did you know the entire Australian franchising sector is worth an estimated $177 billion? Check this and other crucial statistics from the latest Franchising in Australia survey.

1. CONSUMER CAUTION Financial instability has put the brakes on the domestic market over the past five years with consumers worried about their ability to repay household debt. This is despite growth in real disposable income. A decline in working hours as more people take on part-time roles has also limited the affordability of leisure and recreational activities.

2. PROFIT GROWTH The sector looks set for steady profit growth over the next five years, though this will vary by industry. Retail and food are heavily contested, while newer specialisations such as education and healthcare have significantly less competitive marketplaces. Cost control has been key to ensuring profitability, and larger groups have benefited from economies of scale, brand awareness and market penetration.

3. DEMAND FOR SERVICES Franchising is seeing growth in servicebased industries – health, nutrition and wellbeing, aged care and recreational services. These need networks of 20-plus outlets for the franchisor to generate enough income to meet overheads and marketing costs.

4. MORE ONLINE RETAILING

5. LIFE CYCLE MATURITY

6. HEALTHY BOOST

Online retailing is used by only 36.7 per cent of franchises, but another 32.7 per cent expect to jump on the e-commerce juggernaut soon. The challenge is to ensure digital sales do not take sales revenue from franchisees’ bricks-andmortar stores.

Franchising is predicted to underperform slightly in comparison to the broader Australian market over the next few years: 2.1 per cent against 2.5 per cent annualised growth. This is a mature industry with more than half the businesses involved trading for 10 years.

The trend for looking after ourselves is having an impact on the franchising sector. Franchises are expected to see 1.6 per cent annualised growth through to 202223, bringing revenue across the sector to $191.5 billion, much of that driven by the trend for wellbeing and nutrition. Growth is expected to be delivered as new firms join the franchised health and community services sector.

MARCH/APRIL 2018 | 14 | WWW.FRANCHISEBUSINESS.COM.AU

THE LIST

7. SMELL THE COFFEE Hotels, fast-food outlets and coffee shops are a growing segment of the sector. New, smaller businesses have climbed on the healthy-eating bandwagon, making the segment more competitive. Coffee has been a strong driver in this market.

8. PART-TIME TREND

9. EASY TO JOIN

There are more jobs available as the growth of franchising outlets in individual systems has increased employment opportunities. These positions are more often in part-time roles, a trend reflecting the broader business landscape.

Barriers to entry are low, and it is easy for new players to join the franchise sector. It is a diverse and extensive community of businesses, and the top four players share less than 40 per cent of the market.

RETAIL FOOD GROUP: ESTIMATED MARKET SHARE 2.1 PER CENT Multi-brand franchisor Retail Food Group has acquired many brands over the years since its establishment in 1989 and becoming a public company in 2006. Included in its portfolio are the household names Brumby’s Bakeries, Donut King, Gloria Jean’s Coffees and Michel’s Patisserie. Sales predictions across all the brands was $3.6 billion in the five years through to now.

7-ELEVEN: ESTIMATED MARKET SHARE 0.8 PER CENT A major global licensor and franchisor of convenience stores, 7-Eleven has been in Australia for 41 years. As well as convenience shopping, two-thirds of the store network also sells fuel.

10. MARKET SHARE BY COMPANY METCASH: MARKET SHARE 5.5 PER CENT Metcash had total revenue of $14.2 billion last financial year from its three divisions, which employ about 6000 staff members – Metcash Food and Grocery, Australian Liquor Marketers, and Independent Hardware Group (Mitre 10, True Value Hardware, Home Timber and Hardware, Thrifty-Link Hardware, Hardings and Hudson Building Supplies). The food and grocery division distributes to about 1600 independently owned stores, and runs a convenience store segment under the IGA brand, which has been challenged and has underperformed. A focus on cost control is expected to see a modest improvement in turnover across the Metcash business, which also includes Cellarbrations, IG Liquor and Lucky 7. HARVEY NORMAN: ESTIMATED MARKET SHARE 3.8 PER CENT Last June there were 194 Harvey Norman, Domayne and Joyce Mayne stores across Australia. Sales for the five years to now are expected to reach $6.7 billion, a 4.3 per cent rise that includes the income received from franchise fees. Against the broader arena, the chains are likely to perform well, thanks in part to extensive product line across multiple categories.

MCDONALD’S: ESTIMATED MARKET SHARE 1.1 PER CENT Fast-food giant McDonald’s launched in Australia in 1971 and now has about 950 outlets employing about 5990 staff members across the nation. The business has some corporately owned and run stores, but more than three-quarters of outlets are franchised. By December this year, expected annualised growth of 2.3 per cent will take sales and franchise fees revenue to $1.9 billion. While the business has not matched industry performance levels, it has a continual commitment to menu innovation. SUBWAY: ESTIMATED MARKET SHARE 0.8 PER CENT Now regarded as the world’s largest franchise chain (for number of outlets), the Subway business amounts to more than 44,000 outlets in 110-plus countries. There are more than 1400 independently owned and run stores in Australia.

DOMINO’S PIZZA: ESTIMATED MARKET SHARE 0.6 PER CENT Domino’s Pizza Enterprises runs the Australasian market and has added outlets in northern Europe (Belgium, France, Germany and Holland) and Japan to its portfolio. There are more than 600 Domino’s outlets across Australia. YUM! RESTAURANTS: ESTIMATED MARKET SHARE 0.5 PER CENT The Australian subsidiary of fast-food business Yum! Brands in the US runs the KFC brand. Until 2016 it also held the Pizza Hut licence. Collins Foods in Queensland is a franchisee, running 206 KFC stores. In total there are more than 612 outlets across Australia, 160 owned and run by the company. CRAVEABLE BRANDS: ESTIMATED MARKET SHARE 0.4 PER CENT Previously known as Quick Service Restaurant Group, Craveable Brands has a sole focus on the fast-food chicken sector, with Chicken Treat, Oporto and Red Rooster. There are more than 570 stores serving about 150,000 customers daily. The business is owned by private equity firm Archer Capital. Source: IBISWorld, Franchising in Australia, January 2018

MARCH/APRIL 2018 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

A MISSION TO

REINVENT FAST FOOD Mexican chain Guzman y Gomez is striding into the future By Gali Blacher

here are a lot of exciting developments happening with fast food franchise Guzman Y Gomez which recently announced that it will be selling a stake of the business.

Mark Hawthorne, GYG CEO, says “Guzman y Gomez is currently going through the process of raising capital in excess of $25m to expand our growth into international and domestic markets and to support our innovation plans in digital and technology. We are in the early stages of discussions but look forward to sharing our growth plans in the future.” This stalwart of the Mexican eats scene is all about reinventing fast food, making it ‘vibey’, friendly, affordable, cheap but also good quality. This may seem difficult to some but to Hawthorne this is what gives him his drive. Hawthorne has been in the fast food industry for more than 20 years and has enjoyed time at the helm of both UK and NZ McDonald’s.

He’s been a passionate advocate, and consumer, of each brand. “When I was the GM of McDonald’s I ate the food five times a week but I had to do a lot of exercise. I now eat GYG five times a week but I don’t have to exercise as much,” he says. Hawthorne was initially hesitant to take on the GYG CEO role as he had been in the fast food industry for about 27 years. But he had never before seen a fast food brand serve food so quickly while maintaining good quality. And so tempted by the “amazing quality” of food, and encouraged by his wife, the fast food veteran simply couldn’t turn down the opportunity.

ADVANCING THE BRAND GYG has been improving the offer to customers through menu updates and fresh ways of reaching fans of the brand - think new size orders, new fries, more drive throughs, burrito delivering drones. The fast food chain rolled out a

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LEADERSHIP

new menu strategy which started around nine months ago with the implementation of ‘real potato fries’. While it may not seem like a big innovation to have 100 per cent real potato fries, Hawthorne says many fast food restaurants use chemicals and the fries are not pure potato. “If we want to reinvent fast food we have to make sure that our food is always top quality while remaining quick and keeping our Mexican feel,” he says. The skin is left on the potatoes to keep all the nutrients. There are a lot of Mexican sauces to choose from like chipotle mayo and jalapeno tomato sauce. As part of the menu revamp, the fast

Mark Hawthorne

When you look at GYG you see this fabulous brand and culture and energy and we are very protective at making sure that doesn’t change.

food chain also incorporated a ‘mini’ range in order to appeal to a wider demographic. While some franchisees may have initially been worried about this new move, it actually proved to be a huge financial success. “Because we have the fries as well, we are actually getting more transactions and more often,” says Hawthorne. The mini range includes burritos, enchiladas, nachos, burrito bowls, fries and salads. The team plans to be aggressive with expansion and open 25 stores a year with most of these franchised including 15 drive throughs. Hawthorne points out the new changes and the growth these bring to the brand equate to endless possibilities for franchisees. In fact, some of the best ideas have come from franchisees. “One of our franchisees in Queensland opened the first drive-through and we were a little nervous about this but it has been such a success and shows us we really can reinvent fast food,” he says.

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02 9651 3444

LEADERSHIP

LEADING FROM THE FRONT The fast food chain has also announced a partnership with UberEATS which means franchisees will have more access to those who want fresh Mexican food delivered to their door. It is a challenge to ensure the delivery market remains profitable for the franchisees, Hawthorne says, but the brand is committed to the process; he believes there is huge growth in that space. If the food and delivery is top quality then guests will be satisfied and that makes franchisees very happy, he says. GYG helps franchisees set up the supply chain, point of sale configuration and IT systems. Once they’re ready to go, a coach will check in to make sure the franchisees are receiving the strategic advice and guidance they need. Hawthorne is passionate about innovation and technology. When Project Wing (run by a business related to Google) approached the Mexican brand last year about using drones for delivery, there was no hesitation on the CEO’s part: with a mission to reinvent fast food, using ‘revolutionary’ technology was very much on brand. Eligible customers purchase GYG goods from a Project Wing application on their smartphones, which are fulfilled from a mobile kitchen and warehouse in the surrounding area. Drones deliver directly into the backyards or doorsteps of customers, up to 10 kilometres away from pick-up points. The commercial trials have been approved by the Civil Aviation and Safety Authority (CASA). Hawthorne says the drone delivery in Royalla, outside Canberra, is going really well and has received a very positive

reception. There are hopes this service will expand across Australia. The business is focused on growth. The fast food chain has 100 restaurants including those in Singapore and Japan. Just a few months ago the chain opened its flagship store in Adelaide, the first South Australian outlet in the network. It was the first restaurant to launch with the total menu offering including breakfast, coffee, the Minis range and fries, and provides customers with cutlery, plates and table service.

FRANCHISEE TRUST Hawthorne believes his expertise in supply chain and franchising has helped him be successful in his current role. “When you look at GYG you see this fabulous brand and culture and energy and we are very protective at making sure that doesn’t change,” he says. “At the heart of a successful [franchisor/ franchisee relationship] you really have to have a brand strong enough to grow business and drive growth. “You need to have a business model that will lead to a strong financial outcome for franchisees. If you don’t have that then that is where issues come about.” GYG is also very careful with the talent it chooses. Franchisees become a part of the business’ family and need to be vibrant,

passionate and share a love for quality, authentic and great tasting food. “[The franchisees] really are the face of the brand and the ones there keeping our customers happy,” says Hawthorne. The business is committed to complete transparency and holds conferences, webinars and has regular round table events for franchisees. “You have to be very thoughtful with how you engage with a franchisee. We need to make sure we are having two-way conversations. “We want our current franchisees to be able to be proud of the franchise and speak greatly of their relationship with their franchisor so that new franchisees feel a trust in our brand,” says Hawthorne. “It is why it is so important to have that positive and open relationship. “Ensuring there is a model strong enough that our franchisees can do really well is very important. They need to be strong financially - you need to make sure they are always capable of doing that,” says Hawthorne. n

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LEADERSHIP

BRAND

NU WAY This healthy eating chain has taken on a fresh new look and boosted its franchise support structure. By Gali Blacher

utrition Station has rebranded itself under the new name NU Healthy Café.

The rebranding includes a fresh look and interior, a new name and logo and a restructure of training and menu development. The chain hopes to be fully rebranded by next year. The new look is designed to eliminate customer misconceptions that the café is only for gym junkies or that it is a supplement store. Brock Waugh, marketing manager, NU Healthy Café says the new changes will benefit franchisees and they have taken to the rebranding really well. “The original idea for rebranding came about because franchisees were [concerned] about being mistaken for a supplement store,” he explains. “There are some slight growing pains but we are educating our franchisees on maintaining an online presence and walking them through the rebranding.” The rebranding began last December

and some new stores have opened sporting the brand new look. The First store to go through a complete rebranding was unveiled in February in Emu Plains, NSW. A fresh watermelon colour is a feature in the redesign, highlighting the family friendly and warm atmosphere of the cafe. The new colour palette and interior is designed specifically to attract female shoppers.

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The franchise is targeting this demographic in order to reach Australia’s highest spenders and are targeting mums in order to reach the next generation. “We really want to promote healthy eating in children and appealing to mums is how we are going to do that,” says Waugh. “But really, we want to be warm and inviting for everyone because healthy food doesn’t discriminate.” There has also been a menu revamp which has also come with a complete cutlery change. “We introduced a new spin on the ‘make your own meal’ which is now more visually appealing and has more colour

and more flavour. It’s more appealing to a wider range of clientele rather than your average broccoli and protein dish,” says the marketing manager. There has also been a big change at head office with staff member numbers almost doubling, allowing managers to have a more direct involvement in training and development for franchisees. The franchise also finds it important to learn from their top franchisees and ask what works and what doesn’t. “We took our top franchisees for dinner and ran our new ideas past them. This helps us to refine our ideas and also helps ease them into change,” says Waugh.

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It was the right time for a refresh and an expansion, he says. It is still early days but the franchise has already seen positive outcomes from feedback from customers and franchisees. “We are very excited by the incredible response we have received to these new changes,” says Waugh. “Our franchisees just love it.” The franchise plans to double its footprint by the end of the year. “We just want to keep growing and so far this is all working out according to plan,” he says.n

LEADERSHIP

BUYOUT BOOSTS

OPPORTUNITIES

FOR FARM-TO-PLATE FRANCHISE This delivery franchise is set to hit the big time in the food sector as an acquisition brings it closer to top-end retail clients.

arra Valley Farms, the first independent national fruit and vegetable supplier and retailer in Australia, serves more than 400 commercial and hospitality clients, as well as some of Victoria’s leading restaurants.

Now the franchise distribution business will be ramping up its franchisee recruitment following a major acquisition. The business has been acquired by In2Food, a food supplier to South Africa-based multinational retail company Woolworths Holdings, which owns the David Jones department-store chain. Law firm Norton Rose Fulbright acted for In2food in the acquisition. Lead partner Ben Smits said the deal was a “game changer” for the Australian food market. “This sector of the market is very fragmented, and it will be interesting to see such an established and sophisticated player like In2Food work with such enhanced scale and with such a strong management team and strategy,” he says. In2Food has plans to expand its reach over the high-end produce market in Australia. The acquisition includes Inspired Food Solutions, which is a JV with In2Food and Yarra Valley Farms, formed to support the department store’s strategy to develop its food profile. The In2Food amalgam also includes a competitor to Yarra Valley Farms in Sydney, TMF, which provides core and prepared produce; and a similar, as yet unnamed, acquisition in Queensland. “This makes us the largest player in food service for core produce, prepared produce

and prepared food,” says Yarra Valley Farms MD Bill Kollatos, who will become CEO of In2food Australia. “Our key focus is to be robust in food service, and we intend to expand our retail food offer.”

SIGNIFICANT VALUE Franchising is an integral part of this expansion, says Kollatos. “In the acquisition, In2Food and the bank partners see significant value in the franchise model. This galvanises our strategy and puts more pressure on us to ramp up our franchise recruitment,” he says. “We’ve tweaked our franchise model and are very confident in it and how it works for franchisees. “Our logistics needs to expand considerably, and In2Food understands that the best way to get produce to a customer is through the franchise model.” To ease the financial challenge for incoming franchisees, Yarra Valley Farms plans to finance the $75,000 franchise fee over the term of a franchise agreement (five years, with one option to renew for a further five years). “We recognise that finance is always a challenge, so we’re backing this up,” says Kollatos. Of course, there will be costs on top of this: successful prospective franchisees will need to find the finance to lease the truck that is essential for daily deliveries, and the necessary working capital to ensure trading through the difficult early days. For existing and incoming franchisees, the newly combined business provides

specific benefits. The concept of dark kitchens (sites that create meals for online deliveries, housed separately from restaurants) is a new and growing reality, and rather than impinge on fresh-food deliveries will serve to boost the business, Kollatos says. “With health and safety issues when setting up dark kitchens, it is most cost effective to buy prepared produce. “The acquisition means we have greater competency in prepared produce and ready-made meals – and that space is growing,” he says. “We are very, very hospitality-dominated, and our customers are looking at reducing costs in the kitchen.” n

It will be interesting to see such an established and sophisticated player like In2Food work with such enhanced scale and with such a strong management team and strategy.

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Andrew Simmons

LEADERSHIP

EXERCISING THE

DREAM

A personal vision has driven Andrew Simmons’ business life, and today the Vision Personal Training franchise is shaping up nicely.

s a teenager, Andrew Simmons was always on the go, training most mornings and afternoons – swimming, athletics and water polo in summer; rugby in winter. “It is just what I did,” he says. School for him was about sport, yet his best subjects were maths and economics, which led him to a job in chartered accounting. “I hated it,” he says, “but I wanted a job so I kept with it and studied part time. It took me a couple of years to realise I wouldn’t be good at it. I realised it wasn’t the life I wanted.” In a turnaround that was abrupt but made perfect sense given his preferences, Simmons then studied for an exercise science degree. When he started out on his new career,

it was on a small scale as a personal trainer in a local gym in an old cinema complex. He was hungry to learn more though, and became the national trainer for the now renowned Les Mills program. “I fell in love with the idea of a straightforward, strong workout rather than complex aerobics, which was really a dance class of manoeuvres. What it taught me is the importance of systems and structures, and a choreographed program. “I realised I could teach trainers the same way the instructors taught the movements. I saw the success of this approach.”

MORE OF THE SAME Simmons had a chance to expand into the UK, but discovered it would have been

more of the same with personal trainers vying for the same clients, promoting one technique above another and inevitably leading to confusion, he says. “The lemon detox, the Atkins diet, the Hollywood diet… people were getting frustrated. There is a big opportunity to have systems appropriate to personal trainers like a gym, so I started to write programs.” Personal training was still a young concept when he started in the 1990s, but he found common ground with a friend and the two set up their own businesses after running a 12-week transformation challenge pitting their clients against each other. It did not take Simmons long to realise there was profit potential for professional, organised personal trainers in a sector

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where standards were often quite poor. “Our mission ever since has been to be professional and to service these people… Many clients are busy business people. We target the 40-plus market.” Typically clients are middle age, overweight and want to feel comfortable in a gym. “Millennials are very conscious of their health. Our market is not self-motivated, and that has its challenges, but these clients will pay to be motivated. There’s an inverse relationship to how motivated you are and payment – the more motivated you are, the less you will pay.”

HAPPENED IN STAGES Franchising the business model came about through necessity. It happened in stages: the fitness chain where his business was based went bust. Then the global chain Fitness First came in and took over the clubs, changing the model so personal trainers became employees. “I had no option so went out on my own,” says Simmons. “On the cover of an international magazine I saw a personal trainer in the US who had built 1000 sessions from three studios. That gave me the confidence to open our own studio in 2001.” The structured program he had created was providing good results for clients, and that helped. But Simmons knew from experience the challenge of working in a leisure-based sector. “I was working 200 days straight, and lecturing. Most personal trainers need to work around the work habits of their

clients, so when are you going to see your family? I have four kids.” He wanted to create a business with a profitable corporate identity that could run without the business owner. “We fell into franchising really. We knew we could benefit from systemising and replicating the system. I was presenting on marketing at a fitness convention and there was a talk about franchising, a US business that had 120 studios. I went to the Denver office to work out how it was done.”

There is a monotony to small business – you have to get back up and do the same stuff day after day. If you become bored, do more work on yourself, find a hobby or get out of the business.

MORE SIMPLE The answer was to make the model more simple, and in 2004 the business became a franchise. Now the model is what Simmons describes as “grow and go”. Grow the trainers, then they go and invest in a franchise. “This was the catalyst in the early days: just inspire the network and trainers who came to see us to one day have their own business.” His philosophy is based around the value of trickle-down leadership: why teach one client when you can teach a personal trainer to instruct a group of clients?; why teach one personal trainer when you can teach multiple trainers through a training manager?; and so on. Simmons recognises that while this business is his vision, it takes more than a great idea to see it through. That is also relevant to franchisees. “There is a monotony to small business – you have to get back up and do the same stuff day after day. If you become bored, do more work on yourself, find a hobby or get

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out of the business.” He keeps himself powered up and energised about the business with plenty of physical challenges. “I race triathlon at a high level. I swim, run, cycle.”

PLANNING AHEAD He also follows a friend’s advice: always plan for where you will be in 18 months, and resource now. So to expand the business as planned, more managers are needed to support franchisees, the training department is being extended, and the marketing team gains a fourth person. There will be a boost to the admin team as well. “We’ve invested our money into training, which is about four weeks for franchisees. We have online learning, continual support and training.”

LEADERSHIP

Of course, running a business is never a smooth, upward journey, he says. “It’s a Sigmoid curve. You take a dip before you reach the next level. It’s a natural part of the growth curve. “The challenge is to find real estate. We have people ready to go. People get their heart set on a location, and we want them to be the king or queen of their community.” It is essential to consider demographics and market share and ensure territories are not cannibalised, he says. The home base of Sydney now has 40 outlets, another 15 stores across the city are planned, and attention is now focused on Melbourne. There are also big opportunities in Queensland, in Western Australia, the ACT and South Australia, but without the right person taking on the franchise, Simmons maintains he is just not interested in expansion. “I’m really passionate about them being comfortable with where they are, and then they’ll be motivated.” The model can achieve a 30 per cent return on investment (ROI) with just 200

active clients, he says. “Year on year, some are making 100 per cent ROI. One guy even reached 300 per cent ROI. It comes down to the viability of the model.” There have been a couple of failures, he admits, including one franchise where there was unpaid workers’ compensation. “We’ve had to close two businesses for personal issues because the franchisees could no longer run the business properly. Franchisee circumstances change. People go in and out of different cycles of life. “I’m 46 and am seen as being an old bloke. The average age of franchisees and trainers is 27. “It’s about supporting people, I spend time talking with them. Our core values are leadership, spirit and growth. We need to become better leaders. Leadership applies to clients too. They influence their clients. It’s also about empowering parents to lead their children. “Ours is a high-level service. It’s a different proposition, it’s a premium service.” He looks back for inspiration to the US sitcom Cheers and its catchphrase: “We want small friendly studios where everyone knows your name.” n

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CLEANING UP How a hard-working mother put her energies into a Jim’s Cleaning franchise and built a multi million dollar business.

haron Connell was a stressed mother and a health-industry executive when she decided to take control of her life and buy a Jim’s Cleaning franchise in 2013. Within a few short years, she had catapulted to the number-one spot, turning over $2 million in sales and travelling the world. It all started when her stressful office job was impacting her life so much she would find herself in tears in the toilets at lunchtime, or dreading Sunday nights with the thought of the working week looming ahead. “I was at my wits’ end and decided to buy a franchise because, at 40 years old, I was too old to have a boss telling me what to do,” says Connell. After investigating several franchises, she decided on Jim’s Group because every point of the contract explained how the franchise would support her and give her the tools for success. Within five months she was doing so well she took over her local region in Wollongong, New South Wales, and became the master franchisee, building a base of 25 new franchisees within 18 months. From making a few hundred dollars a week, Connell had grown the business to rake in weekly sales of $4500. Just 18 months later she was able to sell it for $220,000. Connell then bought the Jim’s Cleaning master franchise for Tasmania and added South-West and North-West Sydney, Outer Western Sydney and all of New Zealand, giving her 120 franchises to oversee. When she sold this business at the end of the last financial year, it was bringing in more than $2.5 million.

GRAND AMBITIONS With all this success, Connell is committed to the Jim’s Group and now manages the dog-wash segment as divisional franchisor. She has grand ambitions: her plan for this year is to grow the 70-strong franchisee network across Australia and New Zealand while spearheading a launch into the UK. So how has she done all this? Connell believes anyone with a positive attitude can make a Jim’s franchise profitable. The marketing model and training provided gave her the confidence to take full responsibility and ownership of the franchise and run it as her own business. “It’s easy – asking for referrals, handing out business cards, doing the work, putting your branded van in areas in peak traffic times, letterbox drops – it all makes a difference and it’s free,” she says. Connell is keen to help out if other franchisees are underperforming. She recently coached one franchisee who wanted to boost the monthly turnover of $4000, and helped grow the business in less than a year to generate $40,000 a month.

FAMILY AFFAIR The business has become a family affair: 19-year-old daughter Erin has, with a little help from mum, bought a franchise and gone from a weekly turnover of $300 to $1000 within a month. And husband Benn has ditched the night shift in the local coalmine to join Sharon in managing the business. It has been satisfying for Sharon to see the system working as well for Erin as it did for her. “The places she can go to are limited only by her imagination, as the opportunities are endless for her. The things you can achieve by starting a business at an early age are huge.”

She says the Jim’s Group provides great opportunities for women seeking a change and for young people who do not fit the school or university model to gain a start in business. “I didn’t even finish school. I came from a dysfunctional family and it wasn’t possible,” says Connell. “I went back later, which cost me a truckload, and all it got me in my work life was a pay rise of 50 cents a week.” It has been a different story as a business owner. Connell has sold 130 franchises in 18 months, making her the most successful Jim’s Group franchisor. She attributes this to being positive, hardworking and sticking to the system. “Jim is a smart man, so why not use the systems he’s created?”

LIFESTYLE CHANGE While the increased income and confidence have had a big impact on Sharon, the most important change has been in the family’s lifestyle. Benn now has a part share in a light aircraft and Sharon needs not think twice about buying the latest pair of trainers for any one of their three daughters. She says that having the freedom to make decisions and work your own hours was also a major drawcard. “I remember what a nightmare the school holidays were, paying a fortune for babysitters, or the kids would be stuck inside while my husband was trying to sleep. My husband and I now enjoy the school holidays with the kids and I don’t stress about how to pay the household bills every month. I just don’t know how we lived that life before,” she says. “Buying a Jim’s franchise was the best thing I ever did as it gave me and my family freedom.” n

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Are you passionate about leading others? Do you want control of your future?

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FROM

TRADIE TRADER TO

What turned this successful sparky into a stock-market investor?

new concept has tempted one trades-based franchisee to try his hand at financial services in a global marketplace.

Electrician Josh Butler knows just what it takes to be a franchisee because he owns Laser Electrical Rowville. He is a practical man who has turned his technical skills to good use and built up a thriving business. But he is also a man with a mission to diversify his skills. And that is what appealed to him about a new opportunity with global company AGM Markets, which has introduced the First Index business to Australia. This bricks-and-mortar store allows people to learn about the stock market and trade shares, an area in which Butler has a personal interest. So, of course, he snapped up the chance to invest in the new business concept. “I’ve always had an interest in trading and growing businesses, and with First Index I am able to combine my two passions,” he says. “I have already grown my electrician business to a sustainable position that has allowed me to step back

and oversee it from a strategic level, giving me more time to focus on other things like trading.” First Index gives clients access to more than 3000 assets including shares, CFDs, Forex and cryptocurrency.

‘STRONG POTENTIAL’ Australian GM Cecilia Catanghal believes First Index will transform the trading industry and bring Australians a new way of buying, selling and investing. The industry has shifted online over the past three decades, and First Index plans to bring back customer service. The business is licensed to allow trades of overseas shares and cryptocurrencies such as Bitcoin. “We are bringing a great opportunity to Australians to run their own trading business in the suburbs, and there is strong potential for each franchise to turn over in excess of a million dollars annually,” she says. Butler is the first Australian franchisee, and will open the doors to his new

business in Ferntree Gully, Victoria, in February. He says First Index will provide customers with the chance to experience the platform first hand, while receiving guidance from licensed and experienced traders face-to-face. “The First Index platform provides the means for users to develop and test strategies before entering the market, which instills confidence and familiarity, something that is invaluable to those new to the stock market,” he says. First Index is putting individuals front and centre of the trading industry, something previously considered the domain of large financial companies. The brand started in Israel where it has three outlets. AGM Markets is looking to open up to 200 shops in Australian suburbs over the next three years. There are two more openings in the pipeline, but for now, Butler is leading the charge. n

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MODEL

BEHAVIOUR Retailers are showing their innovation smarts with a host of new business models that bring greater opportunities to both franchisees and customers.

hy stick with traditional outlets in an ever-changing world? Retail is constantly looking for new ways to bring in business at a better price, and there has never been a better time to introduce fresh ideas to a franchise network. Food brands in particular are striking out with concepts that take advantage of all the options available in the retail landscape, with the smaller-footprint store a firm favourite. And the extra good news is that costs are lower for the franchisee.

THE CHEESECAKE SHOP This dessert favourite has revealed a new compact kiosk bakery and has plans to open 30 more stores within the next four years. The 15sqm concept store launched at Marketplace Leichhardt in Sydney in December. A typical store in The Cheesecake Shop chain is 90sqm. The Cheesecake GM of franchise development Nick Avgerinos says a smaller store footprint means less rent, a reduction in fitout cost and less to spend on ongoing maintenance. “This new format will hopefully attract a new wave of franchisees who are chasing the dream of owning their own business.” The “think small” strategy continues with new products suitable for smaller families and the taste preferences of inner-city inhabitants where the new kiosks will be located.

Mini-cakes have been introduced by pastry chef Paul Leiron, with a Temptations range that includes treat-size cheesecake desserts and tarts. The cakes and the theatre of artisanal cake decorating are the heroes of the new kiosk, set off by a dark monochromatic palette. The new format kiosk will suit an owner/operater or an investor looking to own a franchise with minimal staff.

HOG’S EXPRESS Hog’s Australia’s Steakhouse launched its new-generation restaurant, Hog’s Express, in the heart of Brisbane’s CBD late last year, in the Myer Centre. CEO Ross Worth says the time was right to introduce a quick-service model that lets customers grab Hog’s favourites on the go. “We know that consumers are increasingly busy and looking for quick, accessible and inexpensive food options, so we’re incredibly excited about the future of this model and the versatility it affords us to pop up anywhere from shopping centres and petrol stations to airports and cinemas,” he says. The Hog’s Express model has attracted huge interest from potential franchisees, he says, so the new-style store could soon surpass the 28-year-old full-service Hog's Australia restaurant model. Worth is also expecting the brand’s 8 million annual customers to grow. “There are a massive number of

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opportunities in this space and we have a world-class offering, so the express model could easily overtake our restaurant portfolio in numbers,” he says. “We invested heavily in research and development to ensure we were delivering a premier product, from the store design and atmosphere to the menu, which incorporates both old favourites and new flavours, down to the technology we use.” The express menu signals a clear departure from the traditional restaurant fare with a burger range that includes Mac & Cheese, Pork Belly, Southern Chicken, Calamari & Whiting, Tex-Mex and Crispy Vegetarian. Hog’s Squad members will be rewarded with 15 per cent off burgers at all Express locations. Hog’s Express uses an iPad for customer ordering, and offers power and charging devices storewide for customers who dine in. GM Geoff Hargreaves, who has a wealth of Hog's brand experience including a while as national development manager and as a franchisee, is running the concept store. He will be responsible for driving the concept, along with experienced Hog’s franchisee and pioneer of the Hog’s Food Truck concept in Western Australia, Glenn Sell. Worth says there is a target of 10 Hog’s Express locations in the next 12 to 18 months.

LEADERSHIP

BUCKING BULL In its 18th year, the Bucking Bull chain has launched a casual-dining concept, offering a more extensive dine-in menu and a wide range of beers and wines. Food-court favourite Bucking Bull opened the doors to its first licensed eatery about a year ago. There are 30 traditional stores throughout Perth, Brisbane, the Gold Coast, Townsville, Melbourne and northern New South Wales. “This move just makes a lot of sense for Bucking Bull, and not just because the market is evolving,” says executive director Dean Vella. “When you think of traditional, slow-cooked food, you naturally think of enjoying this with family or friends in a relaxed, chilled environment. Our mission was to bring the Bucking Bull dining experience full circle with a real emphasis on sharing and socialising.” The new menu features handcrafted brioche burgers, sliders, signature rolls,

• • •

We invested heavily in research and development to ensure we were delivering a premier product, from the store design and atmosphere to the menu, which incorporates both old favourites and new flavours, down to the technology we use.

meals, shared plates and breakfast, and expands the meat offering. Perth’s Watertown restaurant showcasing the concept seats 80 guests and features rustic urban textures, natural lighting and a feature wall by Perth artist Daek Williams. “The encouraging reaction from customers is really important to us, especially as we look at the prospect of opening similar casual-dining restaurants in dining precincts around Australia,” says Vella.

GO SUSHI With Go Sushi partnering with Supa IGA stores, customers at selected supermarkets will find sushi chefs busy at work on rolls, lunches and dinner packs. “We’re essentially picking up the model, changing the displays to an open grab’n’go counter, putting kiosks into supermarkets,” says GM Kate McMahon. “You cap the rents at 10 per cent. We know it’s a financial model that gets the franchise off to a good start. Sushi is so

seasonal that a business model with rental caps is a massive benefit.” Neal and Peter Morgan, brothers and owners of Morgan’s IGA in Victoria, were looking for continued growth via a strong point of difference and enhancement of their fresh-food offer. Go Sushi was the answer. “To be honest I was a little nervous, but after months of planning and getting to know the team at Go Sushi we are more than impressed with their guidance, professionalism and expertise,” says Neal. “The layers of support incorporating all facets of working procedures, food safety, admin, fit-out, equipment, training, marketing, social media, innovation and ongoing auditing was way more than we expected, and we are delighted with the end result. “Sales are building every day, and we have received only good feedback from repeat customers.”

CASE STUDY: ROZZI’S ITALIAN CANTEEN Rozzi’s Italian Canteen is facing

common challenges for food franchises across Australia: a highly competitive market, a highly regulated labour market, and landlord willingness to over-represent food offers, forcing retailers to find ways to stand out from the crowd. “Factoring in these challenges, we have designed a business model with a flexibility to suit a variety of property needs within a shopping-centre environment,” says Rozzi’s Italian Cuisine founder Dean Salamone. “We have an express model for pick-and-go precincts such as food courts/halls with an emphasis on hot food.” The brand also has a cafe-style model suited to fresh-food and/ or fashion precincts where it can showcase salads, bread products such as foccacias, and rockets, the restaurant’s version of the traditional calzone. “Along with an a la carte breakfast menu, our cafe-style model also allows our design team to create interesting spaces for our customers,” says Salamone. n

‘We approached Nirvana since we wanted to join an innovative and reputable beauty salon brand. More than just joining a franchise, we became part of a family....Their support and ‘We approached Nirvana since we knowledge has been invaluable in wanted to join an innovative and our initial start-up and subsequent reputable beauty salon brand. More growth... I feel lucky to be part of such than just joining a franchise, we became a professional organisation.” part of a family....Their support and knowledge has been invaluable in - Stewart, East Sydney Franchisee our initial start-up and subsequent growth... I feel lucky to be part of such a professional organisation.” - Stewart, East Sydney Franchisee

ROZZIS FRESH KITCHEN TURNKEY FRANCHISE COST: $350,000-$650,000, depending on site size SIZE OF SITE: 60sqm plus LSA to 150 sqm plus LSA MINIMUM LEASING COST: $110,000 TYPICAL OPENING HOURS: Monday to Wednesday, 8am to 5.30pm; Thursdays and Fridays, 8am to 9pm; Saturdays and Sundays, 8am to 5pm NUMBER OF STAFF: Six to 20, depending on location size EQUIPMENT: As we prepare the bulk of our food on premises and serve daily, our equipment requirements can include, in the kitchen, a pizza oven, dough mixers/rollers, pizza prep bench, hot plates/cooktops, fryer, turbo fan oven, dishwasher, glass washer, super toaster and salamander; and in the restaurant, POS technology, coffee machines, sandwich presses and milkshake mixer. Many sites have a liquor licence, requiring council approval

LEADERSHIP

THE LOYALISTS Inside Franchise Business presents the second in a series showcasing franchisees. In this edition we celebrate long-term franchisees who have notched up 12, 16, 20 or even 30 years in their franchise.

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TODD AGIUS

FERGUSON PLARRE

15 YEARS

“

I haven’t grown tired of the business, I’ve not outgrown it. I’m not looking to move away from this – I could do this for the rest of my life.

hen Todd Agius joined the Ferguson Plarre Bakehouse chain he was young and knew nothing about the historic brand. He didn’t step into the business full time for 12 months. In fact, he wasn’t even a franchisee. “My wife started it up. At the time, it was leased through the company. We just paid an annual fee.” After a while, Agius and his wife negotiated a franchise agreement and threw themselves into the bakery business. He was was only 23, but had a wealth of hospitality and customerservice experience. “I didn’t know much about Ferguson Plarre, but I knew I could make it work with my communication skills.” The bakery was in a growing Melbourne area with young families and a good community feel, he says, and locals are more inclined to spend money with a familiar face, which helped get the business off the ground. “We were both full on. We had just one staff member help out over lunch time for four years. We were working weekdays, 60 to 65 hours, but we could alternate our shifts. Then we had a child and my wife stepped away from the business.” His ambitions to expand the business took shape when a shopping centre opened at Craigieburn. Then, he signed up to a second franchise outlet. “I was running both stores. It was difficult, juggling work and family, trying to be a father.” The original store was set back in the process. “I dedicated my time to the new store. It was a greenfield site, and I probably neglected the older store for a bit. “Occupany was projected to be 75 to 80 per cent but it was closer to 50 per cent at the time of the grand opening in 2013.” The original store was sold in 2015. Today’s challenges are longer trading hours and penalty rates. “I generally don’t work from 5pm on a Friday to 5am on a Monday, and some days I start at 5am and finish at midday; other times I’ll work until 6 or 7pm.” But the balance, he says, is not so bad “when you have your own business that’s open every day of the year except

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two days”. “I have full control of my business, of the payroll. I stay on top of it all, assess the numbers – I can summarise it fairly quickly.” This is quite different from the early days of trading. “When I started out I knew nothing about franchising, expenses, profit and loss or bookkeeping. But I was willing to learn. I had faith. “It’s all about getting the customer to come back, and when I had setbacks I believed I could turn it around into success.” No doubt his can-do attitude has been fundamental to his success. “I get to work early and have the first two hours to prepare by myself. I’m able to focus and channel all my energies into how to make it work and set a plan for the day. “Hospitality was my calling – I get it from my dad, he’s a real people person. That’s why the day goes quickly. It flies by, talking to customers, getting to know people. I don’t always want to do it, but when the money starts coming in...you think, let’s keep doing it, let’s grow the business.” As one of the longest-standing franchisees, Agius has found himself something of a sounding board for management. He is involved in a franchise development group that reviews products, and is often asked to share his perspective with prospective franchisees. “I’m fairly transparent and so is the business. Steve Plarre [franchisor] always encourages me to be honest about the business to new franchisees. “This is still a family business. There are 72 stores, but it still feels like a small family doing things better.” The franchisor’s support has developed over the years, he says, with improved communications, regular business-manager visits, and a tightened-up audit process to ensure consistency across the network. “I haven’t grown tired of the business, I’ve not outgrown it. I’m not looking to move away from this – I could do this for the rest of my life. “I consider myself a franchisee for life.” n

LEADERSHIP

CHRIS EDWARDS SNAP-ON

27 YEARS

fter 27 years in the mobile tool retail franchise Snap-on, Chris Edwards hasn’t looked back. “I was buying the product as an employee. I was in the trade and was excited by it. I’d always been interested in sales and was really attracted to selling a quality product. It was something I believed. It was just logical – I’d be working for myself and working in sales.” He and his wife took on the franchise together, relocating from Perth to Bunbury where Snap-on was not known. “Small business is always a challenge,” he says. “But I was young and had blind enthusiasm. A lot of people asked if I would go broke, but I never thought about it.” Quite the reverse in fact. Edwards has shown his business smarts; he’s a member of the Snap-on Million Dollar Club, a select group of franchisees bringing in turnover of more than $1m. Not bad for a mobile set-up! In almost 30 years, technology has had a major impact on the Snap-on world. While the day-to-day routine of visiting mechanics at their workplaces is still the method of doing business, Edwards says he has seen massive changes within the automotive industry, most significantly the introduction of multiple computers into single vehicles. Providing the right tools for a mechanic to do their job is essential, which is where Snap-on’s R&D is crucial to business success. “There’s no doubt the company is a world leader in diagnostics,” says Edwards. This makes it an attractive proposition to both franchisees and customers. It is not uncommon for him to be on the road servicing customers for up to 10 hours a day, then at the weekend he is washing and restocking the truck. “I work long days but I enjoy it,” he says. “We have a break of seven to 10 days mid-year and two weeks at Christmas because most of our businesses are closed then,” says Edwards. “When I started, if you had told me I would still be here in 27 years I wouldn’t

have believed you. After six months I thought I had saturated the market, that I couldn’t possibly sell any more product. I misled myself. “It keeps going. There are innovations, new products, new demands. As long as you can keep abreast, and keep up your service and enthusiasm, you can work a lot. “I think for anyone in business it’s about being self-sufficient and successful. If you really, really enjoy it, why retire?” Self-motivation has to play a significant role in continued success, particularly over nearly three decades. So what is different now in how Edwards stays focused? “You have to reinvent yourself and your enthusiasm for what you do. Back at the beginning there is the pressure to reach targets, to break even, so you stress.” Staying on top of the job is fundamental, and that means investing in the business as well. Tired, worn-out trucks do not present the right image to customers, so Edwards has invested in updating his trucks over the years. “Business is all about image,” he says. It helps if the franchisor is also investing in the brand’s development and presence. “In 27 years I have never seen another brand with a similar number of products

spread across an array of industries. No other manufacturer, supplier or equipment company comes near. “There is loyalty to the brand, and the company’s loyalty to the franchisee. We have a strong bond, company, dealer and customer. “I couldn’t walk away. If I did anything else it would be second best.” n

“

I couldn’t walk away. If I did anything else it would be second best.

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LEADERSHIP

MICHELLE AND CHRIS DODT

HOTONDO HOMES

20 YEARS

uilder Chris Dodt knew how to construct a home and to renovate a bathroom, but four years heading up his own firm taught him he did not know enough about running a business. With his wife Michelle working on the business as well, and trying to juggle a home life with young children, it was obvious the couple needed help ‒ and some systems. That is when the idea of a Hotondo Homes franchise seemed like the best idea. “We saw it as a window of opportunity to professionalise our business,” says Michelle. Managing a typical annual workload of two home builds, up to four bathroom renovations and small-scale construction, they also had subcontract work, but it was not enough. The business needed to offer something different. “We had no display homes, only plans, and it’s hard to sell a house that isn’t built,” says Michelle. Once they signed up to a Hotondo Homes franchise they learned a lot very quickly. “It felt as though we went to uni and got a degree,” she jokes. The business coaching was terrific, says Chris. “Learning how to sell a house was phenomenal. In the first six months, it was like switching on the light bulb. Training is so important, learning how to present and what not to say to people. If you can’t sell yourself, you can’t sell anything.” The couple attended their first annual group conference within the first eight months of being Hotondo Homes franchisees and were so motivated they phoned three people on the way home from the event and booked jobs. “We’ve done 21 of these conferences,” says Chris. “We haven’t missed one.” The initial goal with the business was to build five houses a year. It took 12 months to achieve that target. Then the business reached a stage where a big decision was

needed: should the couple grow more or be happy with the level of work and income they were bringing in? Chris and Michelle opted to move the business out of their home and in to an office in Gympie, which led to the addition of small display homes and, inevitably, employing staff. Recruitment and employment issues were areas where the couple lacked experience, and again the franchise proved invaluable for guidance. There were guidelines also for how to set up the office and present the display-home reception area to maintain brand uniformity. The business grew and grew. And so did the goals. “We set ourselves a goal, and every year we increase it,” says Michelle. “Now we are building up to 45 homes a year. We have sometimes thought we could be bigger, but we want to be close to our customers. Chris inspects every home and knows the clients.” Says Chris, “It’s like you marry the client for six months. If you don’t make the journey a personal experience, they won’t come back.” And clients do return for rebuilds, as well as recommend Chris and Michelle to family and friends. “Originally it was about the brand,” says Chris, “but I think repeat business is because the customer has had an awesome experience. They have to trust you, as this is the biggest financial commitment they will make.” Armed with the business know-how they previously lacked, it might have been tempting for the couple to step away from the franchise and go independent. “We’ve weighed up the options,” admits Michelle, “but we are very well established in our area, people have confidence in the brand, and Hotondo Homes has gone a long way to support us. “We’ve seen others who have gone

outside the brand, but without a network behind you everything falls on your shoulders. “There is no way an independent business can manage or afford to produce a website like we have now; the backend technology is mind boggling. We don’t fully understand the cost to set up and maintain something like this. There are lots of things you forget you have given you as a franchisee,” she says. “The marketing is great, the training is great, and it’s all part of our fees. People sometimes forget that,” says Chris. The couple is ready to sign up next year for a further term. “We are very successful in our own right, but we’ve had the support and encouragement of the franchisor.” For Chris it has been “a helluva ride”. He says Hotondo Homes keeps lifting the bar. “I was always a good builder but never a businessman. My filing system was the glove box of the ute. “I now have business acumen I didn’t have 20 years ago. If I’d been asked to do this interview back then, I’d have run for the hills. This has made us grow into business people.” n

“

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It’s like you marry the client for six months. If you don’t make the journey a personal experience, they won’t come back.

LEADERSHIP

TONIA AND LUIGI SCIARRONE, ANGELA IANNOTTI LA PORCHETTA

20 YEARS

hen Tonia and Luigi Scarrione took on the La Porchetta franchise at Frankston in Melbourne in 1999, it was a complete role reversal of how the husband and wife had run their previous business. In the 1990s, the couple owned and ran a mechanics workshop, with Luigi hands-on fixing diesel trucks while Tonia handled payroll and bookkeeping in the background. That all changed when Luigi was injured at work. Suddenly their business was no longer a long-term option and they were forced to find an alternative income source with Tonia taking on the heavy lifting. Perhaps it is no surprise they ended up at La Porchetta. Tonia’s sister-in-law was a franchisee of the Lilydale franchise, and Tonia and Luigi’s daughter Angela was at the time working part-time at another outlet while at university. What may be surprising, however, is that despite Tonia’s instincts, and her rejection of the Frankston site as “old, dirty and run down” (she much preferred the smaller,

“

When things are good you get tired but so happy things are still going well, and people are coming back.

new outlet at Sunshine), the couple signed up to the underperforming restaurant and have been there ever since. They have notched up 19 years, although mother and daughter point out that at 72 years old Luigi is now semiretired. He is the fixer, the maintenance man who has saved them thousands of dollars over the years by tackling the handyman jobs. And now he gets to enjoy eating out with his mates at his own restaurant every Friday night. So why did Tonia give in and end up at the store she rejected? “My accountant knew the previous owners’ accountant and told me ‘all you can do is go up’.” With Tonia heading up the business on her own for nine months, hands on and with a ferocious work ethic, the business did improve, but she admits the early days were hard. “We promoted the business, we advertised that there were new owners, but it didn’t help. The place was so badly run down, it had a bad reputation. It took 12 months to get people coming in through word of mouth.” Within that time the couple had eventually sold the workshop, and Luigi came on board in a part-time role. Tonia had been working from 10am until midnight, seven days a week. “When you invest your money, you work so hard for it, you have to manage it and make sure everything is going right. You pay your bills first, then you have what money is left. “My goal was to get it running and stay there until it is time to retire. I didn’t want to sell.” Many of their customers feel the same – they don’t want the Scarriones to leave. Some loyal customers are regulars, eating out or grabbing takeaway from La Porchetta three times a week. The restaurant has become a real family affair. Angela gave up her social work and joined the more flexible hospitality business when she became a mother herself. “I came into the restaurant to work with Mum, and we’re able to help each other.” That was 16 years ago.

Angela has the front-of-house responsibilities. “I’ve learned all areas of the business, though,” she says. This means she can step up if a temperamental chef walks out or the pizza maker is sick. Tonia returned to her main skillset, bookkeeping, stock control and payroll. That has been invaluable with a team of 13 permanent part-timers on the books. “I don’t employ casuals, I like to keep my staff. A few are due for long service leave.” Tonia has done payroll from the age of 17, working out wages manually for 150 factory workers, so she doesn’t sweat over today’s industrial relations landscape. “We are on a workplace agreement until I sell the business, then it will move to awards,” she says. “It’s your business, so you do the right thing.” They say they were always happy with support levels from the franchisor, and improvements over the past five years have included regular visits from their businessdevelopment manager. “I’m loyal to them because if I need anything, within an hour I get a reply.” The head office can offer reassurance about performance and comes up with ideas to boost business. There is also a mystery shopper whose feedback helps build a store rating. Feedback is given to the network overall about areas that can be improved. Despite trading in the one spot for so many years, Tonia is talking to La Porchetta about selling up and moving to a site closer to home and her daughter. “Angela can run it and I’d be behind the scenes.” For now, the Frankston outlet has been renovated and this has given Tonia a new lease of life. “I’m not ready to retire. I’m 65, but it gives me something to do. We take it year by year, and we’ve just renewed for 10 years. “When things are good you get tired but so happy things are still going well, and people are coming back. “We have our ups and downs. We’re comfortable, I’m not a millionaire but the bills are being paid. We’re still working. We enjoy it.” n

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1800 245 447 or poolwerx.com.au/franchising

LEADERSHIP

SANDRA GREEN BEDSHED

16 YEARS

“

It’s about going back to the basics – checking the stock and pricing. It’s part of being a good business person.

andra Green says she has loved every minute of being a franchisee. “Of course I could have bought my own store, but the benefits of franchising far outweigh the downsides,” she says. “It’s a no brainer.” Green joined a bedding company straight from school and worked there for 10 years. Then she bought a franchise and ran that for a few years before finding what she wanted in a business at Bedshed. Within three days of visiting the franchisor, she was committed. “I checked out the business ethics, how they ran the company, and looked at stores in Western Australia. I opened the first two stores in Victoria.” She says the business gave her brand recognition and the chance to get in on ground level in a new region. The franchisor’s support, in particular initial training and buying power, was crucial, she says. Franchisees get to see new products, and to contribute to purchasing decisions on a 14-day buying trip overseas. “I couldn’t do this if I was on my own. I believe we have the best business template. The model is very strong – we can get immediate delivery on 80 per cent of goods from our main factory.” The franchisor takes a hands-on role, she says, and franchisees connect with each other through an intranet. Retailing is tough, but believing in your system makes a difference. Optimism

is important, backed up by sheer hard work. If daily figures disappoint, then Green takes a longer, weekly view; if the turnover doesn’t meet expectations, then she adopts a monthly, and then a quarterly view. “It’s about going back to the basics – checking the stock and pricing. It’s part of being a good business person.” Green has a business partner who runs a second outlet at Hoppers Crossing. Both stores are doing well, thanks to good locations and staff. She puts her faith in her staff, and so does not need to be there for the seven days of trading. “I can work from home now regularly. If I have an admin day, I’m at home and power through the work. It’s a good balance for me. I have a daughter at high school. I like the flexibility, the choices. I’ve been overseas a couple of times a year.” Green’s original goal was to run the most successful bedding store, to prove she could get into a hotspot like Highpoint and achieve the sales. Last year her business was named the brand's Franchise of the Year. “I’m really passionate about the industry. I might have another 10 years here – my kids are learning the business now.” A third store may be added to her business portfolio. “I love to work, I love to do what I do.” n

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LEADERSHIP

DANNY SINKOVIC CLARK RUBBER

12 YEARS

“

Our mindset was, it’s this or nothing. We had to make it work. We didn’t have a back-up plan.

anny Sinkovic and his parents were newbies in the business world. He had notched up a couple of years in real estate, but embracing the challenges of business ownership was a totally new experience. The family had been customers of Clark Rubber for 10 years, and loved the idiosyncratic mix of products: mattresses, pool equipment, rubber items. “It’s rare to find something that has such a broad product range, and we could always find what we needed there.” So armed with an appreciation of Clark Rubber’s niche market and its special position in retail, the Sinkovic family invested in a franchise. “Mum and Dad put their house on the line and we got a loan,” says Danny. They could not find an existing business of the right size, and were happy to start with a new store. But with hindsight, he wonders if buying a greenfield site was the best option. “It was not far from another store, the one we’re in now, and it was a challenge to build up customers.” To make it work, the family worked every day for four years. “Our mindset was, it’s this or nothing. We had to make it work. We didn’t have a back-up plan.” Clark Rubber’s head office was always supportive, he says, and the store was

meeting its financial targets. Then the GFC hit. The family rode out the tough times, pitching in again when it had to let a staff member go, and now has four permanent staffers and a part-timer. The senior Sinkovics have taken a step back and work on a casual basis for the business. In time, the first store was sold, and they snapped up the neighbouring outlet. That really boosted the business, says Danny. In the franchise network for more than a decade, and just renewed for a further term, he reflects on how longevity has helped the relationship with the franchisor, and given them a better shot at achieving a good return on investment. “I could do this on my own, but then you think, what does this mean? I would need a marketing guru, I’d have to find product suppliers and build up a product mix that’s right for our store. I’m already time poor with young kids,” he says. “I can call in casual staff if I need to, it’s all getting easier. I have a good life.” For the future, Danny sees the business as a springboard for further investments, perhaps into property, that will maximise his profits. “I’m always looking for the next challenge. I have goals and dreams that keep me going.” n

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MICHELLE AND TONY GRAHAM POOLWERX

15 YEARS

f you want to find out what it is like to run any one of the Poolwerx four tier franchise models, there is no-one better to ask than husband-and-wife franchisees Tony and Michelle Graham. At one point they had seven territories, about a quarter of the Brisbane network. They have opened greenfield stores, run shops and warehouses, had multiple territories and stores, and it all started with just one van. “In the early days things just came along, and we just grabbed the opportunities. I think we were first with the second, third, fourth store and fourth store plus warehouse,” says Michelle. The couple had a corporate background, and before signing up to an existing business with Poolwerx had investigated different industries; they were attracted to the potential in the pool cleaning and maintenance sector. “It had only just started here and we’ve ridden the wave. We’ve essentially grown up with it.” The franchise offers two significant elements: stability and brand recognition, and a level of support. “It’s like we’re with mum and dad, and we’re the kids. You have somewhere to go for help, a whole community to help you,” says Michelle. Moving from the well-paid employment environment into business ownership did present some big challenges, not least the salary. “Income was a challenge. We went from hero to zero,” says Michelle. Good socio-economic demographics are key to the business success. When the couple started out, it was just wealthier Queenslanders who were happy to pay for their services. Today, a well-paid, busy population benefiting from low mortgage rates can afford to outsource the pool cleaning. “This is a seasonal business, so in

summer it’s all hands on-deck. The other day I was working with my son in the shop and there was a chlorine spill. I’m the owner, but I‘m mopping it up. I will never ask staff to do something I won’t do. “We have a healthy respect for each other. We entrust our business to them, and they care about it as if it were their own. The flexibility allows me to do the after-school run. I pick up the kids and can take them to any sport or after-school activity.” Taking time out may cost the couple profits, but achieving a balance of profits and quality of life drives them. “We came in to this to get financial freedom and have quality of life,” says Michelle. “One of our big goals was every two years to have a big trip with the family. We’ve done five different overseas trips for three to four weeks in winter. “I have a lovely home and a holiday unit. I’m in my late 40s, Tony is in his early 50s, what do we do? Hang on, get really profitable then sell. We’ve been able to maintain double-digit growth over the past few years, so we’re quite successful.” That is not to say there have not been times where the pair felt stuck in a rut. “We looked at other opportunities because it felt like groundhog day. We were flat, a bit bored. But it was hard to find another business that offered similar profits and time off.” Weekend work is still part of the job, particularly in summer, but in winter they may need to be there for just a couple of hours each day. Looking elsewhere put their business gains in perspective and gave them back some motivation. Since then they have been among the top 10 Poolwerx franchises for turnover. The business model structure is excellent, says Michelle.

Poolwerx continuties to grow and has a state of the art training centre, which benefits franchisees and their staff. Michelle is the Queesland representative for Poolwerx advisory and regional councils, and the pair mentor other franchisees and present at discovery days for potential franchisees. “I’m submitting an application for Franchise Woman of the Year this year,” Michelle reveals. “It all means you grow yourself as a person, it’s really powerful.” n

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“

It’s like we’re with mum and dad, and we’re the kids. You have somewhere to go for help, a whole community to help you.

LEADERSHIP

MARK PROSSER KWIK KOPY

16 YEARS

ight weeks holiday, early morning golf on a Wednesday...life sounds pretty good for Kwik Kopy franchisee Mark Prosser. But it’s taken him years to get to the point where he can step away from the business and leave the team in charge. Formerly in personnel for 20 years Prosser opened up the doors to his franchise in 2001 after admiring the weekly routine of the local Kwik Kopy owner with whom he regularly lunched. “He seemed to have a good lifestyle so I looked into the business,” says Prosser. Once he’d done his due diligence and signed up to the franchise, he found making a profit in the business was more difficult than he had expected. “If you want a challenge, give yourself a challenge,” he laughs. Three months into the business he realised why the legal and financial advisors had cautioned him about his purchase. “I bought a run down business and paid too much for it,” he admits. “It took a couple of years for us to really hit our straps.” When he took over the business it was ranked at number 80 in a listing of the 105 outlets in the national network; he’s made the top 25 for several years recently, and in 2015 scooped the franchise’s top award, Franchisee of the Year. “The last 10 years have been really great. I’ve gained a full understanding of the

“

A few franchisees will blame others if the business isn’t working, but you have to put in the hard work and find opportunities.

business. Beforehand I had a good team but I didn’t know a lot about printing. “A few franchisees will blame others if the business isn’t working, but you have to put in the hard work and find opportunities.” The business is a 9-5, Monday to Friday operation, although in the early days Prosser was working seven days a week to get work done. Good clients stuck by Prosser as he turned around the business, and he’s made a point of expanding the income by maximising business with each client and getting referrals. “It’s not about being a salesperson, you have to be able to talk to people, to help them out, understand what they need and find a solution. I want them to say ‘Kwik Kopy can look after this for me’. “Always say yes and work out how you will do it afterwards,” he says. When Prosser started out in print, a Xerox machine took pride of place in the business. That’s long gone, replaced by a fancy digital printer that can turn out 90 copies of printed card a minute, and produces 30 per cent of the outlet’s income. “You have to spend money on equipment. I want my staff to have good equipment, and they will produce good work.”

Prosser’s initial goals were to make money, specifically to turn the $300,000 turnover into $1m, and to win the top Kwik Kopy award. He’s ticked all those boxes. “We have a benchmark of all the stores and we can compare ourselves to other businesses, and see what opportunities there are for us to do better.” Today the focus is getting the sales and margins right and he’s on track. Innovations at Kwik Kopy have made life much easier, and he says, refreshed him. The development of the proprietorial product Print Speak, an online real time monitoring system available on a PC and as an App, means he can stay in control of the business, no matter where he is. “It’s fantastic, we love it. It handles invoices, reporting, monthly targets, quotations… I can be anywhere.” That’s handy, given his travelling habits. “We are going to the US and Canada in June for five weeks. I like caravanning too.” In fact the caravan is set up with a mini office including printer and router. “I’ve loved the journey, but you have to keep working through the downtimes. That’s the nature of business. “Now I’ve got the right work balance. I’m 68, and I signed up for another term. I don’t how long I’ll keep going, I’ll work while I enjoy it.” n

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LEADERSHIP

BRAD PEATLING BAKERS DELIGHT

30 YEARS

t’s a national brand with almost 600 outlets across the country but there was a time when Bakers Delight was a single-store neighbourhood baker. And Brad Peatling remembers those days. Once an apprentice working with brand founders Roger and Lesley Gillespie at the original store in Melbourne’s Hawthorn, he has been with the company for 34 years, and for more than two decades has been a franchisee. “I started in September 1984. I’m 49 and I’ve been there since I was 16.” The Gillespies were heavily involved in running their two outlets - they are still on hand and visiting stores despite stepping back from the business last year to allow daughter Elise and son-in-law David Christie to take the reins. So what was it like working with the founders? “You knew where you stood,” says Peatling. “They’ve always had direction. They love bread; no pies, no cakes, just bread. They’re really passionate about it.” By the time Peatling had worked through three and a half years of 2am starts at the Hawthorn store, Bakers Delight had become a 18-strong chain of bakeries with grand plans for expansion. When the Gillespies went to the US to open bakeries in San Francisco he was given responsibility for the staffing of the bakers across the chain. “I had to make sure there was a baker at each store at 2am in the morning,” he says. Over the years of running the bakeries Peatling has drawn on one of skills learned managing the 18 corporate stores. “What that taught me was people management. One of my biggest strengths now is people. I can turnaround negativity. I like to see people succeed.” He’s a regular mentor for incoming franchisees, and has just helped, an IT specialist in his mid 50s who has taken on a Bakers Delight franchise and is about to

open up the doors to his own business. “It’s full on manual work, it’s full on customer service. To see this guy with no experience come in, he doesn’t understand business and he’s changed his whole life around. He’s nervous but what a champion!” When the Gillespies returned from the US and embraced the franchise model, Peatling leased the original Bakers Delight store in Hawthorn then took on two stores in Ringwood, leasing them until he had the money to buy them outright. The next big step in his life was marrying Joanne, a top student of dental nursing who scored a spot at the best training school. The only problem was the location: Adelaide. When Peatling told the Gillespies he would take a couple of years out so Joanne could take up this opportunity, they had a solution: open a store there. He opened the first store at Tea Tree Plaza, then his brother opened another at Glenelg. It wasn’t long before Peatling had a second outlet in the local shopping centre. After a while the couple decided to move closer to family and added two stores in the state border towns of Albury Wodonga to their portfolio. Having four stores such a distance apart eventually became too much and the South Australian outlets were sold. With three children in tow, a move still closer to Melbourne was predictable, and the couple sold the Albury Wodonga businesses, snapping up a run down bakery in Northland. Their model of expansion has been based on buying up existing bakeries and rebranding to Bakers Delight - sometimes relocating to get the best site. Buying and selling Northland, and then Bulleen, brought them to the Eltham location where they still are today, 13 years on. Just the one store now suits the family.

What that taught me was people management. One of my biggest strengths now is people. I can turnaround negativity. I like to see people succeed.

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Peatling had a serious accident and spent two and a half years in rehab. It was at this time of extreme need that he fully realised the value of the franchisee network. “That’s the strength of the franchise, I had friends who I had made over the years who for 18 months to two years through this journey stepped up and ran my business. The strength of this network is the camaraderie. “We know a lot of people here and our best friends are in Bakers Delight. We’re all the same, we go out together, we go away together. “You buy into the name and the marketing, but in the end it’s your business. “We’re a very community minded business, we support about a dozen local clubs. We get invited to functions and fundraise ourselves.” In alliance with other local business organisations, the Eltham Bakers Delight helped raise $20,000 over a three week

period for the Breast Cancer Network, the official charity of the bakery network. “It’s good for our business and people feel loyal when they can see you are giving back to the community. All of us in the network give our leftover bread to charities,” he says. Of the 15,000 plus team in the chain Peatling is the longest serving, though he has two other long standing franchisees whom he regularly contacts for advice and a chat. When he started out there was no Saturday afternoon or Sunday trading, no late nights. In addition to extended hours there are increased costs. The baking technology has improved, new recipes found by franchisees are tested and added to the menu, there’s now a proper marketing team and a property and leasing division. “All this takes the pressure off us so we don’t have to worry about anything other

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than running our business.” Even today that is a six-day a week job for both Brad and Joanne. But they love it. Joanne is always on the frontline, serving customers, and knows everyone and what’s going on in their lives, says Brad. “It’s a really personal touch. As franchisees we put a lot of money into the business but it’s our responsibility, we’ve got to then get in and have a red-hot go.” Leading from the front has always been Peatling’s way. “I’m the extra in the business. I’ll sweep floors, wash dishes. It’s a cliche, but you can’t ask someone else to do a job you won’t do. That’s how you get respect.” He is not keen on 2am starts anymore but can still be found at the bread ovens at 6am some mornings. “There’s nothing better than a nice roll, nicely mixed, fresh out of the oven. Our customers pay good money, we want to give them a good product.” n

EXPO

EXPLORING

OPPORTUNITIES It could well pay you to visit a dedicated franchising expo to see just what investing in your own business entails.

ranchising in Australia has evolved into a dynamic small-business sector with an estimated annual turnover exceeding $170 billion, and it is one of the most popular and profitable ways to start or grow a small business.

Buying a franchise gives inexperienced individuals, couples or partnerships a route to business ownership. Itâ&#x20AC;&#x2122;s a nationwide phenomenon, but New South Wales accounts for the largest share of franchise enterprises at 27 per cent. There is no better place to see an

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Fifo Capital – the sophisticated Business model for Entrepreneurs and Business leaders It’s still not too late to get a slice of this outstanding $64 billion invoice finance industry. While some markets are now closed out we have opportunities in several major metropolitan and region centres.

In the recently published Australian Top Franchise awards, Fifo Capital was rated in the Top 5 Franchises for the Lifestyle category, as voted by our Franchisees. The network’s performance has been amazing in 2017. Turnover for the year was over $260 million, bringing our total lend to well over $1 billion! We have only scratched the surface of this huge industry and we are now ready to take the business to the next level. With potential returns in-excess of 50% annualised per annum, highly secured assets and very low overheads, there is simply no business model that can compare. The key driver behind our success is undoubtedly the people. Our Business Partners provide a highly valued service to the SME community and received a Net Promoter Score (NPS) of +63% from their clients for 2017. To make your journey easier, we now have an Investor program running providing capital. You can use your own capital or our Investor capital and lend funds using our proven systems and processes. Would you prefer just to be an investor? We want to talk to you also!

“The decision to join the Fifo franchise has delivered beyond my wildest dreams, I hit the $1 million mark in finance written for my first year!” Mark Edwards – Fifo Franchisee

Find out more about this opportunity Andrew Roberts 1300 852 556 I 0438 801 575 www.fifocapital.com.au

EXPO

array of brands seeking franchisees than an expo, and that is just what the Sydney Franchising & Business Opportunities Expo provides: the chance to discover new and existing franchise systems showcasing their business models. The first event opens at ICC Sydney at Darling Harbour on 17 and 18 March. Exhibition manager Fiona Stacey says it will showcase a huge range of business ideas. “We are looking forward to welcoming lots of new exhibitors as well as regular attendees such as Appliance Tagging Services, Chem-Dry, Clark Rubber, Gutter-Vac, James Home Services, Jim’s Group, Poolwerx and United Franchise Group. “I’m especially looking forward to hearing from our keynote presenters, Jim Penman from Jim’s Group and John O’Brien from Poolwerx. Together they represent thousands of franchisees who have discovered the freedom of working for themselves.” Stacey says the Franchise Council of Australia will also run panel sessions hosted by Sarah Stowe editor of Inside Franchise Business, with franchisees

sharing their stories and taking questions from the floor. “The seminars and free panel sessions are always a highlight. “But, of course, the main game is on the show floor, with exhibitors from a wide range of industries all ready to encourage and inform visitors about their franchise, business opportunity or service.” A delegation from Taiwan will be exhibiting the latest business ideas out of Asia, while other international businesses at the expo will include Action Coach, Cafe Cafe Global, Dippin’ Dots Ice Cream, Experimac, Fully Promoted, Jon Smith Subs, Mailboxes Etc, Minuteman Press International, NHance, Papa John’s Pizza, Rodan & Fields, Signarama and Venture X. Australian franchise services and business opportunities exhibiting for the first time include Bodystreet, D-Sign Interiors, Digital Presence, Nathan’s Famous and My Ride. Stacey says Inside Franchise Business readers may gain free entry by using the code FMG when registering online before the expo. n

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Key details Don’t miss the franchising weekend - the expo is on for just two days. Saturday March 17, 10am to 5pm Sunday March 18, 10am to 5pm International Convention Centre Sydney Get your FREE tickets online: visit www.franchisingexpo.com.au and use the code FMG

INDUSTRY SPOTLIGHT

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TAKE A BITE

INTO THE

FRANCHISE

BURGER WORLD Tuck into a juicy burger business with a big personality on the side and individuality on the menu. By Gali Blacher

hile the healthy eating trend is not new, it is a constant presence in today’s food industry. Greasy burgers may still a guilty pleasure, but consumers want options – and many of them. Burger joints now need to offer bread options, a range of non-bread options (such as lettuce wraps) and both premium and fatty meats. But this has not impacted the industry in a bad way, with an IBISWorld report last year saying increased demand for gourmet burgers is expected to drive industry revenue growth. Consumers are still busy so the demand continues for fast-food options despite the popularity of healthy food and premium meats. This means there is plenty of opportunity in the franchise space for such offerings as gourmet burgers, fast-food burgers and “healthy” burger chains.

IBISWorld says that in the next five years, fast-food restaurants are projected to focus on ambience and experience as a means of attracting customers. Burger shops are also likely to spend more on their image to capture a greater share of the convenience-food market. The research company also says consumers love burgers because they are convenient, adaptable and relatively inexpensive – they almost sell themselves. For an inside glimpse into this diverse and exciting space, Inside Franchise Business speaks to burger franchise owners such as Burger Love, Carl’s Jr, Milky Lane and Hello Harry.

MILKY LANE Milky Lane’s original restaurant came about in 2016 with its first location at Bondi

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INDUSTRY SPOTLIGHT

Beach. The bustling burger chain now has three stores (adding Sydney suburbs Cronulla and Parramatta) but has big plans to franchise across Australia. The team behind the restaurant was not sure at first if franchising was the way to go to reach its national expansion plans. However, with at least one email a day requesting a franchising opportunity, Milky Lane saw franchising as the best way to expand and still have invested business owners at the helm. “We’re aiming to open a limited number of Milky Lane restaurants throughout Australia in 2018 in order to ensure the success and support for each of these initial franchisees,” says Pete Haselhurst, managing director. “We are also looking to develop an express model, which we will then offer alongside the full restaurant as we continue our expansion, and we already have strong interest to take Milky Lane to a number of select destinations globally in 2019. “[The restaurant in] Bondi has shown that customers will travel from all over Sydney, if not New South Wales and even further. We want to share the Milky Lane experience with as wide an audience as possible, while at the same time making sure that each restaurant remains a destination in itself without becoming too commonplace.” Haselhurst says he is looking to grow a network of enthusiastic, like-minded franchisees. The Cronulla outlet has surpassed expectations, says Haselhurst. “It’s a great feeling to see the investment we’ve made in our training and systems shown to be replicable, scalable, and most importantly, an overwhelming

Burger Love success,” he says. Milky Lane’s four partners are an entrepreneur, marketing guru and two top chefs who worked with celebrities. With top chefs at the helm it’s no surprise that customers line up at the door. “Our culinary skills and attention to detail when cooking a burger is secondto-none, and undoubtedly why people return week after week for the same mouth-watering taste and memorable experience,” says Haselhurst. The business prides itself on amazing customer experience, great food, cocktails and desserts, as well as music and street art, and strong social media engagement all that keeps “us one step ahead of our competitors”. The brand’s ultimate objective is to ensure every franchisee in the network is successful. The business has sold five new territories and has more than 65 applications in review. It is set to launch its national franchise campaign in March, 2018. “Our model is designed specifically to be boutique and because of this strategy,

we will only have a limited number of territories available,” says Haselhurst. The target is to open 10 stores by the end of 2018. BURGER BITE • Initial franchise fee: $50,000 plus GST • Ongoing franchise fee: 6.5% of gross sales plus GST • Marketing levy is 2% of gross sales plus GST, with the franchisee required to spend at least 1% of gross sales on the own local area marketing each quarter. • Investment: varies from $250,000 to $640,000 plus GST. • Franchise term: 5 years

BURGER LOVE Burger Love is taking its own spin on franchising with a “branchising” model. This is not 100 per cent a franchise and is also not independent. It is somewhere in between. “We actively take a stake in the businesses and have a franchise system

FAST FOOD BURGER SHOPS:

INDUSTRY AT A GLANCE SNAPSHOT Revenue: $7.0bn Profit: $539.2m Annual growth 13-18: 2.7%

Wages: $1.3bn Annual growth 18-23: 0.8% Businesses: 5,910

MARKET SHARE

McDonald’s Australia Holdings Pty Limited 56.5% Competitive Foods Australia Pty Ltd 19.9% Grill’d Pty Ltd 4.6% Source: IBISWorld

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Bev

“I love that for a relatively small investment I can build a strong business from day one. InXpress gives me a strong return on investment and the freedom and flexibility to live the lifestyle I enjoy”

Taylor

2AR0D 1WIN7NER

Winner 2017 Single Unit Franchise of the Year – Less than Two Staff

Jason Hand

InXpress Franchisee

“InXpress is a global business model which allows me to grow a great business, and provide my customers with real savings and service. However one of the best parts is that as a business owner I am able to manage my day to spend valuable time with my family and build a future for my children” InXpress Franchisee

UNLOCK YOUR POTENTIAL WITH THE INXPRESS FRANCHISE FORGET THE DAILY 9-5 GRIND AND BUILD YOUR BUSINESS WITH INXPRESS LIMITED OPPORTUNITY! Now you can join one of Australia’s fastest growing franchise businesses and capitalise on one of the fastest growing industries - freight and logistics. Opportunities are now available across Australia to build your InXpress business. If you are career minded and dedicated to building a successful business in your local market now is the time to join InXpress. Get the lifestyle you have always wanted with a proven business model, full training, mentoring and support. InXpress is a unique global online shipping company, with a fully integrated web based customer shipping system offering a huge opportunity to grow a thriving business, with minimal risk and a relatively low investment. Operating in 14 countries with over 360 franchisees globally, InXpress is now accepting applications to grow the Australian business. An InXpress Franchise offers you state of the art training, world class support and all of the tools you require to successfully tap into this massive global market.

BENEFITS INCLUDE: Low entry costs Low risk No inventory, warehousing, vans or trucks No employee base High residual income Unlimited income potential For more information on joining the InXpress Franchising Team Call David on 1800 220 643

GLOBAL REACH WITH A PERSONAL TOUCH 1800 220 643 | sales.au@inxpress.com | inxpress.com.au

INDUSTRY SPOTLIGHT

Hello Harry

Milky Lane but not the traditional franchise model, which is very restrictive,” says co-founder and marketing director Steve Agi. He says some of the licensees come from other fast-food franchises but were tired of the traditional franchise system. “The model is a lot more interactive because obviously there are challenges, but we face them together and licensees find it a lot more reassuring.” The founder says that with a great brand, a thorough training process and solid systems in place, potential licensees are knocking at the door. The chain was founded in South Melbourne in 2001 with

a wide-ranging offering including chicken, cheeseburgers and southern-style comfort food. After deciding to just focus on burgers, the chain has had three store openings in the past two years with another three set to open in the first half of this year. Also on the drawing board is a food truck. Meanwhile, with its passion for all things innovative, the chain will become the first fast-food restaurant in Australia to accept the digital currency XEM. “Cryptocurrencies are the future of trade. It is a fascinating concept that our

clientele is already on board with, and we’re ready to stop watching from the sidelines,” says Agi. “We’re giving our customers the freedom to pay with a currency of their choice, which is indicative of how we like to approach the customer experience at Burger Love.” Founded by Bill Gates and Leonardo Dicaprio, the vegan company Beyond Meat has chosen Burger Love to launch its product in Australia in late February. The burgers at Burger Love are artisan style, allowing customers the flexibility to choose their burger

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Shift to Combining Loyalty and Online Ordering

It’s no secret that loyalty programs are effective marketing tools. They increase sales, help retain customers, and improve your brand’s reputation. Combine a loyalty system with online ordering and you really maximise your sales potential. Most people in Australia have placed a restaurant takeaway or delivery order online. Consumers are inclined to order online because, more than ever before, they value convenience. That’s why some of Australia’s leading cafés, restaurants, and QSR’s use Redcat Polygon for their POS Management needs including sophisticated online ordering and loyalty solutions.

Redcat Polygon Online Ordering and Loyalty Features • no double keying • orders go straight to the kitchen • manage in-venue orders and online orders in the same place - integrated reporting - integrated to the Redcat Loyalty and gift card solution • customised websites and smartphone Apps

1300 4 REDCAT hello@redcat.com.au www.redcat.com.au

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PB10424

INDUSTRY SPOTLIGHT

ingredients. “They are all handmade from fresh ingredients. There is nothing frozen,” says Agi. Ahead, the chain also plans expanding globally with master licensing agreements for three Asian countries and one in Europe. Its endeavours are being supported at official level from Trade Victoria. BURGER BITES • Not a typical franchise- rather a ‘branchise’ • Set up costs and fees very flexible and discussed with licensees on a case by case basis • 3 stores and a food truck currently operating

HELLO HARRY When two franchise experts discovered the Hello Harry brand, they knew they had to buy it and be aggressive with franchising. The chain started on Queensland’s Sunshine Coast in 2014, with the first franchised store following the next year. The brand has since expanded across Australia.

All you need to be part of the global brand, says the franchisor, is a passion for burgers and a passion for success.

Rob McCue says they bought the brand in February last year from the founders. “We could see they weren’t franchise people.” Hello Harry likes to keep it simple with meats and burger patties made fresh in store and buns exclusively baked for the chain. The chain is also a big fan of shakes and craft beers. “Unlike most of our competitors, we don’t just have cooks, we have chefs,” says McCue.

Not a fan of the cookie-cutter approach, he says he encourages his franchisees to have more of a say in how their store looks. While the same branding applies across stores, each location can have a different look and feel. With a target of opening 11 stores in the next year, McCue says they will be halfway there by June. Expansion plans mainly focus in New South Wales but also embrace Queensland and South

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Australia. Hello Harry is known for its “Fat Bastard Challenge, which involves customers eating a double Fat Bastard burger with fries. If they can do this in less than eight minutes, their meal is free and they score a free cap. All details from the challenge are recorded and updated on a leaderboard. “Sports teams come as part of a social exercise and they just love challenging each other. It’s lots of fun,” says McCue. Hello Harry prides itself on being easy to run, and aims to launch every store for the best possible price. “For example, if Mary is opening a store in Parramatta we will help her obtain the best possible price to build equity and profit,” says McCue. BURGER BITES • Set up costs range from $230,000 to about $390,000 including $50,000 initial franchise fee • Royalty: 6% of net sales • Marketing levy: 4% of net sales • Franchise agreement terms are in line with the lease terms • 7 stores open, 7+ opening this year

CARL’S JR With the stance that “bacon makes everything better”, Brad Sommers from Californian chain Carl’s Jr is enthusiastic about the quality meat the chain produces, and the healthy options for customers who prefer not to indulge. “We really cater for everyone,” he says. The fast-food chain is expanding aggressively in Australia, with locations in Bateau Bay, Brisbane Airport, Kilburn, Mount Barker and Redbank Plains. “We want to be in every state in Australia. There is plenty of opportunity for potential franchisees,” says Sommers. The chain is actively seeking franchisees to be multi-location owner/operators across multiple territories in Australia. All you need to be part of the global brand, says the franchisor, is a passion for burgers and a passion for success. The chain has a 75-year history, with Carl Karcher parlaying his hot-dog cart into a global franchise with 3800 restaurants. Known for its “California cool persona” and handmade American

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classics, the chain’s promise is affordable premium-quality food. “Our products are made fresh to order, and we offer chargrilled, premium-quality burgers made with 100 per cent Angus beef,” says Sommers. Carl’s Jr not only offers drive-through options, but also proper restaurants with table service. Its freshly prepared burgers include classics such as the Portobello Mushroom thickburger and the Guacamole Bacon thickburger. There are also vegetarian options and healthy alternatives such as a lettuce bun. BURGER BITES • Investment cost varies according to food court, in-line or free-standing site. • Franchise fee: territory reservation fee of US$10,000/franchise fee of US$36,300 paid when site approved • Royalty: 5% per month • Advertising levy: currently a monthly US$175 fee • Length of term: typically 20 years for standard license agreements • 5 stores in Australia, more than 3,900 worldwide n

INDUSTRY SPOTLIGHT

Chocolate

CHAMPIONS

Add a chocolate theme to a cafe for a hospitality business with a difference. Franchised chains have the market all tied up. By Gali Blacher MARCH/APRIL 2018 | 68 | WWW.FRANCHISEBUSINESS.COM.AU

here is a growing demand for premium chocolates and this trend has provided an avenue for growth, with consumers increasingly demanding hand-made and/or premium machine-made chocolates, despite consuming less chocolate overall.

Senior IBISWorld analyst Bao Vuong, referring to the firm's Specialty Chocolate Stores report, points out that the booming demand for cafes has given another reason for chocolate shops to franchise in Australia. Specialty chocolate stores have aimed to make a visit to their stores an experience rather than simply a shopping trip, positioning themselves as places to consume high-quality food and beverage products, says Vuong. Franchises have been less popular in the cafes and coffee shops industry, but within the specialty chocolate stores sector consumers have been attracted to familiar brands. This is expected to continue over the next five years as

operators seek to expand their growing store networks across Australia. In an effort to support these store networks, major players will develop strong marketing strategies and set up business systems to take advantage of their larger size, suggests IBISWorld. As the industry reaches saturation in prime locations, chocolate stores are expected to expand into more diverse locations. Niche shopping malls and regional areas with high tourism traffic are predicted to be two major growth avenues for the industry, the research company says. The expansion and franchising of specialty chocolate stores is also expected to help reduce costs through economies of scale, spreading the administrative burden and increasing brand recognition. While overall chocolate consumption

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INDUSTRY SPOTLIGHT

has declined when consumers do indulge they are opting for premium chocolate. Exotic and diverse flavours add to the differentiation, and the health aspect has an impact here too with ingredients such as goji berries and chia jam, says the analyst. The Specialty Chocolate Stores report estimates that on average purchase costs would account for more than 40 per cent of industry revenue and that labour costs would account for approximately 25 per cent of industry revenue. The Specialty Chocolate Shops industry is worth about $300 million in Australia, according to IBISWorld. Inside Franchise Business had a chat with Guylian, Theobroma and San Churro to get a taste of this sweet sector.

GUYLIAN The first ever Guylian Belgian Chocolate Café concept began trading in 2007 with the opening of the Circular Quay Café in Sydney, celebrated with a star studded opening event, champagne, canapes and of course, the finest Belgian chocolates. After a great success, the launch was followed by a second café location within

Sydney’s iconic The Rocks precinct and a third at Darling Quarter then the city’s newest dining destination. People couldn’t get enough of Guylians’ fine chocolates. The business was tried and tested before it took on the franchising model. “The business of franchising is well regulated in Australia and our business was developed over several years before we took strategic advice on how to take it to the franchising market from DC Strategy who are experts in the sector,” says Stephanie Agass, marketing manager. The business developed its systems and procedures to ensure compliance with the regulations while still ensuring the business itself remained viable and attractive to future franchisees who meet Guylian’s criteria for opening one of its stores. “We advertise for candidates and then take them through a selection process to determine if they are the right fit for us and we are the right fit for them. It takes time to build the relationship needed to work with someone and gain their trust that you can deliver on your offer,” says Agass. “We do not rush the process as

we are typically looking at a 10-year partnership so both parties must be convinced they are the right fit for one another if the franchisee is to succeed. “We have a very clear operating model and cost of entry and provided candidates can adhere to our guidelines and have the patience to find the right location for their store then we are confident they will do well.” Guylian developed a structured model that suits franchising, and franchisees can replicate the ‘Guylian experience’ which will than allow the business to grow both locally and overseas. “Core to the Guylian Belgian Chocolate Café’s success is ensuring our brand values and integrity are maintained throughout our franchise expansion, such that new café locations and the best fit franchisees are of paramount importance,” says Agass. With 10 stores (seven in Australia and three overseas locations), Guylian is working towards the launch of its flagship location in Dubai in May 2018. It is also seeking premium leases to expand domestically. While there are no prerequisite characteristics or skills to become a Guylian

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franchisee, the brand seeks natural leaders with a passion for customer service, decision makers with an ability to inspire and motivate their team, supported with excellent communication skills. “We prepare our franchisees to ensure they are willing to follow and implement all the systems and procedures of the GBCC brand and are prepared to work hard in their new business on the journey to success,” says Agass. “Of course, we are standing with them and giving them an outstanding headstart by putting their key personnel through a rigorous training program to ensure they reflect our brand values and the levels of service standards match our reputation for quality and service excellence,” she says. What makes Guylian’s chocolates quite special is that are still produced out of the one factory in Sint-Niklaas Belgium, where they were established 50 years ago. The chocolate chain’s most popular signature dessert is the 100% Pure Pleasure – a tower of rich Belgian chocolate mousse with an almond panna cotta centre, smothered in a silky liquid

Guylian chocolate icing. The brand’s hot chocolates are also a favourite: customers delight in pouring their hot chocolate over signature seahorse chocolates to create a ‘decadent rich chocolate experience’. “Our success has seen some of Australia’s largest developers and shopping centre owners specifically target our premium café brand as a must have for their flagship venues,” says the marketing manager. Guylian’s partners include the NSW Government (The Rocks), Lend Lease (Darling Quarter), GPT (580 George St) and Westfield Shopping Centres (Pitt St, Sydney & Parramatta). This year marks the 50th Anniversary of Guylian Chocolates and the 10th Anniversary of the café chain opening in Australia, and with the brands new loyalty program and app the business will be focusing on a number of key customer driven marketing campaigns.

THEOBROMA Theo Racovalis, an award winning craftsman and chocolate connoisseur, developed the Theobroma concept

in conjunction with an architect and designer, as an alternative for an Australian market they judged to be ‘coffee’d out’. The chocolate range includes milk, dark, white and coloured chocolates, chocolate liqueurs, truffles, beverages, desserts and other chocolate snacks. You could say being a chocolate afficianado is the number one trait needed for any Theobroma franchisee. Benjamin Fernandes, franchise and operations manager, says one of the best aspects of Theobroma’s franchise model is the symbiotic relationship with the franchisee. “We are unlike other franchises where the typical one size fits all,” says Fernandes. Appreciating that different areas, people and demographics have different needs, various business models are available to suit the franchisee, as well as the customer. “We therefore have a variety of concepts to choose from, both from an investment level and complexity of operation,” says Fernandes. The chocolate chain believes heavily in good training and prides itself on well thought out and researched programs.

If you are looking for a change, are passionate about water safety and enjoy working with children, this could be the opportunity you have been looking for! Swimming is a life skill that nearly every parent recognises they need to teach their children from a very early age. In fact, many parents begin swimming lessons when their children are still babies. We offer a boutique custom-made swim school with state of the art turnkey fit outs, including full training and support for every Franchise.

If you are keen to find out more and see if you qualify to own your very own Splash Swim School please contact us today for a confidential chat. For Franchising opportunities contact: P: 1800 SPLASH (775274) I E: admin@splashswim.com.au splashswim.com.au

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PROFILE: Splash Swim the art turnke follow Royal L Full training a Operation sys

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INDUSTRY SPOTLIGHT

It’s important our franchisees get that satisfaction from putting smiles on customers' faces.

“We provide theory based trainings and relevant and practical training to get franchisees to a competency level to have the right attitude,” says Fernandes. Theobroma offers lounges and lounge bars as well as pavilion and pavilion bars. LOUNGES AND LOUNGE BARS: Created as an environment where the consumption of food and beverages is an experience in itself and offer customers a selection of seating to suit their mood. There are comfortable sofas and tub chairs to offer those who wish for a chance to pause and take a break, while the coffee bar and café seating with a selection of timber furniture provide a quick grab and go option. The Lounge Bars are licensed and offer a variety of chocolate themed cocktails along with boutique beer and wine. PAVILIONS/PAVILION BARS: Offers its patrons the finest hot and cold beverages, specialising in indulgent chocolate beverages, coffees, blended teas, and other custom drinks. In addition, Pavilion sites offer soft drinks, freshbaked pastries and other confections, as well as a range of the Theobroma chocolate retail products. Pavilion Bars are an expanded offering on the Pavilion concept but with the added addition of a chocolate cocktail menu and a limited beer and wine menu. Theobroma franchisees need a friendly disposition, a willingness to work with the system, an enthusiastic approach to business, determination to grow and overall a great passion for the brand.

SAN CHURRO

passionately about his brand that came about due to a life changing trip to Spain. At the heart of the business is not only a love of chocolate and churros but also a love of people. Maurici decided to franchise the business as he wanted each store to be loved and cherished by its manager. He never wanted a big corporate business with lots of middle management. Maurici looks for franchisees who also have that love and passion for the brand and aren’t just looking for a passive investment. He believes it’s important for the franchisee to support the franchise and for the relationship to be a partnership. “It’s important our franchisees get that satisfaction from putting smiles on customers' faces,” he says. The founder is focusing on improving and refining the business, ensuring the existing network of outlets is well served, rather than focusing on expansion. Increasingly restaurants are incorporating chocolate into their menu but Maurici says competition is not always a bad thing; rather it makes for a fun environment where you’re always having to innovate. Recently for Valentine’s Day San Churro made a delicious red velvet dessert which proved to be very popular amongst Instagram followers. Maurici says there are a lot of exciting things planned this year, including something top secret he couldn’t reveal yet. “We have a whole team dedicated to making new and delicious desserts,” he says. “It’s important to have fun with products.” n

San Churro

Giro Maurici, founder, San Churro, speaks MARCH/APRIL 2018 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

IT'S TIME TO CALL THE SHOTS Join the Mrs.Fields Bakery Café Family!

• • • • • • • • •

Simple Business Model Work/Life Balance with no early starts Comprehensive training Great Cafe Style Product Range including Breakfast & Lunch Options Award Winning Coffee Offer National & Local Marketing Full ongoing support No experience required From $199,000 with low Franchise Fees

We have a number of delicious franchise opportunities available around Australia, so if you’re interested in running your own Mrs. Fields Bakery Café, contact us today. info@mrsfields.com.au www.mrsfields.com.au

INDUSTRYSPOTLIGHT

THE MULTI-FACETED PROPERTY FRANCHISE SECTOR The multi-faceted property franchise sector could be the foundation for realising your own ambitions and help others achieve the great Australian dream. By Gali Blacher

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FRANCHISE INDUSTRY SPOTLIGHT BASICS

he property market often brings to mind real estate agencies and big expensive homes. However, the property franchise market is much more than that and includes many services and businesses that support the sector.

At the heart of the property arena is real estate. Revenue for the real estate agency industry is forecast to grow at an annualised 1.6 per cent over the next five years, to reach $7.8 billion in 2022-23, according to IBISWorld analyst Will McGregor. He suggests an anticipated rise in the cash rate, which will push housing loan rates upwards, will reduce mortgage affordability, particularly for first-home buyers. “Furthermore, residential housing price growth is anticipated to slow over the next five years, which will likely limit industry revenue growth,” says McGregor. But, the analyst points out that although growing housing prices over the past five years have stopped many

first-home buyers, they have also increased property sales activity from investors, boosting equity. As a result, investors have increased in importance as an industry market, with commission from investment property purchases and demand for agency management and services of rental properties having risen over the past five years. When acquiring a property or purchasing a property related service, consumers often choose companies with an established brand for peace of mind. Franchises have established brand names, clientele and skilled staff that could take new entrants time to acquire. So walking into a brand ahead of the game in a highly competitive market such as property means you’ll be part of a sector you love without the initial hassle of a start up. Inside Franchise Business chats with three very different businesses working within the property industry: Hotondo Homes, My Home Watch and One Agency.

ONE AGENCY One Agency has a distinct model that allows real estate agents to operate independently under their own brand while benefiting from being members/ licensees of a well-known and respected group. The company feels strongly about providing support but not dictating and mandating. Joining One Agency is all about working individually but still together and helping real estate agencies to be more streamlined. “We seek people who've got the business acumen and life experience to be successful,” says John Stewart, head of Australasian membership, corporate headquarters. The members of One Agency are able to learn from people across the brand who have the most experience across the industry. “Members can learn from within the brand rather than from some people in the head office who might just be a tad out-of-date, they're not on the point at the moment,” says Stewart.

Make a difference to people’s lives. Open The Good Feet Store today. BENEFITS OF A GOOD FEET STORE FRANCHISE: Serves the needs of a large and broad market: people searching for relief of foot, knee, hip, and back pain. A category leader with few direct competitors. Comprehensive branding and marketing: campaign materials and support – broadcast, in-store, online and collateral.

We’re driven by an unwavering commitment to improving the quality of people’s lives – two feet at a time.

For more information on becoming a Good Feet Store franchise owner contact Jarrod on (02) 4957 4230 or email jarrod@goodfeet.com.au goodfeet.com.au MARCH/APRIL 2018 | 76 | WWW.FRANCHISEBUSINESS.COM.AU

"Someone at our recent awards said ‘We are the guardians of the brand, not the payment head office’, and that really explains us well.” Stewart says instead of paying $240,000 a year in franchise fees, and training fees and marketing fees, members pay a much lower fee and are able to get the same benefits. This model is different to the average franchise model and is most suited towards an individual who is passionate about real estate, wants a well-known brand, and a support network but also wants independence. Almost like an adult relationship with one’s parents, One Agency offers a chance to work on your own but also get that support when needed. “We very passionately drive our members to keep control of their costs and overheads and show them how they can operate really cost-efficiently and professionally,” says Stewart. “If the market halves, you're still making a whole lot more than you were making when you were working for somebody else, or in a typical franchise situation.

“When people get into financial and practical binds, they lose sight of the job, and they start panicking. Well, as much as we possibly can, we keep them away from that likelihood by insulating them against market changes and market contractions.” Stewart says the brand offers simplicity, cost-efficiency, opportunity to innovate, and above all, to meet more people in the sector. With a message that you can work in a team independently, One Agency is doing things a little differently and spreading its brand nationally. BEST SUITED LICENSEES: • Professionals in real-estate seeking support • Individuals with business acumen • Go getters THE BASICS • Establishment fee $13,500+GST • Monthly administration fee: $950+GST • Term: Up to member to choose, from 3 to 15 years, full right of renewal • 220+ licensed areas allocated

REFRESH YOUR CAREER! Join the Freshii revolution! Are you passionate about fresh, healthy, delicious and affordable fast food? Want to be part of a unique and fun global brand? Then we want you! Freshii is one of the most exciting and fast growing new franchises in Australia, with opportunities available now in prime CBD and urban locations across the country. • • • • • •

Franchises start at just $160,000 Low fees and royalties, fixed marketing fees Financing options available from 0% deposit (STA) Flexible supplier agreements Uncapped earning potential No experience necessary - we can support you with training, marketing and site development

To apply, or ﬁnd out more, get in touch at franchise@freshii.com.au or visit freshii.com.au/franchising WH72363

T&C’s apply. All applicants will be reviewed on an individual basis.

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We very passionately drive our members to keep control of their costs and overheads and show them how they can operate really cost-efficiently and professionally.

FRANCHISE INDUSTRY SPOTLIGHT BASICS

HOTONDO HOMES Hotondo Homes is a home building family business run with family values. When Michael Renwick’s father started the business, he wasn’t sure what franchising meant and thought the model could be established in a short time. “[My father] thought we would have thousands of builders and many houses to build, and we would do it overnight. We set out a business model that wasn’t completely functional and then after a few years, when we were going broke, I fixed it,” says Renwick. He says the new business model came about by accident and he was influenced and helped by friends he has made in the franchise sector. Renwick says franchisees who are a part of his organisation get value from the collaborative research that has gone into the franchising model. “They also get the support and training. In particular, they get fraternity, and this is really important in all franchising. They get this collective fraternity.

We want to have integrity and honesty and have our franchisees really proud of the work that they're doing.

They're suddenly a part of a group that's supportive. They then have a viable way to absolutely secure their families future, financially,” he says. “There's no limit to what they can achieve.”

For Hotondo franchising is all about community and Renwick feels his franchisees benefit the most from a communal, helpful and structural environment. The territory based business model allows franchisees to purchase additionla territories and build as many houses as they can, there’s no restriction on this from the company. As Renwick says, “The skies the limit.” He’s a big believer in franchisees reaping the rewards of their effort: they get out what they put in. The boss also says that his biggest strength is recruiting the right people. “I am very proud of our support,” he says. Renwick takes a moderate approach to expansion. He believes as a franchisor that it’s important to improve the existing business and to grow at a steady pace. BEST SUITED FRANCHISEES • Builders • Those looking to start own business but seeking a community

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THE BASICS • Investment $250,000 depending on the territory. • The length of term is generally five years. • Currently has 74 franchisees.

MY HOME WATCH While planning a holiday trip Natasha Morgan was worried about who was going to look after her home when she was away. Her family live 45 minutes away so it wasn’t convenient to rely on them. While house sitting was an option- how do you know who to trust? Almost overnight Morgan established My Home Watch which provides services such as checking on, walking and feeding dogs, checking doors are locked, watering plants or arranging anything else in the house while home owners are away. She also provides a security system to view activity at the home from anywhere in the world. “Home watching is an industry in Canada and the US but it wasn’t in Australia, I was able to bring an entire

industry to Australia,” says Morgan. With having the market pretty much to herself Morgan franchised nearly straight away and built a model that was easy and adaptable. The business has a reach beyond the average absent home owner. My Home Watch works closely with real estate companies who manage investment properties as well. The real positive for My Home Watch’s franchisees is that they are getting to be part of and help grow a brand new sector in Australia. Franchisees are also able expand and grow into more than one territory. “So the growth factor is there, and that is definitely something that a lot of people and a lot of our franchisees that are already on board are interested in,” she says. Morgan plans to grow the business at a constant speed and keep developing around Australia. The franchise really suits those who are retired and those who are interested in helping others and growing their own business, she says. “We want to make sure that we have

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the right people that are actually franchise partners with us, we want to be able to work with the right people but we also want our customers to have fantastic customer service,” she says. “We want to have integrity and honesty and have our franchisees really proud of the work that they're doing. “And if you love pets- it’s a real plus!” THIS FRANCHISE WOULD SUIT.. • Pet lovers • Retirees • Mums and dads seeking new adventure THE BASICS • Investment cost: $25,000 • Flat franchise fee: $550 per month • Franchise looks after their own Local marketing, MHW does marketing on national level • 5 year term • Operating in four states SA, VIC, WA, NSW

FRANCHISE BASICS

FRANCHISING – RESEARCHING YOUR BUSINESS OPPORTUNITY

Investing in a franchise requires stringent due diligence.

BRUCE BILLSON Executive chairman, Franchise Council of Australia

he excitement of finding a franchise business that you believe will help achieve your goals of becoming your own boss (with the support of your franchisor behind you) and setting yourself up financially is an amazing feeling. However, it’s not a commitment to be taken lightly. While the rewards of becoming a franchisee can be considerable, as with any small business, there are no guarantees of success and the risks must be understood and appreciated. Becoming a franchisee is a very important business decision. So, it’s time to take off those rose-tinted glasses, do your research and engage the experts to help make the decision that will be best for you.

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WHY DUE DILIGENCE IS IMPORTANT Your due diligence is the process of researching, asking questions and finding out all the information you can about the franchise system you are considering becoming a part of. Becoming a franchisee means typically binding yourself to your franchisor for at least three to five years and making a substantial upfront financial outlay to purchase the

The Franchise Council of Australia’s (FCA’s) website provides useful resources to help build your understanding of franchising, assess your suitability as a franchisee as well as providing questions you should ask of a particular franchised business in relation to its own activities. Read more at www.franchise.org.au/buying-a-franchise or www.franchise.org.au/franchisee-faqs The FCA also supports the Franchising and Business Opportunities Expo, which is held annually in Sydney, Perth, Brisbane and Melbourne. These expos are a great place to improve your franchising knowledge and speak to franchisors and franchisees from a wide range of businesses, attend free informational seminars and meet small business advisors and experts. Once you are confident that your basic franchising education is sound, it’s only then that you should start drilling down into the specific franchise system that you may wish to become a part of. And there’s plenty more to learn once you’ve selected the franchise system you think is right for you.

KEY CONSIDERATIONS WHEN SELECTING A FRANCHISE OPPORTUNITY

business, on top of operating costs. That’s not to mention the time that you will spend working both in and on the business as you deliver your product or service offering and build your customer base and reputation in your local community. You are about to make a potentially life-changing commitment, so taking a systematic and thorough approach to your due diligence and finding out everything you can about your prospective franchisor is imperative.

WHERE TO START YOUR RESEARCH Your research should start the moment you start to seriously consider becoming a franchisee.

The franchise recruitment process is in some ways similar to a job interview in that both parties are assessing the strengths and suitability of the other to meet their respective ambitions, expectations and requirements. Begin your assessment of the prospective franchisor from your very first interactions with them. Are they organised, efficient and courteous? These traits may not be indicative of whether the franchise business will be successful but are very good early signs of what your franchise relationship might be like should the process progress to this stage. Find out all you can from the franchisor about its business at this stage. Broadly, you might like to ask questions around: costs and expenses involved in the franchise business (including fees and royalties) as well as gaining an understanding of sales and profitability of the group; the training, development and field support that is provided; advertising and marketing; franchise territory; what happens when you want to renew or sell your franchise; and details regarding any retail leases. A good franchisor should be able to answer these questions and any others about the business in detail and where appropriate provide the documentation to support and expand on its responses. Under the Franchising Code of Conduct - which governs franchising in Australia - franchisors must provide prospective franchisees with, amongst other things, the current financial details

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of the franchise system, contact details of current and former franchisees and the costs to start operating the franchised business and other payments or fees that franchisees may be required to pay. Read and understand these disclosure documents carefully and make sure you get the trained eye of a competent professional to do the same – more on the importance of that later. Current and former franchisees can provide a wealth of information about what it’s really like to be a franchisee in that particular franchise network. So, talk to as many of them as you can. Find out just how much support the franchisor really provides in terms of training, development and marketing. Find out just what the relationship between franchisees and head office is really like. You want to know the highs and lows of owning a franchise business in that particular network and just what it takes to be successful. Think of this like a reference check for a prospective employee. You’ve heard all the good stuff from the franchisor, this is your chance to crosscheck that what you’ve been told matches the reality of being part of the system.

WHY YOU NEED EXPERT ADVICE You can expect to receive detailed financial information from your prospective franchisor as part of the disclosure process. This is information that is best analysed by a trained accountant, who is an expert in their field and can alert you to any anomalies or red flags in the financial documents. Your franchise agreement will likewise contain legal terms and clauses that, once you’ve signed it, will bind you for the length of its term. Lawyers are trained to understand these terms and expert franchise lawyers will know what to look out for in a franchise agreement. If you don’t have the money to engage the professionals at this stage, then you don’t yet have the financial resources to become a franchisee. There’s too much on the line to take shortcuts, and no excuse for doing so.

WHY YOU NEED EXPERT ADVICE There is no opportunity that’s too good to miss out on, so don’t feel pressured to sign a franchise agreement unless and until you are completely comfortable with the franchise system, the financial documentation and the terms of the agreement itself. So take a deep breath, do your research, consult the experts and, ultimately, choose the franchise system that’s right for you. n

FRANCHISE BASICS

PUT YOURSELF

IN THE PICTURE Find a franchise that can accommodate your dreams. Just how big are your ambitions?

raditionally in franchising a franchisee has been a singleunit business, operating a store or a territory as an individual, a couple, or in partnership. This hands-on model has driven the global juggernaut that is franchising, and it remains a hugely popular method for franchisors who want their franchisees to be on the frontline with their business.

There’s an alternative version proving increasingly popular. Multi-unit franchising started, as so much in this sector does, in the US. It gives the franchisee the opportunity to extend his or her capacity, to meet more ambitious goals, by operating two, three or more units in

a single franchise network. In the US this has become such a feature of the franchise landscape there are franchisees whose business is larger than the franchisor under whose brand they trade. It’s picking up as an option in Australia too, and many franchise brands welcome and encourage their franchisees to take on more sites and build a bigger business. But not every franchise views their franchisees’ futures in multiples, and not every franchisee is right for the demands of multi-unit operation.

SINGLE-UNIT FRANCHISEE The single-unit suits individuals and

couples who choose a franchise as a way of securing their future, as an alternative to a job, perhaps as a way to move into retirement and gain a more flexible lifestyle. It works equally well for inexperienced and experienced business people - many franchisees come with an employee background, and are relying on the franchise system to help them establish their own business. The business might be a simple workfrom-home or mobile operation that requires minimal technology; it might equally be a fully-equipped gym or a fast food outlet that has a suite of back-office admin tools and systems. A single-unit franchise can be particularly effective when the franchisee is a near-constant presence in the business - in

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FRANCHISING, LICENSING AND DISTRIBUTION SPECIALISTS Australia is open for business and the 2018 forecast is for further growth. The ACCC is actively monitoring compliance in the industry! Minimize your risk and ensure your compliance to avoid fines and penalties.

Robert Toth and his team provide advice to companies and individuals in:

• Assisting overseas companies to establish business and franchises in Australia. • Master franchise rights. • Dispute resolution – solution and strategies. • Franchise advice – fixed fee reports. • Sale or purchase of franchise systems. • Trademark and intellectual property (IP) advice. • Company structures. • Business modeling – franchising, branchising, licensing, distribution and agency. • Employment law. • Consumer law and ACCC advice. We have a network of franchise consultants to assist our clients establish their brand and systems. We offer fixed fees based on the scope of work so our clients can budget for their legal costs with certainty.

Marsh & Maher Richmond Bennison Franchising, Licensing and Distribution Group act for local and overseas companies entering the Australian market and have a network of experienced consultants to assist clients with demographic, feasibility, market research and preparation of business entry plans to ensure the best success for our clients www.marshmaher.com

Member of International Franchise Lawyers Association (IFLA), US Commercial Service and Franchise Council of Australia (FCA).

CONTACT: robert@mmrb.com.au Robert Toth

esther@mmrb.com.au Esther Zhang

stacey@mmrb.com.au Stacey Ryan

amy@mmrb.com.au Amy Sheggerud-Woods

Partner & Accredited Business Law Specialist

Lawyer

(03) 9604 9400

Senior Associate

Partner & Accredited Commercial Litigation Specialist

FRANCHISE BASICS

terms of driving the franchise, ensuring excellent customer service, and for financial returns. The unit economics may allow for a manager to take on the day-to-day running of the franchise but often franchisees prefer to establish themselves first and ensure the business is running effectively before delegating. Some continue to work in the same role: the joy of the job is being with customers everyday in the store, out in the van. If the franchise is a territory based business, that territory may be offered to the franchisee as an exclusive area, limiting other franchisees’ and the franchisor’s activities in the territory. The franchisee will have access to local area marketing and be able to promote his or her business using templates and material devised by the franchisor. While the franchisee is a single entity, trading as an individual business owner, access to the procedures in place within the franchise network allows each unit to benefit from the greater exposure of the brand.

MULTI-UNIT FRANCHISEE The multi-unit franchisee benefits from all the systems, territorial exclusivity

and marketing options available to the single-unit colleagues. The big advantage for franchisees operating multiple units is economy of scale. For instance, franchisees may employ a flexible, moveable workforce across a number of outlets that makes it easier to cover unexpected absences in a store; the franchisee may benefit from larger orders placed with suppliers; a single strategy for marketing can be rolled out across all territories or outlets. Depending on the size of the business, the multi-unit franchisee may even wield greater influence with the franchisor as he or she becomes a significant player in the network. It is inevitable that as the franchisee’s business develops across multiple sites, there is no longer the capacity to be working in the business. Franchisees need to develop a more strategic role, directing their own groups to success and this requires a different set of skills. Of course the multi-unit franchisee can bring experience to the new stores or areas, and an understanding of how the franchisor likes to work. That can make it an attractive proposition for franchisors who also find themselve dealing with fewer franchisees if some or all sign up to multiple sites. That makes it easier to

manage network development and introduce significant changes. A crucial element is identifying whether or not an existing, good singleunit operator has the wherewithall to take the business to the next level. At a Multi-Unit Summit in 2017, run by the Franchise Relationships Insitute, David Hood, president of US firm iFranchise Group, suggested there are eight ways to spot multi-unit suitability. WHAT YOU NEED TO BE A MULTI-UNIT FRANCHISEE 1. Goals, capabilities, plans You’ll need ambitious targets and to show you have the capabilities to work plans and achieve goals. 2. Strengths and weakesses Do you recognise your strong points? The franchisor will want to see how you apply these strengths to grow the business, and to be sure your weaknesses won’t be exacerbated as the business grows. 3. Support structure You will need to have a solid support structure within the business to ensure an expanded operation continues to function optimally, and to have the will and the capital to invest in restructuring and developing support roles.

There’s never been a better time to get into bed with Bedshed. Bedshed, one of Australia’s largest and most trusted bedding retailers, is continuing its expansion across the East Coast with further opportunities now available in Queensland, Victoria and New South Wales. According to independent research, Bedshed franchisees are more financially satisfied than 84% of the sector. Here’s why: • Average turnover for Victorian stores $3.75m • Demonstrated growth of up to 20% • Net profit in excess of 10% of turnover With more than 35 years of experience and over 30 stores, Bedshed are looking for further growth and are currently offering an incentive package worth $275,000. The advertising and franchise fee incentive is available for the first five stores to open in Sydney and can accelerate and improve the initial return on investment. If you’re interested in the opportunity, please contact Rod Parker on rparker@bedshed.com.au or 0419 494 480.

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4. Level of engagement You need energy and commitment to become a multi-unit operator. The franchisor will look for franchisees highly engaged with fellow franchisees across the network, who attend conferences, seminars, workshops and training, who mentor, who have built relationships with the franchisor team. 5. Operational compliance Of course it’s crucial to be franchise compliant; multi-unit franchisees multiply their brand activity and as a result, their impact on the brand. 6. Organisation Strong organisational skills are a must for any franchisee operating multiple business units. You’ll need to display your ability to run a business, not just operate a franchise unit. 7. Team plan A multi-unit franchise operation relies on its staff. That means an effective team plan that works, with an engaged and committed staff. 8. Quality of marketing Marketing is one of the four tenets of a franchise, and quite often a skill that new franchisees don’t possess or feel comfortable with. To take your business to the next level, you will need to show that your marketing has been

of the highest quality, productive and compliant, across relevant channels.

MASTER FRANCHISEE One step up from this is the master franchisee, someone who will be recruiting sub-franchisees according to an agreed schedule, across an agreed region. This is a common role employed by overseas-based franchises that want to build a network of outlets across Australia. Lawyer Marianne Marchesi from Legalite explains a master franchisee will usually have greater rights than an ordinary franchisee because they can on-licence the brand to sub-franchisees. “This means that the master franchisee is effectively treated as a franchisor under the Code and must comply with all the requirements imposed on franchisors by the Code,” says Marchesi. This includes requirements to provide a disclosure document and update this each year, allow a 14 day disclosure period when issuing documents to sub-franchisees, provide financial information and marketing fund financial statements to sub-franchisees, Marchesi points out. In addition, master franchisees must disclose key terms of the master franchise

agreement in their disclosure document, including details as the head franchisor. Such a role requires motivated, experienced and high performing individuals. They will be dealing with the franchisor directly, and on a practical level, will be the face of the franchise brand to all the franchisees coming under their wing. n

Depending on the size of the business, the multi-unit franchisee may even wield greater influence with the franchisor as he or she becomes a significant player in the network.

Step Into A Business With Proven Success & Ongoing Support Soccajoeys is an Australian owned and operated Franchise network with over ten years of success developing over 35,000 children through fun kids’ activities using the world’s most popular sport, soccer. When you choose a Soccajoeys franchise, we’ll help you make a positive impact in the community and achieve your business goals with support from our experienced team, offering business best practice, ongoing training and marketing support. WHY CHOOSE A SOCCAJOEYS FRANCHISE?

• Join an established and recognised brand • Ongoing training & operational support • Australia wide marketing initiatives to drive business within your area

• • • •

Low entry cost & expected ROI within a year Flexible lifestyle running your own business Be in business for yourself, not by yourself Exciting career in the childhood development industry

Enquire today at www.soccajoeys.com.au/startingabusiness for an exclusive guide on becoming a Soccajoeys Franchisee info@soccajoeys.com

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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

FORCES How to choose an industry that is right for you.

ake it easy for yourself: apply some strategy to the research you need to do when investigating your future franchise sector. The more time you spend on understanding market trends and business potential, the more confident you will be in your choice of franchise.

Three critical factors will come into play when you make the decision to choose one sector over another: • What is the economic potential for the industry? • Will you enjoy working in the sector? • Do you have the right skills to be successful? As part of the process of due diligence, you will be considering many factors, even if you have already have

set your sights on a particular industry or even brand. It is not uncommon for franchisees to be weighing up the potentials for a range of businesses that interest them at an early stage of discovering what franchising is all about. Some potential franchisees are undecided about brands, and are taking a helicopter view of the various sectors to spot potential before they dip down further into details. Perhaps you are seeking an investment only, and will be looking for someone else to manage and run the business.

UPWARD TRAJECTORY Whichever approach you take, it is crucial to evaluate the status, potential and market challenges of any industry.

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It has never been easier to access commentary, resources and opinion on specific market sectors.

You may not plan to be in your franchise for more than one term, which could be as little as three years, but you will still need to sell the business and make

FRANCHISE BASICS

MARKET

FRANCHISE BASICS

a good return on your investment. That means picking a market sector that is on an upward trajectory, even if that is not fast-growth. An extreme case in point over the past few years has been the entertainment industry which, as consumers have adopted digital streaming channels, has seen the decline and eventual death of the video store. Self-service kiosks are the sole remnants of what was once a small-business concept found in every neighbourhood. It is hard to sell a business that does not have a future, so be sure to research the marketplace. Many research and consultancy firms issue predictions on market trends, highlighting industries in decline and those expected to grow substantially. Deloitte, IBISWorld, PwC, the Australian Bureau of Statistics and major banking institutions, for instance, are just some of the organisations that can provide statistics and/or commentary about industries in Australia, population trends that will affect geographical demand, lifestyle habits that influence consumer spending choices, and so on. IBISWorld in particular publishes reports that include market size and

growth potential, whether the market is emerging or mature, competitive analysis such as barriers to entry, and a breakdown of typical costs.

BIGGER PICTURE Public company results, the rate at which small businesses open and close, employment levels and trends, access to funding, political change, economic sentiment, technological advances and, of course, global macroeconomic trends all feed into the bigger picture. While plenty of information is freely available online – Inside Franchise Business reports on industry surveys and trends produced by market researchers across a variety of sectors – if you want to access in-depth analysis, expect to pay. Industry organisations such as Australian Retailers Association, Fitness Australia or Restaurant & Catering Australia can provide insights into industry trends and challenges, including signalled regulatory changes that may have an impact on the performance or development of businesses in that particular sector.

These give you an overview of what is happening in any one industry. You can also gain an idea from industry associations and publications of issues of concern, and the community at large. Is this an industry where you can have empathy? Will you be engaged in the issues and challenges? Can you identify yourself with other players in the sector?

SEEK PERSPECTIVES It has never been easier to access commentary, resources and opinion on specific market sectors. Add general online searches to your research process, and speak with small-business owners (they need not be franchisees) to gain their perspectives on the way the industry is progressing. Once you have researched the trends, demographics, the costs of running the business, the drivers for success, and the state of secondary industries that supply the market (think raw ingredients for a food business, for instance) it’s time to put yourself in the picture. What is equally relevant is to focus on the skills needed to successfully run a business in a particular sector,

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and to reflect on whether you want to undertake the core tasks of the businesses within this industry. At an industry level, there will be clear distinctions between types of small businesses in the market, and between specific brands. However, there are some overlapping fundamentals. For instance, just about every business involves customer interaction and a level of customer service, but some more obviously depend on high levels of energy, a positive personality and the ability to work at a fast pace: think retail, the hairdressing sector and the hospitality industry.

PARTICULAR CHALLENGES Food, and fast-food in particular, has been a tremendously popular sector for franchisee investment. Working in a food environment has particular challenges, however: it entails stringent compliance to health and safety standards, depends on consistent product quality and efficiencies, relies on good equipment, requires adherence to workplace law, and is highly competitive... stores need regular refurbishments, and rental is

Just about every business involves customer interaction and a level of customer service, but some more obviously depend on high levels of energy, a positive personality and the ability to work at a fast pace.

a significant portion of the monthly takings. That is without taking into account consumer trends and changing tastes. Will coffee continue to be a winner? What will the fast-food landscape look like in five years? How much can the healthy food sector be expected to grow? On a personal level, will you want to show up to work every day in a sevenday-a-week business? How will you cope with the early trading hours of a bakery? Can you imagine yourself spending a day prepping, cooking, serving and cleaning

up before getting on to the admin? If you have always been office-based, will you be able to manage a full day on your feet? Of course, putting your personal and professional skills to work in an industry that will return you a good profit for your investment is like matchmaking. One element out of alignment can set you up for a tricky future. The clue is to pay attention to the signals as you work out which market is going to give you the opportunity to meet the goals you are setting yourself – and to enjoy life along the way. n

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Owning a Kwik Kopy franchise is your chance to be part of the success story.

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For more information call (02) 9967 5500 or visit kwikkopy.com.au/franchise

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Become Your Own

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FRANCHISE BASICS

WHATâ&#x20AC;&#x2122;S THE FRANCHISOR'S VISION? How to read between the lines and make a smart investment decision

JASON GEHRKE Franchise Advisory Centre

nvesting in a franchise is likely to be the single greatest financial risk you will ever take in your life. But the risk involved is usually a lot less than investing in a standalone small business, with different sources claiming that a franchise will reduce the risks by a third, or a half, or even more.

Franchisees choose to invest in franchises in order to minimise their risk compared to going it alone, but can mistakenly assume that any franchise is better than every independent small business when this is often not the case. Some franchise business models are more enduring than others. Some franchisors are better at supporting their franchisees than others. Some have

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FRANCHISE BASICS

lower fees than others. There are many differences between franchise brands, including those that might seem to offer virtually identical products or services. The differences are often subtle, and occur behind the scenes rather than in a manner obvious to the casual observer. One of the greatest differences that can set one franchise apart from another, is the franchisor’s vision for the brand, their capacity to deliver that vision and the success of their franchisees’ businesses. So how do you read between the lines of the franchisor’s vision, and their capacity to deliver on it? Once you are at a certain stage of discussions with the franchisor, they will provide you with disclosure documentation, including a disclosure document, the franchise agreement and the Franchising Code of Conduct (ie. the regulations which govern the franchise sector in Australia). You should assess the franchisor by going to the disclosure document and cross-checking the information it contains. What does the disclosure document

It is much better for you to critically analyse figures before committing to a franchise – and deciding against investing if they don’t add up – than to try and pick up the pieces later if the business sends you broke

say about the background and experience of the system founders and executive team? Are they credible? There is a list of current and ex-franchisees (and their contact details) contained in the disclosure document, so what do their existing and former franchisees say about them? Does the franchisor actually own or control the intellectual property rights you are paying to access? If the franchisor is a public company, make sure you access its most recent

annual report, which should be available on its website, or failing that, on the website of the Australian Securities Exchange (ASX). These reports often provide significant insights into the vision for the franchisor’s business, as well as its most recent performance (although you may have to decipher a degree of corporate spin as annual reports rarely highlight any bad news a company has experienced). Whether the franchisor is a public or

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a private company, closely consider the background and origins of its founder and/or current leader. Their characteristics will materially impact the culture of the business. When they are interviewing you about the franchise, you should also be interviewing them, and ask them any questions you need to satisfy yourself that they not only do they have integrity, but that vision for the brand is one that includes a strong focus on long-term relationships with profitable franchisees to drive the brand’s success.

FRANCHISOR’S VISION Next, look at the franchise agreement itself. The disclosure document will refer to this anyway, but it is best to read the agreement in full rather than in patches via cross reference from the disclosure document. The franchisor’s vision may also be evident in the provisions of the franchise agreement, which could indicate the potential for the addition of future products or services, or the creation of new sub-brands to commercialise new

market segments. By this stage, you should have already done a trademark search on your franchisor (based on the information contained in the disclosure document). The registration of trademarks in categories in which the franchisor’s business does not currently operate could also indicate a future strategic direction for the business which may give you further insight into the franchisor’s vision. And if you haven’t already done so by now, make sure you check the franchisor’s website for any media releases it has published about itself, and then do a Google search to check what the media actually published. There is a limit on how far back the information in the disclosure document goes, so there could be something your online search reveals which isn’t actually disclosed. One of the most telling factors to assess the vision of the franchisor is their public comments about how many outlets they believe they will have, and when. When starting out, many franchisors often indicate how many outlets they expect to establish within a certain timeframe. If that timeframe is nearly

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up, or has passed, and the franchisor is nowhere near achieving that number of outlets, then its vision has not been met by reality which could result in broader disappointment in the performance of the brand for current and future stakeholders, including yourself. Likewise, you should be mindful of franchisor claims about expanding into new markets, particularly overseas. While growth is generally considered healthy for a franchise network, premature international expansion can drain a network’s ability to support its domestic operations, which means as a franchisee you might not get the level of support, advice and guidance you expect.

CAREFULLY ASSESS You should also carefully assess anything the franchisor’s representatives say to you during the recruitment process, as this could form representations which may not always match reality. For example, if the franchisor’s recruitment officer tells you that an outlet you are considering has great

FRANCHISE BASICS potential, will you take this statement at face value (knowing it’s your house on the line if they’re wrong), or will you make an effort to independently research its market potential? Take the same approach to any financial data provided to you, regardless of whether it is from the franchisor for a new or an existing location. It is much better for you to critically analyse figures before committing to a franchise – and deciding against investing if they don’t add up – than to try and pick up the pieces later if the business sends you broke. In many cases, franchisors won’t provide any financial information at all because they don’t want to get sued for making a false representation. The absence of any financial data makes your assessment of the franchise offer more difficult, but not impossible. Rather than investing based on blind faith, undertake the research above, question existing and former franchisees about costs and sales (although expect some to be reluctant to share this with you), and then put together a business plan accordingly. Despite not providing financial data to new franchisees, many franchisors will

Ask any questions you need to satisfy yourself that not only do they have integrity, but that vision for the brand is one that includes a strong focus on long-term relationships with profitable franchisees to drive the brand’s success

require a business plan from the franchisee as part of the recruitment process. If your business plan is accepted by the franchisor it doesn’t always mean that it believes it to be realistic or achievable in your specific circumstances. In other words, the business plan is your vision for the business, not the franchisor’s, and you need to reality-check every part of it as you develop it, and then if you proceed with the franchise, refer to the plan as your daily road map to success. Investing in a franchise can be a great way to build wealth and prosperity for you and your family, but your vision for

what you want out of the business, and the franchisor’s vision for the brand needs to align sufficiently so that you get what you need from the relationship. If not, keep looking. n

Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for more than 25 years. He regularly conducts franchise education courses throughout Australia, including the highly popular one-day course Introduction to Franchising.

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Part of the $10 billion safety industry For further information visit appliancetaggingservices.com.au or contact Steve Wren +61 1300 287 669 steve@ats.com.au

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FRANCHISE BASICS

ASK THESE

QUESTIONS Now you’ve got some clarity about how the franchisor’s vision is crucial to your franchise investment, here are some key questions to pose that will take you on to the next level.

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GET PERSONAL

FRANCHISEE SUPPORT

Franchisors will ask you plenty of personal questions. Why not turn the tables and find out what their commitment is to the business? • What is your financial investment in the business? • Is this the only business you’re involved in? • What do you find the biggest challenge in franchising? • How would you define your management style? • What would franchisees say about your leadership?

Dig down into some details about who will be supporting you in business. • Who will be the main contact as a franchisee? • How long have the franchise field managers been in their roles? • Have any of the support team been franchisees themselves? • What experience does the marketing team have? • When was the last brand refresh? • How has the success of the brand refresh been measured? • What are your expectations of franchisees in terms of financial transparency? • How do you benchmark the franchisee network? • How do you help underperforming franchisees?

INVESTING IN THE FUTURE You’ve discovered the franchisor’s vision but how will it be achieved? • How are you keeping ahead of trends in the market? • What investment do you put into R&D? • What are the big challenges for the business in the next five years? • Do you plan to add new services? • How do you plan to increase the value of the brand?

franchisee complaints? • What steps are taken to redress difficult situations? • How often do franchise disagreements end up in formal disputes?

FRANCHISEE SELECTION Find out how the franchisor decides to appoint a franchisee. • What are the criteria used to select franchisees? • Who is involved in the decision making process? • What do you think are my strengths and weaknesses as a franchise candidate?

DEALING WITH DISPUTES Disagreements can be a common feature of franchising, but how they are handled is pertinent to the outcome. • What are the common causes of

WHY OUR FRANCHISEES LOVE BEING PART OF LA PORCHETTA • A proven profitable operation • A much loved and recognisable national brand • They’re part of our team of restaurant owners who love getting together and sharing ideas • We offer a flat fee structure that allows you to build your business faster • We are the largest Italian restaurant chain in Australia and New Zealand

Opportunities now available! Visit: www.laporchetta.com/franchising Email: franchising@laporchetta.com OR call (03) 9460 6700

ART-Franchise Business-HALF PAGE-02102017.indd 1MARCH/APRIL 2018 | 97 | WWW.FRANCHISEBUSINESS.COM.AU

3/10/2017 4:34:06 PM

FRANCHISE BASICS

JOINING THE

BRAND WAGON Are you brand agnostic or a brand ambassador? Put your passion in perspective before you sign up to your new future.

t’s important for franchisees to align themselves with the brand they invest in but it’s equally pertinent to approach the impending franchise relationship with realistic expectations.

Lots of franchisees come into their new business as customers, drawn by a passion for the brand and what it stands for. Others will discover the brand through industry research and come to appreciate its strengths and market position. Whether you are a card-carrying devotee or attracted by the business potential, ensuring you understand what lies underneath the brand name is crucial. Branding is about so much more than just the name on the coffee cup or the logo plastered over the van. Anna Jones, of 257 Consultancy and previously marketing manager with Guzman Y Gomez, explains “Branding goes

If a brand identity is strong, internal processes will align behind it and it will be translated through to a ‘moment of truth’, the moment a customer purchases

way beyond just the consumer facing elements. True branding starts at the top by having a clear vision and identity which then steers all business decisions. When brand identities are clear, they influence every internal decision from business strategy to product development and

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hiring practices. It’s this alignment which ultimately defines an organisation’s culture. “If a brand identity is strong, internal processes will align behind it and it will be translated through to a ‘moment of truth’, the moment a customer purchases. The ultimate goal is for every customer

FRANCHISE BASICS

who shops you to walk away from that experience understanding who you are as a brand, every time, every store and no matter what they buy. If that isn’t happening, it’s a clear sign that the business is not aligned. “Tom’s shoes is a great example of this. The brand has a clear vision around giving back to communities in need. The purpose drives every business decision from the products it makes, to the suppliers used and ultimately to the consumer touchpoints. As a customer, you know what it stands for and you feel proud to buy and wear the products knowing you are contributing to something greater.” Baybridge lawyer Marwan Kojok says the defining factor that has kept businesses growing is the strength and reputation of the brand. “Richard Branson, founder of Virgin Records and the Virgin brand, acknowledged this. He went on to state that the ‘way a company brands itself is everything – it will ultimately decide whether or not a business survives’. “It sounds drastic and most people would think, it’s my product or service that would dictate whether the business survives or not.

As a franchisee you are investing in that brand and if you are not fully aligned behind its values, culture and products, you will be constantly fighting against the franchisor which isn’t good for anyone involved.

“However there is merit to Bransons’ foresight; ultimately it’s the brand that people will emotionally connect to and whether you are buying an Apple or Samsung smartphone, it is the relationship that each of these brands have developed with their customers that has created this loyalty to the product,” says Kojok. Customers, and especially millennials, are more than ever likely to ditch a brand that displays sentiments or behaviours

that don’t fit with their expectations. And that isn’t just about product quality or a friendly face at the counter. Market research firm Euromonitor has listed one of the defining consumer trends for 2018 the ‘call-out culture’ [see page 10 for all the trends]. This is about consumers feeling empowered to bring their environmental, social and political views to bear on their shopping habits, and calling out on social-media those brands that stray

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Join a national franchise convenience store system that supports you every step of the way! Contact Trevor McIlveen today to find out what exciting new opportunities we have available – 0475 980 219 / trevor.mcilveen@nightowl.com.au MARCH/APRIL 2018 | 100 | WWW.FRANCHISEBUSINESS.COM.AU

from ideal corporate values. It’s not uncommon for brands to slip-up in their marketing messages: for instance, Boost Juice and its campaign Summer Warrior called out for cultural insensitivity or the sexually suggestive ad promoting Burger Urge burgers. And of course some brands court controversy as part of their DNA. Today’s consumers react not just on social media but by withdrawing their purchasing power from culprit brands. How a business responds to bad publicity and inappropriate behaviour actually becomes part of the brand identity. It’s the franchisor’s job to create a seamless brand identity. Jones says “You must make sure when looking to invest in a brand that there is not a disconnect from who it says it is, how it acts and what the customer experience is.” Jones says elements out of sync can often be a “big red flag” that there are other issues internally. So what’s the best way to gauge the power of the brand when researching the business? “Do people recognise a brand, either

by name, logo or by location?” Jones asks. “You must first know a brand exists before you can ever be a customer so the more that people are aware of the brand, the more potential it has. Also look at the current branding, good branding has consistent and recognisable assets like a logo, colour and store design.” “Speak to as many customers as you can because happy customers mean a strong brand. Head to the store and ask customers why they chose that brand over another and what their experience of a brand has been to date. Even speaking to friends and family about their perception of the company will give you a good indication,” she suggests. Franchisees can’t see themselves as separate from the brand, insists Jones. “You must fully align. As a franchisee you are investing in that brand and if you are not fully aligned behind its values, culture and products, you will be constantly fighting against the franchisor which isn’t good for anyone involved. If you don’t align, don’t buy in.” n

QUESTIONS TO ASK YOURSELF

Some considerations: • How does the franchisor treat the brand? • Is the brand closely tied to the founder’s personality? • Do you understand the brand’s DNA? • What is unique about the brand? • Is the brand consistent across all elements of the business? • Where does it sit in the marketplace? • Is the brand well set-up for the future? • Are customers brand-loyal or price-driven? • What do frontline staff say about the brand? • Does the brand have a strong, positive social media presence?

Better Service. Bigger Results.

Act now and move your business into the new year. A selection of space for your consideration

FOR LEASE

189 Acland St, St Kilda

93 Burwood Rd, Hawthorn

111 Canning St, North Melb

42 Barkly St, St Kilda

476 Centre Rd, Bentleigh

2/118 Chapel St, St Kilda

1272 High St, Armadale

108 Swan St, Richmond

1272 High St, Armadale

637 Camberwell Rd, Camberwell

2/457 Chapel St, South Yarra

LIAM RAFFERTY 0421 886 655

MAX WARREN 0488 296 892

52 Toorak Rd, South Yarra

Boundaries are indicative only

FRED NUCARA 0418 567 560

Level 1, 107-111 High St, Prahran MARCH/APRIL 2018 | 101 | WWW.FRANCHISEBUSINESS.COM.AU

BRENDAN BURMISTROW 0414 288 229

8532 2222

beller.com.au

FRANCHISE BASICS

HOW TO AVOID

FRANCHISE FAILS Take steps to know the business you sign up to. DR MICHAEL SCHAPER Australian Competition and Consumer Commision.

or many people, the allure of franchising is tempting when compared to the prospect, or reality, of a 9-to-5 job. You might just be one of those people spending your commute to work thinking about how you’d rather be strolling down the street to a (wildly successful) franchise that you can call your own. You may look at one of your favourite local franchises and think “What a life – be my own boss, set my own hours. This place is always busy – I’d make a fortune wouldn’t I?”

At the ACCC, we see many reports from people for whom the franchise dream has soured. While franchising can be a more appealing way to operate a business by benefiting from the experience and name recognition of an established franchise system, it’s important to take the emotion out of what is, essentially, a business decision. Purchasing a franchise is not a guarantee of success and it’s possible that you or your franchisor could fail during the term of your agreement. Franchisor failure could put you in a difficult position. For example, you may: • be unable to obtain stock

• •

lose your right to use the brand have to continue paying suppliers, landlords, employees and banks even if you can no longer operate your franchise. There are some key things you should think about before you jump headfirst in to the world of franchising.

DO YOUR DUE DILIGENCE Before you commit to a franchise opportunity, make sure you understand your rights and obligations under the Franchising Code.

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FRANCHISE BASICS

The Franchising Code is mandatory across Australia and regulates the conduct of franchising participants towards one another. It applies to all franchise agreements, including renewals, transfers or variations. Franchisors are required to give you certain documents before you enter into a franchise agreement or pay non-refundable money. One of the key documents you should receive is the franchisor’s current disclosure document. The disclosure document will contain important information about the franchisor and the franchise system, including operating costs and fees. Its purpose is to help you to make an informed decision about the business opportunity. When reviewing the disclosure document you should: • check the franchisor’s financial details and confirm that it is solvent • consider the business experience of the people running the franchise system • check whether the franchisor, any of its associates (or a director of the franchisor or associate of the franchisor) has been bankrupt or insolvent in the last 10 years • review the franchisor’s supply

arrangements, bearing in mind that restrictions on who you can source goods or services from may affect your bottom line. The disclosure document will also contain contact details of current and former franchisees. You should speak to as many current and former franchisees as you can to understand their relationship with the franchisor. Consider asking meaningful questions, even if they’re difficult, such as: • are/were they making the amount of money they expected? • how does/did the reality of the franchise match up against their expectations e.g. work hours etc.? • are/were they satisfied with the level of support provided by the franchisor? • if they knew then what they know now, would they have initially purchased the franchise? • if they exited the franchise system, why did they leave? Asking these questions from existing or past franchisees will provide you with information that may not be readily available in the documents provided to you by the franchisor. You should carefully review all of the

information provided to you to make sure you’re happy with the way the franchise system is functioning. It’s very important that you also seek independent legal, accounting and business advice from professionals with expertise in franchising.

KNOW THE FRANCHISE BUSINESS Although the Franchising Code requires franchisors to provide specific documents to you, it’s still important that you do your own research and investigate the franchise’s likely success, including its short-term and long-term viability. It’s a good idea to pay particular attention to the franchise’s position in the market. You need to think about the brand recognition and reputation of the franchise, the sustainability of the product or service (including likely consumer demand), as well as who your competitors are or could be, and their proximity to your prospective business territory. If your franchisor allocates you a territory, it may not be exclusive. This means that your franchisor or another franchisee could set up shop in the same

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territory and reduce the number of customers that walk through your door. Information about whether the franchisor or other franchisees can operate in your territory should be available in the franchisor’s disclosure document. You should also consider whether the proposed location or territory is suitable for the type of franchise you intend to operate. Look at the demographics and spending habits of consumers within the area. It’s also important to think about whether you would buy the products or services in the projected setting. Ask your friends and family the same question. If you wouldn’t buy the product you’re selling, how can you convince someone else to buy it?

GET ANY EARNINGS CLAIMS IN WRITING Franchisors are not required to provide you with earnings information but some choose to do so. Earnings information could take the form of historical data from other franchisees or projections about how much you could expect to earn. If the franchisor makes any claims about earnings you should ask about:

• the extent of enquiries and research undertaken • the period it has based the claim on • whether it has accounted for things such as interest, tax, salaries etc. You should ask the franchisor to confirm this in writing.

KNOW YOUR COOLING-OFF RIGHTS If you decide to go ahead and enter into a new franchise agreement, you can still choose to terminate within seven days of: • entering into the agreement (or an agreement to enter into the agreement), or • making any payment under the agreement. Exercising these cooling-off rights will entitle you to a refund of all your payments (less any reasonable expenses incurred by the franchisor), and the refund must be provided within 14 days.

START-UP CHECKLIST Here are some of the key steps you should take before committing to a franchise opportunity:

1. Ask yourself - is this an emotional or pragmatic decision? 2. Assess your skills, strengths and weaknesses. 3. Get professional advice from an accountant, lawyer and business expert. 4. Make sure you received the correct documents from the franchisor to help you make an informed decision. 5. Speak to current and former franchisees. 6. Do your own research. 7. If the deal is not acceptable, try to negotiate a better offer or look for a better deal. The ACCC has a range of education resources dedicated to educating business about its responsibilities under the Competition and Consumer Act. These are available at accc.gov.au, along with specialist franchise training at accc.gov.au/ ccaeducation. n

Dr Michael Schaper is the ACCC Deputy Chair. His special focus is on small business, franchising, industry associations and business liaison with the national competition and consumer protection regulator.

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Contact Christine Lau on (03) 9653 9203 or via email at Christine@laulegal.consulting for a confidential discussion to start or grow your business

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FRANCHISE BASICS

REASONS WHY YOU COULD BE THE PERFECT

FRANCHISEE It takes more than luck to be a franchise success.

he distinct advantage of investing in a franchise is that you can be a complete novice in your chosen sector and still have a good shot at making a success of running a business. A host of fellow franchisees and the franchisor team are available for tips and guidance on how to improve business and deal with particular challenges.

Your personal talents will come to play as you manage your business of course. What you need to bring to the partnership is the ability to do whatâ&#x20AC;&#x2122;s required to operate the business; to participate in the training thatâ&#x20AC;&#x2122;s provided, and to share best practice with others in the network.

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1. HONESTY It starts even before you sign up to a franchise, when you are going through the selection process with your franchisor. Outlining a true account of your personal circumstances and your financial commitments puts you on the right setting with the franchisor. You will be in a form of partnership with the franchisor so trust on both sides is fundamental to its success. That transparency with information will also pay off as you seek legal and accounting advice.

2. COMMITMENT As a franchisee you will need to exhibit as much commitment to the brand and your franchise as the franchisor does to the brand and the franchise network. It’s about inhabiting the brand values and displaying a dedication to making your business work, despite the upheavals, disappointments and frustrations that will inevitably cross your path. When times are tough you’ll need to know you can work through the obstacles; when the days are easy you’ll be motivated to turn up and show how well you and your team can perform. That’s what you expect from your franchisor, and that’s what is expected of a franchisee.

individuals driving each franchise. Some rules exist for health and safety reasons, others are just the process the franchisor has developed over time to be as efficient as possible. ‘Just follow the processes’ is a common tip from successful franchisees to would-be franchisees; adopting procedures by following the operations manual, adhering to the boundaries set in the franchise agreement, all adds up to a willingness to comply with the business ethos that you have signed up to as a franchisee.

4. CUSTOMER SERVICE Every single franchise relies on some customer service, and in industries where delivering customer satisfaction can be evaluated minute-by-minute (hospitality and retail for instance), it’s crucial. Franchisors increasingly seek franchisees who have the capacity to put the customer

first and create a team environment that engenders an enthusiasm for great service. It’s what distinguishes the first class operation from the average.

5. FINANCIAL UNDERSTANDING Again, this starts at the outset of the franchise relationship. Many franchisees don’t fully understand the language or concepts used by accountants and franchisors to explain the inner-workings of a franchise, how profit is achieved, and the impact of outgoings on the trading capacity of a business. Be that bold would-be franchisee who asks for a simpler explanation, who seeks to get to grips with the the business figures early on, and who understands the financial commitments involved. With confidence in the numbers, you’ll drive a more comfortable route to success. n

3. COMPLIANCE Why join a franchise and then do your own thing? It makes sense to follow the rules and regulations of a business model that has proved it can work in a variety of locations and with diverse

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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: 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.

COMPANY-OWNED UNITS:

locations run by the franchisor rather than a franchisee. CONVERSION: 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: an individual tasked with managing a group of franchisees, with a focus on relationships, brand 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.

FRANCHISEE ADVISORY COUNCIL: a structure for

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

FRANCHISE FEE: an up-front cost paid to the franchisor. It covers the use of the brand name and business system. FRANCHISING CODE OF CONDUCT: 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

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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.

GREENFIELD SITE: a

brand new site.

GOODWILL: this is a

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

INFORMATION STATEMENT:

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

percentage-based-fee paid into a centralised advertising or marketing fund.

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.

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.

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.

MULTI-UNIT FRANCHISEE:

TERRITORY: is the area assigned

MASTER FRANCHISEE: a

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 areas of the business, and should regularly update the information. REGIONAL FRANCHISEE:

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

term nears its end, franchisees may or may not be given a right to renew their agreement

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.

MAKE AN INQUIRY

CONDUCT DUE DILIGENCE

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 franchiseexperienced professionals can save you money in the long term, so it is a worthwhile investment.

FRANCHISOR RESPONDS 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.

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

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.

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

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.

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.

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.

CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR: : 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: 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 influential 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 INFORMATION OFFICER : 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 MARKETING OFFICER: 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 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.

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FRANCHISE BASICS

THINGS TO CHECK 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 ASIA-PACIFIC CENTRE FOR FRANCHISING EXCELLENCE

organisation or anyone involved in the franchise industry including franchisees.

A pre-entry franchise education program is available for free and online through this centre. Funded by the ACCC this course attempts to help franchisees understand the process of due diligence and have realistic expectations of what it means to be a franchisee.

Visit: WWW.FRANCHISE.ORG.AU

The Centre was launched by Griffith University in 2008 and undertakes research on franchising best practice. This research helps inform policy and team members regularly engage with government bodies and franchise associations across the Asia-Pacific.

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.

Visit: WWW.FRANCHISE.EDU.AU

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

FRANDATA

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

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

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

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Phone: 1300 562 283 Contact: Jason Kelly Franchising @1300locate.com.au www.1300locate.com.au Start up costs: Enquire

PROFILE: Over the 11 years in business, our success and longevity within the asset protection industry comes from our experience, and ability to work with an outstanding array of clients who continue to put their trust in us. Through ongoing improvement, upskilling and technology investment we remain current in an evolving market and by working closely with your clients you are able to tailor and adapt our solutions to best meet their changing needs. We therefore offer you an opportunity to join this leading Organisation as a franchise owner covering one or all discipline of Cable Location, Vacuum Excavation (NDD) or Pipe CCTV Survey. Franchise areas cover metropolitan and/or rural locations and have the ability for you to grow your business creating future stability.

Start up costs: $400,000 to $1,000,000 PROFILE: 7-Eleven is the largest convenience and independent petrol retailer in Australia with more than 650 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

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

Phone: 02 9415 5300 Contact: Jason Stubbings jason.stubbings@anytimefitness.com.au www.anytimefitness.com.au/own-a-gym/ Start up costs: Enquire

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

PROFILE: Australia’s biggest gym community, Anytime Fitness Australia has over 500,000 members and 480+ clubs nationwide. We’re the brand that brought the 24/7 concept to life, and cut-through app Anytime Workouts. We’re getting Australians moving for a fitter and healthier future.

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@ozskin.com www.australianskinclinics.com.au/franchise

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

Phone: 0409 720 063 Contact: Dean Lightfoot franchise@palmoasisventures.com www.baskinrobbins.com.au Start up costs: from $150,000 - $250,000

PROFILE: Baskin-Robbins® has been creating irresistible treats to make you smile and feel good inside and out for over 70 years. We’ve perfected the combination of delicious treats and a fun atmosphere. Now, we’re offering rewarding franchise opportunities that help aspiring business owners thrive and to continue to be the world’s leading chain of ice cream specialty restaurants If you love to have fun and put a smile on people’s faces; if you are hard-working, dedicated and community oriented; and in touch with your ‘ice cream side’; Baskin-Robbins® may be a perfect fit for you. Contact: franchise@palmoasisventures.com to scoop up your own Baskin-Robbins®. New sites available in QLD, NSW & VIC.

PROFILE: Australian Skin Clinics was founded in 1996, and is Australia’s leading skin and laser clinic. Since opening we have helped more than 65,000 people achieve their dreams and make them feel they look and feel the best they can about themselves. We have spent 18 years perfecting our skills, experience and systems to develop an easily replicable model, with the specific purpose of becoming an international franchise network. This has led to our story being one of rapid growth and achievement.

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

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Phone: 0419 494 480 Fax: 03 9439 5594 Contact: Rod Parker rparker@bedshed.com.au www.bedshed.com.au/franchising

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Phone: 03 8532 2222 Fax: 03 8532 2202 Contact: Fred Nucara info@bellerc.com.au www.beller.com.au PROFILE: Beller Commercial

PROFILE: Bedshed, one of Australia’s largest and most trusted bedding retailers, is continuing its expansion across the East Coast with further opportunities now available in Queensland, Victoria and New South Wales. We are looking for people who are passionate about customer service, managing a sales team, and want to work in their own business. You will have access to our accredited franchise model which has been perfected during our 30+ year history, along with the support of an established specialist team. Take the first step towards being rewarded with the financial and lifestyle benefits of owning a Bedshed Franchise by calling Rod Parker for a confidential chat. Read more at http://www.franchisebusiness.com.au/brands/ bedshed#tbO0B8QGRO75FLzq.99

Beller Commercial is one of Melbourne’s largest, INDEPENDENT Australian owned Commercial Real Estate Agencies that has been servicing Clients for OVER 40 YEARS. From humble beginnings our business has evolved to provide specialised Commercial Property Services in: Property Management “Preserve rental income and grow your portfolio” Leasing “Source reliable tenants and negotiate rents for optimum investment performance” Sales “Recommend the best strategies to negotiate the maximum price” Additional direction can also be provided to Clients in the areas of Property Acquisition, Market Rent Assessments, Valuations, Finance and Project/ Developments.

Phone:03 9508 4409 Fax: 03 9508 4499 Contact: Caitlin O’Connor caitlin.oconnor@retailzoo.com.au www.boostjuice.com.au

Phone: +61 8 8267 2144 Contact: Andrew aphillips@focalpointintl.com www.focalpointintl.com Start up costs from: $59,950 + GST

Start up costs: $280k - $350k + GST 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 480 stores across the globe.

PROFILE: Listing Profile The name Brian Tracy is synonymous with personal and professional success. Our excellent reputation and highly-regarded programs are unrivalled and will give you brand credibility, prestige and trust in your business community.

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!

FocalPoint is the franchise arm of Brian Tracy Global. We are searching for high-calibre individuals who are self-motivated thinkers, looking for a business opportunity beyond the generic franchise. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find about more about the FocalPoint franchise.

Phone: 0412 858 967 Contact: Joe Cirillo j.cirillo@lightingandceramics.com.au www.lightingandceramics.com.au/franchise/

Phone: 1300 659 676 Fax: 1300 659 675 Contact: Dan Toms customerservice@cashflowit.com.au www.cashflowit.com.au PROFILE: Cashflow It are the franchise finance experts. With competitive rates and flexible terms from 12 months to 5 years, Cashflow It can provide the funding that franchisors and franchisees need today. We offer flexible rental solutions, traditional leasing and business loans tailored to your requirements. What can we Fund - New equipment / Used equipment / Fit-outs / Store refurbishments / Re-financing from other lenders / Buying an existing franchise / National equipment roll-outs

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Start up costs: $350,000.00 PROFILE: Cirillo Lighting and Ceramics with its 40 years of experience offers franchisees a one-stop shop model that combines tiles, lighting, bathroom ware, kitchen appliances, tap ware, door furniture and interior design services for a range of budgets. Cirillo’s proven model provides franchisees with a diversified and exclusive product offering capable of maximising return on investment and building capital for themselves and their families. Cirillo also provides support with site location, leasing, store design and setup and a full retail marketing program. Building industry experience is not required as full training and support is provided.

Franchise Accreditation - If you belong to a Cashflow It Accredited Franchise system, you can enjoy pre-approval and other exclusive benefits.

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

Phone: 1300 131 888 Contact: Hannah Giang Email: franchise.recruitment@dominos.com.au Web: www.dominosfranchise.com.au Start up costs: $480,000 - $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. 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.

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Phone: 03 9336 3200 Fax: 03 9336 3266 Contact: Peter Collins franchising@fergusonplarre.com.au www.fergusonplarre.com.au

Phone: 1300 852 556 or 0438 801 575 Contact: Andrew Roberts Andrew.roberts@fifocapital.com.au www.fifocapital.com.au Start up costs: Franchise $49,500 or Investor $15,000

Start up costs: $250,000 - $350,000 PROFILE: 2017’s #1 Food Franchise (TopFranchise Awards 2017) Ferguson Plarre Bakehouse recently celebrated 116 years of baking award winning pies, cakes and tiddly oggies. Ferguson Plarre Bakehouses are still a family owned and operated business with the 5th generation of the Plarre family still actively involved in managing the day to day running of the business from baking, through to retail shop design, operations and bakery franchising. The Family continue to embrace their forefather’s commitment to quality products, service and innovation. With no Royalties or Marketing fees, freshly baked products delivered daily to your store and no baking required, the business is perfect for anyone with passion and a small business dream.

PROFILE: Fifo Capital provides cash flow assistance to Australian businesses large and small whilst giving a great lifestyle, excellent returns and an enviable work/life balance to its franchisees. With over 10 years experience servicing the market and the recent release of our new Supply Chain Finance product you could not look at Fifo Capital at a better time. No experience necessary as full training and ongoing support is provided. Below are some of the benefits our partners enjoy as members of the Fifo Capital Network • • • •

ROI of 50+% annualised* Backed by insurance Work your own hours, very low overheads Highly scalable operation

• • •

Backed by the biggest and most successful business finance franchisors in the country. Multiple income streams Investor options available

Phone: 08 6169 2700 Contact: Robbie Damjanovic franchise@freshii.com.au www.freshii.com.au/franchising

Phone: 03 9653 7440 Contact: Dana Vinen franchise-au@firstindex.com Partners.firstindex.com Start up costs: $100,000* PROFILE: First Index is a fully regulated global financial services company now offering franchise opportunities, in select locales throughout Australia. The mission is to transform the trading industry by providing all Australians a new and better way of investing in a range of financial products and services, including shares, commodities, CFD’s and indexes. First Index are going beyond the offering of the typical unreliable and sometimes unregulated online trading companies, to provide your clients with a branch based model that provides the very best trading technology with unrivalled levels of service, education and expertise.

PROFILE:

Start up costs: Investment levels: $160,000 - $300,000 dependant on size and location Capital investment: Financing options available from 0% deposit (subject to approval)

Join the world’s fastest growing franchise! If you’re passionate about food that’s fresh, healthy, delicious and affordable, and you’d like to be part of a unique and fun global brand, then join the Freshii revolution! Freshii is one of the most exciting and fast growing new franchises in Australia, with opportunities available now in prime CBD and urban locations across the country. • Low fees and royalties • Fixed marketing fees • Flexible supplier agreements

• Uncapped earning potential • No experience necessary – we provide training, marketing and site development support

Ready to be your own boss and join an international and socially conscious brand? Visit Freshii Australia today at www.freshii.com.au/franchising * T&C’s apply. All applicants will be reviewed on an individual basis.

Phone: 02 8845 0100 Contact: Franchise Development Manager franchise@gelatissimo.com.au www.gelatissimo.com.au

Phone: 03 9234 2200 Fax: 03 9234 2266 Contact: Mark Crapper franchising@hairhousewarehouse.com.au Hairhousefranchising.com.au

Start up costs from: $280,000

Start up costs from: $350k + PROFILE: Australia’s leading gelato franchise is looking for outstanding franchisees. Prior food experience is not necessary however franchisees must have passion for the system and brand, leadership skills, and enthusiasm for delivering quality products through excellent customer service. Multi award winning Gelatissimo provides full training and on-going support from dedicated operational, marketing and development teams enabling them to produce artisan gelato fresh in store using a simple and proven system.

PROFILE: With over 20 years of experience in the hair and beauty industry, Hairhouse Warehouse is one of Australia’s leading retail franchise brands. Hairhouse Warehouse’s vision is clear and simple. Offer quality products at a reasonable price, whilst providing exceptional customer service. This mission is clearly on display in each and every one of our locations by simply looking at our franchisees and the teams they work with. As a franchisee, no hair or beauty certification is required - just a passion for success.

A-Z As Hairhouse Warehouse continues to dominate the hair and beauty industry in Australia, the brand and franchisees are seeing amazing results. To continue our brand domination Hairhouse Warehouse is planning to expand to over 180 stores over the next three years.

Contact: Keith Knapp info@ibeconnect.com ibeconnect.com Start up costs: $10,000 PROFILE: IBE Connect is your first choice in expanding your business to the United States. Our successful model has helped franchises of multiple industries expand by helping get their products and services compatible with the US Market. By partnering with IBE Connect we connect you with the best tools, resources and connections that specialize in working with businesses coming into the US. Connections such as national distribution networks, legal representation, accounting, media networks, and much more. Visit us online at IBEConnect.com to find out more.

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

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

Phone: 1800 220 643 Contact: David Wilkinson sales.au@inxpress.com inxpress.com.au inxpress.com.au/franchising

A-Z LISTINGS

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: 03 9460 6700 Contact: Brendan Flanagan franchising@laporchetta.com www.laporchetta.com

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

Start up costs: $300,000 +

Start up costs: Circa ($100k) PROFILE:

PROFILE: La Porchetta are the market leaders in cooking quality, Italian food with fresh ingredients. The first La Porchetta restaurant opened in 1985 in Melbourne’s inner city Italian hub. It soon became renowned as a special place to experience delicious food, warm hospitality and a passion for life. La Porchetta is now looking to expand their network of Franchises throughout Australia and New Zealand. Purchasing a La Porchetta Franchise provides a fantastic opportunity to own your own hospitality business is a successful franchised network.

Lock & Roll is a specialist window and door repair, maintenance & upgrade service for domestic and commercial property owners and managers. Our services include: • Repairs to hinged doors, sliding doors & bi-fold doors • Aluminium and timber door and window repairs • Window security • Door security • Installation of Door & Window accessories • We also have Australia’s largest range of window and door parts Our experienced technicians operate in the Sydney area and aim to complete most door repairs and window repairs in one visit.

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

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

Start up costs: $375,000 to $550,000

PROFILE:

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!

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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

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: 02 9415 5300 Contact: info@collectivewellnessgroup.com.au Start up costs: Enquire

PROFILE: Taking care of yourself shouldn’t be a luxury. Massage Envy Australia offers great value membership to rejuvenating massage, stretch and facial sessions that help you to feel your best. If you want less stress, more energy and improved wellness, it all starts with treating your body right.

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4. 5. 6. 7. 8.

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

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

Phone: 07 3088 1200 Fax: 07 3088 1212 Contact: Trevor Mcilveen trevor.mcilveen@nightowl.com.au www.nightowl.com.au

Start up costs: From $199,000 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. 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.

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, New South Wales and West Australia. 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: 0413 546 565 Fax: 8 5095 456 Contact: Marc franchise@nirvanabeauty.com.au www.nirvanabeauty.com.au

Phone: (07) 3625 400 Contact: Ralph Marks franchising@novusautoglass.com.au www.novusautoglass.com.a Start up costs: $40,000

Start up costs: $250,000 - $550,000 PROFILE: Having conquered some of the latest beauty treatments and technologies, Nirvana Beauty Laser Clinics presents a huge investment opportunity for people wishing to enter an industry with enormous potential. 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.

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

PROFILE: Novus Glass invented Windscreen Repair Technology. A Novus Glass franchise enables you to go into business for yourself, but not by yourself. Novus Glass is an international brand with over 55 locally owned and operated franchise territories across Australia. Novus Glass also replace windscreens and all other auto glass components. Novus Glass offers a complete franchise package covering everything from initial Technical Training through to Ongoing Marketing and Operational support. Novus also offers its franchisees access to its unique patented products, equipment and specialty resins. Enquire today about owning your own Novus Glass franchise – The Clear Choice for Windscreen Repair and Replacement.

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

Phone: 02 9415 5300 Contact: info@collectivewellnessgroup.com.au Start up costs: Enquire

Start up costs: From $97,000 + GST + Van

PROFILE: A one-of-a-kind personal training workout, Orangetheory Fitness is all about keeping you fit, healthy and ready for anything. Backed by science, heart rate monitors are worn throughout the one-hour session, making sure you stay at the optimum metabolic rates.

Phone: 1800 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@questapartments.com.au www.questfranchise.com.au Start up costs: $750,000 upwards PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of 150 franchised properties across Australia, New Zealand and Fiji. For 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.

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.

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

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Phone: 1300 729 900 Contact: Gary Glen franchising@schnitz.com.au www.schnitz.com.au

Phone: 1300 4 REDCAT (1300 473 322) Contact: Lawrence Pelletier hello@redcat.com.au www.redcat.com.au

A-Z LISTINGS

PROFILE: Redcat POS is an integrated end-to-end Australian-based hospitality solution, including round the clock local support, designed for the rigours of hospitality. Our system gives you the information you need to grow your business, without having to be an IT expert. From head office to store - hassle-free IT, leaving you free to do what you’re good at – offering great food, drink and service to your customers. Redcat’s end-to-end point of sale, accounting and business management solutions give users total control of their business. Our customers include some of Australia’s best-known franchises, restaurants and cafés. Redcat Polygon is an integrated software and hardware solution that manages sales, staff, stock, payroll, accounts, inventory, online ordering, smartphone apps, and customer loyalty. Polygon includes web based multi-site reporting, to provide a complete business management system. Our 3rd party integrations round out the solution, covering everything from accounting to rostering.

Start up costs: $500k +

PROFILE: We all know the smell of home cooking. The recipe might be different for each of us, but the feeling of experiencing something that’s been made with love and care never leaves us, and brings us back to the table time and time again. Our mission is to extract that feeling via the crumbed goodness of a lovingly prepared Schnitzel. At Schnitz, we’re a franchise family obsessed with schnitzel. To this day each and every schnitzel is obsessively made by hand with fresh, locally sourced, quality ingredients, and crumbed then pan cooked and never (ever) deep fried. It’s food made the right way not the easy way. We’re proud to share the happiness that only a schnitzel cooked with passion can bring.

Phone: 07 54 784 014 Fax: 07 54 777 133 Contact: Leigh Wallis leigh@smithandsonshq.com www.smith-sons.com.au

Phone: 1800 762 766 sota.franchise@snapon.com www.snapontools.com.au Start up costs: from $55,000

Start up costs: $50,000 - $80,000 PROFILE: We aim to make the world a better place – better businesses mean better families and better communities. Our happy, profitable franchisees own and run their own professional renovation businesses utilising the systems, tools and resources we provide. Smith & Sons is committed to seeing each of our franchisees and master franchisees reach their business and personal goals.

PROFILE: Snap-on Tools is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers and technicians across the country. Snap-on Tools Australia & NZ is a wholly owned subsidiary of Snap-on Inc., a developer and manufacturer of innovative and technologically advanced tools with over 4,500 franchisees worldwide. After 30 years in the Australian market, Snap-on Tools continues to grow with an increasing number of franchisees reaching the million dollar club, and new growth opportunities available for existing franchisees such as sales assistants, multi-units and specialised tool storage and diagnostic sales programs. Initial training occurs in Dallas, USA and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.

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

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

PROFILE: Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 8 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.

• 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.

A-Z 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.

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

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

Phone: 1300 372 300 Contact: David Thomson Franchises@sportstaracademy.com www.sportstaracademy.com Start up costs: Starting From $25,000 PROFILE: Sport Star Academy (SSA) believe “Champions are made, not born” and see the potential in every child. Through sport, SSA empower kids to believe in themselves and nurture a love of sport through focused attention, dedication and simply having fun. SSA is the number one provider of skill based sport programs, providing weekly sessions to over 5000 children nationally. Football Star Academy (Soccer division) was awarded “Franchise Business of the Year” in the 2017 Optus My Business Awards. Choose your franchise from the following options: Rugby, Netball, Footy (AFL), Football, Basketball, Cricket, Golf, Tennis, Sport Star Performance and Soccer Time Kids.

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Phone: 02 4957 4230 Contact: Franchise Development Manager jarrod@goodfeet.com.au www.goodfeet.com.au

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos nicka@cheesecake.com.au www.cheesecake.com.au

Start up costs from: $150,000 to $250,000

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.

PROFILE: The Good Feet Store Australia and New Zealand franchise is looking for outstanding franchisees. The ideal candidate should have solid business or retail experience, with strong management skills and business ethics. Candidates should have a customer service mentality, with the desire to enhance the quality of our customers’ lives. Benefits of a Good Feet Store Franchise * Serves the needs of a large and broad market: people searching for relief of foot, knee, hip, and back pain * A category leader with few direct competitors * Attractive unit level economics: a proven model, The Good Feet Store is designed to generate some of the highest sales per square foot in the industry * Comprehensive branding and marketing: campaign materials and support – broadcast, in-store, online and collateral *The Good Feet Store provides full training and on-going support

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

Phone: 03 9645 4798 Contact: Brad Dekkers franchise@sportingglobe.com.au www.sportingglobe.com.au/franchise

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

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!

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.

Phone: 0414 669 101 Contact: Stephen Spitz stephen.spitz@xpressodelight.com.au www.xpressodelight.com.au

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

Start up costs from: $49,500 + GST 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.

Inside Franchise Business is your essential guide to buying franchise join us online now at www.franchisebusiness.com.au

PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded! This pent up demand for gourmet coffee in the workplace is very poorly met. Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees.

A-Z This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

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

IS FRANCHISING A FLAWED BUSINESS MODEL? What do the faults and failures in franchise chains amount to in the franchise sector overall? ANDREW TERRY Professor of Business Regulation University of Sydney Business School

decade ago John Rau, today the Deputy Premier of South Australia, commented that “in a perfect world we would not have franchises at all because I think they are nonsense’. Rau’s argument was, essentially, that it is the franchisees who bear most of the risk and that when their capacity to absorb the risk is exhausted they will be replaced by somebody else “until such time that there are no fools left in the queue”. The reality of course is that the scenario described by Rau is not an accurate description of franchising as it is practised by the 1000+ franchise systems in Australia. Franchising could not survive, let alone thrive as it so obviously has, and deliver its well documented economic, commercial and social benefits, in such circumstances. A number of well publicised scandals within the sector over the last few years has nevertheless adversely impacted on the reputation of franchising. The practices within particular systems including 7-Eleven, Caltex, Domino’s and Retail Food Group have received massive media attention - attention reminiscent of that two decades earlier when sustained commentary on the considerable economic and social costs of inappropriate franchising practices led to the introduction of a comprehensive and sophisticated regulatory regime for franchising in the form of the Franchising Code of Conduct and the prohibition of unconscionable conduct in business transactions. Today’s franchisees have the benefit of a

regulatory environment that provides them with real and significant protection through combatting the information and power imbalance, and the resulting opportunity for opportunistic conduct, inherent in the typical franchising relationship. The protection granted by the Franchising Code of Conduct as well as under the general law has been continually expanded over the last two decades. That the well-publicised problems continue in the face of the world’s most stringent regulatory regime for franchising makes it legitimate to consider whether the franchised business model is flawed. Are franchises indeed nonsense?

DISAPPOINTING The scandals that have received so much attention relate to only a limited number of franchise systems. This of course provides little comfort to those affected within these particular systems - but some comfort can be taken that these are not generic problems and issues and that the vast majority of franchise systems, and the franchisees within them, are not affected. It is of course massively disappointing that those systems which have attracted most attention are among our largest and most established and most prominent systems who should be leading the sector by their good example. It is nevertheless pleasing - and of course appropriate - that in all cases problems have been acknowledged, the need for remedial action accepted, and practices improved.

Given the longevity of, and the interdependency within, the franchisor/ franchisee relationship, franchising is frequently referred to as a ‘commercial marriage”. That between a third and a half of all marriages end in divorce is of course a very sad statistic but does this lead to the conclusion that marriage is a flawed and wretched institution?

A COMMERCIAL MARRIAGE Marriage may not be for everyone. The institution of marriage may need to change. The attitudes and practices of those in a marriage may need to evolve from how it has been. There are similarities with franchising. Neither model is flawed. Both models are works in progress. It is not intended to trivialise or discount the pain of a failed franchisee to point out that a free enterprise system cannot guarantee business success. Entrepreneurship inevitably involves risk. Australia’s regulatory framework goes further than any other country in seeking to remove risks to the franchisee arising from the imbalance of power and information inherent in the franchisor/franchisee relationship while leaving business risks for the parties themselves. Franchisors who disregard their legal obligations deserve the appropriately harsh legal consequences and the franchisor lobby has no interest in supporting recalcitrant franchisors who damage not only franchisees but the reputation of the franchise sector. But the best protection for franchisees remains education, informed due diligence, and specialist advice. 

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SUCCESS

Domino’s invites like-minded entrepreneurs to join our solid and established brand as we pave the way to success. Be a part of our success story and create your legacy now! head to:

www.dominosfranchise.com.au/applynow

OpenIng new restaurants in brisbane, melbOurne and perth Weâ&#x20AC;&#x2122;re spreading our love of Flame Grilled Portuguese Chicken and are looking for customer centric, business minded Franchise Partners to join our familia.

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