Inside Franchise Business Feb/April 2020

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

FEB/APR 2020

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ISSUE 33 VOL 01

HOW TO BUY A FOOD FRANCHISE Snap up these super smart tips

MAKE YOUR BUSINESS DREAM A REALITY 7-step cheat sheet to building your future

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FITNESS FOCUS:

GET PUMPED! 5 brilliant franchise tales revealed

MAKE A GOOD BUSINESS CALL Become a 7-Eleven Franchisee and enjoy a fulfilling career working on your terms, with a supportive, Australian-owned partner that knows the local market and lives and breathes for its customers.

INVEST IN YOUR FUTURE WITH US TODAY. franchise.7eleven.com.au

YOU’LL LOVE BEING A 7-ELEVEN FRANCHISEE. HERE’S WHY: • 24/7 operational and marketing support • Extensive training and full store set-up • We take care of payroll, fuel and supplier management • Home to products you can’t find anywhere else • Enjoy a healthy work/life balance • Connect with customers and be part of your local community

OUR SUCCESS IS YOUR SUCCESS The 7-Eleven franchised business model is one with a difference. Because we share in the profits of our Franchisees, it’s in our best interest to do whatever we can to help you grow your business. To get up and running, you’re looking at an investment of between $400,000 and $1,000,000+. Our gross profit split is determined progressively and there are opportunities for shared income stream profits, such as commissions.

CONTACT DETAILS – Franchisee Development Managers

Brett Reading, QLD Email: bzr@7eleven.com.au Mobile: 0407 877 674

Peter O’Hara, VIC Email: pwo@7eleven.com.au Mobile: 0408 175 534

Shayne Boogaard, NSW

Edris Mukarram, WA Email: ewm@7eleven.com.au Mobile: 0436 658 741

Email: szh@7eleven.com.au Mobile: 0418 136 156

FRANCHISING

The fact is, if you have background in business, especially in sales or management, there aren’t a lot of options available in the franchise world.

Well, except for a Powerfulpoints franchise.

We help our clients get their message across with presentations, videos, motion graphics and a range of other visual communication tools, and we do it well. In fact 89% of our clients say we made a significant difference to their projects. As a PowerfulPoints franchisee, you too can make a significant difference.

You don’t need to know how to design to be a successful franchisee, in fact its better if you don’t.

You won’t be doing the design; we have specialists to do that for you. Your job is business development and client service. If your career to date has involved building a network of business contacts, this is the ideal franchise for you. You will get the opportunity to build an income and an asset. This opportunity has extremely low fixed costs and has the opportunity to run you business from your own home if you wish.

You will receive extensive training and committed ongoing support. Your first 4 weeks will be spent learning what you need to know to successfully start and thrive in your franchise. The following 6 months will see that training supplemented on a weekly basis. Even after this period, you will continue to receive ongoing product, technical and IT support to make sure you feel comfortable, confident and have all the tools and knowledge to succeed.

This is a unique, white collar franchise for professionals looking for opportunities outside of banks or mortgage broking.

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

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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 BRANDS BROADEN THEIR HORIZONS

SPECIAL FEATURE

Six franchises looking to expand in regional Australia.

24

ON A SCROLL

Aussies are excited about the launch here of US bakery favourite Cinnabon.

48 SAY YES TO YIROS!

Street-Greek food chain is gearing up for growth.

77 DREAM CATCHER

How one franchisee matches ambition with time for the family.

26 ROLLING UP HIS SLEEVES

Quest Apartment Hotels executive takes on a franchise.

36

LASER SHARP

22-year-old entrepreneur has a laser eye for business.

40 DOING THE RIGHT THING

Franchises flexing their community credentials.

86 WHICH FRANCHISE IS FOR YOU?

78 FAST FORWARD

Slow cooking speeds up for Sandwich Chef.

80 A REAL GEM

Kiwi retail concept is a sparkling opportunity.

84 DAY IN THE LIFE OF …

Phil Colburn, Poolwerx

Expert advice on sourcing the best business.

FRANCHISE BASICS

SPOTLIGHT: FOOD

133 5 FRANCHISEE TRAITS

Crucial attributes for every franchisee.

90 NOT JUST A SUPER-FAD

51

FITNESS FOCUS

Why the superfood market is ripe for picking.

Inspiring tales of challenges and success in the gym sector.

Are you ready to join in the food fiesta?

52 FOLLOWING THE GAME PLAN

100 MEXICAN WAVE 108

HOW TO BUY A FOOD FRANCHISE

115

HOT PROPERTY

A must-read if you’re hungry to invest in the food and beverage market.

AFL superstars are turning heads off the pitch.

56 FRANCHISE FIT

The biggest projects set for top locations.

The story of one journey from personal training to award-winning franchisee.

SPOTLIGHT: MOBILE

60 STEPPING UP THEIR GAME

120 NEW ROAD RULES

Franchise models that offer low costs and flexible working.

SPOTLIGHT: LOGISTICS 126 DELIVERING A DIGITAL DOLLAR Speed and service are crucial for couriers, logistics and distribution.

Stepz Fitness 10 years on

64 AND NOW HE’S A NINJA!

How John Pirlo has built a career in fitness.

70 SNAP INTO LIFE

Cover story: Andy Peat’s supercharged approach to business.

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136 IT’S TIME TO STOP SPENDING

When you buy a franchise you need to keep a tight hold on your finances.

138 LEGAL EASE

Why a lawyer could be your best friend in franchising.

140 5 SKILLS THAT LEAD TO SUCCESS What will help you achieve your goals?

142 4 WAYS A FRANCHISE HELPS WITH HR

Franchisees can tap into expert advice to deal with employees.

144 MAKE THAT BUSINESS DREAM A REALITY

Check out this 7-step cheat sheet and top tips on franchising.

147

HOW DOES IT WORK?

162

FINAL WORD

The simple rules of marketing.

9 things to learn about award-winning multi unit franchisee Warren D’Cruz.

EDITORIAL

The search is on How to buy the right business Thousands of Australians across the country are right now gearing up for a new future with franchising.

Franchisees are a diverse bunch: they are school leavers, parents, ambitious singles, retirees; they are multicultural, quite often with English as a second language; they are business novices, corporate refugees, savvy investors.

Franchisees are skilled employees transferring their talents to build a similar business for themselves; they are looking for a fresh career in a brand new sector; they are ditching the sedentary desk space for a life of outdoor action; they are pet lovers, car mechanics, fitness fanatics and foodies wanting to indulge their passion.

What they all share is a common goal – to be in business for themselves, and to maximise the potential of their own business.

And as this edition of Inside Franchise Business reveals, inspiring stories of success are at every turn.

IN THIS ISSUE Fitness franchises are in the spotlight in this issue, with tales of extraordinary journeys taking individuals on uncharted paths.

Inside Franchise Business also puts the spotlight on trending food markets as Mexican and superfoods help to reshape the quick service restaurant scene.

Of course franchising’s reach stretches far beyond the fast food arena, and there’s an in-depth look at how technology is influencing and driving change in the burgeoning logistics and distribution space.

HOW TO BUY THE RIGHT BUSINESS Inside Franchise Business works with first-class experts to give the best insights and information that will help with the research process that is so essential before buying a franchise.

What every potential franchisee wants to know is, what’s the best brand to buy, and how do I get the best deal?

Sharpen your due diligence skills with our features on buying the best franchise, why overspending sets you up for failure, the importance of legal advice and much more.

And for all the food lovers lining up to invest in a hospitality business, don’t make a move until you’ve read our essential guide, “How to buy a food franchise”.

Good luck with your search.

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

Dali Hoffmann P: 02 8224 8373 dali@octomedia.com.au

GRAPHIC DESIGN

Rozelle Carlos rozelle.c@octomedia.com.au

Sar a h Sarah Stowe Editor

OCTOMedia

OCTOMEDIA Pty Ltd Suite 3, Ground Floor, 131 Clarence Street, Sydney NSW 2000 Ph: +61 2 9901 1800 www.octomedia.com.au

FOR SUBSCRIPTION ENQUIRIES CALL Customer Service: 02 8224 8383 ISSN: 1321-408X

GENERAL MANAGER

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

FEB/APR 2020 | 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

BRAND BUSINESS The big stories in franchising that you need to read.

CAFE CHAINS ARE RATED TOP PERFORMING BRANDS Muffin Break and Jamaica Blue are the latest to list as high-performing brands through the Australian Franchise Rating Scale.

Ratings are allocated after an independent and fact-based assessment across seven key categories designed to measure both transparency and performance.

In achieving this strong (4 star) rating, both brands have been able to demonstrate a high level of transparency and a high level of franchise performance.

Darryn McAuliffe, CEO of FRANdata, which reviewed the franchises, highlighted that Foodco is one of the first large franchise hospitality groups to understand the importance of having external independent assessment of its systems and processes.

“The review team was particularly impressed with the positive financial impact a number of Foodco initiatives were delivering to franchisees,” he said.

“Franchisees of both Foodco brands also enjoyed a superior level of support around business performance and compliance programs.” n

“THANKS BUT NO THANKS, SHARKS” Two years since turning down an offer on TV show Shark Tank, SpeedFit has tripled the size of its business, surging ahead with year-on-year double digit growth in Australia’s competitive fitness industry, and attracting lucrative medical investors from the Middle East.

SpeedFit offers an alternative to high intensity, high impact activity with a workout tailored to individual needs, from people with disabilities to seniors, the injured and elite athletes.

The business appeared on Shark Tank but rejected investment from Boost Juice founder Janine Allis and Dr Glen Richards.

SpeedFit CEO and founder Matej Varhalik took a step back to set the business on a sustainable path, after realising the target of 15 studios in a short period of time was risky. As a result of the fine-tuning SpeedFit increased profit by 23.98 per cent but also decreased wages/cost of labour by 6.15 per cent.

The business has also seen a 60 per cent growth in sales from $2.1 million to more than $3.5 million, with projections of $5 million this financial year.

The brand’s performance and growth from five locations to 15 has attracted investment from the founders of a Middle Eastern private hospital medical empire, the Shetty family, who are also part of the Forbes 1000 international list.

Neema and Sharad Shetty, who are based in Perth, came across SpeedFit as clients and were excited enough by the use of technology to fill a gap in the fitness market that they invested in an individual studio in Western Australia.

The business model proved so effective the pair have now made a sizeable, but minority, investment in the parent company. n

US CHAIN LANDS IN AUSTRALIA

Massive US gym giant Planet Fitness is officially on its way Down Under, after the brand announced two new partnerships.

The Planet Fitness Australia expansion is set to deliver a minimum of 35 new studios nationwide, significantly bolstering the chain’s global footprint.

The latest development has been an enormous undertaking for the international conglomerate, which boasts more than 14 million members across all 50 US states, Canada and South America. The new Planet Fitness Australia venture will operate as a franchisee of the US business, with all sites to be owned and operated centrally. n

MOVING ON, MOVING IN Craveable Brands group CEO and director Brett Houldin has stepped down after five years with the umbrella group for three iconic Aussie brands, Red Rooster, Oporto and Chicken Treat. Experienced retail executive Karen Bozic (Caltex, Woolworths, Rebel Sport) took on the role of group chief at Craveable Brands in December.

Seasoned franchisor and former MD of Fastway Couriers Australia Richard Thame is taking on the role of CEO at Snap Print & Design. Thame has more than 20 years’ experience in senior roles with big-name brands such as McDonald’s, Greater Union Cinemas and Thrifty Car Rental. n

GONGS AND AWARDS At the Australian and New Zealand Golden Bean Awards, the world’s largest coffee roasters’ competition, Zarraffa’s Coffee picked up six bronze medals. The chain utilises gas fired air roasters, harnessing a stream of hot air to roast the coffee beans, causing them to flow or to swirl, leaving clean, fresh and palatable coffee beans with the signature Zarraffa’s taste.

TECH TALK

A new ActionCOACH online portal provides business owners with detailed information and insights on their operation, better preparing them for future growth.

It’s a boon for ActionCOACH clients, who can now set goals, track performance, identify trends and chart growth.

The new portal sees business objectives and insights split into a series of easy-touse tabs, where owners can set specific goals over a five-year period.

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GLOBAL EYE

SMASHING RECORDS, EXPANDING STORES

THE SPORTING GLOBE

TACO BELL

CHICKEN TREAT

BEN & JERRY’S

Aussie bar and casual dining franchise The Sporting Globe is approaching an expansion milestone with a monster three-storey venue in Melbourne taking the store-count to 15.

David Sinclair, The Sporting Globe franchise recruitment manager, said, “We see our focus as a competitive advantage, we know what we are and we know what we want to be: the best place to catch the game, Australia’s number one sports bar and grill.

This has helped us clearly navigate the market and continue to innovate.”

Over the last 12 months, The Sporting Globe has invested heavily in new technology, boosting customer experience and franchisee performance. n For the first time in its over 40-year history, Western Australian icon Chicken Treat landed in Melbourne partnering with delivery platform Deliveroo. The new concept is a purely delivery-only kitchen, operated through Deliveroo’s recently announced “Editions” marketplace. The Collingwood site launched in October and houses 35 partner brands, offering low-cost “dark-kitchen” options.

Mimma Battista, Chicken Treat’s CEO, said that by launching a corporate storefront initially, the chain can better measure the potential for future expansion. n

Just after launching an inaugural outlet in NSW, global icon Taco Bell has gone full speed ahead on its next Aussie endeavour.

When the Tex-Mex giant unveiled the maiden Melbourne Taco Bell restaurant it enlisted a city icon to get the message across, with fans treated to a world-first “tram-thru”.

Fans waiting eagerly outside Tram Stop #51 on Route 78 had their orders taken, before boarding the purple, Taco Bell-emblazoned locomotive. Meals were prepared fresh as the journey continued, then delivered hot as the tram ground to a halt outside the new Melbourne Taco Bell restaurant. n

The Ben & Jerry’s tenth anniversary mark kicks off in 2020, with three new franchised scoop shops set to steer the celebrations as the franchise embarks on its biggest year to date.

Among the three new developments is the opening of the much-anticipated Burwood Brickworks outlet. Aiming to be the most sustainable shopping centre in the world and the first to achieve the “Living Building Challenge”, the mixed-use urban village is the perfect fit for the modern ice cream parlour, which has always championed social and environmental justice, according

THE BURRITO BAR

New restaurant openings are currently being planned across Melbourne, Sydney, Brisbane, Gold Coast and regional Australia for Mexican-inspired chain The Burrito Bar. Burrito Bar general manager Shaun Butcher said, “We will also be launching our app in the first half of the year and an exciting new menu to further expand on our diverse food and beverage offering.”

Fresh off announcing a renewed focus on franchisee profitability and growth, the food franchise has also smashed its singleday sales record. n

to Sean Farrell, Ben & Jerry’s national retail manager.

“We are constantly looking at our supply chain and thinking about where we can do better, starting with the changes that will have the biggest impact.” n

I’ve been very fortunate. In another role I would not have been able to do the things I’ve done, open clubs while in a corporate job, innovate the things I see are needed, and be creative. That’s what I tell a lot of young guys in the business – I’m no different from anyone, I took the opportunities.

Andy Peat, Snap Fitness

HERE’S WHAT YOU LOVED ON FACEBOOK …

Great to see our social media users snapping up top-drawer advice about buying a franchise in our post What does a franchise agreement cover?

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

FEB/APR 2020 | 14 | WWW.FRANCHISEBUSINESS.COM.AU

0467 007 304

INSIGHTS

TRENDS FOR

2020

We’ve done the hard work for you and found what’s trending in 2020.

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W

hether you’re an early adopter of the new and exciting, or you prefer to stick to well-established brands with history, the latest innovations, concepts and trends have an influence on the marketplace.

Think about disruptors. Who even knew what they were a few years ago? Uber, Amazon, Netflix have all taken centre stage and there are plenty of other examples of fresh thinking reshaping the traditional working set-up. Now the gig economy is having an impact across almost every business sector, and flexible working is a byword of the early 21st century.

And moods of the moment, increasingly global, create consumer preferences that develop into true trends, not just fads.

So what are the areas worth exploring in 2020?

If you’re going into business you want to be sure there is plenty of potential to grow the business and achieve the return on your investment that you’ve planned.

These are the trends that are getting all the attention right now, and they show no sign of slowing down.

TOP TRENDS FOR 2020 WHICH FOOD IS HOT RIGHT NOW?

Superfoods are the superheroes. Fatigue-busting breakfasts and lunches are powering into our lives, the acai bowl is a must-have menu item right now. Is it more than a fad? Just take a look at the shopping centre food hall and spot the changes that a taste for healthy eating has brought about. Good nutrition is here to stay.

Is it Mexican’s moment? US favourite Taco Bell is charging ahead with its expansion into Melbourne, its clever marketing tactics (who wouldn’t use a taco-thru tram to order and eat on the go?) pumping more oxygen into this fast-food category already served by popular brands Zambrero, Guzman y Gomez, and Mad Mex. (Read more in our Spotlight on food page 90.)

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INSIGHTS

BOUTIQUE BODIES

High tech is the business of beauty today, and laser treatments are among the most popular. A line-up of specialist clinics is tapping in to the trend and attracting young entrepreneurs.

Established brands are, of course, keeping tabs on innovation and technique, and boosting their hands-on services to deliver customers a choice of results-driven treatments.

THE YEARN TO LEARN

A hyper-competitiveness among parents of school-age children is helping to drive demand for good quality tutoring and extracurricular learning.

From the traditional (Kumon’s very formulaic approach has been a global success since the 1950s) to the artistic (dramabased Stagecoach) to the multidimensional (MindChamps) and the scientific (tech-focused ScopeIT Education), learning today extends way beyond the school classroom.

From preschool to pre-HSC, educational businesses are flourishing.

Add in a sports focus (Sport Star Academy, Little Kickers, Billy’s Buddies, Soccajoeys and GeckoSports for starters) and this youth sector is awash with opportunity.

FIGHTING FIT

If you thought a fitness business was all about a sweaty gym, it’s time to take a fresh look at this active sector. One of the liveliest industries on the planet right now, fitness is incorporating everything from 24/7 gyms like Anytime Fitness and Plus Fitness to boutique-style class-based venues. Niche fitness techniques like Pilates, boxing, barre and functional fitness are reinvigorating the jaded gym-goer. And with fewer than 20 per cent of Australians working out in a fitness space, there’s plenty of room for more.

THE CARE FACTOR

This is a favourite of ours. In 2017 there were 3.8 million people (15 per cent of the Australian population) aged 65 or over and, according to AHW, in June 2018 more than 780,000 individuals were accessing grants for home-support services.

This market is just going to keep growing.

It’s been a slow-burner but now the flame is spreading, as business-minded individuals see the potential in a home-care franchise offering stay-at-home solutions for the aged and people with a disability. Improved regulations around home-care packages have helped drive this. Just look at how Home Caring is expanding with its community-focused approach.

BUILDING A FUTURE

While apartment living is the new compact answer to home development for Australia’s rising population, regional and sub-metro areas are still attracting home owners wanting a fresh plot of land to build their dreams on. And it makes perfect sense for an independent builder to tap into the strength of a franchised brand in this arena to gain more support and marketing capacity.

If we can’t build, we’re renovating. Good news for the strong franchises operating in this area providing structure and a competitive edge in a market crowded with small brands.

HOW TO SPOT IF A TREND IS FOR YOU

Ask these top 20 questions to work out if investing in a business that’s trending is going to meet your purposes: 1. Who are the customers and how likely are they to buy from this brand?

2. Would you be a repeat customer at this business?

3. What makes this business different from the competition?

4. Is it a niche business or is there potential to broaden the product or services range?

5. How competitive is the consumer pricing?

6. Will the suppliers in the supply chain be able to furnish ongoing demand?

7. How quickly will the branding and offer tire?

8. How much investment is the

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

franchisor spending on research of the market?

Whether the business is mobile or operates from a fixed site, is it easy to get the right location?

Do the sites currently operating get the foot traffic required to be successful?

Is the franchisor capable of supporting a fast-growing franchise?

Conversely, how can you make money from this business if there is a slowdown in the market?

What is the key to profitability in the business?

Do you have the skills to operate the business?

What training is available – business and technical?

How is the marketing tracked and measured?

How much local area marketing are you expected to do?

Is there a minimum revenue expectation from the franchisor?

19. What capital expenditure will the franchise require over the term of the agreement?

20. Is this a brand, and sector, you will be proud to represent?

It’s definitely worth doing your own research on both the particular sector you are considering and any brands you shortlist.

Brand-new franchises can be riskier investments but offer a chance to join an exciting, young business which may reap good returns. An established brand can sit well in a changing environment if it has the will and capacity to maintain its core base while innovating in essential areas to stay ahead of the competition.

The franchisor will provide plenty of information that’s helpful in your decisionmaking process, but back it up with independent due diligence and third-party advice from a franchise-experienced lawyer and accountant to get a full picture. n

FEB/APR 2020 | 18 | WWW.FRANCHISEBUSINESS.COM.AU

THE LIST

BRANDS BROADEN

THEIR HORIZONS Regional Australia is calling ... savvy franchise chains are spotting the business potential beyond our capital cities.

I

t isn’t just the slower pace of life that tempts Aussies away from the metropolitan hubs; the cost of living, a community feel and better housing options are also on the wish list. And so population growth, well-sized locations and affordable rents are luring franchise brands, too.

A franchise’s regional expansion provides the ideal solution for a tree- or sea-change (McDonald’s famously relies on new franchisees moving wherever the opportunity arises).

And with firms recognising the demand for cityfavourites to join the regional heartland line-up, there’s a fresh enthusiasm for provincial postcodes.

The Franchise Council of Australia, the sector’s peak body, has also heightened awareness of the coastal and interior towns ripe for new business. In 2019 the FCA

played matchmaker with a program linking regional cities to franchisors keen to explore new horizons.

Greater Hamilton council in the Grampians, for example, has directly targeted the franchise sector, proclaiming itself a supportive administration and the area an agricultural region with a strong appetite for franchise brands.

Various retail analysts are backing the regional trend; last year, reports pitched that suburban and regional shopping centres will drive a return to retail. Property firms are investing big bucks in building and refurbishing so-called “tier 2” sites with construction set to rival the flagship metro centres.

So is the future regional? Certainly there is a diverse range of firms keen to extend their brand footprint into business-friendly districts across the country, such as the brands showcased here.

BURGER BUZZ

McDonald’s has a three-year, $500 million growth plan that includes better regional representation for the global

burger brand.

The goal will be to have more than 1000 McDonald’s outlets open across Australia.

Key growth corridors across the country are typical areas of development for the business, which owns two out of every three sites it operates.

The fast-food giant has mastered the art of diversification with its store formats, but expect to see more of the freestanding stores and drive-throughs that form the basis of its business as it steps up expansion.

Customer demand matched with site availability, suitable zoning, access to key roads, and population growth will be the blueprint for regional growth.

BIGGER BUBBLE

The Little Cha has Geelong, Newcastle and the Sunshine Coast marked up as potential growth spots for its bubble tea network. Already established in Taiwan, NSW and WA, the beverage business brings eastern flavours to Aussie consumers.

The brand launched its first Australian site in 2017 and plans to open up to 30 stores by 2022.

FEB/APR 2020 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

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THE LIST

SHINY CARS

DIVE RIGHT IN

“Regional areas work really well for us,” says Neil Welsh, the Touch Up Guys national franchise manager. The mobile paint and bumper repairs franchise has been servicing Aussie vehicles for nearly 30 years and has more than 60 franchisees operating throughout Australia.

“The Queensland coast is well covered up to Mackay,” says Welsh, but there are plenty of opportunities across the country. Ballarat, Bendigo, Shepparton and Mildura in Victoria, Wagga Wagga in NSW – and further afield, Darwin, Alice Springs, Broome and Albany are high on the list.

The franchise is targeting motivated individuals who are personable, and love a hands-on role. Extensive technical and business skills training and ongoing mentoring mean no experience is required.

Aussie fibreglass swimming pool builder Narellan Pools is looking for regional franchisees.

Peter Baily, chief operating officer, says, “We already have a lot of areas covered and they are some of our best performing territories. We find competition to be less in regional areas and many of our franchisees have done a great job building their reputation and market share.

“We work hard on delivering a great client experience and this works especially well in regional areas where word of mouth is more powerful.”

Baily says the community aspect plays a key role in building business.

“Our franchisees get involved in their local communities and people tend to support businesses that support the community.”

Key opportunities are on the Capricorn Coast and Tasmania, in.Ballarat, Mildura, Warrnambool and Mount Isa.

OPEN SPACE

Country head of IWG (International Workplace Group) Damien Sheehan says, “By 2030, it is predicted that up to 30 per cent of all commercial real estate will be flexible workspace, while flexible working is estimated to increase the total economic output in Australia by an estimated $122 billion.”

IWG alone helps millions of people in 1000 cities across more than 120 countries find collaborative work spaces.

In Australia the firm’s geographical targets include the regions surrounding Sydney such as the Hunter and Wollongong, as well as Penrith and Nowra; the growth corridors north and south of Brisbane, Townsville and Cairns; the Mornington Peninsula, Albury-Wodonga and Mildura.

The business is targeting investors who can commit to three or more locations over the next four to six years.

COUNTRY HERITAGE

Andersens Flooring is one brand that

knows the value of regional representation.

Andersens started in the Queensland Lockyer Valley town of Gatton more than 60 years ago and now has almost half of its network spread across rural areas in Queensland and northern NSW. Network development manager Dean Lightfoot says, “We see great opportunity in the southern states to expand the brand. I currently have three applicants for regional areas from Port Macquarie and down to Shepparton, which we are very excited about.”

There are plans for eight new stores to open and the franchise has its sights set on eastern seaboard development south of Newcastle and into South Australia.

There’s a definite trend to more rural regions because of housing affordability challenges, Lightfoot reports. Popular locations are within four hours drive of capital cities.

ACTIVE ANKLE-BITERS MyFirstGym’s new master franchisee

has circled Cairns to northern NSW on the map, and is tasked with developing this Queensland regional growth for the newbie fitness model geared up for small kids’ activities.

Martin Roller will help co-founder Dan Newton reach his goal of 40 outlets across Queensland and NSW by 2025.

Newton says, “MyFirstGym now has area developers across five Australian states, and we’re very confident in the high-quality team we have in place. We have a wealth of experience within the group, with high credibility and incredible track records across different industries and sectors.”

FEB/APR 2020 | 22 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

ON A

SCROLL

When US bakery giant Cinnabon announced it was heading Down Under, the internet went into meltdown.

By Nick Hall

S

ocial media was littered with love for the hot scroll concept, which had staked its claim on gooey and gluttonous. But it wasn’t going to be easy to bring the flavours to life in Australia.

In Seattle, where Cinnabon originated, the cool climate lends itself well to the fresh baked franchise market. A menu rich in sweet, cinnamon flavours captured the attention of the north-west US market, but as many franchisors have learned, the Aussie consumer is far more cautious.

“In the early days, no one trusts the brand, you don’t have the history so it’s very hard to convince someone that the brand will work,” says Gaurav Bansal, director of Cinnabon Australia franchisor The Bansal Group.

“Once that challenge is done, the second issue is supply chain. You can only order so much, you always have an expiry date on your supply chain. It takes two or so months to get the local supplies onside before they look at supplying to you.”

For Bansal, Cinnabon was a brand he had always admired. He knew the offering had potential, but navigating the difficulties of staffing and baking fresh daily had kept him from taking the leap. It wasn’t until he went through a similar experience with fellow US chain Carl’s Jr. that he understood how to tackle the bakery business.

INTERNATIONAL EXPERIENCE Bansal acquired the Australian rights to Carl’s Jr. back in 2016, launching a series of restaurants across south-east Queensland.

Bringing the international chain Down Under wasn’t easy, but in just under two years Bansal had amassed a Carl’s Jr. network of seven outlets, eventually being crowned International Developer of the

Year from Carl’s Jr. parent company CKE Restaurants.

“Obviously with opening seven restaurants in Queensland, there was no other competitor,” Bansal says.

“With the sales we did and the stability we have, it was really hard work paying off.”

But the budding businessman wasn’t done there.

After a few years focused on the Carl’s Jr. burger business, Bansal revisited the Cinnabon experiment, taking the lessons he’d learned and applying them to the all-new venture.

“I realised it all came down to cost of goods,” he says.

“With Cinnabon, the model has been successful all over the world because it’s a very low-cost format. Cost of goods for a scroll is sitting around 20 per cent, so it will be a high margin model, as compared to other QSR brands where your sales are high, but your cost of goods is also high.”

Bansal approached the international chain and to his surprise, the iconic bakery business jumped at the chance. Now, less than a year after announcing plans to bring Cinnabon Down Under, Bansal is basking in the glory of another international accomplishment.

CINNABON AUSTRALIA OPENING In December, Cinnabon Australia threw open the doors to its inaugural outlet.

More than 1400 fans eagerly waited outside the Toombul, Brisbane store, keen to catch a glimpse of the fresh scroll baking in action.

The outlet didn’t disappoint.

Queues poured in across opening weekend, which Gaurav put down to a perfect storm of positive promotion, brand recognition and a healthy dose of nostalgia.

FEB/APR 2020 | 24 | WWW.FRANCHISEBUSINESS.COM.AU

“The response was overwhelming, from both locals and people who travelled hundreds of kilometres to get their hands on a Cinnabon on opening weekend,” he reveals.

“I think it’s a nostalgia brand for many people who’ve tried it while travelling and never forgotten the taste. They’ve waited a long time to be able to taste Cinnabon back home, there’s also nothing else like it in Australia.”

It’s true: no other brand on the domestic franchise market offers a hot scroll product, baked fresh every 30 minutes. It’s an interesting premise, but one that has seemingly captured the hearts of the Aussie public, who are screaming out for a Cinnabon to open near them.

“We knew there was a gap in the Australian market for an indulgence brand where Cinnabon sits, but we’re amazed by the fan base around the country begging us to open in their city and their huge love for this brand,” Bansal says.

EXPANSION Nationwide expansion is certainly on the cards for Cinnabon, with interest already being explored across the country, but it’s a bigger job than you might think.

For Gaurav, the franchisor role is a new concept. He’s served as a licensee and franchisee before, but steering an entire international chain and finding the right partners to lead the growth is a new challenge in its own right.

“We want to please Cinnabon fans all over Australia and roll into every state.

We’re doing our best but it’s a huge job for every store and we want to make sure we get every opening perfect. There’s much to plan so we will take the time to do it right,” he says.

“The demand to move interstate is huge and that’s our goal for the coming years, to be Australia-wide.”

Things are kicking off, however.

Cinnabon opened its second Brisbane bakery in January, with fans eagerly anticipating an interstate announcement at any time.

“We have a couple more planned for Queensland this year, but the wheels are also in motion for Sydney and Melbourne and we hope very much to be there in 2020.”

It’s a long way off the 50-store goal Bansal revealed last year, but if things keep going the way they have been, the future is looking sweeter than ever for the hot scroll business. n FEB/APR 2020 | 25 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

ROLLING UP HIS SLEEVES New Quest Apartment Hotels franchisee Jason Travers knows a thing or two about the serviced apartment business.

By Nick Hall

A

fter five years helping franchisees get started with the booming Aussie business, the aspiring entrepreneur thought it was time he took the leap.

going to be a quick process, but I’m happy I’ve made the move.”

“I’ve run my own business before, and I’ve sort of dabbled between businessownership and corporate life,” Jason says.

“Working with Quest as a consultant, I saw the opportunity in Goulburn and decided it was time to take the plunge again.”

The former franchise relationship manager was instrumental in assisting Quest franchisees across New South Wales and the ACT. From looking out for their welfare to serving as the link between head office, Jason saw firsthand how successful the Quest model could be. So when the right location came up, he jumped at the chance.

“You have to get the right business for you, one that fits within your lifestyle,” he explains.

“I was very specific on size and very specific on geographical location. It was literally over a year of due diligence just on assessing the town, determining if there was a real opportunity for growth and success in Goulburn.”

It was a massive undertaking, one that risked a stable job and a secure income but, Jason admits, it’s not always easy to shake the entrepreneurial bug.

“My immediate boss knew my goals, it’s something I’ve been working towards for around two years, waiting until the right opportunity came along,” he says.

“It wasn’t always the goal from the start, but around mid-tenure, it really emerged as a possibility. Quest was very comfortable in helping me in the transition, in a way that didn’t distract me from my current job. I knew it wasn’t

After months of research and inspections, the relationship manager-turned-franchisee secured a site in the regional area of Goulburn, just outside the nation’s capital.

And while making the move from highflying Sydney to the much slower paced Goulburn may seem like an odd choice for a new business owner, particularly one so reliant on tourism, Jason knew it was the right decision.

Over the last few years, a steady stream of government representatives and business travellers looking for peace of mind outside of the hustle and bustle of parliament have turned to Goulburn.

The area may still be considered regional, but Jason believes it’s on the precipice of a great expansion.

“The main reason for me making the leap is still the town, and the opportunities that it poses. When you see it all happening in front of you, how you suit the area, it’s a privilege to be part of this little micro-environment.”

When it comes to regional towns, gaining the support of the locals is critical.

Luckily enough for Jason, however, interest was swelling long before the doors first opened. The new Quest property is housed on the site of the old Catholic college, which once served as a primary attraction.

“Unfortunately, the school had fallen into disrepair for about eight years, so there was no hope that it would reopen,” Jason says. “Obviously, a lot of people watched the school site get closed down and moved away, so there was some emotional attachment to the area.”

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THE OPPORTUNITY

LEADERSHIP

Locals watched eager-eyed what would replace the once regal college, hoping for something that embodied the spirit and culture of the Southern Tablelands district.

“When the DA (development application) was proposed, people were interested in what would follow, but once the Quest sign went up, the general conversation was extremely positive,” Jason says.

So positive, in fact, that the new business owner even had the mayor on speed-dial.

“Being a small town, everyone watches every step you take; there’s a real sense of community,” he says.

“It’s funny, I even had the mayor texting me saying ‘just letting you know, your beds have arrived’, because when a truckload of beds lands in town, it’s hard to miss. People were literally giving me blow by blow descriptions as things would arrive, so the town has really gotten behind us.”

EXPERIENCE Despite all his experience helping Quest franchisees get started, Jason reveals that the lead-up to opening day was still a nervous wait. However, once training began, he settled into a comfortable rhythm.

“We had a really positive induction process, with a comprehensive on-site training program for two weeks with our 12 staff members, and after all that everyone was still on-board; nobody left!” he jokes.

The corporate office team joined Jason and his crew at the Goulburn property for three weeks before opening, helping the new franchisee achieve full occupancy for his first weekend.

“Having two full-time professional trainers liaising with front-of-house and back-of-house staff, as well as our franchise relationship manager was a tremendous asset,” he says. “It was a huge sigh of relief knowing that we have professional people who are there to help.”

The high-octane start was a welcome boost for Jason, even if it meant giving up his prized room. The Sydneysider had been taking pride of place in the Goulburn penthouse, gaining a taste of what his guests are likely to experience. However, an influx of interest put an end to the creature comforts.

While you could argue that Jason’s experience with Quest may have kick-started his business for the better, Jason

believes he was far from an expert on the ins and outs. The experienced franchise professional revealed that even he was not above seeking franchise legal and accounting advice.

“When I was in corporate office I was more of a generalist, but this is very specialist purchasing,” he reveals.

“Things such as sale agreements, deeds, transfer of directorship, lease agreements with the owner of the building, they’re difficult things. You can research all you want and in theory it makes sense, but when there’s 10 documents in front of you, it can be overwhelming.”

It’s a reality that all franchisees face, but with an experienced head on his shoulders Jason knew that the help was there – all he had to do was ask.

“The team at Quest really helped me through and streamlined the process as much as possible. That guidance on paperwork and agreements made us feel very secure. I truly believe the better the relationship you have with your franchisor, regardless of network, the stronger your chances of sustained success.”

FEB/APR 2020 | 28 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

CHALLENGES Complex paperwork wasn’t the only challenge Jason had to overcome. He knew from his experience on-boarding new franchisees how difficult financing could be, however it wasn’t until he took the plunge himself that he realised just how challenging conditions had become.

“I thought it would be much easier to secure financing with my history, but banks are overly-cautious and the whole process takes much longer than expected. We have a plan in our own world, but banks have their own stipulations.”

In a business like Quest, where the buy-in is significant, securing finance is a critical step in the process. Partnering with a franchisor who not only helps you to navigate the intricacies of business ownership, but also the confusion of lending, can

help to streamline the process. Jason had the benefit of both the Quest franchising team and chief financial officer Jason Vanderzalm on his side.

“That encouragement and that backing has been invaluable. At the end of the day, I wanted to be here and Quest wanted me here, so I had full confidence that we could get it done. I didn’t feel alone at all through the process, because I knew that I had strong people in my corner, willing to help me make sense of the situation.”

In a way, Jason says, the bank’s meticulous review of your business plan is the final vote of confidence every franchisee needs.

“The more due diligence that they’ve done, the more confidence they must have in you, but you do need to get your financial house in order. You need to put yourself in the best financial position, reputation and credit history that you can.”

THE FUTURE

Ultimately, you enter entrepreneurship for financial gain and the ability to create wealth; business ownership is the true test,

So, with a successful franchise operation now under his belt, what next for the former relationship manager-turned-franchisee?

“Ultimately, you enter entrepreneurship for financial gain and the ability to create wealth; business ownership is the true test,” he says.

“Being very much a part of the discussion with other franchisees, helping them to make the transition to multi-unit, I have faith that I can achieve that goal.”

While multi-unit ownership seems like it may be on the cards, working out the mix may be tough. The new Quest Goulburn franchisee is living on-site full-time, a move which he says is critical to ensuring you lead from the front.

“Moving forward, I plan on being on-site at least five days a week,” he says. “After all, I’m not an investor, I’m rolling my sleeves up and getting stuck in.” n

FEB/APR 2020 | 31 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

JOIN THE CLUB! One Aussie icon has been pouring flat whites and cappuccinos for 30 years and as coffee tastes have matured so too has The Coffee Club’s offer. Now it’s ready for a whole new look.

By Sarah Stowe

W

hat do you do when your business has been trading for 30 years? After the big celebration, of course, you look to the future. The Coffee Club, born in Queensland, has spent two years in a transitional phase, priming for a new look to be showcased in its third decade.

The culmination is a new contemporary store design ready for the millennial families the chain is wanting to attract.

Nick Bryden, CEO, says independent coffee shops are today’s big competitors to the cafe network, which push the brand to ensure it is distinctive.

“We’ve had a strong brand that people have grown up with. We provide great coffee, consistency and convenience,” says Bryden. “Our store design has been very successful but needed to remain relevant to younger audiences.”

The Coffee Club 2020

The Coffee Club back in 2004

WHAT, WHERE, HOW MUCH? “Our model is financially good, it’s a fairly low capital requirement compared to other quick service restaurant brands and we’re very much focused on strong paybacks for franchisees. There’s a balance between the capital investment, rental costs and turnover.”

Traditionally a mainstay of shopping centres, The Coffee Club’s footprint has expanded through higher traffic locations, for instance sites in transit hubs, and drive-through outlets. Expansion through NSW and Victoria is up next, with both regional and metro stores, and regional centres, in the plan.

This year Melbourne, the tough town that is hard for most coffee chains, has been cracked, and Bryden describes it as “our big success”.

An average investment into a traditional store is about $500,000 but like so many other food retail franchises, The Coffee Club has seen potential in diversifying its cafe model to suit franchise buyers on a smaller budget. A kiosk model is likely to cost about $300,000 while those individuals with access to significant capital can sign up for a drive-through.

FEB/APR 2020 | 32 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

The Coffee Club’s sleek new look, above, and below, five years ago.

The Coffee Club in the 1990s

CULTURE ACROSS THE COUNTER When it comes to a strong franchise culture, Bryden brings a belief that a company’s culture is a source of competitive advantage.

“It’s probably working on two dimensions. You need a head office that really understands and responds to the needs of customers and franchisees and their teams.

“Secondly, we’ve launched a program to drive the employee value proposition, to make sure our staff are proud of working for us, understand the values we hold, and what’s expected. I believe that customer experience is only as good as the people delivering it.”

The program is designed to provide a toolkit for franchisees and team leaders to help direct, coach and encourage frontline staff, so the culture is seen to be coming “across the counter”.

Feeding dads a big breakfast is on the menu as a drawcard, while lighter options, some vegan, will balance the indulgent dishes, including the current customer craving for fried chicken.

But developing a new-look business isn’t just about branding, signage and the menu.

“It’s also about adding a good experience with a digital program so we’ve launched an app, and that’s been a big initiative that’s going well. It makes it easier

and rewarding to choose The Coffee Club.”

The digital initiative has been implemented in its first phase, which encourages customers to get discounts and order rewards. Stage two is to enable online ordering.

Bryden is proud that the business is an innovative franchise organisation – it’s been listed as a finalist in awards for customer experience as a result of becoming better at responding to customers’ needs.

The business is working very closely with franchisees to drive a higher level of engagement in the business, and supporting innovations in the menu, operating platforms and training.

It’s been two years of transformation for The Coffee Club, says Bryden, and the strong results bode well for an even better 2020. A new tagline will be revealed in March 2020 to replace "Where will I meet you?"n

WHY WOULD YOU BUY A FRANCHISE? Maybe you want to get into franchising but don’t want the 24/7 lifestyle that comes with it. The Coffee Club operates on a seven-days-a-week system, but only during daytime hours. There are no late-night openings for franchisees.

“Now more than ever it pays to be part of a well run bigger system.” As an example, a franchisor can bulkpurchase ingredients, providing franchisees with protection from large inflationary pressures.

The business is increasingly global, operating in 13 countries, so it handles diversity well. “We know what it takes to build a program that has wide appeal.”

“It’s an exciting time for franchise buyers looking to join. We have the next stage of the brand transformation involving an exciting presentation of our logo, communication across digital channels, the second phase of our app, and continued rollout of our programs.”

FEB/APR 2020 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

Georgia Dean

LASER SHARP

Moving at lightning speed to grab an opportunity is all in a day’s work for this beauty franchisee.

By Sarah Stowe

G

eorgia Dean is on a fast track to success. The Australian Skin Clinics franchisee is going about her new business with all the high energy you’d expect from a serial entrepreneur; an entrepreneur who started a tutoring company when she was at uni, developed the Naked Bronz bikini line, and has now invested in the beauty business.

Oh, and she’s just 22.

When Inside Franchise Business spoke to this pocket-powerhouse, she was one month into her new business.

“It’s been a lot of fun, there was turmoil initially getting it up and running but we started with two staff, now we have a team of eight.”

Georgia’s story is testament to a pacy approach to life. She bought the Australian Skin Clinics existing franchise after spending six months working on marketing at head office.

“It was an existing business, it closed down abruptly and I had an offer to take it up quickly,” she reveals.

And by quick, think lightning speed.

“The opportunity came up, and within a 72-hour period I had resigned from head office, moved from the Gold Coast to Brisbane, done full renovations on the clinic and opened for business. I hardly slept, I had 3am and 4am nights.”

Both the franchisor and Georgia wanted a swift re-opening of the suddenly closed business to ensure a valuable customer base wasn’t lost.

“There was a very big existing client

base and and I just wanted to make it as smooth as possible,” says Georgia.

INSIDE LOOKING OUT A need for speed can derail many a franchisee. But Georgia had a particular advantage, working within the head office team.

“I’d seen a proven track record for Australian Skin Clinics for months, seen it was a proven method time and time again. If you have the right management, and know how to run it, market it, and run a team well, you can do it. This is a winning formula.

“I was mainly interested because I’d seen how head office works, how they work with franchisees. Typically franchisees don’t see it inside out. That’s

what convinced me the most. I believed in it. And I knew if I put enough time into it, it would be a success.”

Of course, while the rubber-stamping of the purchase came quickly, the decision to invest in the business was the culmination of a long period of waiting.

“I’d been working at head office since March this year; the whole time I wanted to take over a clinic. I was waiting for the right opportunity.

“And the conference in July sparked my interest even more.”

It was the Australian Skin Clinics’ national conference where Georgia met a Melbourne-based franchisee who could see the potential of a business partnership. When the Newmarket clinic was on offer, Adam and Georgia formed a 50/50 joint venture to invest in the business.

FEB/APR 2020 | 36 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

SHARING THE LOAD Adam’s experience in Melbourne’s Plenty Valley clinic brings a practical side to the partnership that makes the tie-up with marketing-savvy Georgia a perfect match.

“I love the marketing, he already has a clinic, he knows operations from start to finish. We work incredibly well together,” she says Adam’s team flew up to help train new staff to ensure a uniform process, and he travels to Queensland for monthly meetings with Georgia.

THE BIG CHALLENGES One decision that the pair made was to retain just one member of staff from the previous franchisee’s team. Their goal was to establish their own team culture with broad-based technicians familiar with Australian Skin Clinics’ brand and protocols but who were new to the Newmarket clinic.

Georgia describes her very experienced team as “incredibly talented” and “very adaptive”. They’ve had to be, because rather than working as specialist dermal

or laser technicians the staff are employed across all treatments.

An even bigger obstacle that Georgia was facing was her youth. “Being a 22-year-old running the business I thought would be a big thing to overcome. Our youngest staff member is 23 and the oldest is 40. But it turns out if you form nice relationships with staff from the beginning, you gain their respect,” reveals Georgia.

LOVING THE JOB As the boss, Georgia works six days in the clinic either on reception or managing the team and is relishing the happy faces of satisfied customers.

“I enjoy that the most. If a customer is a bit nervous about a new treatment or a new technician, it’s the most positive thing when they come out of the treatment room raving about the clinic staff and raving about the treatments.”

Newmarket is a tight-knit community, she says, and so there is extra value in word of mouth. As a result the new customer base is swelling quite quickly.

And that’s without any marketing to generate interest.

“We haven’t had the time! Now we have a strategy, we know our market and it’s time for implementation,” says Georgia.

There is one problem, though: keeping up with the business any marketing campaigns will bring in, as the clinic is already booked out three weeks in advance.

GROWING THE FUTURE Just four weeks into her new business and Georgia can reflect on a stunning start to her Australian Skin Clinics franchise. While she says the clinic had been doing quite well under its previous owner, tweaking it has proved highly effective. Year-on-year growth is up 40 per cent, which has just whetted her appetite for future growth.

“I want more. I’m always looking for the next opportunity, I get itchy feet easily.

I want to do more and more. If another opportunity like that arises, I’d definitely go for it,” she says. n

FEB/APR 2020 | 38 | WWW.FRANCHISEBUSINESS.COM.AU

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DOING THE RIGHT THING Nowadays, franchise brands are eager to flex their community credentials, and for good reason.

By Nick Hall

W

hile price still plays an important role in the customer journey, a quality product at an affordable rate isn’t always enough.

For years, the battle of the brands saw chains take bold steps to increase their market share, and while competing on price is one way to cut through the noise, some innovative businesses are appealing to our hearts rather than our hip-pockets.

In the US, shoe company TOMS built an entire business model on sustainable and ethical operations. Right from the get-go, founder Blake Mycoskie implemented a “buy one, give one” model. For every pair of the sleek, Argentinian-style canvas shoe sold, TOMS would donate a pair back to a community in need.

While the product was far from the most fashionable item on the market, the message of helping children in need resonated, both with the public and with prospective retailers and buyers.

“I knew my shoes couldn’t compete on quality or price alone, so I told the buyer why I wanted to sell them and give them away.

The store became our first retail account,” Mycoskie told the Harvard Business Review in 2016.

Since then, TOMS has grown to a valuation of more than $300 million, never once losing sight of the community message that shaped its original vision.

The methodology behind community outreach programs is simple; in fact, it’s the very ethos that should inform all of your decisions because it’s what the consumer wants. Customers care little about your bottom line, but they do care about your values.

With customers increasingly prioritise ethics and values over price, it pays for business owners to take a stand for what

they believe in. So, here in Australia, which franchise brands are putting purpose over profits?

ZAMBRERO For Mexican-inspired fast-food chain Zambrero, community outreach programs aren’t simply an afterthought. The Aussie franchise was designed with the goal of tackling world hunger right from day one.

Founder Dr Sam Prince launched the restaurant chain in Canberra in 2005, however it was his personal experience and cultural heritage that formed the brand’s iconic people-first mission.

With parents raised in Sri Lanka, Prince was motivated through their stories and experience to start a business that not only provided great food but had a good cause in mind. Targeting world hunger as a primary issue, Zambrero introduced the Plate 4 Plate initiative which, much like the TOMS model, relied on a “buy one, donate one” system.

For every burrito or bowl purchased at Zambrero, one meal is donated to someone in need, through domestic partnerships with Foodbank and international support provided by Rise Against Hunger.

While in recent times the executive team has changed, current CEO Bianca Azzopardi hasn’t let Prince’s focus on community enterprise wane. Over the years, Zambrero has donated more than 33 million meals across 200 international restaurants in Australia, New Zealand, Ireland and the US through the initiative.

In fact, in October last year Azzopardi and the Zambrero team took to the streets for their biggest event ever, the annual Plate 4 Plate Day. Thousands of volunteers and customers crammed into iconic FEB/APR 2020 | 40 | WWW.FRANCHISEBUSINESS.COM.AU

venues across Sydney, Melbourne, Adelaide, Perth and Brisbane to pack more than 450,000 meals for those in need.

“Zambrero is passionate about driving awareness around the global hunger crisis, highlighting it as an issue that is both widespread and underestimated,” Azzopardi says.

“Our Plate 4 Plate Day is held on World Food Day to encourage our customers to face poverty at a local level. This is an opportunity for Australians to consider who it is that will address short-term hunger if not those with the time and resources to do so.”

It’s an enormous undertaking for the Mexican-inspired franchise, but one that has been carried throughout the operation. From the head office staff to the franchise partners, the theme is consistent.

“Our franchise partners are the most critical piece of the Plate 4 Plate initiative,” Azzopardi says. “Not only are they responsible for the teams who serve the burritos and bowls that result in our donations, but they are the ones advocating to our customers around the country about the Plate 4 Plate initiative and how they can make a difference.”

“In fact, many of our franchise partners have chosen to be part of Zambrero because of the Plate 4 Plate initiative and what we stand for.”

While Zambrero is helping to tackle world hunger, it isn’t the only franchise addressing the issue.

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LEADERSHIP

STUDIO PILATES Brisbane-born fitness franchise Studio Pilates is also working to help bridge the gap for those in need, targeting at-risk Aussies.

“Right from inception, our ethos has always been to help other people. That’s what we feel we were put on this Earth to do and it’s at our very core,” Studio Pilates International CEO and co-founder Jade Winter explains.

The health and fitness franchise is tackling hunger here at home, through an innovative partnership with home-delivery meal service Nourish’d.

Studio Pilates members partaking in the franchise’s Hell Week and 30 Day Challenges can nominate to receive pre-packaged meals as part of their program. However, instead of pocketing a rebate for meals sold, Studio Pilates uses them to fund its “We Eat, They Eat” initiative.

For every 20 home-delivered meals the Studio Pilates community orders for themselves, one fresh, nutritious meal will be delivered to a person in need.

“It gives our clients the power of purchasing-with-purpose,” Winter says.

“Building genuine connection amongst our communities and reminding them that they’re part of something much bigger.”

The new community-focused initiative hits close to home for the global CEO and fitness entrepreneur. Winter reveals that he was inspired to bring the “We Eat, They Eat” project to life after growing up watching his single mother, and other families in his neighbourhood, struggle to put food on the table.

“I believe it’s of the utmost importance to use our platform to push positive growth,” he says. “It’s quite simply the right thing to do.”

While it’s all systems go for Studio Pilates’ “We Eat, They Eat” initiative, it’s not the only community-focused program the franchise is exploring.

When one of their own was facing a debilitating illness, the team set to work. Studio Pilates franchisees Ash and Ryan Giles’ six-year old son Nash was diagnosed with a brain tumour, undergoing both chemotherapy treatment and brain surgery.

“After spending so much time in hospital over the years for many different procedures, and then embarking on the most gut-wrenching journey of chemotherapy and brain surgery, we have seen the direct effects of current treatments available to children,” Ash says.

Jade saw the toll it was taking on the family, and with the help of all Studio Pilates franchisees, put together the Hundreds for Hope initiative. Over one day, all classes across 24 studios are offered completely free of charge, with giveaways and entertainment raising funds for two children’s charities, The Kids’ Cancer Project and Child Cancer Foundation.

“As a parent to a son of the same age, it really hit home, and right then I decided, as an organisation – as a family – we simply had to do something to support other families faced with cancer,” Winter says.

I believe it’s of the utmost importance to use our platform to push positive growth.

FEB/APR 2020 | 42 | WWW.FRANCHISEBUSINESS.COM.AU

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WE ROCK THE SPECTRUM Championing the cause for families is something US-founded franchise We Rock the Spectrum has prioritised for years. The purpose-built gym chain is designed for children with special needs and features personalised equipment to aid in sensory development.

However, above all else, founder Dina Kimmel says it’s all about inclusion.

After her son Gabriel was diagnosed with autism, the mum of two went looking for a supportive community. When she couldn’t find one, she built her own.

“The first We Rock the Spectrum gym was actually created in my home, and after seeing miracles happen with Gabriel and my daughter, who is not special needs, in terms of inclusion, I thought ‘there’s got to be more families out there who need this as well’,” she says.

“That’s what inspired me to open the first free-standing gym in 2010 and it was really the parents in the local community that drove its success.”

Flash-forward a decade and We Rock the Spectrum now boasts over 80 locations worldwide, including a growing presence Down Under.

Sally Johnson is the master franchise owner behind the Aussie incarnation and was compelled to bring Kimmel’s vision to Australian shores after undergoing a remarkably similar experience.

Like Gabriel, Johnson’s son Digby was diagnosed with autism, prompting the passionate mum to search out options.

What she found in We Rock the Spectrum was a community of like-minded families, and an opportunity to lead from the front.

Eighteen months after launching her initial Preston gym, Johnson is helping more and more Aussie families get on board with the family-first fitness chain.

“As a global group, the franchise has seen some incredible developments this last year,” Johnson says.

“As well as launching in several more

countries around the world including Egypt, Ireland, Saudi Arabia and Canada, we have seen several more brand partnerships developed. We have also become fully NDIS Registered, meaning that families with Disability Funding can access our services using their funding. It’s a great feeling to know that we are all part of a strong mission of inclusion and acceptance for kids of all abilities.”

It’s a mission that Aussies are getting behind. Johnson says that the gym is as much for the sensory development of special needs children as it is for their families.

“As gyms who also welcome typically developing children into our centres, many of whom have had little exposure to kids with disabilities, the benefits are twofold,” she says.

The family-focused business isn’t slowing down either. Johnson reveals that new gyms in Sydney and Geelong are set to open early this year, with Moorabbin and Wollongong to follow.

BEN & JERRY’S Keeping things cool may seem like an obvious mission for an ice cream business like Ben & Jerry’s, but much like the decadent flavours for which the brand is famous, the team likes to go big.

In 2019, the ice cream icon partnered with the Australian Youth Climate Coalition to help raise awareness of climate change, sending their “Scoop Mobile” around the country, targeting universities and encouraging students to pledge to #VoteClimate.

“From the beginning of the company’s 40-year history, Ben & Jerry’s has championed social and environmental justice.

We care not only about how we produce our ice cream but also about how we can raise awareness and inspire people to take action on important environmental and social issues,” Sean Farrell, Ben & Jerry’s national retail manager explains.

“In Australia, we have fought for the reef when it was threatened by

FEB/APR 2020 | 44 | WWW.FRANCHISEBUSINESS.COM.AU

dredging, we have joined NGOs to stop the proposed Adani coal mine and we have encouraged the public to divest.”

It’s an ethos that runs deep for the iconic chain. From carbon reduction to strict sustainability standards, Ben & Jerry’s is constantly looking at ways to improve its social impact, from both a head office and local level, which requires buy-in from franchisees.

“The social mission is embedded into the business and who we are, so franchisees understand this when they start working with us,” Farrell explains.

Never one to shy away from controversy, the brand extended its focus beyond the environment, leading the marriage equality charge Down Under. But Farrell

reveals it was hardly a bandwagon move.

“Ben & Jerry’s also has a long and proud history of commitment to social justice, including LGBT rights and marriage equality,” he says.

“This commitment is grounded in our company’s values, which include a deep respect for all people and an unshakable belief that everyone deserves full and equal civil rights.”

In fact, way back in 1989, Ben & Jerry's was the first major employer in Vermont to offer health insurance to domestic partners of employees, including same-sex couples. Here in Australia, the team has been rallying support for marriage equality since 2013, launching an “I Dough, I Dough” flavour to celebrate Australian

marriage equality in 2017.

It’s a bold and often polarising strategy to employ, but Farrell believes it’s more important to do what’s right rather than what’s popular.

“We know that we are not going to win everyone’s favour doing that but that’s okay with us because we don’t do what we do to gain popularity, we do it because we believe it is the right thing to do.”

MUFFIN BREAK For Aussie icon Muffin Break, the right thing to do was to cut down on the chain’s environmental impact. Back in 2018, the cafe franchise embarked on an initiative

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FEB/APR 2020 | 45 | WWW.FRANCHISEBUSINESS.COM.AU

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that would improve sustainability, while also staying true to the Muffin Break message.

The brand identified that amid the climate change noise, consumers were becoming increasingly confused over what could and couldn’t be recycled.

“No matter how much you hear about eco and recycling, in Australia, less than 1 per cent of takeaway coffee cups make it into commercial composting,” Muffin Break general manager Natalie Brennan reveals.

To help get the ball rolling, Muffin Break overhauled operations, with head office and franchisees buying into the new sustainable focus. However, it was a fortuitous partnership with a local organisation that helped the business to break through.

Joining forces with coffee cup recycling operation Simply Cups, Muffin Break was able to significantly reduce the amount of cups headed into landfill, a partnership that was backed by the entire network.

“Our franchisees are all families working in their communities, so it’s important to them to minimise our waste as business owners and community members,” Brennan says.

Eighteen months on, Muffin Break isn’t backing down. The chain recently removed all single-use plastics from stores, a move which included replacing plastic cutlery with bamboo.

However, Brennan reveals more initiatives are in the works.

“We’re looking at how to collect coffee grounds and food waste from our stores, to further reduce our footprint in landfill. We’re exploring our shopping centre relationships, working with centres who are implementing better waste management options for retailers.”

Our franchisees are all families working in their communities, so it’s important to them to minimise our waste as business owners and community members.

FINAL THOUGHTS When it comes to social equity, there is nothing more powerful than giving back. Customers nowadays are driven more by emotional connections and value sets than ever before.

Whether it be environmental, social or ethical, franchise chains that aren’t afraid to step into the public eye may face criticism, but as Ben & Jerry’s Sean Farrell explains, it comes with the territory.

“Unfortunately, the issues facing the world at the moment are big – whether that’s climate change, the refugee crisis or racial justice,” he says. “Everybody – individuals, brands, companies and governments – we all have a part to play.” n

FEB/APR 2020 | 47 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

SAY YES TO YIROS

Authentic street-Greek franchise The Yiros Shop has carved out a reputation for fresh and flavoursome food and now the chain is gearing up for growth.

By Nick Hall

N

ick Mitrossilis of Hendra was just 24 when he opened his first business, The Yiros Shop, five years ago on James Street, Fortitude Valley. The little business experience he brought to the initiative was outweighed by his passion to bring authentic, fresh Greek food to Brisbane.

Today he’s proud of the chain’s growth but is the first to admit he didn’t really know what he was getting into.

“It was my first business and I was a bit naive and thought it was going to be easier. I certainly learned the hard way in the early days. There are multiple variables on a day-to-day basis, so many different components have to come together to create a successful and sustainable business,” he says.

Five years in, a far more business-savvy Mitrossilis has corrected his mistakes and implemented the systems, processes and technology that enable better operations and growth.

“As the business grew I would say

that consistency across all stores was the biggest hurdle we had. Now we have extensive systems which help with future planning of our brand. Everything that our Yiros family does now is very well planned – which is much different to the ad hoc approach I had in the early days.

“We have systems in place so we can gather data on inventory levels, sales, rostering and marketing. As a result, financially The Yiros Shop has a consistent growing turnover and shows great profits.

“It’s fantastic to see how popular our fresh Greek food is among locals and visitors and with this, we have built a huge following of loyal customers who keep coming back for more.”

Mitrossilis was keen to capitalise on the chain’s sustained success, earmarking extensive development across its home state as the initial stage in The Yiros Shop franchise expansion strategy.

“The Yiros Shop is a 50/50 restaurant and takeaway and we have five existing stores located at Fortitude Valley, Cannon Hill, South Brisbane, Capalaba and Newmarket, all of which are doing

really well,” Mitrossilis reveals.

“There are lots of contributing factors you have to weigh up before moving to a new location. The most important thing is the location. We like to have our stores in easily accessible places for convenience.”

Precincts already marked out for stores are Albion Central and Stafford, both north of Brisbane, and further expansion is planned along the east coast.

A franchise buyer investing in the $350,000 franchise will benefit from at least four weeks training, personal mentoring and ongoing support.

Today Mitrossilis knows there’s an appetite for his food offer.

“What I am most proud of is watching the growth of The Yiros Shop over the years. Walking into the stores and seeing all kinds of people, young and old, enjoying our food and service. Being Greek, feeding people is in our blood and we’re really excited to make it even easier for people to get their Yiros fix and enjoy fast, flavoursome and fresh Greek food.” n

FEB/APR 2020 | 48 | WWW.FRANCHISEBUSINESS.COM.AU

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FITNESS FOCUS

GET PUMPED! Franchisees are flexing their talents in this highly active marketplace.

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yms, boutique studios, functional fitness, communitybased exercise...there’s something for everyone in the fitness sector today, and savvy franchisees are snapping up the opportunities.

Over the next 15 pages, five inspirational tales reveal what motivates people from all walks of life to take on the emotional and physical workout required to be a business owner, and why they are passionate about shaping up their future in the fitness world.

FEB/APR 2020 | 51 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

FOLLOWING THE GAME PLAN When AFL superstars Taylor Adams and Levi Greenwood aren’t fighting it out on the field, they’re doing it at one of the pair’s 12RND Fitness clubs.

By Nick Hall FEB/APR 2020 | 52 | WWW.FRANCHISEBUSINESS.COM.AU

T

he Collingwood midfielders have amassed a solid resume on the sporting field, but it’s their work in the business arena that is turning heads.

In the high-pressure environment of professional sport, careers can be cut short in an instant, with the threats of injury, form and fatigue looming large.

It’s a known fact that the sporting dream doesn’t last forever, which is precisely why Collingwood players Taylor Adams and Levi Greenwood were on the hunt for a long-term opportunity.

A chance encounter at a 12RND Fitness club on the Gold Coast planted the seed for Levi and it wasn't long before the penny dropped.

“We thought it’d be a great way for Taylor and I to get into business and set ourselves up post-footy,” Levi explains.

“At the time, there were only a few open in Victoria so we knew we were onto something.”

The boxing and strength-training franchise seemed like a perfect fit for the two athletes. With a focus on team training in a sporting environment, 12RND has captured the imagination of many ex-sport stars and fitness fanatics.

However, like all good franchisees, Taylor and Levi approached the opportunity with reserved excitement.

They knew that while the business had potential, it needed to be a long-term investment that fitted with their already packed schedule. Luckily for Taylor, one training session was all it took for the fitness nut to get hooked.

“As soon as we came across 12RND, we just knew we were onto a winner and were confident that we could make a club work,” Taylor explains.

“I immediately loved the concept, loved the training, the professionalism of the fitout, the fact that there’s a coach in every workout, the variety, the boxing, and especially the strength and conditioning.”

DRAWCARD Taylor says the real drawcard that inspired him to take the leap was seeing the parallels between his professional sporting career and the 12RND model.

“I’ve grown up involved in team sports, so I loved the fact that we could do something in health and fitness that offered a team environment where I could help people achieve their goals from one workout through to long-term results as an ongoing member,” he says.

It was an appeal that Levi echoed.

“At the start, the concept was the biggest drawcard, the no fixed class times and the fact that you got a full body workout in under 45 minutes; I knew it would be perfect for time-poor people in Melbourne,” he says.

The pair got started on their initial Port Melbourne studio, launching in May of 2019, with Levi revealing the venture was anything but a passive investment.

“In the early days we put in a lot more than we expected to, working on the floor quite a bit at the start to get things into operation as we were finding our staff and to make sure we fully understood our product,” he says.

“The more we got involved, the more we could see and feel that team environment with not just our staff but also our members, where we all work together and create a tight-knit environment.”

Things have certainly changed since then, with the Collingwood superstars slowly stepping back as the AFL season kicked on.

MANY BALLS IN THE AIR With Taylor and Levi spending up to 45 hours at the football club per week, the challenges of getting your body right while FEB/APR 2020 | 53 | WWW.FRANCHISEBUSINESS.COM.AU

launching a new business were very real.

“It can be difficult, but we came into this prepared, knowing that opening a new business meant that we would need to be as involved as possible regardless how tired or fatigued we may have been from games,” Taylor says.

Employing a great team of staff and managers that they could trust when times get busy was critical, but so too was the reliance on each other “I think it's important that we’ve had each other,” Levi says. “Throughout some of the uncertainties at the start especially.

We weren’t 100 per cent sure when we could actually open and our club opening ended up coinciding with our football preparation, but we made the necessary sacrifices along the way to make it happen.”

“The reality is that we don’t get a lot of free time during the football season, so unfortunately we don't get to be as involved in the clubs as we’d like to be, but we remain highly involved behind the scenes, working to ensure the club services our members as best as possible,” Taylor explains.

The pair are in the club at least twice a week either working out, visiting staff or overseeing operations. Additionally, the co-owners are constantly in contact with

LEADERSHIP

staff and members through email, phone and group messages, however Levi says you can’t underestimate the importance of being present.

“The reason we started this business was to be a part of it so it’s important for us to remain involved,” he says.

FIGHTING FIT While Taylor and Levi are a model fit for the 12RND system, they aren’t the only celebrities backing the business. Amatuer boxer Taylah Robertson, AFLW player Jessy Keeffe and Brisbane Bandits star Logan Wade are all involved with the brand, however its celebrity status comes straight from the top.

Along with being the face and proverbial colour-scheme for the brand, four-time world boxing champion Danny Green also co-founded the business with entrepreneur Tim West back in 2016.

The influx of professional athletes to the brand hasn’t come through deals or discounts though, with West revealing that much like Danny, Taylor and Levi’s involvement was a project of passion.

“Levi and Taylor have got involved, like Danny because of their advocacy, not because they’ve been given territories or business opportunities,” he says.

“It’s because they, like us, believe that there is a big enough percentage of the population that would love to play professional sport if they were skilled enough or if they had the time.”

Believing in the system is one thing, but having a dedicated franchisor on hand to provide support is another, particularly for two business newbies.

“The most challenging part is taking the leap of faith where you decide to do it and just go ahead and do it. We’re fortunate that we have a lot of great people around us that are willing to help,” Taylor says.

“The opportunity to invest into an already established, successful franchise network has actually been one of the biggest motivators behind going with 12RND; that you weren’t going about business starting from scratch.”

“Coming from an athlete background, owning a 12RND club feels like a natural progression – it’s a high-performance business and on top of that you have the team environment in club with your members,” Levi says. “It makes it an easy decision once you know what you’re getting into.”

NEW VENTURES If playing professional sport has taught the two Collingwood superstars anything, it’s that hard work breeds opportunity, which is an ethos they’re grabbing with both hands.

Less than a year after launching their first 12RND studio, Taylor and Levi are backing it up with a second studio at Point Cook, but this time around, they have the franchise fundamentals down pat.

“Our Point Cook club came off the back of a fair bit of research of the suburb,” Taylor says. “There’s a lot of development with young families and young professionals, which matches the 12RND audience perfectly.”

“We had a plan all along to have more than one 12RND club, because we have the support of our business partners and are still focusing on our footy, we wanted to build our business to become self-sustaining where we have a network of 12RND clubs that we could all float between, enough to keep us all busy,” Levi explains.

So with two clubs under their belt and a few years of footy left in the body, what’s next for the Collingwood champs?

“Our plan is to keep expanding, we love what we’re doing and we’re definitely looking at opening a third 12RND club in the new year,” Taylor says.

“We’re always up for a challenge,” Levi reveals. “We’re very driven people and have been in a competitive environment for a long time, so if it takes 10 clubs to help us continue with that momentum and maintain that stimulation to avoid complacency then that’s what we’ll do.

“At the end of the day, we trusted the process, product and the system, and just knew to follow the game plan.” n

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LEADERSHIP

Kate and Mike Davidson

FRANCHISE FIT Operating as a personal trainer is entirely different from running a franchise, says award-winning Kate Davidson.

By Sarah Stowe

I

t was a series of decisions and events that led Kate from her role in public service to business ownership, and she has made the most of her unexpected journey.

Studying health and fitness while still in the public service led her to a PT role with a local studio. Just one year later and Kate and her husband were on the move, relocating for his career from Brisbane to Noosa. Kate had no idea this location shift would take her down the path to being an award-winning franchisee.

“That’s when I came across EFM Health Clubs. I was doing bootcamp and personal training.”

Kate had notched up 10 months as a casual fitness coach at the local EFM club when the franchisee offered to sell her the business, and it was just too tempting to resist.

“I hadn’t really thought properly about running my own business but it’s always in the back of your mind. It is hard to run a PT business, it’s hard to keep up your numbers, but I’d never really taken any steps towards it,” she says.

It proved to be the right move, even though there were challenges.

“The studio had been open for seven and a half years

when I took over. The first challenge was the transition. In the members’ mind I had gone from part-time casual coach to new owner. The previous owner was very popular and no one had any idea he was selling.

“I knew everybody but people don’t like change. It took some members a little while to adapt.”

Kate says the transition from casual coach to fullyfledged business owner was quite quick – and she learned fast how different the two roles are.

“Running a PT business isn’t like running a franchise.

I was learning everything on the job. We did have franchise training and I spent a lot of time with the support office. EFM does have lots of internal processes and systems that work well and are user-friendly. You can call anyone at any time. But there’s a lot to learn,” she admits. “But there is so much support and financial systems, membership-based systems, social media, EFM deals with the website. They provide us with promo details and marketing materials. There’s a lot of additional work and it’s very helpful to have the extras.”

Kate had no second thoughts about her choice of business, or the brand, and because she had done thorough due diligence before actually buying the franchise, she was confident in her choice.

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LEADERSHIP

“The first time I came across the model, I loved it. We provide much more than a standard gym service. We provide a personalised fitness coaching service to every person in a group environment, but one-on-one service with a personal trainer.

We write a workout every day, people come when they like it. They work at their own pace.”

Now she loves the franchising model of business, but Kate admits that she was quite ignorant about it at first.

“I always thought of it as fast-food and coffee chains. I never thought a small business like this could be a franchise. I started to realise how many local businesses are run by franchisees.”

Kate and fitness coach Jay Pattison celebrate EFM member Rick Robinson’s 100th club session

Kate Davidson with MYOB’s Julie Hoffman Green

SO WHAT IS IT ABOUT FRANCHISING PARTICULARLY THAT SHE LOVES?

“I love that even though you are running your own business you are part of a community. EFM appeals to a certain type of person, so we have like-minded, inspiring and supportive people.

I don’t feel isolated at all. I am able to have people to bounce ideas off, ask people who have more experience, and the support is invaluable,” she points out.

It was early in 2019 when Kate’s journey to award status began. First nominated in the Franchise Council of Australia’s Queensland awards, Kate’s regional win put her in the running for the national award. So in October, along with other franchisee hopefuls, Kate attended the gala dinner and was named the top Single Unit Franchisee with less than two staff. It’s an accolade that thrills her.

“I’m so proud and the members are so proud. Winning the award was amazing, but ever since my members have been really congratulatory. It makes me confident I am doing the right thing, it makes me so happy.”

Kate’s got her feet on the ground, though, and knows there is much more to business than scooping up awards.

“My biggest achievement has been seeing the club really successful. I have

really good attendance and retention rates, that means clients are enjoying their membership, they are staying with us.

People vote with their feet, so people are telling me they are happy with the service.”

The figures speak for themselves.

Although the first year proved tough, in 2017–18 the business catapulted forward with 19 per cent growth, and from 2018–19 there was a further 11 per cent growth.

Kate believes her people-first approach is behind her success.

“I focus on how many members I want to have involved. I break that down into how many I need to speak in a week, how many I need to offer a trial to, and then how many I need to convert.

“It works better for me, in terms of interaction with people. I focus on people and the staff I work with, that’s how my business plan works.”

The business has been very dependent on her skills, and she’s been hands-on coaching. She’s ready to grow, but not yet in a second location. Kate’s immediate goal is to provide more variety for members in the training, and she has been able to take on three casual trainers whose combined hours are still less than one full-time role.

Financially, being a franchisee has had a big impact on her life particularly now the business is profitable, Kate reports.

“We’re hoping to buy a house in 2020, which is something I haven’t been able to save for before.”

Running a successful franchise has also had other personal positive effects, she says.

“It’s made me much more confident in my abilities, and that makes me a happier person in general.” n

FEB/APR 2020 | 58 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

STEPPING UP THEIR GAME After more than a decade on the scene, the future is looking bright for Stepz Fitness.

By Nick Hall

T

he home-grown health chain has built its reputation on 24/7 operation, but these days, quick and convenient is the name of the game.

With the explosion of functional fitness taking hold of the health and wellness space, more consumers are forgoing the big box gym in search of something more bespoke. For traditional 24/7 fitness chains, the reality is simple: adapt or innovate.

“When I took over the franchise in 2017, I saw that there was a real need for functional, group training,” Stepz Fitness franchisor Sam Waller says.

“In the past, we just couldn’t deliver the volume of high results that we knew we were capable of in group training. This was a way that we could offer members stronger results, while creating a more highvalue environment.”

But unlike other chains that had been tackling functional fitness giants F45 and Barry’s, Waller knew he had to get the balance right. It wasn’t enough to just add a bolt-on to Stepz Fitness’s existing framework; the new model had to appeal to a high-value customer while simultaneously providing a profitable operation for franchisees.

What followed was nearly two years of extensive research and development, taking into account costs, format and most importantly customer demands.

HYBRID MODEL To combat the evolving challenges of the fitness industry, Stepz introduced a hybrid format, offering functional and group training, alongside the brand’s established 24/7 model.

“It just makes sense from a business perspective,” Waller says.

“The low-cost, high-volume of membership that has come along with increased competition in the 24/7 space was always going to be a challenge, so the new concept was a way to boost business performance from a high-yield perspective. We aren’t racing for the most number of members, it’s about providing a competitive, value-driven member offer, which is something the market really needs.”

While introducing a format that appealed to members was one challenge, making sure the new initiative was franchisee-friendly was another. Rather than have existing franchisees on the hunt for alternative locations or sites, Stepz redesigned the studio set-up, controlling costs and diverting space where needed.

“Existing gyms started their redesign this year, but going forward, the footprint will still be at around 350 square metres,” he says. “As opposed to getting a bigger site, we’ve redesigned the space, utilising 100 square metres for group training, where we only need around 220 square metres for the 24/7 model. This way, we run six classes a day, with the two models running as a hybrid. We’ve gone all in on group training.”

And while franchisees understand the need to innovate and adapt, transitioning an existing network of gym owners to a new format is never easy, or cheap.

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Waller says the key to getting the network on-side was illustrating the benefits.

“It’s important to remember that we did this for the customer. As franchisors, we talk a lot about the business, but any good business should be driven by what the customers want. We understand that higher rates of interest and engagement on their behalf relate to higher rates of franchisee success.”

Launching an initial trial site at Penrith, in Sydney, Waller set the wheels in motion, performing a detailed assessment of how the venture was progressing. Once he knew the hybrid format could work, he brought it back to the network, figures and all.

“We worked alongside the franchisees to make sure that the redesign meets their budget and that they are ready for it,” he says. “At the end of the day, this was something that would benefit them; I showed them the numbers from Penrith to really get across how great the response from customers had been.”

In fact, in the months since Penrith launched, the response was so strong Waller found himself struggling to keep up.

“What we’ve seen from a customer and new franchise perspective, is a far greater rate of interest and rate of adaption than we initially predicted,” he reveals.

“For example, the Dapto studio, which FEB/APR 2020 | 61 | WWW.FRANCHISEBUSINESS.COM.AU

launched in December, had pre-sales exceeding 100 members, the majority of which were through group training. The interest has been huge and I’m just trying to keep up with it all.”

It’s a hefty load to carry, but not one to shy away from change, Waller’s full-format revamp is just one element of a wider network restructure rolled out by the Stepz franchisor.

REBRAND Waller reveals that once he started work on revitalising the offering, he realised just how much needed to be done on the brand itself.

“The 24/7 industry is extremely competitive, so for me, ever since I took over NSW I’ve been focused on creating a long-term outlook for the business,” he explains.

“The Stepz Fitness brand, like all brands, needed to be updated and now we have a branding that is more in line with who we are now and what our franchisees want.”

But just like the new hybrid format implementation, the network rebrand needed to have merit among the existing network. Waller and the Stepz team embarked on an extensive in-house consultation where franchisees could voice their concerns, opinions, thoughts and feedback.

LEADERSHIP

“I really wanted to create a branding that attracted people, attracted members and attracted more enquiries naturally, as opposed to a bland 24/7 box gym,” he says.

“It’s really important to note that the new branding is based on the current group’s feedback. We did a big survey where we asked all our franchisees where they wanted to sit in the market, how they felt about group training and what they didn’t like about 24/7. We wanted to update and look at who we are, how we speak to our customers and make sure that we are offering a product that is in line with our values.”

The experience paid off. Aside from helping to more clearly identify the goals and objectives of the franchise network, the consultation provided a boom in franchisee buy-in. It’s a level of engagement and dialogue Waller has since encouraged, with somewhat surprising results.

GIVING BACK When disaster struck the east coast of Australia in November, a number of communities found themselves in the warpath. Hundreds of bushfires blazed across the country, with homes and lives

under threat. However, as it often does, out of the tragedy came hope.

“When the fires hit, I saw something that I’d never seen in 10 years in the fitness industry,” Waller reveals.

Stepz Penrith franchisee had signed up to run a boot-camp fundraiser for local firefighters, but it wasn’t until Waller arrived that he understood the magnitude of the effort. Personal trainers and fitness professionals from across the area came together as one, regardless of brand or business, to help tackle the issue.

“Seeing all those brands come together for a good cause was amazing. It really sparked my interest to do our bit,” Waller says.

“We really want to be communityfocused and it’s our responsibility to help those in need, so it was amazing to have one of our franchisees join that cause all of their own accord. That’s something that we are really proud of.”

Following their lead, the franchisor jumped into gear, offering free memberships and programs for firefighters in the affected areas.

“We always encourage our franchisees to be active in the local community and stand up for the things that are important to them, but then to reach out and see if the franchisor team can support.

“There’s so many community-minded things that we can do, we want our franchisees to lead the charge.”

With a new brand and format under their belt, that’s precisely what Stepz’s existing and incoming franchisees plan to do.

FUTURE STEPZ Under Sam’s watchful eye, all existing studios are set to be rebranded and reformatted to help increase franchisee profitability and cater to the emerging group training audience.

“For us it’s very important over the next year to have all of the support systems in place for our franchisees,” Waller says.

“The new brand is just one small element of that, it really comes down to having a solid local area marketing and franchise marketing strategy established.”

It’s full steam ahead for the Aussie success story, with Waller revealing expansion across the Gold Coast is the next step. But at the moment, the franchisor admits he might need a little help getting the ambitious goal under control.

“I’m in the process of adding new staff members and getting new people on board, because there are just so many enquiries,” he says.

“I really believe the new brand speaks to who are and who we want to be as a business moving forward.”n

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LEADERSHIP

AND NOW HE’S A

NINJA!

Fitness has been a liberating force in John Pirlo’s life and he wants to share the gains.

By Sarah Stowe

“I

n my 20s I got into a gym in Newcastle, someone took me under their wing and I ended up doing a fitness course. I built a few clubs for that company. Then I wanted to fulfil my dream of opening up multi-sites for myself.”

John Pirlo is dedicated to fitness. When the well established Belgravia Group launched the Genesis gym model in a joint venture back in 2007, John was involved in the planning, which included a three-month presale that generated 2200 members before opening.

The gym concept was launched out of the spotlight, in the NSW town of Maitland, and over the next six years a further nine clubs were added.

“The main reason was that we wanted to inspire more people to get active,” says John.

The business developed a support team as the footprint of its gyms increased.

“It’s difficult to run your own business with clubs of up to 40 staff,” he says. “When operating a standalone business, not a franchise, there is no one to lean on. We have a great group across all clubs.

“We do multiple training programs; hopefully the trainers will go and have their own franchise clubs in the future.”

Now John’s passion for boosting Aussies’ fitness activity has found a new outlet.

And he’s looking out for self-guided entrepreneurs to take on the new venture. “Some will go to a gym, some will never want to go in their life but they want to do something fun-based. We want to engage those.”

FEB/APR 2020 | 64 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

We’re not a new franchise group, we’re part of Belgravia Group with a back office structure and 20-plus years’ experience.

So what is the new love in his life?

It’s been about seven years in the making, and for John, who has loved the chance to bond with his three daughters in an active environment, it’s a perfect business solution.

Ninja Parc. A playcentre, but tougher. So tough it’s based on outdoor Tough Mudder courses.

The venue has multiple areas. An obstacle course can be used as a racing zone, or completed in parts. There are no rules on how much an adult or child participant has to do.

“It’s something aspirational. Training has a goal, it’s about completing the course. We do a lot of classes that are functional-based, we do whole-body weight sessions like parkour.

We teach people how to move and stretch, and flexibility.”

Ninja Parc is for the young at heart, not just the kids, with the oldest customer in a class aged 78.

John has a vision of Ninja Parc as a 100-outlet-strong national brand.

“Some will use it as fun breakout in their routine – runners, parkour, climbers. Another 15 to 20 per cent will be active in doing other things. So it’s about enticing those participants.”

The business has already attracted a national race series and it works with autism and mental health groups. The focus on upper body work means wheelchair participants can utilise the facility.

“We’re very conscious to make it sustainable long term so we’ve applied what we have learned from the fitness industry.”

A Ninja Parc is entertainment and fitness in one venue, says John. “Five return visits on average per centre.”

Now the focus for the next 12 months is to find the right franchisees. In this, the business has a distinct advantage, he says.

“We’re not a new franchise group, we’re part of Belgravia Group with a back office structure and 20-plus years’ experience.”

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Why fitness was a first choice for John

“I’ve been in fitness before it was a career – it was just bodybuilders and aerobics. My father told me to go and get a real job.

“I was a radiographer at first and working in the fitness industry at the same time.

I became really passionate about it; I would have remained very unconfident without fitness; I achieved a lot.

“I gravitated towards fitness because if you’re good at something, you’ll make money.”

LEADERSHIP

How does Ninja Parc run?

REVENUE … Casual revenue accounts for the lion’s share of the business, but with classes, parties, merchandise and a cafe, there are other income streams.

“We model the cafe on the franchisee’s experience. Not every one is full service. But coffee and food options help keep party costs low.”

CLASSES AND MEMBERSHIP … Class sizes are from seven to 21 people, run in a different area from the gym, and the whole venue can be accessed as a casual or through a flexible membership that runs month to month.

LOCATIONS … Melbourne and Sydney outlets are already operating and a Greater Western Sydney venue is next up in Chullora. The first franchise, in Townsville, will open in June.

“We’re not interested in opening in every suburb. Regional cities have fewer options, metro is semi-industrial, so we plan to get capital centres operating first, then fill regionals.

“We’ve got some great deals with property suppliers. We can model space according to budget and area,” says John. The space can stretch from 500–600 square metres up to 2000 square metres, he says.

“There’s a trade-off with smaller centres, you can’t have as much casual business so these areas operate more with programming.”

Getting started

What sets up any business success in fitness is your presales, points out John. “We do a 10–12 week pre-sale not just for awareness but getting members in. There’s always a lot of activity around the first day but with 150 members from day one there is ongoing revenue.

It’s a great experience because of the energy.”

From a support perspective, John is clear that the franchise itself needs good structure and backbone, consistent marketing, training, and a consistent message.

“The advantage is I’ve been involved in a good franchise group. I look at it as club manager running a centre, what do they need?”

Delivering strong support means franchisees can get back to their business and look after the customer on the ground.

COSTS … Upfront investment from $250,000–$300,000 up to $800,000 including fitout.

HOW THE FITNESS INDUSTRY EVOLVED ENTERTAINMENT WITH FITNESS BOUTIQUE STUDIOS 24/7 GYMS WOMEN’S GYMS BIG BOX GYMS AEROBICS BODYBUILDING FEB/APR 2020 | 69 | WWW.FRANCHISEBUSINESS.COM.AU

Who should invest?

“Owner-operators do a better job because they’ve bought into it. However, sometimes investors have good structures with teams so we’re open to both.”

A business sales and marketing admin person who can be equally successful on the customer frontline is the perfect franchisee. “Engaging with schools and local community, requires someone who is good with people,” says John.

LEADERSHIP

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SNAP INTO LIFE Fitness and franchising go hand-inhand for this supercharged, multitasking franchisee/chief executive.

By Sarah Stowe

A

ndy Peat knows a thing or two about franchising. He knows a fair bit about fitness as well. In his 10 years with the Snap Fitness brand, which is just now celebrating its first decade in Australia and New Zealand, Andy has gone from club manager to franchisee to CEO and more.

So how does this 31-year-old fitness-loving, go-getting Kiwi reflect on his first action-packed decade in business? Here is his story.

It all started back in his very early 20s when the company Andy was working with brought to Australia and New Zealand the US-based Snap Fitness brand. As luck would have it, Andy was asked to take on the first New Zealand gym at Papanui as club manager, and it opened just three months after the launch club started trading in Australia.

He was just 21. But it wasn’t long before he discovered the potential of investing in the business. And it was all thanks to an accountant’s mistake. A financial statement was sent to him in error and he quickly realised he could make very good money as a franchisee. He didn’t need any further persuading.

“My flatmate had some family money and seven months later we opened our own franchise in Christchurch.”

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LEADERSHIP

SUPERCHARGED SUCCESS Despite having his own business to handle, Andy was still involved on the corporate side and took on the role of national sales manager.

And then a huge opportunity came his way. “I was growing the brand, opening clubs, opened up a few more of my own. Then I had the opportunity to move to Australia and become CEO of Australia at 25.”

Of course he grabbed the chance.

Andy spent two and a half years expanding the club’s footprint, opening up clubs in Australia and New Zealand. “It was cool,” he admits. “I really wanted to learn a lot of the financial side of business and how lending works, and then began dealing with the private equity guys wanting to buy the business back.”

So at 28 he made another career shift with Snap Fitness. Keen to return home, he landed back in New Zealand tasked with getting the business ready for sale.

That project became a 24-month process of rebuilding the business, which culminated in the transition of the Snap Fitness business back to the US franchisor, Lift Brands. As a result the Australian and New Zealand businesses combined into one. Along the way Lift introduced into the market the 9Round kickboxing fitness concept, and that has become crucial for Andy, who remains in a key leadership role at Lift as chief operating officer alongside Australian-based CEO Ty Menzies.

“We both know our lanes that we are running in, we let each other run their race.

“He’s about flying the flag. I’m a little bit more private.

“I look after 9Round and its staff in its entirety, and look after the fitness products, innovation, Myzone and fitness challenges in Snap,” he explains.

And of course, Andy is still multitasking as a committed entrepreneur.

At one point owning nine gyms, last year he sold off all his Snap

clubs but retains two 9Round outlets in New Zealand. In addition to investments in education and beauty businesses, Andy owns a tech firm developing apps for gyms; it was a natural extension from creating a nutritional tool for Snap and 9Round members “because no one was doing it”.

“That’s what we use for our six-week challenges, it’s how we onboard members. My vision is for it to be the best loyalty system in fitness that matches any loyalty program,” he says.

“I always saw myself as having a portfolio of things that interest me. I always knew that would be the case. Fitness and gyms became my bread and butter and I understood it the most. But I always envisioned life beyond club management. I used to hate my life governed by the staffing hours of the club and then I realised it was just a stepping stone to other things. I liked the idea of flying around, opening gyms with other people. It’s a lot of hard work, and it’s about seizing opportunities. It allows me to live the lifestyle I wanted.

“I’ve been very fortunate. In another role I would not have been able to do the things I’ve done, open clubs while in a corporate job, innovate the things I see are needed, and be creative. That’s what I tell a lot of young guys in the business – I’m no different from anyone, I took the opportunities.”

BEING A FRANCHISEE CEO Andy readily admits the leap into a CEO role was a plunge into the unknown. And it happened because he sold himself as a fresh-faced, cheaper alternative to a more experienced hire, with a proviso that if he wasn’t up to the job after three months, he’d call it quits.

“I did not have the skill set,” he confesses now. “But when you talk like that, you have to back it up and learn really quickly.”

To ensure he did a great job for the first three months Andy

FEB/APR 2020 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

Best seven tips from the top

focused on listening to franchisees and staff.

“Then I became a student of business. If I was not working, I was studying. I can recognise when I need to improve and I’m not ashamed to ask for help.”

Of course, as a franchisee at the same time as being CEO, Andy was in an exceptional position.

“I paid the same fees. I had the same pain points. Whenever I tried new things, I tried them in my franchise first. I put my own money into it before I rolled it out. It meant I could speak on the same level to other franchisees because I had taken the same risks, faced the same interruptions to business. For me it was easy to understand the problems and the franchisees like that.”

He is adamant, though, that he never let his own franchise impede corporate decisions, working on the principle that company success has to be good for franchisees.

“I also understand corporate has to make money through franchisees as well. Some franchisees don’t quite get that. It’s the brand’s job to ensure the business works but it has to be profitable for the company.”

Andy Peat shares his personal perspective on achieving in life.

1. Back yourself.

2. You get a lot further if people just genuinely like you. I like people, I like to have fun. So be a likable, teachable person.

3. Be adaptable.

4. Be good to your word so that your word means something.

5. Don’t take things personally.

6. Don’t make assumptions.

7. Be a student of life.

THE JOYS OF FRANCHISING While he admits franchising has its challenges, he’s an advocate for a business model that provides easy access to business opportunities.

“I think that when you open your own business, it is actually very taxing to do some of the simple things, find a name, design a logo, and when you have a question finding someone who charges you $150 an hour to give an answer.”

What he observes, and what he has helped to develop at Snap, as a franchisee and as a corporate leader, is the provision of a skill set that few individuals have as new business owners.

“We teach them and groom them; franchisees’ success is our success. When they are doing well we celebrate. If they are not doing well, we do everything in our power to turn it around.

“Nothing gives me more joy than younger franchisees, or someone starting out as club manager, as a personal trainer, owning their own club. That’s what keeps me in it.

“We developed a mentoring program we’ve just launched. We financed an employee into his own gym. I needed a good operator, he didn’t have the funds. Now he’s building an awesome business for him and his family, and he’s done 100 times better than we could do as corporates.” n

Read the résumé

Andy Peat has been at Lift Brands for 10 years. Here’s a quick CV …

1. Club manager at Snap Fitness Papanui 2. Multi-unit franchisee 3. National sales manager 4. CEO Lift Australia 5. CEO Lift NZ 6. Chief operating officer AU/NZ

FEB/APR 2020 | 74 | WWW.FRANCHISEBUSINESS.COM.AU

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Learn more at www.signwave.com.au/franchise-opportunities

LEADERSHIP

DREAM CATCHER

A big dream starts with a cup of coffee for this ambitious franchisee and family man.

A

A 10 year stint in retail, 12-hour days, sometimes seven days a week, was beginning to take its toll on South African Werner van Heerden. Jumping at the opportunity to leave behind the restrictions of the job, Werner moved to Indonesia before he and his wife decided to settle in Australia.

That was the catalyst for Werner to decide to do something for himself. So he took a business management course and started looking for work.

One of the rules of engagement that Werner imposed on himself was a five-day working week that would give him weekends off.

And proving that sometimes who you know really does count, he came across a business opportunity that was going to set him on the path to achieving his dream.

“I discovered Xpresso Mobile through friends of friends of friends,” he explains.

“At the time I was researching the benefits of buying a franchise or setting up my own business. I know about business but it’s done a little bit differently here in Australia, so buying a franchise made sense to me.”

Werner was looking for more daily variety, too.

“In the retail industry I felt I was stuck in one place, either an office or a store, so I was looking for a mobile business.”

And to top it off, Werner admits to being a real people person.

“I love interacting with people, and this franchise gives me the opportunity to interact with a lot of people the whole day.”

He has been his own boss for just over two years now, and is fulfilling his dream of gaining more family time.

“We are blessed to have three children, aged four, two and seven months.

They keep us up at night, it’s full on at the moment, but this business works nicely as I start quite early. I start at 6 am and I am home at the latest by 2 pm. All my admin is done by 3 pm, and then the afternoons are very open to spend time with the kids.”

He’s even managed to find a way around the big challenge for all one-man businesses – taking a holiday.

Werner van Heerden

“It is difficult because if I don’t work, I don’t get paid. But most of my customers take holidays over the Christmas period and I take about three weeks off then.”

FRANCHISING DELIVERS FLEXIBILITY Werner is loving the opportunities provided by operating an Xpresso Mobile Café business. “I can choose my own hours, when I want to work, it’s much more flexible than working for a manager or a CEO.” He’s a big fan of the support that’s provided by the franchisor, too. “If there are any problems, the solutions have already been thought of, so I don’t have to reinvent the wheel, I can lean on them,” he explains.

And he’s ambitious to keep developing his business skills and build a bigger future for the family.

“My ultimate dream is where I can establish a business where all family members can be involved in some way.

That’s the main goal. The goal will be not just one franchise but several businesses that interact with each other.

“Xpresso Mobile Café is a stepping stone, it’s helped me so much. But I want to grow. I want to have my own franchise.

I’m planning to expand my empire slowly.

You have to dream big.” n

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What the franchisor says…

“Werner's passion is his family. He uses our business model to be able to fulfill his dream of spending more time with his young family.

He's passionate about the brand, is a great operator but, again, uses the model to generate an income commensurate with the effort he puts in and still gets home by 2pm to put his ‘dad’ hat on.”

Jonathan Payne, Xpresso Mobile Café

Three reasons to choose Xpresso Mobile Café 1. Work the hours you want; no mandatory weekends 2. Get on the road; you’re not stuck in an office or retail store 3. Spend time engaging with customers, not overloaded with administration

LEADERSHIP

FAST FORWARD

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Sandwich Chefs, famous for its classic 14-hour slow roasted pork and beef rolls, is launching in service stations around Australia.

he food franchise chain has opened its first restaurant in Northam, Western Australia in partnership with Fresh Trading Co. The partners aim to roll out 14 stores this year.

Inside Franchise Business spoke with Sandwich Chefs national marketing manager Ollie Mann about the expansion.

WHY SERVICE STATIONS? We recognised a need to diversify the portfolio a little, and the brand offering.

We’re in 53 shopping centres across the country and even in the current economic climate they are great stores. We have shopping centre sites, kiosks, and inline stores. But we want to offer premium quality food at all sorts of locations.

Others are moving into service stations, GYG (Guzman Y Guzman) for instance, and service stations are now becoming places to grab a coffee.

We want to try and maintain the same product. We’ve already introduced a new time period, but for the service stations

the breakfast menu has been diversified.

It’s something we can trial and test, and then roll out in other stores.

WHY FRESH TRADING CO? It’s a pretty ambitious business and we share the same sort of vision, to be an honest, transparent brand, offering premium quality.

We’re trying to work out a real partnership. Typically a customer filling up goes inside and is then met with a couple of brands where they can order, and it’s all treated as two separate entities. With Fresh Trading Co, the customer might redeem points at Sandwich Chefs.

WHAT ABOUT TECHNOLOGY? We’ve adopted technology early with online ordering and delivery. Online ordering in our stores now is primarily a catering offer but in the future service station customers will be able to order at the pump and their food will be ready. It’s a time pressured environment and our product is a slow roast, so we have to try and reduce the time.

HOW WILL YOU DISTINGUISH THE BRAND FROM OTHER GRAB AND GO OPTIONS? Focusing on trying to build brand trust and loyalty. It will be seamless for the customer.

The goal is to get them wanting to fill up at Fresh Trading because they know Sandwich Chefs is there. We’re looking at a potential loyalty card. We’ll be participating in the same marketing campaigns.

IN THE NEXT TWO YEARS...

We’ll definitely continue into shopping centres, we’re in a mix of A and B grade centres. We’ll keep refining the shopping centre model so it works.

In two years we’ll see much bigger regional expansion; right now Wagga is our number one store.

All the stores will have a brand refresh, which we’ve already started. We will expand the service station footprint and drive-through, and potentially the high street.

This is rapid expansion, the fire we need to grow the brand. n

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LEADERSHIP

A real gem Looking for a stylish, boutique franchise? This growing New Zealand business could offer a sparkling opportunity.

By Sarah Stowe

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uying a life-celebrating piece of jewellery is a significant event. Imagine a business that offers bespoke rings to suit any taste and any occasion – without a jaw-dropping price tag.

Well, that’s how Polished Diamonds founder Daniel Joines started the New Zealand-based business 15 years ago.

Ready to pop the question to his longterm partner, Joines was frustrated at the lack of variety in engagement rings and set up to create a business delivering customised jewellery. He saw an opportunity to design and accurately size rings and gemstones and turned to computer aided design (CAD) for the tools to achieve this effectively and at reasonable costs.

Customers can choose from a portfolio of about 300 prototype ring designs held instore or bring their own inspiration to be translated into a bespoke ring.

“There are endless design choices,” Joines points out. “We can bring up a design in a CAD model to see how it looks at the desk and while sitting there can add diamonds to the band, change the figure size, change the ring to rose gold, for instance.”

Joines is confident in the product. “It’s proportionally perfect, the world’s most accurate copy, and we can produce it at extremely good value.”

Polished Diamonds sources directly from diamond cutters so it has access to a diamond pool with a net value of about $7.5 billion without the commensurate financial overheads.

It avoids conflict diamonds by sourcing from BHP, from Rio Tinto, and the Russian state mining company.

“These large mining firms are listed on stock exchanges so dealing with diamond roughs by a corporate company ensures the diamonds are mined in a way that is ethical,” says Joines.

A local supply chain in New South Wales will cast, set and finish each gemstone ring and ship to stores across Australia.

The business also offers remodelling and resizing through its contractor jewellery workshop.

“We do a lot of resizing. We have a cool MRI scanning system, can put in a ring, produce a perfect digital imprint and ensure it’s the same.”

Plans to introduce an artificial intelligence tool are underway with an expected launch in autumn 2020.

WHAT FRANCHISEES NEED

With the technical design skills already built in to the operation, franchisees don’t need to bring any practical design talent to the business. Rather they need sales and marketing abilities to develop a social media following, do their own marketing and develop their brand.

While the design and ordering process is high tech, the ambience of a Polished Diamonds outlet is far from minimal.

Franchisees operate from a small design studio with a video screen, and a display cabinet and baroque mirror that set a luxurious tone.

What started out as a small retail concept in Christchurch, New Zealand, today operates online across 13 countries and has plans to expand its bricksand-mortar stores yet further.

Joines says “We’ve won best retail category at retail awards. The business works extremely well. We have a huge amount of intellectual property and know-how based in small Christchurch and we replicated that in the slightly bigger Auckland. Now we want to

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replicate that into slightly bigger cities, Sydney, Melbourne, Brisbane.”

The first foray into franchising was with an Auckland store less than a year ago. Now attention has turned to the Australian market with Joines seeking business-minded and marketing-savvy franchisees to run with the opportunity.

Joines says the first Australian franchisee will have the national rights until further franchisees come on board.

So if the launch franchise is based in Sydney, the franchisee can operate Australia-wide. If the second franchisee is Melbourne-based, they will take over the rights to Victoria from the Sydney franchisee.

Location matters a little, but this is essentially a destination business.

Typically a CBD location in a mall environment done “in a classy way” is ideal, says Joines.

The $50,000 franchise fee covers legal documentation and training costs.

“I want franchisees to feel really confident. And I’ll be there to support them.

I’m not selling to anyone, I want someone with good business acumen and a spring in their step.” n

Zarraffa’s currently has almost 90 stores across Queensland, Northern NSW and WA. The predominantly franchised stores are made up of traditional shopping centre and strip mall locations, with a significant focus moving forward on opening convenient drive thru sites.

The company’s major markets include the Gold Coast, Brisbane, Western Australia and regional Queensland including Toowoomba, Sunshine Coast, Bundaberg, Hervey Bay, Rockhampton, Townsville and Cairns. A wide range of locations and opportunities are available across regional QLD, NSW, WA with potential for sites in VIC and New Zealand.

Zarraffa’s Coffee roasts and blends all of its coffee on a weekly basis, and delivers it fresh to all stores.

The national head office doubles as a warehouse roasting facility, producing awardwinning blends, and in late 2018 relocated to a $12.5 million, 4.5-hectare site, located in the heart of the Gold Coast / Brisbane corridor.

We are currently seeking Franchisees for these existing stores and new developments. Don’t miss your opportunity to be a part of this dynamic and rapidly growing organisation.

Whatever your background, a passion for coffee is what draws franchisees to our Aussie-owned business.

Join the growing network of almost 90 stores with opportunities now available in NSW, regional QLD and WA. For more details, go to zarraffas.com/franchising 124 Distillery Road, Eagleby QLD 4207 07 5500 0800 07 5500 0900 franchise@zarraffas.com

zarraffas.com

LEADERSHIP

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A DAY IN THE LIFE OF

PHIL COLBURN How does this award-winning Poolwerx business development manager spend his working day covering the Brisbane South and Far North Queensland region?

How do you start your day?

Before I head out into the field, I start my day by reviewing emails and the day’s agenda before collating a ‘To Do’ list to achieve throughout the day.

How do you measure the success of your role?

If the franchise partner is successful and achieving their KPIs and targets, then I’ve done my job well. As a business, Poolwerx’s number one KPI is franchise partner profitability.

Can you briefly describe a typical day at work?

Each day I set an agenda for those franchise partners I’m scheduled to visit in my area. These visits can take three to four hours depending on their requirements, which can cover anything from cash flow, profits, sales opportunities or marketing initiatives. Because of this, no two days are the same and can change quickly depending on the time of year.

I finish each day by creating reports on my meetings and providing an update to those franchise partners I’ve met.

Lastly, I then prep for the following day.

What do you enjoy most about the job?

We work with a terrific network of franchise partners, and it’s very rewarding watching their businesses grow and seeing their goals achieved.

What do you do in your job that influences franchisees?

My role is to provide advice and coaching to our franchise partners and help their businesses succeed. I’m also available to provide support and encouragement, bridging the gap between the Poolwerx support centre, suppliers and the local businesses. An example of this is seeing those businesses in my area grow exponentially. In the past two years I’ve had franchise partners grow their revenue by two to three times previous years’, which has enabled them to invest in new stores, more vans and refurbishments.

What are the biggest challenges of the job?

Every business has varying needs and every franchise partner is different, so I need to take a distinct approach depending on personalities and experience. Overall, it’s about understanding the needs of our individual franchise partners and how I can best support them.

Support is different for different people. It could be a sounding board to move the business to the next level or it could be doing cash flows to maximise profit.

Other facets of the support and coaching could be clarity on a quote to get the best return or assisting with staff issues. And often this support extends outside of business issues. It could be support for personal issues such as, ‘My mum has had a heart attack and has been rushed to the hospital – what do I do?’

How do you keep yourself motivated?

Motivation for me comes by helping our franchisees achieve their success, even if those are small wins along the way to their bigger goals.

What's the best thing about working for Poolwerx?

The people, career opportunities and working with one of Australia’s most successful franchise networks. The dedication to our franchise partners is second to none and very inspiring.

What one thing about you or your job would surprise people?

I captained Queensland in Soccer for the Under 16s team and am still playing!

Support is different for different people. It could be a sounding board to move the business to the next level or it could be doing cash flows to maximise profit.

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SPECIAL FEATURE

WHAT’S THE BEST FRANCHISE TO BUY? Find the perfect franchise that will set you up for a successful future.

A

n estimated 1100 brands operate in the Australian franchise sector. That’s a hefty number to choose from when you’re considering how best to invest your time, money and energy. So where do you start?

Well, that’s what Inside Franchise Business asked two industry experts to consider.

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WHO’S WHO?

Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for more than 20 years at franchisee, franchisor and advisor level. He advises both potential and existing franchisors and franchisees, and conducts franchise education programs throughout Australia.

There is no one-size-fits-all franchise that is best for everyone. With more than 1100 franchises in Australia, potential franchisees are spoilt for choice, but often choose franchises they love based on their experiences as a customer of that brand.

While this approach means the franchisee brings a lot of passion to the brand, that doesn’t necessarily mean they will be successful, or that the franchise is the best fit for the franchisee, particularly where their perception of the brand from a customer’s perspective turns out to be radically different from the reality of operating such a business.

Where potential franchisees allow

their franchise investment decision-making to be driven by brands they are passionate about, they can easily overlook proper due diligence to ensure that the investment will stack up as a viable business.

Equally, potential franchisees should be wary of getting out of their depth at the outset by investing in a business with money they can’t afford to lose. Any business is a risk, and while franchising reduces that risk, it doesn’t eliminate it altogether. People who invest too much too soon with too little due diligence and business planning are all too likely to fail – franchise or not.

5 CRUCIAL QUESTIONS Ask yourself, what is the best franchise for me and my family at this point in our lives given our lifestyle and income expectations?

1. What would you like to do and

can see yourself doing every day?

2. Will your family support your in-

vestment decision and, if needed, work in the business with you?

3. Are you prepared to commit

yourself to a business for the five to 10 years necessary to be truly successful? If you’ve changed your job every two to three years since you entered the workforce, are you really likely to stick with a business between three and five times longer than your longest job?

4. If you’ve enjoyed a nice four-

week holiday every year as an

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employee, you’ll need to lower your expectations when you become a business owner, as the reality of annual holidays gets substantially shortened or reduced to nothing for the self-employed – certainly in the first few years of operating their business.

5. Nobody buys a business or a

franchise to take a pay cut, and yet this can often be the reality for wage or salary-earners who leave the workforce to operate their own business.

The reality of self-employment is that you – the boss – gets paid last after your creditors and staff. You might find that the first year or two are very lean, and you won’t be able to match or exceed your previous income as an employee in this time. Are you really prepared for that?

SPECIAL FEATURE

WHAT DOES THE BEST FRANCHISE LOOK LIKE? WHO’S WHO?

Corina Vucic is the director of FC Business Solutions. With over 20 years in the franchise industry, and extensive operational and management experience, she works closely with leaders to take their business to the next level. Whatever their goals, Corina coaches, mentors and supports business owners and executives to maximise success and minimise risk for long-term business prosperity and security.

People buy a franchised business because of the reassurance it provides to what is essentially a small business owner. They want the comfort of a network of like-minded people facing similar experiences. They want to know that there’s someone competent guiding the mothership, protecting their back and exploring all possible avenues to improve the franchise offering.

So how can you find all this in a business? Here’s what to look for as you do your due diligence on various franchise operations ...

1. Weekly email updates – does the franchisor include new marketing, proposed training, changes to standard documentation, planned events?

2. Regularly scheduled liaison visits by performance coaches. From an annual meeting to review and establish business plans, to catch-ups when financial reporting shows a downturn, to monthly phone calls. This program catches problems early and establishes a relationship of trust between the franchisee and performance coach.

3. An intensive care program for franchisees who do end up facing business or personal difficulties.

4. Effective head office communication.

Are there phone calls or emails from in-house experts in marketing or human resources, for instance, to talk about new initiatives or changes to processes?

5. Brand pride. Conferences and awards nights can help create franchisees who are proud of the brand.

7. A franchisor utilising communication technology such as Zoom, Hangout and video conferencing to hold forums and provide avenues for open dialogue.

8. Over delivering, under-promising.

Talk to existing franchisees to find out if they receive the high level of support promised by the franchisor. For instance, if a new operations manual is scheduled, has it been delivered? When you are in

the discussion phase, does the franchisor go over your proposed finances to make sure they are realistic?

9. A strong feedback process. Ask your franchisor, and the franchisees too, how feedback is garnered, and how the business responds to the influencers among the franchisees.

10. Transparency between franchisor and franchisee is crucial. How often does the franchisor share his or her vision with franchisees? Information about marketing funds, adopting innovative practices and adhering to benchmarking are all things that can ruffle feathers if they are not appropriately communicated.

11. Skilled team leaders. Someone who has succeeded in the industry isn’t always a great choice as a mentor and motivator so it’s worth finding out what your potential franchisor looks for in experience and personality when recruiting support staff.

12. Problem solving. What do franchisees in the business think about the corporate team? Do they listen and not judge? Do they act and solve problems?

Franchising is often juggling diverse personalities, fluctuating marketplaces and products. But strong systems, twoway communication and an agile, flexible approach can help build success stories.

Which franchise should you buy? One that gives you direction, innovation and great support. n

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Be a game changer and join our network as a successful franchisee, it's easier than you think!

Australia’s favourite childhood development program continues its expansion nationwide due to a HUGE demand for our programs.

NEW franchise zones now available Soccajoeys is Australia’s NUMBER ONE childhood development soccer franchise. As an industry leader our proven systems and dedicated franchisee support means that you’ll have a winning team by your side every step of the way. You’ll also be earning more thanks to our 8 unique revenue streams.

As a new Soccajoeys Franchise Partner you’ll be joining our existing team of franchisees who operate in 24 territories nationwide and who deliver our programs to over 6,000 children on a weekly basis.

YOUR SOCCAJOEYS FRANCHISE:

• Low set-up costs - Owner operated and investor managed options available • No experience necessary - Kickstart your new career with unparalleled support • Multiple revenue streams - Your ticket to financial freedom • Large scale operating territory with huge customer base Strategically selected to compliment your franchise • Access to our Mentorship Program - We take the stress out of launching a new business • Complimentary flights to Sydney Head Office We make onboarding easy

If you’re ready to make a positive impact in your community and kickstart a successful business, contact our Franchise Team today 1300 781 735 or info@soccajoeys.com

www.soccajoeys.com.au

SPOTLIGHT: FOOD

NOT JUST A SUPER-FAD Who would have thought beetroot and berries were the way of the future?

By Nick Hall

N

owadays, it’s more than just elite athletes searching for that extra edge. From highpowered executives to working mums, anyone and everyone is hunting down a healthy lifestyle, and superfood cafes are more than happy to accommodate.

When the term “superfood” first came into the Aussie lexicon, nutritionists were spruiking the health benefits of antioxidants, moderate fat and fibre. It was marketing genius.

Taking the often bland and much maligned fruit, nut and fish diet and rebranding it as a healthy, fun and almost supernatural offering broke new ground, and, coupled with an emerging health consciousness, the culture took hold.

But superfood was more than just a clever piece of promotion.

The name was given to foods that contain a number of high-value nutrients, aimed at improving overall wellbeing, and despite its good-natured approach, the term didn’t come without its critics.

“One can hardly open a newspaper or magazine without coming across a list of the top superfoods you should be eating, or an article debunking the entire premise of them,” University of Adelaide PhD candidate Jessica Loyer says.

“But superfood consumers are not as naive as one might think. Most express scepticism towards superfood health claims and recognise that they are being sold a romantic image. However, they are happy to succumb to a bit of magical thinking and eat superfoods as a sort of extra insurance, because they believe that they might help and probably can’t hurt.”

Loyer’s observation rings true.

Flashback to the early 2010s, at the peak of a kale craze, and you can recall cafes and chains rushing to show off their nutritional credentials. An explosion of goji berries, blueberries, beans and nuts seemingly hit overnight.

It led to a surplus of green smoothies and chia seed puddings, but few brands could get the mix of healthy, hearty and “happy to fork over $12 for a smoothie” market right.

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The premium product offered an interesting conundrum for cafe chains. On one hand, health-conscious consumers were becoming increasingly eager to try these so-called superfoods, and were prepared to pay a premium price to boot. On the other, the decision to roll out the new flavours and, more importantly, price points to the traditional cafe menu had the potential to polarise their existing clientele.

Introducing organic, boutique suppliers for just a handful of menu items isn’t cheap, and wastage was a huge problem for those considering the bolt-on superfood addition.

But with growing demand failing to be met, the superfood market was ripe for the picking – it just needed a few businesses to lead the charge.

“We identified that there was a massive spike in the health and wellness, acai and superfood category, and we really wanted to bring that movement to Australia. At the time, there wasn’t really anything like that on the domestic market,” Acai Brothers co-founder Sam Carson says.

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SPOTLIGHT: FOOD

ACAI BROTHERS After charting the success of superfood-specific cafes overseas, Sam and business partner Ben Day set to work on developing a dedicated superfood and acai cafe business, finally landing on the Acai Brothers name in 2014.

The pair were quick to open a tiny 25 square metre cafe in Brisbane’s sleepy outer suburbs. Interest steadily grew and it wasn’t long before the inquiries started flooding in.

“We always had the idea of continuing to grow the venture and 12 months into the Wellington Point store, we had an inquiry from a customer’s brother-in-law saying, ‘How do I own one of these?’”

Sam reveals.

“Four years down the track and we have 21 stores across the country and we are excited to continue growing, both in store count and menu evolution.”

With bowls packed full of fruit and acai, smoothies and specialised sandwiches, Acai Brothers has fast become one of the country’s leading healthy cafe franchises, but it isn’t the only option on the market.

DELICIA ACAI & PROTEIN BAR Down south, former Jiu Jitsu athlete and coach Scott Dempster has been building an acai army of his own. After competing in Brazil, where acai is more of a way of life than a boutique brunch option, Scott fell in love with the South American flavours.

“Being part of the sport and its roots, I have a strong connection to Brazilian culture, acai is obviously a big part of that,” he says. “When I came back to Australia in between tournaments, I hunted around in Adelaide but I couldn’t find anything that was done like it was in Brazil, so I decided I was going to do it myself.”

The entrepreneurial spirit had a grip on Scott, but his objectives were twofold.

More than just offering a healthconscious cuisine, Scott wanted to introduce a format that catered to the emerging and convenience-driven, plantbased market.

“Being a plant-based athlete, it’s difficult for me to get nutritious food on the go. There’s plenty of cafes that do meals, FEB/APR 2020 | 92 | WWW.FRANCHISEBUSINESS.COM.AU

LSRH19-175-FranchisingAd-HalfPage-P.indd 1

16/12/2019 3:10 pm

SPOTLIGHT: FOOD

but you have to sit for 30 minutes, and a lot of people just don’t have that time. For me, I really wanted to do something that incorporates that missing element and offering.”

Focusing on “grab and go” options like acai bowls, coffee, raw treats and protein shakes, Scott whittled his menu down to an easily accessible core offering that could be rolled out across several outlets.

Unlike other chains, the Delicia model was always designed to be franchised, but rather than throwing franchisees in the deep end, Scott wanted to make sure the system worked “I won’t sell, back or promote anything that I haven’t done myself,” he reveals.

“So, I poured my life savings into opening three stores to test what the brand was going to do. I wanted to make sure I had all the answers. That way, when someone else came to me, I knew what to do.”

It’s an ethos the former fighter has carried with him throughout his life, both personally and professionally.

“Being a coach, an athlete and a fighter all my life, I have to have the answers. In a fight, you get confronted with things you can’t run away from; it’s the same in business.”

Fighting the good food fight is proving to be a fruitful endeavour for the superfood entrepreneurs, particularly among a youth audience.

But it’s hardly a surprise.

YOUTH CULTURE Both Acai Brothers and Delicia have built their brands on social media, and in a brunch scene where beauty is in the eye of the iPhone holder, likeability is key.

“It’s all about making sure that our online platform is as powerful as our offline,” Sam says. “Our brand online is sexy and sleek and we need to make sure that the customer gets that same experience instore, it’s a really powerful way to market your brand.”

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join one of australia’s

fastest growing food businesses!

We’re fresh, we’re fast, we’re healthy, but most importantly, we’re family.

With over 75 stores Australia wide and growing, we sure know how to bring authentic, delicious recipes to the plates and mouths of our customers. So if you’re a straight shooter, big hugger, born leader, high flyer or just want to be a part of something special - take the next step forward in your career and join the Roll’d family today.

SPOTLIGHT: FOOD

related to social media posts and engagement. It’s all part of the new era of food retailing, Sam reveals.

“If it isn’t ‘Instagrammable’, don’t send it out. I would rather a staff member take an extra minute to make something look beautiful, than send a product out that may taste great but doesn’t have that aesthetic appeal. At the end of the day, that photo can have so much impact, in either a positive or negative way.”

Sam isn’t alone in his thinking. The evolving nature of healthy eating is seeing more consumers look towards bright and bold for inspiration. The rise of food blogging and the aptly named “click plate” culture has dominated youth culture since the early 2010s. Walk into any trendy cafe in Melbourne and you’re bound to find a pseudo-shoot taking place.

But here in 2020, the tables are turning. It’s no longer just young people weighing into the superfood cafe culture.

“We’re really starting to see older generations trying new things, particularly when their doctors tell them to eat healthy, but we’re also seeing millennials dragging their parents in,” Dempster says.

The Delicia founder reveals that a growing number of baby boomers are starting to buy into the scene, looking for a healthier alternative to their fast-food favourites. But it doesn’t come without a challenge.

“There’s been a definite trend towards

healthy eating and superfoods, but it’s still a tricky space in terms of customer awareness,” he says.

“It’s difficult for people who have been eating pies and sandwiches all their lives to drop 30 years of behaviour.

Humans are creatures of habit, so rewiring that mindset and teaching them what the healthy versions of their favourite foods are is a slow process, but very rewarding.”

NEW VENTURES With consumer education firm on his mind, Dempster is thriving in his franchisor role. Switching fighting for fruit juicing, the Delicia founder has been able to tap into the key pain points for franchisees, and it’s what the brand is doing now that has him most excited.

The chain recently announced two new-format stores, aimed at helping younger entrepreneurs break into the franchise sector.

Hitting the roads in early December was Delicia’s first mobile superfood caravan, alongside a coffee express format launched in the new year.

“We wanted to introduce a coffee trailer that featured an exclusive, limited product offering in a smaller footprint that could be towed behind a car. We’re big on towed over self-propelled, from an environmental perspective, but it’s also a numbers thing. We will always be a low-cost opportunity because we want

In a fight, you get confronted with things you can’t run away from; it’s the same in business.

FEB/APR 2020 | 96 | WWW.FRANCHISEBUSINESS.COM.AU

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SPOTLIGHT: FOOD everyone to be able to open their own business.”

The acai and superfood bar has always had a firm grip on sustainable and affordable operations. Since launching, Delicia has employed a “planet over profit, people over numbers” ethos, which has seen the brand adopt an innovative approach to fitout.

Dempster reveals that while the new mobile models feature a significantly lower entry point, a bricks-and-mortar outlet was still an affordable $100,000 opportunity, doors open.

“We do this through sustainable fitouts, where we use a lot of recycled materials,” he says.

“Additionally, the franchise fee is very low, and we do that as a way of showing that we’re in business together. My business is having stores open, not selling franchises and sailing into the sunset.”

It’s a similar story for Acai Brothers, who launched their inaugural mobile model this year.

“We get so many inquiries for catering, whether it be birthdays, weddings, fetes, sporting events, it’s amazing. Gone are the days where you go to a kids’ sporting match and chow down on a sausage roll or pie; people really want something healthier,” Sam says.

The new Acai Brothers mobile van, alongside an additional small format store, has been specifically designed with a youth consumer in mind.

“We’ve really seen a shift in business ownership, with more entrepreneurs sub-25 wanting to be part of this business beast, but perhaps don’t have the industry education or financial knowledge,” Sam says.

“For us, it was a case of ‘How do we appeal to someone who is younger, that wants to be a small business owner, but doesn’t have the capacity to get a $300,000 business loan?’ That was really the basis for developing these options; a cheaper model that extends to our target market.”

Sam should know. The Acai Brothers co-founder is a former franchisee himself, starting out his careers as a Snap Fitness gym owner. It’s precisely this experience that has helped him to develop his own system of operation.

“Benny and I have been through the hard slog, we’ve done independent business and franchised business so we know the pain points and benefits,” he says.

“There’s a stigma around franchising and franchisors that we’re working to flip. We want to be there for our franchisees, not every franchisor is out to get you. It’s an equation that we need to get right.”

FAD V FUTURE-PROOF

While a dependence on delicious and nutritious gave the brands their start, an understanding of the key target market is helping both Delicia and Acai Brothers stay atop the often-competitive health food market.

But despite their success, the question still lingers. Is acai the future of healthy fast-food, or just the flavour of the week?

“We always talk about the ‘1 per centers’; and a big part of that is innovation,” Sam reveals. “We are constantly asking ourselves how we can make sure our menu offering is spicy, always different and inviting for customers.”

The Acai Brothers co-founder believes the industry is on the precipice of a great transition, with generational change leading the charge.

“People have such a different outlook on life now, they’re more interested in bio-hacking their world and living longer to be there for their kids. They’re more engaged with the brand and they’ve turned away from the chocolate shakes in search of healthier ingredients.

“Our stores are busier year on year, we’ve seen sales increase by 15 per cent, highlighting that Australians are becoming more educated and open to knowing what superfoods are.” n FEB/APR 2020 | 98 | WWW.FRANCHISEBUSINESS.COM.AU

SPOTLIGHT: FOOD

MEXICAN WAVE

It’s a fast-food fiesta out there.

By Nick Hall

A

ustralia is in the midst of an all-out Mexican stand-off, with the nation’s top Tex-Mex outlets battling it out to be numero uno. But the local market wasn’t always so taco crazy.

While the US has always had a healthy obsession with flavours from south of the border, Australia has been slow to take up the offer.

In fact, just five years ago, you would have been hard-pressed to find a Mexican outlet that offered affordable, fast and flavoursome fare Down Under.

Some independents, largely operated by Mexican or Hispanic expats, were able to crack the domestic fast-food market, which was for years dominated by burgers and pizza. But on the franchise front, Aussie consumers were, by and large, still on the fence when it came to Mexican food.

Even Taco Bell, the booming US chain, backed by megafranchisor YUM! Brands failed to hit the mark here, not once but twice!

While Aussies were cautiously curious, a storm was certainly brewing, and as it has a habit of doing, the nation gradually cottoned on to what was happening overseas, taking Tex-Mex inspiration from our US counterparts.

The global success of Mexicaninspired franchise chains such as Chipotle and Del Taco blurred the lines between westernised fast-food and the iconic South American grill. Couple that with a generational change that saw more Aussies open to trying new things, and slowly the Mexican ball started rolling.

Flash-forward to 2020, and Mexican-inspired chains aren’t just featuring on the franchise market, they are driving it. So who are the big players making moves on the Mexican market?

TACO BELL Third-time really is the charm for iconic US franchise Taco Bell. Two failed starts in Australia, including a high-profile exit in the late '90s, hampered growth for the Tex-Mex giant, however a surge in American fast food has handed Taco Bell a new lease on life.

The chain kick-started its third Aussie incarnation in Brisbane in 2017, but it wasn’t all balloons and FEB/APR 2020 | 100 | WWW.FRANCHISEBUSINESS.COM.AU

streamers. Having learned from its previous failings, Taco Bell, in partnership with KFC operator Collins Foods, issued a soft launch, with little promotion to generate appeal.

Instead, the brand relied on word of mouth to get the message out, and nearly three years and close to 10 restaurants later it seems the strategy has paid off.

“We really came at it this time with the intention of making sure we laid a really solid foundation,” Taco Bell Asia Pacific managing director Ankush Tuli says.

“That led to some exciting growth, we found the perfect partners in Brisbane and that success gave us the confidence to expand into other areas.”

That second run of expansion finally kicked off in early December 2019 when, alongside operator Restaurant Brands, Taco Bell unveiled the first of its outlets in NSW. The Jesmond site was carefully planned and meticulously curated, providing locals with a taste of things to come. From open-air kitchens to USB charging stations and kiosk ordering, Taco Bell’s Aussie approach was a FEB/APR 2020 | 101 | WWW.FRANCHISEBUSINESS.COM.AU

SPOTLIGHT: FOOD

direct reflection of the chain’s US heritage.

“Our fans have been appealing for us to get down to Melbourne and Sydney since we arrived in Australia, so we’re delighted to now be able to answer those requests,” Tuli says.

“Taco Bell’s unique offering of Mexicaninspired food has really resonated with the Australian public, and our unique positioning as a culture-centric, lifestyle brand, where we showcase the social experience of food, is sinking in.”

A Blacktown restaurant followed quickly after, bringing Taco Bell’s NSW sites to two, but that was just the start for the US mega-chain. With an estimated $65 million commitment from partner Restaurant Brands, it won’t be long before you see the iconic purple bell on every corner.

MAD MEX It’s a similar story for Aussie-born business Mad Mex. After over a decade on the quick service restaurant (QSR) scene, the chain is breaking the shackles of the domestic market in search of greener pastures.

In 2018, Singapore-based chicken chain

4Fingers acquired a 50 per cent stake in the company, signalling that growth across both Australia and Asia was on the cards.

Twelve months on, and Mad Mex is ticking off goals as it goes. A new repositioning strategy, the brand’s first in 10 years, solidified Mad Mex as a household name in healthy fast-food operation. The “Fresh Food for Life” update showcased the chain’s dedication to healthy flavours and natural ingredients.

“People want somewhere that provides great choice – that’s inclusive – catering to all tastes and dietary requirements so they can enjoy sharing real food experiences with friends and family. We’re proud to say Mad Mex provides that,” Clovis Young, founder and CEO, says.

With a fresh branding and partner on board, Mad Mex was perfectly placed to take the next step in its journey, launching an inaugural restaurant in Singapore, with Malaysian expansion following soon after.

Young reveals that the region had emerged as a primary target for Mad Mex over the past few years, particularly as the “Fresh Fuel for Life” branding took hold.

“Southeast Asia is in the midst of a food revolution towards healthy eating, and we believe Mad Mex’s healthy and quality positioning will resonate with local

customers. We are very excited by the opportunity and we have big plans for the next five years.”

The Malaysian growth brought Mad Mex’s international territories to four, following successful expansion into New Zealand in 2013, but Young believes that growth is only possible when paired with sales.

At its annual conference in Fiji, the founder and CEO revealed that Mad Mex had secured its biggest year to date, reporting a 6.5 per cent rise in like-for-like sales, following 70 weeks of sales growth in Australia.

“The results our team delivered were truly remarkable and a demonstration of the passion and enthusiasm our restaurant teams have for the food and the brand,” Young says. “The last 12 months have been very tough for retailers, so that performance really is exceptional.”

THE BURRITO BAR It’s a reality Brisbane-born Mexican chain The Burrito Bar knows all too well. Since 2011, the San Francisco-inspired Mexican chain amassed a cult-like following, growing from three restaurants to 31.

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However, when new market challenges hit the scene, times got tough.

“Initially Burrito Bar was caught off-guard by the explosion of Mexican inspired food in the QSR market and by the end of 2017 it was really beginning to hurt,” Burrito Bar general manager Shaun Butcher says.

“In many ways, the brand was unprepared for its own success in the early years and possibly expanded too quickly.

This put substantial pressure on the brand support structure, systems and processes as they tried to keep up.”

But rather than try to maintain their growth, Butcher and the team made the decision to reinforce their foundations, focusing on ensuring existing franchisees remained profitable.

What followed was a full network restructure, with the brand ceasing all expansion and doubling down on its support.

“A strategic rethink and restructure in mid-2018, especially around marketing and our menu offering has led to a situation where our franchise partners now prosper from these former challenges,” Butcher reveals.

The biggest strength for the Bay Areastyle Mexican chain is the full-service 12/16/2019 1:02:14 PM

Taco Bell’s unique offering of Mexicaninspired food has really resonated with the Australian public, and our unique positioning as a culture-centric, lifestyle brand, where we showcase the social experience of food, is sinking in.

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kitchen, which Butcher says enables franchisees to create a large and diverse menu, cook to order and enhance the flavour profiles customers have come to love.

“While we have all the same style of products as the other Mexican restaurants, we also have so much more and some of our most popular products are those that the other Mexicans restaurants do not and cannot provide with their limited kitchens,” he says.

“We are the perfect place for groups of people or families to come for lunch or dinner, knowing that we have something for just about everybody, even those people who may not be familiar or like traditional Mexican food.”

The restructure paid off.

Even as the threat of delivery platform aggregators grows and new competitors enter the market, The Burrito Bar is thriving, with same restaurant year-on-year growth continuing to average over 40 per cent.

But the biggest takeaway for Butcher has been that you can’t rest on your laurels. You must always be willing to try new things.

“While this relaxed casual dining environment is our strength, we recognise

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SPOTLIGHT: SPOTLIGHT:FOOD FOOD that the market is evolving and we will continue evolving in 2020,” he says.

“We are currently planning on building more diversity and flexibility into our brand and model to ensure we can better cater to a full range of people, including takeaway customers, online and app customers, drive-thru customers and third party aggregator customers.”

With the new structure and support processes in place, The Burrito Bar is back on the expansion train. Butcher reveals that the brand is looking to extend its offer interstate, even teasing the notion of international growth.

“Having spent the time since mid-2018 focusing on the sales and profitability of our existing franchise partners, along with optimising our model, support structure,

Guzman y Gomez

Australians should never have to compromise on quality and eating whole real foods, even when it comes to fast food

Burrito Bar

Mad Mex

systems and processes we are confident that 2020 is the year to start focusing on growing restaurant numbers again.

“We will also explore new avenues to provide Burrito Bar to more people through enhancing our online ordering, introducing an app, and evolving our restaurant model to prosper in drive-thru and regional environments.”

GUZMAN Y GOMEZ Not one to be outdone, however, Australia’s largest Mexican franchise Guzman y Gomez also announced a healthy business update last year.

A new “100 per cent clean” menu, three years in the making, saw the chain drop added preservatives, artificial flavours, added colours and unacceptable additives from its food.

“Our menu and processes are constantly evolving in response to global best-practice and, most importantly, FEB/APR 2020 | 105 | WWW.FRANCHISEBUSINESS.COM.AU

customer demand,” Steven Marks, Guzman y Gomez founder and global CEO says.

“After extensive research into consumer attitudes and trends towards food, and ongoing feedback from our guests, it’s become clear that clean is the new healthy.”

The business worked alongside independent nutritionist Sarah Patterson of The Nutrition Providers to develop the new menu, utilising the international food guidelines laid out by the World Health Organisation.

It was a monster undertaking for the Tex-Mex giant. Guzman y Gomez negotiated with several of its existing suppliers to change their products to meet the strict guidelines, in some cases even teaming up with new partners.

“Australians should never have to compromise on quality and eating whole real foods, even when it comes to fast food,” Marks says.

“When you order food, it should be easy to avoid added preservatives, colours,

SPOTLIGHT: FOOD

Taco Bell

artificial flavours and other nasties that offer very little nutritional value.”

No stranger to innovation, it isn’t the first time Guzman y Gomez has redefined the Mexican QSR space. Back in 2017, the chain became the first Australian fast-food outlet to introduce free-range chicken across all stores nationwide. Since then, Guzman y Gomez also rolled out 100 per cent sow stall-free pulled pork and hormone-free beef.

TACO ’BOUT IT Whether it’s traditional tamales or standardised salsa, Australians have grown to love the flavours of Mexico. It may have taken a number of years to get the message through, but the successes of home-grown franchises such as Guzman y Gomez and Mad Mex have solidified the offering as a leading

cuisine in the QSR space.

It’s precisely why big-name international players like Taco Bell are so keen on breaking into the domestic market.

“Today’s consumer is far more ready now, more ready to experiment and hungry to try new cuisines and formats,” Taco Bell Asia Pacific managing director Ankush Tuli says.

And while he agrees, Burrito Bar’s Shaun Butcher suggests the secret to success is adaptability.

“The Australian market is very open to trying new flavours and styles of food. In the Mexican market, we are fortunate to have such a wide variety of flavours, spices, sauces, salsas and rich flavoursome ingredients to work with. This enables us to continue innovating and doing new and exciting things.”

It’s good enough reason to have consumers licking their lips. With palates continually refining and new players entering the market, the Mexican-inspired fast-food space is a spicy business opportunity that is just heating up. n

Burrito Bar

Burrito Bar

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SPOTLIGHT: FOOD

How to buy a

FOOD T franchise RESEARCH

Hungry to invest in a food franchise? Before you bite into this sector, use our easy guide to check out what you need to do to buy yourself a business.

o get it right when you sign up to a franchise you’ll need to take certain preparatory steps. And if you’re choosing a food service business model, there are some industry-specific elements to consider. But don’t worry, we’ve made the job easy.

“I see a lot of people who buy a particular franchise because they love the product or service being delivered – they are a customer and think ‘this food is fantastic’ (assuming it’s a food business) and they imagine they would love to be selling this to customers themselves,” writes Corinne Attard.

“Now, having a great in-demand product is not the only thing to think about. Many restaurants and fast-food places (‘quick service restaurants’ being the industry term) sell delicious food so this is just the first and most obvious requirement.

“Here are my key steps to buying a food franchise.”

counting the customers and estimating their average spend – you can then get a realistic idea of sales. You may need to repeat this over different days.

STEP 1. RESEARCH, RESEARCH, RESEARCH Due diligence is spoken about a lot but what does it involve? You need as much information as possible about the way the business operates and what is going to be involved. The franchisor is one source of information but you need to speak to current and previous franchisees to assess their experience of running this business and obtain the answers you need.

For a food business some specific suggestions are:

Check the supply chain Find out from the franchisor which suppliers you can use for the various ingredients (e.g. soft drinks, coffee, milk, cleaning products) and packaging you’ll need in the business. If you can, find out what prices are charged to franchisees. How does this compare to other suppliers? Make some phone calls to find out. It is a fact of life in franchising that the supplier chosen by the franchisor may not be the cheapest, so ask why if this is the case.

You may be told it is because the franchisor wants to be assured of consistency across the system so a national supplier is preferred; or it could be because the supplier is a related entity to the franchisor, or that there is a rebate or other incentive being paid to the franchisor or into marketing. These are very

Count the customers Try to do a transaction count of the business or one very similar in the network. This means sitting in the business over the day and

Survey the customers Ask the customers about the service they receive, the product and how often they buy from the business.

Collect data Get some hard data on specific items such as your occupancy cost (rent and outgoings as a percentage of sales) and your cost of goods sold (COGS). These ratios are percentages you can then use to compare across systems and specific businesses.

LEGAL Corinne Attard, Holman Webb Lawyers

MEET THE

EXPERTS

These franchise experts know what it takes to be well prepared to invest in a business where food is front and centre.

FEB/APR 2020 | 108 | WWW.FRANCHISEBUSINESS.COM.AU

Corinne is a commercial lawyer with more than 25 years franchising and retail industry experience including as in-house counsel with oversight of more than 350 franchised food outlets. Named as one of the top franchise and business lawyers in Australia annually since 2014 in International Who’s Who of Business Lawyers, Corinne has also been included in Best Lawyers 2019 and 2020.

common reasons and not a reason on their own to reject a system. It is the overall cost to the business compared to the sales generated (and your other expenses) that is critical.

If you are comfortable with the overall level of COGS (that the gross profit margin is sufficient) then prices of particular supplies may be of less importance. If you consider that the supplies are unreasonably inflated compared with similar brands or an independent operation, then walk away and find an alternative.

Investigate labour costs Find out how wages are determined (award or workplace agreement) and what is the level of staff costs you can reasonably expect.

Check fitout and equipment costs How often will you need to refit the premises and what is the likely cost? Can you lease some equipment? What finance options are available?

Assess the competition Analyse the market both locally and nationally. Some food categories such as chicken have brands that are very similar; have you considered these alternatives?

Look at brand lifespan How sustainable is the demand for your products or this brand? Is it a passing fad or something that will continue to be in demand by consumers long term? The advantage of riding a wave will be forgotten when your signature item is no longer in fashion and the customers have disappeared. Is this a brand or business in growth mode or is it declining?

Evaluate delivery options Are you expected to provide delivery or use a third-party delivery supplier such as Uber Eats? If so, how will this affect your profit margin? How do deliveries compare to takeaway and dine-in? Find out which is more profitable.

Understand the leasing situation Who holds the lease: the franchisor or franchisee? There are

pros and cons to both but however it is structured you will be liable for the rent.

STEP 2. Read all the documents You will receive a large bundle of documentation (franchise agreement, disclosure document, lease and other documents) but don’t skip reading them. Note or highlight things you don’t understand or need more information about. Ask to receive the documents as early as possible; drafts or template documents if the final ones will not be ready for a while.

STEP 3. Obtain expert advice You must get good advice from professionals who have experience in these types of businesses and franchising.

This should include accounting and legal advice about the documents, but also consider a leasing consultant if you need to find your own location and negotiate a lease, especially if the franchisor does not offer this expertise.

General business advice about finance and business planning may be available from your accountant or you may need to find someone else with this experience. You need to understand and plan for your eventual exit, such as through sale, and understand how to achieve your objectives.

STEP 4. Sign only when you are ready Never be rushed into anything. It’s a big decision and reputable franchisors want you to be comfortable and they want to make sure you are committed. There are a lot of franchises in the market so be prepared to walk away if you feel pressured.

STEP 5. Second thoughts?

If you do have buyer’s remorse despite taking these steps or there is a sudden change in circumstances you can use the seven-day cooling off period if you have already signed, but if that has passed and is not available, speak to your franchisor. They may have a solution to help you either stay in your new business or to exit.

LEASING Phillip Chapman, Lease1 Phillip is one of Australia’s leading retail industry experts with a specialist focus on the leasing challenges and opportunities faced by tenants in the retail sector.

He is the founder and director of Lease1, an authority on retailer leasing, that provides a tenant-only representation service.

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OPERATIONS Anthony Stahl and Daniel Mesiti, Boost Juice

Multi-unit, multi-award winning franchisees Anthony Stahl and Daniel Mesiti are old hands in the hospitality world. The pair have been franchisees since 2005 and have notched up more than 27 awards. But before running a number of successful Boost Juice franchises the business partners had set up and operated their own cafes.

SPOTLIGHT: FOOD

CHECK THE LEASE “By the time a franchise buyer has sifted through the franchise application, purchase contract and franchise disclosures they can be overloaded with information,” writes Philip Chapman.

“And that’s when important steps in assessing and reviewing lease documents are missed. But leaving the lease to others and assuming everything is fine is like playing Russian roulette with your future livelihood.

“If things go wrong and your defence is ​’I didn’t realise’ or ​’no one told me’ it isn’t going to solve the problem.

“If you think about the process of buying a retail business as the mix to bake a cake then investing in a food franchise is a recipe for a multi-layered gateau.

“First-time franchisees are faced with a long ingredient list but not necessarily a clear set of instructions. So where do you start?

“I recommend starting with the lease, as without premises to trade from the rest doesn’t come in to the mix.”

UNDERSTAND THE LEASE The landlord’s disclosure statement is a formal document designed to set out all the essential terms of the lease and the shopping centre or property.

But it’s important not to confuse this with the mandatory franchisor’s disclosure document – you will need to see the landlord’s disclosure statement, too.

The landlord’s disclosure statement must be reasonably fresh, no more than 12 months old as the information needs to be current and relevant, and the basis from which to start asking questions.

The other important question before you start is: will the lease to be held by you or the franchisor?

If you will hold the lease then the current lease will need to be assigned to you. The seller, or the holder of the lease, is responsible for the application to the landlord. But beware there are requirements to be met which means more paperwork and set time frames to be taken into account.

However, if the lease is to be held by the franchisor then you will need a license agreement approved by the landlord to give you the right to operate the business in the premises.

On the page opposite is a sample of the items you need to be across when purchasing a food franchise.

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7 SIMPLE LEASING TRAPS AND HOW TO AVOID THEM In the lease disclosure statement apart from the key essential items such as term, rent, annual reviews, etc. you need to be across the following important items.

1. LICENSED AREAS

Areas such as seating and storage need to be clearly acknowledged and identified. Find out if the licensed seating is on a footpath controlled by council.

If it is, you need to ensure you have the relevant license, the annual license fees and the term of the license in comparison to the lease.

CAUTION! These seating areas may form a large part of generating the sales of the business, so imagine the effect if the council did not renew the license and the seating was removed?

2. PERMITTED USE

Does the current range of products clearly fall under the permitted use? Are there charges to the permitted use you are seeking to make?

CAUTION! One of the biggest causes of disputes and food business failures is the duplication of product offering in the future, so find out what the intentions are if you don’t have exclusive rights.

3. APPROVAL

Now this is an area that gets overlooked, particularly outside of shopping centres.

Is the premises zoned for this type of business, and does the premises meet all the statutory approvals for health, fire and food services?

CAUTION! If the zoning is incorrect the business is at risk of being shut down.

4. FUTURE REDEVELOPMENT

The landlord disclosure statement should advise if there are any current development applications and you should make further enquiries here.

Look for relocation and demolition clauses in the lease and understand how these may affect you in the future.

CAUTION! A redevelopment you’re not expecting can be disastrous – foot traffic is diverted and trade disrupted.

5. REFURBISHMENT

Does the lease require the tenant to refurbish the premises during the lease? What are the make good requirements at the end of the lease?

CAUTION! Franchisees can be caught out by refurbishment or make good costs.

6. TRADING HOURS

If the business model includes afterhours trading, are you permitted to do so and are there any additional costs to consider?

CAUTION! A great location can turn out to be disastrous if the opening hours limit key trading times.

7. CODES OF CONDUCT

Find out if the landlord adheres to the Casual Mall Licensing and Sales Reporting Codes of Conduct. You need to know whether you have any rights if a pop-up is located next to you by a competitor. Will you be required to report sales figures to the landlord and do the figures they have match the data provided by the vendor or franchisor?

CAUTION! Pop-up stores and kiosks are part of mainstream retailing now but can damage a store’s trading capacity.

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Swimming is a life skill that nearly every parent recognises they need to teach their children from a very early age. In fact, many parents begin swimming lessons when their children are still babies.

If you are keen to find out more and see if you qualify to own your very own Splash Swim School please contact us today for a confidential chat.

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SPECIAL FOCUS

SPOTLIGHT: FOOD

OPERATIONS 8 hot-shot tips from foodie franchisees

Anthony Stahl and Daniel Mesiti own five Boost Juice franchises. Here are their best tips on what to consider before you buy a food franchise.

1. BE READY FOR BOOT-CAMP Make sure you enjoy working with food. It’s simple but important. Working with food means always being on the go, from constant prep to continual cleaning, so make sure you go in with your eyes open.

And cleaning will be a big part of your job!

Dishwashers and cleaning equipment, sanitiser and detergents, mops and buckets go hand in hand with the food industry. Expect to get dirty.

New franchisees we have trained in the past have often shed many kilos within the first few months. Understand that if you’re coming from a corporate role or retail fashion environment, your lifestyle is about to change. Expect 12,000-plus steps per day. It does mean you save at the gym though!

2. CHECK THE DETAILS You’ll also need to understand food safety … preparation, storage, allergens, stock control.

These are all things that will require attention every single day. You will need a level of detail orientation to keep on top of this.

3. UNDERSTAND THE BUSINESS Where are the sales coming from and what time of day is the store busy? Food is a battle of margins, so you need to know how profitable the categories are.

Find out how delivery impacts on margins.

Uber takes up to 35 per cent and can be more than 50 per cent of revenue for some businesses.

You’ll need to know how much labour is required. This will be one of your top two highest expenses along with the cost of goods sold (COGS). This is influenced by when the business trades and when it is actually busy. Food business often involves lots of preparation and food handling and these can be at times when your business may not be trading, so how does this affect your labour costs? Can you open early or close late to help drive sales?

Do you understand the production process

and stress points in delivering great food quickly?

Get to know the cash flow and weekly wages required.

4. EQUIP YOURSELF Food equipment costs can be considerable.

Setting-up costs – kitchens, grease traps, cooling equipment, ice machines, plumbing and fitouts – can add up quickly. So know your numbers.

Search online to find typical prices and check the quality before you purchase either new or used equipment. It’s important to consider where the equipment is made and assembled and how easy and costly it is to access servicing and parts.

5. UNDERSTAND THE CUSTOMERS It's actually important to get along with and like serving your customers, particularly at the start when you should be heavily involved. Get to know what they are looking for and be the backbone of the operation.

Think about how you will market to them.

What promotional strategies will they respond to? How will you build loyalty? For your customers, what is more important: speed, quality or convenience?

6. BE A GREAT TEAM LEADER Understand the team required to deliver this.

The ability to lead a great team is absolutely essential and will make all the difference to your business.

7. PREPARE FOR THE LIFESTYLE Consider the impact of business ownership on your lifestyle, family and friends. The food industry is notorious for long hours that are not family-friendly. Any business owner can feel isolated but add the food service hours involved and this can be amplified. Be aware of this and have a strategy to deal with it.

8. CHASE THE DREAM Get out there and find something you think you could purchase or replicate. Walk the streets in your target area and talk to owners and business brokers. Be proactive in chasing what aligns with your goals of owning a food business. n

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Making Franchise Law

Black and White

Unravelling the Knot With the increasing regulation of franchising, and impending changes to the Franchising Code of Conduct and current review of the unfair contract laws likely to add to the protection and rights of franchisees and their employees, there is a commensurate increase in the risk of being tied up in legal disputes between franchisors and franchisees that are difficult to unravel.

Our commercial litigation and dispute resolution legal team, who have many years of specialist franchising law expertise, and have acted in over 50 franchise dispute mediations in the last three years, employ strategies for clients to manage conflict risks and resolve disputes as quickly as possible with the best possible outcomes. Do not remain tied up with legal disputes.

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PROPERTY PROPERT

HOT PROPERTY On the hunt for a booming business location? Check out these areas on the move.

C

hoosing the right site for your new business is almost as important as the business model itself. A great location can be the gateway to growth, but on the flip side, poor site selection can put an end to your franchise dream before it begins.

Whether it’s fast food or fitness, it’s all about location. Some business models thrive on specific fittings and formats. For instance, smoothie bars and cafes can work well as kiosk concepts in shopping centres, while print and business services providers will tend to fare better in CBD areas.

If you want to get started strongly, it’s critical that you understand not only who your customers are, but where your customers are.

It’s not always an easy premise, and getting the mix right can often take time and money, but the onus is on you to search out the right area and site selection for your specific model. However, with a wealth of new and exciting developments on the horizon, it shouldn’t be too hard to snag a sizzling hot opportunity.

Here are some of the biggest projects on offer for aspiring entrepreneurs to get into.

CHADSTONE SHOPPING CENTRE Chadstone Shopping Centre may have already been regarded as the nation’s premier retail and shopping district, but the Melbourne precinct is set to grow significantly.

In December, property firm Vicinity Centres unveiled a development plan worth a staggering $685 million. Under the project, Chadstone will cop an upgraded fresh food precinct, larger dining terrace, leisure precinct and a vastly expanded luxury retail mall.

“Our customers and community have told us they want more dining and entertainment at Chadstone, so our plans include an extended dining precinct and additional fresh food to match their lifestyle needs,” Chadstone director Fiona Mackenzie says.

The move will add an extra 43,000 square metres of trade, but for prospective franchisees the real opportunity lies in the additional 4300 square metres of traditional retail and 1450 square metres of cafe space.

“We’re combining world-class, experience-led retailing, convenient services, office space and accommodation, all enabled by robust public transport connections,” Mackenzie explains.

The monster development allows cafe and retail concepts to capitalise on Australia’s growing love of luxury brands, leveraging increased foot traffic to drive business. But it isn’t the only Victorian precinct set to score a fresh new look.

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PROPERTY PROPERT

THE DISTRICT Housed in Melbourne’s iconic Docklands area, Market Lane is the latest destination turning heads, but it’s far from a new addition. The fresh-food addition can be found in The District, a premier shopping and lifestyle attraction on the banks of the iconic Yarra River.

Opening in 2008 under the name ‘Harbour Town’, The District was a key feature of the developing inner-city region. However, in 2008, new owner Ashe Morgan revamped the centre, injecting $150 million into a fresh name, fresh identity and transformative repositioning.

Now, over 10 years on, it’s time for another facelift.

A recently announced $70 million redevelopment project kicked off with the opening of a new 9500 square metre fresh-food precinct, titled Market Lane.

“Market Lane represents the cultural diversity of the city we live in, and is convenient, friendly and fresh – it’s a new one-stop shop for foodies right in the heart of Docklands Melbourne,” The District Docklands CEO George Karabatsos says.

Anchored by a Woolworths and Dan Murphy’s, Market Lane is expected to pull a number of new and exciting offerings to the growing region, something the locals are eager to explore.

YAMANTO CENTRAL In the north of the country, soil is being turned on a new sub-regional shopping district, set to deliver 20,000 square metres of retail and dining trade.

Yamanto Central, south-west of Brisbane, is the newest project on the boil, headlining the soon to be completed 25-hectare Yamanto Town Centre development.

Stage one kicked off in November and is being driven by Queensland-based shopping centre owner and manager JMK Retail and development management group DMA Partners.

“Yamanto Central is set to deliver the greater Yamanto district an epicentre with a long-awaited, immersive, social precinct that has been thoughtfully designed to energise the local community to embrace as their own,” JMK Retail general manager Vicki Leavy explains.

It’s a welcome boost to the developing region.

The area is predicted to swell dramatically over the next few years, buoyed by an influx of young families and professionals.

Couple that with an existing trade area of 48,000 unserviced residents and it’s not hard to see why retailers are clambering to get a piece of the opportunity.

“As the catalyst for what the Yamanto Town Centre will grow from, this next-generation sub-regional shopping centre is set to be a hive of activity delivering much needed retail amenity to one of the fastest growing regions of Australia,” Leavy says.

The project is expected to open in early 2021.

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PROPERTYPROPERT

UPSTAIRS TOOMBUL

In Brisbane’s inner-city, developments appear to be springing up daily. However, a first-of-its-kind dining and entertainment district has stolen the spotlight.

In November, Mirvac Retail unveiled UPSTAIRS, an urban playground on the rooftop of the iconic Toombul shopping centre. The $43 million project redefined the traditional notion of retail and entertainment, adding over 4500 square metres of trade and transforming the 51-year-old centre into a revitalised urban offering.

A vibrant, colour-changing neon playground complete with swings and slides highlights a décor that also features chic street-art murals and industrial indoor and outdoor spaces.

“We have utilised our customer insights of our markets – of Nundah and surrounds to curate this unique offer; with a fantastic contemporary, urban vibe, bringing together dining, entertainment and experiences in a sensational, vibrant setting to ensure Toombul remains relevant and dynamic for many more years to come.” Joanna Corrick, portfolio manager, Mirvac Retail says.

“We couldn’t be happier to deliver this project and with such energetic and inspiring retail partners.”

Among them are 10 new dining concepts, offering some of the nation’s most unique and innovative customer experiences.

CASTLE TOWERS Over in Sydney, locals are flocking to a new retail destination on the city's outer suburbs. In December, stage one of a massive redevelopment project for Castle Towers was unveiled to the public, ushering in a new era for the Castle Hills district.

The $180 million lifestyle hub delivered 53 new stores, introducing more than 20 new retailers to the mix, making life more convenient for the centre’s 50,000 daily visitors.

“Recognising and responding to the evolving needs of the Hills district, the new lifestyle hub will offer a best in class selection of brands for our loyal and trusting customers across food and dining, homewares, tech and services, with an improved offering of everyday retail,” centre manager Eddie Paynter says.

On the food side of the equation, the $180 million development also features a bustling new fresh-food and dining precinct.

Design experts Luchetti Krelle carefully created an immersive dining experience with a cocoon-like centralised

spaces, giving shoppers a sense of calm and comfort.

“Our new fresh food precinct will be a destination for the community to shop, taste and interact with each other while the variety of shared seating options that extend beyond the food court will encourage the local community to gather,” Paynter says.

BANKING ON BUSINESS Across the country, developers and communities are sinking millions into revamped and revitalised retail districts.

Added dining precincts and expanded customer experiences are driving growth in new, upcoming and, most excitingly, inexpensive regions.

But regardless of where you plan on opening, the process should be the same.

Have your financial affairs in order, and make sure you understand what you can and can’t afford. Leasing issues can be more than just a headache – they can be a deal-breaker.

Seek advice and be real with your finances. n

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SPOTLIGHT: MOBILE

NEW ROAD RULES

Lower costs, flexible working...what’s not to love about a mobile franchise?

O

ver the last five years, there has been an increase in food vans that are developing mobile dining communities, as opposed to merely catering to convenience culture.

Whether it’s food-based or a service business, there’s plenty of action out on the road.

Becoming your own boss can be an exciting step, and the good news is it can come at an affordable price. The world of mobile business is far more exciting today with the variety of franchises operating in this space, some of them well-known brands.

Recent additions into this marketplace are taking the business model into new areas of success.

LORD OF THE FRIES After 15 years on the Aussie fast-food scene, booming vegan chain Lord of the Fries is going back to its roots. The iconic restaurant business has announced the original Lord of the Fries food truck is set to make a return, and this time, franchisees can get in on the action.

Fans of the brand will remember the chain’s humble beginnings, starting off as a three-person mobile operation, before launching an initial bricks-and-mortar restaurant in Melbourne. And while Lord of the Fries has gone from strength to strength, launching 28 outlets across Australia and New Zealand, a growing demand has sparked a return to the mobile format.

“It’s back to the future really,” co-founder and CEO Mark Koronczyk says. “We thought it was a good time to bring the model back because nowadays there’s just so many opportunities for vans and food trucks. It’s a great way for someone who wants to own a Lord of the Fries to get in a very-low cost rate.”

The new Lord of the Fries food truck is about half the cost of a shopfront restaurant, says Koronczyk but, unlike the early incarnation, the new van is significantly more decked out.

“It will be under $200,000 and that presents a

full turn-key operation,” he explains.

“It also includes all stock on hand and also the money you need for the first few festivals. These are still working numbers, but that’s what we’ve landed on.”

The announcement of the Lord of the Fries food truck follows significant growth in the mobile restaurant movement. “It’s been a huge change,” Koronczyk said. “When we had the van, it was pretty much just us and a few all-purpose vans that sold Chiko rolls and dim sims.”

“We were able to position ourselves as something different through our specialised offering of fries and boutique sauces. We really did stand out – there were huge queues – but the van industry has changed dramatically and become far more hip, more gourmet. You can get any type of cuisine now.”

For aspiring entrepreneurs looking to take up the new Lord of the Fries food truck format, the options are seemingly limitless. Koronczyk revealed the chain has been turning down offers from big-name festivals for years, but with the right mix of aptitude and hard work, the opportunity was ripe for the picking.

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SPOTLIGHT: MOBILE

DELICIA Superfood and protein bar Delicia has taken its brand of health-conscious operation to the next level, launching two innovative, low-cost mobile franchise formats that allow more prospective franchisees to realise their dream of business ownership.

Hitting the roads in early December was Delicia’s first mobile caravan, with two more of the low-cost mobile franchise options soon to launch in its home town

of Adelaide. Scott Dempster, Delicia managing director, said the brand also plans to roll out an Espresso mobile coffee model early in 2020.

“We wanted to introduce a coffee trailer that featured an exclusive, limited product offering in a smaller footprint that could be towed behind a car. We’re big on towed over self-propelled, from an environmental perspective, but it’s also a numbers thing.

We will always be a low-cost opportunity

because we want everyone to be able to open their own business.”

According to Dempster, the caravan model is around $60,000 drive away, with the Espresso coffee trailer at just $50,000.

“I imagine these models will really suit the Monday to Friday, nine-to-fiver who wants to get further ahead. They can get the trailer, work all weekend and pay the investment off in one season.”

ACAI BROTHERS The new Acai Brothers mobile cafe concept is expected to take to the roads within the year and will significantly reduce the entry point for franchisees, meaning more Aussies can buy into the booming healthfood business.

Since launching in 2014, Acai Brothers has grown to 21 stores nationwide, with up to 15 stores planned over the next 18 months.

Sam Carson, director and head of franchise sales and operations, explains why the business is putting the pedal to the metal.

“We get so many inquiries for catering, whether it be birthdays, weddings, fetes, sporting events – it’s amazing. We get asked to go to so many netball events, it’s unbelievable. Gone are the days where

you go to a kids’ sporting match and chow down on a sausage roll or pie. People really want something healthier.”

Over the next six to 12 months the food truck will launch as a stand-alone mobile model, perhaps appealing to younger potential franchisees without the means to get a $300,000 business loan.

The food-truck model comes in at $150,000.

POOLWERX This service-centric outfit performs a large portion of its business out of a van, but that’s not the only option for franchisees. The Poolwerx model features vans and retail stores in its network, and this provides the ambitious franchisee with the option of a career path.

Chief operating officer Nic Brill explains how it works.

“Our traditional model has been to set up the business via mobile with a transition to retail once a critical mass of regular customers and sales has been achieved. In today’s environment, we are finding that simultaneous entry into retail and mobile is a client need and is proving to be a successful business strategy.”

Mobile franchisees can get into business with an investment of $150,000 and join the 400+ mobile service vans operating across more than 350 territories.

“Our approach is to review growth areas in conjunction with our B2B industry associates and pool industry database statistics in order to generate a viable territory size in conjunction with our geographic mapping tools,” says Brill.

There’s plenty of room to grow as Australians install about 20,000 new pools each year.

SUPERGREEN DIRECT A business that has latched onto the power of personal delivery is energy-efficiency retailer SuperGreen Solutions. Backed up by a stacked showroom, the new Direct van service takes the business to the buyer.

“This is the disruptor. Shopping now is on your mobile phone. Five to ten years ago, people were walking down the strip mall, then they moved to a shopping centre, now they are shopping on their phone,” says SuperGreen Solutions franchise CEO Sean Cochrane.

“No one is driving 10kms to go and look at solar power and solar hot water on a Saturday morning. This is an opportunity to converse with your builder and have the products come to you.

“The van displays all of our products – everything that is in that showroom is now in the van. So the van goes to the home show, it goes to the homeowner, it goes to the builder’s display village. We’ve taken the showroom and made it mobile.

“The next step is we found the electrician and solar installer that wants his own van. He doesn’t want a showroom, he wants that identification with the tools. When the bricks-and-mortar retailer sells a Tesla battery, he needs someone to install it, that’s where this model works.”

Cochrane points out there are three different mobile franchises, as well as the one store franchise, or retail hub.

Investing in a store is about $220,000 (depending on fitout) a much heftier cost than the $85,000 fully equipped, drive-away van.

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SPOTLIGHT: MOBILE

CLARK RUBBER The brand’s new low-cost mobile franchise sees Clark Rubber step into the standalone mobile space for the first time as it shakes up its business set-up. Vans are not a new addition to this iconic Aussie retailer but a new mobile-only opportunity offering a far more affordable entry for prospective franchises.

When it launched the new low-cost mobile franchise model a limited introductory offer gave franchise buyers the chance to sign up for just $24,995.

Anthony Grice, Clark Rubber CEO, said that removing the

significant entry point barrier was just one way the brand was committed to supporting franchisees.

“We know that the type of candidate that is interested in this model will be very different than those of our larger format, so by breaking down that barrier to entry we can provide a pathway,” Grice says.

More homeowners and renters are time-poor and happy to outsource their maintenance duties, he says.

Franchisees are supported with national marketing campaigns and local area marketing support which helps drive business in their allocated territory.

New franchisees take on a month of practical training and complete the on-boarding course with a Cert III in Pool Servicing.

5 TIPS IF YOU ARE BUYING A MOBILE FRANCHISE Peter Buckingham, Spectrum Analysis managing director, shares his expert tips on franchise territories…

Most mobile franchisors sell you an area and the main purpose of this is: • To guarantee you the leads that are generated if they have a call centre or a web-based contact system.

• To give you security that all the leads from within your agreed area are coming to you – and not being given to a company operation or some other franchisee, or just being lost in the system.

When buying this business expect that other franchisees will service clients in your area – they may have been requested by the client.

What you want is an agreement that you have the sole right to actively market in the territory. For instance, you are the only one who is allowed to make a cold call, drop a letter into a letterbox or put up a sign in a bus shelter in your area. You can think of many more ideas, but the concept is that you are the active marketer.

So if you are going to invest in a mobile service franchise, what should you be looking for?

1. Has the franchisor got skin in the game, and been prepared to run the mobile franchise they are selling?

Can they show you evidence that it can be operated profitably?

2. There is a defined territory that has been established on a logical basis not a map drawn up by franchisors and franchisees without any research.

3. Is there logic on how many territories can be sold in the market, so that each territory should offer similar opportunity for the franchisee? Whether this is based on number of swimming pools, number of new building permits, total number of people of a certain age group or demographic or numbers of target businesses – there must be some logic, and not the wet finger in the air approach.

4. Make sure the territories are properly defined, preferably on a map showing the boundaries, and backed up by a spreadsheet showing the postcode / suburbs, and whatever relevant data has been used by the franchisor in their decision-making.

5. Make sure in your agreement there is a clear understanding on what is your territory, and there is minimal opportunity for the franchisor to make any alterations throughout the current life of your franchise agreement.

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SPOTLIGHT: LOGISTICS

DELIVERING A DIGITAL DOLLAR

Logistics franchises deliver the goods in a fast-changing and challenging industry.

By Sarah Stowe

L

ogistics and distribution is all about speed and service. But today the sector is under constant pressure to deliver a better service at an even lower cost, suggests Mark McGinley, who heads up CouriersPlease. Here, four franchise leaders in the logistics and distribution space share where they believe change will lead.

CouriersPlease

“Consumers expect choice of where and when they can get a delivery. They want twilight, weekend, four-hour deliveries, they want to be informed where their package is. The one thing they don’t want to do is pay for it.”

The business faces two crucial challenges: 1. Franchisee earning potential becoming increasingly jeopardised in a commoditised e-commerce landscape (e.g. retailers offering free shipping, the need to return products) 2. Urbanisation and the lack of government planning for parcel hubs.

“The strength our business has to tackle these challenges is the ability to ‘transform through partnership’. This means we are leveraging the strengths of businesses who can assist with reducing delivery costs and create a better experience for customers,” says McGinley.

But what is a seamless experience for the customer can be much less so for the courier. The logistics and delivery business is being pulled in opposite directions, with a resulting stretch in profits.

It’s particularly true at courier level. “Historically couriers have done pickups and deliveries. Now with e-commerce there is the rise of residential deliveries. So two things have happened. There are all the problems of redelivery, really low productivity, zoning difficulties, traffic, people not being home and apartments that are hard to access,” McGinley explains.

“Retail value is more or less halved. I’ve seen statistics globally that the cost of logistics is up 17 per cent but retail value is down 4 per cent. But that’s magnified more in Australia where there is a race to the bottom. Consumers expect choice of where and when they can get a delivery. They want twilight, weekend, four-hour deliveries, they want to be informed where their package is.

“The one thing they don’t want to do is pay for it. It’s a double whammy; franchisees are working harder for their dollar.”

The good news is that solutions are on hand at CouriersPlease, which is actively addressing these major concerns to franchise profitability.

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“So what are we doing? We’re investing in technology, we’ve just released a new driver app that can do real-time traffic updates, there is AI [artificial intelligence] attached to it around delivery addresses, route optimisation and prioritisation.”

This means consumers can be kept informed about their parcels in transit, and given delivery alternatives.

CouriersPlease has also partnered with Hubbed, a collection point network of 1700-plus locations such as BP service stations and 7-Eleven stores, which allows franchisees to deliver parcels to secure lockers that can be accessed by the customer 24/7.

“Instead of delivering to 10 addresses we can deliver 10 packages to one spot. It’s an increasing trend and the more savvy consumers are selecting these locations, they are so convenient.”

Additional benefits include a reduction in carbon emissions and an easy, safe parking option for franchisees who would otherwise be delivering to hard-to-access residential addresses like high-rise apartments.

“The partnership is very successful and we’re looking to develop new premium products in a move away from the race to the bottom. We want to focus on a higher yield for franchisees,” he says.

The business is based on a hub-and-spoke model, which provides a centralised delivery and collection spot for franchisees. CouriersPlease has invested millions into automating the traditionally manual sorting process. Newer developments include the introduction of a series of micro hubs where the franchisor brings the freight to franchisees; and leveraging partners facilities, such as Border Express warehousing, is one way to overcome the obstacle of finding appropriate sites.

“We’re on a massive transformation journey to becoming an e-commerce tech company. It’s a different mindset, a different outlook.”

“Australia Post has 80 per cent of the e-commerce market but we’re developing partnerships to compete,” says McGinley.

“Technology and partnerships are what we are trying to develop so we can scale the benefits. It’s just not sustainable to deliver a parcel every 20 minutes.”

Looking ahead, the prospect of a weekend franchise looms for this traditionally business-tobusiness operation.

“We’ll use a different model,” says McGinley.

“We’re working with a range of crowdsourcing companies because you don’t have scale when you launch a new product. We will partner with them, and they can scale up and down [according to demand]. So if we did develop a weekend franchise it would be different.

“I see a time when we will separate small residential economies leaving our franchisees the core pickups and B2B deliveries. There’ll be a time when we will syphon off residential e-commerce deliveries and find different solutions.”

WHY COURIERSPLEASE IS A GOOD OPTION FOR FRANCHISEES The business takes a clear view about franchisee revenue.

“We have a safety net we won’t let them drop below, so if income falls below a certain threshold we top it up.”

The franchisor invests in sales and marketing to help its 140 franchisees and uses its buying power to provide discounted rates on vehicles, tyres and petrol. The financial benefits all return to the franchisee.

“In our business we’re a network, so we’re motivated to make sure all franchisees have to be successful. We all rely on each other.”

Franchisees can increase their delivery run to two or three and build up a partnership model where they are managing the business.

Innovation continues with a software as a service (SaaS) shipping technology called PACK & SEND Live, which enables customers to create consignments, labels, and manifests in bulk from their own premises.

It reportedly seamlessly integrates with a wide range of e-commerce platforms (eBay, Amazon, Magento, Shopify, WooCommerce, etc.).

In addition to improved convenience for customers, the new technology enables franchisees to earn a recurring residual income stream from regular sender e-commerce clients, no matter how big or small.

Paul says investment to capitalise on future trends is crucial. “In looking at trends, you have to predict as best as you can where businesses will spend their money in the future.”

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Pack & Send Michael Paul heads up Pack & Send, a business he founded in 1993.

E-commerce has been a focus for the network for years and in FY2018–19 it achieved record sales. The current financial year saw 12 per cent same-store sales growth through July to October.

Because Pack & Send now both sends and receives, Paul explains, there has been a lift in business.

“We handle both outbound and inbound deliveries which has increased substantially our income growth.

For example, our network acts as an alternate drop-off delivery point for people that buy goods online and we undertake substantially more import delivery jobs for customers.

“In order to capitalise on the rising growth opportunities in e-commerce, we have become a technology-driven logistics company.”

So how does the business maintain a competitive edge? In part it’s through a massive capital investment (more than $5 million) to support the digital strategy, says Paul. “Digital transformation begins and ends with how we think about and engage with customers – with technology on our side.”

As a result, growth is strong and the business agile and flexible. Providing customer solutions has brought in increased revenue and franchisee profits, he says.

NO W !

G IN IS CH AN FR ARE YOU PASSIONATE ABOUT FOOD & COMMUNICATION? WANT TO BE HANDS ON AND RUN YOUR OWN BUSINESS? DO YOU ENJOY BEING PART OF THE NEW FOOD REVOLUTION? WE WANT YOU! FRANCHISING@OGALO.COM.AU

(02) 94381711

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OGALOAUSTRALIA

OGALO_AUSTRALIA

SPOTLIGHT: SPOTLIGHT:LOGISTICS LOGISTICS “We believe the outsourcing of fulfilment services (storage, pick, pack and delivery)

by SMEs will be in very high demand in the future and we are positioning ourselves to be at the forefront of e-commerce fulfilment for SMEs.” He points out that increasing numbers of online sellers want their stock positioned as close as possible to their customers, in order to provide a quicker delivery or instant collect options. To answer this, the technology at Pack & Send will provide the capability to transfer stock between locations and optimise order processing.

Paul believes the company has a competitive advantage with the extensive service centre network, which is set to grow from 105 to 150 outlets in order to accommodate growing customer demand.

“Our biggest obstacle is perhaps internal – where there can be potential to become complacent – as complacency usually sets in, when everything in a business is going extremely well.

“However, when you believe the future will continue ‘as is’, then you will start to lose your competitive edge, and then lose customers. Complacency shows itself up in phrases like ‘this doesn’t apply to us’, or ‘we don’t have to provide this service’,” he points out .

“We have proven that our model is capable of franchisees operating multiple units with multi-million-dollar sales income.”

WHY PACK & SEND IS A GOOD OPTION FOR FRANCHISEES Franchisee costs have been stripped back because of boosted productivity caused by technology enhancements.

That means increased profits for franchisees, says Paul.

“One example of that is our investment in a proprietary point-of-sale (POS) technology system. Our POS technology (known as GMx) has not only improved customer service, but has also automated a lot of operational functions, allowing franchisees in some cases to more than triple sales revenue on their existing labour cost base.

“We are seeing very significant sales increases with franchisees on their existing labour cost base – which we were not able to achieve before. The magnitude of the sales increase would typically require extra labour to help – but with our technology we’ve taken that cost out.”

The tech investment also resulted in new income streams.

“The outlook for the brand is very positive with our transition to a technology-enabled logistics company, which has resulted in more Pack & Send franchise stores opening and an increase in existing franchisees purchasing their second and third stores as multi-unit owners.”

InXpress James Buck is country manager at InXpress Australia and New Zealand. He agrees the online retail industry is expanding at an incredible rate.

“In 2018, Australians spent a total of $28.6 billion on online shopping. This huge increase of an already booming market translates into rapid growth of the courier sector. And it shows no sign of slowing down.”

In response, shipping and logistics network InXpress has committed to doubling its business in three years.

The InXpress customer is a small- or mediumsized business seeking a personalised approach with their logistics service and great value from a long-term business partnership.

“These businesses don’t just ship with us once, they keep coming back to us, because we consistently save them time, money and hassle,” says Buck.

Franchisees provide expert advice, and help their customers find solutions to freight and logistics problems.

In addition to the usual logistics challenges around delivery expectations, the logistics and freight sectors are in a state of continual evolution.

This is never truer than in the digital and technology space.

Buck says the company’s adoption of an inhouse cloud-based technology-enabled shipping solution allows it to evolve and respond to tech developments.

WHY INXPRESS IS A GOOD OPTION FOR FRANCHISEES InXpress works with couriers such as DHL, TNT/FedEx, UPS, StarTrack and Toll, providing the sort of cost effective shipping normally accessed by larger corporations.

“Our customers experience the convenience of using our tech-enabled, award-winning shipping platform WebShip+ to compare multiple premium carriers, services and prices,” says Buck.

InXpress can also harness its technology to gain further business insights into customer buying patterns, market trends, business development and to boost sales.

“We have invested millions locally and globally into our technology offering, it is core to our overall value proposition for our customer base and franchise network.”

“Our award-winning WebShip+ shipping platform has evolved over 20 years in the global express freight industry and is now helping customers ship around Australia and the world every seven seconds.”

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SPOTLIGHT: LOGISTICS

Fastway How is this traditional business-to-business (B2B) set-up embracing the trends of online ordering, faster and more convenient deliveries?

Peter Lipinski, Fastway CEO, reports it is looking to overseas options that are starting to pick up in Australia, such as the click-and-collect method. Creative ways of helping customers include grouping deliveries and delivering after hours for a small surcharge.

“It’s definitely a challenge, let’s face it, everyone wants a bargain. When they shop online they want free delivery, they don’t value the time that delivery gives them.”

Lipinksi points out that customers spend ever more time on social media and Fastway has now integrated messaging into WhatsApp and WeChat.

“Customers have a choice. Keeping them informed is important. It’s one of those industries where things can go wrong, and that can create challenges. The bushfires for instance. That puts pressure on couriers and kicks out delivery times.”

There are times when a courier’s role is both lonely and stressful. Working in a hub-and-spoke format eliminates some of the loneliness, but external stresses such as climate conditions and traffic delays can build frustration.

Lipinski says, “The bushfires, for instance, impact in a number of ways: the connectivity of states, the pollution in Sydney, couriers experiencing breathing difficulties. The pressure is on them but we work with them to relieve that.”

Coaching franchisees, support processes and the choice of Beyond Blue as the main charity for Fastway indicate the concern the franchisor has about sustaining franchisees through difficult times.

ON DELIVERY 12,000 businesses.

5 major brands: DHL, UPS, Australia Post, FedEx and CouriersPlease, (the latter part of Singapore Post).

Mordor Intelligence

AUSTRALIA POST CLICKS AND RETURNS Australia Post has launched its Collect & Return service, giving shoppers the choice to collect and send back online shopping at many different locations including post offices, 24/7 parcel lockers, supermarkets, pharmacies and department stores.

It’s good news for post office licensees, who will see an increased volume of parcels cross their counters.

And helping Australia Post fulfil this is global tech firm Doddle. Boss Justin Dery says, “Pick-up services are the fastest growing delivery option globally and with 35 per cent of Australian consumers picking up an online order last year, the potential in this market is huge.”

DIGITAL DEMANDS According to the Australian Industry Standards Skills Forecast 2019, the logistics industry will require a digitally literate workforce skilled in cyber security and data analytics. These talents will help improve productivity and customer service.

PARCEL POTENTIAL Australians on average sent 34 parcels in 2019.

Aussies will send 1 billion+ parcels in 2021.

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FRANCHISEE MUST HAVE What makes a successful franchisee?

Regardless of industry or offering, the traits that define success in business are universal.

F

itness or fast food, coffee or cars, franchising is a unique and all-encompassing sector, but many of the steps that will help you climb the mountain are not industry specific.

It all comes down to you. How much are you willing to put into your business, and how dedicated are you to making it work?

In every venture, you will face adversity. From trying customers to swelling competition, the list of challenges you are likely to encounter is almost as diverse and different as the sector itself.

So, what is the key to getting it right?

• As a franchisee, you must play by the rules; after all, you are paying to be a part of an established system to do so. Don’t expect success to come thick and fast just because you pick a winning franchise.

• It is critical that you understand your rights and responsibilities.

Your franchisor will provide a wealth of resources and information relating to the operation, but the onus is on you to get it right.

We sat down with Tim West, founder and CEO of fast-growing boxing and strength training franchise 12RND Fitness, as he revealed his five golden rules to becoming a successful franchisee.

Five golden rules 1. EXECUTION

The ability to execute a plan is one of the most important traits any franchisee can embody.

Every member of the network is tasked with maintaining a supreme level of service or offering, and it is pivotal that you can deliver on this promise. One poor performing outlet can bring the value of the entire brand down. You don’t want to be the one operator dragging the chain.

“As a franchisee, you are buying into a franchise system because you want to benefit from the collective learning of the group and scale of the network,” Tim says.

“The system, brand and strategies have been developed and refined over time to be repeatable and scalable.”

There is a constant temptation to adjust certain parameters in the model. For example, you might find a supplier with a lower cost, or have a friend who could do your fitout cheaper – but bargain hunter beware. Franchisors have established ties with certain suppliers, builders and service providers for a reason, because they do good work that is consistent in look, taste and quality with the rest of the network.

West believes that while an entrepreneurial spirit can see you constantly striving for business improvement, some things are better left untouched.

“Often, franchisees can be tempted to make changes to the framework and implementation of strategy, but some of the most successful franchisees are the ones that follow the game plan and stick to the recommended best practice.”

2. A COLLABORATIVE ATTITUDE

Becoming an entrepreneur may seem like a solo endeavour, but in the franchise world it’s a different story. Franchising is a wholly collaborative venture; that’s why you often hear franchisees referred to as partners.

Your ability to work side by side with your franchisor will dictate how seamless the operation runs. Every franchisor will welcome feedback and advice, but compromise is an inevitable aspect of business.

Remember, you aren’t competing with your franchisor or other franchisees in the network. Your success is their success.

“The best franchisees understand that if the group is doing well, they will do well.

Rather than competing against fellow franchisees, it’s more productive and mutually beneficial to actively collaborate within their network and especially with the franchisor,” Tim says.

“Ongoing communication both ways is vital to encourage collective growth and success.”

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FRANCHISE BASICS

5EVERY TRAITS

FRANCHISE BASICS

3. A DRIVE FOR EXCELLENCE

Irrespective of industry, the most important trait that all franchisees should possess is a desire to achieve.

You must want to be successful, and you must be willing to put in the effort to do so.

“Above all else, the constant pursuit of excellence is, and always will be, your greatest strength and strategy,” Tim explains.

“Whether you are looking to attract initial customers or retain existing customers, you just need to focus on doing what you do better than anyone else.

“The best barista will always have loyal customers regardless of price, location or fitout because their quality and service is consistently good. This is a mentality rather than a destination.”

4. FINANCIAL LITERACY

“Knowing your numbers and understanding what they mean is critical for any franchisee. Franchisees, like all small business owners, need to understand their financials and how they relate to the performance of their business,” Tim says.

Taking the time to honestly and accurately assess your financial house is critical to your ongoing success. Ask yourself the hard questions, because any bank or financial lender will definitely do so.

• Are you in debt?

• Do you have a mortgage?

• Are you spending too much?

Remember, you must take into account your current standard of living and what it will cost to maintain it. We’ve all been guilty of underestimating our spending, but when it comes to a business opportunity, you can’t afford to get it wrong.

It’s also important to not only set a budget, but to stick to it. If you have really been brutally honest about your current finances, you should be able to develop an accurate and manageable budget. Get your head around the notions of cash flow and fee structures before you sink deep into the budget blues.

“If you don't think you have sufficient financial literacy, you should always ask your franchisor for help,” Tim explains.

5. SERVICE MENTALITY

Once the doors are open and customers are flowing in, it’s time to turn on the charm. Consider your operation from the customer’s perspective. Would you enjoy shopping/training/eating here if you were in their shoes?

The ability to connect with customers and clients is an often-underrated trait that great small business owners have. Tim says the key to building those relationships is having a service-driven approach.

“The best franchisees have a strong service mentality. They invest the time to know their customers, create meaningful relationships and add value at every opportunity,” he says.

“A good start is to greet your customer by name, give them what they want before they have to ask, and farewell them by their name.”

FINAL THOUGHTS 1. Above

all else, franchising is a relationship game. Whether it be connecting with your customers, your suppliers or your franchisor, communication is key.

2. Make sure you are open and honest with yourself and everyone involved in the business. Franchisees who are struggling are best advised to consult their franchisor for support.

3. Remember, your business is your responsibility, but that doesn’t mean you can’t ask for help.

More often than not, a successful franchisee is someone who is willing to heed advice and work on the bigger picture. n

FEB/APR 2020 | 134 | WWW.FRANCHISEBUSINESS.COM.AU

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FRANCHISE BASICS

IT’S TIME TO START ST OP SPENDING! Buy into a franchise and you’ll be raring to go. Just keep a tight hold of those finances...

AARON MARCH BlueRock Accounting

I

t’s generally accepted that a franchise has a greater chance of success than a go-it-alone start-up. Just remember that a franchise is still a business and there are no concrete guarantees of success. Your franchisor cannot protect you from all the pitfalls of small business so it’s good to be cautious and frugal.

CASH FLOW Profitable businesses have come undone by cash flow problems. Don’t assume that just because you are bringing in enough revenue you can relax and start spending. Unpaid invoices, unexpected costs, a sudden downturn in sales or taxes can put a strain on available cash.

Cash flow is like air for business; if you don’t have money on hand to pay rent, staff and suppliers your business will suffocate.

DON’T OVERSTOCK Even if you are tempted by a bulk-purchase discount try to avoid holding onto too much stock. Your cash will be locked up in unsold stock, absorbing all your working capital. Stock requirements are driven by sales so make your decisions based on what your sales are likely to be as opposed to what you would like them to be. Get a clear picture by carefully tracking inventory, you are more likely to overspend if you are flying blind.

Retailer Dick Smith had 12 years-worth of batteries in its warehouses when the business went into liquidation.

DON’T BUY WHAT YOU DON’T NEED There are lots of gimmicks and gadgets out there that appeal to new business owners. Keep your expenses to a minimum, particularly when you are just starting out. If it’s not an absolute necessity, then it’s a “want” and best put on hold. Ad hoc spending is to be avoided at all costs.

KEEP THE BRAKES ON EXPANSION You’re ambitious and enthusiastic but growth must be sustainable.

Your big ideas need to be matched by sound operational execution.

Stretch yourself as long as possible, work the long hours, do the hard yards before you start investing in growing your business. Resist the temptation to take on more staff, buy more stock and equipment, take on more debts and rent larger spaces. Regardless of how quickly your business expands you should carefully save and plan for expansion opportunities.

BUDGET, FORECAST, PLAN The pitfalls of business can easily be overlooked by the aspiring entrepreneur.

According to the Australian Bureau of Statistics 60 per cent of small businesses close within the first three years. It’s easy to get caught up in the day-to-day running of your business and forget about long-term planning.

• Create a conservative budget that estimates revenue, costs and fees.

• Micro-planning and a big picture approach are the key to success.

• Monitoring cash flow should be your number one priority. How much cash does your business need to run day-to-day? Expect the unexpected and put plans in place so you aren’t caught short.

• Develop a strong strategy for monitoring inventory.

• Even if it is your least favourite activity you must make book-keeping a priority.

• Run your budget past a trained professional. Choose someone who understands franchise systems.

An accountant will be able to offer realistic advice; they are unbiased and don’t have the same emotional attachment to your business.

Buying a franchise gives you a unique opportunity to access financial information before you set up your business.

You will have a sound idea of the costs it will take to launch your business, monthly expenses and revenue projections. While a franchise is more likely to succeed it should not be considered a golden ticket. Create your budget, make sure you know it well, stick to it, measure results and forecast for the future; get this right and you’ll be well on your way to sustainable success. n

Aaron March is director of BlueRock Accounting based in La Trobe Street, Melbourne.

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For the love of business At SNAP, we understand that teamwork is the backbone of any business. As part of our network, you’ll be supported by a team with the expertise and passion to see your business thrive to reach its full potential.

Nothing beats the satisfaction of owning your own business and becoming your own boss, with the security and freedom to dictate your working day and lifestyle.

Some reasons why SNAP is the right choice for you: Become part of a Multi Award Winning Australian Franchise network Join a growing market space in digital print Open doors with a powerful and recognised brand Have sales leads generated for your business Be supported in your local area marketing programs

Enjoy the flexibility to work 9-5 Monday to Friday, with your weekends free

Access the best-in-class suppliers through SNAP’s Premier Partner Program Tap into the latest technology and training systems

Create a saleable asset to benefit your future

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

P. 1300 810 233 E. franchiseenquiries@snap.com.au www.snap.com.au

FRANCHISE BASICS

LEGAL EASE Why a lawyer could be your best friend in franchising BRUCE MCFARLANE BlueRock Law

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B

uying a franchise should be exciting but try not to commit emotionally until you have sought the advice of an experienced franchise lawyer.

It’s easy to get caught up in the romance of being your own boss and by now you will have completed some serious due diligence; investigating a number of franchising options and perhaps even starting to form a relationship with a franchisor. This is a big financial commitment so don’t rush in. Take the time to engage a professional and rely on your franchise lawyer to provide you with guidance and advice.

YOUR LAWYER IS INDEPENDENT It’s quite possible that you have already fallen in love with a franchise system and we all know that when we are in love we tend to overlook weaknesses. A franchise lawyer will cast a neutral eye over this business venture and won’t be afraid to ask the hard questions, like “What will happen if this relationship doesn’t go to plan?”

When we are entering a serious financial commitment, we need someone who is prepared to format the worst-case scenarios and offer us a reality check. A lawyer will provide you with a detached review of the system and will not be concerned about offering unemotional, realistic advice.

SETTING UP THE BUSINESS ENTITY You possibly haven’t thought about the business structure you will use but it is one of the key decisions you will make when setting up your franchise. A franchise lawyer will work directly with your accountant to provide you with advice that is tailored to your specific needs.

The choice you make will be influenced by a number of key factors and each structure is governed by different rules. This decision will have a significant impact on the tax you are liable to pay and how you are able to protect your personal assets from liability claims, and all have varying set-up costs.

FRANCHISE DOCUMENTS ARE LONG AND COMPLICATED You never expected the franchising documents to resemble Tolstoy’s War and Peace.

These documents are not your average contract. They are lengthy, complex and will have significant legal and financial ramifications for the signatories.

It’s a unique area of law and an experienced lawyer will understand the specific regulatory requirements, imposed by the Franchising Code of Conduct, the terminology, standard conditions and clauses. A franchising lawyer will translate the fine print into plain English, summarise your key obligations and identify any red flags.

UNDERSTANDING RISK YOUR LAWYER HAS YOUR BACK When you are entering into a serious contractual obligation it’s good to know you have an expert on your side. A franchising lawyer will be able to advise you on what is standard and what is negotiable. It’s their job to determine whether the terms of your contract are reasonable, and they will look for opportunities to negotiate so you get the best possible deal.

It’s easy to feel like the playing field is tilted in favor of the franchisor, but your lawyer is there to level the power imbalance. They will answer all your questions and offer neutral advice as they have no emotional or financial attachment to the business.

Like investing in any business, there is always risk when buying into a franchise. A franchise lawyer will help you take off your rose-coloured glasses and enable you to see the reality of your commercial obligations. It would be foolish to enter into a franchise without a complex understanding of any possible pitfalls. Going into a franchise with your eyes wide open will protect you in the long-term.

Ignorance is no excuse, so once you enter into a franchise agreement, whether you understand it or not, you are committed financially and legally. Don’t just cross your fingers, hope for the best and call in the lawyers when the inevitable trouble arises.

Engage a legal franchising expert now and invest in your future.

Bruce McFarlane is managing director of BlueRock Law, a practice specialising in mergers and acquisitions and franchising.

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FRANCHISE BASICS

4 SKILLS THAT LEAD TO

SUCCESS What skill sets will help you achieve goals in your franchise?

By Kate Groom

D

espite what some people think, owning a franchise isn’t as simple as ‘Add water and Mix’. To be the owner and operator of a franchise you need skills beyond what’s taught in your induction training.

Here are four business skills that will serve you well. You might already have them before you start in your franchise, but if not you can learn as you go.

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1. SALES If you want to succeed in a franchise you must develop the ability to sell. Whatever your business trades in–from courier services and cafes to physiotherapy–nothing happens until you make a sale.

Years ago I met a franchisee who was so terrified of talking with people that he couldn’t make sales calls. Despite his enthusiasm for the business – and the training he had received – he simply couldn’t do sales.

So, when you’re assessing your ability to succeed in a franchise, it’s important to work out whether you have the personality, confidence and potential to succeed in sales.

You don’t need to be a gun salesperson, as your franchisor should teach the principles of selling for their business model. But you need to have a sense that you can sell.

2. MARKETING Marketing is different from sales.

It’s about getting people to the door, counter or your virtual equivalent.

Even if your franchisor has a marketing department, you will still need to do local marketing. Actively promoting your business can be the difference between average and exceptional performance.

It’s quite likely that you won’t have

much experience in marketing (unless your current job is in that field). However, your franchise is more likely to go well if you’re the kind of person who sees opportunity to promote a business.

Even if you have absolutely no marketing experience, right at the start you should ask yourself “Do I have an interest in promoting my business and learning more about how to market in my local area?”

3. LISTENING Listening is one of the most important skills of a business owner. You need to listen to customers, staff and advisers.

And we mean listening to understand what they are saying, not just letting the words wash over you. Listening skills will help you avoid errors and misunderstandings, and a good listener is always valued.

One of the best ways to become better at listening is to give the other person your whole attention. That means not multi-tasking!

4. PROBLEM SOLVING In your business you will spend a lot of time solving problems, whether that’s how to use new software or an app, or

figuring out the roster for a busy time of year. Or you might have a crisis to deal with.

Problem solving skills are what we use when we are doing something for the first time. You don’t have an instruction manual – you just have to work it out. This doesn’t mean doing everything yourself though. Sometimes the best way to solve a problem is to contact an expert. Still, there will be many times when you are best placed to be the problem solver.

While you’re thinking about buying a franchise you can also consider your ability to solve problems. What tricky situations have you encountered? How did you resolve them? Do you enjoy this or are you not so keen about being out of your depth?

Each of these business skills will help you succeed in a franchise. Even before you own a business it’s worth reflecting on your strengths and areas you could improve. This will help you make an informed decision about the business opportunity and your ability to succeed in it. n

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

Even before you own a business it’s worth reflecting on your strengths and areas you could improve.

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FRANCHISE BASICS

5

WAYS A FRANCHISE HELPS WITH YOUR HR

Invest in a franchise and tap into advice that can help you deal with some of the trickiest elements of business ownership.

MEENA SILK The HR Dept Fremantle Cockburn WA

W

hen you buy a franchise you will effectively be running a small business and that means chasing key priorities such as cash flow, sales, inventory and customers. Within this, HR is often left low on the priority list, though the importance of getting it right is quickly recognised.

The good news is a franchise can provide support in managing some key HR requirements so you have less to figure out on your own.

Here are five ways in which owning a franchise can help with your HR. 1. EMPLOYMENT CONTRACTS Navigating through employment awards and contracts can be tricky and time

consuming. Franchisors often provide a standard set of employment contracts, reducing the amount of work required researching, drafting and setting them up.

These contracts are usually legally compliant and secure employer and employee interest in a fair and equitable manner.

2. HR METHODS, POLICIES AND PROCEDURES What do small business operators do when they are faced with complex HR issues?

They rely on the internet for answers.

Unsurprisingly, this is a recipe for disaster due to the wide range of unverified or outdated information collected.

Owning a franchise can come with access to important HR policies, procedures and systems. This helps

significantly in managing compliance requirements in addition to removing the need to build essential tools such as social media policy, privacy and confidentiality, bullying and harassment policies and other business-specific policies.

3. ABILITY TO ATTRACT SUITABLE TALENT One of the biggest challenges for small businesses is the ability to attract suitable employees. Potential employees prefer to work for established and recognisable brand names, as opposed to stand-alone businesses or lesser known brands. This can significantly increase the available pool of people to recruit from and can help retain the right employees for longer compared to non-franchise businesses.

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4. STREAMLINED PAYROLL Setting up payroll is often faster and easier in a franchise, simply because it has been done before within the network.

Franchisors also assist by providing or recommending the appropriate software for managing payroll and setting it up correctly to suit the industry needs and relevant employment award.

5. POWER OF THE NETWORK If you are faced with an unusual employee issue or a tricky situation, chances are someone else within the franchisee network has dealt with something similar before.

Some franchisors may also have nominated HR advisors who can help with everyday people matters and give the franchisee confidence to deal with

their employees.

Additionally, franchisees are kept up-to-date with relevant employment law changes, minimum wage increases, etc.

HR TOOLS Many franchisors provide HR assistance as a risk management strategy that benefits both the franchisee and franchisor alike. The value of this is immense – from lower cost of setting up HR to having access to tried and tested systems and practices.

While these do not replace the time it takes to effectively manage people, the tools and infrastructure help greatly in setting up your business for HR success. n

Meena Silk, director, The HR Dept Fremantle Cockburn WA.

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Owning a franchise can come with access to important HR policies, procedures and systems.

FRANCHISE BASICS

MAKE THAT BUSINESS DREAM

A REALITY!

Asking the right questions is key before you dive into the rewarding world of franchising.

KAREN MATTHEWS Business reinvention specialist

D

oes this sound familiar? “I am going to start my own business, be my own boss, not get caught in corporate politics, reap the benefits of my hard work, work my own hours and have an overseas holiday every year … ”

This is all absolutely possible and definitely some of the wonderful aspects of franchising.

However, after establishing Ella Baché’s franchise system and 10 years as CEO running Ella Baché, there are a number of well-worn paths and tips that I would like to share with any budding and even existing franchisees.

PASSION IS NOT ENOUGH

A love of the industry simply is not enough. You need to question, question, question.

Many people become interested in a particular franchise opportunity because they have loved it as a customer or maybe their parents ran a successful business. You absolutely need to have a passion for the business you are considering but there is so much more to the purchase decision.

Interview other franchisees – established and new, and members of the business’ franchise council.

TRUTH-REVEALING QUESTIONS

• • • •

How long has the franchise been operating?

How much information is openly disclosed?

Are all the franchise fees, and the services you will receive, clearly articulated?

Is the franchisor happy to share the performance of a variety of existing businesses – established, new, large, small, country, metro?

• Exactly what weekly/monthly support will you get from the franchisor?

• What feedback mechanisms are in place within the franchise system?

• Has there been a history of disputes?

• What financials will you be asked for?

Tip: if it’s just the standard P&L, balance sheet and cash flow information, this may be a sign that commercial, modelling and decision-making numbers and ratios are not a priority. I believe this is cause to ask more questions!

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MONEY REALLY MATTERS Financial diligence is critical so before you decide to move forward with your investment, you need to delve deeply into the operating financials. You want to see some real profit and loss examples from businesses within the system.

So what are the questions you should be asking?

FINANCIAL FUNDAMENTALS • What is the bottom-line profit percentage to sales?

• How long on average has it taken a business to break even, and does this vary by location/size of business?

• What percentage is wages/salaries to sales?

• What percentage is the expense line to sales?

• What percentage is rent to sales?

You need to also understand some lead indicator financials (i.e. factors that can predict or indicate positive or negative performance in the future): • What is the average spend per customer/client? Has this increased or decreased?

• How many new customers/clients has the business attracted?

Is this up or down on the previous period?

• If you are considering a retail business, what is the return per square metre of the business and, again, is this number improving?

• Another question for retail franchises: what is the productivity per hour for staff and has this improved over time?

It is also important to review these businesses at various points in time … look at a start-up as well as an established business because these benchmark ratios will change over time.

WILL YOU SUPPORT ME?

The last step of the questioning process is to now understand what the franchisor has in place to support their franchisees in: • Tracking these indicators.

• Ongoing regular benchmark reporting across the system.

• Support/training/development – weekly, monthly, quarterly to improve these numbers within individual franchisee businesses.

ARE YOU A RULE BREAKER?

Great franchise businesses are about franchisors developing a robust and proven system and franchisees paying a franchise fee to follow that system.

If you like to break rules and hate following systems, franchising may not be for you.

NIMBLE, FLEXIBLE AND FOCUSED All high-performing franchisees have great accountants behind them managing the books and preparing the necessary financial statements, but the financial focus within the four walls of the operating business needs to be nimble, flexible and focused on both lead and lag indicators.

Lead indicators are predictive indicators of future performance, while lag indicators are actual historical performance.

Choosing the right mix of these numbers and monitoring them regularly is critical for decision-making. A practical and commercial approach to the numbers is key to success and not always in the wheelhouse of a traditional accountant.

A SEVEN-STEP CHEAT SHEET

In summary, there is a broad process here with lots of questions and diligence required at each stage …

1. Love the industry you are considering – you are going to be engulfed in it, so you need to love it.

2. Look for clear, confident disclosure from potential franchisors – fluffy, vague language is something to be concerned about.

3. Ask for real proof of concept and performance from others in the system. Benchmark your business against similar, high-performing businesses already in the system.

4. Speak to other business owners who are already established.

5. Ask the potential franchisor how they will set you up for success and importantly the commercial operating reports you will have and the regular support they will provide you and your team.

6. If in doubt or feeling overwhelmed, reach out for help.

7. Be patient – bank your short-term wins, don’t spend them (that time will come).

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Deciding to invest in a franchise is a fantastic opportunity but extreme diligence and insight is critical to ensure you set yourself up for long-term success and those years of overseas holidays you have dreamed of. n

Karen Matthews is a business reinvention specialist, and her career includes marketing at Myer, 10 years as CEO at Ella Baché, and two years as retail director at Freedom Furniture.

2020

You’ll need to promote your business, so how does the marketing support work?

E

very commercial firm, whether it’s a businessoriented service or a consumer-facing operation, relies on some form of promotion to bring in new custom – or to remind existing or former customers of the brilliance of the service or product.

Sometimes that’s as simple as word-of-mouth, but most companies will be generating material to spread the message. One of the popular benefits of a franchise for its franchisees is the marketing support that’s available because most new business owners are not experts in this area.

And that’s why franchising is an easy option – you don’t need to become an expert, the experts are on hand. The marketing gurus at head office will be directing the process, but marketing in a franchise is split into two categories: national marketing and local area marketing (LAM).

NATIONAL MARKETING

The campaign that promotes the latest burger offer or invites us to join in a game to win rewards is a national initiative directed and implemented by head office. The franchisor will plan and organise TV, radio, digital campaigns.

These initiatives benefit each and every franchisee, and the good news is, it’s a level of promotion that the individual franchisee doesn’t need to worry about.

LOCAL AREA MARKETING

LAM is targeted promotions that each franchisee is responsible for in their own area. These are campaigns that link back to the franchisee’s store or website, campaigns designed specifically to generate business in one area. It might be the personal face of a local business, it might be a service-based offer...the franchisee in most cases will be guided by head office on the types of promotions that are suitable and that have proved effective.

Franchisees will often have access to logos, artwork, copy and specific guidelines about how they are to be used

– all produced by the head office marketing team. It’s then the franchisee’s responsibility to ensure they are compliant, and to keep their foot on the pedal of local marketing.

Think letter box drops, local newspaper adverts, sponsorship of the neighbourhood netball teams, announcements of events such as store openings and sales, and any cross-promotions with a complementary business.

WHO PAYS FOR WHAT?

Franchisors establish a national marketing fund that each franchisee contributes to from their own turnover.

There are strict guidelines on how a marketing fund can be used, which means franchisors can only access the fund to deliver promotional campaigns and not dip into the coffers to finance an alternative business activity. Franchisors who do step out of line can be, and have been, fined for their non-compliance.

It is then up to franchisees to finance their own LAM activities on top of their national marketing fund contribution.

MEASURING SUCCESS

The franchisor’s marketing team will be held to account for the performance of the campaigns it generates. It’s crucial that the marketing undergone at a local level is also under scrutiny because you want to get results when you invest in promoting your franchise.

There isn’t a one-size-fits-all approach to how much information a franchisor will give you to understand your marketing; the experience, level of activity and depth of support will vary with each franchise system.

Marketing is an essential component in a business and franchising is about partnership. Each party needs to engage in the marketing process to ensure the brand becomes or remains a strong identity in the eyes of the customer. n

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FRANCHISE BASICS

MARKETING YOUR FRANCHISE

FRANCHISE BASICS

HOW IT WORKS

FRANCHISE BASICS 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

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.

COMPANY-OWNED UNITS

locations run by the franchisor rather than a franchisee.

CONVERSION

franchisees, with a focus on relationships, brand alignment, and sales and profit. This role might also be called business development manager or area manager.

FIXED SERVICE FEE

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

FRANCHISE AGREEMENT

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

FRANCHISEE

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

FRANCHISEE ADVISORY COUNCIL

a structure for franchisors to seek and receive feedback from their franchisees.

Participating franchisees may be elected or chosen by the franchisor.

FRANCHISE FEE

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

FRANCHISING CODE OF CONDUCT

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.

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

DUE DILIGENCE

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

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.

FIELD MANAGER

FRANCHISOR

an individual tasked with managing a group of

the franchisor grants permission to the franchisee to

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conduct business using its intellectual property, brand name, working methods and marketing.

GREENFIELD SITE a brand new site.

franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information.

REGIONAL FRANCHISEE

GOODWILL

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

INFORMATION STATEMENT

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

INTELLECTUAL PROPERTY

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

LICENSE

the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise.

LOCAL AREA MARKETING

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

MARKETING & ADVERTISING LEVY a regular flat or 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.

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

RENEWAL

once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further term. This process is bound by the Franchising Code of Conduct. 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

MULTI-UNIT FRANCHISEE

a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.

OPERATIONS MANUAL

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.

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. the franchisee’s guide to operating the

WORKING CAPITAL

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FRANCHISE BASICS 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 OPERATING OFFICER/ OPERATIONS MANAGER

CHIEF MARKETING OFFICER

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

In a franchise where the founder is the CEO, the COO may be the more experienced executive.

CHIEF FINANCIAL OFFICER

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

CHIEF INFORMATION OFFICER

The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations.

Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.

GENERAL MANAGER

A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations.

The responsibilities of the role may be incorporated into a CEO role.

FRANCHISE RECRUITMENT MANAGER

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

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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 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: 0418 136 156 Contact: Shayne Boogaard, NSW szh@7eleven.com.au Phone: 0408 175 534 Contact: Peter O’Hara, VIC pwo@7eleven.com.au

Phone: 0407 877 674 Contact: Brett Reading, QLD bzr@7eleven.com.au Phone: 0436 658 741 Contact: Edris Mukarram, WA ewm@7eleven.com.au

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au Start up costs from: $57,000 + 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 700 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.

Phone: 07 5509 0000 Contact: National Franchise Sales Executive franchise@australianskinclinics.com.au www.australianskinclinics.com.au/franchise

Phone: 0406 950 916 Contact: Michelle Michelle.Gallardo@aussie.com.au https://www.aussie.com.au/business-opportunities

Start up costs: Starting from $150,000 Start up costs: $150,000 - $200,000

PROFILE: Put your trust in our 22 years’ experience and join the booming cosmetics industry today with an Australian Skin Clinics franchise.

PROFILE: Aussie has been helping Australians find the right home loan for almost 30 years now. With more than 210 retail stores nationally. In FY19 our team of Aussie brokers and franchisees settled a monthly average of over $1.3 billion in loans with a loan book worth more than $66 billion. Aussie has also been awarded the Top Mortgage Brokerage by The Advisor ever year since 2013.

An Aussie store offers franchisees the opportunity to build a successful mortgage brokerage, leveraging the Aussie brand. Upfront trail commissions, and ongoing business support make Aussie an attractive franchise option.

Australian Skin Clinics are one of Australia’s longest standing medi-aesthetics franchise networks and are leaders in advanced skin treatments, laser hair removal, cosmetic injectables and fat reduction.

We’re looking for highly motivated professionals to join our rapidly growing franchise network, with some fantastic opportunities now available!

Our promise to Franchisees is to remain at the forefront of the medi-aesthetic industry, by driving treatment and product innovation while continuing to grow and set the industry benchmark in excellence. Join the Bluevment today!

We’re the ones in blue!

Phone: 0447 891 158 Contact: Greg Prussia gprussia@bedshed.com.au www.bedshedfranchise.com.au

Phone: 03 6210 5000 Contact: Shaun Goodwin sgoodwin@banjosrc.com.au banjos.com.au Start up costs: $250,000+

Start up costs: $700,000 - $900,000

PROFILE: Banjo’s is an Australian company providing great wholesome food and excellent customer service in a welcoming, contemporary environment.

The bakery café leader in Australia, our success is in the baking – we consistently make the best quality products and our customers come back again and again.

Our customers are our focus and it is through our connection with the people in our communities we build a strong local following.

We have developed a strong sustainable business model and are continuing strong balanced growth whilst not losing touch with the small things that got us here in the first place.

• Independence of owning your own business.

•

Be part of a successful franchise operation • Access to Banjo’s specialised systems • Buying power with key suppliers • Marketing, HR and IT support • Hands on business support and advice • Continual product and systems development • Ongoing training and development • No qualifications are required however it would be beneficial to have a certificate in retail, management, baking or sales.

Banjo’s are seeking interest for Queensland, Tasmania, Victoria and New South Wales.

Contact us for more information.

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.

With 37 stores in a growing network Bedshed is committed to partnering with franchisees to help them achieve business success, while offering flexible hours and a fulfilling lifestyle.

Phone: 0401644530 Contact: Rori Kokken owner@belleshotchicken.com www.belleshotchicken.com

Phone: +61 (3) 8593 45 46 Contact: Ali Kurtdereli boostinfo@retailzoo.com.au www.boostjuice.com.au/franchising

Start up costs: $430,000 - $720,000

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

PROFILE: Belles Hot Chicken is the new benchmark for fried chicken. Rated by AFR as the 79th best restaurant in Australia in its first year of operation and long listed for the World Restaurant Awards in 2019, Belles Hot Chicken has a legitimate claim as the best fried chicken in the world, period.

With six restaurants across Melbourne and Sydney, Belles is positioned for growth. The good news for aspiring restaurant owners is that Belles has launched an ownership program and is recruiting for talented owner-operators to deliver the next wave of expansion.

PROFILE: Boost Juice is one of the world’s most famous and loved smoothie and juice brands.

With its winning combination of fresh fruit and love life ethos, Boost Juice offers a healthy alternative to fast food and strives to have customers leave feeling just that little bit better. For further information regarding franchising with Boost, get in touch with Boost franchising today!

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A-Z LISTINGS

A-Z LISTINGS

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.cowch.com.au

Phone: 0437632738 Contact: Shan Butler franchising@degani.com.au www.deganifranchising.com.au

Start up costs: $500,000 - $700,000

Start up costs: $200,000-650,000 (investment levels vary depending on the model, location, etc.)

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.

PROFILE: The Degani family opened a little bakery cafe in 1999, with fresh pastries, delicious breakfasts and unique smooth coffee, that saw the locals queuing each morning. Degani quickly became a leader in Melbourne before the love of Degani coffee led to our growth to over 65 cafes across Australia, selling over 126,000 coffees each week.

So why should Degani be on the top of your list?

We are big enough to offer you buying power, brand power and expert support, while dedicated to making sure that your success is our primary goal. We tailor your business so that your customers love your cafe as much as you do. We are passionate about working with good people to create something special.

And if all that isn't enough, we have one of the industries lowest entry and royalty fee costs to help make your cafe dream a success.

Phone: 0427691407 Contact: Rob Zammit rzammit@focalpointcoaching.com www.focalpointfranchise.com.au

Phone: 1300 650 739 Contact: Richard McDonald franchise@dogtech.com.au www.dogtech.com.au

Start up costs: $89,950 Start up costs: POA PROFILE:

PROFILE: DogTech is an established, high quality and respected dog behavioural training company that enjoys an enviable reputation within the $12.2 billion Australian pet industry. We specialise in education, communication and management of dog behaviour, no matter the breed, age, size or history. With over 28 years’ experience in rehabilitating and training dogs utilising our unique WhisperWise methodology, we strive to create an ideal home environment for all dogs, as well as dog owners. The reputation of WhisperWise sees franchisees working with veterinary clinics, dog rescuers, shelters, licensed breeders, government and community service providers.

FocalPoint Business Coaches have exclusive access to the training and coaching techniques of Brian Tracy, a name synonymous with business success. Our excellent reputation and highly regarded programs are unrivalled and provide instant brand credibility, prestige and trust in the business community.

FocalPoint partners with experienced individuals who are self-motivated and looking for a business opportunity that offers a lifestyle plus adds value to your community. If you are a leader with at least 15 years business experience and you want to be in control of your financial future, take the next step and find out more about a FocalPoint franchise.

DogTech franchisees benefit from an established program that is underpinned by comprehensive training, ongoing support and marketing that reflects the highest level of excellence.

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

Phone: 1300 869 196 Fax: 1300 659 675 Contact: Approval Centre Team info@franchisefinanceaustralia.com.au www.franchisefinanceaustralia.com.au

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.

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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 250,000 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 health care professionals 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.

Phone: +61 8 8267 2144 Contact: Andrew Phillips aphillips@focalpointintl.com www.focalpointfranchise.biz

Phone: 0438 944 026 Contact: Gary Glen gary.g@emirateslr.com.au www.hudsonscoffee.com.au Start up costs: $200 - $500k

Start up costs: $59,950

PROFILE:

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

FocalPoint partners experienced individuals who are self-motivated and looking for a business opportunity that offers a lifestyle plus adds value to your community. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find out more about the FocalPoint franchise.

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

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.

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Phone: 1300 097 857 Contact: Franchise Sales Team Sales.au@inxpress.com au.inxpress.com/franchise-opportunities Start up costs: $64,950 + GST PROFILE: InXpress is a global express logistics business with over 370 franchisees, located in 14 countries, providing consultative services and innovative software to SMEs. Founded in 1999, InXpress has a long history in managing successful businesses, with the know-how to train and support franchisees in running a sales and business management franchise.

InXpress has established strong relationships with global courier partners, providing access to highly competitive rates, leaving you free to concentrate on sales and build your own successful and profitable start-up business: • Low investment • High return • Recession-resistant • Scalable & flexible • Recurring, passive income • Based on a proven business model For more information about becoming an InXpress Franchisee, contact us now.

Contact: Damien Sheehan franchise.AU@iwgplc.com regus.com.au/franchise PROFILE: REGUS, NOW WITH IWG A MAJOR NEW INVESTMENT OPPORTUNITY TO FRANCHISE WITH IWG PLC, THE GLOBAL WORKSPACE AND CO-WORKING MARKET LEADER 3 in 10 office buildings in every town around the world could offer a new franchise opportunity in the coming years through flexible workspace and co-working.

Imagine being given the chance to work with hugely successful established franchise industries such as restaurants or gyms at the beginning of their growth explosions.

This is an opportunity to diversify away from traditional franchise markets, and benefit from strong cash returns and attractive returns on investment.

Now is your chance to start a new franchise with IWG plc, the global operator of leading workspace providers, with brands to match every requirements and style, like Regus and Spaces.

IWG has been running successful workspaces for 30 years, ever since it founded the industry in 1989, and is present today in 3,300 locations, 120 countries and 1,100 towns and cities, with over 2,5 million customers. The flex-office market has reached a tipping point and we are seeking franchise partners to help drive the pace of our growth across the World.

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

Phone: 0459 654 146 Contact: Andrew Lyme Andrew.Lyme@justbettercare.com justbettercarefranchise.com

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

Start up costs: From $65,000 - $200,000+ PROFILE: Just Better Care is one of Australia’s largest franchised providers of in-home care services to the disabled and elderly and is an Approved Aged Care Provider and provides Disability Services under the NDIS. We assist customers to live in their own homes, providing a wide range of in-home aged and disability support services, keeping our customers safe and connected to their community.

Just Better Care Just Better Care is a unique business opportunity in a stable yet high demand and fast growing business sector.

Franchise business owners are provided full training, operational, marketing, compliance and IT & system support.

PROFILE: Start your franchising journey with Kwik Kopy, the leading provider of design, print and online solutions throughout Australia.

Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high quality services on-site. Owning your B2B franchise means operating business hours Monday to Friday so you’ll also enjoy work-life balance.

As a Kwik Kopy franchisee you get to become your own boss and be part of a supportive community committed to your success. You’ll also receive all the training you require, so no prior print or design experience necessary.

A Kwik Kopy franchisee is young at heart with business experience, entrepreneurial flair and most of all – an absolute passion for customer service.

We have both existing and new locations for sale throughout Australia.

Phone: 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!

Phone: 0422000444 Contact: Frank Sassine franchise@manoosh.com.au Franchise.manoosh.com.au Start up costs: From $195,000, depending on the size and location, we are here to help you to get in as little as possible, to maximise your time and investment.

PROFILE: For over a decade Manoosh Pizzeria has been serving our famous Mediterranean-inspired freshly baked pizzas and wraps to customers craving affordable lunch and dinner options that aren’t boring.

We’ve refined and streamlined our systems, processes and procedures and are excited to now offer Manoosh Pizzeria as a complete turn-key franchise opportunity for the first time. We have a clear strategic growth plan to launch franchises across Australia and are currently seeking passionate and likeminded owner-operators to bite into this opportunity. We started as a family business and now we want you to join us in making traditional Mediterranean food accessible to all Australians.

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

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Phone: 1300 646 324 Contact: Doug Downer douglasdowner@mindchamps.org au.mindchamps.org

Phone: 03 9604 9400 Fax: 03 9419 7735 robert@mmrb.com.au www.marshmaher.com.au

A-Z LISTINGS

Start up costs: $650,000+ PROFILE: 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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5.

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7.

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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

PROFILE: MindChamps grew from a vision to provide the world’s best early childhood curriculum and care. Its intent is to give every child the opportunity to become the best they can be by developing the ‘Champion Mindset’.

MindChamps invests in innovative research, development, and training, so that children have access to quality curriculum, teachers and resources.

With over 80 centres operating globally, we are poised to grow in the Australian market through franchising where we bring aligned individuals into the business and give them the opportunity to change the world, one franchise at a time.

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

Phone: 07 3221 2221 Contact: Bill Morgan info@morganmac.com.au www.morganmac.com.au

Start up costs: From $199,000 + GST

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

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

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.

Phone: (02) 9438 1711 Fax: (02) 9438 1733 Contact: Nelson Lima info@ogalo.com.au www.ogalo.com.au

Phone: 0498 955 890 Contact: Alan Minshull alan.minshull@nightowl.com.au franchising.nightowl.com.au/available-nightowl-franchises/ Start up costs: $200,000 - $1,200,000

Start up costs: $250,000 – $330,000 PROFILE: As the first 24hour Convenience Store in Australia, NightOwl continues to grow in the Convenience & Petrol Store market, partnering with major fuel companies.

Becoming part of a recognised convenience store brand gives our franchisees confidence that customers will come to you. It also means you benefit from the purchasing power of a large, respected network, that will provide franchisees with higher profits margins.

Retail experience is not necessary in running a NightOwl, but motivation and entrepreneurial skills are a must. You are supported by a franchise with over 32 years in franchising, including a full training program.

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PROFILE: Ogalo represents a vision in providing Australians with healthy, time convenient and great food.

The Ogalo story started in 1989 when Carlos founded one of Sydney’s most famous Portuguese Chicken shops, offering succulent chicken that was prepared in the traditional Portuguese way!

Carlos perfected his signature chicken burger recipe that has made Ogalo the success it is today, with a cult following customer base like no other!

Ogalo has expanded its menu to include an extensive range of meal options which includes grilled breast fillet burgers, wraps, fresh salads, marinated BBQ whole chickens, vegie and vegan options and much more!

Phone: 0415 262929 Contact: Michelle Christensen michelle@outbackjacks.com.au outbackjacks.com.au

PROFILE: Outback Jacks Bar & Grill restaurants offer relaxed casual dining with full bar facilities and the largest range of steaks! Choose your cut of meat, select your bottle of wine from our chilled wine cellar, then kick back and let your steak melt in your mouth. New store owners receive support in every facet of the business. We have proven systems to follow and full training is provided. Sites are now available across this great land - Australia.

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

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Phone: 0404 888 068 Contact: Bob Ozdemir bob@pearlhomecare.com.au www.pearlhomecare.com.au

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

Start up costs: $75,000 Franchise Territory, plus additional Start Up Costs of $150,000 PROFILE: Pearl Home Care offers the best in professional and affordable in-home aged care so that the ageing members of our community can continue living comfortably and independently at home.

We are Australia’s most trusted home care professionals, with a national network of qualified and friendly care providers who offer home health care, education and support to the elderly.

The types of care we offer include: • • • • • • •

In-home care and support 24/7 On call nursing care Post-hospital support In-home dementia care Comfort calls Veterans home care Palliative care

Phone: +61 2 8212 4578 Contact: Vivian Rounsley franchising@powerfulpoints.com.au www.powerfulpoints.com.au Start up costs: Franchise fee: $65,000, Equipment, etc: $7,000, Working capital: $25,000 PROFILE: PowerfulPoints is one of Australia’s leading visual communications companies providing services to mainly medium and large companies.

Working with a team of world class designers, copy writers and trainers we help clients create highly effective presentations, videos, motion graphics and other digital and traditional media. We help them communicate effectively in today’s multimedia rich world.

As a franchisee, your job is to do the sales and account service. You will have extensive training and ongoing support to help build a lifestyle and valuable asset in this rapidly growing market.

This is a limited opportunity, only around 25 franchises will be offered in Australia.

PROFILE: Australia’s Franchise System of the Year - Twice!!

Build your successful business future with us. We have a career path in business that we can tailor to suit you. As a Poolwerx Franchise Partner, you can start small or jump right in. Join us as a man in a van, progress to multi-vans, a retail store and vans and then in multi store. Or purchase an existing fast start mobile territory or retail mobile business. Whatever your journey, we will help you realise your vision.

Our one focus is to create a profitable partnership. We do that by matching over 25 years experience and outstanding support, marketing and business development systems to your energy and enthusiasm.

For more information, visit poolwerx.com.au/franchising.

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

Phone: 03 8564 8186 Contact: Venice franchise@rolld.com.au www.rolld.com.au

Start up costs: $750,000 upwards PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of over 170 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.

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.

PROFILE: Food is everything to our family. It’s what we laugh, cry and bond over, and have done so since we were kids. Through Roll’d, we aim to share the things that matter most to us – great food and memorable experiences. The Roll’d brand aims to reflect the lively, fresh nature of Vietnamese street food, whilst also maintaining exceptional speed of service and quality customer interactions. Customers know our food is fresh with high-quality ingredients as they watch it all come to life right before their eyes. With over 75 stores across six states and territories, we use our experience, market dominance and well-established relationships with real estate agents and landlords to secure the best locations, with each location carefully selected based on key criteria around the specific precinct and its suitability for the brand.

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

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Phone: 02 9114 9955 Contact: Linda Sultmann enquiries@signwave.com.au www.signwave.com.au

A-Z LISTINGS

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

Start up costs: $300,000 for a new centre PROFILE: PROFILE: There’s a bright future in signage with our group growing 40% in the past 5 years!

SIGNWAVE is a recognised brand in the Australian B2B market for print and signage. With a product range that is so much more than signs, including vehicle graphics, interior décor, point of purchase, exhibits and displays. Get both lifestyle and financial returns with our B2B model and the support to have you be an expert day one. SIGNWAVE is part of FASTSIGNS the multi award winning North America Sign and Graphics franchise with over 700 centre worldwide. We have both new and resale opportunities available in key metro areas.

The sophisticated Snap Centre of today is a far cry from the convenience of the corner printer of the 60s, Snap is one of the most recognised brands in Australia with a reputation in its field of quality production and service, and a commitment to people.

Snap continues to evolve its franchise model and is building on its reputation for innovation and embracing change through the introduction of new products and services combining the best of traditional print with online marketing solutions.

We are Multiple Award Winning Australian Franchise Success Story that has expanded its successful franchise model into Master Franchises in Ireland and New Zealand.

Phone: 1300 781 735 Fax: (02) 9150 0837 Contact: Jose Bello jose.bello@soccajoeys.com www.soccajoeys.com.au/franchise

Phone: 0478 652 884 Contact: Shawn Tracey shawnt@sohq.com.au www.soulorigin.com.au Start up costs: $300,000 to $400,000 plus 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 over 110 stores now trading nationally. 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.

Recently awarded 5th in the top 10 overall Best Franchisor Category by 10 Thousand Feet in 2019, Soul Origin takes pride in supporting and guiding their franchise partners to grow their business. 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 9350 1555 Contact: Michael michael@spanishdoughnuts.com.au spanishdoughnuts.com.au

Start up costs: From $150,000 PROFILE: Spanish Doughnuts is the on-the-go Spanish inspired treat shop.

Our stores have been churning out made-to-order churro since 2008. Your choice of sneaky treats from our Original Hot Churro with chocolate dipping sauce, to hot filled ones like with jam, custard, chocolate, caramel & Nutella. Or our delectable coated ones like our Bombon range including our Triple Choc Bombon & Coconut Bombon.

Spanish Doughnuts is now seeking interests for Sydney CBD, Brisbane, Sunshine Coast, Melbourne, Geelong and Fremantle & Mandurah in WA.

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

PROFILE: Splash Swim School is a boutique custom-made swim school. We have a state of the art turnkey fit out. Our pools are custom made to suit any size warehouse. We follow Royal Life’s Swim and Survive program that is accredited Australia wide.

Full training and support. An easy 1800SPLASH telephone number to remember.

Operation system and full support Splash have their own in house architectural service, project manage and building contractor that are registered in all states of Australia

Phone: 074772 7655 Contact: Sean Cochrane seanc@supergreensolutions.com.au supergreensolutions.com.au/mobile-franchise/ Start up costs: $85,000 Includes Franchise fee PROFILE: SuperGreen Solutions have been globally trusted brand in energy efficient products for 20 years (81 locations 13 countries). SuperGreen Solutions ‘Direct’ recently released a mobile version of the bricks and mortar model.

Simply a mobile One stop energy Efficient products showroom & office in a van.

SuperGreen Direct Franchisees go directly to where the business is, when needed. i.e. Home shows, Display Homes, Builders, Eco- Fiesta’s, Commercial and residential clients.

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Phone: 1300 991 104 Contact: Alex Johnson alex.johnson@swimart.com.au www.swimart.com.au

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

Start up costs: Approximately $45,000 (for a mobile franchise), to $180,000 - $250,000 plus stock (for a retail store) PROFILE: Swimart is one of the most successful and well-established pool and spa businesses in Australia and New Zealand. Over 35 years, Swimart has cemented itself as the trusted name in pool care amongst pool and spa owners, with 76 retail & mobile outlets and more than 250 dedicated mobile service vans across Australia & New Zealand. It’s an exciting time for this industry, with Australia boasting the highest rate of pool ownership in the world. Swimart is well placed to take advantage of this growth. It has developed strong consumer brand awareness in Australia and New Zealand, and is renowned for its expertise, experience and great customer service

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

Phone: +61 492 837 020 Fax: +1 416 646 0366 Contact: Greg Sweney opportunity@tutordoctor.com www.tutordoctoropportunity.com

Phone: 0433845508 Contact: James McGovern james@thegoodplace.co thegoodplace.co Start up costs: $200,000

Start up costs: $60,000 PROFILE: Food is so much more than energy to enable us to move and think – it contains the codes to enable us to optimize and thrive. The Good Place believes a diet rich in real food is the key to health and longevity. As such, we have developed a menu that is gluten free, low sugar, soy free, grain free and non GMO. If you have a strong business background, hospitality experience, and want to make the world a better place – we would love to hear from you. Funding packages are available to all successful franchise candidates.

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 700 locations around the world, Tutor Doctor has changed the lives of 300,000+ people by helping them achieve their academic goals.

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

Phone: 0467 007 304 Contact: Brian Barnard brian.barnard@xpressodelight.com.au www.xpressodelight.com.au

Start up costs: $175,000 - $300,000 PROFILE:

Start up costs from: $49,900 + GST

We make foods that add a smile to your day. Just one bite and you’ll know you’re eating something special; something reminiscent of your childhood.

A simple model with absolutely no baking in store; just filling, decorating and displaying. Our famous varieties include Boston Cream, Pineapple Ring, French Toast Ring, our signature Vanilla Glazed, PB & J, Raspberry Cheesecake and many others.

Our Hot Jam Doughnuts are freshly cooked to perfection and available all day long!

Together with our Specialty-Coffee created especially for Walker’s, our Classic Hot Dog flavours, our Traditional 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.

Franchising in Victoria and NSW with opportunities available nationwide!

Phone: 07 5500 0800 Contact: Christine Allsopp franchise@zarraffas.com zarraffas.com Start up costs: $750,000 - $800,000 +GST* PROFILE: Consistency, reliability and convenience are the cornerstones of each Zarraffa’s Coffee franchise.

As far as we’re concerned, Australia is open for business! Join a network of almost 90 stores, backed by a 21-year history, with franchise opportunities throughout regional Queensland, New South Wales, Western Australia and Victoria in 2020 and beyond.

Find out more at zarraffas.com/franchising

PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded!

This pent up demand for gourmet coffee in the workplace is very poorly met.

Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees.

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

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CONTACT GENERAL MANAGER DAVID STRONG ON 02 8224 8370 DAVID.STRONG@OCTOMEDIA.COM.AU

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A-Z LISTINGS

FINAL WORD

9

THINGS TO LEARN ABOUT...

FRANCHISEE WARREN D’CRUZ

Once a boy who couldn’t afford soccer boots, now Warren D’cruz is an award-winning franchisee. The Auto Masters franchisee scooped up the multi-unit franchisee of the year award from the Franchise Council of Australia in 2019.

“I used to love football

but I never went to the park, I never had anything as a kid. When I played soccer at 14, I had no football boots. My mum and dad worked shift work. My mum worked 6am to 2pm, my dad worked 2pm to 10pm. They never saw each other.”

“I think it drove me. I like to spend. If I want it, I’ll get it.

I remember my first job, I bought a football.”

“The reason I went to multiple units was about lifestyle. I work from home

every day because I have back up everywhere, and failsafe options. I am looking at more outlets, perhaps up to 10.”

“I’m a hard-working person but I need that guidance.

I need the systems, I’ve also got my own systems so my staff follow my customer service rules, that’s what I do outside AutoMasters.”

“I used to work as a mechanic.

I felt I’d gone as high as I could go and I was looking to buy a business. It’s probably a good thing I bought a franchise because otherwise I would have done it on the cheap. With the franchise I spent more money but it’s paid off. My wife felt more comfortable too!”

“I’ve got four units. I’ve got three in Western Australia, one in South Australia. Our operations manager oversees a lot now. I’m buying another store in WA.”

“I’m proactive, I want feedback.

I have a very good relationship with the franchisor. We meet every three months, he sees all the financials and puts me on the right track. I set the goals and he definitely keeps me accountable, like a business coach.”

“I do still work on my business non-stop, and I’m very passionate, I love what I do.

Thirteen years ago I wouldn’t have dreamed of being where I am today. I have the freedom to go on a lot of holidays. A lot of my friends say I have the dream job.”

“Successful turnover is totally about having the right people.

With the Adelaide store I turned around, I went through a lot of staff; I kept going till I had the right people. Then I really looked after them. I find it very easy, we’ve got the system down pat.”

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