Inside Franchise Business May/July 2019

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

MAY/JULY 2019

ISSUE 32 VOL2

BE YOUR OWN

BOSS How 4 young dynamos made it happen

BUN FIGHT

NO EXPERIENCE REQUIRED!

Battle of the burger chains

Novice-friendly franchises to snap up now

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30 BRILLIANT QUESTIONS TO ASK YOUR FRANCHISOR

Be the

LEADER OF YOUR OWN SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous.

A 7-Eleven franchise is a partnership in success.

When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation.

From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment.

We set up shop for you and give you full training

We take payroll admin off your hands and help with the book-keeping

We deal with suppliers to get you the best products

We manage the fuel

We have brands you won’t find anywhere else

We provide advertising and promotional support

START YOUR SUCCESS STORY TODAY

I have been a 7-Eleven franchisee for over two years. My husband Robert Saleh and I operate a busy fuel site in a growing area.

Working with our Retail Business Manager, we’ve continually grown our store since it opened, and we now serve about 1700 customers a day. It’s great to see so many customers have become regulars who visit us every day for food on the go. Coffee and fresh food are really popular with our customers, we sell more than 300+ coffees a day and 75+ sandwiches and we’re building overall sales.

As a leader, I am passionate about mentoring and coaching my team to go the extra mile, while living our core values. My team are key to ensuring our business continues to grow.

I have a laugh with my customers all the time and this maintains a friendly and easy-going environment.

I have built a great relationship with our customers that I have grown to love like family. Being part of our community, and being present in it is really important to me. The best part about being a franchisee is the community and my customers.

GENEVIEVE SALEH

Franchisee, Carrara South – QLD

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

The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees. 7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits.

Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.

Contact Details Franchise Development Managers Brett Reading Queensland E-Mail: bzr@7eleven.com.au Mobile: 0407 877 674

Peter O’Hara Victoria / Western Australia E-Mail: pwo@7eleven.com.au Mobile: 0408 175 534

www.7elevenfranchise.com.au

Shayne Boogaard New South Wales E-Mail: szh@7eleven.com.au Mobile: 0418 136 156

FRANCHISING

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CONTENTS

REGULARS

LEADERSHIP

11 EDITORIAL 12 GLOBAL EYE 16 INSIGHTS 148 GLOSSARY 150 BUYING PROCESS 151 INFLUENCERS 152 CHECKLIST 153 RESOURCES

20 FUN-TASTIC FRANCHISES

SPECIAL FEATURE 61 NO EXPERIENCE REQUIRED!

These eight brands make it easy to change careers.

Business options with a built-in fun factor.

Former Macca’s corporates bought into the brand.

24 THE WHOLE HOG

Home-grown steakhouse notches up 30 years.

28 SHAKEN AND STIRRED

Cocktails and dessert bar unveils its franchise model.

What’s happening in the hairdressing sector?

80 THE AGE FACTOR

Stay at home care options.

84 VROOM TO MOVE

Auto services are staying in the fast lane.

88 OUT OF THE RAT RACE

New opportunities for career corporates.

92 DISCOVERY DAY

Visit the Brisbane Franchising expo.

94 NORTHERN EXPOSURE

Hot property trends in Queensland.

102 IT GOES WITH THE TERRITORY

48 ARMY MANOUVRES

How one veteran changed his lifestyle.

51 DREAMS COME TRUE

Beauty salon franchise helps bring ambitions to life.

34 QUEST FOR FUTURE SUCCESS

58 DAY IN THE LIFE OF…

The lawyer who ditched legals for being his own boss.

104 THE BIG 30

77 A CUT ABOVE

New looks for two established chains.

54 NEWBIE BRANDS TO SNAP UP

Former Olympian’s success with Studio Pilates.

66 BATTLE OF THE BUNS

Snapshot of chains that serve fresh food with zest.

47 FRESH FACED

32 A WINTER BURN

FRANCHISE BASICS

72 CHILLI BUSINESS

Four brilliant tales of millennial entrepreneurship.

44 SUPERSIZED SUPPORT

SPOTLIGHT Will hipster burgers change the business for good?

36 COVER STORY

Crucial questions to ask franchisors.

109 FOR YOUR EYES

The documents you must read before you buy.

111 WHAT ARE MY LEGAL LIABILITIES?

The laws you’ll need to follow as a franchisee.

114 HOW TO GET THE BEST DEAL

Everyone loves a new concept packed with potential.

Julie Pateman, Oporto

130

NETWORKING WORKS

Award-winning franchisee shares her tips.

136 TURN YOUR STAFF INTO SUPERSTARS

Ensure your team members become top performers.

140 ON YOUR GAME

Four risk-reducing steps from the ACCC.

Legal tips on what can be negotiated.

146

How to check the viability of your chosen franchise.

Perspective from the Franchise Council of Australia CEO.

118 CASHFLOW IN BUSINESS 122 IS YOUR FRANCHISE VALUE FOR MONEY?

Working out if the investment will be worthwhile.

127 DO YOUR OWN MARKETING

Franchisees have to play their part in brand promotion.

Five ways to spot a right-sized territory.

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HELPING FRANCHISE BUSINESSES EVOLVE

147 WHAT IS THE CODE OF CONDUCT? A snapshot of the mandatory industry code.

162

MYTH BUSTER

My franchisor can tell me everything I need to know.

BUILD YOUR FUTURE WITH A RETAIL ICON

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

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

Our franchisees benefit from: •

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

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

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

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

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EDITORIAL

Delivering on a promise Franchise change is needed but potential franchisees must do their bit too How far along are you in your search for a franchise? Perhaps you’re poised to sign up to your dream business. Perhaps you have just started to think about the opportunities that investing in a franchise could give you.

Buying a franchise is a major commitment - very often a major financial investment too.

It isn’t something to be taken lightly, and that’s why at Inside Franchise Business we are so keen to emphasise the importance of research before you buy.

A successful franchise provides a good income for the franchisee and their family.

It may also allow flexibility to manage their lifestyles to suit; it will deliver plenty of highs and some lows and it will push franchisees to achieve their goals.

A franchisee and an independent business owner have the same responsibilities; a franchisee however is given a head start to business success with the existence of a business format, marketing, branding, training, admin tools, uniform...the list goes on.

If you pick the right franchise - and there’s no one-size-fits-all, this is a personal choice - you will gain a competitive edge.

So it’s absolutely crucial to ensure that the business you select will deliver what you expect, that you and the franchisor both understand each other’s expectations, and that your expectations are reasonable.

In the high profile parliamentary inquiry last year it was apparent that mismatched expectations, lack of due diligence and frankly, some very poor franchisor behaviour, led to franchise failure.

You can read a quick overview of the report findings (published in February) on page 16.

While on the one hand franchisors must now make some changes and develop greater transparency, franchise buyers too must commit to properly investigating the business opportunity that interests them.

The franchisor will provide a heap of information.

But should franchisees look elsewhere for more? In this edition of Inside Franchise Business one franchisee shares her experience in researching a franchise: Can a franchisor tell me everything I need to know? This is part of our Myth Busters series.

This issue also features legal advice about due diligence and documentation and expert insights on getting a good deal.

Our Franchise Basics includes top tips for the early days of business ownership: cashflow, marketing, networking and boosting staff performance.

And of course there are inspirational stories from successful franchisees and franchisor tales of business growth and development.

Sar a h Sarah Stowe Editor

EDITOR

SENIOR ACCOUNT MANAGER

SUB-EDITOR

Marketing & sales co-ordinator

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

Karen Gee

JOURNALIST

Nick Hall P: 02 8224 8355 nickhall@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

GRAPHIC DESIGN

OCTOMedia

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

Rozelle Carlos rozelle.c@octomedia.com.au

GENERAL MANAGER

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

Inside Franchise Business is the FCA media partner and official online directory Confirmed distribution of Feb/Apr 2019 issue 5,810 - Print Post 100008121

MAY/JULY 2019 | 11 | WWW.FRANCHISEBUSINESS.COM.AU

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

GLOBAL EYE

HEADLINE

FRANCHISES

Food, fitness and retail chains dominate the news with expansion, buy-outs, buy-ins and new tech.

MCDONALD’S $500M EXPANSION

McDonald’s Australia is preparing to spend more than $500m on expansion efforts across the country, including plans to bolster its representation in regional areas.

The plan is expected to take three years, with the ‘golden arches’ committing to a $350m investment that will see the launch of 45 new restaurants in the prime retail hubs of Melbourne and Sydney.

The investment will bring McDonald’s total number of Australian outlets above 1000 for the first time with the chain eager to develop its growing number of freestanding locations.

Josh Bannister, McDonald’s senior development director said the brand’s aggressive nation-wide expansion announcement comes off the back of prolonged network success, and serves as a key component of McDonald’s growth strategy.

“McDonald’s has opened more than 100 restaurants around the country in the last seven years, and we plan to invest approximately $500 million in new restaurants and refurbishments over the next three years, including up to $200 million in NSW,” Bannister said.

“These new restaurants will be in both metro and regional areas, with a large focus

on key growth corridors in each state.

“Our core business is freestanding restaurants with drive through, however we are able to adapt in a number of different ways to ensure we can continue to grow. This includes integration with mixed use development, highway service centres and smaller format retail sites in CBDs and premium railway stations.”

McDonald’s venture into regional areas is also likely to bolster the brand’s profits, with new reports from the Australian government suggesting sub-regional areas present a rapidly growing fast-food consumer market.

SUSHI SUSHI BUY OUT

Sushi Sushi is selling a majority share in its business to Odyssey Private Equity and the management team, led by CEO Scott Meneilly.

Meneilly said “We are looking forward to working with Odyssey to grow the business and capitalise on the many opportunities that are available to us.

Our recently opened wholesale division has exceeded our expectations and is a fantastic addition to our brand, as will be our first store in NZ which opens in May, followed by our NSW store openings later this year.”

Paul Readdy , Odyssey Private Equity partner, said “The growth in demand for sushi and Japanese inspired food more generally, is being driven by consumers’ demand for healthy and convenient meals.

We believe that Sushi Sushi’s commitment to innovation, consumer experience and quality food will continue to fuel the company’s growth”.

Sushi Sushi is a vertically integrated food business. It has an office in Tokyo, warehouses and a fleet of trucks in Western Australia, Queensland and Victoria.

It distributes product through a network of company owned stores, franchisees and

commercial sales channels. Sushi Sushi will grow its own store network through a variety of flexible formats across the country.

The sushi chain is also targeting 30 store openings in New Zealand.

ANYTIME FITNESS PARTNERS WITH RUOK? Gym chain Anytime Fitness and R U OK? have partnered to help with suicide prevention. The franchise network will support the work of R U OK? through its annual fundraising challenge, Tread As One. The 500-strong franchise chain first held the 24-hour fundraising treadmill challenge in 2017. This sees the clubs keep one or more of their treadmills running for a full 24 hours, whilst participants receive donations for every 15-minute slot they complete on the treadmill.

Anytime Fitness general manager Gordon Martin said “We are proud to play such an important role in the lives of Aussies and continue to do so with the Tread As One initiative and R U OK?.”

The charity encourages people to hold meaningful conversations with those around them and ask ‘Are you OK?’. Peerto-peer support can save lives and R U OK? works to equip people with the skills and confidence to navigate a conversation when someone says, “No, I’m not OK.” Since 2017, Anytime Fitness has raised more than $800,000 for mental health charities.

THE ATHLETE’S FOOT HIGH TECH FLAGSHIP UNVEILED Performance footwear retailer The Athlete’s Foot opened a new flagship in Melbourne Central with an expanded product line and new technology to better suit product to customers’ needs.

MAY/JULY 2019 | 12 | WWW.FRANCHISEBUSINESS.COM.AU

GLOBAL EYE

F45 Training,” said CEO Rob Deutsch.

The franchise chain has grown from a single studio in 2012 to more than 1500 studios across 40 countries.

MAD MEX APPOINTMENT

The Athlete’s Foot flagship F45 Training CEO Rob Deutsch with Mark Wahlberg

The Athlete’s Foot has new MyFit3D measurement technology, which creates a 3D render of a customer’s feet and measures their gait and pressure points within 1mm.

General manager Steve Cohen said “People like hearing about themselves, so when you put them on the MyFit3D and you show them how long, or wide, or deep their foot is compared to the rest of the population, it’s a nice interactive way to engage with the customer.”

The store also features LED screens that react to consumer behaviour; for instance, by displaying information about a particular shoe after the customer picks it up off the shelf. “The main thing is that we can be a lot more nimble in our messaging to the consumer [about] our new arrivals, or product or brand that we want to call out in store,” Cohen said.

“It’s touch screen as well, so if we decide to go down the path of shopping online or engaging with the consumer from a people point of view we can do that.”

MyFit3D technology is due to be in all 140 stores in the coming nine months.

At least 12 stores are to be opened across Australia and New Zealand over the following year.

RETAIL FOOD GROUP

Retail Food Group’s sale talks with a potential buyer of its Donut King, Pizza Capers and Crust businesses have ended in disappointment, following months of negotiations.

The deal fell through after the two parties failed to reach a formal binding

agreement on terms that the board considered to be in the best interests of the company as a whole, RFG said in a statement.

“Our Donut King and QSR brands [Pizza Capers and Crust] continue to provide solid earnings contributing to the company’s underlying profit,” Peter George, executive chairman of RFG, said.

“The potential sale of any of these assets must be at a price not only acceptable to our board but in the best interests of our shareholders.”

The franchisor, which also operates Gloria Jean’s Coffees, Brumby’s Bakeries, Donut King, Michel’s Patisserie, Di Bella Coffee, The Coffee Guy and Café2U, had been pursuing an asset sale to help pay down its net debt of roughly $258.9 million, after restructuring costs and write-downs wiped out its declining profit. The company made $111.1m loss for its first half 2019 financial year.

An RFG spokesperson said the failure to sell its Donut King and QSR brands will not impact the company’s recent agreement with NAB and Westpac to reset its financial covenants and waive a review of the business.

The RFG board is investigating a range of other options to pay down its debt, including equity, other debt funding options and potential asset sales, and will update the market of any definitive option being reached.

Mad Mex has a new national development manager who is responsible for design, construction, legal and franchising. Adam Furner joins the Mexican franchise chain with a wealth of local and international experience. His career has spanned retail development, project management and franchise expansion in the restaurant and commercial property sector.

Furner has worked with companies including Crust Gourmet Pizza Bar, Bakers Delight and New Zealand Natural.

The appointment follows the strategic partnership between Mad Mex and Singapore-based restaurant group 4Fingers which took place last year.

4Fingers took a 50 per cent stake in the Mad Mex business which included buying out Mad Mex director, Phil Blanco.

Blanco has navigated the brand’s national and international expansion since 2009. He will leave the day-to-day business but intends to remain close to the brand. n

MARK WAHLBERG INVESTS IN F45 TRAINING The Hollywood star and businessman, along with FOD Capital, leads an investment group which now holds a minority stake in the fitness firm.

F45 picked the Mark Wahlberg Investment Group as a key accelerator for its ambitious global growth plans.

This investment partnership secures further large-scale expansion of the fitness chain. It will also help increase brand awareness, specifically in the high-growth US market.

The tie-up allows F45 to improve its systems and processes to benefit members and franchisees.

F45 founder and CEO Rob Deutsch and his business partner Adam Gilchrist remain at the helm as the company moves into its next phase of global growth.

“This is a monumental transaction for MAY/JULY 2019 | 14 | WWW.FRANCHISEBUSINESS.COM.AU

JOIN THE CONVERSATION Why not follow us in social? @insidefranchisebusiness @insidefranchisebusiness @ifranchisebus

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INSIGHTS

WHAT NOW FOR FRANCHISING? Change is inevitable for Australia’s franchise sector following the recent parliamentary inquiry. So what’s coming your way?

F

ranchise standards have to rise and franchising should provide better protections and rights for franchisees.

That’s the conclusion of the franchise inquiry report from the Senate committee looking into the franchise sector.

FRANCHISING IS IN NEED OF A MAJOR OVERHAUL There’s no doubt the committee views the franchising sector as ripe for regulatory and cultural change. It drew comparisons with the banking industry: “disclosure alone is an insufficient regulatory response to power imbalances and exploitative behaviour by powerful corporations,” it said.

It highlighted poor corporate governance at some franchises, and was sceptical of the role of shareholders in a franchise system.

For a franchisee to be well informed is not enough, “because the franchise agreement embeds the power disparity between franchisor and franchisee for the duration of the contract, including the exit arrangements”.

But it also recognised the diversity of the franchise sector.

And in seeking to achieve fairness in franchising as its framework, the committee acknowledged franchise models exist that do recognise the “mutual importance” of franchisor, franchisee and supplier.

So it has been careful not to impose “unnecessary

burdens” on franchisors who are treating franchisees fairly.

“That said, the recommendations are designed to lift standards and conduct across the entire industry” due to the power imbalance mentioned earlier. Regulators need to be aware that franchisors have a greater voice than do franchisees and are therefore more likely to influence any debate about franchise policy.

FRANCHISE INQUIRY REPORT: WHAT FRANCHISE BUYERS NEED TO KNOW The committee findings set out to achieve Fairness in Franchising, the title of the report. Overall the report outlined need to improve standards because “on the balance of evidence given to the committee in public and in confidence, far too many franchisors are abusing the power imbalance between themselves and their franchisees”.

The report aims to offer ways to rectify this imbalance.

It wants franchisors to be more accountable for how they use marketing funds, and to divulge details of supplier rebates.

It wants to improve financial disclosure so that franchise buyers have guaranteed access to relevant financial figures when buying an existing business – provided either by a franchisor or the vendor franchisee.

There are suggestions on ways to deliver more information to franchise buyers as they research possible

MAY/JULY 2019 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

investments with, in particular, a greater emphasis on the risks and responsibilities of taking on a retail lease.

The report also looked at wage theft in franchising and ways to reduce the incentives for engaging in underpayments.

The 369-page report, entitled Fairness in Franchising, included 18 pages of more than 70 recommendations. The report is a far-reaching analysis of the franchise sector’s performance and the regulatory landscape it operates in. It discusses pre-purchase education, disclosure, marketing funds, the cooling off period, goodwill, exit terms, restraint of trade, unfair contracts, third line forcing, supplier rebates, dispute resolution, finance and lending, collective action, retail lease arrangements, wage theft, capital expenditure, industry associations and the role and reach of the ACCC.

EMPOWERING THE ACCC The committee wants the Australian Competition and Consumer Commission (ACCC) to establish a FranchiseSmart website for franchises similar to the MoneySmart service operated by the Australian Securities and Investments Commission (ASIC).

It also believes the ACCC should have more powers. The body that regulates the Franchising Code of Conduct should be able to stop franchisors who repeatedly market and sell a non-viable franchise from doing so. There should also be harsher penalties for misconduct.

And the committee wants franchisees to form a national association that can provide an alternative viewpoint to the franchisor-dominant Franchise Council of Australia (FCA).

A register of franchises in Australia could also be useful, the committee suggests.

One omission that has surprised a number of franchise experts is not making financial and legal advice mandatory for franchise buyers.

One of the report’s main proposals is for the government to set up a franchising taskforce. This body will include representatives from a number of different agencies such as the Department of Jobs and Small Business, and the ACCC. The role of the taskforce would be to evaluate and implement the committee’s proposals.

IN MORE DETAIL GREATER TRANSPARENCY AND DISCLOSURE • Franchisors should provide more information such as assurances of accounting and code compliance, the disclosure document and franchise agreement to be available electronically as well as on paper, quarterly financial statements provided.

• Vendors (either franchisee or franchisor) to supply two years of Business Activity Statements and key financial data to the buyer – information for a comparable franchise must be provided if a greenfield franchise.

ENDING A FRANCHISE AGREEMENT • In certain circumstances, franchisees should be allowed to end a franchise agreement.

• On the other hand, franchisees can only be terminated for special circumstances on seven days’ notice – providing there is no notice of dispute lodged by the franchisee in that time.

MAY/JULY 2019 | 17 | WWW.FRANCHISEBUSINESS.COM.AU

INSIGHTS

• More restrictions on terminating a franchise agreement for fraud or public health and safety.

ARBITRATION FOR DISPUTES • Binding arbitration that can award compensation and costs if mediation is unsuccessful.

• Merging the Office of Franchising Mediation Advisors with the Australian Small Business and Family Enterprise Ombudsman.

COLLECTIVE ACTION • Franchisees could collectively bargain with a franchisor without breaching the Competition and Consumer Act. RETAIL LEASES • Additional disclosure of occupancy details.

• Franchisee power to terminate an agreement within six months if franchisor has failed to comply with lease disclosure rules.

THIRD LINE FORCING • Amend the code to include two years of information on cost of production, margins and product prices.

• The taskforce to consider an inquiry into agreements that allow franchisors to exploit franchisees through over-ordering of supplies.

These are just some of the points the committee has raised in its report.

WHAT THE ACCC SAYS A spokesperson for the Australian Competition and Consumer Commission told Inside Franchise Business the wide-ranging report will take the ACCC some time to consider.

“A number of recommendations align with concerns we have raised, for example, our call for civil penalties to be applied for all breaches of the Franchising Code, which the parliamentary committee has recommended a taskforce look at.

“If implemented by government, the ACCC would look forward to working as part of the franchising taskforce to consider the issues further in order to address the committee’s report and to provide advice to government for their response.”

The ACCC emphasised both the “significant resources” and the enforcement work devoted to franchising.

WHAT THE FCA SAYS The peak body for the franchise sector has indicated it is looking forward to “constructively contributing to the Task Force and working to effectively implement both the changes we have underway and other recommendations of the inquiry”.

The FCA emphasised to the inquiry that there was a need for more rigorous compliance oversight and enforcement and

reports it has been actively engaging with the ACCC. A statement said “We are pleased that recent enforcement actions have successfully brought some unscrupulous operators to account with significant penalties.

“Any breach of the law by a franchise business reflects on the reputation of the majority in franchising whom do the right thing. Franchising works best when there’s open collaboration between franchisors and franchisees and the FCA is committed to ensuring their mutual success.”

WHAT FRANCHISE REDRESS SAYS Franchise Redress describes itself as a communications, advisory and consultancy business that supports franchisees: former, current and prospective. The organisation also undertakes research and investigative work and has been influential in bringing to light some of the franchisee complaints that sparked the franchising inquiry.

Director Maddison Johnstone told Inside Franchise Business, “Our observations in the franchise sector pointed to problems that were not isolated to a few franchise systems. It was encouraging that the committee came to the conclusion that there are systemic issues in franchising as this will enable real change to be discussed and implemented.”

Johnstone said, “Churning of franchisees has been a problem that we have seen in large franchise systems, but also franchise systems that are trying to grow quickly.

“This obviously leads to a moral dilemma for franchisees who are trying to avoid financial devastation by selling their franchise, but know they are selling an unprofitable business to someone who will likely end up struggling financially.

“The committee’s recommendation of intervention powers for the ACCC where a franchisor has a track record of churning will be particularly helpful to these franchisees and could stop churn before it becomes heavily relied upon by franchise systems.”

Franchise Redress maintains that public access to disclosure documents will help franchisees and prospective franchisees in their business decisions.

Greater transparency will also assist the wider franchise community in advising and consulting franchisees and franchisors, Johnstone said.

“We know that franchisees would also greatly benefit from full disclosure of rebate arrangements with suppliers, and this is something that ethical franchise systems would be happy to disclose up front.”

WHAT HAPPENS NOW? The Senate inquiry’s proposals are, right now, just recommendations and a federal election due soon after publication of this magazine throws uncertainty and delay into the mix. At this stage we don’t know what will be taken up by government.

While it is clear that the details of the report and the public sentiment lean towards regulatory changes, implementation of any amendments to the Franchising Code is likely to be some time off. In the meantime, franchise buyers would be wise to look more deeply into their shortlisted franchises.

One of the lessons learned throughout this inquiry was the lack of research done by some of the franchisees before they invested in their business. There is no substitute for good due diligence.

It’s already happening, as exhibitors at the Sydney Franchising & Business Opportunities Expo found: visitors were more knowledgeable than in previous years and prepared to ask franchisors hard questions about their business models.

There’s no doubt that change is coming.

But the report is just the beginning of a process of change. n

MAY/JULY 2019 | 18 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE INQUIRY REPORT HIGHLIGHTS

1. Form a franchising taskforce with representation from the Departments of Treasury, and Jobs and Small Business, and the ACCC. 2. Apply whistleblowers’ protections to franchisees and their employees.

3. Empower the ACCC to stop marketing and sales of franchises if a franchisor shows a track record of churning.

4. Establish a register of franchises.

5. Franchisees to form a national association.

6. Increase disclosure, particularly around third line forcing, supply chains and marketing funds.

7. Harsher penalties for misconduct.

8. Improved financial information access for franchise buyers.

9. Greater accountability of franchisors.

10. Create a FranchiseSmart site comparable to ASIC’s MoneySmart.

THE LIST

FUN-TASTIC FRANCHISES When you start up your new business, you’ll be spending plenty of time at work. So you might as well enjoy it, right? These franchises come with a built-in fun factor.

Boost Juice WHAT WILL I BE DOING? At Boost Juice, our mission is to make sure every customer leaves our store feeling just that little bit better!

Whether we’re serving delicious, mouth-watering juices, smoothies or crushes, or providing an awesome experience, it’s all about making sure we’re having as much fun as possible with customers.

tailored to your stores. We encourage all partners to share their ideas and initiatives and we work with you to make these come to life in your store.

WHAT’S THE COMPANY VIBE? We work off a LOVE LIFE philosophy, and this underpins all areas of our business. From our partners, Boosties and customers, we want everyone to embody this.

HOW DO I FIND CUSTOMERS? We have a number of initiatives to grow and retain your customer base, including monthly national brand marketing campaigns and strategic local area marketing that can be

WHAT DO I NEED TO KNOW BEFORE I START? We encourage our potential partners to find out as much about the business as possible to make sure they are

fully equipped to begin their journey.

Prospective franchisees should ensure they know who’ll be applying for the business, how much they may need to borrow to purchase the business, and whether they are looking for a greenfield or existing site.

HOW MUCH WILL I NEED TO INVEST IN THE BUSINESS? This depends on the site looking to be purchased. It will also vary depending on whether this site is a greenfield or being sold by a current franchise partner.

Pinot and Picasso WHAT WILL I BE DOING? As well as being the face of the business, you’ll be in charge of all things customer relations. Ensuring that the ‘Pinot experience’ continues throughout every session, managing staff and engaging in the running of functions and key events.

from conception and beyond. We encourage user-created social media content from week to week, and provide continued support in driving web-based sales.

HOW DO I FIND CUSTOMERS? All going well they should come to you!

As part of your franchise package we provide ongoing group-wide marketing

WHAT’S THE COMPANY VIBE? We like to provide a fun, easygoing, supportive environment for franchisees. We thrive on effective communication and find transparency the cornerstone of our business.

WHAT DO I NEED TO KNOW BEFORE I START? Absolutely nothing. We provide comprehensive training for all franchisees and new employees to ensure everyone is prepared for any situation.

HOW MUCH WILL I NEED TO INVEST IN THE BUSINESS? Our franchises, from start to finish, start from $88,000. This includes your franchising fee and the build process.

Lonely Pets Club WHAT WILL I BE DOING? Going into people’s homes to love and care for their pets, property and gardens when people go away. We feed all kinds of pets as well as doing lots of dog walking.

HOW DO I FIND CUSTOMERS? Support office arranges Google and Facebook campaigns to reach out to pet owners. This, combined with your

own local knowledge, connections and local area marketing, helps ensure local pet owners can find you.

all sorts of pets and a desire to keep customers happy. Everything else you can learn as you go!

WHAT’S THE COMPANY VIBE? We’re a bunch of happy, customer service-driven pet lovers.

HOW MUCH WILL I NEED TO INVEST IN THE BUSINESS? Anything from $10,000 for country/ rural areas, up to $100,000 for more established urban franchised areas.

WHAT DO I NEED TO KNOW BEFORE I START? You need to have a history of loving

MAY/JULY 2019 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

POOLWERX HAS THREE GREAT OPTIONS TO GET STARTED: 1. Grow your business from a single-van operation 2. Acquire an existing business and take it to the next level 3. Acquire multiple businesses and territories Are you looking to build a successful future for yourself, not your employer?

Do you want to spend more time at home with your family, not out working?

Franchising with Poolwerx gives you the opportunity to own and operate your own business your way, whilst also having the support and stability of a nationally recognized brand backing you. If you’re ready to take the next step towards owning your own franchise, chat to the team at Poolwerx today.

CONTACT US TODAY Poolwerx Global Support Centre 1800 245 447 poolwerx.com.au/franchising joinourteam@poolwerx.com.au

THE LIST

Old Macdonald’s Travelling Farms WHAT WILL I BE DOING? Your role is to present small and baby farm animals mainly to school children but also all members of society.

HOW DO I FIND CUSTOMERS? You’ll be provided with an updated client database. We help you identify prospective clients, together with helping design flyers and sending mail merges, and small ads on Facebook WHAT’S THE COMPANY VIBE? You can see and contact Old Macdonald’s

Travelling Farms franchisees on our website and Facebook. Our colourful floats and tents are long remembered!

WHAT DO I NEED TO KNOW BEFORE I START? We recommend that as it is an alternative lifestyle, you discuss owning an OMF franchise with family, as all members can participate.

We look for honesty, integrity, drive, imitative, flexibility and good communication skills.

You’ll need a first aid certificate, a blue

card (or equivalent police check), and an empathy for baby animals.

HOW MUCH WILL I NEED TO INVEST IN THE BUSINESS? Between $77,000 and $90,000.

Franchisees who are expanding and splitting may offer vendor finance.

PhysiPole WHAT WILL I BE DOING? Running a state of the art aerial fitness studio offering classes in pole dancing, aerial hoop, silks and other casual dance/ fitness classes.

HOW DO I FIND CUSTOMERS? People join our classes from all walks of life, whether to help build self-confidence or work on physical fitness. We are for anyone willing to give things a go and wanting to have fun in a supportive environment.

Customers are reached via Facebook, Instagram, word of mouth and local community.

WHAT’S THE COMPANY VIBE? Positive and fun! We’re female business owners who are passionate about improving our students' health and happiness. We’re full of innovation and excited to be paving the way to make our industry bigger and better.

WHAT DO I NEED TO KNOW BEFORE I START? You need to be passionate about the pole/ aerials industry. You will not be in it alone, with someone there to help you every step of the way.

HOW MUCH WILL I NEED TO INVEST IN THE BUSINESS? Initial investment is $40,000 plus site set-up which can range from $40,000 to $120,000.

LCF Languages WHAT WILL I BE DOING? Teaching kids 0-12 years French, Spanish, Mandarin, Italian or German at a primary school or childcare centre. Alternatively, you could manage the language teachers.

HOW DO I FIND CUSTOMERS? Head office runs a comprehensive marketing initiative that brings a lot of leads that will be passed on to you. Subject to approval, head office will partner with you to deliver local marketing activities by contributing up to 50 per cent of the

cost. You are also encouraged to approach customers locally and advertise in local media.

WHAT’S THE COMPANY VIBE? Be your own boss. You choose your work hours or how big you want to grow your business. Very flexible and family-friendly atmosphere.

materials you need to run the business. This includes detailed lesson plans, props, etc.

HOW MUCH WILL I NEED TO INVEST IN THE BUSINESS? You need $2500 for a 1-year license or $10,000 to $20,000 for a franchise. You are eligible for a 50 per cent discount if the franchise area is rural.

WHAT DO I NEED TO KNOW BEFORE I START? Nothing. We provide full training and all

Baskin-Robbins WHAT WILL I BE DOING? Being a part owner in a brand with over 70 years heritage. Welcoming guests into your business, offering a world-class product and creating unforgettable experiences. Your guests may come in to celebrate with family and friends or sometimes on a solitary mission. They may want to treat themselves or reward a recent success, there will be no doubt they will leave your business smiling!

HOW DO I FIND CUSTOMERS? By delivering amazing guest experiences

to every guest that visits your store, ensuring they tell their friends and family.

Being involved in your community by sponsoring sporting teams, local school or community groups.

WHAT’S THE COMPANY VIBE? We proudly offer happiness to our guests. We focus on delivering the same at all levels, sharing the wealth of knowledge in a team of committed and experienced franchise professionals. The leadership team has over 125 years of QSR experience.

WHAT DO I NEED TO KNOW BEFORE I START? A Baskin-Robbins franchise can be a rewarding opportunity. Your desire to succeed with hard work and focus on delivering the best experiences to guests is critical. Providing a supportive and collaborative workplace for your staff is a big part of that work.

HOW MUCH WILL I NEED TO INVEST IN THE BUSINESS? A new store starts from $200,000.

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

WHY NIGHTOWL?

SUPPORT

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

•

YOUR SUCCESS IS OUR SUCCESS

•

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

•

•

• •

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

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

Speak to us about franchise opportunities today

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

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

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

nightowl.com.au

LEADERSHIP

THE WHOLE HOG

After 30 years in business, you’d be forgiven for thinking you had the process down-pat, but as Ross Worth, Hog’s Breath Cafe’s CEO, will tell you, the restaurant industry is an ever-changing beast.

By Nick Hall

“T

his is absolutely not an industry where you can keep doing what you’ve always been doing and expect to succeed.”

That’s the ethos that has driven continued growth and innovation at fast-casual franchise chain Hog’s Breath while Worth has been at the helm. The home-grown steakhouse has expanded from one location to over 80 restaurants across Australia and New Zealand, becoming the region’s largest licenced casual dining concept.

However, it hasn’t been an easy ride. Worth acknowledges that certain economic and technological factors have put pressure on all food and beverage operators, but as the old adage goes, the proof is in the pudding.

Now approaching its 30th birthday, Hog’s Breath is rolling out a series of new initiatives, technology platforms and experience-based dining to help its franchise partners achieve the highest profitability possible.

Inside Franchise Business sat down with MAY/JULY 2019 | 24 | WWW.FRANCHISEBUSINESS.COM.AU

It’s imperative to have a passion for our industry in order to survive and thrive in a challenging environment. You absolutely must be hard-working and driven, have an appetite to succeed, and a love for food and customer service.

A great lifestyle awaits if you love the industry and all that comes with it.

Ross Worth as he looked back at Hog’s Breath’s humble beginnings, the lessons he’s learned and what the future has in store for the Aussie success story.

Q: HOG’S IS COMING UP FOR 30 YEARS IN THE INDUSTRY, HOW HAS THE BRAND EVOLVED OVER TIME? A: Where do I start? We had a humble beginning in beautiful Airlie Beach so we’ve evolved beyond what we could have ever imagined 30 years ago when we opened the doors for the first time, to where we are today. We are still quintessentially “Hog’s” in our philosophy and customer service values, still serving a signature 18-hour slow cooked prime rib steak in our relaxed dining environment with our unique style of Hog’spitality, but what we could never have anticipated 30 years ago is the massive shift in technology, consumer expectations, sustainability and marketing that have driven our industry.

Customers these days demand more from their restaurants and food providers, which has forced the industry to up its game, which is a great thing. Understanding what motivates the customer and tapping into their emotions is more important than ever

to set ourselves apart from our competitors.

We could never have imagined the role that consumer access to global news and trends would have in shaping consumer demand and, consequently, our future, and at such a fast rate, from purchase behaviour, to food trends and consumption habits.

Q: WHAT DO YOU CREDIT HOG’S BREATH’S CONTINUED SUCCESS TO? A: We have adapted to those changes in technology, marketing, consumer demands and more. This is absolutely not an industry where you can keep doing what you’ve always been doing and expect to succeed, so every single day we pursue higher standards of operational and service excellence.

In the last couple of years we’ve introduced our quick service model, Hog’s Express, which features world class technology; established operations with three food delivery aggregators and continue to grow in this space; we’ve had food trucks out at events; and our traditional restaurants are in the process of receiving an instore design refresh and tech update, and that’s really just the beginning.

We have a team of 30 head office staff

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who are committed to keeping us at the forefront of industry changes; our franchise business owners work tirelessly with a passion for and dedication to the brand; and we have thousands of staff across the country who represent Hog’s in the best possible light, from the wait and bar staff to the grill masters and chefs in the kitchen.

And while we continue to progress, we’ve never forgotten our heritage and remain to this day, first and foremost, a steakhouse serving the 18-hour slow cooked prime rib steak that we’re famed for and that we know our customers want and love.

Q: WHAT LESSONS HAVE YOU LEARNED OVER TIME? A: This industry is entirely built around having customers, otherwise we have no business. From day one, our mission was to deliver great food and service with our signature Hog’spitality and sense of fun, and that has never changed. What has changed is customer expectations and how we deliver on that, so our biggest learnings always come as a result of staying abreast of what our customers want, which we do through customer and industry

LEADERSHIP

research, social listening, brand tracking and customer feedback surveys to name a few. Once we have a better understanding of what consumers want, we plan, test and adapt accordingly. Our current menu changes are a great example of that. We trialled a change, which was tested to be the right move, but live customer feedback was less positive so as a result, we listened and acted.

As a brand we’ve also learned the immense value in working with great people who share our passion for this industry, from our franchise business owners to our staff and suppliers.

Q: HOG’S IS NO STRANGER TO INNOVATION. WHY IS IT SO IMPORTANT TO REMAIN AGILE AS A BUSINESS IN FOOD AND BEVERAGE, AND INDEED THE FRANCHISE MARKET? A: If you don’t adapt to what the market wants, you simply get left behind. Some modern examples of this success are Netflix and Amazon. In our industry, people used to dine out for an enjoyable experience, a treat, to try something different and new that they could not get at home. Now what is convenient for consumers has changed and they are increasingly sophisticated in their expectations of both food and service, so we need to adapt or they’ll find someone else who has.

Q: WHAT OTHER INITIATIVES DO YOU HAVE UP YOUR SLEEVE FOR 2019 AND BEYOND? A: We’re focused on our next big project, which is launching a huge consumer promotion in the lead-up to our 30th birthday celebration, which sees Hog’s giving our customers the presents. Our “30 before 30 bucket list” promotion offers diners the chance to win one of 30 prizes totalling over $30,000 by purchasing any Coke product along with a food item. Major prizes up for grabs include travel experience packages such as a P&O cruise for four people from Brisbane to Airlie Beach, a $5000 travel voucher, AFL and NRL grand final experiences for four people, and free petrol for a year. The promotion will run from March 25 to May 12.

We’re also working to commercialise some of our most popular sauces so people can add their favourite Hog’s flavour to their own dishes at home. These sauces will be available in major supermarkets later this year.

Q: TELL ME A LITTLE ABOUT HOG’S BREATH’S “DELIVER GOOD FOOD AND GOOD TIMES WITH GOOD PEOPLE” PURPOSE. A: As is usual when you’re nearing a significant milestone, we’ve been assessing

where we see our future, and what we need to do to achieve our desired future state. In doing so, we re-established our overarching business purpose in order to accomplish our goals and remain a sought-after brand for another 30 years and beyond.

In a nutshell, our purpose is to deliver good food and good times with good people.

We’ll continue to pursue higher standards of operational excellence as well as refine and enhance the customer journey for both in-house dining and home delivery. Internally, we’re introducing initiatives that support improving our organisational culture, and that further enable our franchisees to be active, engaged and profitable. It’s imperative that we share our purpose and vision with our business owners and their teams throughout the country so that we all stay focused on achieving our goals collectively.

Q: WHERE DO YOU SEE THE QSR (QUICK SERVICE RESTAURANT) MARKET GOING IN THE FUTURE? A: In short, wherever the consumer wants it to go, but there will be other determining factors driving our industry. Technology, of course, will continue to enhance the customer experience and streamline operations for us; we’ll need to strive to ensure we’re leaving little environmental footprint; and we’ll face increasing competition from international players. And as we see new operators enter the market, we’ll also see local restaurant closures, which is the nature of our tough business. The food delivery space will continue to grow and progress with talk of drones and driverless cars, chefs will experiment with innovative flavours and ingredients, and the demand for healthy and more sophisticated options will continue to evolve. Overall, the quick service market will remain in hot demand as operators keep pushing the boundaries and moving into new frontiers, and consumers continue to demand cost effective and convenient ways to dine out.

Q: WHAT ADVICE DO YOU HAVE FOR PEOPLE LOOKING TO START A FRANCHISE IN THE FOOD AND BEVERAGE INDUSTRY? A: It’s imperative to have a passion for our industry in order to survive and thrive in a challenging environment. You absolutely must be hard-working and driven, have an appetite to succeed, and a love for food and customer service. A great lifestyle awaits if you love the industry and all that comes with it. n

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LEADERSHIP

Shaken and stirred Dessert bar Cowch is a solution to the ‘dessert and coffee or cocktails?’ question.

W

hen Arif Memis and his wife cooked a meal at home they would head out afterwards: Arif wanted to relax in a bar, his wife preferred to unwind with a coffee and dessert.

“There wasn’t a place for us to go with dim lights, loud music, cocktails, coffee and dessert,” says Arif Memis. So they created one.

The former mortgage broker had never enjoyed corporate life and once the couple had decided to ditch in the 9-5 for an entrepreneur’s life, he and his wife spent time looking at food concepts.

They found nothing that matched what they wanted from a cafe/bar.

The couple took the plunge, moved from Sydney to Queensland five years ago and set up the first Cowch Dessert Cocktail Bar on Southbank’s Grey Street.

It took time to establish the business as it was set a block away from the busiest precinct but as other restaurants opened nearby and the brand evolved it’s achieved 10-12 per cent growth.

front, an open kitchen, a high bar, ottomans. You can choose your own music.”

Memis says it’s about the experience, not just the food and drink. So partygoers can step behind the bar and learn to make cocktails, kids dish up their own ice creams and add toppings.

The Cowch founder remembers the joy of the activity-based cafes he used to visit as a child.

“I used to love plaster painting. We’ve replicated this concept but as a smoothie or ice cream. And mums can sit back and have a cheeky cocktail.”

There is diversity across the customer profile, with elderly couples, young families and even early morning business executives enjoying the ambience.

“In the mornings, Flight Centre global HQ people walk past other stores to come to us for meetings,” says Memis.

The Southbank store serves coffee

(custom made with a proprietary blend) and breakfast (scrambled eggs with dukkah and chilli oil, fairy bread french toast) with a shift in customer demographics - 80 per cent are male.

TIME TO FRANCHISE The second store at Gold Coast’s Pacific Fair has been open nearly three years; coming up next is a venue at Chermside’s dining precinct. All are company stores.

So Memis is ready to bring in franchisees, individuals with passion, desire and determination.

Hospitality experience is not essential but enjoying putting a smile on people’s faces is mandatory.

“I didn’t have hospitality experience when I started. I learned through a lot of trial and error.

IT’S ABOUT EXPERIENCE Cowch caters for many different customer groups although 83 per cent are women.

Memis says the key to the business is that the dessert bar provides a touchpoint for clients multiple times.

Larger groups are proving a highly popular income stream, from baby showers to kids parties to hens parties.

“When big groups come, as soon as the food comes out the phones are out.

Then you don’t see them for an hour.

That’s what we built this for - like a home with a big dining table, couches out the

MAY/JULY 2019 | 28 | WWW.FRANCHISEBUSINESS.COM.AU

JOIN THE SHACK FAMILY The Local Shack prides itself on providing a relaxing, family friendly dining experience. Open from breakfast through to dinner 7 days a week, we stand out against our competitors with our rustic beach vibe, a menu that caters to everybody and focusses on fresh locally sourced produce, all day breakfast, a fully licenced bar with craft beer selections and cocktails with infused vodkas, as well as vintage games like Jenga and Guess Who on the tables to bring back quality time amongst the families.

Currently we have 5 stores open across WA in Mandurah, Joondalup, Scarborough, Forrestfield and the newly opened Hillarys Marina to become your local place to be. So what are you waiting for?

Be a part of something AWESOME!

CONTACT US Bradley Wright 0433 405 737

www.thelocalshack.com.au/franchise

I made a lot of mistakes to start with but I quickly realised I needed to separate myself from operational tasks, making coffee, looking after staff; I’m not good at that.

“I bought in an operations manager in my first store so I could focus on business growth.”

Memis turned to mentors for advice, and admits that even though he had a finance background he had to learn about cost of goods ratios and other operational formulae.

“Now I have great systems and processes, everything is transparent. I get the sales figures and the checklists for staff are online - opening up, fridge temperature, sampling - so I can follow this closely.”

Memis looked to Soul Origin as an industry leader and has worked on emulating their practices. Where the sandwich, salad and coffee chain provides franchisees with a four-week training program, Memis has upped the training at Cowch to six weeks.

This breaks down to one week in the books, two weeks in a store, a week’s debrief, and two more weeks in-store training with their staff.

Continual learning is crucial, he says.

“My staff get external training once a month. That is paramount to the business.”

It will costs at least $580,000 to buy a Cowch franchise outlet. Cost is determined in part by size and stores are getting bigger, Memis says.

“We’re working with Leasewise on sites, they are negotiating the deals. Ultimately I have approval. If there’s a place not in metro we could look at smaller footprints.”

Current stores are 250sqm but the Chermside outlet will have a 400sqm footprint.

“If I can cater for bigger parties that’s where I’ll make more money. One of the key factors is we’re not about selling the product, it’s about the experience. A lot of businesses say it but they don’t live it.

“I don’t think we’re competing with desserts. We’re doing it differently. We do parties. Customers remember the fun times.” n

“When big groups come, as soon as the food comes out the phones are out. Then you don’t see them for an hour. That’s what we built this for - like a home with a big dining table, couches out the front, an open kitchen, a high bar, ottomans.

MAY/JULY 2019 | 30 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

A

WINTER BURN

Former Olympic swimmer Jade Winter knows a thing or two about success, which is why it’s no surprise Studio Pilates, the fitness franchise he founded in 2002, is going from strength to strength.

By Nick Hall

“I

think that being an athlete taught me some very fundamental and grounding lessons that I always carry with me in business.”

After being selected as a member of the 1996 Australian Olympic Swim Team, Jade Winter found himself thrust on to the world sporting stage, and it was an experience that shaped the Queenslander for life.

“I’ll forever be grateful to have been part of such an incredible sporting event,” Jade says. “The atmosphere is truly electric, with athletes from such a diverse array of sports and cultures all combining to do their best on the sporting field. It’s truly awe inspiring.”

More than 20 years on and Jade’s passion for physical fitness remains unwavering, albeit in a far less intrusive fashion.

Along with wife Tanya, whom he met at the local swimming pool when they were just teenagers, Jade anchors one of the strongest performing health and wellness franchises in Australia.

“It was a natural progression for me really,” Jade says. “I retired from being an athlete and I was looking for the next challenge and my wife, Tanya, who is a physio, was looking to do something new

at the time as well, something that aligned with her existing skillset.”

Together the pair launched Studio Pilates in 2002, when the functional fitness craze had yet to hit its straps.

“Pilates was still quite new to the Australian market then and it was quite hard to access Pilates reformer classes.

“When we started out there was no option to open a Pilates franchise, there wasn’t anybody doing it anywhere. We had to create everything from the ground up.

We had to create the entire system, the operating system, the training systems, the support systems, absolutely everything.”

Fast-forward 17 years and Studio Pilates is now a powerhouse in the domestic market, with over 25 studios up and running across Australia and New Zealand.

THE WORKOUT Jade says the key to the business’s continued success is a constant evaluation of the needs of its clients, with a fierce emphasis

on providing an unparalleled Pilates experience.

“You won't find any mirrors in our workout spaces, you won’t find any clocks in any of our studios either. Every element of the workout experience has been carefully curated for a specific reason,” Jade says.

While the husband and wife team were able to build a successful business from the ground up, it wasn’t until a chance overseas holiday that Jade and Tanya identified a key gap in the fitness market.

“While on a vacation to London and NYC, my wife and I wanted to keep up with our workouts, so we tried classes everywhere, and to our disappointment, we couldn’t find anything that ticked all the boxes for us,” Jade says.

“We were looking for a class that was intense, one that had high energy and it had the atmosphere we wanted. We both left feeling very disappointed and yet I was incredibly motivated at the same time. I felt like there was a massive gap in the market.”

“I went home and looked at how we were operating our business and came to the conclusion that how we were doing

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Studio Pilates Hawthorne

Studio Pilates Wellington Point

Jade Winter

Studio Pilates Nundah Brisbane

Studio Pilates West End

things simply wasn’t scalable.”

The experience inspired Jade to reassess the Studio Pilates model, identifying new goals of growth, change and social equity, giving way to the brand’s now signature Million People Plan.

“We’ve re-geared everything that we did from the ground up with one goal in mind: seeing one million people do our workouts each week.

“Giving people access to Pilates reformer workouts of the highest quality, at scale and at an affordable price was a huge motivator and something that simply had to be done in my mind.”

THE BUSINESS As an extension of this, Jade turned to franchising as a key growth facilitator, increasing brand exposure on the journey to achieve his magic million mark.

“With a vision as large as servicing one million people a week, I knew that I would need people just as passionate about Pilates reformer classes as me, and franchising seemed the obvious way to expand

and achieve the goal,” he says.

Since launching the business in its current form, Jade has grown the franchise network steadily and he admits the joy he gets from watching new franchisees succeed is one of the most rewarding parts of the job.

“I get a huge buzz from seeing people purchase their business and grow them into outstanding investments. Equally, I get a buzz from seeing people build their franchises up rapidly and sometimes sell them for twice what they initially invested in just a couple of short years.

“For me, as a franchisor, this is a big part of what it’s all about, helping people to create success for themselves and for their families for years to come.”

EXPANSION With his Million People Plan firmly in focus, Jade is once again returning to the global stage, this time taking the message from Australia to New Zealand and as far away as China’s Tianhe District.

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“Our mission is to change the way the world works out, so each time we have the opportunity to introduce our workout to a new city or country it’s incredibly fulfilling and I get a real buzz,” Jade says.

The franchisor revealed that the latest international growth is coming in September when Studio Pilates is set to launch its inaugural US studio in Brooklyn.

While the international interest is a nice boost, Jade says finding the right franchise partners is critical to maintaining brand image and ensuring the business keeps its clients happy.

“I believe consistent excellence is the hallmark for franchise success and makes for a franchise system that grows and grows indefinitely for decades to come,” he says.

“In order to achieve a high level of success, you will need to put in a monumental amount of work over an exceptionally long period of time, regardless of how much talent you have. In business, there are no guarantees, but if you apply yourself in the right way for long enough, you’ve got a pretty good shot at success.” n

LEADERSHIP

QUEST

FOR FUTURE SUCCESS Law can be a profitable career so what makes a lawyer turn his back on the legal profession and forge his own path as a franchisee?

i

t turns out that business is in his blood. At least that’s one reason why Fahim Malik rejected a life of legal practice and opted instead for a future based on his own business-building skills.

“My parents wanted me to finish my law degree, they wanted me to have something on the education side, and law has really helped me,” says Malik.

Perhaps with his parents background operating a Registered Training Organisation and an older brother running a 7-Eleven store in Sydney, it was almost inevitable that Mailk would step into the small business world.

“I always had a business mind and desire to be my own boss. I got my skills from my parents and 7-Eleven. We were really happy with how the 7-Eleven business progressed and the support we got. My dad was an entrepreneur, my brother started out as a franchisee and I wanted to get into a franchise.”

The accommodation sector appealed

to him so when a Quest Apartment Hotels property came up for sale, even though it meant moving to Canberra, he was keen.

The brand’s strong branding and position in the marketplace appealed to Malik.

He liked that he could take over a small property already up and running as it would give him a good opportunity to learn the industry from the start.

He had to understand the sort of guests he would be welcoming, how to handle long stay business which is a little bit different from other hotels, and how to target the customer.

“The support has been incredible,” he says. “I had help with financials and business plans, and the business relationship manager was very supportive.”

In fact Malik was such a fan of the franchise that within two years he had signed up to a second site, the brand new Quest Canberra City Walk.

He now owns both ACT sites which sit just five minutes apart, one modern, one a heritage building.

Last month was the second month hitting 70 per cent occupancy. “It was much better than expected, we are getting repeat guests and the location is great,” says Malik.

He loves working with staff and finding out the best ways to help them achieve their goals.

He might not be a working lawyer right now but Malik’s legal training has given him a huge advantage in his franchisee role.

“I know how to approach things, what actions to take. Studying commercial law helped me in a new business to deal with agreements between landlords and understanding leasing strategy.”

Malik admits he went through the purchase process relying on his own legal skills but has since turned to the family’s business lawyer for ongoing needs.

“I got through it myself but I had the background. My advice for any franchise buyer would be to turn to professional lawyers for advice.” n

MAY/JULY 2019 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

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Congratulations to our newest Franchisees Michelle & Terry from Gelatissimo Wollongong

LEADERSHIP

Fabulous UNDER 40S

Youth is on their side, and these franchisees are showing they’ve got what it takes to blast into business success.

By Sarah Stowe MAY/JULY 2019 | 36 | WWW.FRANCHISEBUSINESS.COM.AU

JORDAN BEDSON Age 29 | Franchisee for 2 years | Swimart

J

ordan Bedson thinks he’s one of those fortunate people for whom everything just slots into place.

It’s entirely accidental that he ended up in the pool servicing business, and entirely accidental that he bought a franchise rather than an independent business.

These two happy accidents have brought him to a good spot today, though, where he is contemplating buying a second pool store.

Let’s flashback to just over a decade ago when Jordan was leaving Year 12 and took a summer job in a pool shop as a retail assistant.

“I really enjoyed it. I was working for people who took me under their wing.

After summer, they offered me a pool servicing role on the road in winter. I did that for a couple of seasons, then was back in the shop for summer.”

Before long Jordan took on the manager role and was thinking about his future.

“I was ambitious so I warmed to the idea of my own pool shop. I had made a lot of good contacts and one of them, Ernie Sumner, was the Victorian manager of Swimart.”

The franchise chain was looking for a manager to run a store that had become company-owned when the franchisee left.

“At that point, I was 26, married with two kids, seven and five, and living more than an hour away in the Yarra Valley.”

Jordan and his wife Hayley were hesitant about the opportunity. But some clever negotiating on Jordan’s part and he secured a promising future that made it worth the family moving home.

“I was concerned that I would work there, then they would sell to another franchisee and not need me. I discussed buying the business but I didn’t want to grow the business and have to pay more money for it! The national franchise manager agreed on a sliding scale price. I would run it for two years and if I liked it, I’d have the first option to buy it.”

Jordan took with him an experienced technician from the store he was managing, plenty of experience and a

good leadership ethos.

“We focused on attracting people with a really good environment and retaining good people.

“We started to offer great service, focused on customer service and good reputation, and the business started growing – it had been running at a loss and we doubled the turnover within two years.

“Now we’re at a very positive point, we’ve got five vans on the road, a retail store selling equipment, chemicals, spas, and a full service area out the back for robotic cleaning repairs.”

While he had managed the store, owning the business was still daunting.

“The biggest thing I needed to learn pretty quickly was financial. Now I would be using my money to buy things. So I schooled myself very quickly; I had underestimated how much I needed to know.

“It’s about not overspending, then really focusing on stock and staff levels. As manager you’re not really aware, someone else is paying the bills. That was one big wake-up.

“I felt like it really helped me in a way. I’m not controlling but I love to get everyone’s ideas and then be able to make the final decision. I felt it opened me up a lot to grow the business further.”

Business growth requires risk taking – something Jordan is more than happy to take on. He has youth and experience on his side, and it is paying off.

“We’ve been operating at 30 per cent growth year on year,” he reveals. And last year Jordan and Hayley were named Australasian franchisee of the year for Swimart, the youngest to take the crown.

Jordan admits his age made the first few weeks tough with older staff but he had experience to back him up.

“It’s tough for older people, you have to respect that, having to take advice from someone half your age, with half as much life experience as you. It’s how you approach it. Management is what I love, getting to understand the people working for you and their different personalities.”

Today the staff span the whole working age spectrum from school students to a 60+ technician “who’s awesome”.

“This is a really cool franchise. It has all different franchisees who are

MAY/JULY 2019 | 37 | WWW.FRANCHISEBUSINESS.COM.AU

all open and honest and wanting to learn. Everyone gets along and is very supportive.

“That’s my number one positive. The relationship with other franchisees.”

Looking back on his choices, Jordan says, “If you put an independent and a franchise side by side, with my experience, I would make the same decision again. Swimart has a good name, people like shopping with a larger chain. I think the fees are worth the money.”

The plan is to build up some finance and then look at opening another store, perhaps converting an independent to Swimart.

“This franchise has given us a good opportunity and lifestyle. We put in long hours and it pays off. Business drops right back in winter. You have time to go to kids’ sports, I’m coaching my son’s footie team.

“I don’t think I’ve ever worked seven days a week, even when I bought the business. If you give ownership to people and you have the right people on board, people you can trust, you can work five and a half or six days a week.” n

“

It’s tough for older people, you have to respect that, having to take advice from someone half your age, with half as much life experience as you. It’s how you approach it. Management is what I love, getting to understand the people working for you and their different personalities.”

LEADERSHIP

KATHY AND TRENT CUMMINGS Ages 30, 31 Franchisees for 6 years Plus Fitness

S

ydney couple Kathy and Trent Cummings have taken a single Plus Fitness gym and in less than six years morphed it into a four-strong multi-unit business.

It all started when Trent was working as an electrician but was keen to fulfil his ambition to be an entrepreneur and work on his own terms. As a fitness addict it made sense for him to choose the fitness sector. But he knew there was more to success in fitness than starting up his own business.

“It comes down to brand awareness, a standalone gym is hard to get started,” he says.

Trent also liked that members of a fitness chain could access more than one gym.

So finding a fitness franchise was the next step.

Kathy says, “Having the support of head office, someone you can turn to, is great. You wouldn’t really have that if you were on your own. It would be much more daunting.”

The pair researched a number of fitness franchises and picked Plus Fitness for a couple of reasons: it is Australian owned, and the franchisors were forthcoming with information.

“They were willing to provide lots of information, they were very supportive,” says Kathy.

The couple found the biggest challenge was sourcing a location but because Trent was out and about in his job, he was always scouting for a site.

Kathy says, “We did a lot of research into demographics and played a waiting game trying to find the location.”

They opened their first location in Hornsby about 12 months after selecting Plus Fitness.

“Once it opened, I left my job and worked full time. Trent worked part time, and then we opened a second gym at Artarmon.

“Now we have four, the others are at

Kellyville and Marsden Park. We live in Castle Hill so its central between all of them.

“We visit each site once a week. We have reception staff/managers for each gym and we take more of a supervising role.”

Kathy’s admin background proved invaluable to the business and allows Trent to play to his strengths as a people person and salesman.

While such swift growth is impressive it wasn’t all challenge-free, admits Kathy.

“Initially it was about finding a location for our first gym but there were more hurdles when we opened the second. It’s a big difference. It was difficult learning how to manage two stores.”

The Cummings turned to fellow franchisees and their franchisor for mentoring and advice. Now the two are so well-versed in their franchise operation that new franchisees come to them for franchisee training.

“All along our head office has been very supportive, our field manager too,” says Kathy.

What reactions have the pair had from friends and family as they set off on their great business adventure?

“Everyone was very supportive. I think as we expanded and opened more locations, people were a little bit surprised that people so young would have multiple locations.”

Although the signs were probably there … at 19 the couple had invested in real estate and were able to remortgage two properties to buy the first Plus Fitness gym.

They then used business loans for the second and third purchases, and were able to self-fund the most recent acquisition.

With four gyms under their wing Kathy and Trent are unsure of their next move.

“If we were to open an additional outlet we would have to hire someone else to manage the business because it takes it to the next level.

“And we’re in metro Sydney where the market is quite saturated. We would have to look at different locations.”

Whatever their move, the pair are enjoying their current success. Their achievements even inspired some of their friends to invest in a fitness franchise for themselves.

So do they have tips for any other millennials considering buying a franchise?

“I think if you’re going to start a business it needs to be something you are passionate about otherwise it becomes more of a job,” says Kathy. “You think of your business as your baby. You need a genuine interest.

“If you put in the hard work and the hours, you’ll get results. When we started we were working 12 hours a day, Monday to Thursday, and half that over Friday to Saturday.

“We saw it as an investment, doing everything we could to be a success.” n

MAY/JULY 2019 | 38 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

GENE THOMAS Age 38 Franchisee for 11 years Spudbar

G

ene Thomas is still in his 30s but stepped off the corporate ladder when he was 27. He ditched the advertising career and started to work for himself after seeing how a friend enjoyed an enviable Spudbar franchisee lifestyle.

“He was working very hard but for himself.

He’s a good operator. I looked up to him, how he was organising his lifestyle and how he had built his store up. It looked very attractive.

“So I resigned and bought a potato business.”

It wasn’t exactly what his parents had in mind as a career move. But they supported him in his decision, once they ensured he’d done his due diligence.

“It’s about finding a franchise that you can trust and put your faith in,” says Gene.

“Being young I wasn’t too cautious but my parents made sure I did the research.”

One thing he knew was that he wanted to buy a food franchise. Spudbar was up and coming, a niche market with its baked potato meals. It was not a fad but offered good basics.

When it came to the crunch, he looked at what backup the franchisor team would provide to him as a novice business owner.

“Their support was really important for my first business. It’s not a huge franchise so they are very responsive.”

One of the biggest influences on his decision was franchisee involvement in ideas and marketing, which Gene of course enjoyed because of his background.

“A lot of other franchises tell you and show you. At Spudbar your voice is heard.”

So Gene set up shop and spent an intensive few months working on getting everything right instore.

“I watched a lot of customers, finding out what makes them happy and how to create a good vibe.”

He is focused on getting the team to play the right music, keep the store at the right temperature, ensure it is very clean and inviting.

“You notice customers want to be in there. The food is fresh and looks appealing. Staff are happy and look presentable.”

Gene loves dealing with customers and finding what makes them tick. Right now he’s also relishing working closely on marketing and discovering the benefits of the social media tools Spudbar is using.

He believes franchise buyers should not focus on the money but should invest in a business they are passionate about.

“I like healthy living and eating, and there aren’t many places like Spudbar. Your customers are a reflection of what your product is.

At one time operating four food outlets, now he’s focused all his attention on the South Melbourne store and loving the lifestyle his franchise delivers.

He’s enjoying the flexibility of leading just one store and spending time with family and friends.

“I had four stores at one time, with up to 30 staff. Now I’m concentrating on doing one store really well, implementing strategies properly.”

Today Gene has a team of six staff to operate the single outlet.

“I work on the business a lot, I’m instore every lunchtime and I can be

there late at night.

“It’s good for staff to see the owner there, and I’m enthusiastic so they can see I care.”

He says franchise buyers need to think about what they love before they purchase a business.

“Get into something you enjoy, because a lot of time you’ll be instore for 12 hours a day, seven days a week.”

Gene is in a position now to expand his interests, something that running his own franchise allows him to do.

“I have a few property projects on the go, and I’m studying property management.

“A good franchise can give you a lot of flexibility. I love it.” n

“

Get into something you enjoy, because a lot of time you’ll be instore for 12 hours a day, seven days a week.

MAY/JULY 2019 | 40 | WWW.FRANCHISEBUSINESS.COM.AU

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MAY/JULY 2019 | 41 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

TAMARA ELMORE Age 23 Franchisee for 1o months Domino’s Pizza

D

omino’s youngest franchisee, Tamara Elmore, began her career with the company at the age of 17 and just six years later, is owning and operating the Byron Bay store.

The now 23-year-old pizza prodigy, based in Bangalow, started working for Domino’s as a delivery driver. Today she employs a team of 16 locals from the area.

“I got my start as a delivery driver in Brisbane during high school and university while studying interior design and although I learnt a lot, I decided my passion was for pizza,” Tamara says.

In particular, she is a devotee of the Domino’s brand. Tamara lists the fastpaced environment, passionate team members and and “amazing culture” as outstanding.

So when the opportunity came up to take on the Byron Bay store, she jumped at the chance.

“My business partner, Anita, used to be my manager at Domino’s Victoria Point and it’s great for us to partner up to own and operate our own store together.”

The pair run the business jointly on a 50/50 basis.

For Tamara, being Domino’s youngest franchisee in Australia has not been without its challenges though.

“The hardest part about being a franchisee was having this dream of

owning a business and being worried that I wasn't doing it right and that I wasn't making the right choices,” Tamara admits. “I wasn't at uni or studying. I left Domino’s at one point to learn about another business and when I came back, I thought maybe I'd lost my opportunity; maybe I'd backtracked too far.”

Tamara is a great believer on working on what you want, until you get it.

“I just kept working on it every day, striving to be the best that I could be. At the end of the day, it’s all experiences – the negative and the positive – and they shape us into the people we want to be, leading the lives we want to live, and working towards the goals we want to achieve.”

Tamara has family and friends backing her ambition, as well as the support from other Domino’s team members.

“Many of them have grown up through the system and really understand how things work at a store level,” she explains. “They’re always there to give advice, go through reports, point out when you’re on the right path and also where you can improve.”

Tamara points out the level of knowledge that can be accessed across the franchise network. There’s a willingness for others to share their experiences, data and insights to help everyone succeed, she says.

“Many of them started when they were even younger than I was and have worked their way through the system to

become extremely successful multi-unit franchisees. It’s inspiring to see how they’ve grown as people, employees and business owners and to learn from their successes,” says Tamara.

Already successful in her current business Tamara has big plans for herself, and for her career.

“My goal is to keep learning new things and growing as a person, so that I can continue to grow my business and hopefully become a multi-unit franchisee in the not too distant future.”

Tamara looks at how others of her generation can be overly cautious and reluctant to take risks.

“We're so scared of making mistakes that we miss out on taking hold of opportunities, which includes an element of risk-taking and throwing ourselves into different experiences.

“If you want to own a business, talk to people that own businesses, read about business, immerse yourself in the environment that’s going to help you achieve what you want and surround yourself with people who want to see you get there.”

Her advice for a fellow millennial with business-ownership ambitions?

“When that right opportunity comes around, take hold of it and run with it!

Take all the knowledge and experiences you have gained, the people you have met along the way and go for it.” n

MAY/JULY 2019 | 42 | WWW.FRANCHISEBUSINESS.COM.AU

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To join a second generation family business phone 0431 649 450 or visit shingleinn.com/franchising/franchising-eoi/ MAY/JULY 2019 | 43 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

SUPERSIZED

When former McDonald’s career corporates Gavin and Raylee McLeod made the decision to enter the franchise world, they had a goal of more than just money. Now the pair is serving up profits with a side order of selflessness.

SUPPORT

By Nick Hall

W

ith more than 65 years of combined experience at the golden arches, the Central Coast husband and wife team know the McDonald’s system like the back of their hand.

Starting out as crew members when they were just teenagers, both Gavin and Raylee have enjoyed illustrious mixed store and corporate careers, with Raylee rising through the McDonald’s ranks to become senior vice-president of operations.

All that changed eight years ago, however, when the opportunity arose for the McLeods to get out of corporate life and into business for themselves, with the purchase of the Wyong McDonald’s franchise.

Since then, Gavin and Raylee have continued to grow their individual network, taking their number of franchised stores to six, but it’s what the pair is doing within those stores that is really making an impact.

The McLeods have been instrumental in furthering McDonald’s partnership with Job Centre, a government-funded initiative that helps Australians with a disability find meaningful employment.

“It’s just something I’ve always done, even before there was such a thing as Job Centre,” Raylee says. “During my corporate career, that wasn’t something that I was directly involved with because it just didn’t fit, but then when we bought the restaurant, from day one, we started. As we bought more stores, we just broadened that over those restaurants.”

Their contribution isn’t small by any means; of the 1100 workers employed across the six franchises, around 12 per cent are people with a disability.

“We’ve helped Job Centre as employers where there are no rebates available, that’s not a driver at all,” Gavin reveals. “We hire MAY/JULY 2019 | 44 | WWW.FRANCHISEBUSINESS.COM.AU

people who have run out of subsidy at different employers and they get shifted on, we really try to help out as much as we can.”

In many cases, people with a disability struggle to find employment due to a lack of work experience, but as Job Centre trainer Ash Mackinnon will tell you, all it takes is someone like Gavin or Raylee with the patience, business acumen and social conscience to get the ball rolling.

Ash has worked alongside the Central Coast franchisees from day one, spearheading the training and support side of their disability employment efforts, and he’s seen first-hand just how important the program is.

“I come in as the support, but the management are really involved in coming up with solutions. The good thing about Gavin and Raylee is that they have a long-term picture, we’ve had some workers employed through the JobAccess program who have been here for five, six and seven years,” Ash says.

“McDonald’s is very repetitive, so when things arise that are out of the ordinary like this initiative, they really get behind it.”

The Job Centre trainer admits that while the job can be challenging at times, having the total support of Gavin and Raylee allows him to bring out the best in his clients.

“You get a lot of people who are very methodical, so there are all these jobs, in corporate, supermarkets, all over where these workers can be a real asset,” he says.

“We like the term ‘Focus on their ability, not on their disability’.”

EMPLOY THEIR ABILITY It’s exactly that attitude that government entity JobAccess is attempting to capture with its latest “Employ Their Ability” campaign, in the hope more small business owners take Gavin and Raylee’s lead.

In late 2018, the employment resource centre released the findings of a nationwide study into employment among people with a disability, revealing that only 53 per cent of Australians with a disability

are participating in work, compared to 83 per cent of those without.

The research showed that while many business owners were open to the idea of employing a person with a disability, many lacked the confidence to make the relationship a reality.

“Sometimes it’s not easy, but we don’t like to give up,” Raylee says. “Sometimes you’ve got to have a win, and when you have a win, you realise that it’s all worth it.”

Her advice for other franchisees looking to make a positive change is simple: trust your people and remember that no two workers are the same.

“You have to tailor the program to fit, it’s very much an individual thing. Some of the employees just can’t do the customer service piece, they would rather just do something repetitive, or offer maintenance and accept deliveries. Other employers should really look at their business and think ‘Where can someone add value that I could easily manage, help and develop?’”

“We just try and find something that suits and sometimes it doesn’t work out, but we always say, let’s be a positive first step.”

Gavin and Raylee’s Wadalba outlet was the first step in what has now become a successful McDonald’s career for spritely 24-year-old Chris Crocker. Born with an intellectual disability, the die-hard Central Coast Mariners fan joined the outlet three years ago and hasn’t looked back since.

“This was my first job, and I’m absolutely more confident for being here,” Chris says. “I mainly do table service and table delivery, that’s where I’m getting a lot of compliments on how good my customer service skills are. I absolutely love what I do, so I’m very happy.”

Over his time at McDonald’s, Chris has developed into an irreplaceable asset and a true barometer for the customer service success of the business.

“Our staff have embraced Chris like he’s a superstar and that’s great for our staff morale. While you don’t know what that brings to your business, you have to think good staff morale improves customer service,” Raylee says.

The Central Coast franchisee believes

MAY/JULY 2019 | 45 | WWW.FRANCHISEBUSINESS.COM.AU

that small steps are big victories, and in the rare case where the working relationship with a disabled employee comes to an end, her commitment to finding a solution does not.

“Often, someone comes in who hasn’t ever had a job, so we want that experience to be a positive, even if it doesn’t work out,” she says. “If they’ve had a job at McDonald’s on their resumé, it gives them an opportunity to go on to something more. We always talk about how we can get them into another job first.”

“With someone like Chris, it’s not about ability or disability, he’s just an asset to the business,” Raylee says. “On a lot of our Google reviews, people talk about Chris or the other workers we have in our network, it’s amazing.”

JUST GOOD PRACTICE The pair’s commitment to equal opportunity employment has been met with resounding support from the local community, which Raylee says has been significant not just culturally but also financially.

“It’s just good for business,” Raylee says. “Your customers appreciate that you’ve helped somebody get a job and try and find a solution for someone who has a disability. Customers have proven to us over time that they would prefer to come to us over other businesses because of it.

It’s just good practice from a corporate responsibility point of view.”

Other franchisees and small business owners would be wise to heed their advice.

In 2013, the pair was awarded McDonald’s highest licensee honour, The Golden Spatula, but despite an abundance of accolades, the former career corporates believe their biggest achievement has been their disability empowerment.

“We’re lucky to own profitable restaurants so it’s important to give back,” Raylee says. “This is just something that we’ve chosen to be our focus. It could have been sporting teams or whatever, but this is more important to us as individuals. We think it’s good for our people to have a bit of a heart.” n

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LEADERSHIP

Fresh faced

Stellarossa

Cafe chain Stellarossa and retailer Carpet Court are sporting new looks.

A

fresh logo, a refined colour scheme, a contemporary layout - all these can easily invigorate a brand.

New Stellarossa cafes are sporting a fresh look as the chain works on expanding business models to include a drive through.

The first drive through outlet at Sippy Downs on the Sunshine Coast was set for a mid April opening.

Further expansion includes a further four cafe outlets scheduled to open by September.

Upcoming sites will be liveried in the brand new look showcased by the

just-open store at Pumicestone Village in the Caboolture/Bribie Island corridor.

Founder and franchisor Darren Schulz tells Inside Franchise Business about the thinking behind the new design.

“We wanted to create a warmer and more comfortable environment for our customers. Our brief to the designer was to create a a more traditional cafe feel with elements of European cafes and bars that are decades old and stand the test of time.”

Schulz says the store design avoids a literal translation of the traditional dark and heavy European cafe and retains some of the lightness familiar to Stellarossa customers.

Carpet Court MAY/JULY 2019 | 47 | WWW.FRANCHISEBUSINESS.COM.AU

Expansion continues for the Queensland-based cafe chain. There is a lot of opportunity in the home state right now, says Schulz, but the business is geared up for Australia-wide growth.

There is a target of up to 12 drive through outlets to launch over the next two years.

Carpet Court has launched a brand new-look alongside its largest brand campaign.

The aim is to create a brighter and more approachable image as well as inject inspiration and energy into the brand.

A new logo, the rebrand and advertising campaign (‘Dream it. Style it. Live it’) was developed by Carpet Court’s board and executive team.

The new look extends to external signage and all 209 stores will be rebranded by the end of this year.

Carpet Court chief marketing officer Kara Norris says “We know that consumers today are more sophisticated than ever before, so we needed to prove that we’re on top of the trends.

“The rebrand and new campaign aims to connect with our consumers at the ‘dream it’ phase, the very start of their renovation journey, and show them that Carpet Court can help put their home dreams together.”

The creative strategy aims to connect with consumers during the inspiration phase by creating a moodboard look-andfeel using a mix of styles and products in a stream of moving inspiration.

Part of a comprehensive integrated campaign, the first 30 second brand TVC will be followed by six further ads focused on trends. The marketing strategy is to add tactical versions throughout the year.

The media strategy to support the new look covers broadcast, digital, social media and print. n

LEADERSHIP

ARMY MANOEUVRES

How one military veteran swapped the battle field for business.

A

ussie army veteran Dale J Thorson is now the owner of two My Home Watch Gold Coast franchises, serving the northern areas of the Gold Coast.

So how did Dale manage this transition into the business world?

“I decided to take a year’s leave, six months after returning from Afghanistan in 2012. I felt I needed a change and was ready to move into a new beginning after returning from service in Afghanistan “It was just an easier process for me at that time to take a year leave and move towards discharge than to remain in the organisation and jump through the hoops of the discharge process.

“The transition out of the Army I found very tough mentally, as it was all so different. I essentially left a family to venture out on my own. It took me some time to adjust and find a place I could fit in to.”

Securing a job with LJ Hooker in 2013 gave him the chance to learn property management. Dale then

spent 12 months as a facilities manager within the commercial property division.

But an opportunity to return to Afghanistan as private security for the Australian Embassy was too good to miss, and it allowed him time to assess his future.

Dale says “It has always been clear to me from a young age that I loved property and that at some stage I would be in business for myself.”

And that’s what brought him to the My Home Watch franchise.

Dale J Thorson

A FRANCHISEE LIFESTYLE “It was as if all my experiences led me to finding this franchise opportunity.

The biggest barrier for me was trusting myself and that I had what it takes to survive in business. I love the fact I am helping the people of the Gold Coast community at the same time,” he says.

“My Home Watch franchises reach from Surfers Paradise, North to Ormeau and West as far as Tamborine Mountain and Canungra.”

Dale loves the lifestyle that a My Home Watch franchise provides.

“Being my own boss, having an outdoors lifestyle and always meeting new people is great way to live.

My Home Watch offers a range

of on demand professional property services including My Boat Watch, My Pet Watch and the most recent additions being My Real Estate Assist & My AirbnbCare. n

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LEADERSHIP

Kimberley Neall

DREAMS COME TRUE IN THIS BEAUTY BUSINESS How Ella Baché is helping empower women in business.

T

wo Sydney-based beauty salon franchisees Kimberley and Stacey reveal the different steps they took to each achieve their dreams with the Ella Baché franchise network.

At just 29 years of age Kimberley Neall is a beauty business success. Kimberley is the proud owner of Ella Baché West Lindfield and says she wouldn’t change it for the world.

Kimberley runs the salon where she was first employed straight out of beauty school and already employs two full-time and two casual employees.

“A matter of days after graduating from Ella Baché college I was offered a job at Ella Baché West Lindfield.” Kimberley says. “It was a dream come true for me.”

She learned the ropes at the West Lindfield salon for three years. Then Kimberley broadened her career.

She was Ella Baché ’s counter manager at two David Jones stores and worked for two years at Ella Baché’s

head office.

“Then an opportunity came along that I couldn’t say no to.” Kimberley says.

“The West Lindfield salon came up for sale – where I had first cut my teeth – and I knew I had to take the plunge into the business world. It was now or never.”

Kimberley says that since buying the salon she has worked very hard but that the rewards are worth it.

“From when I was a teenager I’ve always loved Ella Baché’s products, and I still do. It’s such a reputable brand,” Kimberley says. “That’s why I love where I am right now in life – it’s hard work, but I really believe in what I’m doing and I know in years to come I’ll reap the rewards.”

Kimberley is a relative newcomer to the business world but fellow Ella Baché franchisee Stacey Small has more than 27 years experience in skin care.

Stacey also began her career at the Ella Baché College in Sydney’s northern suburbs.

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LEADERSHIP

Pippa Hallas

IN THE BEAUTY BUSINESS FOR 27 YEARS “When I was little my grandmother gave me a small manicure set, and I’ve been hooked on good grooming ever since.”

Stacey reveals. “I like making people feel good about themselves so it has always been the career for me.”

Stacey worked at Ella Baché salons at Dubbo and Edgecliff, as well as the Ella Baché counter at David Jones before taking the giant leap into business ownership.

Her business-owner father encouraged her to make the change.

“I had some great experience in salons and retail and I had been mentored by women in the industry whose work practices I really admired,” Stacey says. “I adopted these same work practices in my own first business and I’m very glad I did.”

Stacey’s first shop was a small single owner-operator business in Newtown.

“I worked six days a week by myself in the early days and it was hard work. But then word started to spread and the business grew to a point where I could finally employ people.”

Stacey went on to own and operate a number of Ella Baché salons including her current store at Broadway. Stacey says she’s now in the enviable position of

The West Lindfield salon came up for sale – where I had first cut my teeth – and I knew I had to take the plunge into the business world.

It was now or never.

being able to take a step back and reflect on the philosophy of her small business empire.

“I think the thing I enjoy most about being a business owner with Ella Baché is helping to empower other young people who are just like me when I first started. I enjoy mentoring others and get a genuine thrill when I see them achieve their goals.”

BEAUTY BUSINESS SUCCESS Ella Baché CEO Pippa Hallas says the career trajectories of Kimberley and Stacey are typical of graduates of the Ella Baché college.

“Around 28 per cent of our college graduates go on to become Ella Baché franchise business owners,” Pippa reveals.

“Our support doesn’t stop once the

graduation ceremony is over. Our graduates are now ‘our people’ and we actively work to help launch their careers.”

The Ella Baché college was established back in 1963. It is still dedicated to providing training that sets a high standard for therapists in the industry including business management skills.

“We teach subjects that will enable therapists to take on management roles or eventually become business owners. We cover topics like business planning, marketing, and finance management, so that our graduates are more than just skilled technicians. It gives them an advantage in the marketplace and a skill set that is highly desirable.”

“Women rule in this business and our model enables a lifestyle and career path that helps women to dream big and succeed.” n

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LEADERSHIP

NEWBIE BRANDS

TO SNAP UP

HappyPics

Everyone loves a new and exciting brand with plenty of potential and lots of energy.

Check these three fledglings in franchising…

N

ew business concepts invigorate the franchising marketplace. Fledgling franchises also attract buyers keen to get in at an early stage of a brand’s development.

HAPPYPICS

Cute kids captured on camera – what could be more inspiring? That’s the daily reality for a HappyPics franchisee.

The photography business works through childcare centres to create engaging lifestyle images with a difference.

A HappyPics image shows individual kids engaged in an activity or with a fun accessory in a pop-up studio.

Founder and franchise manager Clayton Walker says “We gain the kids’ trust and give them space and time to shine.”

Photographic experience is not required. Instead franchisees need to be

good at relationship building.

“I can teach photography but I can’t teach you to engage with a two year old,” says Walker, who launched the franchise at the Sydney Franchising & Business Opportunities Expo.

The business is about creating good relationships with the childcare centres and families.

“Success is when everyone is happy and buying photos,” Walker says.

Families can view photos on an online viewing platform. There is an exclusive gallery for each child, maintaining privacy and making access easy.

The business owners have built and maintain all the systems.

Behind the scenes the business is a production and printing lab for franchisees.

Once customers are registered, there’s the opportunity for centralised marketing to add to the photo opportunities for special events like Mothers’ Day.

HappyPics offers a range of products from prints to fridge magnets.

Walker has been running the photography business for 15 years, four of these under the HappyPics banner.

The business works with 240 childcare centres already so franchisees could purchase territories with existing customers. There are 60 territories available across the country. In metro Sydney where the company is headquartered, 12 territories are available. A franchise costs $49,500.

ADVANCE FITNESS

Specialist, niche fitness studios have been all the rage. Now with the Advance Fitness launch, there’s a new focus on a full facility fitness space.

Advance Fitness co-founder Clayton Sinclair is excited about the brand’s plans.

“We are firm believers that there is a growing future for full-facility gyms, but

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main growth will continue to be ‘groups’ or franchises. Current growth trends would suggest that consumers value known brands more than ever.

“It is our observation that franchise gyms are more attractive to new buyers as new operators feel more confident with the support. Therefore, we have taken the next step and established Advance Fitness as a full-facility 24/7 gym franchise system.”

Sinclair says “The goal is to offer a full range of fitness services under one roof with options to suit all budgets and fitness levels. We want to provide a place where the whole family can work on their fitness goals.

“With more to choose from, members can try new things and keep their training fresh. By maintaining the ‘fun’, members keep training, keep getting results and keep returning.”

The founders brought extensive fitness business marketing expertise to their gym project, turning their passion

and brand into the 24/7 full-facility fitness concept.

Gym users will find strength and cardio training equipment, a range of group fitness classes, and premium training services such as boot camp.

The business began in 2011. The growth strategy has focused on converting existing gyms to the Advance Fitness brand.

Right now there are six gyms in the business, four in Australia and two in New Zealand.

Sinclair says the business is now ready for expansion with owner/operators heading up the outlets and taking a hands-on role in their business.

FRANK & BEANZ

What’s better than a Mexican food brand? How about a TexMex takeaway that gives you the best of the US, burger-style, alongside the spicy central American cuisine?

That’s the approach that the owners behind newbie franchise Frank & Beanz have taken. Not that they are novices in the field. Far from it. These two have been operating two stores in the nation’s capital for nearly three years and are confident now is the right time to expand.

The restaurant picks up on the booming healthy and fresh fast food trend and adds its own twist: think a Mexican style schnitzel and chips, chilli cheese fries, the Aussie dog.

Of course there is a coffee and muffin deal too.

Based in Canberra DFO centres, the business has an ambitious target - it is looking to bring on 10 new outlets this year.

The turnkey business can be bought for between $120,000 and $200,000 and there’s the offer of a month’s free stock for the first few franchisees.n

Those who say business and pleasure don’t mix have never been to Hello Harry. The burger joint is sweeping through the country like wildfire, leaving nothing but a trail of seriously satisfied customers in its wake.

Hello Harry’s first burger bar opened its doors in April 2014 in Maroochydore’s renowned Ocean Street Entertainment precinct and very quickly became a smash hit amongst locals who couldn’t get enough of the quality burgers and cold Craft Beer.

Are You: • Looking for a Lifestyle Change?

• Looking for a Business that is heavily involved in the local community • Get a serious buzz by exceeding customers expectations?

Yes? Then speak with us today about opening your own Burger Joint in your chosen area.

Hello Harry prides itself on making all our delicious food fresh in store - from our 14 hour slow cooked pulled meats, burger patties, sauces and dressings - our crew do it all.

As a Franchisee you will receive full on going support across all areas of your business from a dedicated hard working support team, low set up costs and experience the satisfaction of seeing people love the Hello Harry experience.

HELLO HARRY THE BURGER JOINT PRESENTS OPPORTUNITIES AUSTRALIA WIDE, DON'T HESITATE CALL US TODAY. CONTACT US NOW AT WWW.HELLOHARRY.COM.AU OR EMAIL ENQUIRES TO HH@HELLOHARRY.COM.AU

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A FRANCHISE FOR THE st

21 CENTURY

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

You will receive comprehensive training and ongoing support and the entire Australian geographic region will be your territory.

You will get to work with some of the world’s and Australia’s leading brands, working with a range of departments and personnel from marketing, sales, HR, finance…even the C-Suite. If you enjoy business, this is ideal for you.

A PowerfulPoints’ franchise stands out like an orange zebra.

Why? Well, because it really is unique.

1. It is a franchise that lets you use your business experience and relationships to build an asset and a substantial income.

2. It’s a white collar franchise that isn’t financially based (which, given the Hayne Royal Commission’s findings, can only be a good thing).

3. It has low fixed costs, and you can work from home.

4. There is no other franchise offering like this available anywhere, and there will only be around 25 in Australia.

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

5. Every business in Australia is a potential client, with the bigger the business, the more likely that they are to use PowerfulPoints’ services.

6. One of the most satisfying parts of our work is the thanks and accolades we receive from our clients and your clients really will thank you, 89% of our client’s said we made a significant difference to the outcome of their project.

LEADERSHIP

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A DAY IN THE LIFE OF

JULIE PATEMAN What drives this Oporto Queensland state manager?

Q: What’s the first thing you do in the morning?

JP: More often than not, the morning starts with going for a run. Whether at home in Brisbane or travelling interstate, I always pack the running gear!

Q: What time do you start work and where?

JP: I usually start at 7am answering emails and putting together my to do list for the day. I think it’s important to start the day with a clear focus on priorities and also begin with some quick wins to set you on the right path for the day.

Q: How do you manage your day?

JP: It may be a little old fashioned but I live by a ‘to do’ list. I find it helps me be the most efficient and productive. I even use one in my personal life!

Q: What are your responsibilities?

JP: Most importantly I’m responsible for the success of every franchisee in Queensland. When I first started in this role, Oporto CEO Craig Tozer and I set a five year plan to double the Oporto footprint in the state. To achieve that goal, all our current franchisees need to be successful and every future restaurant needs to be in the best position to succeed.

In addition we have recently rolled out a new customer experience model which has taken our restaurants from a traditional fast food model to a truly casual dining experience. I have led the retraining program for the state.

Q: What do you enjoy most about this role?

JP: I love working with people and mentoring franchisees and my team to be the best they can be. As Queensland is a developing market, I have the ability to push the boundaries, not only in marketing but also in-restaurant offerings. For instance, 50 per cent of our restaurants now offer alcoholic beverages with instore dining. Queensland is successfully leading the charge in this area which is another revenue stream for our franchisees.

Q: What are the biggest challenges in this job?

JP: Oporto is a growing brand here so we face challenges with brand awareness and consumer consideration. I come from Sydney where Oporto is entrenched and it still surprises me when customers aren’t aware of our famous Bondi Burger or Flame Grilled Chicken.

This is a challenge that we are overcoming through targeted marketing, social media, PR, events, sponsorship and our fabulous mini food truck ‘Sobre Rodas’..

Q: What is a typical day in the office?

JP: Every day is different, and I rarely visit the office. I’m

usually out in the market visiting franchise partners in their restaurants, conducting new site evaluations, meeting with shopping centre management and marketing teams or meeting with local community groups or sports teams. I’m always looking for opportunities to promote the brand and participate in community events.

Q: How often are you travelling and why?

JP: I’m always on the road, either around Brisbane, on the Sunshine Coast or Gold Coast. Geographically we have a large area to cover in South East Queensland. Head office is in Sydney so there are times where I travel there to attend meetings.

I worked predominantly in an office for 10 years, so being out in the restaurants and in the community is a refreshing change and one that I absolutely enjoy.

Q: What’s the biggest motivator for you on a daily basis?

JP: There are two key motivators.

1. Working with our franchisees to improve their businesses and increase their weekly sales. Since moving here and working with franchisees I have seen a distinct change in motivation, enthusiasm, engagement and results – what a great motivator!

2. Though I’m based in Queensland we are an amazing national team – both head office team and franchisees alike. We all understand and support the brand goals, we work cohesively as a team and we are there to support each other always.

Q: What time do you finish working for the day?

JP: Usually I arrive home about 7pm. Oporto restaurants are open for dinner and late night so sometimes I’m out checking on dinner operations or doing mystery shops. When you love what you do, there are no boundaries of time.

Q: What’s the best thing about working at Oporto?

JP: Oporto really is like one big family, we call it La Familia.

We truly support each other and offer encouragement and mentoring. Oporto offers many opportunities to grow professionally and stretch yourself and your personal goals.

I lived in Sydney for over 30 years and had not considered living anywhere else until I joined Oporto. Our CEO believed in my ability to drive positive change and offered me an opportunity to become the state manager and needless to say I have embraced the opportunity.

It didn’t take long to acclimatise to Queensland living - I love the weather, the friendly people and our amazing team of franchisees. They are the reason I get up each day. n

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DELIVERING AUSTRALIA + BEYOND, THE BEST OF SPECIALTY COFFEE FOR 21 YEARS Premium handcrafted coffee freshly roasted in Melbourne twice a week.

FRANCHISES NOW AVAILABLE Learn more at hudsonscoffee.com.au/franchising

FOCUS

SPECIAL FOCUS:

No experience required!

Hard work and commitment will help you build a successful franchise and you may not need ready-made experience.

A

good franchise will allow you to leverage the knowledge, practical processes, marketing and training expertise already honed by the franchisor. It will give you the chance to build something for yourself without you needing to demonstrate proficiency before you even start.

You will want to be confident that the training offered is comprehensive and relevant, and that it fills in any gaps in knowledge you might have.

It makes sense to look for substantial upfront support, so that opening the doors to your new business is as stress-free as possible and you have experienced people on hand to get you through the challenging first few days.

Of course, investing in a business sector you are not familiar with does mean you’ll need to do extra research to get an understanding of the market viability, and where your shortlisted franchise ranks in terms of performance and potential.

It will be important to gain insights into what fuels the customers’ spend, what innovations the business is introducing to keep it ahead of the competition, and to really grasp the critical financials that will make or break your franchise.

These eight franchise chains all seek novices in their markets – because accountants can become bakers, corporates can dive into a pool business, and health professionals can sign up to a hair salon.

BAKERS DELIGHT

“One of the most popular aspects of our onboarding process is the hands-on bakery orientation,” says Carly Mackay, Bakers Delight’s group franchise development manager.

“This is two days of hands-on training in a live bakery and is designed to give incoming franchisees a real taste of what their working life will be like once they are running a franchise of their own. It’s definitely hard work but it’s great fun and a real insight into how a bakery business operates, they really seem to value the opportunity to dip their toe in the water before committing.

“I think they also love the fact that we approach the recruitment process with full transparency,” she adds.

“Purchasing a franchise business involves a lot of trust so we approach the entire process like a partnership and make information on just about every aspect of the business freely available to them. It is a mandatory part of the process for new starters to randomly contact and interview at least three existing franchisees in the network to get their perspective on life as a Bakers Delight bakery owner.

“This sort of full disclosure is really valued by all of our newcomers to the business.”

Years franchising Almost 40 years No of franchise units Over 600 Length of initial training 16 week competency-based and online training Technical training includes: Baking and sales training in a live environment.

Business training includes: Managing operations, finances, wages, cost control, people management and workplace relations.

Implementation of local and community marketing and ongoing sales and production planning.

Help with recruitment Our operations and HR teams are available to support franchisees with the tools and resources to recruit their own bakery teams.

HR support for workplace rules Our human resources team drives the best practice and policies. Information and recommendations are made available to franchisees in the areas of industrial relations, employee relations and other relevant legislation.

What support at opening?

Our hands-on operational team works with our franchisee in the lead-up to either opening their bakery or taking over a new bakery. Our operations team prepares a pre-opening plan and post-opening plan in consultation with our marketing team to ensure the business and franchisee are set up for success.

Opening marketing strategy Strategic marketing support is offered in areas of advertising, media, design, product, pricing, public relations, sponsorship, digital, merchandising market research. Our franchisees also have the flexibility to drive their own local marketing activities with the support of our dedicated local marketing team and operations staff. The local marketing team are very focused on supporting franchisees to connect with their local community.

Is there franchisee benchmarking?

Yes there is benchmarking transparency across financial performance and operation standards within our system.

Franchisees have the ability to review financial and sales performance of every bakery in the network. New franchisees are given contact details of other franchisees in the network and encouraged to speak with them before finalising their agreements.

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What HO support available?

Property, projects, finance, operational, training, supply chain, IT/POS service desk, marketing, product development, franchise development and human resources.

Supplier deals Our supply chain team negotiates supply agreements and works through distribution issues so as to maximise the collective buying power of the network. All suppliers are external to the business to ensure the best possible ingredient costs can be negotiated.

IT software The information service team maintains a culture of continuous improvement and innovation to deliver the best information service solutions for our franchisees.

Lead generation/call centre This is handled through our franchise development team which supports and nurtures franchisees through the recruitment process. This includes support when purchasing a suitable business and assisting those who wish to sell their business.

How is ongoing training delivered?

We offer on going training workshops in areas such as financial management, production scheduling and staff development. We also offer an e-learning platform called "Breaducate" to assist franchisees in the training of their staff.

Is there formal franchisee mentoring?

Our regional and area managers have a wealth of knowledge and experience to provide high quality operational support to our franchisees. Franchisees can also be mentored by other, more experienced franchisees through out the network.

Income guarantee No income guarantees Total investment cost The cost of an existing bakery can vary from $50,000 to over $1 million depending on a number of factors such as turnover, operating profit, state of the bakery and equipment as well as the length on both the tenancy lease and the franchise agreement. The cost of the Bakers Delight franchise agreement is $5000 for every year (e.g. 5-year agreement = $25,000).

FOCUS

FERGUSON PLARRE

Peter Collins, franchise recruitment manager, says franchisees undergo a very comprehensive screening program as part of their application process.

As part of this potential franchisees have an in-store placement and speak with existing franchisees about any obstacles they may have encountered.

“Combining this with meetings held with our department heads generally covers off on what they can expect when they finally start in their store,” says Collins.

“We recognised franchisees felt overloaded with information in the four week pre-opening program. So we developed a supplementary program.

Any new franchisee goes into our 26 week post-opening program which provides weekly focus on detailed aspects of the business as they are running the store.”

In conjunction with the pre-opening training program, the in-store support provided by the training department is critical.

“The handover from our trainers to our support managers at the end of this week makes for a seamless transition for the franchisee,” Collins says.

Ferguson Plarre also recommends new franchisees use bookkeepers or accountants to help them with the admin, at least for the initial phase.

Years franchising 32 years No of franchise units 76+ Length of initial training 4 weeks Technical training includes: Stock weight and quality Merchandising Store and staff presentation Coffee Visual management Ingredients and shelf life Food handling Business training includes: Guest service Sales performance Recruitment Marketing

Finance Business planning Culture and values Help with recruitment Yes, and staff training HR support for workplace rules Dedicated hotline and franchisor HR department .

What support at opening?

Training department, barista trainer and business support manager.

Opening marketing strategy Specific local campaigns Frequency and type of BDM support Instore every 3 weeks and 24/7 phone and email support.

Is there franchisee benchmarking?

Yes on key KPIs What HO support available?

Training, marketing, legal, leasing, shopfit, finance, bakery, HR, coffee, business support manager.

Supplier deals Yes IT software Shift 8 and Xero Lead generation/call centre In-house How is ongoing training delivered?

10-star program provides feedback on areas of focus.

Is there formal franchisee mentoring?

Yes. POD groups network franchisees into clusters.

Income guarantee No Total investment cost $320,000–$400,000

JUST CUTS

Just Cuts only employs fully qualified stylists, so owning a Just Cuts Salon means you have a knowledgeable team to support you, no hairdressing experience required, and the flexibility that goes along with being your own boss. With the facilities in place to guide your business without being in the salon every day, you can own a franchise and avoid the 9-5 grind.

“Once it’s set up the business is easy to manage, giving us time and freedom to pursue other goals” says franchise owner Anna Duric. “As a Just Cuts franchisee, we have the ability to work on our business anywhere in the world and the flexibility to incorporate work and leisure.”

Just Cuts owners choose how much they put into their businesses and what success looks like to them.

“I enjoy working for myself. There are always challenges with running your own business, but my time is more flexible around family responsibilities and learning is constant which keeps me on my toes” says multi salon owner Sonia Holgate. “I have more independence and I work as many hours as I need too. I know every day what is happening in my salons and how they are performing. I really believe you need work life balance and having a good team with mutual trust and respect, allows that balance. My businesses have become my passion.”

Years franchising 29 years No of franchise units 220 Length of initial training 2 days Technical training includes: Face-to-face new owner training: operations team stay with the owner for first 2 days to 1 week of trade. All stylists complete online training, face-to-face training for operations as well as Justice Professional. We complete national road shows to all salons each year.

Business training includes: Just Cuts is a turnkey solution for entering business. We will guide and support you through the entire process of opening your very own salon.

We have a proven, successful model that will ensure that all aspects of salon fitout, staffing and grand opening marketing will run smoothly every step of the way.

Just Cuts business system gives you access to current training techniques, pre-opening procedures and a pre-opening marketing campaign.

Help with recruitment Recruitment support from placement of adverts to the interview and selection process. We will ensure that you have a team of experienced stylists and help with the selection of a team leader to drive your busines on the salon floor.

HR support for workplace rules Detailed operations manual with all policies and procedures.

What support at opening?

Our team ensure your salon is completely set up and staff are trained, and stay with you for the first two days

of operations to ensure you are comfortable with POS system, operations, empowerment service model.

Opening marketing strategy Our dedicated academy team will also put together a bespoke grand opening marketing campaign and take care of ongoing marketing. This includes regular national promotions, local area marketing support, advertising, communications, public relations and social media content production.

Frequency and type of BDM support From the time a franchise enquiry is made, a dedicated BDM will be in touch via phone call to undertake the screening process. This also involves sending out a franchise information pack, information about sites, leasing and negotiation guidance and assistance. The support doesn't stop there and the BDM team will continue to touch base with new owners once they open their salon. It is likely that the franchisee will go on to open more than one salon: statistics show that over half franchisees own more than one salon.

Is there franchisee benchmarking?

Yes across sales, retail, stylist performance and other productivity measures. We have technology in place to show us these measures across the board including apps that are easy to use and available at franchisee and stylist levels.

What HO support available?

You will have a dedicated academy team behind you for marketing, operations, leasing, training support.

This includes quarterly owners' meetings and annual conferences to collaborate and network with other owners and suppliers.

Supplier deals Suppliers are tried and tested to see if the fit is right for the brand. There is also assurance and the power of the

brand to negotiate group deals and rates due to the size of Just Cuts.

IT software Integrated reporting and measuring through an online platform that also includes a convenient app for customers, franchisees and stylists.

Lead generation/call centre No How is ongoing training delivered?

Regular roadshow events across the country upskill stylists to keep skills current and up-to-date.

E-learning platform delivered to stylists via an app to keep up-to-date and skills across the business from induction and ongoing.

Quarterly owners' meeting for franchisees and an annual conference to network and hear important company updates and initiatives.

Is there formal franchisee mentoring?

Yes by an open-door policy for owners to be able to reach out and approach top management at any time.

GM also provides insights into business data and one-on-one meetings.

Our owners' Facebook page is a wonderful way to connect with owners across the network, share ideas, solutions and help each other build profitable businesses.

Income guarantee Fixed fee franchise so your earning potential is not limited.

Total investment cost In-line salon: $150,000–$250,000 Kiosk salon: $75,000–$100,000

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INXPRESS

InXpress is a parcel, freight and shipping specialist. The strongest and most attractive aspect for a new InXpress franchise partner is that you’ll benefit from the intensive two weeks of franchise business training. The company will educate you in all aspects of business, giving you the confidence to hit the ground running from day one. You’ll receive access to the unique InXpress four-step consultancy process, systems and software training and carrier and logistics knowledge, putting you in a powerful position to be successful as an InXpress franchisee.

Years franchising 20 No of franchise units 330 Length of initial training 10 days Technical training includes: Instructor lead classroom training, online training modules and regular field visits. These training methods will cover off carrier products, software and systems and of course our sales and consulting training.

Business training includes: Twice-weekly business coach calls, group calls, regular training both online and instructor-led. This training focuses heavily on small business ownership to help our franchisees progress from "owner operator" to small business owner and expert.

Help with recruitment Full HR toolkit, cost calculator, P&L review, templates for job ads, job descriptions, interview tips, tricks and questions, resumé tips.

HR support for workplace rules Full toolkit What support at opening?

Intensive 12 month onboarding training Opening marketing strategy Complete and comprehensive marketing strategy Frequency and type of BDM support Twice-weekly individual calls and once-weekly group call for onboarding franchisees (first 12 months).

Is there franchisee benchmarking?

Yes there is complete benchmarking, an open transparent system showing all key metrics across all franchisees.

Supplier deals Up to 82 per cent discounts across supplies like TNT, DHL, UPS. IT software Multiple world class franchise and customer-facing software systems.

Lead generation/call centre N/A How is ongoing training delivered?

On the road, classroom, online and during our twiceyearly conventions.

Is there formal franchisee mentoring?

Franchisee peer-to-peer mentoring Income guarantee N/A Total investment cost $64,950 + GST

NIGHTOWL

No experience in business or retail? NightOwl, Australia’s first 24-hour convenience store, offers an extensive training program designed to help you gain the confidence and skills to be a successful business owner.

NightOwl’s compulsory five-week training program for new franchisees is designed to give you the tools and knowledge to successfully operate a NightOwl franchise. During this training, you’ll benefit from access to a dedicated national training manager who can answer your questions and facilitate hands-on learning.

The company’s franchisees receive additional support and training through the NightOwl e-learning system (NOEL). NOEL provides online and real-time training for you and your staff at the touch of a button, together with a broad range of other helpful features, including: • reports and statistics • marketing and promotional collateral • business-specific document templates • latest NightOwl news and forums.

Years franchising 32 No of franchise units 75 Length of initial training 5 weeks; 7 weeks for service stations Technical training includes: Operational Business training includes: Marketing, sales, financial Help with recruitment Yes HR support for workplace rules Yes What support at opening?

Area manager

Opening marketing strategy Local flyers Special offers Owl Club (loyalty program) Frequency and type of BDM support Every few weeks and as required.

Is there franchisee benchmarking?

Yes What HO support available?

We’re committed to supporting our franchisees every step of the way through regular training, round-the-clock support and even awards evenings dedicated to celebrating success.

Supplier deals Yes

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IT software Coyote Lead generation/call centre No How is ongoing training delivered?

Instore Is there formal franchisee mentoring?

No Income guarantee No Total investment cost $400,000—$850,000

FOCUS

GUTTER-VAC

Warren Ballantyne, CEO of Gutter-Vac says franchisees come from all backgrounds: from the retail industry, automotive industry, engineers, professional services and even an ex-bank manager.

Gutter-Vac has its own registered training organisation (RTO) that conducts safety training “Unlike most RTO companies doing this work, we don’t just sit in a classroom, we take them out on a training roof to teach them practically.

“Many new franchisees are entering owning their own business for their first time. So it isn’t just the technical aspect where franchisees are novices, they are also new to business. Because of this we put a large focus on business ownership and the skills required to make their business a success,” says Ballantyne.

“At Gutter-Vac we have worked really hard to ensure that our peer to peer support is second to none because this is the greatest tool for a new or novice coming into our brand.

“We have found that our existing network of franchisees take what we have done at training with a new franchisee and then help us (at head office) support that new franchisee from things as simple as a small technical issue to how to quote a job through to encouraging, supporting and celebrating them as they grow their business.”

Years franchising 20 years No of franchise units 80+ Length of initial training 7 days Technical training includes: Safety/at heights training On-the-job practical training Quoting Machine servicing Nozzle making Add-on services (theory + hands on) Business training includes: Marketing Social media Sales Bookkeeping Reporting/admin Admin/customer flows Business plan/marketing plan (tailored to the franchisee) Help with recruitment Training program in our online training portal (post initial training).

HR support for workplace rules We use HR Central at head office so this support is referred to our franchisees.

What support at opening?

Mobile business so no store opening required We do have an opening campaign process with checklist Business coaching support Technical support Quoting support

Opening marketing strategy We don't have a national marketing fund at GutterVac but the franchisee leaves training with an individual business plan, marketing plan and also an opening campaign process with checklist plus on-hand support.

Frequency and type of BDM support Weekly coaching from external business coach who Gutter-Vac head office has contracted and pays for, who also supports the existing franchisees. Once up and running, calls may go fortnightly, monthly or quarterly depending on the level required by franchisee and their results.

Technical support/quoting support on hand as required.

Informal peer-to-peer support as required or we see needed by the new franchisee.

Is there franchisee benchmarking?

Yes. We are currently introducing a new reporting system and online portal where all franchisees' sales figures are available for all to see.

What HO support available?

Everything ... Business, technical, quoting, sales and, we have found, even emotional support as required.

That's what we are here for!

Supplier deals We don't have products, but we have many suppliers for affiliate requirements for our franchisees so we try to source great deals for them including insurance, new vehicles, finance (machinery, vehicle and business), accounting and bookkeeping, social media, even airfares for conferences!

IT software Dedicated IT support available for direct contact

from franchisees (they don't have to go via head office) and all included in their franchisee fee – no additional charges.

Lead generation/call centre We have IVR system through Telstra so if someone calls our national 1300 number, the customer simply enters their postcode and the number is automatically diverted to the franchisee who owns that territory.

Head office also has a national contracts manager on staff for any contracts that wish or need to be handled by a single contact point (eg. Defence force work).

How is ongoing training delivered?

Business coach Online training and resource centre Library and "portal" for documents or materials Peer-to-peer support Closed Facebook group Annual conference Technical training if required (generally handled one on one) New services/products training sessions as required Is there formal franchisee mentoring?

Yes. We use a contracted external business coach (who works from our office) to provide business support.

We also set up peer-to-peer support as needed or as appropriate to each franchisee.

We tailor our mentoring to the franchisee.

Income guarantee No Total investment cost $79,400 + GST + freight (includes training & machinery)

THE CHEESECAKE SHOP

The Cheesecake Shop commissioned a franchisee satisfaction survey in September 2018 that in part reviewed the importance of particular services from the franchisor. IT support, competitively priced ingredients, advice and support from the field team and brand advertising were some of the highest rated services provided by the franchisor. Area manager support and advice was rated higher than the franchising sector benchmark.

Practical hands-on training for baking, decorations, systems and customer service are regarded of high importance to franchisees.

Years franchising 26 No of franchise units 220 Length of initial training 3 weeks training in our Sydney academy and an ongoing support program instore after completion.

Technical training includes: 2 weeks of baking and decorating training in our Sydney academy with our experienced senior trainer.

Gaining a complete understanding of the day-to-day operations of the bakery.

Business training includes: 1 week of classroom training with a blended approach of video, presentations and hands-on components. Presentations run by marketing team, general manager of marketing and operations,

managing director and broader training team.

Help with recruitment The operations manual and employee hiring and induction process is spelled out for you. We have position descriptions and employment engagement letters, and take all the headache out of onboarding staff through our accounting and bookkeeping services.

HR support for workplace rules A combination of monthly newsletters, email bulletins and national roadshows communicate and educate franchisees about Fair Work compliance with wages, superannuation and other entitlements under the General Retail Industry Award.

What support at opening?

The local field team will be there before, during and after the opening of the store to make sure you have

all the support you need. They will assist you with engaging services such as phone, internet, insurance and staff recruitment.

Opening marketing strategy New store price is a fixed cost of $389,000 + GST and includes $10,000 towards local marketing to support your store opening. This may include a combination of letterbox, newspaper, flyers, handouts, offers, Facebook and digital advertising.

Frequency and type of BDM support The Cheesecake Shop has a dedicated field team in every market and provides business support in all areas including production, customer service, business administration, financial benchmarking and local marketing.

Is there franchisee benchmarking?

Yes. The Cheesecake Shop is proud of its

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POOLWERX

Andrew Kidd, Poolwerx’s chief operating officer, says one of the company’s secrets of success is that the support provided to its franchise partners is intricately linked to the entire franchise’s performance.

“At Poolwerx our number one performance indicator is franchise partner profitability and every action, every decision, everything we do needs to feed into achieving this goal. All our global support centre team (over 40 team members Australia-wide) are remunerated and evaluated on this KPI as well, so our support is totally aligned with enhancing business development and success at a grass roots level.

“The high satisfaction levels of our franchise partners and almost 100 per cent re-sign rate are also indicators that one of our brand’s key strengths is business development and that does not occur without the right support. We truly imbue the ethos at the core of franchising that you are in business for yourself but not by yourself. We put people first, there is no doubt about that. They are our greatest strength and without the right support they would not flourish, and neither would the franchise. If they grow, we do too. It’s simple really.”

Years franchising 25 No of franchise units 340 franchises and 120 franchise partners Length of initial training 3 weeks initial training at Deep End Academy in Brisbane.

3-month completion of Certificate III in Swimming Pool and Spa Maintenance. The training is covered by a mix of theory, online and practical training sessions.

Technical training includes: Franchise partners attend Deep End Academy at the Brisbane-based global support centre. Sessions are classroom based but also infield for operational-based training. Training topics include water chemistry, plumbing, detailed understanding of pump, filter and chlorinator equipment and how they function.

Franchise partners also spend time at commercial training facilities to gain onsite technical experience.

This extends to the support centre, where there are two full-sized pools and retail store set-up to provide a real-world training environment.

Business training includes: Poolwerx has created a custom operational platform through the Oracle NetSuite system that assists franchise partners with all aspects of business management.

During training they become familiar with all business administration including: full financial management – pricing, invoicing, point of sale, cash flow planning, supplier ordering; business planning – marketing (local area marketing, social media, digital marketing, SMS marketing), customer database management, retail management, commercial business development and general administration. During the 3 weeks of training franchise partners will develop their first business plan, including cash flow projections and KPIs. Help with recruitment Support is provided to new franchise partners based on the level of business they are starting, and the need for team members. Ongoing support from a specialist HR team at global support office provides assistance and advice covering: staff recruitment, employment contracts, employment advertising, input during the selection process, correct application and use of employment rates. Regular audits are conducted to ensure all franchise partners are meeting current employment law standards and regulations.

HR support for workplace rules A dedicated team of specialists is available to franchise partners to assist with employment and workplace related issues. As part of their training, franchise partners receive an HR guidebook including details of all employment law relevant to their location,

comprehensive Workplace Health and Safety guidelines and risk assessment guides for their jobs.

What support at opening?

Poolwerx provides a turnkey operation at all levels of business from mobile to retail. Everything from van and site selection to iPad and mobile phones are provided to ensure the opening process is as simple and effective as possible.

Opening marketing strategy A local area marketing plan is developed for every business launch, with elements including: launch mailout to 1000 pool owners in the area, PR, email marketing, SMS marketing, advertising and set-up of social media channels. A team of dedicated marketing and digital specialists at global support centre undertakes regular marketing and brand awareness activity through all of these channels to support continued growth of the brand.

Frequency and type of BDM support Every franchise partner works with a business development manager throughout their Poolwerx business journey. All Poolwerx BDMs have been previous small business owners.

Contact consists of weekly KPI reporting phone calls, monthly face-to-face business meetings and quarterly business planning sessions. Franchise partners can contact their BDM whenever they require support, mentoring or advice.

Is there franchisee benchmarking?

Each business establishes a unique set of KPIs around sales and profitability based on the franchise group average. These are outlined in detailed business plans that are regularly updated. KPIs allow for different business stages and levels, profit margins and gross profit margins.

Franchisee profitability is the number one KPI for the franchise, followed by sales and franchise satisfaction.

What HO support available?

There are 49 support staff specialists available, covering HR, marketing, law, finance, IT, commercial development, operations, retail, supply, field support, business systems, technical and franchise development.

Supplier deals Franchise partners are provided with industry-best pricing and product options. They benefit from consignment stock arrangements for high-ticket items for all new business openings.

They also enjoy extended credit terms to coincide with their business retail store openings to ensure payment and trade terms are aligned and reduce undue financial pressure in the start-up phase.

The Poowerx Partner in Profit (PIP) program sees our supply partners offer extended warranties to

support world-class product and set seasonal specials to drive promotional activities to the client’s pool.

They also engage and participate in our learning and development programs to develop industry-best technicians and retailers to ensure complete consumer confidence in our product and our brand.

Our PIPs also contribute to our franchise excellence program (FEP), providing funding support to our franchise partners who open up new greenfield stores or complete competitor conversion to Poolwerx fitout their stores. It’s a fantastic growth initative that adds to the bottom line.

IT software All IT hardware and software a franchise partner needs to run their business successfully is provided at start-up. e.g. laptops are loaded with the business management system, iPads are configured for all operations and water testing.

Lead generation/call centre Dedicated 1800 number and website that transfers and directs all calls/online leads to relevant franchise partner based on territory.

Data base of 2000 pool owners provided at the start of the business.

Central commercial business portal, with all leads directed to the appropriate franchise partner.

How is ongoing training delivered?

After obtaining Certificate III to start their business, franchise partners can expand their business management skills by completing the Certificate IV in Swimming Pool and Spa Maintenance. This usually occurs once the franchise partner is ready to expand their business with more staff or retail stores.

Development season training occurs between April and August, including regular product training from suppliers.

Sales excellence program is available all year round for franchise partners and their staff with a focus on retail development.

Technical excellence program for retail and mobile, covering upskilling staff in technical side of business and large commercial operation.

Winter workshops are held in each state between May and August, covering a range of relevant business topics.

Is there formal franchisee mentoring?

Yes through business development managers and neighbouring franchise partners.

Income guarantee No income guarantee.

Total investment cost Our turnkey franchises start at $98,800 + GST + van (mobile starting level).

industry-leading position on accounting and bookkeeping, which allows us to benchmark your franchise on a weekly and monthly basis. This includes dashboards, reports, training and education sessions and a monthly feature in our newsletter. This benchmarking has allowed the brand to contain and reduce costs in employment and ingredients at a national average level.

What HO support available?

Marketing, operations, accounting, IT, business development, legal team to manage lease negotations and renewal, and store development.

Supplier deals The Cheesecake Shop manages the purchase and supply of ingredients for all franchisees. The franchisee simply places one online order, receives one delivery and pays one invoice. The Cheesecake Shop is committed

to having a comparatively lower basket of goods in the market. A 1 per cent supplier rebate is paid to the national advertising fund.

IT software Intranet portal housing all manuals and business related information. Online training portal (Cake College) with over 170 training videos for franchisees and staff. Proprietary cash register system with no monthly fees. Xero accounting package and TANDA time and attendance software.

Lead generation/call centre N/A How is ongoing training delivered?

A combination of roadshow training, instore training and group training sessions. The brand has recently launched Cake College with over 1800 users and 170 training videos on all aspects of the business.

Is there formal franchisee mentoring?

No Income guarantee No. Total investment cost A new store costs $389,000 + GST. This includes franchise agreement, documentation and a $10,000 marketing contribution to your store opening.

Existing stores range from $200,000 to $1 million.

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INDUSTRY SPOTLIGHT

BATTLE OF THE

BUNS

When it comes to fast-food favourites, the burger still reigns supreme, but is the growing health conscious and hipster movement threatening to change the burger business for good?

By Nick Hall

Lord of the Fries MAY/JULY 2019 | 66 | WWW.FRANCHISEBUSINESS.COM.AU

S

ome would argue the greasy heydays of lard-laden fast-food restaurants have all but passed, with industry giants now eager to plug their healthy offerings and low-carb options.

The emerging healthy eating trend has given way for smaller players and new entrants to take market share from the big end of town, leading to a consistent pattern of incremental growth.

Bao Vuong, senior industry analyst for IBISWorld, predicts that rising consumer demand for nutritious fast food will continue to drive revenue for the sector, particularly over the next five years.

While for burger brands, it may sound like music to the ears, Vuong warns the shift in ideals will likely impact the operators that have staked their claim on fried and fatty.

“It can be very hard to keep up with constantly changing consumer preferences for fast-food chains,” Vuong says.

“One of the most important factors for fast-food operators in this changing environment is the ability to easily alter menus where necessary to maintain market share. Continuing health consciousness trends will hinder industry performance, especially for traditional operators, as consumers limit consumption of unhealthy food.”

HEALTHY VS HIPSTER On the flip side, however, a generational push-back is seeing some Australian consumers fight the healthy eating fad, seeking out the biggest, most exorbitant feeds they can find.

Driven primarily by generation Y consumers, the “cheat meal” craze has seen a drop in millennial representation at traditional franchise burger chains and healthy-burger restaurants like Grill’d.

According to market research firm Roy Morgan, gen Y visitation at traditional fast-food staple chains McDonald’s and Hungry Jack’s dropped by an average 3.4 per cent between 2012 and 2016, while visitation at Grill’d dropped a whopping 2.6 per cent from 2014 to 2016.

Norman Morris, industry communications director at Roy Morgan Research says the growing “hipster-isation” of the burger industry is something that all chains should be addressing.

“The much-reported trend among ‘millennials’ (a group which spans approximately the first half of generation Z and the second half of gen Y) for hipster culinary experiences cannot be ignored,” Morris says.

“In fact, McDonald’s is actively addressing this, even opening an almost unbranded cafe (The Corner) in Sydney to try out potential hipster-friendly menu items before rolling them out in their stores.”

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INDUSTRY SPOTLIGHT

Huxtaburger

You’ll find that most food retailers focus on freshness, providence, quality and/or health.

While these values are important to Huxtaburger, some of which form one of our key brand pillars, we also want to capture the hearts and minds of our Huxtamers

Huxtaburger

HUXTABURGER Innovative Aussie franchise Huxtaburger is no stranger to millennial-minded marketing. Take a look at the brand’s 21,000 strong Instagram following and you’ll see a familiar pattern of 20-somethings searching for a fun fast-food fix on a slightly more upscale level.

With a full-service bar, sit-down eating and wealth of food-coma inducing fare, Huxtaburger has deliberately established itself as an immersive dining experience that caters to the gen Y market.

“It is a very deliberate part of our brand strategy to not just exist in the food space,” a member of the Huxtaburger executive team tells Inside Franchise Business.

“You’ll find that most food retailers focus on freshness, providence, quality and/or health. While these values are important to Huxtaburger, some of which form one of our key brand pillars, we also want to capture the hearts and minds of our Huxtamers.”

Since entering the QSR market, the brand has solidified its status as a gen Y and Z hub, going so far as to sign a partnership with Twentieth Century Fox Home Entertainment to celebrate 20 years of the iconic TV show Family Guy. “Our brand strategy has had a strong PR focus over the past two years, so when Twentieth Century Fox Home Entertainment approached us, we jumped on the opportunity,” the executive says.

“Not only do we get to provide something unique and exciting and to our Huxtamers, the Family Guy partnership offers massive

exposure to a new audience who are aligned with our target demographic.”

The two businesses collaborated and developed the Griffin Feed, a signature double patty, bacon burger paired with chips, gravy and secret salt, worthy of Peter Griffin himself.

Huxtaburger says the partnership marks the start of a number of new initiatives the brand is exploring this year, with franchisee profitability at the top of the priority list.

“We have a robust marketing plan this year to support franchisee profitability. We are really committed to this area of the business, so much so that last financial year we almost matched every dollar that our stores paid into the Huxtaburger store marketing fund.”

“Our mission is to create a strong brand and a community that people are proud to be a part of, outside of our food offering.

We’re really excited to start exploring that more this year, especially in the digital space.”

LORD OF THE FRIES On the other end of the hipster spectrum you’ll find the developing vegan culture, and in the franchise burger business, one Aussie brand has carved out an industry-leading reputation.

Starting as a vegetarian chain, Lord of the Fries recently made the move to 100 per cent vegan ingredients, addressing the growing health-conscious movement.

“Over the last few years, Australian consumers have shifted towards a plant-based diet that has seen LOTF become even

MAY/JULY 2019 | 68 | WWW.FRANCHISEBUSINESS.COM.AU

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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.

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INDUSTRY SPOTLIGHT

more relevant than before,” co-founder Mark Koronczyk says.

The Melbourne franchisor believes more burger chains will follow suit, dictated by driving consumer demand.

“Burgers and fries have been popular all over the world since the ‘60s but what is growing is that businesses are making ethical choices,” he says. “Consumers are influencing businesses to be more transparent about where their food is coming from and its effects on the planet.”

Similar to Vuong, Koronczyk believes the healthy eating and hipster movement is likely to bring a boost to the industry, encouraging more international players to make a move Down Under.

“There is definitely still room for burger brands to expand across the country,” he says. “A lot of fast food joints are currently trying to tap into the vegan movement and introduce plant-based options to their menus which will hopefully mean some more great partnerships with innovative food tech brands will come to Australia from around the world.”

Lord of the Fries

CARL’S JR. The international welcome is certainly getting through. Since opening its first store in Queensland just one year ago, Carl’s Jr. franchise owner, The Bansal Group has replicated the brand’s immense success in the US, Down Under.

With seven free-standing, drivethrough Carl’s Jr. locations in greater Brisbane, the group is on track to hit its target of 30 stores in Queensland over the next few years. However, Gaurav Bansal, group owner, confirms that expansion will only happen when the timing is right.

“In 2019, we’re continuing to expand in the Brisbane area, namely, Riverview, Forest Lakes, Eight Mile Plains and Berrinba. We’re also excited to introduce locations in regional Queensland this year such as Townsville and Rockhampton,” Bansal says.

The chain’s American influence is plain to see, a factor which Bansal believes is a key differential in the competitive burger business.

“Carl’s Jr.’s American roots allow us to bring something special to the table,” Bansal says. “Being born in the US marketplace, the Carl’s Jr. brand has tenacity. We’ve had to overcome great challenges in our category to compete with the other QSRs in the States and worldwide. I think that sort of influence will continue to grow and shape the way that Australians choose to dine.”

Consumers in this country are continually evolving, which is why Bansal believes it’s important for QSR MAY/JULY 2019 | 70 | WWW.FRANCHISEBUSINESS.COM.AU

The burger market has become over-saturated in recent years and only the strongest brands will survive long term.

and fast-food operators to be agile yet grounded in their key market offering.

“Before entering the burger market, be sure to ask: ‘Why is your burger different?’ and ‘How is your customer experience going to be different than the larger players in the market?’ Understand that well before you begin the franchising journey,” he says.

“The burger market has become particularly oversaturated in recent years, and only the strongest brands will survive long-term. It’s imperative to provide customers with consistent value, quality and choice to maintain good sales.”

petrol stations, to airports and cinemas,” says Hog’s Breath CEO, Ross Worth.

The brand is banking on convenience to drive growth, incorporating a mobile food truck business to coincide with the developing Express business.

“We’ve quietly trialled our food truck at several events in WA over the past few months, from local sporting fixtures to the Adele concert at Domain Stadium where we served more than 500 people in under three hours, and it was clear to us that Australia wants the option to grab a Hog’s fix on the go,” Worth says.

THE FUTURE Like all sectors housed within the food and beverage industry, the burger business is undergoing a period of rapid change.

New technology and the implementation of delivery platforms are likely to alter the landscape forever, however Bao Vuong suggests it isn’t all bad.

“This is a huge positive. Demand

for ordering platforms has grown exponentially over the past five years and to be able to tap into that, however small, is a boon to the industry,” he says.

“Although still only a small part of many fast-food chains’ revenue, this share can be expected to grow over the next five years as demand for convenience continues to grow. This has provided an extra stream from where fast-food chains can generate revenue, which is always a positive.”

As far as consumer tastes are concerned, Roy Morgan’s Norman Morris believes the only constant is change, but as long as convenience, taste and price still play a factor, it’s unlikely Australians will be taking burgers off the menu any time soon.

“Fast food brands wishing to gain an advantage over their rivals in this competitive and ever-changing market need to ensure they have an in-depth understanding of their customers (as well as those of their rivals) and how their culinary tastes are evolving,” he says. n

HOG’S EXPRESS So strong is Australia’s affinity for burgers that chains outside the sector have weighed into the market, introducing innovative models in order to compete.

In 2017, Aussie steakhouse franchise Hog’s Breath Cafe launched a QSR kiosk model to take a bite out of the booming burger industry.

Aptly named, the Hog’s Express fast-food business leverages the successful brand name, while at the same time offering an easily accessible, inexpensive alternative to its signature slow cooked prime rib.

“We know that consumers are increasingly busy and looking for quick, accessible and inexpensive food options, so we’re excited about the future of this model, and the versatility it affords us to pop up anywhere from shopping centres and MAY/JULY 2019 | 71 | WWW.FRANCHISEBUSINESS.COM.AU

Hog’s Breath

INDUSTRY SPOTLIGHT

Chilli business It’s the cuisine that’s brought us beer and burritos, tacos and tequila.

From beans and beef to chicken and chilli, it’s fresh food with zest.

W

hether you’ve got a taste for healthy food with a spicy twist, are passionate about delivering great service, or love the buzz that comes with a fast food environment, there are plenty of choices for a business investment.

Check out the big name brands in the marketplace, and some newcomers

FUNKY MEXICAN CANTINA

GUZMAN Y GOMEZ

MAD MEX FRESH MEXICAN

WHAT YOU NEED TO KNOW Brand started in 2012 Franchising since 2017 Capital investment: $450,000–$650,000 (40 per cent of initial establishment fee required in cash) Length of a franchise term: 10 + 10 years Number of outlets: 3

WHAT YOU NEED TO KNOW Brand started in 2006 Franchising since 2007 Capital investment: $500,000–$1.4 million Number of outlets: 82

WHAT YOU NEED TO KNOW Brand started in 2007 Franchising since 2009 Capital investment: $375,000–$450,000 (+ GST) Length of a franchise term: 5 + 5 years Number of outlets: 65

THE BUSINESS The company behind this brand has more than 20 years of experience running casual dining concepts – 80+ Hog’s Breath Australia Steakhouses are testament to this. The concept for this full-service franchised Mexican restaurant was five years in development and it employs the latest fully integrated technology, including table ordering.

The menu is based on traditional recipes and ingredients but with a unique twist.

IDEAL FRANCHISEE A business-minded individual with a strong customer focus who likes to have fun in business. Franchisees must attain a liquor licence.

THE BUSINESS Guzman y Gomez taquerias serve fast fresh food in three different store formats: food courts, strips and drive-through.

Guzman y Gomez now has 76 taquerias in Australia and six in Asia.

More than 30 taquerias have opened in the past two years.

The brand is inspired by founder Steven Marks’ experience of Latin culture and Mexican food that surrounded him in his home town of New York.

GYG has a strong leadership team with former McDonald’s executives including CEO Mark Hawthorne. Guy Russo, previously managing director of both McDonald’s and Kmart, recently became chair of the board.

IDEAL FRANCHISEE An individual with an entrepreneurial spirit, a head for business and a love of hospitality.

THE BUSINESS The casual dining restaurant brand has an authentic Baja Mexican menu at its heart. It’s based on a fusion of Southern Californian and Northern Mexican cuisine.

Head honcho and founder Clovis Young says, “Our goal is to become the most loved and respected Mexican food brand in Australia.”

Mad Mex Fresh Mexican feeds more than 70,000 people weekly. Over the next three years, the company plans to open more than 20 stores with the goal of growing its Australian footprint.

Franchisees undertake a six-week training course and have ongoing access to online training tools, marketing materials and support.

IDEAL FRANCHISEE An ambitious, self-motivated leader with a strong commitment to customer service and providing a good working environment.

MAY/JULY 2019 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

Your success is our success.

You are just the person we are looking for. We are the global leaders in the booming laser, skin and cosmetic injectables industry, since 2008.

And we want people like you. Spirited. Driven.

Unstoppable.

With our unique 50/50 franchise partnership, we’re with you, working together and supporting each other on the pathway to success. So if you want to run your own successful franchise, be your own boss and take control of your future then let us help you turn your dream into a plan.

Why partner with us.

• • • • • • • • • • •

Guaranteed $100k Salary per annum Award-winning Growth Turn-Key set up with state of the art equipment and design Booming Aesthetics Industry Market Leading Brand State of the art fit-outs On-going training on all products and services Marketing initiatives at the national and local clinic level Human Resource support Recruitment and training of cosmetic injectors Ongoing IT support and a full suite of cloud-based business tools

Let’s do this!

Visit laserclinics.com.au/franchise-opportunities for more information.

Call Liz Seeto +61 402 171 399 or Fiona Harcourt +61 400 303 272.

We’re with you.

INDUSTRY SPOTLIGHT

THE OLDEST … TACO BILL

“Taco Bill” Chilcote arrived in Australia in 1966 from the California–Mexico border. He began his business selling tortillas in 1967. The first Taco Bill takeaway opened in Melbourne five years later and in 1974 the dine-in restaurant model launched. Today there are 33 outlets in the Taco Bill chain.

THE YOUNGEST … FRANK & BEANZ

The newbie on the franchised Mexican restaurant scene, Frank & Beanz has two Canberra outlets and has been operating for two years [read more on page 55].

It’s a Tex Mex takeaway menu, offering burgers, hot dogs and fries alongside Mexican favourites.

SALSAS

ZAMBRERO

WHAT YOU NEED TO KNOW Brand started in 2004 Franchising since 2008 Capital investment: food court model $430,000–$480,000 (+ GST); casual dining $575,000–$650,000 (+ GST) Length of a franchise term: 7 years Number of outlets: 46

WHAT YOU NEED TO KNOW Brand started in 2005 Franchising since 2007 Capital investment: $250,000–$650,000. Kiosk, food court, strip shop and drive-through available.

Length of a franchise term: 7 years Number of outlets: 184 worldwide

THE BUSINESS Salsas has been owned by Retail Zoo Pty Ltd (the holding company for Boost Juice and CIBO Espresso) since 2007.

That gives the brand access to the same growth platform, systems and structures that spread the Boost Juice chain to more than 485 stores across 18 countries.

New franchisees complete a fourweek training program before opening a Salsas business. The cost for the training is $14,000 + GST. Franchisees are supported by an in-house marketing and digital team, which helps deliver national and local area advertising campaigns.

THE BUSINESS Mexican with a mission – to combat world hunger. Every burrito or bowl sold equates to a meal donated to someone in need in the developing world through the Plate 4 Plate initiative. And for every retail item purchased, a meal is donated to someone in an underprivileged Australian community.

The menu puts the spotlight on modern, superfood ingredients. The food is freshly made with gluten- and dairy-free, vegetarian and vegan-friendly options.

The restaurant chain has more than 180 outlets across Australia, New Zealand, Thailand, Ireland and the US. A three-week induction program teaches franchisees about store operations with both subject matter training, and real life in-restaurant experience.

Marketing support includes brand strategy, national marketing strategy, content and campaigns; regional marketing strategy and local area marketing support; creative material and graphic design; digital, website, social media and loyalty.

IDEAL FRANCHISEE Someone who is passionate about the product, customer service and Zambrero’s humanitarian mission. A background in food retail is welcome but not necessary.

IDEAL FRANCHISEE An individual passionate about Mexican food, and with drive, determination and the ambition to own their own business.

MAY/JULY 2019 | 74 | WWW.FRANCHISEBUSINESS.COM.AU

Be your own boss and join the leaders in childhood development NEW FRANCHISE TERRITORIES JUST RELEASED 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.

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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

My franchise allows me to make time for my family, while also encouraging an active lifestyle for the next generation.

Dimi - Soccajoeys Franchisee Owner & Mother

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INDUSTRY SPOTLIGHT

A CUT ABOVE

We take a look at the concerns and trends in the hairdressing industry and talk to key players on the way forward.

H

airdressing has maintained its steady growth and is the significant player in the hair and beauty sector, accounting for 54.8 per cent of the $6.5 billion revenue. But it’s a highly competitive industry.

growth overall continues to be hampered by the focus on low prices, while rising hairdressing wages are offsetting the profit margins.

There are few barriers to entry, and many businesses are operating under price pressure. And with more hotels, airports and day spas now offering hair and beauty services, IBISWorld reports the arena is even more competitive.

The analysis firm predicts a combination of population growth and increased discretionary income will boost demand for hair and beauty services.

For instance, the booming ageing population and higher grooming standards for men will have positive impacts on the sector. There is already evidence of this with the hipster trend – more premium barber shops offering wet shaves and beard trimming services are opening up in metro areas.

Colouring services and discretionary treatments also boost profit margins. The higher priced organic haircare products are a further strong driver of revenue.

By 2024 overall industry revenue is expected to reach $7.4 billion. But revenue

Typically, industry employees are parttimers or casual workers, and the average industry salary is about $32,000, below the national average. Wages have been a contentious point in the sector, with employees concerned about low pay, and employers seeing low profit margins reluctant to boost wages. Low wages are in part a result of underskilled job applicants and an over-supply of apprentices.

Underpayment and wage levels have been an ongoing issue for the Fair Work Ombudsman, Hair and Beauty Australia, the Australian Workers Union and Hair Stylists Australia.

IBISWorld report author Tom Youl writes: “Ongoing legislated increases to hourly pay rates will likely result in wages increasing as a share of revenue over the next five years, constraining profit growth.”

Youl predicts a rise in the number of hairdressing outlets and particularly franchised salons, which typically employ more staff than an independent business.

HAIRDRESSING WAGES

BRANDS IN THE BUSINESS

MAKING THEIR MARK Haircutting and styling services have proved resilient even in times of low employment and consumer restraint, thanks to the perception of a haircut as a necessity.

So how do hairdressing chains make their mark in an overcrowded market?

IBISWorld points to the online coupon business offering discounts as one way business owners try to broaden their customer base. Other operators pitch their businesses as premium services in order to promote better margins. But there has been an increase in the number of salons delivering a top-class customer experience through a prestige ambience (music, complimentary drinks, premium chairs and lounges), which has again driven them to compete on price. The result is subdued revenue growth.

This is a mature and, in some cases, saturated market.

“Industry operators have a high rate of business failure,” writes Youl. “Since barriers to entry remain low, some hairdressers establish their own salon but lack the necessary business acumen to operate profitably.”

It’s a marketplace dominated by independent, owner–operator salons and IBISWorld lists just two national franchise chains that together have less than 3 per cent market share.

The newly renamed Hairhouse tops IBISWorld’s ranking with less than 2 per cent market share. This franchise incorporates a salon and a retail store, stocking hair and beauty products – the retail revenue is excluded from the industry revenue in this report. Franchisees benefit from the dual income stream.

Just Cuts has less than 1 per cent market share. This no-appointment business concept has expanded into New Zealand and the UK, and it has modernised its offering with a kiosk model. Franchisees retail a small selection of own-brand hair products and pay two fixed flat fees for royalties and advertising.

MAY/JULY 2019 | 77 | WWW.FRANCHISEBUSINESS.COM.AU

INDUSTRY SPOTLIGHT

JUST CUTS

AMBER MANNING, GM, JUST CUTS IFB: Price and premium services remain two strong drivers in the sector. How does your brand make an impact on either of these? ​ JC: There are no surprises at the cash register, our customers appreciate the clearly defined fixed prices. ​No discrimination between men and women's haircut prices and special prices for seniors and children.

Our​brand success and strong customer loyalty is due to the quality​service​all our salons provide. ​Convenience​is another driver for service and our online and selfcheck are new features that we are receiving positive feedback on.

IFB: Wages are a significant part of a franchisee’s expenditure – what advice does your brand offer in keeping costs reasonable but in line with industry standards?​ ​ JC: Wages are our salons’ biggest overhead.

We work with our f​ ranchisees​to ensure they roster ​according​to their individual customer flow. Our online POS system provides reports for owners to help monitor customer flow and identify areas for ​ improvement​in their daily operations.

IFB: What about employment standards?

JC: ​We only employ senior qualified hairdressers. A project that we are looking at is taking hairdressers who may be have been out of the trade for some time, taking them through a training academy and offering them a position in Australia, New Zealand or the UK. IFB: How is your brand embracing the trend for organic products​?

JC: We have been changing formulations in line with our clients’ expectations over the last five years. We are pleased to now have no plastic bags.

IFB: What do you predict 2019–20 will hold for your business?

JC: ​We will continue to enhance our technology to make it easy for our stylists and franchisees to run their businesses and assist with ​decision​-making.

A deeper dive into the huge amount of data we collect every day will also define how we communicate with customers and drive ​further​​loyalty​and new customers ​ acquisition​.

FRANK PROVOST

JEAN-FRANÇOIS CARRÉ, CO-FOUNDER OF FRANCK PROVOST PARIS AUSTRALIA IFB: Price and premium services remain two strong drivers in the sector. How does your brand make an impact on either of these distinguishing factors?

JF: Franck Provost Paris salons are positioned at the higher end of the market, offering a world-class salon experience and top quality services and products. We have a unique selling point for our brand in Australia – we sell the style and savoir-faire of Paris and make it accessible for all women. We like to call it “luxe-cessible” – accessible luxury.

IFB: Wages are a significant part of a franchisee’s expenditure – what advice does your brand offer in keeping costs reasonable but in line with industry standards?

JF: Salary packages should be attractive and rewarding to help entice the best talents, but they should include a significant part based on performance/loyalty/reliability rather than just a high base salary.

It is important not only to attract the right team member, but to also retain them, so we like to work with each individual so that they can build their own business within the Franck Provost business.

This way, they have a sense of ownership and can be to a large part responsible for and in control of how much they have the ability to earn.

IFB: What about employment standards?

JF: There has been a shortage in the hairdressing industry, like many other industries (particularly trades) in Australia over the past 10 years.

Having a globally recognised and premium brand like Franck Provost helps us counteract this. Not only do we attract individuals who are familiar with our aesthetic, we also have a lot more

opportunities to offer potential team members compared to independent salons.

Examples of these benefits include career progression, franchise business ownership, working on red carpet events, entering the Franck Provost Artistic Awards, receiving ongoing world-class training, and participating in the many events organised by the franchise (photoshoots, monthly drinks, Christmas party, etc.).

IFB: How is your brand embracing the trend for organic products?

JF: Franck Provost Paris salons globally have a longstanding relationship with the L’Oréal group, including brands such as Pureology, an eco-friendly brand with formulas that are sulfate free, 100 per cent vegan, made with sustainably-sourced natural plant extracts and without animal products or by-products. Later this year we will start working with the new L’Oréal Professionnel 100 per cent herbal hair colour named BOTANEA. Franck Provost Paris salons are also Kérastase Paris Premier Salons, and last year we began working with the Kérastase Aura Botanica range, which combines luxury with environmental responsibility.

IFB: What do you predict 2019–20 will hold for your business?

JF: It should be a year of growth for the Franck Provost Paris salon network in Australia, as there are a few new salon projects in the pipeline. Some new exciting technologies should also premiere at Franck Provost Paris salons, including interactive smart mirrors helping with the consultation between the hairstylist and their guest, for instance.

IFB: How important is market share to the business?

JF: The hairdressing industry is a very mature and fragmented one and there are more than 10,000 hair salons in Australia, so market share is always quite insignificant.

IFB: How important is market share to the business? ​ JC: Surveys indicate that consumers expect to see a Just Cuts in every shopping centre in Australia and New Zealand. Our goal is to look after 5 per cent of the families of Australia and New Zealand. We are halfway there.

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HAIRHOUSE

Steve Terry, executive general manager of Hairhouse, shares insights on the rebranded business with Heather McIlvaine of Inside Retail.

“If you think about what the unique selling point of Hairhouse is, it comes down to the fact that we have 130 stores, we have a really strong retail offering in the professional haircare and beauty space and we’re the largest employer of hairdressers in the country. We have over 1000 beauty professionals, professional hairdressers and piercers, in our stores, which anchors the brand as being an authentic, knowledge-based brand.

“People don’t want to be just sold things anymore, they want to be recommended and educated in order to make an informed purchase, so if you have knowledgeable professionals working in the space, that’s the best thing you can offer. That’s what we’re really trying to do with Hairhouse now: capture the massive amounts of knowledge we have in the business.

“E-commerce hasn’t been a big focus for Hairhouse, simply because it’s a franchise business. Our online range isn’t huge; it’s roughly comparable to the range we have in-store, but we talk about our homepage being our biggest window. It’s where we meet the overwhelming majority of our customers for the first time, so we try to ensure our messaging on the site is strongly based around the fact that we’re a salon group and we’re knowledgeable.

“For us, it has been important to educate our franchisees that customer

CUTTING EDGE

SANDY CHONG, CEO, AUSTRALIAN HAIRDRESSING COUNCIL IFB: What will be the biggest cost challenges for hairdressing business owners over the next few years?

SC: Owners are certainly feeling the stress and pressure around employment costs.

We have a real battle in our industry with non-compliant businesses.

This has led to two-thirds of the industry now operating as sole operators or contractors. Some of these are compliant, but most are considered as high risk in contributing to the black economy. This makes it very hard to compete on wages.

The industry as a whole is underproductive. Industry KPIs for wages have gone from 38 per cent in 2010 to 58 per cent in 2019. Many salon wage costs are higher. Education costs are higher

behaviour is changing, and we have to be there and greet our customers in a very professional way [online], because if you don’t, online shoppers are going to go somewhere else. The network understands that. We also maintain parity with the stores, so our e-commerce site will never run a deal or bargain that is different to what the stores are doing.

“It’s a very rapidly changing climate, but our franchisees have been diligent in understanding the online business needs to operate well, and we’re actually seeing very strong growth online at the moment.

“We’ll be working on the omnichannel experience over the next 12 to 18 months.

The importance of an experiential store environment and knowledgeable and passionate staff is the key to the future if you want to succeed in retail.

“We’re looking very closely at the digital space. Marketing is not what it used to be, and the company until recently has been fairly traditional in its marketing approach, so we’re focusing on that. We’re continuing to grow our online sales in close collaboration with the network, and we’re working closely on our relationship with our suppliers.

“We’re the largest hairdressing company in Australia, which makes us the largest customer to some of our suppliers, so we’re ensuring that we are supporting each other and looking for opportunities where we can gain a share of voice. We also have our own brands within the network that we continue to develop.”

than ever before. Since the hairdressing qualification and expectation of the Certificate III is set at minimum basic skills required, then the better businesses spend money on upskilling staff.

Finding productive, skilled, experienced staff is a challenge. The other cost challenge is apprenticeships.

Mature-wage apprenticeships are 80 per cent of a qualified wage; this does not guarantee a better apprentice than a 16-year-old. With only 28.1 per cent apprenticeship completion rates across the industry, it means that employing an apprentice nowadays is a major cost to any business.

IFB: The sector is highly fragmented – what will it look like in five years?

SC: From an AHC perspective, we would like to see the industry more regulated.

At the moment a qualification to do MAY/JULY 2019 | 79 | WWW.FRANCHISEBUSINESS.COM.AU

ON THE CUTTING EDGE 2018–9 STATISTICS

REVENUE = $6.5 BILLION PROFIT = $483.7 MILLION WAGES = $2.4 BILLION BUSINESSES = 22,156 ANNUAL GROWTH 2014–19 = 0.8 PER CENT 2019–24 = 2.6 PER CENT Source: IBISWorld Hairdressing and Beauty Services in Australia, August 2018, author Tom Youl

hairdressing is only required in NSW and South Australia.

Regulation would support consumer safety, give credibility back to the industry qualification, and the government could identify registered and qualified hairdressers. Self-regulation is an option, if supported by the government.

If this does not happen, then the next five years will cement a fragmented industry that becomes predominantly a cottage industry. Small business owners operating with shop fronts will need, more than ever, to compete with impeccable services and quality products that are sold via professionals only, responsive marketing and highly trained staff.

Small businesses that are investing in the future of the industry via apprenticeships should receive government support. n

INDUSTRY SPOTLIGHT

AGE FACTORS

At-home care is a viable alternative for Australia’s ageing population and a great business opportunity.

O

lder people are a significant portion of Australia’s population. In 2017, over 1 in 7 people were aged 65 and over.

While aged care recently has been headline news for all the wrong reasons the non-residential options are proving increasingly popular.

According to the government body, Australian Institute of Health and Welfare (AIHW), the rise in people accessing home

care services was 84 per cent* from 2007 to 2017.

The government’s Home Care Packages Programme (Home Care) helps older residents who do not need a high level of care to stay in their homes.

Between 30 June 2016 and 30 June 2017, the number of operational approved providers had increased by 41.5 per cent1 with the bulk of services delivered to those aged 75 or older.

Two years ago the Australian

Government reformed the program, handing the power of service selection to the consumer.

According to the AIHW on 30 June 2018 more than 780,000 individuals were receiving grants for home support services.

There were 1456 organisations funded to provide home support through 3,542 outlets. More than two thirds operated as not-for-profit.

SENIOR STATS

HOME CARE PACKAGES ON 30 SEPTEMBER 2018

90,646

22%

26,745 Approvals

JULY-SEPTEMBER 2018

ON 31 DECEMBER 2018

6,029 new entries/ first timers

902 businesses Source: see below

SPOTLIGHT ON…

HOME CARING This business is Australian owned and has been operating since 2015, with six units. Home Caring offers franchisees a 50/50 joint partnership model and experience in aged care, disability or dementia caring is ideal for franchisees.

JUST BETTER CARE Founded in Australia in 2005 and part of Caring Brands International group, Just Better Care has over 30 operating territories around Australia.

Services include aged, disability, in-home nursing, respite, home cleaning, companionship, transport, shopping and meal preparation.

MEDIMART A one-stop-shop retail and allied health clinical service and product provider. Medimart is an NDIS provider for assistive technology, mobility and home modifications.

Clinical services include hearing tests, home based sleep apnoea tests and podiatry services.

RETIREES BACK BUDGET BOOST

The Association of Independent Retirees acting president Wayne Strandquist said of the recent Federal Budget, “One bright spot in the budget for retirees is the additional $282 million for an extra 10,000 aged home care packages.

“This has been a key policy in the AIR’s pre-budget submission to the Government as the demand for home care has escalated.

“AIR sought a substantial increase in funding for Level 3 and 4 Home Care Packages, and a new Level 5 Home Care package to support higher care needs in the home”, said Strandquist.

“The wait lists for home care packages are still too long.”

Sources:

*Australian Government Dept of Health, Home Care Packages Program, data report 1st quarter 2018-9, to 1 July to 30 September 2018, published November 2018. **Australian Government Dept of Health, Home Care Packages Program, data report 1 October – 31 December 2018 1.

Department of Health (Doh) 2017. 2016–17 Report on the Operation of the Aged Care Act 1997. Canberra: DoH

MAY/JULY 2019 | 80 | WWW.FRANCHISEBUSINESS.COM.AU

Making Franchise Law

Black and White

Your Business Success: We Get it We understand the commitment and resources required to run a business. We work with you in getting to know your franchise business and to develop cost effective legal strategies or solutions that align with your commercial objectives.

Morgan Mac Lawyers are business lawyers specialising in Business Law, Franchise Law, Commercial Litigation and Dispute Resolution. Our specialist Franchise and Business Lawyers advise in areas including franchise dispute resolution strategies, business structuring, business sales, leasing, franchise agreements and legal documents, and legal and regulatory compliance.

Our Commercial Litigation and Dispute Resolution Lawyers work with you to devise strategies to end disputes as quickly as possible to avoid or minimise the costs and disruption of expensive and time-consuming litigation.

Our focus is to deliver high quality legal services of real value to our clients.

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ARE YOU KEEN TO BE YOUR OWN

Boss?

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Baking and Sales Training We’ll work with you in a live bakery environment to make sure you know how to make dough.

Growth and Development We will teach you on how to build and develop local marketing plans, a strong bakery team, and a sound business based on our successful business model.

SPEAK TO US ABOUT FRANCHISE

s e i t i n u t r o p p O

Web: bakersdelight.com.au/franchise Phone: 1300 309 759

INDUSTRY SPOTLIGHT

VROOM TO MOVE

The electric, driverless car of the future will in the next decades transform the automotive industry. Right now ride-sharing and digitalisation are big influences.

So what are auto services franchises doing to stay in the fast lane?

By Sarah Stowe

C

ars and trucks are big business.

The Australian Automotive Aftermarket Association (AAAA) took up more than 21,000 sq m of the Melbourne Convention and Exhibition Centre to showcase the 400 exhibitors in the largest automotive trade exhibition in the Oceania region, 2019 AAAA Expo and the concurrent 2019 Collision Repair Expo.

AAAA member companies employ more than 40,000 people and export more than $1 billion worth of products each year in an industry that generates revenues in excess of $11 billion domestically each year.

The Australia Automotive Aftermarket Trends Report 2018 pointed out the significant shifts in the Australian region as a result of acquisitions, joint ventures, e-commerce, and the exit of manufacturers.

According to the report, in 2017: • aftermarket parts revenue = $11 billion • aftermarket e-retailing revenue = $0.48 billion.

The Australian Bureau of Statistics cited that as of January 31 2017, 18.8 million vehicles were registered. The nation’s vehicle fleet grew by 2.1 per cent in 2016–17. Of this, 22 per cent were diesel powered vehicles, up from 15.5 per cent in 2012.

CarsGuide author Andrew Chesterton wrote in March this year, “All up, the new car sales figures in Australia add up to more than 7.6 million new cars in just seven years. In a country of 24 million people.”

It’s big business, but it’s a changing business.

Take tyres for instance. The tyre retailing industry has of course benefited from the increased number of motor vehicles on Australian roads over the past five years, says IBISWorld. But there’s a downside too.

IBISWorld’s “Tyre Retailing” report of

June 2018 shows that while there are more cars, many drivers are minimising costs and cutting back the kilometres. That equates to lower demand for tyre replacements.

However, overall, industry revenue is expected to rise at an annualised 2.1 per cent over the five years through 2017–18, to $5.2 billion.

Cars and trucks need repairs and updates, and Small Biz Buzz SBS reports mobile app Invoice2go spotted auto-repairs growing 78 per cent in 2017–18, according to its invoicing data.

Speaking at the May 2018 Autocare Conference, ACCC chair Rod Sims said, “Nowadays, you practically need a degree in computer engineering to repair a vehicle: today’s new cars contain in excess of 10 million lines of computer code, more code than is used to operate the avionics and onboard support systems of modern airliners, to create the sophisticated software that they require to work.

“In a sense, you don’t really drive cars anymore: you drive computers.”

MAY/JULY 2019 | 84 | WWW.FRANCHISEBUSINESS.COM.AU

“If I was looking for a franchise I’d want…

DRUGS Drug-safe workplaces

S G U R D A business with strong ethics, social values, good ROI and low entry costs

An asset I could grow for my future, but a legacy I could leave for my community

One of the best 30 franchises nominated in 2018 by the Franchise Council

A franchise that allows me to become an essential link in a National team

s e c pl a

A low royalty plan.

(We don’t have any royalties! Zip, Nil, Zero, None) **

k r o w e

World’s best-quality products at low purchase price (cost of goods)

f a s g u r

High profit margins with no limit on your earning capacity or client size.

D

A franchisor support team that understands how to build a success story A franchisor support team that believes “MAKE THE FRANCHISEE FIRST”

Where could I find an opportunity like that?

Call us now and find out why we’re market leaders 1300 378472 Visit www.team.drugsafe.com.au and check us out….before you apply.

Send an email to apply@drugsafe.com.au (** of course some T’s & C’s apply)

INDUSTRY SPOTLIGHT

STEERING INTO THE FUTURE

How are franchised auto service businesses facing up to today’s, and tomorrow’s, challenges? Two franchisors explain how they are staying in the driving seat.

MIKE STRINGER, FRANCHISOR, CAR CARE IFB: WHAT ARE THE BIG CHALLENGES IN YOUR PARTICULAR NICHE MARKET? MS: The biggest challenge we have is communicating the need for our clients to plan as we are not able, in the main, to respond in providing our service on a same-day basis.

IFB: WHAT IS THE STRENGTH OF YOUR BUSINESS IN THE SECTOR? MS: The fact that we are able to deliver our service at the client’s premises without the need to compromise on quality, as we supply our own power and water. The other strength is the knowledge and skill of our detailers.

IFB: HOW IS DIGITALISATION AFFECTING YOUR DAILY BUSINESS? MS: It has had little effect in the service delivery but has had major impacts on how we advertise, communicate and manage our

GLENN HAMES, CEO, TOWNCARS NETWORKS AUSTRALIA IFB: WHAT ARE THE BIG CHALLENGES IN YOUR PARTICULAR NICHE MARKET? GH: Since the introduction of ridesharing within the industry, we continue to be challenged in these areas: clear direction on government and institutional standards, continued traffic congestion, changing of the future transport landscape, investing in technology and driver education/compliance.

IFB: WHAT IS THE STRENGTH OF YOUR BUSINESS IN THE SECTOR? MS: Operating nationally, Towncars offers transport solutions to corporate and private customers. Our transparent model is leading best practice in safety in the hire car industry.

Prices are fixed and all inclusive, with no running meters.

We focus on providing detailed back end reports, including dashboard analysis.

Towncars’ seven-day call centre provides personalised support and back-up for our customers and drivers. Our exclusive in-house software is equipped with GPS tracking on all our vehicles to communicate service expectations.

IFB: HOW IS DIGITALISATION AFFECTING YOUR DAILY BUSINESS? MS: Based on customer and driver feedback, Towncars is constantly challenged to improve its software, to meet expectations in the format of reporting and user-friendly platforms.

The following segments are currently being reviewed and upgraded:

work distribution.

The other effect of digitalisation is the client’s expectations in terms of the immediacy of delivering our service.

We are living in a world where the expectation is you can have what you want whenever you want it.

IFB: HOW DO YOU SEE YOUR BUSINESS ADAPTING TO THE FUTURE WITH SELF-DRIVING, PETROL-FREE, COMPUTERISED CARS? MS: We see the transition to these new technologies being quite a slow process and from our perspective the likely changes will have limited effect on keeping the vehicles clean.

IFB: WHAT DOES THE FRANCHISEE OF TOMORROW NEED TO BRING TO THE BUSINESS? MS: We are and will remain a service business, so the franchisee of tomorrow is pretty much the same as they are today.

• • • • •

client feedback risk management and policy restricted access to protect data and client confidentiality driver behaviour and ratings terms and conditions.

IFB: HOW DO YOU SEE YOUR BUSINESS ADAPTING TO THE FUTURE WITH SELF-DRIVING, PETROL-FREE, COMPUTERISED CARS? MS: It is likely that all operators will need to invest in both electric and fully autonomous vehicles for the future. It is envisaged both electrified and fully autonomous vehicles will be totally operational by 2050. The transport industry will have to reformulate their business models to support this transition.

IFB: WHAT DOES THE FRANCHISEE OF TOMORROW NEED TO BRING TO THE BUSINESS? MS: Towncars franchisees need to be aware of the industry challenges and be prepared to adapt to changes. As professional drivers, they must be focused on consistent service and customer relationships. We must provide ongoing training and education to maintain professional behaviour.

IFB: CAN YOU HIGHLIGHT ANY SIGNIFICANT RECENT OR UPCOMING CHANGES TO YOUR FRANCHISE MODEL? MS: Besides technology upgrades, Towncars has updated its fleet to European vehicles due to the demise of Australian manufactured vehicles, such as Holden and Ford.

Ongoing airport challenges have prompted us to relocate 6 kilometres from

They will, however, need to bring a greater understanding of the technologies around operating their business both financially and from a client communication point of view.

IFB: CAN YOU HIGHLIGHT ANY SIGNIFICANT RECENT OR UPCOMING CHANGES TO YOUR FRANCHISE MODEL? MS: We have put more structures in place to assist our franchisees to manage their business in a more organised fashion.

These cover areas of territory management, accounting, time management, etc.

IFB: WHAT ARE THE PLANS FOR 2019–20?

MS: For 2019 our plans are to continue to grow our numbers and look for ways to increase the profitability of our franchisees.

WHO'S WHO IN THE AUTO WORLD MECHANICAL REPAIRS

ABS, Pedders, Autobarn BODY REPAIRS

Superfinish Express

CARWASH AND DETAILING

Car Care, Magic Hand Car Wash, Jim’s Car Detailing, RETAIL

Snap-on, Battery World, ABS Automotive TYRES

Bridgestone Select, Midas, Bob Jane CAR RENTAL/LIMOUSINE SERVICE

Rent2Own, Redspot, Towncars HYDRAULICS

Enzed

Sydney Airport, which offers our call centre and drivers quicker solutions to respond to our clients’ needs.

IFB: WHAT ARE THE PLANS FOR 2019–20?

MS: In the next couple of years, we will expand franchise opportunities across Australia. This will be established by national magazine advertising.

Towncars brand awareness will also increase nationally, through fleet livery, social media and digital campaigns.

Reward and loyalty programs will be introduced to attract new users to our services. Future projects include on-demand technology. n

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INDUSTRY SPOTLIGHT

OUT OF THE RAT RACE The franchise sector is about more than just food and fitness. New technology and digital trades are driving white-collar workers to give up corporate life in search of greener pastures.

By Nick Hall

F

or workers who have spent the bulk of their professional career in a corporate setting, going out on your own and starting a fast-food or handyman business may seem like a backward step.

Traditionally, the marketing, sales and business development sectors have rarely provided a clear pathway to franchise entrepreneurship. However, a new breed of franchisor is helping career corporates realise their goal of professional independence.

The rising demand for corporate advisory, business services and development models is providing new opportunities for career growth, and the trend is expected to continue.

Reports from the Australian Industry and Skills Committee suggest that advancements in technology are likely to revolutionise the business service sector.

“Though digital and technological innovation affects all industries, it is particularly relevant to the business services industry,” the report says.

“Workers must have the skills needed to take advantage of growing innovation and collaboration in this industry. Additionally, the pace of digital change means workers are expected to maintain a higher level of digital literacy than in previous years, with more roles including elements of data analysis.”

While the looming threat of digitisation may spell disaster for a number of manual labour and trade-based workers, the predicted evolution places former corporate workers in good stead moving forward.

An increased reliance on workplace agility and mobile operation is cultivating a freelancing culture, which the business services franchising sector is welcoming with open arms.

“Technology is increasing the use of remote teaming, meaning workers need collaboration and organisation skills. This suggests workers need entrepreneurial skills to promote themselves and take advantage of opportunities,” the report suggests.

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Jayesh Kasim

Dave Wilkinson

VALENTA BPO Outsourcing and professional services franchise, Valenta BPO has created an entire model based on remote team operation.

Providing an established operation platform allows franchisees to focus on their core competencies such as client acquisition and relationship building.

“This is a model where the franchisee works on the business rather than in the business,” Valenta BPO managing director Jayesh Kasim says.

“People from the corporate world will find themselves working in a familiar environment but in a different structure, wherein they have the ability to reach their goals and spend more time with family.”

Kasim explains that franchisees are encouraged to operate the business from a remote location, such as a joint workspace or home office, significantly reducing start-up costs.

The model allows corporate workers to leverage their previous work experience and contact list, rather than engage in a complete career overhaul.

“Previous corporate experience will be a great asset for success at Valenta,” Kasim says. “Firstly, having industry contacts will fast-track their business development activities. Secondly, they would know the gaps in the industry and thus they will be well equipped to provide an industry-wide solution. Lastly, their corporate experience will give them the confidence to approach businesses across any industry to provide solutions.”

Growth within the sector is something Jayesh has watched closely, and he believes a change in professional attitudes is driving the evolution of the industry.

“Personal growth always comes up as the key reason,” he says. “This works very well in the franchise space where people get into business for themselves but are then supported by the franchise system and hence are not alone in the business.

This is what makes franchising very successful globally.”

The business has cultivated an extensive network of ex-corporates across a wide breadth of industries.

Melbourne-based franchisee Varsha Fleming spent over a decade working with multinational corporations Goldman Sachs and KPMG before the transition into entrepreneurship.

“Being in the corporate world, I had exposure to various business processes both locally and globally,” she says.

“Large corporates take advantage of having a global workforce and with this confidence I knew I could build a business for myself within the Valenta framework to offer SMEs the opportunity to build a global workforce with the right processes and technology.”

Fleming believes there are a number of similarities between corporate life and franchising, however the latter provides one key differential.

“Besides the autonomy, flexibility and control, working for yourself is a lot more gratifying than working in a corporate,” she says.

“Building something of your own, seeing

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it grow and evolve is a different feeling all together. Those who have what it takes to be successful in the corporate world will definitely have a high success rate in a franchise framework.”

INXPRESS In 2019, global shipping and logistics franchise InXpress celebrates 20 years of operation worldwide, coinciding with the company’s tenth anniversary in Australia.

The company’s proactive approach to technological advancements and sector evolution has not only made the business an industry leader, but a valuable proposition for former career corporates.

Dave Wilkinson, InXpress Asia Pacific franchise development director, believes the current economic and working environment has contributed heavily to the rising white-collar franchisee movement.

“The last 10 years in Australia have seen an increase in redundancies and layoffs, with many industries becoming less relevant with the advent of new technology,” Wilkinson says. “We’re seeing lots of interest from the corporate world, people are becoming better educated and moving their mindset from a 9–5 daily grind to that of a business owner, who wants to control his or her financial destiny.”

Wilkinson believes former corporate workers make ideal franchisees due to their ability to address the specific needs of the familiar clientele.

“The InXpress model is B2B focused, this appeals to many corporate workers

INDUSTRY SPOTLIGHT

Sue and Ian Mackie

because it retains some of the comfort corporate workers enjoy.”

More than just survive the technology revolution, the logistics franchise has adopted a number of first-to-market innovations that have helped push the business into the modern age.

In what has become the largest undertaking globally for the brand, InXpress is set to launch the latest development of its customer-facing shipping platform later this year.

Besides the autonomy, flexibility and control, working for yourself is a lot more gratifying than working in a corporate.

SNAP PRINTING For former advertising and marketing professionals Sue and Ian Mackie, the opportunity to exit the corporate world was one they clasped with both hands.

In 2012, the husband and wife team took control of the existing Snap Printing South Dandenong outlet, a move that would alter their careers forever.

“It was just a great opportunity,” Ian says.

“We researched a fair bit and had a look at the type of franchise that we wanted to run, and Snap was just a good fit for us.”

Now seven years in, the Mackies are going from strength to strength, relocating their outlet and ticking off business goals as they go.

Like all Snap Printing franchisees, Ian and Sue are required to meet client briefs, work on effective marketing solutions and develop a core clientele, which has come easily to the experienced corporates.

The franchise model allows new business owners to draw from their previous professional skills to develop their business.

In the case of Snap South Dandenong,

the Victorian franchisees believe it was this experience that enabled them to so seamlessly take to business ownership.

“Previous corporate experience has been a huge help to us; just knowing the direction that we want to take the business in. Having had the experience dealing with large corporates and government projects has made us more equipped,” Ian says.

One of the pair’s main drivers for entering the world of entrepreneurship was the ability to work side by side again.

“It’s something we had done in the past and something we really enjoyed,” Ian explains.

“We didn’t want a seven day a week franchise business. Snap is very much a Monday to Friday operational schedule, so it gave us the opportunity to support a lifestyle that we really wanted.”

Both Ian and Sue believe that while having a background in corporate business stands you in good stead for entrepreneurship, all prospective franchisees must be diligent.

“I think you really need to do your research and find something that you are comfortable with. If you do choose to go with a seven day a week business, think about how that will impact on family life,” Ian says.

“We bought into the business at a time when our kids were just going into university, so Mum and Dad didn’t need to be around quite as much. Whatever you decide, you need to be clear in your own mind about your vision and consider how that business is going to be the vehicle to take you there.

“I certainly couldn’t see myself working for anyone else ever again.” n

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EXPO

DISCOVERY DAY Fresh concepts and established brands will be showcasing their business opportunities at the Brisbane Franchising Expo.

G

ive yourself a head start in your franchise search at the upcoming franchise expo in Brisbane. The expo is a handy combination of franchises showcasing their business models and opportunities, and insights and advice from experts in the field who can shine a spotlight on the complexities of franchising.

For anyone considering taking the leap to being their own boss, a visit to a Franchising & Business Opportunities Expo can be a worthwhile part of the discovery process.

Each day at the event there’s a free seminar program available for visitors to attend. The seminar theatre is located right at the centre of the expo so it’s easy to find, and there are no bookings required.

The topics range from an overview from the Franchise Council of Australia on why franchising could be the right business choice for you to hearing from successful franchisees about the challenges they have faced and overcome.

Exhibition manager Fiona Stacey says, “Attending the Franchising Expo is a great way to find out what you need to know and meet real people who can explain the ins and outs of their business venture.”

Daily keynote speakers will be able to share valuable experiences on being in business, and reveal what motivates them.

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Inside Franchise Business readers can register to visit the Franchising & Business Opportunities expo for FREE at www.franchisingexpo.com.au by using promo code FMG. The expo runs 1–2 June at Brisbane Convention & Exhibition Centre, from 10 am to 5 pm daily.

BIG BUSINESS, SMALL BUSINESS Typically the expo is a mix of food and service-based franchises, so it delivers a one-stop shop opportunity to get closer to buying your own business.

There are an estimated 1000+ franchise brands in Australia – the sector is worth at least $144 billion. It’s small business that’s big business.

So visiting an expo to see a fraction of these brands is a great way to get a feel for how the businesses operate on a personal level.

If you’re thinking of buying a franchise, do some preparation and go armed with questions. Franchisors like to talk to prospective franchisees about their businesses – what the work is, how franchisees can make money, what support is provided, the sort of costs involved in investing in the business.

And with so many franchises on display, it’s an easy way to compare offers, not just from a cost perspective but how franchisor teams engage and respond to queries.

BRANDS ON SHOW Whether you are focused on finding a heritage brand with an established reputation or want to discover the newest and latest business concept, the expo will deliver. There are franchises to suit every pocket and every interest. Do you love food and hospitality? Are you keen to use your sales skills? Do you need to work flexible hours from home? Are you geared up for an active role? Is working with children high on your wishlist? Franchises that cater for these needs – and many more – will be exhibiting.

And that’s the beauty of a franchise

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expo: you just might find the perfect business that you didn’t know existed!

Some of the businesses will have franchisees on hand so you can gain some valuable insights.

Advisory services are among the exhibitors so it’s easy to drop by and ask any burning questions you have about how franchising works, rules and regulations, how best to do your research, and membership into industry associations.

Make sure you stop at the Inside Franchise Business stand and visit the Franchise Council of Australia to find out more.

Franchisees, franchisors and advisers are all on tap for the interested potential buyer to find out more. n

PROPERTY

NORTHERN

EXPOSURE

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Looking for a bright opportunity in the Sunshine State? Inside Franchise Business takes a look at Queensland’s booming city centres and regional areas on the grow.

By Nick Hall

A

s construction and development in metropolitan city centres such as Melbourne and Sydney begins to slow, north of the border things are just heating up.

When it comes to selecting the perfect site for a new business, there are a number of factors that will ultimately influence the final decision.

It is pivotal as a new franchisee that you have a firm understanding of the local area’s demographics, affluence and proximity to supply channels before committing to an investment.

Irrespective of your proposed business industry or offering, access to an area of high footfall is certain to improve the overall patronage of your outlet. However, these locations are rarely cheap.

Even in Queensland, where residential and commercial property prices are significantly lower than their east-coast counterparts, CBD and shopping centre locations are still at the mercy of strict landlord conditions and rising leasing costs.

Couple that with an increasingly vigilant and cautious local consumer, and it may seem like an investment in Queensland is out of the question.

But the tide is turning, Gavin Moore, McGees Property Brisbane’s director of commercial agency, tells Inside Franchise Business.

“We believe we’re on the precipice of a really bright future,” Moore says. “A lot is happening and there is a lot of investment in the area, I think we’ll see those benefits begin to roll out over the next three to four years.”

So, with investment sure to signal growth, and the impending results of the parliamentary inquiry threatening to swing power back into the hands of the state’s retailers, where are the Queensland hotspots prospective franchisees should be looking to set up shop?

GOLD COAST Over the past 12 months, South-East Queensland has experienced a huge surge in tourism, population and investment, buoyed primarily by the highly successful

2018 Commonwealth Games on the Gold Coast.

Over the 11 days, more than 1.2 million event tickets were sold, generating a massive boost to small business revenue and promoting the tourist hub to a worldwide audience.

In the build-up to the games, projected population increases prompted the state and federal governments to further invest funds into development, construction and facilities management, the result of which has been the cultivation of a world-class retail and entertainment precinct that is helping to drive traffic to the southern part of the state.

The headline delivery of the Commonwealth Games was a $320 million investment into sport and community infrastructure, the effects of which are still being felt today.

Upon build, the games village at the Parklands was the largest to date, providing accommodation and services to 6600 athletes and team officials over the period.

It has since become the catalyst project for a new master-planned, mixed-use community development, designed to support jobs and provide homes to new residents and businesses as part of the 200-hectare Gold Coast Health and Knowledge Precinct.

It’s these types of communities that Moore believes hold the key to successful franchising in Queensland moving forward.

“Where I see the most opportunity for the sector, led primarily by the food and beverage industry, is in the emerging master-planned communities, where there are more affordable accommodation options from a housing perspective,” he says.

Housing affordability and population growth are serving as the most influential factors in the profitability of new businesses, Moore suggests. The commercial property expert believes master-planned communities provide access to young, affluent, early adopters who are responsive to the traditional franchise system.

“They are the areas where the opportunity really lies, driven by the demographic which is generally far more comfortable and accepting of the

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traditional franchise model,” he says.

GREATER SPRINGFIELD Located on the southern outskirts of the rapidly growing sub-regional Ipswich corridor, Greater Springfield is a developing city centre, home to one of the state’s most successful masterplanned developments, Springfield Lakes.

Over the coming years, further development across residential, commercial and healthcare verticals is set to impact the region dramatically. Over $12 billion has already been invested across the whole of Greater Springfield’s infrastructure and development, with that figure expected to reach $85 billion upon completion.

While the region is currently home to around 34,000 residents, the real opportunity for prospective business owners comes with the completion of the Springfield Central stage.

The CBD area will provide employment for more than 52,000 workers, with more than 2.6 million square metres of commercial, retail, educational, health and technology facilities on offer.

While bricks and mortar retailers have found conditions challenging over the past few years, the population influx, which is tipped to reach 86,000 residents by 2030 is sure to be a patronage boon upon completion.

SUB-REGIONAL It’s a familiar pattern of growth in line with the nation’s sub-regional shopping centres, which, developed alongside master-planned communities, have effectively weathered the retail storm.

In its “Food Demand in Australia: Trends and issues” report released in February, the Australian government revealed that an emerging cultural shift was behind the resurgence in popularity and patronage for retail and food operators.

According to the research report, investment value in community-based dining precincts has seen a steady rise, with “meals out and fast food” equating

PROPERTY

to 34 per cent of total household food expenditure in 2015–16, up from just 15 per cent in 1988–89.

Ryan Andersen, managing director of specialist property development advisors DMA Partners, believes the cultural shift towards destination-food outings, headlined by master-planned communities, is boosting spending and tenant interest.

“Local centres are tuned in to this societal change and are leveraging off what they already have – great local market awareness, parking convenience and lower overheads – but they’re adding stylish, variety-filled dining precincts which appeal to the local audience and in particular, family diners,” Andersen says.

“The trend has been growing year on year and it’s in no small way due to the increased offering and quality of community-based neighbourhood and sub-regional centres.”

Andersen suggests that masterplanned communities have the edge over traditional CBD locations from a prospective tenant point of because of their combined entertainment and dining precincts.

“Dining in or near a retail centre is no longer simply about grabbing a bite to eat,” Andersen reveals.

“It’s all about the experience. Can I park easily? Is there a range of choices on offer, not only of food variety but also in terms of restaurant style and location – alfresco, eat-at-the-bar, à la carte? When you add this consumption growth to the key decision drivers of accessibility, proximity and awareness, it’s not hard to see why sub-regional community shopping and

dining hubs are really coming into their own.”

Compare that to the state capital where consumer tastes are far more demanding and refined, and you will notice the transformative nature of the Brisbane retail landscape.

BRISBANE While franchise brands have traditionally gravitated towards CBD centres due to their access to foot traffic, certain

economic and consumer-driven factors have altered the current climate.

“Certainly in our market, the retail sector hasn’t seen the population growth and wage growth that some other states have, and as a result, a lot of retail businesses have been floundering,” Moore says.

The downturn has seen a number of traditional food and beverage franchises move out of the CBD area, as city workers and residents search for more bespoke offerings.

“What we’re seeing is that more

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KEEPING IT IN THE FAMILY: HOW DO THESE SNOOZE FRANCHISE OWNERS MAINTAIN A WORK/LIFE BALANCE?

Husband and wife team Tom and Marthese have run the Alexandria store, a top performing Snooze store in Australia, since December 2010.

Tom worked in warehouse logistics before deciding to embark on his franchising journey, bringing wife Marthese along with him. Pairing up with a spouse might seem like a challenge but, for this dynamic duo, it has helped them grow their business from strength to strength.

Maintaining a work/life balance “Having a store and a family means that we are juggling a lot of balls and we are running around a lot – we have 4 kids and they all do sport, and they all require time,” says Tom. Owning a franchise as a family is certainly not for the lazy.

Tom concedes that they are always ‘on’, and that they need to constantly be on top of everyone’s schedules to ensure that nothing is missed, whether it be for the store or for the family.

“When (one of us) has a time restraint or there’s lots of activities, (the other) needs to step up and do what needs to be done,” says Marthese.

Communication is key in this family’s approach to a work/ life balance, and as long as they are able to work through family and work schedules together, they ensure that they have enough time to relax, both individually and as a family.

Working as a family unit “The benefit of working together is that we understand what each other is going through... we keep doing it because we find it very satisfying. The typical day needs to have structure – we know who’s where and where they need to be.”

Along with the benefits of working with a spouse, however, can come challenges, as managing social engagements and holidays is made more difficult when also trying to run a successful business together.

We try to have many short breaks however sometimes things just don’t go to plan,” says Marthese.

Marthese concedes that the needs of the business sometimes have to come first before family time, and this can be a struggle; however, it is about finding a good balance. For this family it means taking more frequent, shorter holidays as opposed to long stints.

Hard work and performance Marthese is a top sales performer, despite only working part time. She credits her success to her passion for the brand and the store.

Top performing Snooze stores often attribute their sales success to a strong presence of the franchise owner in-store.

Franchise owners are encouraged to spend time in-store to ensure that they remain in touch with their customers and the sales process, as well as keeping their stores in immaculate condition.

The franchise community as a family Tom and Marthese see some of the Snooze franchise owners as an extension of their own family: they celebrate business victories together; however, they also act as a shoulder to lean on in tougher times. It is this sense of community that fosters a supportive environment for Snooze franchise owners.

As Marthese says, “The franchise community is definitely a community. We all liaise. We all get together. It’s good to be around people who understand the business, their struggles and their rewards. It’s great to see other franchisees doing really well. We all love the brand.”

For the full interview go to snooze.com.au/franchising, or for more information about becoming a Snooze Franchise Partner, contact Bettina Davis Bettina.davis@snooze.com.au | 0423 077 844

“It actually makes it harder because there are 2 of us that need to leave the business at the same time if we are going to spend time with the family… so they are often short breaks.

IT’S AMAZING WHAT A LITTLE SNOOZE CAN DO www.snooze.com.au/franchising

bespoke offerings are certainly achieving greater patronage in these areas over the typical franchise model,” he says. “But there is always opportunity, it would be naive of me to suggest otherwise, it just comes back to what location those businesses will prosper in and what the consumer wants.”

The demanding Brisbane city retail landscape isn’t stifling the sector entirely, however. In fact, the drop in popularity for franchised food and beverage operators is opening up opportunities for other service providers to take advantage of the low-rent, high-footfall retail spaces.

“A lot of retail spaces are now being backfilled by medical practitioners, physios, chiropractors and a lot of ancillary allied health-type arrangements, but also the accountant, solicitor-type business operator,” Moore explains.

“They may have traditionally been located on the first floor of an office building, but because of what is happening in the market, they are presented with the opportunity of a ground floor space.”

Further multi-use retail and shopping

centre developments are on their way, however, with some of the biggest projects in Australia situated on the outskirts of Brisbane central.

increase in people visiting the area will lead to more people exploring the city and shopping, so these projects will undoubtedly have an impact.”

QUEEN’S WHARF PROJECT

YEERONGPILLY GREEN

By far the state’s most anticipated project, the Queen’s Wharf redevelopment is set to rejuvenate the Brisbane skyline, adding a touch of glamour to the tropics.

When completed in 2022, the integrated resort development will host five luxury hotels, with five- and six-star options, 50 restaurants, cafes and bars as well as an immersive multipurpose retail offering.

The project is expected to bring an additional 1.39 million visitors to Brisbane, which Moore believes will help boost Brisbane’s global reputation.

“It will certainly bring new opportunities, obviously higher patronage,” Moore says. “The Queen’s Wharf Project will be a destination in itself, but it will also increase footfall as a flow-on effect.”

“Obviously, you’d like to think an

Located just 5.5 kilometres from the Brisbane city centre, a new $250 million shopping and retail precinct slated to commence construction later this year is generating similar interest.

The Yeerongpilly Green development is a dedicated community village put forward by Consolidated Properties Group, destined to transform the Brisbane skyline.

More than 5000 square metres of retail is proposed for the region, complemented by restaurants, commercial property, 5 hectares of parkland and a boutique hotel.

CBRE research analyst, Freddie Kareh believes the trend for mixed-use developments like Yeerongpilly Green will continue to gain traction, similar to that seen in the state’s master-planned communities.

“Once considered an inconvenience

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by many residential developers, the retail component of mixed-use developments has become a point of difference in a changing market,” Kareh says. “In accordance with a well-integrated design, a strong tenancy mix geared towards the wants and needs of the local community has become a key selling point, providing new developments with ‘kerb appeal’ through the creation of entry statements and places where people want to be.”

the announcement of new city centre development at the old Horton Park Golf Course in Maroochydore and it’s obvious to see interest in the region is far from lacking.

To coincide with the predicted population boom, the local council has also invested heavily in upgrades to the Sunshine Coast airport.

“When you put all of that in a bag, [you get] an easier to navigate airport and more access for visitors, making living on the Sunshine Coast a more viable position,” Moore says.

SUNSHINE COAST While Moore predicts the recent development on the Gold Coast will slow infrastructure growth for the region, further north, new plans are sparking interest.

“The Sunshine Coast paints a very different story,” Moore says. “You see a lot more owner/operator type tenants, where the Gold Coast is far more transient.”

The recent Aura Central development combines all the features of the stunning Sunshine Coast region in a new, purposebuilt community. Couple that with

NORTH QUEENSLAND While development has come thick and fast down south, in Far North Queensland, commercial growth opportunities have traditionally been few and far between.

The transient nature of the local economy is slowly beginning to shift, however, as more young families and migrants move north in search of affordable housing and a more relaxed lifestyle.

In July last year, Cairns locals had

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a taste of things to come, when DFO unveiled its inaugural retail, entertainment and lifestyle precinct, the first of many new initiatives set to propel the region into the modern age.

The $10 million “DFOOD” village was hailed as North Queensland’s incarnation of Brisbane’s high profile “Eat Street” markets. The Sentinel Property Groupowned project incorporates a variety of new cafes and restaurants, in addition to multi-use family entertainment offering.

“The DFOOD concept is a twist on the suburban shopping centre food court offering. We wanted to create a familyoriented outdoor al fresco eating and entertainment destination for the Cairns community,” says Michael Sherlock, Sentinel Property Group chief marketing officer.

“DFOOD provides a day and night time food and play destination for locals with plenty of parking so they don’t have to travel into the Cairns CBD.” For prospective retailers and food outlets, the DFOOD village presents a rare opportunity to crack the highly coveted North Queensland market.

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INCOME

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Owning a Kwik Kopy franchise is your chance to be part of the success story. Kwik Kopy is a proven franchise model, with Centres Australia-wide providing the very best in business to business print, graphic design and marketing services. This 5 day-a-week model allows you the best of both worlds, financial success and time to enjoy life and best of all, you don’t require any print experience to purchase a Centre.

At Kwik Kopy, we are so confident in our franchise model that we’re willing to put our money where our mouth is, and guarantee you an income for a year when you open a brand-new Kwik Kopy Centre; that’s $52,000 guaranteed!* For a limited time only, when you open a new Kwik Kopy Centre you will receive:

1

$52,000 guaranteed income for you in the first year.*

2

We match marketing expenses dollar for dollar to launch your new Kwik Kopy Centre.*

Plus, everything you would expect from a well-known and trusted franchise group: Award winning franchise model, operating in Australia for 35 years Strong national brand awareness Annual benchmark profile to evaluate your progress Dynamic national marketing programmes to help you grow your business Group buying power Extensive training and support

To take advantage of this offer and to be part of the Kwik Kopy success story, visit www.kwikkopy.com.au/newfranchise or call Maria Chemali on (02) 8962 8556 to receive a franchise information pack. * Terms and conditions apply. Offer available for Sydney, Melbourne, Brisbane and Adelaide Metropolitan areas. Other areas will be considered on a case by case basis. Offer subject to applicant approval by Kwik Kopy Australia. All applicants must return a completed Expression of Interest Form and Confidentiality Deed which can be downloaded from www.kwikkopy.com.au/franchise. This offer expires on December 31st 2019 and applies to Franchise Agreements signed by this date.

kwikkopy.com.au

PROPERTY

“We have some tenants in the final stages of negotiations, but the details are currently commercial in confidence. We are also in discussions with a number of franchised QSR operators/prospective tenants,” Sherlock says.

“There is also great anticipation about the new businesses coming to the centre.”

REGIONAL Moving further inland, opportunities for growth are heavily reliant on government investment, but the addition of the South East Queensland Regional Plan 2017 has eagle-eyed entrepreneurs on high alert.

The Queensland government has committed $5 million over two years to establish the Growth Monitoring Program, an initiative that charts development and land supply in the region.

With approximately 75,000 new residents expected to call South-East Queensland home annually over the next 25 years, a number of regional areas are already prepping for growth.

In areas such as Rockhampton,

incentives are available for businesses looking to make a significant contribution to the local economy.

For prospective business owners, the opportunities on offer are plentiful, with the area made more geographically secure upon the completion of the $300 million Yeppen South project, which greatly improved the flood immunity of the once at-risk region.

According to growth trajectories, Rockhampton isn’t the only regional city centre that presents a strong investment opportunity.

Based on the Cummings Economics “Changing Patterns of Queensland Regional Populations” report, Bundaberg, along with the aforementioned Cairns region will continue to pull away as the largest growth areas.

This is due to the overall size of the regions as well as advancements in development and construction management practices. Traditionally, the difficult, rural terrain had proven far too expensive to develop. However, the evolution of the construction industry has put development back on the plans.

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FINAL THOUGHTS While Queensland has been traditionally overlooked by prospective investors, a series of high-profile entertainment and lifestyle developments are pushing the state to the forefront.

Changing economic conditions have made retail opportunities in the metropolitan city centres harder to come by, however service providers have successfully filled that void.

Where the real opportunity lies for potential franchisees is in the rapidly emerging mixed-use communities.

With the rising migration of young families to affordable areas, the opportunity to set up shop and operate profitably is greatly enhanced.

Above all else, commercial property expert Gavin Moore believes the most influential factor in identifying a high value opportunity is timing.

“From a locality point of view, go where the people are, where they are going to be and get in early.” n

FRANCHISE BASICS

IT GOES WITH THE

TERRITORY How do I know my territory will be good enough to support my business? Here are 5 ways to spot a right-sized territory.

PETER BUCKINGHAM Managing director, Spectrum Analysis

R

ight sizing the territories is a must for both the franchisee and the franchisor to gain the most from the brand. Franchisors need to have a vision, based on some logic, as to where they want to see the brand in 10 years’ time, and set up their territories accordingly.

Territory planning is not about evolving (code for halving a territory each time it becomes unworkable) but rather right sizing from the start.

While territories can be too small and restrict the franchisee’s growth, the reality is that many territories are far too large. This creates a situation where the brand does not reach critical mass and so never reaches its original goals.

Here are the five most important things in getting the territories right.

1. CONSISTENCY FOR CONSUMER-FACING BUSINESSES Knowing that each territory offers similar business potential is a must for the franchisee. In a consumer business it’s important to look at population figures with some adjustments for various socio economics. This can be done using data from the last Census.

2. CONSISTENCY FOR A BUSINESS-SERVICE FRANCHISE If the franchise operates a business-tobusiness service then the number of firms in the area is a good starting point,

with some adjustment for business type (white collar, grey or blue).

Demographic mapping and franchise territory planning firms like Spectrum Analysis can weight the businesses in any area using data released annually by the Australian Bureau of Statistics.

Business weighting is based on what type and size of businesses are in the area. This shows whether or not the local firms will be the target market for the franchise.

3. NATIONAL NUMBERS Consistency across the network means the franchisor should have a plan for the number of territories in each major capital city and in each State.

4. PRIORITY ORDER FOR THE ROLL OUT A strategic network plan shows how the franchise will open the territories evenly across a market. It does not make sense to open 10 territories up in the Northern Beaches of Sydney before opening a territory in the Shire or the Eastern Suburbs.

Franchisors should be aim to map the whole market early and appoint franchisees to nominated territories to get a good spread of business before filling in the neighbouring territories.

5. RIGHT-SIZING THE TERRITORY

cent of the local demographic to be your target customer.

Instead the rough rule we try and establish when we map the customers is the logical trade area (which may also be the territory). This is the area which has between 60 per cent and 80 per cent of the target customers.

In some sectors like a homemaker business (beds, whitegoods etc), this is probably about a 6–8 km radius from the store. In some other businesses like a 24/7 gym or a lotteries outlet, it is more likely to be a 2 km radius.

Territories in service-based businesses, which are often mobile, will be mapped from the franchisee’s home or office base.

There is no point asking for a huge territory if most of it will sit un-serviced for years. Critical mass comes when potential customers see your business regularly enough to want to contact you.

GETTING IT RIGHT Whatever is granted as a reasonable territory should be sufficient to support the business, and gains and leakage will always occur. The good franchisee just makes sure they have more net gains due to the great service they provide. n Peter Buckingham is managing director of Spectrum Analysis, a demographic mapping, franchise territory planning and statistical analysis company. Peter is a Certified Franchise Executive.

There is no point making a territory too big. It will never be possible for 100 per MAY/JULY 2019 | 102 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS

THE BIG

30

Top 30 questions you should ask your franchisor.

B

efore you buy a franchise, before you even get close to signing a deal, there are a host of questions you might ask that shine light on whether or not this franchise opportunity is right for you.

In the excitement of discovering you could build a business with a brand you’re passionate about it’s easy to gloss over some of the critical details. And when time seems a priority – you don’t want to let this one slip by – doing further investigation can seem to be putting the brakes on.

The preparation done before you commit to a franchise will, however, stand you in good stead once you are operating the business. There are no guarantees in life, or in franchising, but the more information you have at your fingertips the better prepared you will be.

For example, you’ll want to know about the business itself, to find out about the people behind and in the franchise, discover what franchisees past and present think, and get independent legal and accounting advice.

THE BUSINESS

Remember, the franchisor is there to grant you a franchise. It’s important that you are comfortable with the level of information provided, and the content of that information.

As a potential franchisee you could ask questions of the national franchise manager, who is probably your first contact. But you can also find out from other people on the franchise management team you might meet or speak with: the CEO or MD, the operations manager, the training manager.

1 WHEN DID THE BUSINESS START FRANCHISING? It’s reassuring to know the business has been operating for some time because it shows a track record. If the business is relatively new to franchising, ask a follow-up question: how long was the business operating before it became a franchise network?

2 WHAT PERCENTAGE OF OUTLETS ARE FRANCHISED? Are all the outlets franchised or are some company owned? Find out whether the company-owned outlets are waiting to be franchised or are part of a corporate ownership strategy. These company-owned outlets can be training venues for franchisees and testing sites for new ideas.

3 HOW MANY OF THESE FRANCHISEES RENEW THEIR AGREEMENT? Understand what the trend is for renewals, and if a lot of franchisees are not renewing, try and find out why.

4 WHAT PEAKS AND TROUGHS ARE THERE IN THE BUSINESS? This is not just applicable to seasonal businesses – it’s good to understand any trading patterns before you get into the franchise. This also might affect when you decide to invest in the business.

5 HOW MUCH WORKING CAPITAL IS REQUIRED? Don’t start your new business without enough cash on hand to tide you over while the revenue builds.

6 WHAT TRAINING IS INCLUDED IN THE INITIAL COST OF THE FRANCHISE? Great training will give you a confident start to your business but if you need to pay extra, you’ll need to put this in your budget.

7 WHAT MARKETING SUPPORT IS PROVIDED? Does the franchisor provide an opening campaign to help kickstart your business?

Marketing is crucial to your operation so you’ll want ongoing support too.

8 HOW OFTEN IS THE OPERATING MANUAL UPDATED, AND CAN I SEE IT? Once you are well on your way to committing to a franchise it should be possible to view the operations manual on-site. Find out if it’s regularly updated, and how it is available.

9 DO I HAVE TO USE PREFERRED SUPPLIERS? If the answer is yes, find out how restrictive this is, and whether or not the franchisor receives a supplier rebate.

10 WILL I GET ANY ASSISTANCE WITH STAFF RECRUITMENT AND TRAINING? If you’re inexperienced in this area of business it helps to have guidelines and processes to follow as you set up your team.

11 WHAT MINIMUM ORDERS OR BENCHMARKS DO I HAVE TO MEET? Each franchisee has a different ambition but many franchise systems encourage or set targets for performance. Ensure you understand what’s required.

12 CAN YOU DEMONSTRATE YOUR CAPACITY TO OFFER ONGOING SUPPORT FOR FRANCHISEES? What other ways can the franchisor help you achieve your goals?

13 WHO WILL BE MY MAIN CONTACT? It’s likely that you’ll have a business development or field manager as your main contact – ask if you can meet them.

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FRANCHISING, LICENSING AND DISTRIBUTION SPECIALISTS 2019 will be a dynamic year in franchising with the Franchise Inquiry Report released, and the Banking Royal Report impacting on funding.

More Regulation means greater compliance so specialist advice from Industry Experts is even more vital.

Robert Toth and the Franchise Group provide advice to companies and individuals: • • • • • • • • • • • •

Assisting overseas companies to establish business and franchises in Australia.

Master franchise rights.

Dispute resolution – Solutions and strategies.

Franchisee advice – fixed fee reports.

Sale and purchase of franchise systems.

Trademark and intellectual property (IP) advice.

Company structures and business succession planning Business modelling – Franchising, Branchising, Licensing, Distribution and Agency.

Employment law.

Consumer law and ACCC advice.

Franchisor compliance.

We have a network of franchise consultants to assist our clients establish their brand and systems and we offer fixed fees based on the scope of work, so our clients can budget for their legal costs with certainty.

MMRB 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 business entry plans.

www.marshmaher.com.au

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

CONTACT: robert@mmrb.com.au Robert Toth

stephen@mmrb.com.au Stephen Shipp

stacey@mmrb.com.au Stacey Ryan

kathryn@mmrb.com.au Kathryn Finemore

Partner & Accredited Business Law Specialist

Senior Associate

(03) 9604 9400

Special Counsel

Senior Associate and Accredited Commercial Litigation Specialist

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

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

franchiseenquiries@snap.com.au 1300 810 233

15 HOW, AND HOW OFTEN, DOES THE FRANCHISOR CONNECT WITH FRANCHISEES? Poor communication from the franchisor is commonly cited as a major source of dissatisfaction among disgruntled franchisees.

16 WHAT HAPPENS IF MY BUSINESS IS NOT A SUCCESS? Discover what business support is available to help underperforming franchisees. A good system will have a clear process for this.

17 WHAT IS THE PROCESS FOR SELLING ON MY BUSINESS? Whenever you decide to sell your business (during or at the end of the agreed term) there are likely to be restrictions on who you sell to – the franchisor commonly wants to approve any incoming franchisee, for obvious reasons.

18 HOW ARE ANY ONLINE SALES MANAGED ACROSS THE NETWORK? E-commerce is increasingly important and if it’s part of your franchise offer, find out how that works for franchisees.

19 HOW OFTEN WILL I NEED TO REFURBISH MY STORE? The franchisor, and the landlord, may require your outlet to be refurbished after a period of time. This will be at your expense so you need to know right at the beginning what investment you’ll have to find so you can include it in your long term budget.

20 WHO LOCATES THE SITE AND NEGOTIATES THE DEAL? One of the benefits of franchising is tapping into expertise.

Find out how much input your franchisor (and/or specialist firm) will have in your site selection and lease agreement negotiation.

21 WHO HOLDS THE HEAD LEASE? Franchisees can either be responsible for their lease as the head lessee, or sub-lease it from the franchisor who then has ultimate responsibility for the lease. This is an important one to know.

22 IS THERE ANY EXCLUSIVITY WITH THE AGREEMENT? Territories are sold as exclusive or non-exclusive. There are nuances to each according to the franchise so check what’s actually involved.

23 WHAT ARE THE CRITERIA YOU USE TO SELECT FRANCHISEES? Is there a structure with clear measures for franchisee selection?

It’s worth understanding the process.

24 WHAT DO YOU THINK ARE MY STRENGTHS AND WEAKNESSES AS A FRANCHISE CANDIDATE? Ask the franchise recruitment manager to highlight the pros and cons of your application. It will give you an understanding of their thinking, and you may be able to elaborate on or fix any concerns.

You can ask the most senior executive that you meet about the structure of the business.

25 WHAT IS THE EXPANSION PLAN FOR THE NEXT FIVE YEARS? Is there a vision and a strategy for the business that makes sense to you? Every business needs a clear sense of direction.

26 WHAT EXPERIENCE DOES YOUR TEAM HAVE IN BUSINESS AND FRANCHISING? It’s good to know that franchising is ingrained in the management and field teams.

27 IF THIS FRANCHISE ORIGINATED OUTSIDE AUSTRALIA HOW MUCH DOES IT IMPACT ON LOCAL OPERATIONS? There are pros and cons to a business headquartered overseas.

Learn what the structure looks like for this franchise, and the reporting process.

28 WHO OWNS THE INTELLECTUAL PROPERTY? Businesses can separate their IP from the operating side of the business and put it under separate ownership. It’s important to know the facts in case of an acquisition or franchisor failure.

29 DO YOU HAVE A FINANCIAL INVESTMENT IN THE BUSINESS? Find out who owns the business and whether or not the CEO or GM has skin in the game.

30 IS YOUR BUSINESS A MEMBER OF THE FRANCHISE COUNCIL OF AUSTRALIA AND LISTED ON THE AUSTRALIAN FRANCHISE REGISTRY? In a time of increased scrutiny in franchising, brands that are committed to transparency and high standards have an obvious advantage attracting franchisees.

Remember that these questions are just part of thorough due diligence. It’s worth digging deep to find out the most you can about your potential franchise. And then cross-checking information with other sources such as franchisees, franchise lawyers and accountants, and business advisers. n

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FRANCHISE BASICS

14 HOW DO FRANCHISEES CONNECT WITH EACH OTHER? Mentoring, regular regional meetings, intranet … there are a host of ways a franchisee network can stay communicated.

Find out what works best in this franchise system.

JOIN THE MRS. FIELDS FAMILY. Simple Business Model with Full Ongoing Support No experience required with Comprehensive Training provided Work / Life Balance with No Early Starts Great Café Style Menu including Breakfast, Lunch & Snack options Award Winning Coffee & Barista Training National & Local Marketing Campaigns Available from $199,000 +GST

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02 9472 8555

EYES

The documents you have to review as a potential franchisee

CHRISTINE LAU Lau Legal Consulting

T

he Franchising Code of Conduct requires franchisors to provide a disclosure document setting out prescribed information to all potential franchisees. This document includes the proposed franchise agreement that you will need to sign which contains the terms of your franchise.

There may be other documents that you will need to consider, depending on the nature of your franchise.

What information can you expect to find in the various documents?

DISCLOSURE DOCUMENT This document contains information regarding the franchisor and the franchise system including: • the franchisor’s financial details for the immediate past two financial years; • contact details of existing franchisees; • changes in the number of franchisees in the last three years; • franchisor’s conditions for the supply of goods and services to the franchisee; • restrictions imposed on the sale of goods and services by the franchisee (including online sales); • site restrictions; • the various payments that the franchisee will need to make to the franchisor; • initial estimated set up costs and other ongoing costs; • whether a marketing fund is operated by the franchisor; • what happens at the end of the franchise term.

FRANCHISE AGREEMENT This is the agreement that is specific to your franchised business and salient clauses will include: • the term of the franchise; • your rights as a franchisee to use the franchisor’s intellectual property to carry on the business; • start up and fit out requirements; • continuing obligations regarding the

• • • • •

operation of the franchised business; training requirements; fees payable to the franchisor; assignment procedures; franchisor’s rights; termination rights of both parties and procedures on termination.

PREMISES LEASE Where the franchised business is operated from a fixed location, you will need to be satisfied with the lease terms as you will be the responsible party either directly under the lease or as sublessee or licensee of the franchisor.

As franchisee, you are either required to take up a lease in your/your company’s name or enter into a sublease or licence with the franchisor. The latter is an arrangement where the franchisor is the lessee on the lease who, with the consent of the landlord, subleases/licenses the premises to you.

FRANCHISE AGREEMENT The important terms to focus on are: • the term (this needs to mirror the franchise term) • whether there are options to renew (to mirror renewal terms in the franchise agreement) • procedures to be followed for lease renewal • maintenance and refurbishment requirements • relocation requirements – especially when you are negotiating the lease directly with the landlord as these may impact on your obligations under the franchise agreement • commercial terms - rent and outgoings • other responsibilities as lessee; • assignment procedures and rights (these need to be read in conjunction with the franchise agreement to ascertain the complete assignment process); • default provisions and termination rights of both parties Where the premises are retail premises, a disclosure document detailing outgoings

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payable by the lessee, the commercial terms of the lease, alteration/redevelopment works planned or known to the landlord and other representations made by the landlord are also provided by the landlord.

Other important issues regarding the premises: • consult the local planning scheme and council to check the premises are within a zoning which allows the operation of the proposed franchise • check for proposed amendments to the planning scheme in the pipeline which may affect the continued operation of the franchised business.

OTHER DOCUMENTS REQUIRED BY THE FRANCHISOR These are generally documents that the franchisor requires you to complete to give effect to your obligations under the franchise agreement. For instance, you are required to keep all confidential information of the franchisor and the franchise system confidential. You will need to sign a Deed of Confidentiality.

Similarly with the personal guarantees franchisors require directors of franchisees to provide, a Deed of Guarantee and Indemnity will need to be signed by the directors of your company (if you are using a corporate entity to operate the franchised business).

MAJOR TAKEAWAY It is important that the plethora of documentation that you need to review and sign does not have conflicting terms and there are provisions that cater for your future intentions with regards to your franchised business.n Christine Lau is a commercial, corporate and property lawyer with more than 26 years’ experience. She provides practical and strategic advice to business clients to help them address immediate issues while also factoring in the long term goals and vision for their business.

FRANCHISE BASICS

FOR YOUR

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FRANCHISE BASICS

WHAT ARE MY

LEGAL LIABILITIES AS A FRANCHISEE?

As a franchisee you will be a business owner, and that means there are laws you’ll need to follow.

MARIANNE MARCHESI Partner, Legalite

Y

ou might think that by buying into a franchise system, most of the legal responsibility rests with the franchisor. While it’s true that the franchisor must manage risk at a higher scale – such as in terms of its intellectual property and more onerous legal requirements – owning a franchise is like owning any other business, and comes with its own unique risks and liabilities.

BUSINESS RISKS When you buy into a franchise, you must still consider your normal obligations at law as a business owner.

This includes complying with your tax obligations, such as registering for GST and PAYG, as well as your obligations as an employer.

Employment laws can be complex to navigate and it’s important that you understand your employees’

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FRANCHISE BASICS

entitlements and your obligations to provide a safe workplace. While your franchisor might assist you in complying with these, it’s ultimately your responsibility and one that should be taken seriously.

The consequences of not complying with your obligations as a business owner can be significant. In addition to potential penalties under law, you may also put your franchise agreement, and therefore business, in jeopardy.

OBLIGATIONS UNDER YOUR FRANCHISE AGREEMENT However, unlike other businesses, being a franchise owner has an added layer of liability in that you must also comply with your franchise agreement.

Franchise agreements are incredibly lengthy documents, and the importance of knowing your obligations under this cannot be understated. Your franchise agreement will typically set out your responsibilities with respect to: • purchasing of goods or services

The consequences of not complying with your obligations as a business owner can be significant. In addition to potential penalties under law, you may also put your franchise agreement, and therefore business, in jeopardy.

Now franchis ing

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Visit us: thecupcakedesire.com.au/franchsing-now/ Talk to us: Contact Kevin Bugeja on 0412 511 630 / info@franchise4u.com.au MAY/JULY 2019 | 112 | WWW.FRANCHISEBUSINESS.COM.AU

through approved suppliers local area marketing payment of fees to the franchisor use of intellectual property confidential information.

As your franchise agreement is a contractually binding document, failure to comply with its terms may entitle the franchisor to issue a breach notice and, in some cases, terminate the franchise agreement. Termination should be avoided at all costs, as it will often mean that you can’t recoup your investment and may walk away with very little.

Conducting due diligence, obtaining professional advice from an experienced franchise advisor, and reading the franchise agreement itself will all help in mitigating your risks as a franchisee.

or any finance agreements (such as bank loans).

Personal guarantees are commonly required in franchises, as it provides security to the franchisor or lender in the event that your corporate entity does not meet its contractual obligations. What this means is that the secured party can pursue you in your individual capacity and seize any assets you own (like your house or car) to recover unpaid money.

Obviously personal guarantees naturally involve some risk, so it’s a good idea to review and discuss your asset protection strategies with your lawyer and accountant before buying into a franchise.

• • • •

LEASE OBLIGATIONS

GUARANTEES You should also be aware of any personal guarantees you have provided, whether under the franchise agreement

If you operate your franchise from a fixed premises, you also need to be mindful of your obligations under the lease and/or occupancy licence agreement.

The most obvious obligation under

these agreements is for the payment of rent. As well as this, there will also be specific requirements relating to fitout both by the landlord and your franchisor. As fitout usually involves the outlay of significant expense, it’s important that you know what’s expected of you both initially as well as to upgrade the fitout at a later date.

Landlords will also often require personal guarantees, so again, it’s prudent to get advice on your obligations both as a tenant as well as in your personal capacity.

There’s a lot to consider when buying a franchise in addition to your usual liabilities as a business owner.

Seeking advice from a lawyer and accountant with particular expertise in franchising will help you understand your obligations and lessen your risk.

And remember – you’re in business for yourself but not by yourself, so be sure to ask your franchisor for help when needed, too. n Marianne Marchesi is the award-winning founder and principal of law firm Legalite.

GET IN THE GAME

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FRANCHISE BASICS

HOW TO GET THE

BEST FRANCHISE DEAL Never rush to sign unless you’re satisfied you’ve negotiated the best deal.

LUKE MCKAVANAGH Stone Group Lawyers

W

hen it comes to franchising and leasing, the documents you sign will govern your business dealings for many years to come. There’s a very limited ability to renegotiate in the future.

WHERE TO START After you’ve identified a promising franchise opportunity, there’ll be many discussions with the franchisor’s representatives. If you’re new to franchising, don’t be afraid to ask questions to gauge what’s up for negotiation. Approach your accountant and lawyer during these early stages – a professional advisor with franchising expertise can offer a wealth of experience towards what’s negotiable and where to start.

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FRANCHISE BASICS

HOW TO TACKLE THE FRANCHISE AGREEMENT Once the big-ticket items are agreed with the franchisor, they’ll provide your draft franchise agreement. Don’t wait until this point to start negotiating. Some key things to focus on when beginning your discussions with the franchisor include: 1. There’ll be an initial franchise fee payable to the franchisor for the grant of the franchise, initial training, opening support and sometimes provision of equipment/stock. Start by asking exactly what you get from this fee. If you don’t think you’re getting the best value, then push for more to be included – for example, a franchisor representative attending your business for a few days during your first days of operations to give assistance in starting up the business.

2. It’s standard to pay the franchisor’s legal costs for preparing the franchise agreement. You’ll save an additional expense if you can get the franchisor to waive these, or for the costs to be covered by your initial franchise fee.

3. Sometimes there’ll be no ongoing royalties or franchise fees for your first few months of operations, or a reduction during this time. This gives you the opportunity to establish your business and customer base before paying fees at full rates. If this concession is offered, try to increase its duration. If it’s not offered, push for it.

4. Generally, you’ll either have an exclusive or non-exclusive territory (or a mix) where you operate/market your business. Exclusivity means the franchisor won’t grant another franchisee the right to, or won’t themselves, operate within your territory. Always aim for the largest territory and as much exclusivity as possible. This reduces the risk of competition from within the franchise system itself. However, be mindful how a larger territory may interplay with minimum performance criteria under the franchise agreement (criteria may be based on territory size or population). [Read more about territory on page 105] 5. If you want the option to expand in the future, you can ask for a right of

first refusal. If the franchisor wishes to franchise a neighbouring area, they’ll then need to offer it for sale to you first.

6. Franchisors often have minimum performance criteria to be met. Work with your accountant to ensure these are achievable – consider the time it will take to establish your business. If not reasonable, then negotiate. Ensure that the consequences for failing to achieve the criteria are reasonable and constructive. If the franchisor can force you to sell your business, change it to say you must develop and adhere to a special business plan.

7. Ensure the length of the franchise is suitable with a reasonable number of options to renew. A franchise that’s too short may not give you enough time to recoup your initial investment costs (before you’re faced with having to pay a renewal fee), but one that’s too long may leave you locked into a contractual relationship (not ideal if your business isn’t successful).

When it comes to renewal options, ensure the criteria for renewal are reasonable and achievable.

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!

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PROFILE: Splash Swim Scho the art turnkey fit o follow Royal Life’s Full training and su Operation system

Splash have their o contractor that are

These are just a few examples of common things a franchisee can negotiate.

There can be many others depending on the franchise. Get a written commitment about anything you negotiate.

When you receive your franchise agreement, nothing prevents you from requesting further changes. However, be mindful that franchisors are generally reluctant to amend their standard agreement. Work with your lawyer to determine what’s worth requesting, and what’s worth accepting.

There can be many instances where the franchise agreement will say something, but in fact, the Franchising Code of Conduct or another law overrides what the agreement says; if you already have that legal right you don’t need to request that change.

WHAT HAPPENS WITH THE LEASE Larger franchisors sometimes handle the process of securing and negotiating your lease. You should ask from the outset what involvement your franchisor will

have and if you’ll pay for this service.

Franchisors who offer this and who have existing relationships with landlords can be an invaluable resource as they’ll know what you’ll need and what they can achieve. However, always obtain your own independent advice.

The franchisor’s involvement may be influenced by who’ll hold the lease. If the lease will be in your name, they may hold less interest, but if it’s in their name (and you’ll get a licence to occupy the premises) they’ll want greater control over the lease.

Be mindful that larger landlords (such as shopping centres) will be less willing to negotiate, but leases are always up for negotiation (more so than a franchise agreement). Remember again that the law implies certain provisions into leases, meaning that despite what the lease says about something, the law may override that.

Extra caution is needed if the lease isn’t governed by retail leasing legislation.

Your lawyer can advise you on what’s appropriate to negotiate.

Landlords often offer incentives such

as rent-free periods or fitout contributions which can be negotiated for your circumstances. An essential thing to ensure is that the dates, term and options, as well as timeframes to renew under the lease, match those under your franchise agreement.

You don’t want the time on your lease to expire but still have a franchise agreement on the go or vice versa.

TAKEAWAYS Always remember that if you don’t ask for something, you’ll never know if you’ll get it. We’re often surprised at the amazing deals franchisees can negotiate that really put them ahead of their competitors. A little forethought and planning in consultation with your professional advisers can help you secure a franchise agreement and lease for a successful business. n Luke McKavanagh is an associate at Stone Group Lawyers

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FRANCHISE BASICS

CASHFLOW: THE MOST IMPORTANT TOOL IN BUSINESS It’s crucial to manage cash flow when you’re a business owner. But first you need to know if a business is financially viable before you start up. You need a cash flow forecast.

MARIA ROBINSON Sequel CFO

W

hen you are buying or operating a business the single most important tool you can have to manage your finances is a cash flow forecast (CFF). It should be used when conducting your due diligence to decide whether a business opportunity is right for you, and it should be used while operating your business.

The reasons behind each use are different but equally significant.

BUT WHAT IS A CASH FLOW? Cash flow is literally the flow of cash into and out of your business. Picture it as your business bank account and the

money that gets deposited into and taken out of this account. A CFF is when you project “cash in” and “cash out” of your business in future (generally) months.

Cash flows are generally laid out in an excel spreadsheet.

Cash flow is not profit – that’s a different concept altogether.

KEY COMPONENTS OF A CASH FLOW There are three parts to a cash flow: 1. REVENUE Your cash flow forecast needs to capture all sources of revenue into your business. You can make this section as detailed or as simple as you like. You may choose to capture

all sources of revenue as one item or you may prefer to split it up. For example, if you operate a cafe you may want to be able to track revenue for food and drinks separately. You may wish to do a further breakdown of drinks into hot drinks, bottled drinks, alcohol, other. There is no right or wrong with this – you decide what you’d like to measure.

2. EXPENSES In this section you would capture two areas of costs: set-up costs and operating costs. Set-up costs are costs you incur when you first enter a business such as fitout, equipment purchase, induction training, legal advice, the purchase price and so on.

Operating costs are costs you incur

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FRANCHISE BASICS

to run the business ongoing such as rent, staff, insurance, coffee beans, food ingredients and so on.

You capture these costs in the period they fall due. For example, BAS (business activity statement: helps you report and pay your GST and other taxes to the Australian Tax Office) is paid quarterly so you enter it into the months of the year it falls due.

All expenses should be included no matter how big or small – lots of small expenses can add up.

One item many business owners forget to account for is the salary they will need to pay themselves to cover costs at home.

3. CLOSING CASH POSITION Once you have completed revenue and expenses for each period (month) you will get a closing cash position. First, you will have a figure that tells you how much of a deficit or surplus you have for that particular month, and then you will have an accrual figure. For example, if in February your revenue was $5000 and your expenses were $3000 then for the month of February, you will have a surplus of $2000. However, if you started your business in January and in January you had a deficit of $1000 then have accrued a surplus of $1000.

The accrual figure should match what is physically in your bank account.

WHEN TO USE A CASH FLOW FORECAST Earlier I mentioned there are two key uses for a CFF: 1. WHEN CONDUCTING DUE DILIGENCE TO DETERMINE WHETHER YOU SHOULD BUY A BUSINESS A CFF during due diligence will give you these key figures: • your capital requirement; that is, how much money you need to invest in the business until it generates sufficient revenue to cover all costs • when break-even is likely to occur; that is, how long it will take for business revenue to cover business costs • pay-back period; that is, how long it will take you to pay yourself back the amount you needed to invest to commence the business.

When purchasing a business you should have a CFF where you forecast three to five years and often for the initial term of your franchise agreement.

2. WHEN OPERATING YOUR BUSINESS When operating a business you should have a CFF for at least the next

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12 months. Once you are operating your business you should revisit your cash flow each month and update projects for the prior month to actuals.

This then makes your CFF a living tool to track your performance against plan, to make adjustments to future months and to make strategic or operational changes in your business based on what your cash flow is telling you. You can foresee tough times and good times. You can plan and act accordingly.

Your cash flow should be completed after you have completed a business plan. The reason for this is that the business plan outlines how you will run your business and this then determines revenue and costs.

The CFF is where you then determine the financial impact of the business plan. Engage your virtual CFO or accountant in this process.

Running a business is fun but it is also stressful. Good planning (strategic and financial) helps reduce stress by placing you in an informed position. n Maria Robinson is CEO of Sequel CFO, a franchise network which offers experienced CFO expertise and insights to SMEs on a retainer or contract basis.

FRANCHISE BASICS

IS YOUR FRANCHISE

VALUE FOR MONEY? Working out whether a prospective franchise will be a worthwhile investment is an important step before deciding to take the plunge.

BRIAN KEEN Founder, Franchise Simply and FranSystems

I

s your franchise value for money?

I’ll answer that question with another.

What is value? It’s a really good, and complicated question. Good, because you need to determine if it is good value for your investment. Complicated because everyone’s perception is different.

And so, the answer is often subjective.

What’s good value to Peter may not be good value to Paul, or good value to Mary.

So, first work out the questions that will determine your value.

How much do you need the income?

Will this be a hobby business? Or do you have high living costs to meet and need a strong cash flow?

How much time do you have? Do you need something in 60 days, or is six months fine with you? If you’re in a hurry you may not have the luxury of looking around for a bargain.

But beware, because in business sales, especially established businesses, bargains are few and far between because the vendor has a figure in mind, and it’s probably inflated.

So unless it’s a desperate or forced sale

they won’t budge, initially at least. I won’t go into negotiating tactics here but make sure you can handle serious negotiations. You don’t need to be a Donald Trump wheeler and dealer, but digging your heels in can be most profitable.

And if it looks to good to be true, beware because it probably is. Make sure you tick all the boxes before committing and resist the temptation to be rushed. There are many opportunities out there.

Now you have an idea of your view of value, here are a few of the boxes you need to tick.

BUSINESS BUYER’S ESSENTIALS 1. BUILD YOUR ADVISORY TEAM Tip: before you choose your team ensure they’re on board with your dreams and are supporters, not opponents, of your plans.

Who will be on your team?

Here are some of the experts you could get to work with you: Business advisers – they are commercially savvy and know the market. Talking with them as you decide which franchise is right for you is of great value.

Other franchisees – in the group you are joining and other groups. Get their view, their thoughts and advice. You’ll get the “insider's view” you need.

Accountants – can help you with the financial aspects of the business, review the figures and compare them with other examples.

Tip: accountants, and indeed most consultants, are trained to be conservative and to look for problems, so be ready to stand up for your decision and defend it resolutely against your critics.

And there will be many, from well-meaning family and friends to your advisers.

Lawyers – critical for advice on contracts of sale and franchise agreements, disclosure documents, leases, etc.

Your search engine – a source of infinite information on the industry, the company, its management team and for smart tools to help you in the process.

Tip: check out Business Victoria/Buying a franchise, and cash flow forecasting And critically, your personal, respected mentors.

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FRANCHISE BASICS

2. DOES IT SUIT? You as a person – are you familiar with the industry, does it align with your passion and values. For example, is the franchise selling overpriced or unethical products?

Your character profile – do your own DiSC profile. Free ones are available. Closely review the results and compare your characteristics with those needed for the roles you’ll have in your new business.

Do you love sales? Are you good with staff? And importantly, are you confident you can learn. Do you have business experience – the reality of business ownership can be a shock!

3. WHAT IS THE TOTAL INVESTMENT? If you are buying a brand new franchise outlet you can expect costs to include: franchisor’s selling price, including initial franchise fee; training; equipment; stock, vehicle, etc.

If the franchise is an existing business you’ll be paying the vendor’s asking price – but what about all the extras? You do not want an unexpected bill for $30,000 for stock arriving after six weeks!

Is the training and support sufficient for those critical first six months, and beyond?

Tip: check out if the franchise has first class operations manuals and software support platforms. Insist on being provided with credible budgets and produce your own business plan. Then get the franchisor to critique your efforts and give you frank and honest feedback. If possible, compare the results with a franchisee in the group.

4. CAN YOU REALLY AFFORD IT? Does this franchise business fit your budget? Carefully review the total investment as in point 3 above. Will the cash flow service your needs?

You will pay a premium for an established business but the results may be more predictable.

Consider if it is a respected brand. This would make it more attractive to customers, which is important for your ultimate resale.

Really be clear about what the true costs are. On top of the initial purchase price you’ll need working capital to keep you afloat and able to purchase goods. Be wary of a stock level that has been run down for sale – there may be a considerable replacement cost to get it back up.

Tip: negotiate longer trading terms, or settlement discounts.

Other costs to consider: • stamp duties, GST, other fees and taxes • franchise legal and accountancy fees • leasing costs – bonds, advance rent, legal fees • consultants and any industry fees • training • additional monies to your share or marketing fund?

• staffing – recruitment costs.

And finally, do you have sufficient cash reserves to carry you through if initial results are below expectations?

5. IS THE PRICE FAIR? Consider what it would cost you to set up a similar business. Ask yourself: how much time, effort and risk is this franchise saving me? You need to put a figure on it.

Is there room for improvement? What do you think you can do to add significant profit in 12 months? This is an important consideration because it will represent added value to your asset.

Valuing a business is in part an art, a gut feeling – does it look and feel right? And in part it’s a science – statistics and sound logic are crucial.

And remember, in any sale there needs to be a willing buyer and a willing seller. So don’t be hassled because ultimately everyone’s out to maximise their profit. Buyer beware.

MAKING THE FINAL DECISION Completing your research brings you to the most critical moment of all: making a decision.

Go back to your original measure of value. Do you need a job? Are you fed up with your current career path? Unfulfilled and looking for something challenging to do? Is your franchise a possible solution to feeling a lack of control, an inability to build net worth?

Franchising is a wonderful business model for most, but don’t become a dreamer. You must be realistic about the future and acknowledge your share of responsibility for your success. This will be your business to run. n Brian Keen, founder Franchise Simply and FranSystems

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FRANCHISE BASICS

WHY DO FRANCHISEES NEED

TO DO THEIR OWN MARKETING? Brand promotion is essential for a business. And franchisees have to play their part.

KELLY NIKOLAKOPOULOS director of marketing, Sport Star Academy

B

uying a franchise is an exciting time. It is a great way to launch a business knowing there is an established network in place that works. However, there is a misconception that when purchasing a franchise, partners are relieved of some of the essential business operational activities.

The reality is, that when buying into a franchise, partners are leveraging from an existing proven success model. This includes the brand, reputation, systems and procedures. It is then up to the franchise partner to take this concept and grow it within their chosen area or territory and a big part of that is called “local area marketing”.

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THE BENEFITS OF LOCAL AREA MARKETING Local area marketing (or LAM as it’s commonly called) is the essential ingredient in building a successful franchise. In order to succeed at a local level, franchise partners must completely immerse

FRANCHISE BASICS

themselves within their local community to understand its culture, people and key demographic. By doing so, franchise partners are able to build successful relationships and grow their business within the community. By understanding the local customer behaviour within the community, franchise partners have the opportunity to become a community hero, identify key market opportunities and from there grow their business.

THE ROLE OF THE FRANCHISOR WHEN IT COMES TO MARKETING In most systems, the franchise partner contributes a portion of their revenue to what’s called the “group marketing fund”.

The group marketing fund is a pool of money that the franchisor’s marketing team invests in marketing activities that promote the brand at a national level. Every single franchise partner benefits from this investment. The franchisor and marketing team will decide how the funds get allocated based on the marketing strategy, customer insights, trends and whatever else is relevant within their industry. The way funds get allocated is usually through a multi-channel approach that includes but is not limited to television, radio, digital, social media or print. Essentially, the franchisor will invest in any channel that is best suited to create awareness and build a connection with potential customers.

THE ROLE OF FRANCHISE PARTNER WHEN IT COMES TO MARKETING The key difference between franchise partners doing very well and others doing less well is that the successful partners understand the marketing planning process

and follow it. These processes are usually clearly explained during franchise onboarding and marketing training. They plan their time wisely, build relationships within their community, are consistent and understand the importance of following the process.

Franchise partners are supported in their marketing initiatives by having access to marketing assets already created and provided to them by the franchisor. These assets typically include flyers, brochures, EDM templates, digital assets, social media support assets and promotional material.

Another misconception is that franchise partners don’t need to invest in their own marketing as they already contribute to the national marketing fund. This is incorrect.

Franchise partners are strongly advised to invest additional funds into their own local area marketing plan. They should use the national marketing strategy as a guide and adapt that into their own local area marketing plans.

TIPS WHEN UNDERTAKING YOUR OWN LOCAL AREA MARKETING DEVELOP A PLAN FOR ATTRACTING CUSTOMERS Having a proactive plan in place for attracting customers is a good habit to get into.

Thinking about it from a local area perspective, the plan should include marketing tactics to engage and influence customers to support the franchise business. The franchisor should provide a list of marketing tactics suited to the business. The plan for attracting customers should always be referred to, refined and evolved as market conditions change.

DEVELOP A PLAN FOR RETAINING CUSTOMERS In today’s marketing landscape, data is king.

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Ongoing communication to a database that is unique to the local area is the ultimate way to build relationships. Think about ways to build value into the relationship that will keep customers coming back.

FOLLOW THE PROCESS Don’t reinvent the wheel. The system is in place because it works.

INVEST Invest time and resources into local area marketing. Having a presence within the local community, getting out and about, building those face-to-face relationships will pay dividends. Effort always equals reward.

DON’T SUFFER IN SILENCE Franchise partners wear multiple caps when starting their business. These include accounting, operations, HR, sales, plus more ... it can be very overwhelming! When in doubt, utilise the team in place who support the franchise partners and ask for assistance when required.

CONSISTENCY IS KEY Having a consistent, multi-channel approach is key when undertaking local area marketing activities. Never focus on one channel to build awareness and engagement. The customer buying journey has various stages including Awareness, Consideration and Purchase. Therefore, responding with the right communication at the right place and at the right time in their journey will always ensure a consistent communication approach. n Kelly Nikolakopoulos is director of marketing at Sport Star Academy franchise. Kelly is one of the Top 30 Franchise Executives for 2019.

FRANCHISE BASICS

NETWORKING WORKS Award-winning franchisee Crystal Petzer knows the power of networking. We chat with her about how to network, and why it pays to connect.

IFB: Networking’s significance to growing a franchise is often misunderstood. As a highly successful franchisee, Crystal, how important is networking for both your personal and business development?

CP: It is so important! If you’ve had your franchise for more than a week, you already know that the best way to attract and secure new clients is by referral. However, the limited circle of people you already know will restrict your opportunities to generate sufficient word-of-mouth referrals to create the new business your franchise will need.

IFB: Why did you first get into networking?

CP: Remember, people buy from people they like, and from those who come recommended – in business, as in life, relationships are key! To succeed you must increase the size of your circle, meet and communicate regularly with potential clients and develop business partners. This means networking, the age-old process of building and maintaining crucial relationships.

IFB: What did you want to achieve?

CP: The same thing as every business owner – visibility. In my coaching business, I repeatedly hear what everyone wants – more time, more leads, more customers and more profits. Networking is the most natural way to “get my name and what I do out there” and efficiently position my franchise business to receive more.

Attending business luncheons and other networking events raises my personal profile and can help keep me front and centre in the minds of the right people.

I realised it was not just knowing enough people; you have to know the right people. So my aim was always to join forces and build a team of other professionals who serve my ideal clients each and every day.

IFB: Surely your franchisor takes care of marketing the brand?

CP: Of course, but because they almost always control their brand’s marketing, while the majority of franchisee manuals include a LAM (local area marketing) component, they omit to include personal networking as a fundamental marketing activity that only the franchisee can implement.

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FRANCHISE BASICS While a progressive few make formal networking a requirement of becoming their franchisee, there remains little attention paid to the purpose, value and commercial rewards of business networking in the wider franchising industry.

IFB: Should franchisees start networking when their business is quiet?

CP: Not necessarily. It is important to understand that a flood of new business referrals will not materialise as soon as you join a networking group. It will take time to establish trust, and for others to fully appreciate your credentials. By sharing knowledge and experiences with your network, their relationship with you will grow, like mine, to become your most valuable marketing channel.

IFB: What determined your choice of networks?

CP: Network selection is very important.

Gaining business insights and knowledge from the peers in your industry’s association is valuable and boosts your own credibility.

Your franchise will also offer a variety of networking opportunities that will enable you to meet your specific industry challenges and opportunities. However, networks that offer and protect your speciality’s exclusivity will most often be better for your bottom line.

Remember, you are not joining a social club. I recommend looking for an established

Never ever think of networking as something separate to managing and growing your franchise; it is fundamental to your business’s marketing, and as the business owner it is the one key aspect you have personal control over.

business networking group of 20 or more members, with strong leadership and a welcoming culture that you are comfortable with.

IFB: Were you always an accomplished public speaker?

CP: Definitely not! Like most people, I dreaded the thought of having to stand up and speak in front of a crowd. However, you quickly find out that it’s not as hard as you feared, and by doing it you become far more confident when presenting

your business in any environment.

Some networks actually have helpful presentation guidelines, training and mentors to help you overcome this common fear.

Like you, most business people are optimistic and positive, and those who attend networking events are among the most confident. Regularly associating with positive individuals is a great morale booster, particularly in the difficult phases of your new franchise. If you are not naturally outgoing, regularly meeting new people will definitely lift your confidence.

IFB: What networking options have you explored?

CP: Nowadays there are so many city and urban options, and more choices emerging in rural areas too. I have visited many networking groups across Sydney and the Northern Beaches (where my franchises are headquartered).

My recommendations would include your local business chamber, where you will be introduced to members of other local networks. There will likely be a chapter of BNI (Business Networking International) within your franchise’s territory that you can visit and enjoy breakfast. Meet people at co-working spaces and introduce yourself to groups advertising on social media.

Remember, networks always welcome visitors, and your enjoyment of the experience is their priority too.

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opportunities will increase over time.

IFB: When you refer others how can you be sure it doesn’t backfire?

CP: Networking forms that mutual trust we all need before we refer our partners to others. You will invariably form trusted business associations and new friendships with like-minded people who you can be confident referring, and will also refer new business to you over time.

To quote Ivan Misner (the founder of BNI), “Successful networking of any kind starts with a genuine desire to build relationships for the purpose of giving and receiving business. If you are only networking to gain and not to give, you’ll never be successful.”

Remember, people buy from people they like, and from those who come recommended – in business, as in life, relationships are key!

IFB: How do you engage with your key referral sources?

CP: Networking is never an excuse to sell face to face but rather your chance to build long-term relationships with others who will think of you when they (or someone they know) next have the need for your services.

Look for networking opportunities where you and others target similar customers.

Individuals who service like markets are the most probable people to find the referrals you are networking for.

Make certain your network partners understand precisely what opportunities you are seeking – the more specific the better, as you’ll only ever get what you ask for.

IFB: Can you make certain the referrals you receive convert to genuine new business?

CP: Yes, the last things you need are ‘tyre kickers’. When you consistently communicate the types of issues you are equipped to solve and provide your networking partners with examples, the quality and quantity of

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IFB: How do you manage to find the time and money to network?

CP: When you fully appreciate the value of professional networking, this answer is a no-brainer! Never ever think of networking as something separate to managing and growing your franchise; it is fundamental to your business’s marketing, and as the business owner it is the one key aspect you have personal control over.

Remember when you attend any networking event: you’re at work, with the singular intent of turning a profit. The more time you put into it, the better your financial returns will likely be.

Networkers who fail to prepare are, of course, prepared only to fail, so my approach is always to set myself clear goals, plan some ice-breaker introductions in one or two succinct statements that enthusiastically define the benefit of what I do, and always practice empathetic listening.

IFB: Has networking contributed to your enterprise’s success winning the current national FCA Multi-unit Franchisee of the Year award?* CP: Definitely, I have found that wellorganised networking groups embrace a development program to assist their members in gaining the best from their participation. The personal development aspects of every network meeting, as well as supplementary skill development, have contributed to my personal and business success, and continue to do so. *MYOB FCA Excellence in Franchising Awards 2018 winners, Multi-unit Franchisee of the Year: Jim Kelly and Crystal Petzer, Hire A Hubby Mona Vale and Narrabeen, NSW

FRANCHISE BASICS

HOW TO TURN

YOUR STAFF INTO SUPERSTARS Let’s look ahead to your brand new business and how you can ensure your team members become top performers.

LEE-ANNE HUNT AND TEGAN ROSE HR Dept Ringwood

S

o, you’ve bought a franchise. It’s so very exciting.

You finally get to be your own boss; but wait, you’re now also someone else’s boss. That’s exciting too, and you plan to do this right, right? Not to make the same mistakes your old bosses made. You will have a well-functioning team who love coming to work every day and your product is just going to run out the door. Hmmm, where’s the manual for that in the franchise guide?

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FRANCHISE BASICS

It doesn’t matter if you’ve had your franchise for a week or for years – the key to leading your people is the same.

Think about when you were an employee and what you wanted from your boss and the company you worked for. Apart from the million zillion dollars I’m sure you were worth, what was it that was important to you? It really is all about your company culture. And who drives that culture?

Well, that’s you. Yes guys, it starts at the top. And despite what they say it’s not that hard. But like everything in business it does need the investment of your time.

Based on our experience, here’s our road map for how to get the culture you want.

LEAD BY EXAMPLE Is there anything more annoying than being told by your boss to do something when they are doing the complete opposite? It’s like the “do as I say, not as I do” rule with children. It doesn’t win any fans. Far better to take the approach of one lawyer/business owner I know. He has a team of 15 but every week, rain, hail or shine he empties the bins and puts out the garbage. He also sweeps the front entrance to the building every morning. He expects his team to roll up their sleeves and they do, because he does. Take this opportunity to have a look in the mirror and see what you are not doing or could be doing to lead the way for your team. And check that what you are asking them to do is in fact something you would do.

I know, I know – you thought when you became the boss you wouldn’t have to do that stuff. It’s time for a rethink!

A CULTURE OF ENCOURAGEMENT

EXPLAIN YOUR WHY

If you don’t want to have to do everything forever by yourself, you will want to create a culture of encouragement. This means you must first give permission for others to do the tasks you have employed them to do, knowing they will do them differently to you, and to allow them to fail and learn just like you did. This sounds easy, but we have known many a boss who won’t let go for fear that it just won’t be done properly. If this sounds like you, you may need to invest some time both into breaking down your tasks and in training your team to complete them. What remains from there is for you to coach and cheerlead the team along the way, setting the scene for a workplace full of encouragement (remember, leading by example).

This last point requires you to take a step back from where you now sit. Explain your why. We have seen many good ideas go down the gurgler because of lack of employee buy-in. You may know the catch cry that helps build your brand, sticks in your customers’ memory and brings back that awesome repeat custom we all want. But do your team know that?

Do they understand your why and how it impacts them? So, figure this out. If you can’t explain your why, then perhaps you need to change it. Just because you’ve “always done it this way” doesn’t mean you have to keep on doing it.

And just as you sell your why on the little things, don’t forget to sell your dream. Not everyone has shared, knows or understands your journey. If you can sell your dream and inspire your team to sell for you, your product will run out the door. If you’re struggling with this, try to remember why you started your business in the beginning, the journey so far – all those firsts, moments of doubt and triumphs.

Write them down and share them with your team. Help them to understand you and your vision and they will become the biggest advocates for your brand.

Creating a winning culture is within your grasp. You are the boss. You have to lead, share and encourage your team to follow you. It’s all up to you. n

BE THE BOSS Our next point has been many a boss’ downfall. Don’t be your team’s best friend; be their boss. This seems to be the perennial mistake of many business owners: trying to be friends on FB or Insta; going out for Friday night drinks that turn into Saturday morning and then trying to command respect on Monday. It just doesn’t work like that. Keep your distance.

Yes, have a group FB page where you can share information, wins, losses and shout-outs to fabulous work. But keep your socialising to your own friends. Otherwise you run the risk of having, or being seen to have, “favourites” and everyone else feels out of the loop, then the grumbles begin. Or even worse, you share company information, your personal opinion on other staff or your franchisor and the next minute you’re in hot water.

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Tegan Rose & Lee-Anne Hunt are HR Dept franchisees. They have over 20 years experience in HR, change, learning and development, and communications.

FRANCHISE BASICS

ON YOUR GAME Four risk-reducing steps you can take before buying a franchise.

MICK KEOGH Deputy chair, Australian Competition and Consumer Commission

S

tarting a business is not risk free, and this applies equally to a franchise as it does to any other form of business.

Even where the franchisor and franchisee comply with the law, starting a new franchise business carries risk. When you are proposing to invest your own time, money and passion in a business, you need to take steps to reduce risk.

Research, often referred to as due diligence, is critical for someone thinking about buying a franchise.

There are four minimum steps of due diligence detailed below. Depending on your circumstances and proposed level of investment, your due diligence efforts may need to involve much more that these minimum steps.

FOUR STEPS TO DUE DILIGENCE STEP 1: READ AND UNDERSTAND THE DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT A disclosure document is designed to tell you certain important information about the franchise before you enter into the agreement. The information must be given to you regardless of whether it encourages or discourages you to buy.

The franchise agreement is the legally binding contract between you and the franchisor. You should take the opportunity to negotiate changes to it if you need to.

Both of these documents must be provided to you before you sign or pay non-refundable money to the franchisor.

It is critical that you read and understand both the disclosure document and the franchise agreement, and any other key documents such as a lease, licence agreement or a purchase of business contract.

You should expect that there will be parts that are difficult to understand.

Be prepared to ask questions. Begin by asking questions of the franchisor and make notes of what they say.

Remember, if they tell you something that makes you more likely to buy the franchise, get them to put it in writing.

It is not unusual to receive nearly 100 pages of information, including the franchise agreement, disclosure document and other key documents.

Given this, you’ll need time to review these and get advice. That’s when step 2 becomes very important.

STEP 2: IT’S YOUR INVESTMENT, SO TAKE YOUR TIME You may hear that that you have 14 days to sign the franchise agreement once you receive it. This is incorrect.

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Helping franchise businesses to evolve in a new landscape After a testing year for franchising and small business, 2019 provides good prospects for those who evolve and risk for those who ignore the warnings of the past.

A number of recommendations came out of the 2018 Senate inquiry into franchising and the FCA is determined to be at the forefront of implementing change.

The FCA looks forward to working to effectively implement both the changes we have underway and the recommendations of the inquiry, including a franchising task force.

Two key initiatives by the FCA are the establishment of a registry of all franchises in Australia, and the mandatory requirement to obtain legal and financial advice prior to entering a franchise agreement.

The FCA has made it clear that we will not tolerate breaches of the franchising code or consumer law by either franchisors or franchisees, whether or not they are FCA members.

Any breach of the law by a franchise business reflects on the reputation of the majority in franchising who do the right thing.

The FCA has requested that the ACCC consider improving its early intervention complaints handling and be more public in communicating progress in relation to complaints.

A new FCA Employment Compliance Helpline is now available to provide practical advice to members on how to meet day-today compliance obligations.

The FCA has also acted to more directly engage franchisees through a new Franchisee Advisory Committee and is encouraged by the response it has received from franchisees.

Franchising works best when there’s open collaboration between franchisors and franchisees and the FCA is committed to ensuring their mutual success.

Mary Aldred - CEO Franchise Council of Australia

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FRANCHISE BASICS

Fourteen days is the minimum, not the maximum time you have.

Investing in a franchise is a big decision that should not be rushed.

In fact, this 14-day minimum disclosure period does not begin until you’ve received the franchisor’s disclosure document, the franchise agreement (in final form) and a copy of the Franchising Code of Conduct.

Your disclosure document includes some of the key information for you to carefully consider before signing a franchise agreement. It must include the costs of setting up and operating the business plus any limitations on your supply arrangements.

Don’t rush into making a decision before you’ve done your due diligence. In fact, if the franchisor puts pressure on you to make a quick decision, you should consider this a warning sign to take extra care. Take your time and consider very carefully whether or not to sign the franchise agreement. Considering new business opportunities is exciting but also think about what will happen if you want to end your relationship with the franchisor.

So you’ve now taken your time to closely review the documents, but what is franchising like in real life, day to day?

Your disclosure document can help you (see step 3).

STEP 3: PHONE A (FRANCHISING) FRIEND Many franchisees speak with friends and family before deciding whether or not to buy a franchise. This has value because they know your strengths and weaknesses.

However, it is vital that you speak with existing and former franchisees as well, because they know the strengths and weaknesses of the franchise system.

Existing franchisee contact details must be listed in the disclosure document. Use this information to speak with existing franchisees who are at different stages of their franchising lifecycle: for example, those who have been a franchisee for less than one year, some for two to three years and some for five or more years.

Ask them some key questions such as how they find life as a franchisee, and how many hours they work per week. Has it cost more than they expected? What would they do differently next time? And finally, ask whether their expectations before entering the franchise were met.

It also very important to speak with former franchisees who have left the

system. Contact details of former franchisees (who left in the last three financial years) are also in the disclosure document.

If they don’t want to be contacted they can ask the franchisor to keep their contact details private, so if the contact details are listed, don’t feel shy about getting in touch. This is very important for any former franchisees who were located at the site or in the territory you are considering. Be sure to ask them why they left the system.

If the details of existing or former franchisees are inaccurate or incomplete, ask the franchisor for the correct information, including current phone numbers. Don’t be deterred from making contact with as many existing and former franchisees as you can.

STEP 4: GET ADVICE FROM INDEPENDENT PROFESSIONALS WITH FRANCHISING EXPERIENCE Through our work regulating franchising, the ACCC has found that too many prospective franchisees do not obtain legal, accounting and business advice before signing up.

This is a real concern because professional independent advice can often help reduce the risk associated with such decisions. We strongly encourage

PARTNER WITH A LEGAL PROFESSIONAL WITH COMMERCIAL ACUMEN Franchising is an important decision for both franchisors and franchisees.

We are on hand to provide strategic, practical solutions to help you plan and achieve your short and long term goals.

Unlike other legal firms which provide legal advice piecemeal, we look at the whole picture, help you with risk management, compliance requirements to eliminate unwanted surprises.

Our principal has valuable in-house experience, has advised businesses for more than 25 years and understands first hand the many challenges faced by business owners.

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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prospective franchisees to get qualified advice from professionals with franchising experience.

Before you select an adviser, ask them about their experience with the franchising sector and how they will provide their advice. Have a list of questions you wish to ask your lawyer, accountant and business adviser. Make notes about what you are told by the adviser.

If, after getting advice, you decide not to proceed with the franchise, you have not wasted your time. Think of all the money you’ve saved and the years of stress you have avoided.

If you do go ahead, you will be much better informed about potential risks relating to the business and how you can take steps that protect your investment.

ACCC AND FRANCHISING RESOURCES AND GUIDANCE ABOUT FRANCHISING Education about franchising is part of the ACCC’s role.

We produce and distribute a range of guidance materials to help prospective franchisees (you), franchisees and

franchisors understand their rights and responsibilities under the code. Visit the ACCC website for information on the code, FAQs, a manual for franchisors and factsheets: www.accc.gov.au/ franchisingcode.

The ACCC’s free pre-entry franchise education program delivered by FranchiseED can also help prospective franchisees assess franchise business opportunities. Visit www. franchise-ed.org.au/online-courses/ pre-entry-franchise-education/.

To keep up to date with events, court cases and changes to the law in the franchising sector, sign up to the ACCC’s Franchising Information Network at www.accc.gov.au/fin.

ACCC’S ROLE IN FRANCHISING SECTOR Franchising continues to be a priority of the ACCC compliance and enforcement policy in 2019. We will be conducting proactive compliance checks of franchisors in the restaurant, cafe and takeaway food industry. The ACCC has chosen this industry because it receives more complaints from franchisees in this sector than in any other sector.

Anyone can contact the ACCC at www. accc.gov.au/contact-us for information about their rights and obligations under the code, to report alleged breaches or to report concerns that a business is not complying with the Franchising Code or the Competition and Consumer Act. Be aware that while we welcome and encourage reports, the ACCC cannot pursue all individual cases reported to us. Our role is to focus on issues that will or have the potential to result in widespread small business or consumer detriment.

Individual dispute resolution services are provided by the Australian Small Business and Family Enterprise Ombudsman. They can provide information on the dispute resolution processes under the code, options to resolve disputes and access to mediation services to franchisees and franchisors.

The information in this article is for guidance purposes only and does not constitute or substitute for legal advice. When considering a franchise opportunity, seek advice from a lawyer, accountant and business adviser with franchising expertise. n Mick Keogh is deputy chair of the ACCC.

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FRANCHISE BASICS

HELPING FRANCHISE BUSINESSES

TO EVOLVE IN A NEW LANDSCAPE Q&A with Mary Aldred, CEO Franchise Council of Australia

A

MARY ALDRED CEO, Franchise Council of Australia

ustralia is a very franchised economy. There are now 80,000 businesses operating within 1314 different franchise systems, contributing $181.8 billion in annual revenue, $27 billion in annual wages and employing 594,500 people across urban, rural and regional Australia.

With franchising in the spotlight with the recent release of the parliamentary inquiry report, I’ve been engaging with a wide range of stakeholders on the importance of franchising to the economy and what we are doing as a sector to evolve in the new landscape.

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The FCA made it clear that we will not tolerate breaches of the franchising code or consumer law by either franchisors or franchisees, whether or not they are FCA members.

WHAT WAS THE FCA’S INITIAL RESPONSE TO THE INQUIRY REPORT? We broadly welcomed the report and support the important and meaningful steps identified to help improve the sector.

We were also pleased to see the committee take up some of our recommendations around increased compliance activity by the regulator.

Any breach of the law by a franchise business reflects on the reputation of the majority in franchising who do the right thing. This includes wage compliance, which is an absolute non-negotiable across the board.

However, a key message of our submission to the inquiry was that better enforcement of existing regulations is a priority.

WHAT ROLE DOES THE FCA PLAY IN COMPLIANCE? The FCA is not a regulatory body and cannot initiate investigations or issue penalties or fines. Regulatory oversight and enforcement are the responsibility of the Australian Competition and Consumer Commission.

We have requested that the ACCC consider improving its early intervention complaints handling and be more public in communicating progress in relation to complaints.

We welcome the fact that enforcement has been stepped up recently, with the first prosecutions for breaches of the franchising code and consumer law. The ACCC has also announced that it is targeting the retail food sector in a compliance blitz.

Here are the top questions I’m being asked, and how I’ve been responding.

HOW DID THE FCA ENGAGE WITH THE PARLIAMENTARY INQUIRY ON FRANCHISING? We listened carefully to the issues raised throughout the process of the inquiry, which went for almost a year.

We provided detailed submissions and testimony.

SHOULD THERE HAVE BEEN ADDITIONAL INITIATIVES IN THE PARLIAMENTARY INQUIRY REPORT? There are some missed opportunities that the report does not pick up on and could have taken a stronger position in addressing.

For example, the FCA’s recommendations around mandatory pre-legal and financial advice for first-time franchisees was not included, and the recommendations could have gone further to get to the core issues of “unfair” leasing arrangements on small businesses.

HOW IS THE FCA HELPING TO PRACTICALLY ASSIST ITS MEMBERS? At a very practical day-to-day level we work to provide support and information.

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• The FCA Employment Compliance Helpline, delivered in partnership with ER Strategies employee relations specialists. The helpline provides direct access to a 30-minute consultation on how to meet day-to-day compliance obligations, including pay rates and conditions, counselling and discipline matters, legal obligations, employee disputes, discrimination matters, and best-practice employment standards.

• The FCA Energy Hotline, delivered in partnership with the Energy Alliance team of independent energy analysts.

The hotline helps franchises make simple changes in the workplace to lower energy usage and achieve savings. Franchisees can review their regular billing rates and get advice on market offers and renewal options.

We also run a number of education programs, like our Certified Franchise Executive course, and our national calendar of events gives members the opportunity to engage with other business leaders to share ideas, problems and solutions.

WHAT IS THE FCA’S FOCUS FOR 2019?

A number of recommendations came out of the inquiry but the FCA is determined to be at the forefront of implementing change.

We’ve already set up a Franchisee Advisory Committee to directly engage franchisees on critical current and emerging sector policy issues, and are following up on two other key initiatives: • the establishment of a mandatory, sector-wide registry of all franchise systems in Australia • making it mandatory for prospective franchisees to obtain business and legal advice, which would ensure proper due diligence by prescribing franchisees to be fully informed before entering a contract.

The past year has been tough for small to medium businesses, especially retail. Lower consumer spend, anti-competitive leasing terms, escalating overheads, lack of finance options, and red tape are often key to why many SMEs are struggling to make a profit.

We will continue to advocate strongly for franchising and small business to achieve a fair and better operating environment and that includes ensuring healthy and productive relationships between big and small business partners, including franchisors and franchisees.

With so many jobs reliant on the sector, we want to make sure that job security is paramount but also that there are opportunities to improve businesses so that they are compliant, sustainable and profitable in the new business landscape. n

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CODE OF CONDUCT?

Regulations are important when you’re operating a franchise and this code is the foundation for franchising rules.

T

he Franchising Code of Conduct is a mandatory industry code. That means franchisors, both in Australia and overseas brands who operate here, must comply with it.

WHY DOES THE FRANCHISING CODE EXIST?

Franchisors typically have the lion’s share of power in a franchise relationship and the reason the Code was introduced was to try and reset the balance.

The various updates have each time worked to improve the franchisee/franchisor power balance.

The Code also plays a role in making potential franchisees aware of the commitments they enter into when buying a franchise. Getting the right information to make an informed decision is an important step in the buying process, and that’s where the Code can provide guidelines and insights.

WHAT DOES IT DO?

First of all it defines what exactly a franchise agreement is, and then regulates how franchisors and franchisees act towards each other.

The Code sets out obligations and processes which must be followed and cannot be waived.

For instance, the Code outlines: • A disclosure document provides crucial information about the franchise system such as details about current and former franchisees, costs franchisees will have to pay out during the course of the franchise term and any litigation that the franchisor is involved in. This franchisor has to maintain this and update it every year.

• The franchisor has to give a franchise buyer a current disclosure document, a copy of the proposed franchise agreement and a copy of the Code. These must be given at least 14 days before a franchise agreement is entered into.

• There is a seven day cooling off period allowed after a franchise purchase but this doesn’t include renewed agreements or variations or transfers of existing franchise agreements.

The Code also covers things like restrictions around significant capital expenditure, how marketing funds must be operated, what happens when a franchisee breaches the franchise agreement, mediating disputes, and acting in good faith.

“

The Code sets out obligations and processes which must be followed and cannot be waived.

BREACHING THE FRANCHISING CODE

Complying with the Code is an essential part of being a franchisee or franchisor. If either a franchisor or franchisee breaches the Code, they are also breaching the Competition and Consumer Act, and this has serious consequences.

A breach can attract severe penalties of up to $63,000.

The Australian Competition and Consumer Commission is responsibile for enforcing the Code and can issue infringement notices which attract a fine of $10,500 for each breach.

THE CODE AND FRANCHISING

The Franchising Code has been part of the franchising landscape since 1998. It has been updated several times, each revision an attempt to better balance the franchisee/franchisor relationship.

A copy of the Code can be found on the ACCC website.

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FRANCHISE BASICS

WHAT IS THE FRANCHISING

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 bank’s understanding of the brand and its business methods. While this funding option is popular, it is not common across the sector.

ASSIGNMENT

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

BUSINESS-FORMAT FRANCHISE

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

FIXED SERVICE FEE

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

FRANCHISE AGREEMENT

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

FRANCHISEE

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

a business model with four criteria – a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil.

FRANCHISEE ADVISORY COUNCIL

COMPANY-OWNED UNITS

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

locations run by the franchisor rather than a franchisee.

CONVERSION

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

a structure for franchisors to seek and receive feedback from their franchisees.

Participating franchisees may be elected or chosen by the franchisor.

FRANCHISE FEE

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 is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. Franchisors often refer to a term with two options to renew as 5 + 5 + 5, for instance.

FRANCHISOR

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

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GREENFIELD SITE a brand new site.

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

GOODWILL

REGIONAL FRANCHISEE

INFORMATION STATEMENT

RENEWAL

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

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

INTELLECTUAL PROPERTY

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

LICENSE

the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise.

LOCAL AREA MARKETING

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

MARKETING & ADVERTISING LEVY a regular flat or percentagebased-fee paid into a centralised advertising or marketing fund.

MASTER FRANCHISEE

a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied.

MULTI-UNIT FRANCHISEE

a franchisee who has been granted the rights to run more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.

OPERATIONS MANUAL

the franchisee’s guide to operating the franchise business. The franchisor may produce several manuals for different

similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area. once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further term. This process is bound by the Franchising Code of Conduct. There is no automatic right of renewal.

ROYALTY

fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support. It may be a flat fee or a percentage of sales or profit.

TERMINATION

the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement.

TERRITORY

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

TOTAL INVESTMENT

the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required.

TURNKEY FRANCHISE

a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.

WORKING CAPITAL

the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.

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FRANCHISE BASICS

BUYING A FRANCHISE:

THE PROCESS

It can take three months or 18 months to find and open up a franchise.

This is the typical path that will take you to franchise ownership.

1. MAKE AN INQUIRY

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

4. CONFIDENTIALITY

The franchisor will ask you to sign a confidentiality agreement before sharing sensitive information with you.

Expect a copy of the disclosure document, draft franchise agreement and the Franchising Code of Conduct, plus an information statement.

Your franchisor might also send more commercially sensitive information to help you consider the viability of the franchise opportunity and build your business plan.

7. PROVE YOURSELF

You will need to create a business plan and show to the franchisor you have the capacity to take ownership of and drive this particular franchise unit.

A follow-up meeting will enable you to ask further questions following on from your due diligence, and for the franchisor to further quiz you.

2. FRANCHISOR RESPONDS

3. FIND OUT MORE

5. FIRST MEETING

6. CONDUCT DUE DILIGENCE

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

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

8. OTHER STEPS

Some brands can include a number of interviews, try-before-you-buy work experience or a panel review.

The franchisor might ask you to complete a profiling assessment.

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

This is a crucial stage, so take your time and be thorough in your research. You will need to sign a document confirming that you have received independent advice, or that you have decided not to do so.

Obtaining expert opinion from franchise-experienced professionals can save you money in the long term, so it is a worthwhile investment.

9. DON’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?

W

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

tial in the company’s long term success.

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

CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR

A CIO has responsibility for the implementation, management and efficacy of information and computer technologies, vital in today’s digital world.

It’s the CIO who will investigate the benefits of any proposed technological change, and then implement the system - a website or inventory software, for instance.

The role is increasingly strategic and directed to gaining and maintaining the competitive advantage of a business.

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 MARKETING OFFICER

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

CHIEF INFORMATION OFFICER

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

The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations.

Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.

GENERAL MANAGER

A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations.

The responsibilities of the role may be incorporated into a CEO role.

FRANCHISE RECRUITMENT MANAGER

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

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the CEO or MD in the final selection.

The franchise recruitment manager needs to meet internal recruitment targets and ensure franchisees are a match for the franchise brand.

BUSINESS DEVELOPMENT MANAGER/FIELD MANAGER:

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

TRAINER

The person or team who will set up a franchisee to run the business.

Responsibility for training may fall under operations or general management.

Training may involve technical skills, customer service, business basics, and operational procedures. The trainer may train franchisee staff.

PR AND COMMUNICATIONS

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

SUPPORT TEAM

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

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

FRANCHISE BASICS

30

THINGS TO CHECK R BEFORE YOU INVEST

Get set prior to your purchase with our easy checklist.

Just tick off the must-do items.

Are you confident in the franchisor?

Have you worked out your operating costs?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

Do you know the term of the agreement?

What training is available and who pays for it?

Is the franchisor compliant with the Franchising Code of Conduct?

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

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

Have you run a credit check on the franchisor?

Is the business operating from fixed or mobile premises?

What marketing will the franchisor implement?

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

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

What marketing is your responsibility?

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

Does the length of the lease match the franchise term?

What is the dispute resolution process?

Have you evaluated the financial returns?

What are the store fit-out costs?

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

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

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

Do you have an exit plan?

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

Are you restricted in your product purchase?

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

What royalties are there and how are they calculated?

Are you required to reach a minimum performance level?

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

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RESOURCES AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC)

The ACCC is an independent Commonwealth statutory authority which regulates the mandatory Franchising Code of Conduct (Code) and can investigate alleged breaches of the Code.

The ACCC is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.

Its role is to protect, strengthen and improve the way competition works in Australian markets and industries.

Visit: WWW.ACCC.GOV.AU

BUSINESS.GOV.AU

This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business.

New business owners can access the advice finder, events calendar, grants and assistance finder, a directory of government and business associations, planning templates, business videos, and business checklists.

Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training Visit: WWW.BUSINESS.GOV.AU

FRANCHISE COUNCIL OF AUSTRALIA

The FCA is the main body for representing franchisees, franchisors and service providers in the $146bn franchising sector in Australia.

Becoming a member of the FCA is a voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees.

Visit: WWW.FRANCHISE.ORG.AU

FRANCHISEBUSINESS.COM.AU

This is the online arm of the Inside Franchise Business publication. Both platforms are focused on providing essential advice and information for anyone looking to invest in a franchise. The website provides short and snappy business tips and news, video interviews, industry commentary and market reports.

FranchiseBusiness.com.au is also the official directory of the FCA and lists franchising opportunities available in Australia and New Zealand. Potential franchisees looking to move into the franchising sphere can explore opportunities that currently exist in the market and enquire about the franchisor or brand.

Users also have access to franchise consultants and advisors who

can assist prospective or existing franchisees and franchisors with legal, financial educational and training, IT and other services.

Visit: WWW.FRANCHISEBUSINESS.COM.AU

FRANDATA

FRANdata is the home of the Australian Franchise Registry which identifies franchise brands that have up-to-date franchise agreements and disclosure documents, and which have confirmed with the Registry their compliance with the Franchising Code of Conduct.

FRANdata also provides reports on the franchising sector.

Well established in the US since 1989, the business was established in Australia in 2013 to help the franchise sector address key strategic challenges and take advantage of opportunities available to qualifying brands.

Visit: WWW.FRANDATA.COM.AU

FRANCHISE.ED

Franchise.ED (previously Asia-Pacific Centre for Franchising Excellence) was created to help people find independent information and research on franchise best practice.

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

THE FAIR WORK COMMISSION

Fair Work Commission (the Commission, previously called Fair Work Australia) and the Fair Work Ombudsman (FWO) are independent government organisations that regulate Australia’s workplace relations system but have different roles.

The Commission is the independent national workplace relations tribunal. It is responsible for maintaining a safety net of minimum wages and employment conditions, as well as a range of other workplace functions and regulation.

The FWO enforces compliance with the Fair Work Act, related legislation, awards and registered agreements. It also helps employers and employees by providing advice and education on pay rates and workplace conditions.

Visit: WWW.FAIRWORK.COM.AU

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

A-Z LISTINGS

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

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 670 stores across VIC, ACT, NSW, QLD and WA. We opened our first store in 1977 and have almost 40 years’ experience in franchising.

When you buy a 7-Eleven franchise, you buy two things. Firstly a globally recognised brand name, and secondly a business system that works, one that provides more support than most other franchises. As our stores are open 24/7, support is just a call away 24 hours a day, 7 days a week.

We are looking for Franchisees who have the potential to lead their team to deliver an outstanding experience to customers. Learn more about what it takes to be part of a partnership in success with 7-Eleven, at www.franchise.7eleven.com.au

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.

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

Phone: 02 9037 2849 Contact: Doug Downer doug@thealternativeboard.com.au www.thealternativeboard.com.au Start up costs: from $40,000 up to $95,000

PROFILE: The Alternative Board is a membership organisation of Business Owners and CEOs who meet monthly in confidential board meetings to assist each other in transforming their businesses.

The Alternative Board (TAB) exists to help business owners align their business vision with their personal vision. It exists to provide owners/CEO’s with the power to ensure that their businesses will deliver what they want out of life.

In addition to the monthly board meetings, the facilitator/coach meets with the business owner/CEO each month and works with them in a one on one coaching session focussed exclusively on their business.

Start up costs: $350,000- $450,000 PROFILE: Anytime Fitness is Australia’s biggest gym community, with over 520,000 members and 500+ clubs nationwide. With a 24/7 concept, alongside PT’s and the Anytime Workouts app, we’re getting Australians moving for a fitter and healthier future.

When you join the Anytime Fitness family, you’re investing in much more than a gym, you’re joining a fitness movement full of like-minded entrepreneurs. In October 2018, we won the FAC – Franchise Council of Australia – International Franchisor of the Year award - based on our financial strength and stability, growth rate and size of our system. We have over 4,000 clubs in over 30 countries. That means an unrivalled support network to draw on, from dedicated franchise coaches and national marketing teams, to a wealth of online tools and training.

As an Anytime Fitness franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group (CWG), to guide and support you every step of the way.

Phone: 07 5509 0000 Contact: Mark Crapper franchise@ozskin.com australianskinclinics.com.au/franchise

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

PROFILE: Australian Skin Clinics was founded in 1996 and is one of Australia’s leading cosmetic clinics focused on Skin Rejuvenation, Cosmetic Injectables, Laser Hair Removal and Fat Reduction.

With 50 clinics nationally Australian Skin Clinics is empowering people to look and feel proud of their reflection.

Franchisee’s gain access to a turnkey operation supported by a nationally recognised brand. All training is provided via The Advanced Skills Academy (RTO), owned and operated by Australian Skin Clinics; covering all areas of running a successful clinic.

This is your opportunity to join the fastest growing sector in retail!

Bakers Delight are an Australian iconic brand. We’ve been baking bread since 1980 and currently have over 550 bakeries across Australia, Canada and New Zealand. We are the largest Bakery Franchise and a household brand name.

At Bakers Delight we offer a large variety of back end business support, including: • Business Operations • Marketing

• Human Resources • Property

• Full Training

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

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

With 36 stores in a growing network Bedshed is committed to partnering with franchisees to help them achieve business success, while offering flexible hours and a fulfilling lifestyle.

• Information Support

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

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

PROFILE: Bedshed is an accredited franchise business model led by a professional management team. Backed by over 35 years of successful operation, Bedshed provides support, specialised advice, training and a proven structure which takes a lot of the risk out of running your own business.

• Projects • Purchasing

Start up costs: $280,000 - $450,000 + 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 485 stores across the globe.

Boost Juice has come a long way from its humble beginnings but one thing hasn’t changed – our commitment to health, fun and loving life. Our partners are provided with an abundance of support and we strive to innovate and develop in all facets of the business. Take the steps to join one of Australia’s most loved brands today!

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

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

Start up costs: New store - $389,000 + GST

Start up costs from $19,950

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: Chem-Dry is Australia’s largest and most successful carpet and upholstery cleaning franchise. Established in 1986 as a healthy and green carpet cleaning alternative, today Chem-Dry cleans more carpet and surfaces than any other company.

Using the company’s patented cleaning solutions and over 35 years of experience, our franchise partners are able to build successful businesses by making their customers’ homes and workplaces cleaner and healthier.

Our franchise partners are passionate about providing their customers with the cleanest and healthiest homes.

A Chem-Dry franchise is not just about residential and commercial carpet cleaning.

Our franchise partners also clean upholstery, leather, tiles and grout, and are specialists in water damage restoration.

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.cowch.com.au

Phone: 03 8727 9999 or 13 80 90 Fax: 03 9729 3266 Contact: Selena Vance selena.vance@clarkrubber.com.au www.clarkrubber.com.au

Start up costs: $500,000 - $700,000

Start up costs:

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

PROFILE: Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for over 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network with 60 locations nationwide.

In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer. Clark Rubber offers a unique business proposition which includes business development, site selection and fit out assistance, comprehensive training and ongoing local area marketing and IT support.

PROFILE: Cowch Dessert Cocktail Bar is Australia’s most innovative dessert and cocktail offering. Whether you’re looking to entertain the kids, spend a night with the girls, or just put a smile on your face, Cowch is the place to do it.

With an exciting and fresh feel, the Cowch brand is all about innovation and fun. Whether it be our kids dessert making classes, or cocktail making for a hens night, Cowch delivers on a single promise of creating memories for any group. If you need convincing, stop by and let us show you why we’re the brand to beat.

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.thecupcakedesire.com.au

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

Start up costs: $180K-300K Start up costs: $450,000 - $600,000 + GST PROFILE: The cupcake Desire was established in 2014 as a premier speciality cupcake and cakes store. Having successfully operated for more than 4 years, we have decided to commence franchising to allow franchise partners to join our business.

We believe franchising will add more resources, fresh and innovative ideas and support to constantly grow The Cupcake Desire and create product differentiation in the market. The quality of our cupcakes is what people come back for. They are baked fresh everyday using the finest ingredients. We bake Gluten – free, Vegan cupcakes and cakes. We empower and value our customers as they contribute to an overall success of “the Cupcake Desire”

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.

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

Phone: 1300 378 472 Contact: Susana Hands/Michael White apply@drugsafe.com.au www.drugsafe.com.au Start up costs: $75 - $90.000 PROFILE: Drug-Safe Australia Pty Ltd have led the alcohol and other drug screening industry abuse across Australia and the South Pacific.

The business has concentrated upon the needs of National and Multi National clients with a need to ensure their workforce was protected from the growing abuse of substances such as alcohol, marijuana, cocaine, heroin, amphetamines and more recently methamphetamine.

Whilst we have been very successful in developing our systems and clients, we have identified a pressing need to have a broad coverage of field officers across Australia who are enthusiastically supportive of the Company’s objectives.

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

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

EARL Canteen - Sandwiches, Salads, Sweets, Coffee and Service!

To address this, we decided to harness the enthusiastic nature of regional individuals who wish to make a difference within their own community in addition to the more traditional client base for drug testing.

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A-Z LISTINGS

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

A-Z LISTINGS

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

Start up costs: $150,000 - $350,000 PROFILE: Ella Baché is Australia’s largest skincare franchise network and leaders in Skin Solutions.

The brand has been established in Australia for over 65 years and currently boasts over 160 locations nationwide.

As a Franchise Owner, you’ll be given all the support you need to grow your business and develop your skincare knowledge. You can expect ongoing innovation, training, guidance and non-stop motivation to create a successful business from day one.

Start up costs: minimum of $100,000 PROFILE: Fibonacci Coffee is a fresh new cafe concept in the Australian coffee landscape.

Started as a family business Fibonacci Coffee keeps on building on those traditional family values. Embracing and promoting innovation in the everevolving cafe industry. Encouraging positive community impact, and providing mouthwatering food offering with flexible menus.

Designed with a Co-op concept in mind we provide a platform where partners can contribute and share their ideas as well as learn and support others. Fibonacci Coffee is all about helping entrepreneurs to prosper.

Phone: 1300 869 196 Fax: 1300 659 675 Contact: Approval Centre Team info@franchisefinanceaustralia.com.au www.franchisefinanceaustralia.com.au

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

PROFILE: Franchise Finance Australia is a specialist funder to the franchise sector.

We have unrivalled knowledge of franchisees funding requirements as well as direct relationships with the franchise networks operating in Australia.

Founded in 2014 by directors with a background in franchising, we have remained committed to offering flexible funding solutions that allow franchisees to start a new business or improve their existing business.

Franchise Finance Australia can finance new & used equipment, fitouts and refurbishments, offering competitive rates, flexible terms and an easy online application process.

PROFILE: Australia’s leading gelato franchise is looking for outstanding franchisees.

Prior food experience is not necessary however franchisees must have passion for the system and brand, leadership skills, and enthusiasm for delivering quality products through excellent customer service.

Multi award winning Gelatissimo provides full training and on-going support from dedicated operational, marketing and development teams enabling them to produce artisan gelato fresh in store using a simple and proven system.

Phone: 07 3357 6270 Contact: Warren Ballantyne warren@guttervac.com.au www.guttervac.com.au Start up costs: $89,400 + GST + freight PROFILE: Gutter-Vac is an innovative cleaning franchise using revolutionary vacuum equipment to quickly and effectively clean corporate and domestic gutters, roofs, ceiling spaces, rainwater tanks, storm water sumps and much more.

Gutter-Vac is now the largest gutter vacuum cleaning network in the world.

The Gutter-Vac network includes 80+ franchises across 7 states and territories including Queensland, Victoria, New South Wales, ACT, South Australia, Western Australia and Tasmania. Gutter-Vac now has an international brand “Outback GutterVac” based in Atlanta Georgia, USA. Gutter-Vac is a proven model that provides a lifestyle or entrepreneurial business. A Gutter-Vac franchise is an exciting and promising small business opportunity that is constructed upon a reliable foundation of simple, innovative and effective equipment, systems and procedures.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

Phone: 04 8833 8668 Contact: Franchise Recruitment hh@helloharry.com.au www.helloharry.com.au

PROFILE: Hello Harry The Burger Joint is a funky eatery serving up generous size burgers!

Burgers, Craft beers and fun is what we are about.

Great value with a fun, funky, cool brand that is reflected in store.

This QSR brand offers a great lifestyle to Franchisees. High quality product, easy in store operations and a very solid business model. With low set -up costs, open the best burger joint in town. Hello Harry is seeking Franchisees Australia wide.

Sick of working for the man? Be the man and open your Hello Harry

Phone: 1300 658 311 Contact: Bill Lockett info@homecaringfranchise.com.au www.homecaringfranchise.com.au Start up costs: $80,000 - $120,000 PROFILE: Home Caring provides an opportunity to be part of one of the fastest growing sectors in the Australian economy – disability, aged and dementia care. As the population ages, it is anticipated that the number of people over 65 will double in the next 30 years and the number of people accessing the NDIS will grow from 200,000 to over 475,000.

Proudly Australian owned, Home Caring provides professional and compassionate personalised care services in the home and is seeking community minded franchisees who can build a solid financial future combining their local networks and the national marketing of the Home Caring and Dementia Caring brands.

Home Caring is offering a limited number of locations in a partnership arrangement, enabling more people to become involved in the industry at a lower entry cost. Full training and support is provided to ensure a successful, profitable partnership.

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

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

Start up costs: $200 - $500k

Start up costs: $64,950 + GST PROFILE: Our passion for coffee is at the heart and soul of everything we do, and we pride ourselves on maintaining consistently high standards across our entire network. Having great people who pride themselves on operational excellence is the key to delivering a strong brand, network growth and most importantly a loyal customer base.

We offer contemporary and modern store environments that have been embraced by our customers in a range of strategically selected locations, including central business districts, regional areas, airports and hospitals.

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

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

Phone: +61 402 171 399 Contact: Liz Seeto franchising@laserclinics.com.au www.laserclinics.com.au Start up costs: $290-$350K +GST approximately

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

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.

PROFILE: At Laser Clinics Australia & New Zealand, our vision is to provide affordable, effective and safe non-invasive cosmetic treatments. Since 2008, Laser Clinics Australia has grown to be the largest provider globally of laser hair removal, cosmetic injections and skin treatments.

Laser Clinics Australia & New Zealand is an award-winning business with over 100 clinics in Australia and launching in New Zealand.

Laser Clinics Australia & New Zealand offers every franchisee partner a unique franchise business opportunity. Each location we open is a 50/50 partnership between the franchisee partner and Laser Clinics Australia & New Zealand. Our unique business partnership model reduces start up and ongoing operational costs.

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

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

Phone: 0420 900 382 Contact: Casey Reid casey.reid@theleatherdoctor.net.au www.myleatherdoctor.com.au Start up costs: $49,000 - $75,000 PROFILE: Our Mission. “To be the worlds number one mobile franchise”.

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

Start up costs: $450,000-600,000 PROFILE: The Local Shack is a relaxed dining experience. All Local Shacks are fully licensed with a menu catering for all day breakfast, lunch and dinner.

We have memorable childhood games on each table, such as Guess Who, Jenga and Connect Four - to bring back quality time with families.

The unique fitout sets it apart from all other franchises in Australia. The comfortable surroundings ensure the guests feel like its their local every time.

Each Staff member plays an important role in The Local Shack - with a structured approach delivering quality food, drinks and amazing table service.

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

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

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

PROFILE: As a thriving fast casual food brand with a strong growth strategy, we are actively seeking new franchise partners. Our menu is influenced by fresh, Baja-style Mexican food made with authentic ingredients true to our roots.

We’re focused on leading the way in tasty, fresh and healthy with the freshest produce available, food made fresh every day and allowing our customers to tailor their meals to personal tastes and dietary requirements or health trends.

If you have the drive to lead the way with fresh authentic Mexican flavour, a passion to utilise your past business knowledge & skills to deliver an outstanding customer experience, all with a cheeky grin, then this journey is for you! Become your own Head Honcho at Mad Mex, enquire today!

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A-Z LISTINGS

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

A-Z LISTINGS

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

PROFILE: PROFILE: Majors Group have been specialising in the distribution of ice cream, gelato, frozen yoghurt, granita equipment, commercial refrigeration and all related products throughout Australia, New Zealand, South East Asia and the Pacific region for over 25 years.

Majors group offers the best value, quality products, and excellent service to all of our customers. Majors Group is known for our innovation, efficiency and sustainability. Majors Group is committed to ongoing training and promotions for all our staff and customers to deliver the finest service and support for all.

Majors Group is the one stop shop for everything delicious.

We offer consultation, training, equipment, ingredients, finance and service solutions to suit your business

Phone: (03) 9600 3440 Fax: (03) 8610 2081 Contact: Stefano Del Monaco stefano@monacolaw.co www.monacolaw.co PROFILE: At Monaco Lawyers we develop comprehensive solutions that drive business success.

In partnership with our clients and other like-minded professionals we develop, implement, and oversee all aspects of franchising and licensing, from concept to operation.

We help with dispute resolution and are regularly involved in mediating Franchise related disputes. In addition, we provide a full range of complimentary services to support your business.

Our extensive experience in both Australian and International Franchising makes us the perfect business partner. So, contact us today for a no-obligation consultation and let us support you in your business journey.

Well recognised and published franchise specialist with over 30 years industry knowledge and experience.

Providing advice to: 1. International Franchisors and Franchising.

2. Master Franchising.

3. Dispute Resolution – Solutions and Strategies

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Franchisee Advice and fixed fee reports.

Sale/ Purchase of franchise systems.

IP/ Trademark advice.

Company structures and tax advice.

CCC and Consumer Law advice.

We provide clients fixed fees based on the scope of work.

Contact Robert Toth on (03) 9604 9400 or by email at robert@mmrb.com.au

Phone: 07 3221 2221 Contact: Bill Morgan info@morganmac.com.au www.morganmac.com.au PROFILE: Morgan Mac Lawyers is an experienced commercial law and commercial litigation firm with a specific focus in franchising law.

Bill Morgan, has over 20 years’ experience in complex commercial litigation involving disputes between franchisors and franchisees. Since 2016, Morgan Mac Lawyers has acted in over 40 franchise dispute mediations.

The franchise related legal services Morgan Mac Lawyers provides include: • Commercial litigation • Alternative dispute resolution and franchise mediation • Franchise Dispute solutions • Corporate and business structuring • Purchase or sale of franchise businesses

• • • • • •

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

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

Phone: 02 9472 8555 Contact: Peter Elligett info@mrsfields.com.au www.mrsfields.com.au Start up costs: From $199,000 + GST

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

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FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

NightOwl is a national convenience franchise system established in 1975 as Australia’s first 24 hour trading Convenience retail business.

First franchised in 1987, we have never stopped growing and with an exceptionally strong brand presence, we now operate over 70 stores throughout Queensland and New South Wales.

Retail experience is not necessary in running a NightOwl, but motivation and entrepreneurial skills are a must. You must be determined to succeed and the Franchisee Support Office will help you with the rest.

We are seeking motivated and hardworking franchisees with a determination to succeed!

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

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

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

Start up costs: $175,000 - $200,000 PROFILE: At Noodle Box we believe in the power of the mighty wok. To transform a humble kitchen into a fiery theatre. And transform the simplest ingredients into a feast that’s out of this world.

Noodle Box started life in 1996 on the back of a vision of two adventurous young Aussies who were amazed by the fiery theatre and the incredible wok-charred flavours of Southeast Asia’s hawker markets. They brought their experience back to Australia and worked with the best wok chefs in the business to bring new life to traditional recipes and satisfy Aussie tastes.

Today, Noodle Box restaurant numbers continue to grow, strengthening our position as Australia’s leading Noodle-based franchise system. And while this growth has been fueled by continuous investments in our brand, our products and our systems, our success is due to the ongoing dedication and loyalty of our Franchise Partners.

With franchise opportunities available nationwide, there’s never been a better time to join the Noodle Box family.

PROFILE: Orangetheory Fitness is one of the world’s fastest growing franchises with 1000 studios open across 18 countries and zero studio closures globally. We’re growing rapidly across Australia but there are still some prime territories available.

Orangetheory is a one-of-a-kind, group training experience that uses heart-rate based interval training to promote maximum calorie burn. Every single workout is scientifically developed and approved by a Medical Advisory Board to ensure it remains 100% results oriented.

As an Orangetheory Fitness franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group, to guide and support you every step of the way.

Noodle Box – Wok Inspired, Market Fresh

Phone: +61 2 8212 4578 Contact: Vivian Rounsley franchising@powerfulpoints.com.au www.powerfulpoints.com.au Start up costs: Franchise fee: $65,000, Equipment, etc: $7,000, Working capital: $25,000

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

PROFILE: Australia’s Franchise System of the Year - Twice!!

Build your successful business future with us. We have a career path in business that we can tailor to suit you. As a Poolwerx Franchise Partner, you can start small or jump right in. Join us as a man in a van, progress to multi-vans, a retail store and vans and then in multi store. Or purchase an existing fast start mobile territory or retail mobile business. Whatever your journey, we will help you realise your vision.

Our one focus is to create a profitable partnership. We do that by matching over 25 years experience and outstanding support, marketing and business development systems to your energy and enthusiasm.

For more information, visit poolwerx.com.au/franchising.

PROFILE: PowerfulPoints is one of Australia’s leading visual communications companies providing services to mainly medium and large companies.

Working with a team of world class designers, copy writers and trainers we help clients create highly effective presentations, videos, motion graphics and other digital and traditional media. We help them communicate effectively in today’s multimedia rich world.

As a franchisee, your job is to do the sales and account service. You will have extensive training and ongoing support to help build a lifestyle and valuable asset in this rapidly growing market.

This is a limited opportunity, only around 25 franchises will be offered in Australia.

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

Phone: 02 9708 6959 Contact: Ammar Quettawala info@qtecx.com.au www.qtecx.com.au PROFILE: FRANQ is a franchise management solution. The solution helps franchisors to thrive by automating business processes, solving franchise data challenges, and offering business insights FRANQ functionality includes recruitment, store opener, contracts generator, lease tracker, document storage, compliance tracking, territory management, alerts, dashboards and many more. With FRANQ, you can be confident of amazing results in less time.

QTECX Solutions provides high-class consulting, implementation and integration services. With over 30 years’ global experience in designing flexible and efficient solutions, we go above and beyond to help you provide superior customer experience.

Phone: 07 3399 3000 Fax: 07 3399 3077 Contact: Patrick Mulcahy franchisedevelopment@shingleinn.com www.shingleinn.com Start up costs: $290,000-$360,000 PROFILE: Shingle Inn is a leader in the boutique café market. Established in 1936, against the backdrop of the Great Depression, Shingle Inn has been the perfect destination to share special times with family and friends for generations.

Luxurious high-backed chairs, warm rich colours and intimate booths create an atmosphere that attracts customers and Shingle Inn’s focus on superior quality food and coffee keeps them returning. With decadent cakes and delicious treats, made from traditional recipes in Shingle Inn’s central bakery, Shingle Inn prides itself on an exclusive product range that will not be found in any competing café.

Together with Shingle Inn’s constant focus on coffee excellence and freshlyprepared meals on our extensive menu, Shingle Inn is unsurpassed in today’s café culture. Contact us to find out why Shingle Inn could be the right coffee and food business for you. Patrick Mulcahy 0431 649 450.

Start up costs: $750,000 upwards PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of over 165 franchised properties across Australia, New Zealand and Fiji.

For 30 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended stay business travellers.

Quest is now one of the top 15 apartment hotel providers in the world, and widely recognised as the market leader of apartment hotel accommodation in Australia.

To become a Quest Franchisee you must be prepared to make a significant investment and commitment to the business, both personally and financially.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

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A-Z LISTINGS

Phone: 03 9830 4166 Fax: 03 9888 6327 Contact: Bettina Davis bettina.davis@snooze.com.au www.snooze.com.au/franchising

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

A-Z LISTINGS PROFILE:

PROFILE: Snooze has been giving Australians a better night’s sleep for more than 40 years.

The sophisticated Snap Centre of today is a far cry from the convenience of the corner printer of the 60s, Snap is one of the most recognised brands in Australia with a reputation in its field of quality production and service, and a commitment to people.

These eight points form the basis of our franchise support system: Marketing and promotional support Benchmarking & KPI measurement Sales and merchandising support and comparison Product training Site selection and property Business management support negotiation IT services Store design & layout What’s needed to be a Snooze Franchise Partner?

Snap continues to evolve its franchise model and is building on its reputation for innovation and embracing change through the introduction of new products and services combining the best of traditional print with online marketing solutions.

We are Multiple Award Winning Australian Franchise Success Story that has expanded its successful franchise model into Master Franchises in Ireland, China, New Zealand.

Enjoy working with people, have good interpersonal skills, enjoy being retailers and have a strong customer service orientation. Have an ability to organise, supervise and motivate staff. Have a hands-on approach to their business and have a strong work ethic.

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

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

Start up costs: $280,000 to $340,000 + GST PROFILE: Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 11 years We deliver our programs to over 35,000 children annually with over 300 classes in operation across the country.

Transform lives, including yours and become a Soccajoeys Franchisee.

We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives.

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

PROFILE: From humble beginnings in 2011, Soul Origin have grown their 3 stores to 108 stores now trading nationally. With being awarded as one of Australia’s fastest growing franchises in 2017, Soul Origin have exploded onto the scene serving food that is good for the soul.

Soul Origin places a strong focus on fresh, quick and nutritious salads and sandwiches that are easy to grab and go, with equally impressive coffee that is made by in house trained baristas. Coupled with providing a customer experience that is fun, engaging and personal, the brand has found their unique stride in the market.

Soul Origin franchise partners are provided with on-going support from an experienced and dedicated team, who are passionate about your success.

Take the steps to join the Soul Origin franchise partner community today!

Phone: 1800SPLASH (775274) Contact: Kylee Clasper admin@splashswim.com.au www.splashswim.com.au

Phone: 03 9645 4798 Contact: David Sinclair franchise@sportingglobe.com.au www.sportingglobe.com.au/franchise

Start up costs: From $150,000 Start up costs: $1,000,000 + 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

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

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!

Phone: 02 8874 5000 Phone: 1300TOWNCR (1300 869 627) Contact: Glenn Hames Glenn.hames@towncarsaust.com.au info@towncarsaust.com.au www.towncarsaust.com.au Start up costs: $50,000 - $120,000 PROFILE: Established in 2009, Towncars Networks Australia provides executive chauffeur services for both corporate & private clients.

With a fleet of luxurious vehicles and accredited drivers, we offer our clients competitive fixed-prices, no meters or tolls.

Towncars low entry cost, allows new franchisees the opportunity to invest in exclusive areas in both Sydney and Melbourne. Work is not limited to your area, as most corporate jobs are to and from the airports.

Franchisees are supported by head office marketing and management. Tools of the trade include our in-house software along with our 7 Day Call Centre.

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

Phone: 04 3909 4068 Contact: Sarah Oram franchising@unique-laser.com.au www.unique-laser.com.au Start up costs: $100,000 to $450,000

Start up costs: $60,000 PROFILE: Tutor Doctor is a leader in providing one-on-one supplementary education to students and adults through in-home tutoring. Tutor Doctor franchisees, who manage a team of professional tutors and work on the business rather than in it, follow an award-winning home-based business model that requires no educational background to operate.

Private tutoring is a multi-billion-dollar industry, and Tutor Doctor is experiencing one of the fastest growing international expansions of any educational company in the history of franchising. With over 590 locations around the world, Tutor Doctor has changed the lives of 270,000+ people by helping them their academic goals.

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

Phone: 13 26 13 Contact: Graham Brusnahan info@viphomeservices.com www.viphomeservices.com.au

Start up costs: $50,000 + GST PROFILE: Valenta is a multi-faceted company that provides outsourced staffing solutions to hundreds of businesses across the globe, helping then cut costs and improve efficiencies.

We are currently offering entrepreneurs and industry specialists an exciting outsourced staffing franchise opportunity. Due to the varied nature of our services, our franchise is perfect for anyone who enjoys sales and has good knowledge of any industry.

Valenta Franchise owners attain profitability from day 1 thanks to a guaranteed initial revenue of $4000. Further, our unique franchise model has our franchise owners focusing exclusively on growing their franchise while Valenta takes care of all operations. The flexibility offered by this allows them to initially develop their franchises part-time until it becomes profitable.

PROFILE: V.I.P. Home Services was the very first home services franchise company and only the 3rd franchise company in the country when it was established

by Bill and Rose Vis, way back in 1979. Today, they have 1,000 franchisees across Australia and New Zealand.

They have a number of franchise divisions with the major three being Lawn and Gardens Maintenance, Home Cleaning and Commercial Cleaning.

The company remains Australian owned and operated and has the same core values from the very day it started – delivering exceptional customer service and providing successful franchise opportunities for people wanting to be their own boss and be in charge of their financial future.

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

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

Start up costs: $35,000

Start up costs: $100,000 - $250,000 PROFILE: We make food that adds a smile to your day. Just one bite and you’ll know you are eating something special; something reminiscent of your childhood.

A simple model with absolutely minimal baking* in store; just filling, decorating and displaying. Our famous varieties include Boston Custard Cream, our signature Vanilla Glazed, Pretzel Choc Caramel, Cherry Bomb, Cookies & Cream and many others. Our *Hot Jam doughnuts are freshly proofed and cooked on site throughout the day. The aroma is impossible to resist!

Together with our specialty-coffee created especially for Walker’s, our Classic hot dog flavours, our soda-fountain diner Milkshakes, and our speciality Heritage Sodas imported exclusively by Walker’s Doughnuts directly from the USA, you’ll find us an unbeatable and irresistible offering.

Contact: Chrissie Blackadder chrissie.blackadder@collectivewellness.com.au www.xtendbarre.com.au Start up costs: From $150,000

PROFILE: Barre is one of the most popular programs in boutique fitness, with a loyal client following that continues to grow. Xtend Barre leads the barre industry with its unique workout, dynamic programs and personalised approach. Founded on Pilates and dance, it’s a safe and effective workout that delivers results.

When you invest in Xtend Barre, you’re investing in much more than a barre studio You’re joining Australia’s largest barre franchise, and an ambitious and supportive community that spans the globe.

As an Xtend Barre franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group (CWG), to guide and support you every step of the way.

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

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

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A-Z LISTINGS

FINAL WORD

MY FRANCHISOR CAN TELL ME EVERYTHING I NEED TO KNOW ESTHER COLMAN HR Dept franchisee

I

t’s a dangerous game in any aspect of life when you are relying on someone else to tell you everything you need to know and entering into a franchise is no different.

Franchisors are running a business and it is in their interests to have win-win situations i.e. a profitable business model, solid systems and procedures and capable franchisees who are well equipped to make it work.

The key to any successful partnership at any stage of the franchise relationship is the open and transparent flow of information and an honest, ethical, trusting and sustainable relationship.

Of course your prospective franchisor will provide a lot of very useful information. A lot of this information a

franchisor is obliged to provide under the Franchising Code of Conduct.

The franchisor may also be able to give you generic information about the success or otherwise of other franchisees but will this translate to your territory?

The franchisor may tell you there is demand for your services, but how do you qualify that demand? It’s a bit like the news fact check on the ABC – you need to find out whether what the franchisor is telling you checks out: is it fact, halfbaked, clever spin, or simply not true.

It’s critical to qualify any claims that are made. Remember a franchisor is not an independent party but someone with a vested interest in selling you a franchise.

So, you need to dig deeper.

HOW TO GET THE BEST INFORMATION There is a wealth of additional information and resources you can tap into. How you analyse that information and your ability to ask pertinent questions will determine whether you make a truly informed decision.

My franchisor (the HR Dept) held a Discovery Day which consisted of a detailed presentation of the franchise offering as well as ample opportunity to ask questions. The business was well established in the UK but emerging in Australia. My first line of enquiry was to speak to some HR colleagues in the UK to establish its credibility in that market and whether this brand was something I wanted to put my name and professional HR reputation to.

I spoke to franchisees both in the UK and Australia and was not afraid to ask the hard questions: for instance, are you making money?

I engaged a legal expert to go over the

franchise agreement to find out if there were any hidden costs or nasty clauses in there. I started with the end in mind – how will I get out of the franchise if it doesn’t work?

I chose a specialist franchise accountant and invested in a pre-purchase review which I would highly recommend. This helped me model financials and work out what my breakeven point is and how quickly I could be profitable.

I thought of every small business owner in my network and talked to them about the concept of the business; providing outsourced HR and practical advice to small businesses. I got a resounding thumbs up which gave me confidence that the market was there.

I then turned my attention to my competition. Who else is doing this?

What makes the HR Dept stand out, is there a unique offering that gives a competitive edge?

Lastly, your franchisor will not tell you why you are going into business. It is up to you to have that compelling vison of why you want to run your own business and what your 90 day, one year, three and five year plans are.

Nor can the franchisor give you the drive and motivation to achieve them, that can only come from you and a dogged determination to stick to your plan and map out small steps and actions that will enable you to reach your destination.

If I was to distil my lessons learned from my own experience into some top tips – below are my top four: 1. Take your time 2. Ask lots of questions 3. Assess the risk vs returns 4. Make an informed decision - walk away or go for it! n

Esther Colman is the franchisee and director of HR Dept Eastern Suburbs Sydney.

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BRETT HAD ALL THE RIGHT INGREDIENTS TO BECOME

A 19 STORE SUPERSTAR 2007 2004

BUYS FIRST STORE

THE HITS ORE T S 10 K MAR

2016

FIRST ADDS TIONAL A N INTER ORE ST

Brett Moore Multi-Unit Franchisee

20

05

B TH UY ST IR S O D RE

06FOUR 0 2 S E

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

Y OR ES BU M OR ST

20

18

CU S RR COTO EN U RE T 19 NT

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

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