Inside Franchise Business - Nov/Dec 2017

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

NOVEMBER/DECEMBER 2017

ISSUE 30 VOL 6

7

BRANDS

that guarantee your income

MAD FOR

MEXICAN Flavour trumps when it comes to eating out

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TROPHY TIME

WHO WON FRANCHISING’S TOP AWARDS?

Orangetheory Fitness is a unique and innovative concept that celebrates 100% success rate across 700+ studios worldwide. Backed by science, it’s an energetic, one-of-a-kind training experience that ensures members train at their optimum metabolic rate through the use of heart rate monitors.

A successful global franchise with 3500+ clubs worldwide, Anytime Fitness is the brand that brought the 24/7 concept to life. We’re the biggest fitness community in Australia with 460+ locations. We’re getting Australians moving for a fitter and healthier future.

START YOUR FRANCHISE JOURNEY WITH US TODAY info@collectivewellness.com.au

Australia’s leading health & wellness franchise group www.CollectiveWellness.com.au

CONTENTS

REGULARS

LEADERSHIP

5 6 10 110 112 113

14 7 INCOME-GUARANTEED FRANCHISES

EDITORIAL GLOBAL EYE

37 BEATING THE BURNOUT

Hire A Hubby has found a way to help franchisees manage their success.

For an extra level of financial security check out these brands.

INSIGHTS

40 FRENCH FLAVOUR

GLOSSARY

Gallic charm meets European tastes in this new food franchise.

CHECKLIST RESOURCES

18 COVER STORY Award winning franchisee shares her tale..

24 ACTIVE SERVICE

42 PIZZA ON A ROLL

Kids' gym concept launches franchise.

A day in the life of a mobile pizza truck.

26 FIT FOR PURPOSE

Jetts Fitness shows why it pays to listen to customers.

30 WOMEN PROVE THEY CAN DELIVER Female managers at CouriersPlease are leading the way in logistics.

INDUSTRIES

34 DEATH OF DIY?

50 A PIZZA ON THE ACTION

Fox Mowing sees the potential for lawn services.

What it takes to keep a pizza brand growing and evolving.

STARTING UP

Use the help available to get your business up and running.

Budget buys for the cost-conscious franchise buyer.

83 THE CODE IS THE KING

The ACCC has your back once you become a franchisee.

86 THE PAPER CAPER

64 ALL HANDS OFF-DECK

Looking for an investor franchisee role?

Sign your way through the essential paperwork.

68 MEXICAN STANDOFF

91 IS YOUR TRAINING ON TRACK?

Eateries that are hotter than a jalapeno!

Ensure you know the essentials before you open the doors to your business.

72 COLD COMFORT

94 7 TOP RECRUITING TIPS

Could an ice-cream business melt your heart or freeze your finances?

Employees will be a key asset to your franchise.

How a holiday led to the My Home Watch business.

46 BEACON OF LIGHT

Cafe chain Jamaica Blue links with youth initiative.

48 FIVE MINUTES WITH…

Mad Mex director rakes our Q & A.

78 SETTING UP FOR SUCCESS

58 NO NEED TO BREAK THE BANK

45 DOING HER HOMEWORK

77

99 MARKETING, IT’S NO MYSTERY

Here are some guidelines to promoting your business.

102 IT NOT NEED TO BE SCARY Technology helps franchisees on a daily basis.

103 DRIVING BUSINESS

Set a road-map for your franchise journey.

108 5 START-UP ESSENTIALS

What it takes to get your business in order.

122 FINAL WORD

Professor Andrew Terry talks business.

NOVEMBER/DECEMBER 2017 | 3 | WWW.FRANCHISEBUSINESS.COM.AU

GLOBAL

BRAND LOCAL OPPORTUNITIES

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fun, l l e s e “W am” e r c e c i not just Irv Robbins Founder

Scoop up your own Baskin-Robbins® today!

Call us on 07 3860 6716 Email franchise@palmoasisventures.com Visit www.baskinrobbins.com.au

EDITORIAL

Winners and grinners Success in franchising comes in all shapes and sizes, and you could be part of it.

It could be you. A star in your own right, thanks to fantastic commitment, superb performance and dedication to the brand...you just need to sign up to a franchise and get started.

Of course, it isn’t that simple, but equally it isn’t an insurmountable challenge, as you’ll discover when you read the story of our cover star, Beverley Taylor, who has won a prestigious national franchising award just four years after taking the leap into a franchise.

In this edition Inside Franchise Business is honouring the winners who took home the trophies at the industry’s big gala night. And celebrating the breadth and diversity of the franchising community - from a fastgrowing food brand to a home-building business, from transport and logistics to a handyman network, from a dance franchise to a business broker...this year the national awards reflected the strength of the services sector, proving you don’t need to invest in a food franchise to be successful.

Success takes hard work and initiative, and some good luck, but it helps to start out with a franchise that’s on top of it’s game, that develops a business idea into a scaleable operation, and continues to develop the business to keep ahead of the market and meet customer demand.

In the leadership section this month there are plenty of examples of fresh concepts, and smart solutions for established businesses.

Check out the options in the food arena - Mexican, pizza and ice-cream remain firm favourites for Aussie consumers.

But perhaps you want an investment that’s less intense? Or you have a tight budget? There is something here for you too!

At the pointy end of buying a franchise you’ll need some advice on how to set up, what needs to be signed, how to get started on marketing...much of this will come from your franchisor, but Inside Franchise Business has independent and expert advice on this stage in the Franchise Basics section.

EDITOR

CLIENT SUCCESS MANAGER

SUB-EDITOR

MARKETING MANAGER

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

Louis Allen louis@octomedia.com.au

GENERAL MANAGER

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

SENIOR ACCOUNT MANAGER

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

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

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

Sar a h Sarah Stowe

Editor

OCTOMEDIA

L3, 51-57 Pitt St. Sydney NSW 2000 PO Box R217, Royal Exchange, NSW 1225 Ph: +61 2 9901 1800 Fax: +61 2 9251 5957 www.octomedia.com.au

GRAPHIC DESIGN

Rozelle Carlos rozelle.c@octomedia.com.au

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GLOBAL EYE

AN APPETITE FOR FRANCHISING O

verseas brands are keen to bring their business models to Australia while homegrown Aussie businesses spot opportunities in franchising.

WINGING IT An American fast food chain will be winging its way here after signing a franchise agreement to open 110 outlets in Australasia.

Wingstop Restaurants already has more than 1,000 locations globally and expects to open its first Australian outlet in Brisbane before July 2018.

It’s been delivering wings, sides and fries since opening its doors in Texas back in 1994. Three years later the brand launched into franchising, and the growth has continued.

The typical menu is quite niche with classic and boneless wings cooked to order and flavoured with 11 distinctive mixes.

Larry Kruguer, president of international at Wingstop said “Australia is a major consumer of chicken, and our uniquely flavoured wings provide a differentiated offering in the market."

A TOUCH OF MEXICO The Australian franchisee firm operating KFC and Sizzlers stores, Collins Food Group, is to reintroduce US Mexican chain Taco Bell to the Australian market.

This will be the third time the American brand has tried to get a foothold in Australia. Collins Foods said a former Sizzler restaurant in Annerley, Brisbane, will be the launch location.

The move comes after the US fast food brand failed to gain traction in Australia in the 1980s, and again between 1997 and 2005, when it had a store on Sydney’s George Street.

Taco Bell will be a late-comer to the popular Mexican food sector which is dominated by franchised chains such as Guzman y Gomez, Mad Mex and Zambrero.

The US fast food business has established a dominant position in the American fast-food market since founding in 1954. It’s now owned by food giant Yum Brands, which owns a raft of KFC restaurants in Australia.

AROUND THE WORLD Global brand Papa Johns Pizza has its eyes on Australian expansion. Already in more than 44 countries, with over 5,000 outlets, this Kentucky, US-based business pits itself as mid market - well priced but with a gourmet touch, the home-grown tomato paste and freshly made dough the keys to its product success.

Papa Johns Pizza is looking for one or more master franchisees to help build the Australian business.

Indian retail brand Methyz injects colour and creativity into the world of relaxed footwear, with its range of rubber

thongs designed to last. The footwear is designed and owned by a firm that has been manufacturing rubber footwear since 1972.

Now the distinctive stud‘n’strap styles are heading to our shores as the expansion plan turns to Australia and opportunities to open retail outlets.

And from Munich, Germany, another retail concept: beautifully packaged exotic oils and vinegars infused with unusual flavours such as strawberry, date or Indian whiskey. It’s a niche offer - the Vom Foss business is family-owned with specialist outlets around the world, and initial interest is focused on Melbourne and Sydney.

LOCAL BRANDS TURNING TO FRANCHISING Local cafe chain Twisted Sista proved a popular stop for visitors to the Melbourne expo tempted by the colourful gelato on show that was just a taster for the full menu.

This well-established business is run by a family operating in hospitality for 35 years.

With four franchises already established, Twisted Sista has plans to open another 12 next year.

Top quality Australian produce turned into American-inspired burgers is the point of difference for New York Minute, a fast food business that specialises in bespoke, gourmet products sourced through ethical supply chains.

It all started in 2010 in Moonee Ponds, and now there are five stores as the business looks to expand through franchising.

NOVEMBER/DECEMBER 2017 | 6 | WWW.FRANCHISEBUSINESS.COM.AU

Grow your network with Cashflow It Franchise Accreditation

Help your franchise partners get the finance they need by becoming a Cashflow It accredited franchise system.

Not only does accreditation reduce the challenges of accessing finance, it is also a powerful tool to assist in the growth of your franchise network.

While Cashflow It operates with the flexibility of a small business, we have the resources and backing of one of Australia’s largest non-bank finance companies - Thorn Group Ltd, an ASX 200 company with over 80 years’ experience in the finance industry.

Cashflow It has been a key partner for the growth of the Rolld system. Where traditional lenders have rigid requirements, the team at Cashflow It have understood the challenges of a growing franchise system and have been prepared to partner for growth.

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GLOBAL EYE

FAVOURITE FAST FOOD

Aussies love fast food but are the traditional brands still flavour of the month? When it comes to customer satisfaction it seems there's a shift in this franchise-dominated market.

Casual dining burger chain Grill’d has topped Roy Morgan’s customer satisfaction survey for the quick-service restaurant category with a 90.7 per cent score, pipping at the post Mexican favourite Guzman Y Gomez.

GYG rated second at 89.3 per cent satisfaction, followed by Crust Pizza (86.6 per cent) and Subway (85.8 per cent).

Fighting for fifth spot were Noodle Box (82.3) and Nando's (82.2 per cent).

In the middle ground were Red Rooster (80.3 per cent) and Oporto (79.6 per cent), which beat Pizza Hut’s 78 per cent, Hog's Breath Cafe had a 74.3 per cent and Domino’s had a 73.6 per cent ratings - although Pizza Hut saw the biggest improvement (up 9.6 per cent).

McDonald’s 66.2 per cent score ranked the fast food giant at the bottom of the list, just below KFC and Hungry Jacks, which achieved 71.5 per cent and 72.8 per cent scoring respectively.

Roy Morgan’s industry communications

director, Norman Morris, said “Over the last four years, there has continued to be strong growth in the patronage of quick-service restaurants, with an increase of over 1.3 million or 13 per cent. This has increased customer numbers in an average four-week period for those over 14 to nearly 12 million and as a result has brought with it very tough competition.

"The use of quick-service restaurants is widespread across all age groups and socio-economic segments. However, Roy Morgan has a great deal more information about the customers of each of the major brands, enabling an in-depth understanding and profiling, necessary tools for anyone involved in strategy development in this fast growing and highly competitive industry,” he continued.

READY, SET, GO

Franchise buyers looking for ‘finance ready’ brands have a new resource at their fingertips.

Franchise information and ratings specialists, FRANdata, have released a brand new list of franchise chains it deems ‘finance ready’, based on assessment against a set of criteria developed from

measuring and analysing performance over nearly 30 years.

The criteria includes key system information, financial benchmarks, transparency measures and recognition of existing lending relationships.

The list of 44 brands includes many established household names, some emerging brands, and businesses with a lower capital entry cost. The list is a diverse mix of food, retail and service-based franchise systems.

FRANdata’s Australian CEO, Darryn McAuliffe, said “We are seeing a welcome increase in interest from franchise lenders on the whole but this remains heavily reliant on brands providing good information to lenders and strong support to their franchisees.

“Our ‘Finance Ready’ assessment aims to recognise those brands we have identified as providing that information and building, or already enjoying, good relationships with franchise lenders.”

Franchisees of ‘Finance Ready’ brands are expected to experience an improved lender experience from the effort and investment of their franchisor. n

FINANCE READY BRANDS 7-Eleven Athlete's Foot Australia Post Banjo's Bakery Café Baker's Delight Boost Juice Brazilian Butterfly Bucking Bull Carl's Jr Cibo Cirillo Lighting and Ceramics Clark Rubber Domino's Pizza Experimac

Ferguson Plarre Fully Promoted GJ Gardner Homes Guttervac Hungry Jack's Jamaica Blue KFC La Porchetta McDonald's Mailplus Montezuma's Mrs Field's Muffin Break Pandora Oporto

NOVEMBER/DECEMBER 2017 | 8 | WWW.FRANCHISEBUSINESS.COM.AU

Pack & Send Pizza Hut Poolwerx Refresh Renovations Quest Red Rooster Salsas San Churro Signarama Skewerz Soul Origin Subway VIP Home Services Zambrero Zarraffa's Coffee

Small Business Dream?

J O I N A U S T R A L I A’S # 1 F O O D F R A N C H I S E

10 REASONS TO JOIN

AUSTRALIA’S #1

FOOD FRANCHISE: 1. Ranked as Australia’s #1 Food Franchise for 2017

2. Zero Royalties & Marketing fees to pay 3. 116 years of retail baking history 4. No baking required as we make everything for you

5. 5th generation family owners 6. Multiple revenue streams of income 7. Daily deliveries into your store 8. Fresh ingredients used 9. Multiple award winning product lines 10. 70 stores across Victoria and growing

TO FIND OUT MORE VISIT WWW.fergusonplarre.com.au/franchise

INSIGHTS

JUST

brilliant!

The stars of Australia’s franchise world have had a chance to shine at their annual gala event. Both franchisees and franchise brands alike were recognised for their contributions and commitment to business.

NOVEMBER/DECEMBER 2017 | 10 | WWW.FRANCHISEBUSINESS.COM.AU

F

ranchising’s top performers were recognised at the Franchise Council of Australia’s starstudded annual black-tie evening, with its awards showcasing the strength and dynamism of the services sector, and three brands going home with multiple trophies: Finn Franchise Brokers, GJ Gardner Homes and Hire A Hubby.

The house-building business GJ Gardner Homes won the main title, Australian Established Franchisor of the Year, fighting off competition from a line-up of service-based franchise finalists – Hire A Hubby, MBCM Strata Specialists, Mister Minit and The Leather Doctor.

GJ Gardner had just scooped up two

other awards, being named national winner for both Excellence in International Franchising and for Franchisor Social Responsibility.

“We’ve been so fortunate to take out three awards tonight, and it’s really thanks to the team – our franchisees, our master franchisees and our strategic partners,” GJ Gardner Homes CEO/managing director Darren Wallis told award guests. “It’s a massive recognition of the effort our team has put in over the years we’ve been franchising. It’s just so good to be recognised by our peers and by the franchising industry.”

General manager Lee Moore said that winning a Franchise Council of Australia award was great for business. “From an international perspective, it will mean that new franchisees will see us as a leading franchisor in the business. Certainly, from a social and community responsibility perspective,

it is great for our customers to see we are really involved in the community.”

HOTLY CONTESTED Handyman network Hire A Hubby was rewarded for Excellence in Marketing, and named national winner for Franchise Innovation, a hotly contested category with fellow service business Fastway Couriers and food brands Jamaica Blue, Spudbar and Zambrero the national finalists. Turn to page 37 to read more about Hire A Hubby.

Healthy fast-food chain Soul Origin was named Australian Emerging Franchisor of the Year after opening 80 stores in three years. Other finalists in the category were Bonbons Bakery, Bookwiz Bookkeeping, KX Pilates and Shoebox Bookkeeping.

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INSIGHTS

MYOB FCA Excellence in Franchising Awards 2017 winners

“I’m a little bit overwhelmed because we didn’t expect to win this award,” said Soul Origin CEO Chris Mavris. “To be recognised by our peers in such a way gives us real credibility in the industry ... and means more to me than anything we’ve achieved so far.”

Fastway Couriers celebrated its 25th anniversary of working in Australia by taking home the award for International Franchisor of the Year for the second time in three years. “The award really recognises all the hard work that goes on, not only in our franchise support office but in our 27 regional franchise locations,” said Australia CEO Richard Thame.

DOUBLE WIN Finn Franchise Broker’s Ryan Willsher had a double celebration, taking out the Franchisee Community Responsibility and Contribution Award then going on to win the Multi-Unit Franchisee of the Year category.

Career banker turned franchisee Nellie Dicks, who joined the Bank of Queensland in 2004, was named SingleUnit Franchisee of the Year (two or more staff). She is featured in the September/ October Inside Franchise Business edition.

The Single-Unit Franchisee of the Year (fewer than two staff) title went to this issue’s cover star, Beverley Taylor of InXpress. Turn to the feature on page 18 to read how she catapulted to success in just four years.

Designed to help young entrepreneurs seeking to grow their businesses by franchising, The NextGen in Franchising FranShark Competition was won by KX Pilates founder/CEO Aaron Smith. The competition is run by Octomedia, the publisher of Inside Franchise Business, supported and judged by the FCA Hall of Fame.

Smith goes on to attend the finals of the global competition, at the International Franchise Association’s convention in the US in February. Last year’s Australian winner, Salts of the Earth, was this year’s global runner-up.

Another highlight of the awards was the induction of Rod Young into the Franchise Hall of Fame. Considered one of the world’s foremost franchising consultants, Young is chairman/global CEO of the $250 million Cartridge World group.

The Supplier of the Year Award went to MST Lawyers, a regular contributor of legal advice for the Inside Franchise Business website, FranchiseBusiness.com.au. 

Australian Established Franchisor of the Year: GJ Gardner Homes Australian Emerging Franchisor of the Year: Soul Origin International Franchisor of the Year: Fastway Couriers Multi-Unit Franchisee of the Year: Ryan Willsher, Finn Franchise Brokers, North Perth and Regional Western Australia Single-Unit Franchisee of the Year (two or more staff}: Nellie Dicks, Bank of Queensland, Richmond Single-Unit Franchisee of the Year (fewer than two staff): Beverley Taylor, InXpress, Bondi Franchise Woman of the Year: Sandra Carrington, Fad Cheer and Dance Field Manager of the Year: Eric Celik, Pack & Send Supplier of the Year: MST Lawyers Excellence in Marketing: Hire A Hubby Excellence in International Franchising: GJ Gardner Homes Franchise Innovation: Hire A Hubby Franchisor Social Responsibility: GJ Gardner Homes Franchisee Community Responsibility and Contribution: Ryan Willsher, Finn Franchise Brokers, North Perth and Regional WA Franchise Hall of Fame Inductee: Rod Young NextGen in Franchising, FranShark Competition: Aaron Smith, KX Pilates

NOVEMBER/DECEMBER 2017 | 12 | WWW.FRANCHISEBUSINESS.COM.AU

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THE LIST

7

INCOME-GUARANTEED FRANCHISES

Brands that support franchisees with a certain level of income can be an attractive proposition for first-time business owners.

L

aunching a business is always stressful, and one of the big worries is trying to ensure a steady cashflow and cope on a fluctuating income.

Some franchises offer an easy way in by supporting franchisees with a guaranteed income.

As well as easing the stress load, it gives new franchisees the freedom to focus their energies on building up their business.

Here are seven brands that provide a financial safeguard:

1

AUSSIE POOCH MOBILE

Aussie Pooch Mobile offers a guaranteed income for the first eight weeks in its premium franchise package, helping give new franchisees peace of mind while growing their business in the initial launch period.

“Obviously as company we are confident in our systems and know how our business grows, but a new franchisee does not necessarily share the same belief and confidence,” says founder Christine Taylor. “The guaranteed income helps give the franchisee the confidence that we will be doing everything we can to help them grow their business.”

Running for 20 years, it is an established part of the franchise offer. The guaranteed income is $600 excluding GST each week for eight weeks. If a franchisee earns $400 in a week, the franchisor pays $200; if they earn $599, they’ll receive the extra $1.

The money is placed on the franchisee’s Aussie Pooch Mobile account for them to use to pay for stock and royalties.

“We do as much advertising and marketing as possible leading up to and including the first few weeks of the franchisee’s launch to help them reach a point where they are earning more than the guaranteed income as quickly as possible,” says Taylor.

“The guaranteed income demonstrates to people coming into our business that we back our systems and know how to grow the business. It also shows them there is a real incentive for us to help them.

“Our goal is to have the franchisee earning the guaranteed income themselves from week one.”

A standard franchise package is available for those who do not want or need to rely on a guaranteed income.

2

CAFE2U

“We are so confident our Cafe2U business model will help franchise partners build the business to a minimum of $500 a day revenue in the first two weeks, that we will cover the difference if they don’t,” says George Angelis, general manager mobile at parent company Retail Food Group.

“This Acceleration Package is our point of difference. Not only are franchise partners offered support every step of the way during their business launch, they are guaranteed their income will build to a minimum of $500 a day, and they will be left with a strong customer base as a platform for their business to grow.”

This offer has applied for Cafe2U franchisees since 2009.

Return on investment is important for new franchisees, says Angelis. They want to know they will make a fair income for their investment and for the amount of effort they put into the business.

For 90 per cent of franchisees, it is their first business. Many have never made an espresso coffee previously. More than 98 per cent of franchisees achieve or exceed the level of success they aimed for before starting their business.

3

HIRE A HUBBY

CEO Brendan Green wants every Hire A Hubby franchisee to be as successful as possible. “Being able to offer an income guarantee is just one of the many tools we provide to newcomers so they can set up their business and make it flourish,” he says.

“Having an income guarantee policy gives the franchisee peace of mind, especially in the early days when there are a lot of unknowns.”

A few select franchise packages offer a $125,000 income guarantee. This is designed to be a guide and help in the initial stages of the franchise business. Hire A Hubby provides a support structure in terms of leads, guidance and training to give new franchisees the best opportunity to reach this income level in their first year.

If the level is not reached in the specified time frame with all conditions having been met, the franchisor will make a payment and offer further help to achieve these levels.

Since the income guarantee was introduced last year, the interest in joining Hire A Hubby has increased. There are now more than 300 franchises across Australia.

“The offering is a key selling point because for so many people the biggest leap of faith in taking on a new business is the fear of the unknown and of something not working out,” says Green.

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THE LIST

4

INXPRESS

InXpress franchisees enjoy the benefits of a recurring, compounding income business. The income guarantee offers new franchisees the chance to focus on the long-term success of their business knowing their day-to-day finance commitments are covered.

Introduced two years ago, the concept offers new franchisees a guaranteed income of $1000 +GST weekly for the first six months.

If a franchisee earns $300 in their first week, InXpress will “top up” an extra $700.

While the option does not suit all franchisees, there are other business-building options at InXpress. For approved candidates there is the Young Gun package, a full graduate training opportunity and mentor program. The exclusive program offers a six-month training internship with up to 50 per cent discount on the normal purchase price of a franchise.

5

LADIES RUNNING ERRANDS

Just months after launching its franchise model, the Ladies Running Errands service introduced an income guarantee.

“We found we were attracting people to our franchise system who were leaving stable, long-term employment in favour of the flexibility, earning potential and sense of ownership derived from self-employment. We believe the income guarantee provides predictable income and cashflow during this huge transition,” says franchise operations manager Zoe Voyanas.

The income guarantee provides a set weekly amount to the franchisee. The franchisee needs to fulfil their local marketing obligations and comply with the operations manual. If their weekly revenue falls short of the guarantee level, they receive a top-up from the franchisor.

The franchise investment is from $19,990 + GST, with the income guarantee starting at $400 a week for 12 months.

Ladies Running Errands has found the income guarantee effective in allowing potential franchisees to work out what their minimum revenue will be and how long it will take for them to see a return on their investment.

6

OVEN VALETS

“We feel it is important to hit the road running. A happy franchisee makes good business, so an income guarantee has always been part of our offer,” says Oven Valets sales and marketing manager Wayne Hunt.

Oven Valets franchisees work with homeowners, schools and business clients, providing a specialised cleaning and detailing service. The franchisor will provide five jobs each week for an initial eight-week period for most areas. The average job value for the past six months has been $285.

7

YARRA VALLEY FARMS

Yarra Valley Farms guarantees a minimum $2000 weekly gross income for six months, with a top-up if a franchisee does not make target.

How effective has it been in attracting new franchisees? “It’s a big advantage as it relieves the stress normally associated with starting a business. Franchisees can make money from day one,” says national sales and franchise recruitment manager, Darren Young. 

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COVER STORY

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THE TROPHY

LIFE It took Beverley Taylor’s brother a year to persuade her to find the courage and confidence to take up a franchise, and now she is a seasoned award winner.

B

everley Taylor is one happy franchisee. The bubbly ex-pat Brit has just been named a national winner at the Franchise Council of Australia’s annual awards, taking home one of four prized franchisee trophies.

And yet she has been working for herself and running her Sydney-based business for only four years. Winning the award was not anything she expected, but then neither was her business ownership.

Taylor admits to holding back when it came to leaping into a franchise opportunity. “I was so scared and did not have the self belief,” she tells Inside Franchise Business.

“I always dreamed about having my own business, but I didn’t have the confidence I would be successful. I certainly didn’t think I was clever enough to make it on my own.”

And when Taylor daydreamed about being her own boss, she thought her business would be based around a hobby, maybe jewellery making. Instead, she found herself in the very different world of logistics, and it has paid off.

“My background is in office management and being a PA for a small business, plus lots of telesales. I was a team leader for call centres. I moved to Australia 11 years ago and was fortunate the company I was working for in the UK had an office out here that was keen to sponsor me.

“Eventually, however, I was made redundant and moved into office management and the PA space.”

PUSH FROM BROTHER What was the catalyst for becoming a franchisee with InXpress, a global courier and freight sales consulting franchise?

“My brother introduced me to InXpress.

He and my father had carpet-cleaning franchises in the UK. They started with one unit, and after 10 years had built up to 10 units which they sold on.

“My brother had worked as a consultant with InXpress in the UK, and as they hadn’t been in Australia too long he spotted an opportunity in the marketplace and literally took a year off to persuade me, because I didn’t have the confidence to start a business.”

During the 12 months it took for Taylor to decide to buy a franchise, she researched franchising and attended InXpress conferences to find out what the business was really like.

Finally, she made the leap of faith. “One of the biggest challenges I faced was working on my own,” she says. “I still work out of my sunroom, and although I visit customers it can get quite solitary. You can be working three or four days just on your own.

“As an employee I’ve always had help on hand in the office to verify that what you’re doing is right, or whether there is a better way to do something. When you take on a franchise and you’re working from your sunroom, you just don’t have that on a day-today basis.”

Of course, there is plenty of backend support from the franchisor, which includes head-office support, training and mentoring, all starting with an intensive boot-camp training session to prepare franchisees for the role. The one-week course is not just about the business: mental wellbeing is discussed, and franchisees also gain insights into how to deal with situations that can have an impact on franchising.

Taylor also took advantage of the mentoring offered and opportunities to work with other franchisees.

NOVEMBER/DECEMBER 2017 | 19 | WWW.FRANCHISEBUSINESS.COM.AU

COVER STORY Beverley Taylor with a 2016 award winner and fellow franchisee, Shaun Birley

GREAT MOTIVATION Facing the challenge of starting a business with absolutely no customers and no income is a great motivator for any franchisee, and as Taylor says, “there is no substitute for hard work”.

“The only way to build is to get out and knock on doors. We actually do door-knocking as a core part of building our business.

Now it’s more telephone work.

“I’m lucky I get referrals from customers, but you just can’t take your foot off the gas at all – you have to be prospecting and getting new customers, otherwise you can’t grow.”

A low buy-in makes InXpress an appealing franchise investment, says Taylor, who admits that when starting out she could not afford to buy a car and for six months used public transport for her door knocking and meetings. A car was her first priority once she saw money was coming in and the business could turn into a success.

“My margin doubled in one month.

Before that it was a combination of lack of experience and leads not building up, then suddenly it seemed to click. Before that I had a lot of doubts and didn’t know if I’d made the right decision. When these figures came in it gave me the assurance that I was doing okay.”

Any logistics business depends on technology, and InXpress has an online portal where customers can book shipments. A backend system offers analytics to help franchisees assess the health of their business and customer profiles, giving them data to make informed decisions about which areas of the business need more time and effort.

TOP PERFORMER

THE TROPHY CABINET 2017 MYOB FCA Excellence in Franchising, SingleUnit Franchisee of the Year (fewer than two staff) 2017 MYOB FCA Excellence in Franchising, national finalist, Franchise Woman of the Year 2016 MYOB FCA Excellence in Franchising, New South Wales finalist, Franchise Woman of the Year 2016 InXpress Franchisor Choice 2015 InXpress People’s Choice 2015 InXpress Top Gun 2014 InXpress People’s Choice

Taylor has continued to build up her business, winning corporate awards along the way, including the treasured Top Gun trophy that goes to the best five performers at InXpress. “That’s one of my biggest achievements, winning it within my second year, because I overtook 15 franchises to get there.”

Another scoop was the InXpress People’s Award, a recognition of commitment to the franchise network. And now her trophy cabinet is even more impressive, with the FCA win.

“I’m not even sure it’s sunk in yet. I can’t believe that working out of my sunroom in Bondi I won a national award.”

Taylor is upfront about what it takes to achieve success. “It’s just working hard, attitude and determination, having the commitment to do what the franchisor teaches you,” she says. Following the drill

NOVEMBER/DECEMBER 2017 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

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

We’ve created a business format franchise model that takes away some of the challenges to achieving success in small business, with the support of one of Australia’s most recognisable brands.

Visit questfranchise.com.au or call 1800 809 913

COVER STORY

THE DAILY DOSE On a typical day, Beverley Taylor will be driving her business from the front end...but she still makes time for a touch of inspiration.

Activities: • Generating new leads and sales through door knocking and telesales • Dealing with customer queries, leading customer training sessions and building on customer profiles (account management/business development) • Attending meetings, predominantly for new business but also for account management and business development • An hour or two a day on average running the business from the back end: accounting, working with consultants, admin, internal training.

Beverley Taylor with FCA chair Bruce Billson will bring rewards, but putting that extra effort into customer service can take a business to the next level.

In her fourth year, Taylor has grown 50 per cent on last year. The next stage is to hire staff, with the challenge of finding someone with experience in telesales who has the drive to work from home. Other considerations are whether or not to take on a shared office space to allow for collaborative work.

MORE FLEXIBILITY In reflecting on how franchising has changed her life, Taylor says she has grown as a person. “I’ve grown in my knowledge

BEVERLEY TAYLOR’S TOP 5 TIPS

and confidence, and I will soon be earning more than I could have done as an employee without going back and doing further education.

“It was hard work for the first two years, but now I can literally work from anywhere as long as I have a mobile phone and an internet connection. I also have a bit of support now with answering the phone.”

That allows Taylor the chance to be away from her desk and visit family in the UK twice a year. “That flexibility is more important than money to me,” she says.

Of course, remote access means she is never far away from the laptop. “I’d love to have a week without a computer, but that won’t happen. You always want to keep an

Beverley Taylor believes research is essential before anyone commits to a franchise. Here are her top five tips for potential franchisees: 1. Do the research. Look at a range of franchisors and their models to determine what is right for you.

2. Talk to franchisees, not just franchisors.

Spend a day with them to see what they

“Every day, I will try and listen to a motivational or learning CD or podcast to continuously build on my skills, or top up on motivation and drive.”

eye on your business.”

Now Taylor has had a taste of business success, she has ambitions for her sunroombased business. “In a few years I’d like to be able to spend maybe three months in the UK each year. For the business, I want it to be a success, to have three to five employees so I can take a bit of a step back – that’s the dream, that’s where I’d like to be in five or 10 years.” 

do on a daily basis, and visualise and check that it is something you can, and would be happy, to do.

3. Take the leap. I was so scared I put it off for a year. If think if I’d started a year earlier, where would I be now?

4. Trust in yourself and put in 100 per cent.

5. Do the drill, put in the hours, follow the model, and the rewards will come.

NOVEMBER/DECEMBER 2017 | 22 | WWW.FRANCHISEBUSINESS.COM.AU

Be the

LEADER OF N W O R U O Y SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous.

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FRANCHISING

LEADERSHIP

NOVEMBER/DECEMBER 2017 | 24 | WWW.FRANCHISEBUSINESS.COM.AU

ACTIVE

SERVICE

MyFirstGym launches, and plans 150 outlets throughout Australia and New Zealand in next five years.

A

iming to address childhood obesity, the Alliance Wellness Group is rolling out a new-concept gym franchise. The group behind Goodlife Health Clubs has launched its initial MyFirstGym, an activity centre targeted at youngsters between seven months and 13 years old. It plans 150 locations throughout Australia and New Zealand over the next five years.

CEO Dan Newton says a gap was identified in the market for a franchise concept that targeted the growing incidence of inactivity in Australia’s children.

“There is a children’s obesity epidemic right now. Nine out of 10 kids just aren’t moving enough, which is the catalyst to do something,” says Newton.

“When you look at the rise of technology and how kids are spending their time on iPad, and you combine that with time-poor families, it’s all creating this risky space for the future of this country.

“With all those things going wrong, we said, ‘Let’s put in a one-stop shop for kids’ fitness and activity and try to provide a value proposition to the market.”

Extensive research followed on

children's activity patterns, obesity trends, household spending, children’s sport choices and Australian demographic changes. Census results were also analysed, and the business researched similar organisations overseas.

MyFirstGym in-house master trainer Grant Long worked through the science behind children’s development milestones and skill outcomes, covering from seven months to 13 years old, to design the class programs and assessment criteria.

MyFirstGym has been running in Christchurch for 15 months, with the Australian team taking the lessons from that to create the first Australian club in Hawthorne, Victoria, which opened in August.

Newton says initial franchisee interest has been “overwhelming”, with Queensland to serve as the initial platform for the concept in Australia before broader expansion.

The offer is looking to disrupt the traditional children’s fitness space by gamifying activities and classes for families. A “movement buddy” system has been developed that lets parents track their children’s movements via a phone app. Children wear a wristband during classes, that translates to a movement store, enabling competitions

and mini-games to drive engagement. “ Te c h n o l o g y is the problem in that many families use it to take activity away, but we’re giving it back to families in a positive way,” says Newton.

He says the group’s fitness experience has proved useful for this development.

“Alliance Wellness Group understands program-led models well, and is very focused on the importance of finding and on-boarding quality talent to lead classes.

“This is also true for identifying new franchisees. The business is all about inspiring and motivating kids, and passionate, genuine people need to be in these leadership positions.”

The group is also focused on the importance of location and a comprehensive community integration plan.

“A local community’s response is the make or break of this business,” says Newton. 

NOVEMBER/DECEMBER 2017 | 25 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

Fit for PURPOSE Gym group attributes its growth to listening to what members value, and keeping it simple.

C

an you remember a time before 24/7 gyms? The concept of all-hours access and no lock-in contract memberships has effectively revolutionised the Australasian fitness landscape.

One of the key brands to bring about this transformation is celebrating its 10th anniversary.

From humble beginnings on the Gold Coast, Jetts Fitness now has 214 gyms in Australia and 63 globally, catering for more than 200,000 members – success CEO Elaine Jobson attributes to the importance of listening to members.

“Other chains were losing sight of what the member really valued, then Jetts emerged with an opposite-end approach and ultimately set the tone for the biggest movement in the history of the Australasian fitness industry,” she says.

“Ten years on and more than 200,000 members later, Jetts is still centred entirely around its members and is committed to not losing sight of the most important thing – the customer.”

It all started when husband-andwife team Brendon and Cristy Levenson established the business, naming it after their son Jett.

Proving that a university drop-out can find success as an entrepreneur, Brendon used a loan from his grandmother to start a personal-training business when he was in his 20s. The next step was to buy a gym and begin developing the blueprint of what today is an international business.

“If you create and maintain an outstanding value proposition for your customer, which also works commercially, then you have the foundations for a great company,” he said in 2012 when he was awarded the Ernst & Young Emerging Australian Entrepreneur of the Year title. The previous year the fitness chain had been listed in the BRW Fast 100 compilation for its speedy growth, coming in at second place.

At the time, Levenson said memberships and franchise uptake had skyrocketed because cash-conscious consumers were too time-poor to make use of traditional

gyms. “The value proposition has not only paid off by giving members more freedom, but every franchise has been returning profits, on average after just three months in business.”

NOVEMBER/DECEMBER 2017 | 26 | WWW.FRANCHISEBUSINESS.COM.AU

A FRESH INCENTIVE FOR NEW FRANCHISEES!

The world’s fastest growing franchise Freshii is looking for motivated, dedicated and passionate franchisees to help us continue our growth in Australia.

Freshii Australia will provide a kiosk in high-traffic areas to new franchisees, along with training, set-up assistance, and marketing in an all-inclusive package for just $250k *.

Financial assistance options are also available (subject to approval process).

Our team has negotiated attractive lease terms in various locations throughout Australia in anticipation of this offer, and we look forward to helping our franchisees move up in an exciting new direction. For further information and expressions of interest, please contact:

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freshii.com/au * Disclaimer – Terms & Conditions apply.

All applicants will be reviewed on an individual basis.

LEADERSHIP

Top business tips

• Always stay true to your core values and purpose for doing business • Never underestimate the value of your culture, it’s what defines your brand • Do not lose sight of what is most important – the customer

SIMPLE MODEL With members even busier now, convenience is still critical in gym selection, says Jobson. “This is great news for Jetts Fitness franchise owners as our success is because of our simplicity. Many franchise owners have not owned a franchise before, but chose Jetts because of this simple model combined with our support network.

“Being first to market gives you a definite head start, but it’s vital to stay true to your core values and purpose regardless of your success. It is also imperative to keep evolving and listening to your customers.”

The key to the brand’s success comes down to one simple thing: the gym staff, says Jobson.

“You simply can’t make members happy if your people aren’t happy, and this is our key secret to success. We place a huge amount of resources and effort into building a positive team culture in our support office and right across our global network.

“It was great to see that effort appreciated when we achieved 23rd spot in the Great Places to Work Study Australia. It was an even greater accolade to know that Jetts was the only fitness brand and the only franchise in Australia to make the list.

“Although it’s hard to place a dollar figure

on reputation, it is an extremely valuable asset as it takes many years of hard work and dedication to achieve.”

10-YEAR

HIGHLIGHTS

LONG-TERM STRATEGIES As it is crucial for any gym to be up to date with trends and technology, Jetts has introduced functional training equipment and a special zone in gym layouts in response to a growing demand.

This development also allows the gym to offer small group-training sessions, such as HIIT (high-intensity interval training).

Jobson says the business focuses on long-term strategies that are in the best interests of members, rather than following fads.

If private-equity acquisition is a sign of a desirable product, then Jetts Fitness is right there – Quadrant bought the business in a $100 million deal last year. This put Jetts alongside another acquisition, Goodlife Health Clubs, under the holding company Fitness Lifestyle Group.

And the goals for the business for the next 10 years? “Further investment in technology, even more satisfied and loyal members, and a healthier and more active nation and world,” says Jobson. n

2007 Opening Australia’s first 24/7 gym with flexible membership options and no lock-in contracts 2010 Expanding internationally with a launch into New Zealand 2011 Celebrating the 100th gym opening 2012 Named by BRW as Australia’s top fastest-growing franchise 2017 Ranked 23rd in the Great Places to Work Study (Australia)

NOVEMBER/DECEMBER 2017 | 28 | WWW.FRANCHISEBUSINESS.COM.AU

$10,000

*

BUSINESS Builder Pack Terms and Conditions apply

Bev

Taylor

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

Jason

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

Hand

InXpress Franchisee

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Operating in 13 countries with over 360 franchisees globally, InXpress is now accepting applications to grow the Australian business.

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Saving is applied to purchase price and discounted at time of purchase only. Offer is available until the 22 September 2017.

LEADERSHIP

Women prove they CAN DELIVER

Paula Sabbouh

W

omen in leadership roles are making a mark at the CouriersPlease (CP) business, comprising 38 per cent of the senior management team. A year ago CP grew its female managers by 6 per cent, and by 9 per cent during its latest fiscal year.

Hoy Yen Hooper

CouriersPlease surprises as it increases the number of females in its leadership roles.

“It surprised me,” says COO Hoy Yen Hooper. “I’ve been here only three months. It’s very unusual in this industry.”

Hooper credits the change in the company, now owned by Singapore Post, to CEO Mark McGinley. She joined CFO Paula Sabbouh, the first female in that position at CP. And with national sales manager Sharon King, the sales team has partnered with major clients including Kmart, Sephora and The Iconic.

Women are ruling the roost in analysis, project management and customer service. One of these high fliers is Kirsty Truffley, acting head of customer experience, who has transformed the structure and working practices of the customer service team.

“She came in, looked at the numbers and key performance indicators, and restructured the team. Her priorities were to be a team coach, to raise standards,” says Hooper.

Human resources manager Daisy Jacobs started her department from scratch, and other women in management roles include national marketing manager Lissa Becker, national sales manager Wendy Bass and legal counsel Clare Matthews.

STRONG ENVIRONMENT The benefit of having a tranche of women leaders is that they can consult and work together as a management team, which encourages empowerment and creates a strong environment that is welcoming for women, says Hooper. “It makes it feel more comfortable and a psychologically safe environment.”

She believes that having females at a high level breaks down gender barriers and drives change and transformation “because it is all about the skill base and passion”.

NOVEMBER/DECEMBER 2017 | 30 | WWW.FRANCHISEBUSINESS.COM.AU

OWN OWN YOUROWN OWN YOUR FRANCHISE FRANCHISE Established in 1996, Australian Skin Clinics provides Established in 1996, Australian Skin Clinics provides injectables, acne programs and skin care products. injectables, acne programs and skin care products.

FRANCHISE BENEFITS FRANCHISE BENEFITS

• Custom IT systems with online sales and support.

• Custom IT systems with online sales and support.

• Nationally recognised courses and training programs for • Nationally recognised courses and training programs for therapists, managers and franchisees. therapists, managers and franchisees.

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LEADERSHIP

Hayat Horma

It’s not about gender, it’s about skills. I’m here because I can add value.

Not only are women heading key departments at CP, they are also helping drive parcel deliveries. Queensland and Victoria have the highest number of female delivery drivers and franchisees, at 22 and 13 respectively.

“It’s a pretty tough job. You’re working for 10 hours and there’s heavy freight. It could be more appealing to men, but females can do it as well,” says Hooper.

She knows the business well with a background in transport and logistics at DHL. Running a courier franchise is challenging, she says. The courier network is vitally important, and the goal is to build on the relationships between couriers and the franchise support team.

COMPLETE SHIFT

With e-commerce there has been a complete shift from working in a business-to-business environment to embracing the business-to-consumer model.

“I want to build a franchise experience program and make sure we attract quality people to the network, and invest enough in technology to drive efficiency.

The whole B2C process puts a lot of pressure in the network.”

Hooper is confident the company is well positioned to handle the e-commerce revolution.

National commercial manager Hayat Horma rolled out a myriad of innovations in the e-commerce space during her

time at CP, including its flexible delivery choices.

“We’ll be driving that for the next 24 months,” says Hooper.

“It’s great to be part of an organisation that provides opportunities for women.

It’s not about gender, it’s about skills. I’m here because I can add value.

“The logistics sector is changing, a shift we not only see at CP, but in other businesses in this sector, with Australia Post appointing its first female to the top spot. As online shopping increases and there are more parcels in the network, we look forward to seeing a further increase in the number of female franchisees we have on the ground.” 

NOVEMBER/DECEMBER 2017 | 32 | WWW.FRANCHISEBUSINESS.COM.AU

MBE

It’s like three businesses for the price of one!

Having a solid income stream from not just mail box rentals but also a printing business and a packing and shipping business, means owning a Mail Boxes Etc. franchise is like owning three businesses in one.

With Australian SME’s employing over half of the working population, together with the increase in numbers of home-based businesses, the need for basic business services like packing and freight services, printing, mail boxes and virtual office facilities are in high demand.

With over 30 service centres across Australia, Mail Boxes Etc. (MBE) is the only nationwide provider that offer all of these in-demand services and more, under the one roof.

We are looking for savvy business minded people to become our next franchise partners and part of our well established and successful worldwide franchise network.

By becoming an MBE franchise business owner, you’ll benefit from: • 35+ year proven business model • Monday to Friday trading hours • Multiple income streams • Extensive training Join one of the world’s largest international franchises today!

For further information about franchise opportunities both in Australia and New Zealand, please contact Franchise Department E franchising@mbe.com.au P 1800 556 245

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LEADERSHIP

DEATH OF DIY?

For many reasons people no longer have the time, inclination or knowledge for doing tasks around the home and in the garden.

Welcome the ‘do-it-for-me’ age, which means opportunity is knocking in the franchise sector.

S

enior research analyst Hianyan Chan in Euromonitor’s Home & Garden in Australia June 2017 report, says there is a shift toward outsourcing tasks such as home improvement and maintenance – the “do-it-for-me” trend. These services can often be found via websites such as Airtasker or Gumtree.

“The growing number of time-poor Australian consumers is expected to have negative impact on the sales of home and garden products,” says Chan. “This is because of the lack of time and knowledge to pursue an interest in gardening or DIY home-improvement tasks.”

He says this is likely to drive down demand for items such as lawn mowers, and gardening and hardware tools.

It seems like this could this herald an opportunity for franchises that offer home and garden services. To find out, Inside Franchise Business caught up with Fox Mowing & Gardening’s founder and national franchisor Phil Maunder.

1. HAS THE RISING DO-IT-FOR-ME TREND INCREASED DEMAND FOR SERVICES? I do agree, but there are other factors as well as just being time-poor. Over the past 20 or so years there has been a shift to smaller yard sizes. While this might suggest less gardening, it actually means people don’t have space for a shed to store their garden tools, so they have to use gardening services. They may also not see the sense in buying a mower and the other tools needed to look after a small yard, so it is easier and makes fiscal sense to use a gardening service. The aging population is another factor.

2. WHAT BENEFITS DOES THE FRANCHISE OFFER? By joining Fox Mowing & Gardening,

franchisees can take advantage of the 25-plus years of experience we have in the industry. Quite simply, this means larger territories, fairer fees, bigger opportunities, and, more personalised service.

3. DO FRANCHISEES HAVE ACCESS TO BUYING POWER? We have deals for equipment/insurance and other services, and provide expert knowledge to help franchisees buy the right equipment/services.

4. DO FRANCHISEES NEED BUSINESS OR GARDENING EXPERIENCE? No. Depending on their skill set, we tailor initial training to franchisees’ needs. We will sit down to work out the areas in which they need training and provide this, rather than re-train them in areas of proficiency.

Our initial training is all completed in a franchisee’s home state at no cost to them.

5. WHAT IS THE INITIAL INVESTMENT? The initial investment of $16,000 includes a trailer and equipment. We have done our best to make franchises as affordable as possible, but we do have a few financing options that vary from state to state and may also depend on demand. Our state franchisors have also developed excellent relationships with finance brokers.

6. HOW CAN A FRANCHISEE EXPAND THEIR BUSINESS? We expect about half of all Fox franchisees to just want a simple business that generates the income they want, with the hours they want to work and the time they want to devote to the business.

But it is flexible for franchisees who want

to develop and realise their full potential.

Most franchisees will find themselves in a position within a few years where they have as much work as they need. They may decide to either stop seeking leads, consider employing people and putting an extra trailer on the road, or sell off part of their business and rebuild.

TERRITORY SPLIT Selling off part of their business (splitting) is an attractive option for franchisees who do not want to employ people. It is also an excellent way for a franchisee to recoup part of their initial investment. Because of the substantial territory sizes Fox franchisees have, many will split multiple times over a period.

ADDING STAFF, CONTRACTORS, TRAILERS Some franchisees may hire staff and put extra trailers on the road. Some may even see themselves becoming purely managers of the business and doing little hands-on work. They may quote, help with larger jobs and manage their staff and customers.

BECOME A SPECIALIST Some Fox franchisees may prefer to develop their skills in a particular area such as lawn laying, irrigation, landscaping or paving. They can do any type of work they want as long as they have the appropriate licence (if required), the correct insurance, and they can complete the work to a professional standard.

Many franchisees find that developing their skills in a specialist area not only increases the profitability of their business, but also adds variety.

Once they have developed these skills, some franchisees may decide to employ a team of contractors to complete the work while they concentrate on quoting and maintaining their regular customer base. n

NOVEMBER/DECEMBER 2017 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

BEATING THE

BURNOUT

Hire A Hubby boss Brendan Green has found a way to save his franchisees from becoming victims of their own success.

T

oo many clients and too many jobs might sound like a good problem to have, but for franchisees who want a work/life balance, long hours can lead to mistakes, which can lead to eventual burnout. Such can be the price of success.

What can be done? Brendan Green, CEO of handyman franchise Hire A Hubby, decided the issue had to be tackled. “Franchisees have become victims of their own success,” he explains.

With that in mind, he began the task of recreating the business to provide a support

structure with systems easy enough for hard-working franchisees to adopt. “It starts with a mindset, coming up with some simple terms that resonate with the guys.”

He told franchisees, “You haven’t looked at your business plan since you started because you’re too busy, so you’re working without clear goals and there are no rewards.”

His suggestion is that franchisees start by asking themselves some simple questions: How many days do you want to work? Where do you want to go on holiday?

What will it cost, and who will run your business while you are away?

He provides a break-even document to which franchisees can add their expenses and work out how much they need to make each day, each hour.

MIND FLIP Will the business be run by the franchisee?

The “slow or grow” choice is in the hands of the franchisee. One answer Green has introduced is the “you and two” option – a franchisee can run the business and have two staff members do the grunt work.

Developing the business with extra staff

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LEADERSHIP entails a mind flip as well, as franchisees need to recognise they are no longer the central point or crucial factor in the business. This change needs to be conveyed to customers, says Green, so they understand what will happen and why a new face turns up to do the job for which the franchisee has quoted.

“It’s about explaining to the customer that you will be sending them your best painter or best carpenter to do the job.”

Franchisees are not pushed into being more ambitious, he says, but those who do not choose to expand need to be realistic. “If a franchisee doesn’t want to change, there’s no need. They should just stay robust in their decisions about how much work to take on.

“Our goal is to help our franchisees maintain a work/life balance, and to this end we have them identify a financial target measured in gross-profit terms. To help them maintain the work/life balance, we help them understand their two most important operational KPIs, which are their ‘lead to quote’ conversion rate and their ‘quote to invoice’ conversion rate.”

This has been affected by one of the major changes in the 20 years in which Green has headed up Hire A Hubby – the cultural shift to instant gratification.

“There was a time when you could call back a client the next day, but since the advent of the smartphone people want immediate feedback, and there’s a willingness to shop around. We’ve had potential clients call at 9am, then at 9.15 ring back to ask why they haven’t heard from anyone.

“We were always able to manage the leads to quotes and quote to invoices, we’ve just had to improve the customer experience.”

MORE EFFICIENT Green has implemented minor changes to the job allocation process, resulting in a 90 per cent drop in customer follow-up calls.

A message system provides reassurance to the time-conscious customer that they are in good hands.

“This simple process of adding a message to our customer advising the name and number of our franchisee that has accepted their job gives the customer peace of mind that their request had been acknowledged,” he says.

There have been other adjustments.

Tackling challenges that affect a quarter of the market was the focus of franchisor/

franchisee meetings attended by the company’s 15 best franchisees (five in each state) to improve the performance of franchisees earning $400,000 to $500,000.

“If business isn’t improving and franchisees ask for advice, it will always be the same. It’s tough love,” says Green. “Follow best practice – there’s only one way, not 14 versions. We want to influence them by evidence of success.”

Franchisees now have a choice of outsourcing their admin tasks. After visiting a customer and identifying the job requirements, the franchisee can voice record the details of the quote and send them to an administrator who can then do any or all of these tasks: work allocation, job confirmation, invoicing, scheduling and receiving.

Green says the improved process is seeing customer service “go through the roof”.

Another change is the removal of double data entry. With franchisees using the linked Salesforce and Xero programs, there is 93 per cent compliance and more efficiency.

Of course it is easier for incoming franchisees to be trained in the methodology, but longstanding franchisees have, over time, taken on the new systems.

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Follow best practice – there’s only one way, not 14 versions.

TWO DECADES OF CHANGE It is a long way from the days when Green started out in the business 20 years ago. “Hire A Hubby is a mobile service, but now franchisees have warehouses, offices with admin staff, workshops for painting off site or assembling furniture, and three or four guys and vehicles.”

Hire A Hubby now attracts people ranging from pastry chefs to police officers. One franchisee who spent 29 years working for Woolworths is now bringing in $1.1 million, says Green.

“We introduced an income guarantee in 2007, of $100,000 for the first year.

This attracted guys in mid-management.

It’s now changed to high-calibre professionals choosing the ‘you and two’ option; they can use their business skills and run it as a white-collar business.”

A new initiative is to link with manufacturers and install their products, such as garden sheds. The franchise has a strong relationship with Bunnings, and has just set up its UK head office in new premises in Milton Keynes, near London.

“Bunnings has just established itself over there. From a cost perspective, it’s a good location,” says Green.

A decision to remove the former management team saw franchisees reduced from eight to six in the UK. Since then the business has been building up its franchise portfolio, and by the end of September had 17 franchisees.

But there is still plenty of growth to come in Australia, with capacity for another 40 or 50 franchises, says Green. n

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LEADERSHIP

French

FLAVOUR

As the Delisse takeaway brand gears up for expansion, founder Mathieu Thomas says franchising is the preferred option: “We need people who will treat it as their own”.

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G

allic-inspired Delisse is a takeaway chain offering breakfasts and lunches, and just a little ooh la la.

The muse has been subtly translated into design – classic white bricks and baskets that echo the simplicity of a French freshfood market.

That subtle hint of European style is at the forefront of the food offer. When Mathieu Thomas set up in business, his aim was to offer busy corporate workers a convenient, fast lunchtime service with a focus on quality and taste. The concept was based on his own experience of working as a management consultant, first in France then in Australia, where he spotted a gap for a takeaway lunch with a difference.

He opened the first store in Sydney’s Martin Place in 2013. He readily admits not to having had any food retail experience, but teamed up with a hospitality veteran of 35 years to help bring the project to life.

“I wanted to do something for myself, something where I could see the outcome.

This was a concept where I could see results ‒ food and retail is quite obvious,” says Thomas. The business combines his customer experience, his French heritage and the need in the market for “a bit of diversity”.

“There was room for something with a bit more authenticity. I knew how Sydney was growing and could see the shopping centres were planning significant changes to bring food on board, so I thought it would be possible if we had the right concept … something not too different or extreme. If it’s too niche you can’t survive. People don’t have time to understand something too different.”

VALUE PROPOSITIONT Delisse has taken what works in the Australian market and given it a twist, using mainly European ingredients such as Italian, French and Spanish hams and cheeses, and baguettes.

Breakfast is a strong part of the business, says Thomas. “Coffee is a given, but we also have pastries and french toast. We use a baguette, so the toast is slightly different.”

Thomas says the food needs to be interesting enough to pull people in. “It has to be a value proposition for your clients to push them to walk an extra 20 metres.” And it is achieved through an uncompromising approach to food quality.

However, elevating authentic European deli items over local staples comes at a price, and Delisse deals with higher ingredient costs by being economical with size.

Instead of using 200g of Australian cheese, the business model is based on serving 100g or 150g of French cheese in a sandwich.

Now the business is growing Delisse can buy in bulk. The development of a central

kitchen has also boosted efficiencies, with outlet staff simply putting the final touches.

“We try to find the best balance of economy with scale through using the kitchen. We can grow more quickly and manage the quality better. We always wanted to grow. We need scale to be more efficient, and franchising was one way.

“It’s hard to find managers who can run things with extreme efficiency with the care factor that’s needed. It takes six months to find the right team. We need to have people who will treat it as their own, so franchising is the preferred option.”

CUSTOMER FOCUS He is looking for franchisees with personality, owner-operators who will run their outlet on a daily basis, who have business skills and understand the numbers involved, and will bring a strong customer focus that ensures they will go “above and beyond”.

Thomas is ramping up the recruitment.

One site has already been secured that will be redeveloped by next autumn, and he’s seeking to match franchisees and sites for next year. At the moment the Delisse locations mean the business is primarily a five-days-a-week offer, but sales show that a $25,000 turnover can be achieved over five days in a 40 to 45sqm site. “That’s the beauty of Delisse,” says Thomas, “it trades strongly in the morning and at lunchtime.”

Because of the central kitchen, the costs of setting up a takeaway outlet are less than other models. The only requirements are a cool room, an oven and a counter, says Thomas.

There are now three outlets in the Sydney CBD, one with seating. As the brand moves into further growth through franchising, the offer will be purely takeaway to allow for a focus on sales. The outlets (kiosks or in-line food spaces) will be designed to maximise efficiency. The ideal locations have a heavy footfall, such as busy

food courts and transport hubs.

Thomas has a goal of doubling the outlets to six within 12 months, in central Sydney and North Sydney. He then expects the rate of expansion to increase with a store network of 25 being the five-year plan … just within the Sydney metro area.

As yet the brand is not in any major shopping centres, but these are part of the growth strategy. “Of course we need to be extremely vigilant about rents,” says Thomas. “But the more attractive your business, the better the deals, and we are finding lenders are pretty keen to give us fit-out contributions.”

Finding the right location is one of two essential elements Thomas has identified as risky, so he has appointed a leasing agent to search and negotiate for the best sites. He has sought help from a franchise lawyer as well so he can be confident the franchise agreement serves the franchise relationship and sets clear expectations from the start. n

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LEADERSHIP

n o a r A o Z ll Z IP P

Pizza on the Go, the Pizza Capers truck, is designed to take the gourmet brand to outdoor venues – a new model available to both new and existing franchisees as a stand-alone franchise arrangement.

izza Capers’ mobile concept means the Queensland-based company can cater for demand beyond fixed stores, such as at food-truck events, music festivals and outer-city industrial parks, says managing director Sherree Halliwell.

Start-up costs are about $40,000, with ongoing weekly costs of about $800 over the five-year lease period.

To give an idea of what is involved for the franchiser, here is an overview of the average day for a Pizza Capers food truck...

8AM – VISIT THE FRUIT AND VEGETABLE MARKET At the market, produce and fresh ingredients are chosen for the day ahead. The pizza bases are supplied pre-baked, and the franchisee chooses items for the day’s menu from Pizza Capers in-store offering.

9AM – PREPARE FOR THE DAY’S TRADE It’s time to get chopping in the kitchen aboard the truck.

10AM – HIT THE ROAD Once the food has been prepared, the truck sets out for its selling location.

10.30 TO 11AM – SET UP FOR TRADE It is time to warm up the oven and ensure the ingredients are to hand. The counter is then set up with signs advising the menu for the day plus any special deals. Music is played so locals know trading is about to start (they can check Facebook for the local schedule).

Depending on the service, one person cooks and one serves. More staff may be needed for events. Pizzas generally take five minutes to bake.

1 TO 1.30PM – PACKING UP After the last customer, the team packs up. As a general rule, Pizza Capers follows local council guidelines for cleaning up.

Food waste is disposed of in a food-safe bin and waste water is dumped at designated points.

1.30 TO 2.30PM – BACK TO HEADQUARTERS

11AM TO 1PM – TRADING TIME The serving team swings into action.

permanent and secure parking at premises nominated by the franchisee (this can be their private residence).

2.30 TO 4.30PM – PREPARE THE TRUCK FOR THE NEXT DAY • Washing up and sanitising the kitchen • Refuelling the truck at a service station and if needed, charging the generator at home • Swapping/refilling the LPG tanks as needed • Refilling the fresh-water tank • Emptying the grey-water tank. 

Time to head back to the mobile kitchen’s

NOVEMBER/DECEMBER 2017 | 42 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

DOING HER

HOMEWORK

Unable to find a service that could keep an eye on her house while she was away, Natasha Morgan started researching and found a market niche she is now filling with her new franchise business, which has been quick to win recognition.

O

ften, the best ideas come from an “aha” moment. That was the case for Natasha Morgan when she was organising her first family holiday and wanted someone to check on her house while she was away. Busy relatives were a half-hour drive away, and she was struggling to find a reliable alternative.

After a little research, Morgan discovered the home-watch industry in Canada and the US. Six months later, she launched My Home Watch. Another seven months down the track, she was named a silver award winner in the Big Idea category of this year’s AusMumpreneur awards.

Morgan says the accolade has boosted both the company’s credibility and its branding. The judging covered all aspects of the business: concept, growth, funding and development.

Obviously as a big idea, it needs to be scaleable, and the judges were also interested in how the finalists juggle their motherhood duties with their business.

“It comes down to your values, and how you make it work,” says Morgan.

While her business is flexible enough to cope, about 80 per cent of her franchise inquiries so far have been from men. They include seniors bored with retirement, tradies or hairdressers looking for less physically demanding work, and people who have been made redundant.

The premise is simple: absent homeowners can employ My Home Watch franchisees to undertake myriad

tasks, each a separately billed activity.

Most popular are home checks, mail and bin services, garden watering and pet care.

CAN UPSELL Morgan says 80 per cent of inquiries come from pet owners, and with a variety of options available franchisees have the opportunity to upsell.

In a link with tech company Netgear, My Home Watch also offers security cameras for hire for up to three weeks as an extra level of reassurance for clients.

Of course, franchisees need above all else to be trustworthy, and need to undergo police checks and gain a security installation licence. Morgan says her wish list includes traits such as liking pets and being able to work with homeowners and real-estate agents.

She sees the agents as a potential source of revenue and is considering introducing a loyalty program encouraging their support.

Morgan knows from experience what is entailed in looking after properties as in a former career she cared for homes worth $15 million for a prominent highnet-worth family.

To help franchisees in one of the 120 territories available, there is no franchise fee for the first six months. As their business grows, franchisees can employ one staff member, then have the chance to split territories for further expansion.

Meanwhile, Morgan did find a house

sitter for that family holiday. “But it wasn’t a great experience,” she says, “because we found out that they stayed at the house only twice in the whole three weeks we were away. So very unreliable. We were really disappointed when we found out.”

My Home Watch has exclusive rights to a reporting software system (in Australian and New Zealand) which provides geo home reports that prove franchisees are servicing the homes and homeowners pet needs.

“That is where the professional service option is fantastic – it totally alleviates the stress.” 

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Her wish list includes traits such as liking pets and being able to work with homeowners and real-estate agents.

LEADERSHIP

A BEACON

OF LIGHT One major café brand is getting behind Australia’s youth with a new initiative that supports youngsters move from education to employment.

J

amaica Blue officially launched its fundraising program for charity partner, Beacon Foundation, during a breakfast event at its flagship cafe at Sydney’s Entertainment Quarter. Speaking at the event, Serge Infanti, managing director of parent company Foodco, said that Jamaica Blue is passionate about supporting franchisees.

“We try to do the best we can to make successful people and guide them through their business ventures,” he said.

Now the business has taken its support one step further and is backing the Beacon Foundation in its mission to help young people successfully transition from education to meaningful employment.

“Youth unemployment is at 12.5 per cent in Australia, and up to 25 per cent in some areas. So, as an employer of many young people across the nation, we feel Jamaica Blue has a responsibility to support its local communities,” Infanti said.

“Seventy one Jamaica Blue cafés have a Beacon partner school in their local community and our fundraising efforts will enable Beacon to run its successful High Impact Programs in these areas.

“I’m very passionate about helping young people into the workforce,” he continued.

The 71 cafés across Australia have a Beacon partner school in their local community will be given materials to assist them with fundraising money for a High Impact Program for a high school in their local community. A High Impact

Programme costs $2750 to run.

Fundraising started at the end of October.

Scott Harris, CEO Beacon Foundation, said “The transition from secondary school to further education, employment or training is one of the most important in setting students up for success in life. Jamaica Blue’s fundraising efforts will allow Beacon to continue inspiring participants, and kick start the working lives of high school students,” said Scott.

After discussions with a panel of FoodCo executives who shared their career journeys, experiences and workplace advice, the students from Blacktown Girls High took part in a barista workshop.

Student Ghashia Maqsood, 16, said of the experience: "It has given me hope and a different perspective to my career. It is more effective to hear from people who have been through the process".

And fellow student Bianca Barton, 17, said "Knowing that failing is ok to do within your life has made me more comfortable with challenges". n

NOVEMBER/DECEMBER 2017 | 46 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

FIVE MINUTES

WITH MAD MEX’S

PHILLIP BLANCO Phillip Blanco is director for national development at Mexican fast-food chain Mad Mex.

1. What is your personal strength in business?

Building strong interpersonal relationships, having an entrepreneurial vision to recognise opportunities in the market and to grow and develop them. I love retail and hospitality, and this flows out of my enjoyment of working with teams and serving customers.

I’m all about the customer experience.

2. What have you learned about franchising?

It’s all about people. You can’t build a great brand without surrounding yourself with great people. Good character is the primary requisite, after which passion and talent must follow. We’re in the service industry, so you have to love serving people and exceeding expectations.

3. What does it take to have an efficient franchise model?

You need a solid foundation so people are free to focus on leading, coaching and developing their teams. There are seven core elements...

Franchisee selection: It is important that franchisees are “on-brand” as they hire, train and lead the in-store team and deliver the brand experience.

Store development: The basics for developing a new store are a great site, lease negotiation, design and project management.

Training: Providing comprehensive training from the start is a must, as well as investing in constant upskilling.

Ongoing support: Franchisees really want someone to help them develop and execute comprehensive business growth and development plans.

Product development: Customers expect innovation.

Marketing support: The marketing team in many ways shapes customer perceptions

of our brand and what we’re about, so it is important we never lose sight of our “true north” and those ideals we never compromise on, so it’s brand first then products and promotions.

Supply and distribution: Supply-related headaches sour franchisor relations very quickly if not dealt with. Franchisees have a right to expect great pricing, quality and distribution, and it is the franchisor’s job to make sure this area of the business is as robust and efficient as possible.

4. What do franchisees want from their franchisor support team?

I think franchisees want strong and positive relationships with people they can depend on – a team that can help guide them in growing and developing their business. This goes well beyond the initial set-up and honeymoon phase.

5. How does a franchisor foster trust in the relationship with a franchisee?

You must have caring, honest and transparent relationships to build trust.

When the trust bank is high, the brand prospers. Great franchisee relationships are the key to success. Listening is very important. Stop listening, and things break down quickly.

6. What can franchisees do to ensure a good relationship with the franchisor team?

Communicate. Make your voice heard. I find that too many of our franchise partners keep their thoughts and ideas to themselves. This is a mistake, as franchisors need feedback to better understand their business and how they are going. We have quarterly state meetings, anonymous surveys and annual conferences to ensure we’re gaining as much interaction and feedback as possible

from our franchise family.

7. In your experience, what is the most common mistake franchisees make?

Hiring the wrong people – people who are not on-brand and who are not really capable of delivering the brand experience.

If you have the wrong people working in your restaurant, the customer experience suffers and all the marketing in the world won’t save you. It’s all about getting the right people onboard.

8. What do you look for when interviewing a prospective franchisee?

Energy, positivity, and passion. We look for people who are “people, people”. We can teach them our systems, but we can’t change their natural disposition. Our brand experience should be a fun and a bit cheeky, so we look for people who can deliver that in our restaurants.

9. What do you think is the most important quality a franchisee needs?

A genuine passion for delivering outstanding customer service.

10. What does it take for a franchisee to be a star performer?

Living the brand values. For us, that’s being “cheeky, authentic and connected”.

A lot sits behind these three adjectives, but when you bring them together you can build a great team and a great business. business protocols. 

NOVEMBER/DECEMBER 2017 | 48 | WWW.FRANCHISEBUSINESS.COM.AU

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INDUSTRY SPOTLIGHT

A PIZZA ON

THE ACTION! No matter which way you slice it, the pizza industry keeps growing and evolving, but being among the top players involves both innovation and technology.

By Domini Stuart

J

ust a decade ago, nine out of 10 pizza orders were for traditional favourites such as Pepperoni, Supreme or Hawaiian. Today, many consumers are opting for a more gourmet pizza experience despite the relatively high cost.

“Both food-related television programs such as MasterChef and rising disposable incomes have supported growth in the gourmet pizza segment,” says IbisWorld senior industry analyst Bao Vuong. “The success of Crust Gourmet Pizza Bar over the past five years suggests there is still scope for growth, but with increasing competition, brands may need to offer higher-quality products at lower prices to stay ahead of the curve.”

It seems that leading brands have also noted the trend.

“After a period of extensive discounting, we’ve started to see more premium ranges with higher-quality ingredients and, therefore, higher price tags,” says Euromonitor International senior research analyst Bettina Kurnik. “For example, the Domino’s revamped Premium range retails at a recommended price of $15.90 a pizza compared with $12.95 for its previous Chef’s Best offering.”

When Eagle Boys Pizza failed to respond to changes in the market, it paid a high price. In July last year the head office and all company-owned outlets were placed in voluntary administration. However, several franchisees continued to trade until they were acquired, and rebranded, by Pizza Hut

in a bid to solve problems of its own. According to Roy Morgan research, the chain was hit by a 25 per cent decline in market share between 2012 and 2016.

“Acquiring Eagle Boys has enabled Pizza Hut to expand its store network and brand presence,” says Vuong. “It can also take advantage of economies of scale to boost profitability and Bao Vuong revenue.”

He also believes that if Pizza Hut is to stay competitive, it must upgrade its equipment, boost its advertising and learn from the Eagle Boys debacle by keeping pace with changing consumer preferences. “It also needs to improve restaurant technology and focus on digital initiatives, like Domino’s ordering applications.”

TECHNOLOGY PIONEER Domino’s is widely regarded as a pioneer in using technology to engage with customers, customise its offerings and ensure faster delivery.

“It introduced zero-click ordering last year, launched a digital gift card and – in a world first – used a drone to deliver a pizza in New Zealand,” says Kurnik. “Now the company is experimenting with preparing, cooking and delivering a pizza within 10 minutes.”

She anticipates that Domino’s and other major players will continue to aim for higher spend per transaction by extending their

Bettina Kurnik

menus. “One example was Domino’s Taste the Colour initiative, which included a range of new pizzas, sides and desserts to encourage consumers to add to their orders.

“The strategy appears to be working.

Last year we recorded a 5 per cent rise in value per transaction over the previous 12 months – a standout result, given that during the preceding review period the figure was hovering between 1 and 2 per cent.”

However, it has not all been plain sailing for sector leaders. Domino’s shareholders were not impressed when Australian and New Zealand same-store sales fell short of its guidance. And both Domino’s and Pizza Hut have faced wage payment controversies over the past year, though both have taken steps to rectify the situation.

“Domino’s announced its own investigations into wage frauds and appointed business advisory firm Deloitte to examine its compliance processes,” says Vuong. “Pizza Hut signed a compliance deed with the Fair Work Ombudsman to ensure employees receive the right pay and entitlements, and engaged a

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Pizza Capers

third-party payroll provider to help franchisees meet their wage obligations.”

ENOUGH ROOM Despite the controversies, Vuong believes there is enough room in the $3.7 billion market for both leading brands to succeed.

“Australia’s population growth, especially in the outer suburbs of capital cities, will continue to open up new markets,” he says.

“In fact, the growth is now outpacing many

I believe the most important thing we do is respect the fact that people have a lot of calls on their income. If they decide to spend some of their money with us, we’re going to make sure they feel welcome and valued.

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INDUSTRY SPOTLIGHT

Now the company is experimenting with preparing, cooking and delivering a pizza within 10 minutes.

La Porchetta

Crust

existing pizza franchises, which is creating opportunities for new businesses.”

Vuong also sees opportunities for smaller pizza companies that can differentiate themselves from the major chains. Already numerous small, independent and locally focused pizza restaurants are working across Australia, he says. “Providing premium, gourmet or even healthy pizzas could enable others to develop their own niche in the market.”

Also possibly working in their favour is the growing popularity of online ordering services like Deliveroo, Foodora, Menulog and Ubereats.

“One of the most significant technological advances over the past five years has been the widespread implementation of online ordering systems among the industry’s larger players,” says Vuong. “Smaller companies tend to lack the capital to invest in customised software, or the sales volumes to justify the cost of the investment. Third-party platforms take a cut of proceeds in exchange for providing the option of ordering online, which can expand a smaller business’s customer base.”

MAJOR ROLE All along, Crust Gourmet Pizza has been playing a major role in transforming pizza from basic fast food to an authentic dining experience.

“Ours has always been a premium

product offered at a premium price,” says general manager Renee North. “We created a niche by focusing on quality in everything from the ingredients to our delivery service, and we don’t discount as a general rule.”

The market has changed significantly since 2001, when the first store opened in Annandale, in inner Sydney.

“Australia is in the middle of a food revolution,” says North. “Third-party delivery services are providing easy access to an endless choice of cuisines, and this is changing and fragmenting the market.

Quality and convenient meal options combined with growing awareness of health and wellness are driving further change in terms of offerings and ways of helping consumers manage their busy lives.”

To stand apart from the increasing competition, Crust is focusing on ways to improve the customer experience.

“We have a product innovations chef and support team who are employed to develop new menu items,” says North. “We like to stay ahead of the latest food trends at home and abroad so we can introduce new ideas before they become mainstream.”

Crust has added salads and tapas to the menu to help cater for a wide range of tastes and dietary requirements. “The launch of our first vegan pizza last November was so successful we have introduced two more vegan products.”

Crust plans to continue to develop two new areas of business next year. The first is a corporate catering service, tapping into

the lucrative lunchtime market.

“We’re offering streamlined ordering through a new bespoke catering platform, and delivering direct to meetings and events,” says North.

The second is an alcohol-delivery service, which won the award for Best Food & Beverage Innovation at the Quick Service Restaurant Media Awards.

“Customers in some areas of Victoria can now order beer, wine or cider with their pizza, and we’re planning to roll out this option across Australia,” says North.

CONSUMERS LOSERS Meanwhile, Pizza Capers general manager Sunny Olak believes consumers were the losers in the big chain price war.

“Those brands sacrificed quality and generosity in a fight to acquire customers at the lowest possible cost,” he says.

“We’re bringing it back to providing a good, generously topped pizza, and we introduced the Tracker Tracker campaign as a cheeky way to challenge our competitors in taste and quality, a space we know we can win.”

He believes consumers are looking for fast food that is also real food made from fresh, quality ingredients. “Of course people are value-conscious too, but, in our experience, they’re happy to pay that little bit extra for a quality meal.”

Olak considers innovation to be as

NOVEMBER/DECEMBER 2017 | 52 | WWW.FRANCHISEBUSINESS.COM.AU

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INDUSTRY SPOTLIGHT

Pizza Capers

fundamental to success as the overall eating experience. “We pride ourselves on our ability to be innovative, not just in terms of new pizza flavours but also in the way we cater for different occasions,” he says. “For example, our lunch menu includes the Phat Boy Pizza Wraps range.”

He also acknowledges the changing role food plays in a digital age. “Food is a very important part of our customers’ social lives so it needs to be made to share – and not just around the table,” he says. “Social media and bloggers are hugely influential, so the food must be Instagrammable too.”

Pizza Capers aims to recruit more

young millennials next year with special student product offers, events and an exclusive sector partnership with Red Bull. A Tracker Tracker on Tour campaign will also develop the role of the brand’s consumer champion.

“He’ll be touring the world discovering different cuisines, which will then appear as new flavours on our menu,” says Olak. “We’ll be kicking off with a spin on trending dishes from Japan and the US, and following up with more international toppings over the coming months.”

There are also plans to expand Pizza Capers’ range of vegan pizzas and calzone by releasing new flavours twice a year.

“We know our customers are open to new experiences and appreciate our innovation,” says Olak. “We have the awards to prove it – we received Canstar’s Most Satisfied Customer (Pizza) five years in a row.”

DIY CONCEPT Over at Pizza Pasta Please P3 in Sydney’s west, the concept is built around speed, choice, freshness and value in a family atmosphere. Customers can construct their own pizzas from a range of bases, sauces and toppings.

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LOOKING TO BUY AN INVESTMENT PROPERTY?

YOUR TRUSTED PROPERTY PARTNER For more information please contact us: Phone: 1300 99 55 12 David Pascoe: 0488 11 55 33 Email: david@buyaustralianproperties.com.au

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INDUSTRY SPOTLIGHT

PIZZA CAPERS

Unique selling point “We give our customers a fun, generous, ‘craveable’ and accessible Foodie experience.”

Number of outlets In Australia, 76, with five outlets opening in India by December.

Target customer “Our existing customer base is generation X and older millennials.

Our growth target is younger millennials.”

Cost of entry About $400,000 initial investment, depending on the site.

Ideal franchise partner “Our people have a passion for food, fun and the Pizza Capers brand, along with a sound understanding of business management or the desire and capability to learn. Previous experience in hospitality is of interest but not essential.”

CRUST GOURMET PIZZA

Unique selling point “A Crust Above – we take the pizza and in-home takeaway occasion to the next level.”

Number of outlets More than 160 stores nationally with a growing network in New Zealand, Singapore and the US. Target customer Older millennials and generation X, plus dinks (double income, no kids).

Cost of entry Up to $450,000, depending on the site.

• • •

PIZZA PASTA PLEASE

Unique selling point “Fast, fresh, affordable family food.”

Number of outlets One, with plans for 10 by the end of next year..

Target customer Families.

Cost of entry About $500,000, depending on the site.

Ideal franchise partner “It’s very important our people are like-minded with a deep understanding of the brand. Our employees have disabilities, so we need franchisees who are compassionate with the patience and determination to build a skill set and relationship that will bring long-term rewards. Other than that, franchisees don’t need any experience – the system and our training have been set up so everything falls into place.”

Ideal franchise partner “Our franchise partners are passionate about quality food. Our ingredients are sourced locally to support the community, then everything is prepped and cooked fresh every day, including our handmade dough. Our partners reap the benefits of being heavily involved in their stores, so we look for people who are willing to put their heart and soul into their business. We also favour proven business acumen and people with the desire to branch out on their own with the power and support of our franchise system behind them. Successful Crust applicants exhibit a strong sense of professionalism and a customer-focused attitude. It’s not just about making great pizza. You also need to be well-rounded in all aspects of the business.“

“We then cook your pizza in front of your eyes in just one minute and 45 seconds,” says owner Andrew Osborne.

“If you prefer pasta, you have the same freedom of choice in terms of both the pasta and the toppings, and your meal is ready in the same time.”

Osborne says the brand was four years in the making, including investment in the services of a psychologist and cognitive scientist, who helped him to shape the long-term strategy. But Osborne claims not to have spent a cent on marketing or advertising.

“Our success so far is all down to word of mouth,” he says. “People like the fact we provide fresh, tasty food the whole family can afford to enjoy – you pay $12.99 for any pizza or $15 for a bowl of pasta big enough for two people to share.

“We also cater for every preference with options including gluten-free, vegan and halal. And I believe the most important thing we do is respect the fact that people have a lot of calls on their income. If they decide to spend some of their money with us, we’re going to make sure they feel welcome and valued.

They appreciate that – and they tell their friends.”

There is also another side to the story. The company won the 2017

Campbelltown Local Business Award for being the most inclusive employer in the region.

“We are committed to providing opportunities for people of all abilities, and many of our staff are deaf,” says Osborne. “Inclusivity is a win-win strategy. People who find it hard to get a job have a chance to earn a living, and we have a very capable, efficient and loyal workforce while other brands are struggling with an industrywide skills shortage.”

So far, eight franchisees have been approved and Osborne expects to have 10 stores up and running by the end of next year.

“Our focus is on sustainability as well as growth,” he says. “The babies and children who come in today will be our target market in 15 or 20 years’ time, so we want to make sure the whole family has a really good feeling about the brand.”

Meanwhile, Vuong expects the overall market for pizza to continue to grow steadily over the next five years. “I think we’ll see more of what we’re seeing now,” he says. “Stiffer competition among franchises and from external competitors will drive increased expenditure on technology along with faster product innovation.” n

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

- Stewart, East Sydney Franchisee

PIZZA STATS

IbisWorld’s Pizza Restaurants and Takeaway in Australia report in June found: • The sector has 4004 businesses • Industry revenue sits at $3.7 billion, with profits of $269.7 million • Revenue is expected to grow by a compound annual 2.8 per cent over the next five years According to Euromonitor International: • Domino’s Pizza is the market leader within the pizza consumer foodservice sector in Australia, with a 33 per cent value share last year • Value per transaction within chained pizza consumer foodservice rose by 5 per cent last year from 2015

INDUSTRY SPOTLIGHT

NO NEED TO

BREAK THE BANK If you would love to run your own business but don’t have a lot to invest, consider taking up a budget franchise - there are many available, and there are benefits.

By Domini Stuart

B

udget franchises – generally those with an initial investment of $50,000 or less – often bring a string of benefits beyond the relatively low price.

Many are home-based, so the overheads are low, and you could have the freedom to work when you choose, such as only during school hours.

You can enjoy the same benefits you would expect from a more expensive franchise, such as training and the support of a business network, but a budget franchise also requires the same commitment to hard work. You are effectively running your own business, and the fact it is part of a franchise

system does not make it an easy ride.

If you think a budget franchise might be right for you, here is a sample of options available...

HOME SORTED! Franchise fee: $19,990 plus GST Extra costs: Reliable car, internet access and mobile phone Royalty fee: Flat rate of $99 a week Marketing levy: None Agreement terms: 5 years with an option to renew If you enjoy being organised – and organising other people – Home Sorted! could be an ideal and profitable business to consider.

“Our franchisees charge $80 to $100 an hour for their services and, as it is a home-based business, overheads are low,” says founder/CEO Nina Rosace. “You can easily run the business on your own or, if you prefer, build your own team.”

No experience is necessary. Home Sorted! provides training and all the business tools needed. “Our business consultants are always available for ongoing support, and they also source business for you.”

Rosace says she looks for franchisees who are great listeners with a genuine desire to help. “Everyone feels overwhelmed and stressed by mess sometimes,” she says. “Our franchisees help people to feel more relaxed within their well-sorted home.”

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LOCAL POOL INSPECTIONS Franchise fee: $25,000 Extra costs: Reliable car, internet access and mobile phone Royalty fee: $20 an inspection Marketing levy: $5000 a year Agreement terms: 5 years with an option to renew Queensland has more than 360,000 privately owned swimming pools, with 10,000 more being installed every year. Each one must be inspected and awarded a safety certificate whenever the property is sold, bought or leased.

Pools used by the public at hotels, motels and resorts must also be inspected and certified every year.

“Our franchisees provide a service

required by law,” says founder Bob Walliker. “You don’t need any experience.

We provide the training you need to gain the necessary government licence. We even provide finance without interest to approved applicants. What you do need is commonsense and a desire to succeed.”

Advertising runs continuously in each area, and jobs are allocated from a central call centre. “We supply the work, you make the appointments,” says Walliker.

“There are no fixed hours, so you can arrange your visits to suit your lifestyle.”

ORIGINAL POSTER COMPANY Franchise fee: $4700 Extra costs: Stock, with a choice of

two entry points – $22,040 plus GST, or $37,990 plus GST (both include the franchise fee); reliable car, internet access and a mobile phone Royalty fee: None Marketing levy: None Agreement terms: 5 years with an option to renew Original Poster Company (OPC) enables retailers to create an extra revenue stream through greetings cards.

“We look for franchisees with a basic understanding of business, good sales and marketing skills, and the confidence to deal with business owners,” says Australia master franchisee Caroline Esmond. “We provide training and support for the life of the franchise.”

OPC is a home-based franchise with

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INDUSTRY SPOTLIGHT

low overheads. “Your income depends on the number of retailers you supply and, as the franchise areas are expansive, you have plenty of opportunity to grow your client base,” says Esmond. “There is also potential to build up your area, sell half and keep the other half yourself or, in some cases, to buy an extra area.”

SHOEBOX BOOKKEEPING Franchise fee: $29,990 plus GST Extra costs: Reliable car, internet access and mobile phone Royalty fee: 7 per cent or $450 (whichever is greater) Marketing levy: 3 per cent Agreement terms: 10 years with an option to renew As a Shoebox Bookkeeper you can earn a good living working from home, either full time or around family commitments. While you need to be a BAS agent within 12 months of owning your own business, you can work under the franchisor’s umbrella while studying for the qualification.

“We provide training and support for all our franchisees, including personal supervision for the first six months,” says co-founder Yvette Coad, who manages

5

VITAL

recruitment, marketing and sales. A kickstart marketing campaign includes local radio advertising and a starter pack of marketing materials.

Shoebox Bookkeeping also takes the guesswork out of cash flow. “Most clients sign up to a monthly system, so you know exactly how much you will be earning,” says Coad.

costs, you should never stint on due diligence.

“It doesn’t matter whether you’re investing $20,000 or $1 million, this is money you don’t want to lose,” says JarzaWhatever the cost, every investment in a bkowska. “From a commercial perspective, you need to know the numbers stack franchise requires careful consideration. up, and from a legal perspective that you Here are five important questions understand the risks and have taken steps to ask, as suggested by franchise to contain them.” consultancy DC Strategy CEO Suzanne The Franchising Code of Conduct Jarzabkowska and colleague Neil Soares, advises franchisees to take advice from general manager… professionals with franchising expertise.

“Altogether, you should not have to pay 1. WHAT IS THE TOTAL COST? more than a couple of thousand dollars,” says Jarzabkowska. “That is money well The franchise fee is the cost of getting spent.” into the business, but there may be other essential outlays such as special equipment, 3. WILL YOU RECEIVE SUFFICIENT stock or a vehicle. Some franchisors charge for training, legal costs and administration.

SUPPORT? “This can add up to a significantly higher figure than the one advertised,” says Some franchisors are so determined to Jarzabkowska. “All costs should be broken keep down costs they underestimate down and listed in the disclosure document. their own ongoing costs.

“Professor Lorelle Frazer of Griffith If they aren’t, the franchisor is in breach of University estimates that it costs about the Franchising Code of Conduct.” $8000 for a franchisor to find each franchisee,” says Soares. “When you add 2. IS EVERYTHING AS IT SEEMS? extras such as induction and training there may not be much left to generate However keen you may be to contain your the revenue needed to support a growing

QUESTIONS

All in all, it is possible to build profitable and sustainable businesses from a low-cost start. Many people are already doing this, and there is no reason you should not join them. Just remember that the same rules apply across the franchising spectrum – do your homework, do your due diligence and seek expert professional advice. n

network and help become established.”

new

franchisees

4. ARE YOUR EXPECTATIONS REALISTIC? It costs money to live, and it could be a while before you earn enough from your new franchise to cover your bills.

“You need to be very clear about when your business will start turning a profit, and what that profit is likely to be, so you can calculate how much you need in the bank to cover your day-to-day outgoings,” says Soares.

5. HOW HARD WILL YOU NEED TO WORK? Jarzabkowska recommends asking the franchisor for up-to-date financial data from other franchisees or corporate locations. “You can then calculate how many goods or services you have to sell on a daily or weekly basis in order to be profitable,” she says.

“Any franchisor will tell you that the most successful franchisees are prepared to work hard, especially when they’re starting out, so you need to know what’s expected of you.”

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

In the recently published Australian Top Franchise awards, Fifo Capital was rated in the Top 5 Franchises for the Lifestyle category, as voted by our Franchisees.

The network’s performance has been amazing in 2017. Turnover for the year was over $260 million, bringing our total lend to well over $1 billion!

We have only scratched the surface of this huge industry and we are now ready to take the business to the next level.

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

With potential returns in-excess of 50% annualised per annum, highly secured assets and very low overheads, there is simply no business model that can compare.

“The Fifo Capital business model is fantastic, with minimal effort you can generate high returns, its a great lifestyle business with few overheads.” Jane Lombard – Fifo Franchisee

The key driver behind our success is undoubtedly the people. Our Business Partners provide a highly valued service to the SME community and received a Net Promoter Score (NPS) of +63% from their clients for 2017.

Find out more about this opportunity

To make your journey easier, we now have an Investor program running providing capital. You can use your own capital or our Investor capital and lend funds using our proven systems and processes.

Would you prefer just to be an investor?

We want to talk to you also!

Andrew Roberts 1300 852 556 I 0438 801 575 www.fifocapital.com.au

CALLING ALL COFFEE CONNOISSEURS! Gloria Jean’s Coffees have new Drive Thru and Traditional store opportunities available now across Australia.

Don’t miss your chance to join a leading Australian franchise brand – contact us today!

Finance options are available subject to lenders terms and conditions.

For further details on this exclusive offer contact Kellie Cranch on 0401 058 607 or email kellie.cranch@rfg.com.au www.franchising.gloriajeanscoffees.com

Our new express takeaway kiosk A unique unique format format designed A designed around around price price for for those those who who may not have the capital to purchase a larger store! may not have the capital to purchase a larger store!

*Includes: *Includes: kiosk, kiosk, equipment, equipment, Initial Franchise Fee, training and Initial Franchise Fee, training and local area marketing launch, with local area marketing launch, with overheads typically lower than a overheads typically lower than a traditional store. traditional store.

Contact Contact Kellie Kellie Cranch Cranch 0401 0401 058 058 607 607 or or email email

kellie.cranch@rfg.com.au kellie.cranch@rfg.com.au

*Reference the Franchisor Disclosure Document for more detail *Reference the Franchisor Disclosure Document for more detail

INDUSTRY SPOTLIGHT

ALL HANDS-OFF

DECK

Business is known for the gruelling hours entailed in kick-starting growth, but what is involved when an investor role is offered to a franchisee?

G

enerally, a franchise is not considered a passive income source, says Smart Franchise co-founder Kate Groom. If a franchise system advertises an investor-type model involving minimal effort, potential franchisees should first read the fine print, she warns.

“Certainly in the beginning you would need to be involved in the business,” she says. But can franchises be run by an investor who appoints ground-level managers?

Here, Inside Franchise Business explores some franchises that are geared for investor-types..

JUST CUTS Just Cuts is a salon business that has been franchising for more than 27 years, and franchisees do not need a hairdressing background.

“Many of our franchisees spend less than 30 hours each week working on their business,” says business development manager Luke Manning. “Our systems, processes, support model and training opportunities help empower stylists to easily run the business for franchisees.

“This can happen as soon as the stylists, who all must be qualified hairdressers, receive the necessary induction and guidance from the Just Cuts Academy.

Franchisees then appoint a team leader who can run the day-to-day activities.”

But can a buyer expect passive income from a Just Cuts franchise?

“With Just Cuts, franchisees also set their own pace,” says Manning. “As client numbers and retail sales grow, so does a franchisee’s earning potential.”In fact, most Just Cuts franchisees are not hairdressers. “We provide our franchisees with a proven, successful system that guides them through every step of opening a salon,” he says. “All you need is a passion for people and a willingness to learn and grow.”

A Just Cuts kiosk salon starts from $80,000 and a full in-line salon from

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$160,000. The initial franchise fee for a kiosk salon is $12,500, and $25,000 for a full salon.

The model has a fixed weekly franchise service fee, based on 12 units a week, with a “unit” being the current price of a Style Cut. Regardless of the number of haircuts provided each week, the fee stays constant.

ORANGETHEORY FITNESS Orangetheory Fitness is a gym concept that delivers individual fitness within a group environment. For fitness sessions, members are split into two groups to maintain heart rates alongside other routines. The fitness classes change daily.

A part of the Collective Wellness Group, the model allows for a franchisee investor. However, when it comes to how much face-time is needed of the franchisee, this may vary depending on the flexibility of the franchisee and their personal circumstances, says CEO Arthur McColl.

“The first six to 12 months are a crucial time for the business, and for a franchisee to be seen, heard and felt as a major positive influence on employees as the studio builds memberships, as well as personally interacting with members.

They need to lead by example and make sure systems and procedures are followed. Helping the team, from the studio manager to coaches, and really being interested and involved has a hugely

The first six to 12 months are a crucial time for the business, and for a franchisee to be seen, heard and felt as a major positive influence on employees.

positive impact.

“This will set the tone for a healthy, wealthy and successful studio as time goes on, which ultimately allows the franchisee to take a step back to focus on opening another studio or begin building an Orangetheory Fitness portfolio.”

While the franchisee investor still should spend an amount of time within the business, at least in the early stages, the studio manager has the ability to care for the studio.

An investor should know the ins and outs of the business they are buying into so they can make the most of the opportunity. But can a franchisee expect passive income from this model?

“Absolutely, but of course within time, and especially if the time dedication and commitment was evident from day one,” says McColl. “Pre-sales targets should be pushed and the team supported. This will only make things easier and more profitable down the line.”

But running a business is never easy, he warns. “Of course, having a background or at the very least an interest in health and wellbeing or business management will only help a franchisee succeed.”

Investment levels for an Orangetheory Fitness franchise usually start at $600,000.

Site selection, sales support and marketing are included, as well as ongoing support.

FRANCK PROVOST PARIS French salon brand Franck Provost Paris is headed up in Australia by master franchisor Jean-Francois Carre. A franchisee becomes a hands-off investor in stages.

“For the first two years, franchisees are involved full time (40 hours a week),” says Carre. “After that, it is possible to go part-time and eventually even out of the business completely (after three years), especially with the help of the management option provided by the head office.”

While a Franck Provost owner/ operator is responsible for the business, the administrative tasks can be performed by a third party. Carre says this why some franchisees, who prefer to focus on team and client management, rely on the head office to provide support with accounting, payroll, recruitment and marketing tasks.

These franchisees can expect a passive income, generally after about three years, says Carre. “A hair salon takes a little time to set up, but when the clientele is built up and the team is stable, this is totally possible and an objective for most of the

Many of our franchisees spend less than 30 hours each week working on their business.

business owners.”

Franchisees can work mainly at the reception desk, focusing on clients and the salon team. Carre says good people skills and dedication are must-haves.

Depending on the site, a Franck Provost franchise is about $291,000 including the rental bond, or about $272,000 excluding the bond. Larger premises in premium shopping centres will incur higher establishment costs, of course.

Franchisees are provided weekly hairdressing training within salon and at the FPP Sydney academy. They are also given help with marketing, salon set-up and choice of location, plus legal help such as with employment contracts, as well as business advice. This is covered within royalties and marketing fees.

Extra business support is available for additional subscription fees: 1. MANAGEMENT OPTION Head office looks after everything so the franchisee can be relatively hands off.

This is a particularly appealing option for investors who are not hairdressers. It includes: • bookkeeping • accounting and financial reporting • payroll • marketing • recruitment • business coaching • managing and coaching the floor manager 2. CENTRALISED CUSTOMER SERVICE OPTION Head office answers calls, emails, SMS and live chat, plus supports the salon floor manager with rostering, planning and casual staffing. n

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INDUSTRY SPOTLIGHT

Mad Mex NOVEMBER/DECEMBER 2017 | 66 | WWW.FRANCHISEBUSINESS.COM.AU

MEXICAN

STANDOFF

When it comes to south-of-the-border flavours, competition is becoming hotter than a jalapeno as the segment expands with a whole new style of eatery emerging.

M

exican food franchises work within a specialised business model that is a hybrid between traditional restaurants and fast-food services.

This hybrid concept has proven fairly successful in Australia, according to IbisWorld’s Chain Restaurants in Australia July 2016 report. It says the sector’s revenue is expected to grow at an annualised 2.1 per cent over the five years through to the end of this year to reach $397.4 million. However, overall industry revenue is forecast to grow at just 0.9 per cent annually to reach $414.9 million in 2022 – a poor performance that can partially be blamed on changing consumer preferences as people start to focus more on premium dining experiences. More savvy diners are likely to look at menus and peer-review sites rather than rely on a restaurant chain’s reputation.

This means industry players need to differentiate themselves and build strong reputations.

When it comes to Mexican food, establishments typically provide such staples as burritos, fajitas, quesadillas and tortillas. They also tend to have bars serving drinks such as margaritas. However, over the past five years Mexican-themed quick-service restaurants (QSR) have been emerging.

Here is an overview of how Mexican food franchise businesses are stepping up to the plate...

FUNKY MEXICAN CANTINA Funky Mexican Cantina has “gone to great lengths” to ensure the atmosphere and decor are both traditional yet special, says CEO Ross Worth. It has taken five years to refine the model, which opened in Cleveland, Queensland, and is part of the Hogs Australia portfolio.

It is the Mexican head chef who sets the menu and sets the brand apart, says Worth. Authentic recipes adapted to suit the Australian palate are created with the freshest produce.

“Staying current with our offering is a big part of our menu, and at Funky’s we have a dedicated food

services team to ensure we are always at the cutting edge. Also, our head chef likes to stay on top of his game. We’ll always listen to customers though, and keep the favourite dishes available.”

Mexican cuisine makes it easy to meet dietary requirements, which is a priority for any food-service business, says Worth. “Mexican food quite naturally comes with all of these options anyway – corn-based options for coeliacs, and nachos for vegetarians.”

Word-of-mouth plays an important role in the development of a brand, he says. “I believe that in our business we live and die on reviews and word-ofmouth, and that usually comes from trusted friends, family and colleagues. Not everyone trusts the opinions of anonymous reviewers online.”

Worth says Mexican cuisine knows no borders, being a dining category that suits all ages and occasions, be it romantic dinners, a quick bite after work, or even corporate or staff dinners. That makes it a popular offering, no matter the location, so long as there is good footfall or drive-by traffic.

However, with more Australians wanting home delivery, the Cleveland store is obliging via Deliveroo, a service that can be rolled out to other franchises if there is a demand.

Franchise buyers will be investing about $600,000 (depending on location), and sign up for a 10-year term. In return, they receive full training, financial, legal and marketing support, and a dedicated business coach as first contact point day or night.

Much of the initial work and set-up is done for franchisees, including help with hiring staff members and retention. Training and incentives help keep them invested and motivated, says Worth.

He says an ideal franchisee has a great attitude, wants to be part of a fun, dynamic and supportive company, but is willing to work hard.

While hospitality experience brings an understanding of the challenges of the business, Worth says he has observed over the years that it is not an essential to running a successful food franchise.

“We have had extremely successful franchisees with little hospitality experience, but just a big will to succeed.”

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INDUSTRY SPOTLIGHT

MAD MEX Mad Mex offers gourmet Baja dishes together with quick service, and considers its purpose is to inspire bold, honest, healthy living through Mexican food with attitude.

“Mad Mex is a destination for families, couples and groups who seeking authentic, fresh and healthy Mexican food in a friendly, upbeat, vibrant Mexican street atmosphere,” says director Phillip Blanco.

“Our customers care about authentic fresh flavours as well as what they use to fuel their body. They prefer Mad Mex because they know exactly what they’re eating, and can customise their meal to suit their tastes.”

Mad Mex has a range of formats to suit different environments. Ideal sites are in high-volume locations with strong foot traffic, such as CBDs, suburban dining strips or shopping-centre entertainment and leisure precincts.

“Size can vary from 120 to 160sqm, or even smaller in premium food courts,” says Blanco.

He says customers are increasingly time poor and looking for restaurant-quality food options at better pricing in convenient locations. “We are always updating, innovating and improving our menu to meet the evolving needs of our customers.

“We also have gluten-free, dairy-free and vegan options, and are constantly sourcing new tasty options. We use only stall-free pork and grass-fed beef. All our oils are free of trans-fats, and we also offer Halal products.”

Max Mex considers home and office delivery a rapidly growing area of the business. “We are now rolling out our delivery options via partnerships with service providers, as well as developing our own in-house model.”

Technology initiatives are also on the menu. “Mad Mex support office has invested heavily in IT initiatives over the past three years to improve our systems.”

Using the latest software technology and hardware helps its franchisee partners maximise their profits, says Blanco.

He believes IbisWorld’s prediction about customer preferences for peerreviewed eateries “can only be a positive for the industry, as the good operators are the ones who will flourish and reap the benefit of positive customer feedback and reviews”.

He says the industry leaders are totally focused on the total customer experience and journey, and have measurement systems in place to ensure customer satisfaction is increasing.

Franchisees benefit from regional managers and marketing help, including local-area marketing. “We provide a

Zambrero

comprehensive six-week training program for new franchisees and their leadership team.”

Blanco says the main challenges are that of running a small business for the first time, which in a franchise has the benefit of proven systems, training and ongoing support.

The initial franchise investment is between $375,000 and $550,000.

Franchisees are offered a five-year initial franchise agreement, with the option of an extra five-year term. The franchisor helps with site selection, design and project management, and offers a turn-key model.

“No specific skills are required, but it’s a positive if you have had some exposure to the food and hospitality industry,” says Blanco. “It’s also helpful if you have a background in small business, or experience in leading teams.

“Ultimately, we’re really looking for passionate ‘people people’ who are a little cheeky and capable of hiring and leading an amazing team to deliver outstanding customer service.”

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Ultimately, we’re really looking for passionate ‘people people’ who are a little cheeky and capable of hiring and leading an amazing team to deliver outstanding customer service.

Fresh, Fast and Flavoursome!

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LeWrap specialises in fresh tasty fast food and we are spearheading the franchising sector!

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INDUSTRY SPOTLIGHT

ZAMBRERO Founded by philanthropist/entrepreneur Dr Sam Prince, who is a medical doctor, Zambrero is dedicated to innovative, healthy Mexican cuisine. It encompasses the brand charity initiative Plate 4 Plate.

General manager Brad Flinn says the brand targets a broad market, its demographic being 18- to 39-year-olds and including families, foodies and couples.

“This allows our site selection to be quite broad. We are lucky in that we can work in a food court, strip location or drive-through.

“This means we can take a balanced approach around the country, and our different models suit diverse locations and demographics.”

To cater for varied demands, Zambrero has built its product range into three categories: Classic, IQ and Power.

“IQ is food for your mind while Power is food for your body, and each time we create menu items in this space we need to use ingredients that allow us to make these essential claims,” says Flinn. “For example, in our Power range, the Power Burrito has more than 60 per cent of recommended daily protein.”

However, freshness is integral to the business. “Ensuring our menu stays fresh

and on trend is extremely important,” he says.

“Zambrero is passionate about launching four products a year that match different trends that align to the overall mission of fresh, healthy Mexican food.

“We were the first QSR to nationally launch black rice before it became a popular superfood. Our black rice has withstood the fad lifecycle as a standard ingredient for our IQ and Power ranges, and will continue to be one of the fastestgrowing categories at Zambrero.”

However, Flinn says that providing choice and flexibility is also key. “We offer menu items that are gluten-, dairy- and egg-free without compromising on flavour.

“Over the past 12 months, Zambrero has launched the first-ever 12-inch glutenfree black-rice tortilla, our Trezigo vegan sauce, and spiced cauliflower.

“Ensuring Zambrero can cater to customer dietary requirements wherever possible will continue to be a priority so customers can continue to enjoy our take on fresh, healthy Mexican food.”

Flinn says home delivery is an area that promises substantial growth.

“We currently use a combination of third-party services and in-house delivery drivers,” he says.

Because we don’t cook on site, our build costs are much cheaper than those of our competitors

In response to the IbisWorld finding that food-savvy consumers will start choosing more premium options, Flinn says it is as easy as having “an innovative menu that caters to customer demands, and creating an experience where customers want to come back”.

He says Zambrero is not just an average fast-food outlet, and it sees its product as more of a premium offering.

For franchisees, the initial investment ranges from $250,000 to $650,000 with kiosk, food-court, strip and drive-through options available. The franchise terms are seven years.

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Zambrero

“Because we don’t cook on site, our build costs are much cheaper than those of our competitors,” says Flinn. Franchisees also benefit from ongoing national support, training, marketing and on-the-ground support.

However, he says the challenges associated with the business include high rent (especially in metropolitan

locations), high food costs and rising labour costs,which means the right franchisee is essential.

“We look for ambassadors who share our vision and who love the food as much as the Zambrero team does,” he says.

“The franchise allows those with common values to embrace the mission and deliver it to their customers.

“Our franchise network is made up of franchisees from many varied backgrounds – experienced and seasoned business people, mums and dads, former tradesmen and Gen Ys. They are all attracted to the simplicity of the model and the lower cost of entry,” he says. n

If you are looking for a change, are passionate about water safety and enjoy working with children, this could be the opportunity you have been looking for!

Swimming is a life skill that nearly every parent recognises they need to teach their children from a very early age.

In fact, many parents begin swimming lessons when their children are still babies.

We offer a boutique custom-made swim school with state of the art turnkey fit outs, including full training and support for every Franchise.

If you are keen to find out more and see if you qualify to own your very own Splash Swim School please contact us today for a confidential chat.

For Franchising opportunities contact: P: 1800 SPLASH (775274) I E: admin@splashswim.com.au splashswim.com.au

NOVEMBER/DECEMBER 2017 | 71 | WWW.FRANCHISEBUSINESS.COM.AU

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

Splash have t contractor tha

O M C F D OR L O

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INDUSTRY SPOTLIGHT

Ice cream lives on as a favourite Australian indulgence, even as consumers grow even more aware of the necessity to eat healthy foods.

N

o matter how consumer tastes change, there will always be a place for ice cream. After all, the sweet treat has lived down the years since at least the second century ... Alexander the Great enjoyed it, and Roman emperor Nero Claudius Caesar (AD 54-86) would send runners into the mountains for snow, which was then flavoured with fruits and juices.

NOVEMBER/DECEMBER 2017 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

Become Your Own

HEAD HONCHO Already operating in over 70 restaurants in Australia and New Zealand and growing globally, Mad Mex is an award winning franchise concept recognised for its fast growing potential and effective ROI business model.

JOIN THE FAMILIA

madmex.com.au/franchise

FRANCHISE INDUSTRY SPOTLIGHT BASICS

In the 16th century, England discovered “cream ice”, which was a regular at the table of Charles I, but it didn’t become available for the general public until 1660 when the Sicilian Procopio introduced his blend of milk, cream, butter and eggs at Cafe Procope, the first cafe in Paris.

Nowadays, ice cream is available in most countries, widely available from stores and even street vendors. Of course, this means it falls within the realm of franchising as well.

While vanilla, chocolate and strawberry have been stalwart flavours of the ice cream industry for years, consumer tastes have become more sophisticated, heightening a demand for gelato, sorbet and gourmet options. Luxury brands such as the franchised chain Movenpick cater to indulgent tastes, while independent businesses like Australia’s Gelato Messina chain, with its focus on Italian heritage and premium ingredients, have helped drive the demand for creative and even quirky mixes.

Franchising offers a measure of stability to ice-cream retail, as it is hard for independent stores to cope with the

rising costs of milk and sugar. Profits are more achievable for larger franchise networks, says an IbisWorld report, thanks to economies of scale. The report says another benefit is the negotiating power of big-brand franchises, which can secure more advantageous rents for prime sites.

Franchise networks The four largest companies in the sector in Australia all have extensive franchise networks, and together account for more than 40 per cent of industry revenue.

While they also have the advantage of strong brand recognition, smaller ice-cream franchise chains are starting to chip away at their market share.

More companies are expected to align their products to match gourmet tastes while also offering low prices. This will effectively drive competition at the top level and result in overall reduced industry profitability, says IbisWorld.

As the sector becomes more competitive, growth will be buffered by health-conscious consumers pulling away

from ice cream with its high content of fat and sugar. This trend is expected to slow industry growth over the next five years. And as obesity levels continue to rise, consumers may also look to ice-cream chains to provide low-sugar alternatives.

However, says IbisWorld, customer perceptions that gelato and frozen yogurt are healthier options might boost these categories over the next few years.

As franchises start specialising in these segments, they will bring innovation and fresh store concepts that will energise the sector.

Meanwhile, what is selling now?

The IbisWorld report breaks down the market in terms of turnover: 31 per cent: The largest category is hard-serve ice cream, which is losing popularity to newer product categories.

However, a revival is likely as companies develop new and exotic flavours.

16 per cent: Gelato has a higher sugar content but a wider range of flavours than most ice creams.

14 per cent: Soft-serve ice cream is a lower-cost product with its spot in specialist stores being threatened by

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For more information on becoming a Good Feet Store franchise owner contact Jarrod on (02) 4957 4230 or email jarrod@goodfeet.com.au goodfeet.com.au NOVEMBER/DECEMBER 2017 | 74 | WWW.FRANCHISEBUSINESS.COM.AU

the entry into this market of fast-food companies.

12 per cent: Frozen yogurt is a growing segment thanks to customer perceptions it is a healthier option, despite it generally containing more sugar than ice cream. The trend is being driven by store growth.

15 per cent: Ice-cream sundaes, ice-cream cakes and sorbet each account for 5 per cent of industry revenue.

A further 12 per cent of turnover in stores comes from non-core products such as soft drinks, smoothies, pancakes, waffles, hot dogs, coffee and tea.

Start-up costs can be high for an ice-cream franchise because of store fit-outs including freezers and display equipment. However, it can be relatively easy to find a franchise for sale. No skills are needed to set up in a franchise as training is provided.

Key players in the sector Baskin-Robbins Australia has 12.2 per cent market share (the brand is owned by Dunkin’ Brands Group in the US, which

SWEET STATISTICS A cool $576.5 million in revenue was brought in by the frozen treats industry this year, generating profits of $95.7 million, according to IbisWorld’s August 2017 report Ice Cream Stores in Australia.

Across the 920 businesses in the sector, wages accounted for $129.4 million.

Annual growth has been 2.4 per cent annualised over the past five years, and is unlikely to change much, with a slight drop to 2.3 per cent predicted through to 2023.

also owns Dunkin’ Donuts).

Supatreats Australia, which is the Wendy’s licensee and a subsidiary of a Singapore firm, has 10.7 per cent market share.

Franchised Food runs three ice-cream franchises: Cold Rock Ice Creamery, Mr Whippy and Trampoline, which together have a 10.4 per cent slice of the market.

New Zealand Natural, owned by Hong Kong-based Emerald Foods Group, snags a 7 per cent share.

Other companies make up the

A FRESH INCENTIVE FOR NEW FRANCHISEES!

remaining 60 per cent of the market, with Gelatissimo estimated to have less than 5 per cent share. Nestle, which owns the Movenpick brand, and Unilever, which has the Ben & Jerry’s brand, account for less than 3 per cent each; and independent Gelato Messina is estimated to have a stake of less than 2 per cent. n

The world’s fastest growing franchise Freshii is looking for motivated, dedicated and passionate franchisees to help us continue our growth in Australia.

Freshii Australia will provide a kiosk in high-traffic areas to new franchisees, along with training, set-up assistance, and marketing in an all-inclusive package for just $250k *.

Financial assistance options are also available (subject to approval process).

Our team has negotiated attractive lease terms in various locations throughout Australia in anticipation of this offer, and we look forward to helping our franchisees move up in an exciting new direction. For further information and expressions of interest, please contact:

franchising@freshiiau.com * Disclaimer – Terms & Conditions apply. All applicants will be reviewed on an individual basis.

freshii.com/au NOVEMBER/DECEMBER 2017 | 75 | WWW.FRANCHISEBUSINESS.COM.AU

Get In THE GAME WITH AUSTRALIA’S FASTEST GROWING SPORTS BAR & GRILL

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FRANCHISE BASICS

STARTING UP

Joining a franchise brings experience to the table as you start off on your first business venture, plus there is plenty of help at hand.

W

hat does it take to start out on the path to success as a business owner?

You have taken the first, best step by choosing to join a franchise brand, which can offer you a simple competitive advantage – experience.

More than good luck and faith in your abilities is needed to establish a successful business. It takes processes, structure, investment, a customer base, marketing and some technical knowledge, all of which a franchise provides.

It also requires some simple basics, like registering your business name, setting out a business plan and signing the paperwork.

In this, the sixth edition of the Inside Franchise Business Franchise Basics series we drill down to the nitty-gritty of establishing a new business so your path to success can get off to a flying start.

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FRANCHISE BASICS

SETTING UP FOR

SUCCESS Ask questions, research, seek advice – you are not alone once you decide to take up a franchise, so use the help available as a stepping stone to success.

DAMIAN PAULL CEO, Franchise Council of Australia

B

ecoming a franchisee is a life-changing decision. There are no shortcuts to success, but there are steps you can take to ensure your franchise business has the best chance of realising its potential and that you, as a franchisee, achieve your goals for the business.

Next to buying a house, becoming a franchisee may be one of the largest financial commitments you are likely to make. Running a small business, including a franchise business, also involves a huge time commitment that will have a major impact on your lifestyle. Are you prepared and able to take on these responsibilities and obligations?

Research starts with asking yourself

such questions. Examine your reasons for becoming a franchisee, try to choose a franchise that ties in with your interests and passions, and know what you can afford financially before making any commitment.

There are many advantages of becoming a franchisee, especially for those who are new to small business, as your franchisor will provide training and ongoing support. On the flip side, franchisees sign on to following the franchisor’s systems and processes. If you are more inclined to follow your own path than the tried and tested one laid out by a franchisor, maybe franchising is not for you.

Assuming you have been through the

If you are more inclined to follow your own path than the tried and tested one laid out by a franchisor, maybe franchising is not for you.

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FRANCHISE BASICS

self-assessment process and gained an understanding of the franchising business model, the next step in the research phase is to thoroughly investigate any franchise system that interests you.

CODE OF CONDUCT It is worth noting that Australian franchising is governed by the Franchising Code of Conduct, which provides for disclosure of key information about the franchise system by franchisors to prospective franchisees. Part of this includes providing contact details of current as well as former franchisees, and it is important that you talk to franchisees who have been in the system to find out what it is really like.

If you have ticked all the boxes here and sought advice from expert franchise lawyers and financial advisors, you have taken the first steps to becoming a successful franchisee.

Once you’ve signed your franchise agreement, paid your franchise fees and other costs, and held your breath for the seven-day cooling off period, it’s time to start. At this point, you can expect the franchisor to provide you with comprehensive induction training to teach you about the franchise business and the essentials you’ll need to know as a

small-business owner.

The timeframes for this induction period vary from a few days to a few weeks, but this training is vital to your success. It is here the franchisor will impart the systems and processes that underpin the franchise. Absorb all the information you can, and don’t be afraid to ask questions to improve your understanding.

You will also be provided with an operations manual that will be your essential guide to everything you need to know once you have completed your training and are open for business. Your job from here is primarily to follow the franchisor’s systems and processes and put in the hard work that is necessary to make any small business, franchised or not, a success.

NOT ALONE Other specific requirements for franchisees include paying fees, marketing contributions and royalties on time; undertaking their own local-area marketing to promote the business; and keeping appropriate business records.

It is important to remember that while you are running your own small business, as a franchisee you are not on your own.

A good franchisor will be accessible if you have any questions or need advice,

will provide help to build and protect the brand, and will visit you from time to time.

As a franchisee you will also receive visits from a field manager, business development manager or franchise manager. Whatever the title, this person will be your first point of contact for advice and to talk through any business issues.

It is completely normal to face challenges in your business. What matters is that you acknowledge any challenge and approach your field representative or franchisor about it, and put steps in place to move forward and resolve the issue.

Other franchisees in your system may be able to offer you advice or help based on their own experience.

Opening your own franchise business is one of the most exciting, daunting, invigorating and exhausting things you are ever likely to do, and like anything worth doing, it is worth doing properly. So take your time, do your research, obtain professional advice, follow the established processes of the franchise system, and build a solid working relationship with your franchisor.

As US statesman Colin Powell once said: “There are no secrets to success. It is the result of preparation, hard work and learning from failure.” 

NOVEMBER/DECEMBER 2017 | 80 | WWW.FRANCHISEBUSINESS.COM.AU

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PART OF

FRANCHISE BASICS

THE CODE

IS KING When you move into franchising, the Australian Competition and Consumer Commission has your back with its Franchising Code of Conduct.

DR MICHAEL SCHAPER Deputy-chairman, Australian Competition and Consumer Commission

A

s you go through the practical processes of setting up your new business, remember that the Franchising Code of Conduct is your framework for dealings with your franchisor. It doesn’t matter whether a franchise opportunity involves washing windows, fixing fences or selling salad, there are basics to be observed.

Known as the Code for short, the Franchising Code of Conduct is binding on all franchising participants – the franchisor and you, the franchisee – and sets out the rights and obligations of both.

Committing to a franchise is a big financial decision. Prospective franchisees often use their life savings to buy into the system. The stakes are also high on the other side of the equation, as franchisors put their hard-earned reputation and business model on the line.

With this in mind, the Code requires franchisors to disclose certain information to enable prospective franchisees to make an informed decision. Disclosure also allows the franchisor to put all the

requirements of the franchise system on the table.

Under the Code, a prospective franchisee must, as a minimum, be given four key documents: 1. An information statement when expressing an interest in buying a franchise. This two-page document highlights some of the risks and rewards of franchising.

2. A disclosure document, which contains key financial information and details about the franchisor and the system. It covers things like: a. franchisor experience b. franchise territory c. online sales d. site selection e. payments f. franchisor solvency and g. what will happen when the agreement comes to an end.

3. The franchise agreement

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FRANCHISE BASICS

is the contract that sets out each party’s rights and responsibilities. It is crucial you seek independent advice from a lawyer, business adviser and accountant about the opportunity before you commit.

4. The Franchising Code of Conduct itself, which establishes the rules for the relationship and includes a “cooling off” period for the prospective franchisee.

If you change your mind about becoming a franchisee, you are entitled to terminate your franchise agreement within seven days of entering into it, or making a payment under the agreement (whichever happens first). If you do terminate the agreement, you are entitled to a refund for payments you have made, minus the franchisor’s reasonable costs (if these costs were set out in the agreement).

Your franchisor’s disclosure obligations do not end when you become a franchisee. The franchisor must: • continue to disclose certain “materially relevant facts” within 14 days of becoming aware of them, and • provide you with an annual financial statement of the marketing fund and, if

If you change your mind about becoming a franchisee, you are entitled to terminate your franchise agreement within seven days of entering into it, or making a payment under the agreement.

required by the Code, auditing reports of the fund.

Should you wish to terminate the agreement, the Code spells out conditions for this. For instance, if a franchisor wishes to terminate the franchise early because you have allegedly breached the contract, they must give reasonable notice, state what you need to do to fix it, and allow reasonable time for this to happen. If you fix a breach within this time, the franchisor will be unable to terminate the franchise on this ground.

BE AWARE You should be aware of your obligations when finalising a franchise agreement as it may influence your decision to enter the agreement.

Under the Code, a franchisor must act in good faith in their business dealings with you. This mutual obligation applies at all times. Good faith entails the parties exercising their power reasonably and not arbitrarily.

Conduct may lack good faith if a party

Aged Care is a MULTI-BILLION DOLLAR industry Australia is growing faster than at any other time in history and the population is living longer.

The number of Australians aged 65 years and over is forecast to double over the next 40 years, increasing to 8.9 million persons by 2054, circa 20% of the entire population. One in ten persons over 65 will have been diagnosed with dementia.

The number of people aged over 85 is predicted to increase by 30% in the next 10 years. 85% of these persons will require some level of care and three in ten will have been diagnosed with dementia and will require long term care.

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NOVEMBER/DECEMBER 2017 | 84 | WWW.FRANCHISEBUSINESS.COM.AU

acts dishonestly, for an ulterior motive or in a way that undermines or denies the other party the benefits of the franchise agreement.

Should complaints arise, franchisors are required to have an internal procedure for dealing with them. This procedure must be set out in the franchise agreement. If you are unable to resolve your dispute with the franchisor within 21 days, you can refer the matter to a mediator, a neutral party that helps resolve the issue through discussion and understanding.

POWER TO PROSECUTE There are three ways to access mediation: the Office of the Franchising Mediation Adviser, the Australian Small Business & Family Enterprise Ombudsman, and state small-business commissioners.

The Australian Competition and Consumer Commission (ACCC) is responsible for enforcing the Code and has the power to investigate and prosecute breaches. It does not have an individual dispute resolution service, but is interested in hearing about illegal behaviour and can

10 STEPS BEFORE

YOU SIGN

1. Assess your skills, strengths and weaknesses.

2. Complete a pre-entry franchise education program.

3. Obtain advice from an accountant, lawyer and business expert.

4. Ensure you receive an information statement, current disclosure document, franchise agreement in final form and a copy of the Code at least 14 days before entering into the agreement or making a non-refundable deposit. Read the documents carefully.

offer you practical advice and guidance on your rights and obligations under the Code.

The ACCC’s website (www.accc.gov. au) has a wealth of information for franchisees, including detailed information on the Code, FAQs, a manual for franchisees

5. Take comprehensive notes of your meetings with the franchisor. Insist on the franchisor confirming any claims in writing.

6. Speak to current and previous franchisees.

7. Research the franchise and try to verify the information provided to you.

8. If you will occupy premises as part of your franchise, be sure you understand your rights and obligations under the lease or occupancy agreement.

9. Check clauses on termination, renewal, end of term and transfer of the franchise, and be sure you are willing to accept the terms.

10. If the deal is not acceptable, try to negotiate a better offer or look for a better deal.

and factsheets.

You can also keep up to date with events, court cases and changes to the law in the franchising sector by signing up to the ACCC’s Franchising Information Network. 

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

Robert Toth has over 30 years of specialist franchise knowledge and experience.

We act for local and international Franchisor’s and local master Franchisor.

We provide fixed fees based on the scope of services.

Contact

Contact Robert on (03) 9604 9400 or by email at rxt@marshmaher.com.au www.marshmaher.com.au

FRANCHISE LICENSING AND RETAIL GROUP

Marsh & Maher are members of: The Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), US Commercial Service.

NOVEMBER/DECEMBER 2017 | 85 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS

THE PAPER

CAPER?

As you set up in business as a first-time franchisee, you will be confronted with a pile of documents and registrations you need to process.

JENNY NEEDHAM

MICHAEL BACINA

Senior associate, Piper Alderman

Partner, Piper Alderman

T

hanks to technology, you can now set up companies as well as apply for ABNs, business names, loans, insurances and licences online. Yet many aspects of setting up a business still require you to deal with volumes of paperwork.

NOVEMBER/DECEMBER 2017 | 86 | WWW.FRANCHISEBUSINESS.COM.AU

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

FCA Emerging Franchisor of the Year 2011

FRANCHISE BASICS There are four main circumstances involving paperwork you may face if you are buying into a franchise: • You apply for a business loan • You apply for certification and/or a licence necessary for your new business • You apply to enter into a lease for your premises • You receive the documents relating to the franchise, such as the franchise agreement and the disclosure document.

Most new franchisees will probably need a loan to fund either setting up the business or buying out an existing franchisee. Whichever the case, you need to ensure your paperwork is in order if you are to be successful with your loan application.

While many financial institutions let you to start your loan application online, completing the procedure usually requires you to: • Review the loan agreement in paper form • Review any guarantees attached to the loan agreement • Submit personal financial documents in support of the loan agreement.

To carry on a business in certain

industries, even as a franchisee, you may need a licence. For example, if you will be serving alcohol on your premises, you will need to obtain a liquor licence.

In New South Wales, certain types of liquor licences (such as those for hotels and bars) require you to consult with the community and prepare a community impact statement.

Similarly to licensing, you may need certification to run your business. For example, in New South Wales certain food businesses must hold Food Authority certification, such as an FSS (Food Safety Supervisor) certificate, depending on the type of food being served to customers.

When it comes to your business premises, if your franchisor does not hold the lease or negotiate one on your behalf with the lessor, you will need to do this yourself. It is better to engage an agent or solicitor for this.

All lessors work differently, but most will need paperwork from you to support your lease application. This generally involves financial documents relating to you or any business partner, your company or proposed trading entity, and any other proposed lessee.

Once your lease application is accepted, you will need to read all the

All lessors work differently, but most will need paperwork from you to support your lease application.

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terms of the lease agreement provided to you. This is a good time to seek legal advice.

In general, lease documents are voluminous, often exceeding 50 pages.

But wait, there are more documents yet...

Under the Franchising Code of Conduct, the franchisor must provide you with certain documents: • The information statement • The proposed franchise agreement • The disclosure document • A copy of the Franchising Code of Conduct (commonly referred to as “the Code”).

The information statement is a standard document highlighting some of the risks and rewards of franchising, and must be provided to all new prospective franchisees.

The franchise agreement is the contract between you and your prospective franchisor. It sets out the rights and obligations of the franchisor as well as your rights and obligations as franchisee.

Find in the disclosure document information important for running the franchise business. It should include background details of the franchisor and an insight into the corporate structure of

the franchise network. This will enable you to make an informed decision as to whether you accept and sign the franchise agreement.

As well as the documents required by the Code, and depending on the franchisor, you will often also receive the following documents: • A certificate under section 10 (1) of the Code • A certificate under section 11 of the Electronic Transactions Act 1999 • A licence to occupy the premises (if the franchisor holds the lease) • A supply agreement (or more than

one) for the supply of the goods to the business • A fitout agreement (to prepare the premises for your business) • A general security deed • Various authorities, such as a trust account authority allowing the franchisor’s solicitors to release any monies to the franchisor they hold on your behalf in their trust account.

Joining a franchise business can be exciting and rewarding.

Just ensure you are aware of the details in all the paperwork, as this will help position you to succeed. n

“I explored plenty of other franchise models, but Kwik Kopy’s tried and tested system continued to come out on top.”

- Dan McKenzie, Kwik Kopy Miller Street

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

WE CAN TAKE YOU FURTHER.

As a member of the Kwik Kopy family, you get to tap into a highly established and recognised brand that gives you plenty of leverage in the market. What’s more, you’ll have an extensive support network all focused on your success.

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

kwikkopy.com.au NOVEMBER/DECEMBER 2017 | 89 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS

IS YOUR TRAINING ON

TRACK? There are many aspects to the educational side of taking up a franchise, so ask the right questions to ensure you’ll learn all you need to run your business successfully.

By Domini Stuart

W

hen you invest in a franchise you’re buying into a proven formula. Add the right training, and you have a recipe for success. But how can you be sure you’ll find out all you need to know to run your business effectively?

“Franchisors typically offer good, comprehensive operational training

– how to make coffee or burgers, for example, or provide a particular service,” says Franchise Advisory Centre director Jason Gehrke. “This is usually detailed in the operations manual and covered in the induction process.

“But if it is your first venture into business, you will also need training in basic business skills such as financial management, human resources and the

principles of marketing. These aren’t always so well covered.”

Some sectors demand qualifications before you can be considered for a franchise, such as a builder’s licence or a real-estate licence. “In cases like these, the training is about building a really good business around your skills,” says Gehrke.

Generally, if you are starting your business from scratch, training will be

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FRANCHISE BASICS included in the initial fee. But this may not be the case if you are buying an existing business. In this situation, you’ll reach an agreement with the vendor to buy the business. But before you can take over, the franchisor needs to know you’re going to be a proficient operator.

“The vendor is not responsible for this training, so you will probably have to cover it with a separate payment to the franchisor.”

If you do identify gaps in your training, Gehrke suggests you speak first to the franchisor. “If they can’t help, they should be able to point you in the right direction.

Again, this might incur a separate cost.”

It is reasonable to expect that once you have completed your initial training, you will be ready to start trading. “Many franchisors now provide competencybased training,” says Gehrke. “If you fall short of the required standard in the ongoing assessments, you will need to undertake remedial training.”

While this process can feel intimidating, technology can help to alleviate any anxiety.

“Online learning makes it easy for new franchisees to work through basic information in private, at their own speed and as often as they need. This helps

He believes a blended approach to learning is most effective. “There are many benefits associated with face-to-face interactions, but an online component will always be able to support that.”

A good network will schedule regular training to refresh franchisees’ skills and ensure they keep up with developments.

them feel more confident in a classroom situation,” says Adam Wiser, managing director of digital-learning company MindAtlas.

“You will also be able to make better use of the time allocated for face-to-face training by building on the knowledge you’ve already acquired.”

STAFF TRAINING Technology can also save time and money for franchisees who need to train their employees.

“Sectors such as hospitality and retail tend to have a relatively high turnover of younger staff,” says Wiser. “Now new employees can work through training modules on their phone or laptop at home or on their way to work – and this is the way the generation coming through prefers to learn. They expect to be able to study in their own time on whatever device they prefer.”

Online learning management systems should include a high-level dashboard with a sophisticated reporting capability. “One of the big advantages of online learning is that you can make a module available and immediately start tracking and measuring the uptake, competency and completion rates,” says Wiser. “You can also identify areas that need further consolidation.”

PARTNER WITH A LEGAL PROFESSIONAL WITH COMMERCIAL ACUMEN Franchising is an important decision for both franchisors and franchisees.

We are on hand to provide strategic, practical solutions to help you plan and achieve your short and long term goals.

Unlike other legal firms which provide legal advice piecemeal, we look at the whole picture, help you with risk management, compliance requirements to eliminate unwanted surprises.

Our principal has valuable in-house experience, has advised businesses for more than 25 years and understands first hand the many challenges faced by business owners.

Contact Christine Lau on (03) 9653 9203 or via email at Christine@laulegal.consulting for a confidential discussion to start or grow your business NOVEMBER/DECEMBER 2017 | 92 | WWW.FRANCHISEBUSINESS.COM.AU

While all franchisors promise ongoing training, the quality and content can vary widely.

“A good network will schedule regular training to refresh franchisees’ skills and ensure they keep up with developments,” says Gehrke. “This could include classroom learning, on-the-job training, mentoring and coaching support as well on-demand online training. It is important to know what you can expect and whether any extra costs are involved.”

Wiser says he often helps franchise groups create a continuous learning pathway for both franchisees and their staff members.

“We also recommend that franchisors adopt a co-ordinated, digital system that ensures everyone receives information about changes to policies, procedures and legislation as soon as these are confirmed.”

Whatever form, training should be tailored to your specific needs.

“Requirements and expectations are constantly evolving – your own, and also those of your employees and customers,” says Wiser.

“It is vital that both the content and the delivery of your training are relevant, current and engaging.” n

10 QUESTIONS TO ASK ABOUT TRAINING The quality of the training you receive can directly impact the success of your business. Jason Gehrke recommends asking the following questions when assessing a potential investment:

1. Does the initial training include the broader aspects of running a business as well as specific skills?

2. Is pre-session training available online?

3. Does the training include competency assessment, and provide remedial training where necessary?

4. How is ongoing training delivered? Are there opportunities for face-to-face learning as well as online?

5. Will you have access to mentors, coaches or other personal support?

6. Will you have a clear and easily accessible manual that details processes and procedures?

7. Will the franchisor help fill any gaps in your training?

8. Is staff training included in the royalty payments, or do you have to pay for it separately?

9. Is staff training organised well in advance so you can incorporate it into your rosters?

10. Do the people presenting the training have appropriate qualifications and experience?

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

WHY CHOOSE A SOCCAJOEYS FRANCHISE?

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

• • • •

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

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

1300 781 735

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FRANCHISE BASICS

7

TOP RECRUITING TIPS By setting up a robust recruitment process, you are putting in the foundations for a successful franchise business.

Remember, employees rank highly among your most important assets.

VANESSA GIANNOSIS CEO, The HR Experts

A

s a franchise owner, it is important for you to be aware that one of the most important assets of your business is your team.

Recruiting great employees ensures your business will be strong, efficient, productive and profitable.

On top of all that, your business is likely to become known for its great customer service.

This means it is absolutely crucial for business success to get recruitment right.

Here are seven top tips to ensure you recruit great talent for your business..

1. CLARIFY YOUR NEED All good recruitment starts with outlining how you want your business represented in terms of brand and values. Be crystal clear about the type of person you want in your business, and articulate that in behavioural terms.

By scoping a role well, you can attract

the right candidates and prevent major headaches down the track, such as performance issues. Start by creating a role outline and success profile. This includes outlining: • The purpose of the role • The key major tasks of the role • The level of autonomy and decisionmaking required • The behavioural competencies, skill sets, experience, knowledge and qualifications needed for success in the role.

All too often at The HR Experts, clients present a shopping list of requirements that are unrealistic or not necessary for the role. From a legal and pragmatic perspective, it is important to distinguish between minimum requirement and the ideal. We all love to find ideal candidates, but often they just don’t exist.

Our golden rule is to recruit for fit first. Training can add skills later. It is far easier to teach someone skills than to ask them to change ingrained behaviours and personality traits.

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FRANCHISE BASICS

2. SORT YOUR PROCESS Before advertising for staff members, there are several elements you need to have in place that are crucial to the recruitment process: • A clear role outline and success profile • A well-designed and well-written job advertisement • An understanding of any legislation and awards relevant to the job (particularly pertinent in fast food and retail, especially with new amendments to the Fair Work Act) • The wages/salary determined for the role.

After a candidate has been chosen, you will need a customised employment contract ready with the right policies for your business, plus you need to set up payroll details and an employer default superannuation fund.

3. DESIGN YOUR RECRUITMENT STRATEGY An agile process is the key to success.

Your franchisor or other franchisees in the

network might be able to share their best practice with you. This includes: • How and when to advertise the role • Who will be interviewing, when and how?

• Will you be doing assessments or profiling, and at which stage?

If there are multiple interviews, book out time early in interviewer diaries.

Recruitment needs to be real time and continuous. As a benchmark, the average time to recruit is three to four weeks for basic roles (from advertising to offer).

Example of a continuous recruitment timeline: WEEK 1

Advertising and shortlisting candidates

1-2

Skype Interviews for shortlisted candidates

2-3

Interviews and assessments

3-4

Checks (references, facts and so on); and make an offer

4. DESIGN YOUR INTERVIEW/ ASSESSMENT PROCESS Validated research shows that a strong behavioural interview (structured) is the best predictor of future behaviour, helping define a candidate’s suitability.

It is also legally defensible. Behavioural event interviews are designed specific to the role and business, and aim to uncover behaviours, values, competence, skills, knowledge, resilience and learning agility.

A strong personality/behavioural profiling tool to support this process is highly valuable as it uncovers key areas of concern to explore in interview.

To determine technical competence, appropriate assessments are available, such as technical questioning, online testing or live observation and assessment.

5. INVEST IN TRAINING One of the biggest issues for SMEs is their ignorance of the law. One recruitment error could, it is estimated, cost up to 150 per cent of the person’s salary (excluding

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legal cases). It is strongly suggested you attend workplace legislation and compliance training designed for smallbusiness owners.

Behavioural recruitment training interviewers need to learn how to be unbiased, spot lies and inconsistencies, delve deeply, evaluate and validate a person’s experience, skills, values, behaviour and competence. Ask your franchisors if they can recommend training.

6. CHECK, CHECK, CHECK As more than 90 per cent of people admit to lying on their resume, verifying your candidate is crucial. Behavioural reference checking as well as checking licences and qualifications is highly recommended. Be sure you talk to the person’s former manager (accept nothing less) and make sure you ask behaviouralbased questions.

Remember, there can be more information in what is not said than what is said.

When managers are desperate, they

tend to make poor decisions. Save yourself excessive time and costs by following our golden rule: if in doubt, decline.

7. ENSURE GOOD ON-BOARDING Good on-boarding means your employee is inculcated into your values and expectations, gains the right training and becomes strongly engaged with your business. In this period, do regular reviews.

Monitor behaviour and performance throughout the probationary period. If you have concerns, raise them quickly and nip trouble in the bud early. If issues continue, do not be afraid to let go of the employee in the probation period.

Prudence here can save years of toxicity and headaches.

All in all, the legalities of recruitment can make the process complex, but like everything, once you have a process and system in place it is easier. Recruiting great talent needs investment in time and money, but once you have the right talent on board your business results will skyrocket. 

It is far easier to teach someone skills than to ask them to change ingrained behaviours and personality traits.

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

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nightowl.com.au

Joining the FCA Become a Franchise Council of Australia Member Membership of the FCA is voluntary, and open to any organisation or individual involved in the franchise sector, including franchisors, franchisees, lawyers, accountants, banks, consultants, academics, publishers - plus many others.

Benefits of Membership Representation of franchising sector perspectives to government A voice in your association Franchising public relations Excellence in Franchising Awards NextGen in Franchising: International exposure Network and learn at regular industry events Education: Internationally recognised CertiďŹ ed Franchise Executive program National Franchise Convention: Australia’s largest annual franchise event FCA branding Website directory advertising Enquiries and Further Information E info@franchise.org.au W www.franchise.org.au

FRANCHISE BASICS

MARKETING,

IT'S NO MYSTERY

It can be daunting for a franchisee to know where to start when it comes to promoting their business, but here are some guidelines to help put you on the right path.

ANNA JONES Marketing consultant for small- and medium-sized businesses.

A

s a franchisee and a business owner with many demands on your time, marketing may seem like an overwhelming task – where you should start, what to do, and then

whether it is working.

While your franchisor will offer national marketing support, tools and guidance, it is critical you continually invest in your local market.

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FRANCHISE BASICS

For a start, it is important you understand why marketing is needed and what role it plays in growing your business. Many people think marketing is all fluff, but effective marketing has a basis in science.

It is the behavioural psychology of making decisions.

Marketing is trying to influence someone’s decision when they are making a purchase. The more decisions you influence, the more people buy your product and the more your business grows.

There are three main goals in marketing. The first is to make people aware of the brand. If people don’t know your brand or product, how can they buy it? This is known as increasing brand awareness.

The second goal is for consumers to have your brand top of mind when they are ready to buy. As soon as someone says “Hey, let’s get lunch”, you want to be the brand that springs to mind.

The third goal is to make it easy for consumers to buy your product. Be easy to find, easy to buy from and easily available when and how they want your product or service.

Join an iconic brand

GOOD NEWS Those three objectives should top the list when it comes to investing in marketing.

The good news is that most franchise businesses have a level of national marketing support. Depending on the size and the category, this support could vary from simple tools to national campaigns including TV, radio, billboards and digital.

National campaigns do a good job of achieving the first two goals: they increase brand awareness and keep the brand top of mind. What they cannot do, however, is localise the message for your specific customer base.

As a franchise owner, you are a local business. Your customers mainly come from a small and targeted catchment area. While national campaigns play an incredibly important role, you cannot rely on them alone to grow your business. By its very nature, a national campaign needs to have a countrywide message, and that cannot be targeted to the specific needs of your local community.

To reach the third goal and make it easy for customers to buy your product or service, you must use local marketing.

When your franchiser runs a national campaign, ask them about tools and support they may have to help you localise the national message.

MAKING IT EASY When thinking about how best to use local-store marketing, I would advise that you first start with the behaviour you are trying to influence. For example, if your business relies on foot traffic, look for opportunities to stand out. This is all about making it easy for a potential customer to find you. If I’m shopping and want a coffee, chances are I’ll pick the first cafe that catches my eye. If I’m thinking about ice cream and I see a shop with balloons and a big ice-cream sign, that’s the one I’ll pick. It is that simple.

People want decisions to be easy, so think about how you can make your store stand out. Be quite deliberate about the headlines you choose.

If you have a business that is not a shop, think about where your customers are when they need your product or service. Are they searching online for

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a printer, gym or accountant? Are they reading online reviews or asking their friends for recommendations? All of these provide targeted opportunities for local marketing.

Facebook and Google ads allow you to be super-targeted with audience and message, even down to the search terms with which you want to be associated.

If your potential customer is likely to be highly influenced by reviews or recommendations, then look for ways to incentivise current customers: offers like “refer a friend” can be incredibly effective.

I am often asked how much a franchisee should plan to invest in local marketing. There is no magic number, and it can vary greatly depending on the category, level of national investment and location of your business. But I will say that marketing is all about trial and error. You need to start with an objective, try something, track the results and use the learnings to adapt your next efforts. It is best to invest a small amount purposefully, then build your investment once you know what works.

The good thing about being in a franchisee business is that you don’t

Marketing is all about trial and error ... invest a small amount purposefully, then build your investment once you know what works.

have to go at this alone. Your franchisor should provide resources, case studies and insights into what works, creative materials and expert guidance on how to use marketing to grow your business.

Finally, don’t wait. If you are opening a store, it is important to start building awareness well in advance, and keep it up. When in doubt, pretend you are

a customer. Walk down the street and see what catches your eye, do a Google search for your services and see what pops up.

Staying in tune with your customers’ needs and experiencing your own path to purchase will often make the marketing opportunities stand out. n

BE A BOSS! OWN A NENE STORE The NeNe Chicken brand is gaining momentum as un-touched locations look to offer an authentic taste of Korean fried chicken.

We have a formula for growth that we’re sharing with all franchisees. If you’re interested in becoming your own boss whilst being supported by global experience and resources - let us know today.

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Site Development - Franchise consultant - Site selection - Store design and construction

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FRANCHISE BASICS

IT BESCARY NEED NOT

From the most basic accounting package to complex delivery-tracking systems, technology is helping franchisees spend less time running their business and more time growing it, writes Domini Stuart.

T

echnology is developing so quickly it soon becomes out of date. This can be quite a headache for most small businesses, but when it comes to franchisees their head office usually has everything sorted.

“Most franchisors are highly conscious of the role technology plays in running a successful business,” says Amy Renae, GM of POS software vendor Shift8.

“They do their best to ensure franchisees have everything they need to meet their customers’ expectations.”

Franchise Legal Melbourne principal Ilya Furman agrees. “It’s the franchisor’s role to be a leader, and that means providing the best possible tools for running the business.

In retail, for example, this would usually include current POS, stock-management and financial-management systems.”

As part of due diligence, he suggests intending franchisees should investigate which software packages are favourites for particular business sectors. “You should know how the system the franchisor wants you to use is rated on the market. If it doesn’t fare well, ask the franchisor why it was chosen.”

Renae says both franchisors and their franchisees need to accept that technological change is an inevitable part of running a business. “Change is never easy, but franchisors must stay relevant and up-to-date – and franchisees must understand that this is what it takes to

keep their customers happy and their business at the leading edge.”

DRIVING CHANGE In some cases, franchisees drive the change. “We often see franchisees talking to each other about systems or apps that are working well for them,” says Renae.

“They then take this information to the franchisor, who might decide to implement the innovation across the group.

“As a supplier, we also like this type of feedback as it pushes us to keep our platform relevant.”

Whether it is included in the initial franchise fee or listed as an extra cost, technology has to be paid for. Renae says an increasing number of franchisors have been implementing an IT (information technology) levy. “Like a marketing levy, it ensures the franchisor has the resources to provide a specific service – in this case, technology updates and support.”

Some franchisors ask franchisees to buy software from a particular supplier, specifying for example MYOB accounting software rather than Xero. “This is called third-line forcing and, in many cases, is prohibited under competition laws,” says Furman.

“If franchisors can demonstrate they have a good reason for the preference, such as consistency across the brand, easier integration, greater efficiency or lower cost,

they may obtain immunity from prosecution by the Australian Competition & Consumer Commission (ACCC). But you may not be able to discern how the franchisor has addressed this issue by simply reading their disclosure document.

“An experienced franchise lawyer can help you establish whether you can have a choice of supplier, and under what circumstances.”

RISKY BUSINESS Many franchisees are now using technology to collect customer information so they can personalise their offerings or target their marketing. However, a compromise of private information could put your customers at risk, harm your business and damage the reputation of the brand.

“It is important to check that the franchisor complies with all the relevant legislation and regulations,” says Furman.

“Again, a lawyer with experience in franchising will uncover any weak points in the system.”

It is also possible your due diligence will expose problems that your franchisor is not aware of.

“In this case, you may need to enter into a non-adversarial discussion with the franchisor,” says Furman. “It is important to address any issues before you sign the franchise agreement.” 

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FRANCHISE BASICS

DRIVING Just like any adventure, your business journey needs careful preparation and planning, with due caution for bumps along the way, but franchisees have one big advantage in that they are not travelling alone.

NEIL SOARES AND HOLLY BARNES DC Strategy

C

ongratulations if you have signed up to be a franchisee. You are ready to launch into your exciting new business, and probably envisage it will be everything you have ever hoped for.

You can update your LinkedIn job title, order the business cards and prepare for your future success.

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FRANCHISE BASICS

Like any business owner, you believe the rewards will always outweigh the blood, sweat and tears. But how do you ensure your new business investment will make the cut in this extremely competitive market?

You know it is going to be slow at the start, but you have the determination to ignite the process and push ahead.

But where to begin? Firstly, create a framework for the first year or two, and you will be well placed to succeed in your business journey.

There are important pointers to remember and anticipate on the adventure. The first is your business plan, including setting up your trading entity.

Whether you run it as a family trust, as a sole trader or as a company, the business plan will help you to anticipate the future, minimise tax and distribute profit. It is also important to rely on a good accountant.

Your business plan should also identify the working capital you will need to secure your business until it

becomes profitable. This will determine how long your business can survive paying its overheads such as rent, wages, cost of goods and royalties, as well as your personal living expenses such as mortgage and school fees.

TALK TO PEOPLE Another important aspect of your planning is to talk to people who have been on the same journey. Seek advice from other franchisees in the network you are considering joining, not forgetting people who may have abandoned their quest – franchisees who have left the network for whatever reason. It is most important to weigh the advice from other wayfarers before you set out on your journey.

Having a business plan is similar to having a roadmap: it is a guide to help you reach where you want to go. A business plan keeps your destination (goals) in

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

Opportunities now available!

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

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view, focuses the mind and compels action. It also means that should you start to go off track, you have a point of reference to return to so you can adjust the course as needed.

Your business plan covers the essentials of your business journey...

• Your goals (destination) • Your steps to achieve these • The budget you will need Along your business journey you also have reference to the franchise operations manual, and training. And to help you breathe easily, the document affirming independence of advice that accompanies the disclosure document is an assurance for you that the franchise has been reviewed by experts.

Under the Franchising Code of Conduct you are required to sign and acknowledge that you have taken independent legal, business and financial advice about a franchise agreement and any other representations made by a franchisor – or that you decided

otherwise. But like any journey, it is wise to have travel insurance, and paying for specialised franchise legal and financial advice is certainly a good policy.

SHORT-TERM SACRIFICES Who goes along with you on you franchise journey? Your family, of course, so it is important they are all engaged and equally focused on helping you achieve success. After all, your family will ultimately benefit from your hard work.

Frequent transparent communication is crucial to retain family support, as the reality is that there will be long hours, missed holidays and unexpected commitments. However, the long-term benefits far outweigh the short-term sacrifices.

But whatever bumps there are in the road, you always have your “GPS navigation” to fall back on – your franchise support team, including the business

Better Service. Bigger Results.

Act now and move your business to be ready for 2018! - A selection of space for your consideration

FOR LEASE

911 High St, Armadale

93 Burwood Rd, Hawthorn

1/176 Bambra Rd, Caulfield

52 Toorak Rd, South Yarra

136 Greville St, Prahran

476 Centre Rd, Bentleigh

2/118 Chapel St, St Kilda

1272 High St, Armadale

109 Acland St, St Kilda

1/182 Commercial Rd, Prahran

637 Camberwell Rd, Camberwell

936B Glenhuntly Rd, Caulfield

LIAM RAFFERTY 0421 886 655

MAX WARREN 0488 296 892

Boundaries are indicative only

Boundaries are indicative only

FRED NUCARA 0418 567 560

Level 1, 107-111 High St, Prahran NOVEMBER/DECEMBER 2017 | 105 | WWW.FRANCHISEBUSINESS.COM.AU

BRENDAN BURMISTROW 0414 288 229

8532 2222

beller.com.au

FRANCHISE BASICS

It is most important to weigh the advice from other wayfarers before you set out on your journey.

development, area or regional manager, who are ready to help if you stumble.

Every step of the way you are not alone.

This is one of the key benefits of owning a franchise business and working with an established brand.

You are in this position because you have done your research. It is an opportunity that allows the independence

of small-business ownership while being supported by the benefits of a big business network. Franchises have a higher success rate than startup businesses, and furthermore, it is far easier to secure finance for a franchise.

With all these benefits, your journey should be far less bumpy.

Along your way, observe all the

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“road rules”: meet all your franchise agreement obligations, pay your royalties and levies, and ensure you cover your employer obligations. You can also keep on track by reviewing your business plan at least once a year with your business advisors and your family.

BE ALERT Be aware of what is happening around you. Do not become “store blind”, failing to observe small changes or mistakes. Be alert to unexpected interruptions such as changing market conditions, increased competition and seasonal fluctuations. On the other hand, watch out for opportunities to grow your business. Monitor the market, stay hungry and be flexible.

Don’t forget to use your operations manual. It offers plenty of information designed to help you reach your full potential. It is a step-by-step guide to every aspect of the business.

Finally, gauge your progress

by monitoring the return on your investment. You need to determine the time frame to pay back your original investment and interest on any loans. You need to ensure your franchise agreement and any leases are long enough to meet those obligations, as well as pay yourself a reasonable wage. Ideally, when you are ready to sell you should have a capital return that makes all the sacrifices along the journey worthwhile.

Meanwhile, don’t let anything stop you from planning further ventures.

Have a plan, use it, change it, but keep your long-term goals in mind, such as multi-unit expansion or consolidating the business for your ideal lifestyle. n Neil Soares has first hand experience in the franchising space. He has over 25 years of experience in franchising operations, business consulting and business development around Australia.

Holly Barnes is a valuable asset of the DC Strategy Group. She has extensive marketing and recruitment experience having worked for international organisations in South Africa and London.

Since

1920 A global leader in tools & franchising

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25/01/2017 1:43:54 PM

5

FRANCHISE BASICS

START-UP

ESSENTIALS

As you’re poised to sign up to a franchise and start your next great adventure, what fundamentals will you need to have in place? Certain key elements can help ensure you have an easy transition into your new life as a franchisee.

J

umping into a new business as a franchisee is exciting, irrelevant of your age or experience. While first-time business owners will have concerns about the big step, franchising provides the support, experience and branding of a business that has already worked out a path to success.

There are five areas crucial to a new business, but it is also worth considering the value of external advice before you take the final step to becoming a franchisee.

Independent counsel can be particularly beneficial when it comes to the financial, legal and leasing elements of a franchise business.

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Meanwhile, here are the five essentials recommended by Inside Franchise Business:

1. TRAINING Whether or not you have a relevant skill set for the business sector you have chosen to invest in, training will be a major contributor to starting out your new enterprise with a competitive advantage.

One of the great benefits of a franchise is the ability for new recruits to open the doors to their business already armed with the basic tools they need to start trading.

Skilled masters and newbies alike benefit from learning the ropes and adopting the methods and processes that work for their particular business model.

Initial training should include simple business practices as well as technical and brand education. Keen franchisees will make the most of ongoing opportunities to train so they can refine techniques and customer service.

2. WORKING CAPITAL Cashflow wields an extraordinary amount of power over a business. No matter how well developed the franchise model, how efficient the franchisee, how strong a customer base, trouble with cashflow can be fatal.

Many a business, franchised or independent, has fallen foul of a cashflow crisis, and

it can strike early on in the trading life of a business. This means it is essential to ensure you have enough funds, or working capital, to back up the franchise as you build up business as well as ride out the tough times when bills have to paid and for whatever reason the coffers are empty.

Take advice from the franchisor and other franchisees as to how much working capital you will need to start.

3. LOCATION It could be a territory for a mobile business, or the site for a gym or shop – where you position your business will be crucial for its development. Advice from the franchisor about this is paramount, but it is worth backing up the information and guidance provided with independent expert opinion.

It is also worthwhile doing your own research on location. There is nothing like watching customer traffic for a coffee shop to give you a sense of whether or not the site is viable for your business.

4. EMPLOYMENT LAW You may be start out as a sole trader and later employ a staff member, or perhaps you are buying a business that needs a team from the get-go. That means you need to be right on top of employment law.

In many cases franchisors can point you in the direction of the relevant awards and provide information from government bodies like the Fair Work Commission. Recently the Fair Work Act has been amended, making franchisors liable, in certain circumstances, for workplace breaches by franchisees. This means your franchisor may introduce new policies or systems.

Remember, however, that the law is quite clear: as a franchisee, you must ensure staff members are paid correctly at all times, and receive their due entitlements. If you are not clear about employment law, be sure to seek professional advice.

5. SUPERANNUATION AND TAX Superannuation and tax are important payments, not just for employees, but for franchisees. Sometimes these payments can be overlooked in the rush to get a business up and running, but you can preclude this possibility by including the payments in your budget and business plan, and by scheduling reminders. Alongside franchisee fees, rent and utility bills, these costs cannot be avoided.

If you establish the payments in your financial structure from the start, it is one less headache as you progress, freeing you up to focus on building up your new business. n

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GLOSSARY

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: an existing

independent business that joins a franchise network.

DISCLOSURE DOCUMENT: this

document provides information about a franchise system, the franchisor and the franchised business. It must be supplied to a prospective franchisee in accordance with the Franchising Code of Conduct.

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

FIELD MANAGER: an individual tasked with managing a group of franchisees, with a focus on relationships, brand alignment, and sales and profit. This role might also be called business development manager or area manager.

FIXED SERVICE FEE:

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

(above a minimum payment).

FRANCHISE AGREEMENT:

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

FRANCHISEE: an individual

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

FRANCHISEE ADVISORY COUNCIL: a structure for

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

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

FRANCHISING CODE OF CONDUCT: a mandatory

code that governs franchising in Australia. It is designed to guide the behaviour of franchisors and provide certain protections to franchisees. It is administered through the Australian Competition and Consumer Commission (ACCC).

FRANCHISE TERM: this

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GLOSSARY

is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. Franchisors often refer to a term with two options to renew as 5 + 5 + 5, for instance.

FRANCHISOR: the franchisor

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

GREENFIELD SITE: a

brand new site.

GOODWILL: this is a

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

INFORMATION STATEMENT:

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

INTELLECTUAL PROPERTY:

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

LICENSE: the right to use

intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not

the same as a franchise.

LOCAL AREA MARKETING:

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

MARKETING & ADVERTISING LEVY: a regular flat or

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

for a further term. This process is bound by the Franchising Code of Conduct. There is no automatic right of renewal.

ROYALTY: fee paid by the

franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support.

It may be a flat fee or a percentage of sales or profit.

franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied.

TERMINATION: the ending of the franchise contract between franchisee and franchisor, usually for breach of contract.

Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement.

MULTI-UNIT FRANCHISEE:

TERRITORY: is the area assigned

MASTER FRANCHISEE: a

a franchisee who has been granted the rights to run more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.

OPERATIONS MANUAL:

the franchisee’s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information.

REGIONAL FRANCHISEE:

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

RENEWAL: once a franchise

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

to franchisees for their business. Territories can be exclusive or nonexclusive.

TOTAL INVESTMENT: the total

amount of money a franchisee requires to set up in business.

This includes the franchise fee, working capital and any equipment purchases required.

TURNKEY FRANCHISE: a

franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.

WORKING CAPITAL: the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.

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CHECKLIST

CHECKLIST

30

THINGS TO CHECK BEFORE YOU INVEST GET SET PRIOR TO YOUR PURCHASE WITH OUR EASY CHECKLIST. JUST TICK OFF THE MUST-DO ITEMS.

Are you confident in the franchisor?

Have you worked out your operating costs?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

Do you know the term of the agreement?

What training is available and who pays for it?

Is the franchisor compliant with the Franchising Code of Conduct?

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

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

Have you run a credit check on the franchisor?

Is the business operating from fixed or mobile premises?

What marketing will the franchisor implement?

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

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

What marketing is your responsibility?

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

Does the length of the lease match the franchise term?

What is the dispute resolution process?

What are the store fit-out costs?

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

Have you evaluated the financial returns?

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

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

What royalties are there and how are they calculated?

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

Do you have an exit plan?

Are you restricted in your product purchase?

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

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

DIRECTORY

ASIA-PACIFIC CENTRE FOR FRANCHISING EXCELLENCE

organisation or anyone involved in the franchise industry including franchisees.

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

Visit: WWW.FRANCHISE.ORG.AU

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

FRANdata is the home of the Australian Franchise Registry which identifies franchise brands that have up-to-date franchise agreements and disclosure documents, and which have confirmed with the Registry their compliance with the Franchising Code of Conduct.

FRANdata also provides reports on the franchising sector.

Visit: WWW.FRANCHISE.EDU.AU

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC) The ACCC is an independent Commonwealth statutory authority which regulates the mandatory Franchising Code of Conduct (Code) and can investigate alleged breaches of the Code.

The ACCC is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.

Its role is to protect, strengthen and improve the way competition works in Australian markets and industries.

Visit: WWW.ACCC.GOV.AU

BUSINESS.GOV.AU This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business.

New business owners can access the advice finder, events calendar, grants and assistance finder, a directory of government and business associations, planning templates, business videos, and business checklists.

Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training.

Visit: WWW.BUSINESS.GOV.AU

FRANCHISE COUNCIL OF AUSTRALIA The FCA is the main body for representing franchisees, franchisors and service providers in the $146bn franchising sector in Australia.

Becoming a member of the FCA is a voluntary and is available for any

FRANDATA

Well established in the US since 1989, the business was established in Australia in 2013 to help the franchise sector address key strategic challenges and take advantage of opportunities available to qualifying brands.

Visit: WWW.FRANDATA.COM.AU

THE FAIR WORK COMMISSION Fair Work Commission (the Commission, previously called Fair Work Australia) and the Fair Work Ombudsman (FWO) are independent government organisations that regulate 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

FRANCHISEBUSINESS.COM.AU This is the online arm of the Inside Franchise Business publication. Both platforms are focused on providing essential advice and information for anyone looking to invest in a franchise. The website provides short and snappy business tips and news, video interviews, industry commentary and market reports.

FranchiseBusiness.com.au is also the official directory of the FCA and lists franchising opportunities available in Australia and New Zealand.

Potential franchisees looking to move into the franchising sphere can explore opportunities that currently exist in the market and enquire about the franchisor or brand.

Users also have access to franchise consultants and advisors who can assist prospective or existing franchisees and franchisors with legal, financial educational and training, IT and other services.

Visit: WWW.FRANCHISEBUSINESS.COM.AU

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Everything you need to find a franchise

• Browse more than 4,700 franchise opportunities to discover on Franchisebusiness.com.au – the Official online directory for the Franchise Council of Australia – the peak body for the $146-billion franchise sector in Australia • Free online educational program “How to buy franchise” designed to kick-start your journey into franchising • Access essential financial, legal and business advice and up-to-date news and information • Be inspired by real-life stories of everyday people making their franchising dream a reality

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

INSIDE

ACCESS FREE ONLINE EDUCATION PROGRAM

FRANCHISE BUS I N E S S official online directory

Phone: Shayne Boogaard (NSW): 0418 136 156 Brett Reading (Qld): 0407 877 674 Peter O’Hara (Vic/WA): 0408 175 534 Contact: Shayne Boogaard (NSW): szh@7eleven.com.au Brett Reading (Qld): bzr@7eleven.com.au Peter O’Hara (VIC/WA): pwo@7eleven.com.au www.franchise.7eleven.com.au Start up costs: $400,000 to $1,000,000 PROFILE: 7-Eleven is the largest convenience and independent petrol retailer in Australia with more than 650 stores across VIC, ACT, NSW, QLD and WA. We opened our first store in 1977 and have almost 40 years’ experience in franchising.

Phone: 02 9415 5300 Contact: Raheem Abdul Raheem.abdul@anytimefitness.com.au www.anytimefitness.com.au/own-a-gym/ Start up costs: Enquire PROFILE: Australia’s biggest gym community, Anytime Fitness Australia has over 500,000 members and 450+ clubs nationwide. We’re the brand that brought the 24/7 concept to life, and cut-through app Anytime Workouts. We’re getting Australians moving for a fitter and healthier future.

When you buy a 7-Eleven franchise, you buy two things. Firstly a globally recognised brand name, and secondly a business system that works, one that provides more support than most other franchises. As our stores are open 24/7, support is just a call away 24 hours a day, 7 days a week.

We are looking for Franchisees who have the potential to lead their team to deliver an outstanding experience to customers. Learn more about what it takes to be part of a partnership in success with 7-Eleven, at www.franchise.7eleven.com.au

Phone: (07) 5509 0000 Contact: mark@ozskin.com www.australianskinclinics.com.au/franchise

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au Start up costs from: $52,000 + GST PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its 50 franchisees grow profitable and successful businesses.

PROFILE: Australian Skin Clinics was founded in 1996, and is Australia’s leading skin and laser clinic. Since opening we have helped more than 65,000 people achieve their dreams and make them feel they look and feel the best they can about themselves.

We have spent 18 years perfecting our skills, experience and systems to develop an easily replicable model, with the specific purpose of becoming an international franchise network. This has led to our story being one of rapid growth and achievement.

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

Phone: 07 3860 6716 Contact: Dean Lightfoot franchise@palmoasisventures.com www.baskinrobbins.com.au Start up costs: from $150,000 - $250,000

PROFILE: Beller Commercial

PROFILE: Baskin-Robbins® has been creating irresistible treats to make you smile and feel good inside and out for over 70 years. We’ve perfected the combination of delicious treats and a fun atmosphere.

Now, we’re offering rewarding franchise opportunities that help aspiring business owners thrive and to continue to be the world’s leading chain of ice cream specialty restaurants

Beller Commercial is one of Melbourne’s largest, INDEPENDENT Australian owned Commercial Real Estate Agencies that has been servicing Clients for OVER 40 YEARS. From humble beginnings our business has evolved to provide specialised Commercial Property Services in: Property Management “Preserve rental income and grow your portfolio” Leasing

If you love to have fun and put a smile on people’s faces; if you are hard-working, dedicated and community oriented; and in touch with your ‘ice cream side’; Baskin-Robbins® may be a perfect fit for you.

“Source reliable tenants and negotiate rents for optimum investment performance”

Contact: franchise@palmoasisventures.com to scoop up your own Baskin-Robbins®.

“Recommend the best strategies to negotiate the maximum price” Additional direction can also be provided to Clients in the areas of Property Acquisition, Market Rent Assessments, Valuations, Finance and Project/ Developments.

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

Sales

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

Start up costs: $280,000 - $350,000 + GST PROFILE: Boost Juice is an Australian franchise success story. Founded by adventurer and entrepreneur, Janine Allis, the brand has taken its winning combination of healthy fresh fruit, blended and squeezed into delicious smoothies and juices to open over 480 stores across the globe.

Boost Juice has come a long way from its humble beginnings but one thing hasn’t changed – our commitment to health, fun and loving life. Our partners are provided with an abundance of support and we strive to innovate and develop in all facets of the business. Take the steps to join one of Australia’s most loved brands today!

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

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

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A-Z LISTINGS

Phone: 1300 99 55 12 Mobile: 0488 11 55 33 Contact: David Pascoe franchise@buyaustralianproperties.com.au www.buyaustralianproperties.com.au

Phone: 0490 335 633 Contact: Adam Peppiatt adam.peppiatt@rfg.com.au www.franchising.brumbys.com.au

A-Z LISTINGS

Start up costs:$360,000 - $480,000 Start up costs from: $50K to $100K + GST

PROFILE: Brumby’s is one of Australia’s most iconic bakeries. With a history of baking fresh bread daily since 1975, it has fostered a loyal legion of customers who buy more than 10.5 million loaves each year. Specialising in a range of freshly baked breads and delicious bakery goods, Brumby’s has firmly cemented its position as one of Australia’s most trusted and loved brands.

PROFILE: Buy Australian Properties is the first professional property investment Franchised Business operating in Australia that is a fully accredited member of the FCA

Featuring more than 250 stores across Australia, New Zealand and Papua New Guinea, Brumby’s has also grown to incorporate the specialty sub-brands Brumby’s GO! and Big Dad’s Pies.

We assist clients from all over Australia find and purchase suitable property investment products that suit their needs and wants through our “Unique 4 Step Client Engagement Process” that is based on “Investing with Integrity”. We are a company that is solely focussed on what our clients’ want.

As a Brumby’s franchisee, you’ll receive ongoing training and support to build a robust business and lifestyle you love!

So why wait? Contact Adam to start your very own Brumby’s journey today!

(Franchise Council of Australia) and adheres to their code of conduct.

We are a full-service company that sources and provides property investors with quality brand new house and land packages, townhouses, units, row houses, duplexes, dual occupancies and apartments (Boutique and High Rise) for traditional and SMSF buyers.

Phone: 0406 188 417 Contact: Brett Parsons brett.parsons@rfg.com.au www.thecoffeeguy.net.au

Phone: 1300 659 676 Fax: 1300 659 675 Contact: Dan Toms customerservice@cashflowit.com.au www.cashflowit.com.au

Start up costs: from $129,000 PROFILE: Cafe2U is Australia’s largest and fastest growing mobile café franchise system.

Established in 2000, Cafe2U has become known for serving award winning coffee, delicious cold drinks and a full café menu of hot and cold food.

With more than 170 mobile cafés operating throughout Australia and New Zealand and more than 250 mobile cafés worldwide, Cafe2U continues to lead the market by delivering a premier café experience to workplaces and events far and wide.

As a Cafe2U franchisee, backed by Australia’s leading Franchise operator, you can enjoy your very own Mercedes Benz van, exclusive service territory and the flexibility of being your own boss!

Cafe2U also offers: - Initial & ongoing training - Ongoing national & local area marketing support - Finance options Locations available now. Enquire today!

What can we Fund - New equipment / Used equipment / Fit-outs / Store refurbishments / Re-financing from other lenders / Buying an existing franchise / National equipment roll-outs Franchise Accreditation - If you belong to a Cashflow It Accredited Franchise system, you can enjoy pre-approval and other exclusive benefits.

Phone: (02) 4587 630 Fax: (02) 4587 8733 Contact: Josh Wood josh@chemdry.com.au www.chemdry.com.au

Phone: 03 8359 2142 Fax: 03 9336 3266 Contact: Daniel Worthington Dan.Worthington@plarrefoods.com.au www.fergusonplarre.com.au

Start up costs from $39,950

Start up costs: $250,000 - $300,000

PROFILE: Chem-Dry is Australia’s largest and most successful carpet and upholstery cleaning franchise. Established in 1986 as a healthy and green carpet cleaning alternative, today Chem-Dry cleans more carpet and surfaces than any other company.

Using the company’s patented cleaning solutions and over 35 years of experience, our franchise partners are able to build successful businesses by making their customers’ homes and workplaces cleaner and healthier.

Our franchise partners are passionate about providing their customers with the cleanest and healthiest homes.

A-Z A Chem-Dry franchise is not just about residential and commercial carpet cleaning.

Our franchise partners also clean upholstery, leather, tiles and grout, and are specialists in water damage restoration.

L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

PROFILE: Cashflow It are the franchise finance experts. With competitive rates and flexible terms from 12 months to 5 years, Cashflow It can provide the funding that franchisors and franchisees need today. We offer flexible rental solutions, traditional leasing and business loans tailored to your requirements.

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

PROFILE: 2017’s #1 Food Franchise (TopFranchise Awards 2017) Ferguson Plarre Bakehouse recently celebrated 116 years of baking award winning pies, cakes and tiddly oggies.

Ferguson Plarre Bakehouses are still a family owned and operated business with the 5th generation of the Plarre family still actively involved in managing the day to day running of the business from baking, through to retail shop design, operations and bakery franchising. The Family continue to embrace their forefather’s commitment to quality products, service and innovation.

With no Royalties or Marketing fees, freshly baked products delivered daily to your store and no baking required, the business is perfect for anyone with passion and a small business dream.

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

PROFILE: Fifo Capital provides cash flow assistance to small businesses whilst giving a great lifestyle, excellent returns and an enviable work/life balance to its franchisees. No experience necessary as full training and ongoing support is provided.

Having grown by over 35% this year Fifo Capital is making a huge impact right across the country for a variety of reasons. Below are some of the benefits our partners enjoy as members of the Fifo family.

• • • •

ROI of 50+% annualised* Backed by insurance Part-time potential, Work from home (if you wish),

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• Backed by one of the biggest and most successful finance franchisors in the country.

• Multiple income streams

PROFILE:

Contact: franchising@freshiiau.com www.freshii.com/franchising Start up costs: Investment Levels: $160,000 - $300,000 based on 25sqm to 100sqm Capital Investment: Financing options available from 0% deposit (subject to approval).

Healthii – Easii – Freshii!

Are YOU ready to learn, grow & profit with an exciting new franchise?

Then you’ll love Freshii Australia!

Get a healthy start on your career – Franchise opportunities are immediately available from $160,000 (excl. GST) with Franchise Fee and Fitout included. Financing options available from 0% deposit (subject to approval).

Originating in Canada in 2005, CEO Matthew Corrin was inspired by the service, convenience & quality of ‘Mom & Pop’ delis with fresh food – and decided to create a scalable, branded food model that appeals to modern lifestyles.

Why franchise with Freshii?

• Central locations with convenient opening hours • Uncapped earning potential • Support systems for training, marketing & site development • Opportunities for career growth within Freshii • Delicious, healthy & convenient fast food!

Freshii is seeking motivated, passionate & vibrant franchisees to continue our success within Australia. If you’re interested in aligning with a strong international brand, working with a socially conscious organisation & the autonomy of being your own boss - we’d love to hear from you!

Phone: 02 4957 4230 Contact: Franchise Development Manager jarrod@goodfeet.com.au www.goodfeet.com.au Start up costs from: $150,000 to $250,000 PROFILE: The Good Feet Store Australia and New Zealand franchise is looking for outstanding franchisees.

The ideal candidate should have solid business or retail experience, with strong management skills and business ethics. Candidates should have a customer service mentality, with the desire to enhance the quality of our customers’ lives.

Benefits of a Good Feet Store Franchise * Serves the needs of a large and broad market: people searching for relief of foot, knee, hip, and back pain * A category leader with few direct competitors * Attractive unit level economics: a proven model, The Good Feet Store is designed to generate some of the highest sales per square foot in the industry * Comprehensive branding and marketing: campaign materials and support – broadcast, in-store, online and collateral *The Good Feet Store provides full training and on-going support

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

Phone: 0412 692 052 Contact: David Wilkinson sales.au@inxpress.com inxpress.com inxpress.com.au/franchising

Start up costs from: $350k +

Start up costs: $74,950 + GST

PROFILE: With over 20 years of experience in the hair and beauty industry, Hairhouse Warehouse is one of Australia’s leading retail franchise brands.

Hairhouse Warehouse’s vision is clear and simple. Offer quality products at a reasonable price, whilst providing exceptional customer service. This mission is clearly on display in each and every one of our locations by simply looking at our franchisees and the teams they work with.

As a franchisee, no hair or beauty certification is required - just a passion for success.

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

Phone: 0459 654 146 Contact: Andrew Lyme andrew.lyme@justbettercare.com www.justbettercare.com

PROFILE: InXpress provides a revolutionary concept delivering customers with express freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing increased value and service, saving valuable time and money.

Operating in 13 countries with over 350 franchisees globally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include: • Low entry costs • Guaranteed income* • No inventory/warehousing

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

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

Phone: (02) 8962 8556 Contact: Benoit Davi franchise@kwikkopy.com.au www.kwikkopy.com.au/franchise Start-up costs: $280,000 (for a Greenfield)

PROFILE: Just Better Care is Australia’s largest franchised provider of in-home care services to the elderly and disabled.

We provide a wide range of in-home services and are extremely passionate to support people to live the quality of life they want in the place that offers them the most security and comfort – their home.

Just Better Care has been in operation since 2005, built on over 20 years in community care experience. The exceptional results of the business led to the development of the Just Better Care Franchise in 2007.

Today Just Better Care is part of the global Caring Brands International group and has over 35 offices nationally.

PROFILE: Start your franchising journey with Kwik Kopy, the leading provider of design, print and online solutions throughout Australia.

Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high quality services on-site. Owning your B2B franchise means operating business hours Monday to Friday so you’ll also enjoy work-life balance.

As a Kwik Kopy franchisee you get to become your own boss and be part of a supportive community committed to your success. You’ll also receive all the training you require, so no prior print or design experience necessary.

A Kwik Kopy franchisee is young at heart with business experience, entrepreneurial flair and most of all – an absolute passion for customer service.

We have both existing and new locations for sale throughout Australia.

Phone: 03 9460 6700 Contact: Brendan Flanagan franchising@laporchetta.com www.laporchetta.com Start up costs: $300,000 +

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

Phone: (03) 9653 9203 Fax: (03) 9841 9332 Contact: Christine Lau Christine@laulegal.consulting www.laulegal.consulting PROFILE: A legal consulting firm which understands your business, is commercially astute and offers strategic legal advice on every aspect of your business.

Our principal has advised businesses for over 25 years, owned a wellness business and worked in-house for 8 years.

We partner with you to provide strategic legal advice which factors in compliance issues and your short and long term plans for your business.

We provide advice in: • Franchising (for both franchisors and franchisees, international and local) • Master franchising • Corporate structuring • Stakeholders agreements • Dispute Resolution • Intellectual Property including trade mark, copyright, design advice • ACCC and consumer law advice • Sale and purchase of businesses • Corporate law • Asset protection • Risk management

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A-Z LISTINGS

Phone: 02 9648 2500 Contact: Bob Ozdemir info@lewrap.com www.lewrap.com

Phone: 1800 068 111 Fax: (07) 3100 7888 Contact: Aroha Leigh Email: opportunities@lenards.com.au Website: http://franchise.lenards.com.au/

A-Z LISTINGS

Start up costs: $350k-$400k turnkey PROFILE: Lenard’s Chicken is Australia’s favourite chicken shop and a leading brand among Australia’s fresh food retailers. Our unique concept of value-adding amazing ingredients and flavours to fresh chicken has established our offer as the leader in the marketplace.

Since the first store opened in Queensland, Lenard’s has sold more than 500 million chickens, served more than 200 million customers and injected more than $2 billion into the Australian poultry market. Today, Lenard’s employs more than 2,000 staff in nearly 300 franchises, supermarkets and butchers across Australia and remains one of the great success stories of Australian retailing.

PROFILE: When you join the LeWrap team you are becoming part of the fresh food revolution. Our stores supply the discerning public with quality, fresh-made wraps, plates and salads.

You don’t need prior experience to become a LeWrap franchise partner – we are looking for individuals with ambition, initiative and integrity. Great interpersonal skills are essential as you will be working hands-on in your own store – your passion for LeWrap will be on show!

You will receive full support from our management team, including training, operations and brand marketing, to assist you to become a successful business operator. After all, your success is our success.

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

Phone: 0424 144 035 Contact: Greg Prussia greg.prussia@mbe.com.au www.mbebusinessfranchise.com.au

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

Start up costs: From $130,000 PROFILE: Looking for more than just a print and design company?

Mail Boxes Etc. is a part of the world’s largest Business Services franchise system; with over 1,600 MBE Centres world-wide and growing. We offer a multiincome stream of printing, shipping and mailing services, just to name a few.

Our Owners enjoy a great work/life balance with your Centre opening hours of 8am to 5:30pm Monday through Friday – closed for Public Holidays. As Business Services Franchise, there is no spoilage and we also partner with our training program – no experience is necessary.

Our National Marketing Program will help you identify and find your clients, and our National Supplier Agreements, will ensure you’re always purchasing as cost effectively as possible.

With MBE, it’s an investment in your future.

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

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

PROFILE: Well recognised and published franchise specialist with over 30 years industry knowledge and experience.

Providing advice to:

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

4. Franchisee Advice and fixed fee reports.

1. International Franchisors and 5. Sale/ Purchase of franchise systems.

Franchising.

6. IP/ Trademark advice.

2. Master Franchising.

3. Dispute Resolution – Solutions and 7. Company structures and tax advice.

8. ACCC and Consumer Law advice.

Strategies We provide clients fixed fees based on the scope of work.

Contact Robert on (03) 9604 9400 or by email at rxt@marshmaher.com.au

Phone: 1300 650 330 Contact: Tzuri Avila Phone: 1 300 650 330 franchising@mortgagechoice.com.au Contact: Tzuri Avila www.mortgagechoice.com.au/join-mortgagechoice.aspx franchising@mortgagechoice.com.au

Phone: 0401 388 863 Contact: Joanne Taylor Joanne.taylor@rfg.com.au www.franchising.michels.com.au Start up costs: $320,000 - $400,000 PROFILE: Michel’s Patisserie is Australia’s largest patisserie chain specialising in decadent cakes, French inspired pastries, mouth-watering savouries and our exclusive award-winning coffee. It is this combination that has helped Michel’s win “Coffee Shop of the Year” for the last four years, as voted by consumers.

Being a well known and loved brand, with nearly 300 locations across Australia, there’s never been a better time to join our French-inspired family! Backed by Australia’s leading Franchise operator, Michel’s Patisserie gives you the tools and support you need to successfully run your own business.

Enquire today!

- New & existing sites available - 30 year brand history - Initial & ongoing training provided

www.mortgagechoice.com.au/join-mortgage-choice/ franchise-opportunities.aspx

Start up costs from: $14,815 + GST

PROFILE: Start up costs: $18,796 - $38,796 + Mortgage Choice is an ASX listed company that seeks help Australians with all to terms andtoconditions of their financial needs.

GST – Subject

PROFILE:

Established in 1992, Mortgage Choice was originally established to help Australians Mortgage Choicesituation is an ASX listeda choice company that seeks to help Australians improve their financial by offering of home loan providers, of theirwith financial needs. coupled the expert advice of a mortgage professional.

with all

Since that time, the company has grown Choice and developed into a fully fledged Established in 1992, Mortgage was originally established to help financial servicesimprove provider. their financial situation by offering a choice of home loan Australians

providers, coupled withcustomers the expert advice of a mortgage professional.

Today, Mortgage Choice helps source car loans, personal loans, credit cards, loans, finance,has deposit bonds, anddeveloped risk and general Sincecommercial that time, theasset company grown and into a fully fledged insurance. financial services provider.

Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.

- Ongoing national & local area marketing support - Finance options available

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Phone: 02 9472 8555 Contact: Lee Rubino leer@cookiecorp.com.au www.mrsfields.com.au

Phone: +613 8526 4488 Fax: +613 9645 1859 Contact: Daphne Chin franchise@nenechicken.com.au www. nenechicken.com.au

Start up costs: $200,000 - $300,000

Start up costs from: $500,000 +

PROFILE: Mrs. Fields Franchisees are attracted to our brand, for a wide variety of reasons.

Whether you are currently an experienced business owner or you are commencing a new and exciting journey, Mrs. Fields is a great way to be in business for yourself, but not by yourself, as you always have the full support of your very own Franchise Business Consultant.

Mrs. Fields is all about making people feel good, through simple, special moments.

The mouth-watering taste of Mrs. Fields freshly baked cookies, toasties and savoury selection, along with a hand-crafted Barista coffee (specially blended and exclusive to Mrs Fields Bakery Cafes and roasted at Mrs. Fields Head office roasting facility), what more could you want?

PROFILE: Nene chicken is one of the top Korean fried chicken chains with over 1,000 outlets in South Korea.

NeNe Chicken flew into Australia in 2015 and in 18 months has rapidly expanded to all over Australia.

We pride ourselves on delivering the NeNe experience with uniquely marinated and batter coated fried chicken and range of authentic NeNe sauces.

With Nene Chicken, you can get extensive franchisee owner support and training.

As well as, various marketing activities throughout local and national.

Nene chicken invites you to start your own successful story by becoming a franchisee. Visit our website for further information.

Phone: 07 3088 1229 Fax: 07 3088 1212 Contact: Judy Lesina judy.lesina@nightowl.com.au www.nightowl.com.au

Phone: 0413 546 565 Fax: 8 5095 456 Contact: Marc franchise@nirvanabeauty.com.au www.nirvanabeauty.com.au

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

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

PROFILE: NightOwl is a national convenience franchise system established in 1975 as Australia’s first 24 hour trading Convenience retail business.

First franchised in 1987, we have never stopped growing and with an exceptionally strong brand presence, we now operate over 67 stores throughout Queensland and New South Wales.

Retail experience is not necessary in running a NightOwl, but motivation and entrepreneurial skills are a must. You must be determined to succeed and the Franchisee Support Office will help you with the rest.

We are seeking motivated and hardworking franchisees with a determination to succeed!

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

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

Phone: 02 4626 7777 Contact: Brian Laul franchise@ozfunland.com www.ozfunland.com

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

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

Start up costs: from $300,000 + leased equipment PROFILE: Since it opened in July 2008, The Wizard of Oz Funland has become a landmark in Sydney’s Macarthur Region, a popular community hub and winner of several prestigious awards.

•

A unique, first-of-its-kind venue in Australia, an exciting children’s entertainment, party and education centre.

•

Recognises that children today demand more than just passive play, and that the children’s entertainment sector will soon have to reach beyond current boundaries to remain relevant for the future.

•

An interactive ‘live’ space that is changing the way children are entertained by engaging its young visitors with creative activity and giving them an unforgettable time of adventure, fun & discovery.

A-Z We seek expressions of interest from people who wish to join the growth of Oz Funland in Greater Sydney, Central Coast, Newcastle, Wollongong, Melbourne, Brisbane, Perth, Adelaide and Regional Australia.

Read more at http://www.franchisebusiness.com.au/brands/ozfunland#H8sedhki4FaGDRPz.99

Phone: 03 9645 4667 Fax: 03 9645 4747 Contact: Jian franchise@papparich.net.au www.papparich.net.au Start up costs from: $600K to $1.5M, depending on model/size

PROFILE: Founded in Kuala Lumpur in 2005, PappaRich is a chain of cafés and restaurants in Singapore, China, South Korea, USA, Australia and New Zealand that serves a plethora of authentic Malaysian delights. Each eatery is fitted out with a modern, earthy-coloured interior and an extensive kitchen with hardworking chefs ready to create your meal. Groupies can enjoy a range of roti canai, satay, rice, noodle, fish, dim sum or vegetarian dishes, as well as traditional Malaysian drinks including kopi, teh tarik, and lemon tea.

L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

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A-Z LISTINGS

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

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

A-Z LISTINGS

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

Start up costs: $750,000 upwards PROFILE: Australia’s Franchise System of the Year 2016.

Build your successful business future with us. We have a career path in business that we can tailor to suit you. As a Poolwerx Franchise Partner, you can start small or jump right in. Join us as a man in a van, progress to multi-vans, a retail store and vans and then in multi store. Or purchase an existing fast start mobile territory or retail mobile business. Whatever your journey, we will help you realise your vision.

Our one focus is to create a profitable partnership. We do that by matching over 25 years experience and outstanding support, marketing and business development systems to your energy and enthusiasm.

For more information, visit poolwerx.com.au/franchising.

PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of 150 franchised properties across Australia, New Zealand and Fiji.

For over 25 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended stay corporate travellers among Australia’s top 500 companies.

Quest is now one of the top 15 apartment hotel providers in the world, and widely recognised as the market leader of apartment hotel accommodation in Australia.

To become a Quest Franchisee you must be prepared to make a significant investment and commitment to the business, both personally and financially.

Phone: 61 40710 5613 Contact: Robert Graham robert@ceoconsulting.com.au www.radleys.com.au Start up costs: $130,000 - $180,000 (Master Franchise) / $270,000 - $600,000 (Store/ restaurant)

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

PROFILE: Fresh from years of success in Singapore, Radley’s, the Australian sister brand of The Rotisserie, is opening its first Australian restaurant in Chatswood, Sydney in December 2017.

PROFILE: Redcat POS is an integrated end-to-end Australian-based hospitality solution, including round the clock local support, designed for the rigours of hospitality. Our system gives you the information you need to grow your business, without having to be an IT expert. From head office to store - hassle-free IT, leaving you free to do what you’re good at – offering great food, drink and service to your customers.

Radley’s offers a comfort-food menu covering breakfast, lunch and dinner – from coffee during the day to alcohol at night. Meals come in large portions at affordable prices, with each food product prepared fresh daily.

Redcat’s end-to-end point of sale, accounting and business management solutions give users total control of their business. Our customers include some of Australia’s best-known franchises, restaurants and cafés.

Radleys is inviting expressions of interest for Master Franchisees in Victoria, Queensland and WA as well as store level franchises in NSW.

Redcat Polygon is an integrated software and hardware solution that manages sales, staff, stock, payroll, accounts, inventory, online ordering, smartphone apps, and customer loyalty. Polygon includes web based multi-site reporting, to provide a complete business management system. Our 3rd party integrations round out the solution, covering everything from accounting to rostering.

For all the information you need to make a great business choice visit www.radleys.com.au or contact Robert Graham at robert@ceoconsulting.com.au.

Phone: 07 5455 3822 Fax: 07 5455 3616 Contact: Gary Shearer franchise@safetyquip.com.au www.safetyquip.com.au

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

Start up costs: $250,000 - $500,000 plus working capital PROFILE: SafetyQuip is Australia’s only franchised player in full scope Workplace Safety Supplies and services – a booming, billion dollar market. Serving a target market of small to medium-sized businesses, a developed SafetyQuip franchise has a counter-sales base and distribution warehouse anchoring one or more mobile units, providing customers with competitive pricing yet the personal service of a local business. It’s a potent combination, with franchisees turning over up to $3.4 million pa.

The SafetyQuip system, highly developed over 20+ years, has thirteen territories currently operating across Australia. No prior experience in safety is necessary.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

PROFILE: Snap-on Tools is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers and technicians across the country. Snap-on Tools Australia & NZ is a wholly owned subsidiary of Snap-on Inc., a developer and manufacturer of innovative and technologically advanced tools with over 4,500 franchisees worldwide.

After 30 years in the Australian market, Snap-on Tools continues to grow with an increasing number of franchisees reaching the million dollar club, and new growth opportunities available for existing franchisees such as sales assistants, multi-units and specialised tool storage and diagnostic sales programs.

Initial training occurs in Dallas, USA and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.

Phone: 1300 781 735 Fax: (02) 9150 0837 Contact: Stacy Alogdellis info@soccajoeys.com www.soccajoeys.com.au/franchise PROFILE: Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 8 years.

We deliver our programs to over 35,000 children annually with over 300 classes in operation across the country.

Transform lives, including yours and become a Soccajoeys Franchisee.

We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives.

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• 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.

AZ-The Cheesecake Shop.pdf 1 11/8/2016 10:54:58 AM

Phone: 029723 97231011 1011 Phone: 02 02 9723 Phone: Fax: 029727 97276771 6771 Fax:02 02 9727 Fax: Contact: Nick Nick Avgerinos Contact: NickAvgerinos Avgerinos Contact: Email: franchise@cheesecake.com.au franchise@cheesecake.com.au franchise@cheesecake.com.au Website: www.cheesecake.com.au www.cheesecake.com.au www.cheesecake.com.au

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

Start up costs costs from: $200,000 --$800,000 Start $1million Startup up costsfrom: from:$200,000 $200,000 - $800,000

PROFILE: Splash Swim School is a boutique custom-made swim school. We have a state of the art turnkey fit out. Our pools are custom made to suit any size warehouse. We follow Royal Life’s Swim and Survive program that is accredited Australia wide.

Full training and support. An easy 1800SPLASH telephone number to remember.

Operation system and full support Splash have their own in house architectural service, project manage and building contractor that are registered in all states of Australia

PROFILE:

PROFILE: PROFILE: The Cheesecake Shop opened in 1991 and has developed into an Australian TheCheesecake Cheesecake Shop Shop opened 1991 into anan Australian The openedofininalmost 1991and andhas hasdeveloped developed into Australian favourite with a massive network 200 stores across Australasia. favourite with with aa massive massive network 200200 stores across Australasia. favourite networkofofover almost stores across Australasia.

Our award winning system makes for one of the simplest businesses to operate.

Our award winning system makes for one of the simplest businesses to operate.

Our award winning system makes for oneyou of need the simplest businesses operate.

Our systems guide you on how many cakes to produce each weektoand Our much systems guide you on how many cakes you need to produce each week and how of each to order.

Our systems guideingredient you on how many cakes you need to produce each week and how much of each ingredient to order. how muchare of baked each ingredient order. recipes. You don’t need to be a chef or Our cakes from easy to to follow Our cakes are baked from easy to follow recipes. You don’t need to be a chef or a baker, its so Our cakes areeasy! baked from easy to follow recipes. You don’t need to be a chef or a baker, its so easy! loveitstoso bake cakes for the kids then here is your chance to turn your aIf you baker, easy!

If you love to bake cakes for the kids then here is your chance to turn your If you love to bake cakes for the kids then here is your chance to turn your

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

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

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

Start up costs: $700,000+

PROFILE: The Sporting Globe Bar & Grill is Australia’s most loved sports bar and grill franchise.

Offering high quality casual dining in a social and welcoming atmosphere with a state-of-the-art sports fitout, The Sporting Globe is great place to eat, drink and catch a game.

The Sporting Globe business model has been designed to allow our Franchise Partners to focus on what is most important – customers!

With venues opening across Australia, now is the time to get involved with Australia’s fastest growing sports bar and grill brand – do something you love, enquire today!

PROFILE: Unique Laser is revolutionising the aesthetics industry…

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

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

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

Start up costs from: $49,500 + GST Start up costs: $100,000 - $250,000 PROFILE: We make food that adds a smile to your day. Just one bite and you’ll know you are eating something special; something reminiscent of your childhood.

A simple model with absolutely minimal baking* in store; just filling, decorating and displaying. Our famous varieties include Boston Custard Cream, our signature Vanilla Glazed, Pretzel Choc Caramel, Cherry Bomb, Cookies & Cream and many others. Our *Hot Jam doughnuts are freshly proofed and cooked on site throughout the day. The aroma is impossible to resist!

Together with our specialty-coffee created especially for Walker’s, our Classic hot dog flavours, our soda-fountain diner Milkshakes, and our speciality Heritage Sodas imported exclusively by Walker’s Doughnuts directly from the USA, you’ll find us an unbeatable and irresistible offering.

Phone: 1300 73 44 33 Mobile: 0428224433 Contact: Darren Young franchising@yarravalleyfarms.com.au www.yarravalleyfarms.com.au/franchise Start up costs: $75,000 + PROFILE: Yarra Valley Farms are wholesale suppliers of quality fruit and vegetables to the Hospitality Industry; including some of Australia’s best restaurants, hotels, cafes, caterers, education and care facilities.

We source fresh produce from farmers, and deliver this directly to customers via owner-operated Franchisees. Our Franchisees collect the produce from our distribution centres and deliver it to our customers each morning.

Our franchise offers a great work/life balance, and a guaranteed income for the first 6 months.

We’re looking for positive, passionate, motivated and fun loving people to become Yarra Valley Farms Franchisees, so if that sounds like you, contact us today!

PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded!

This pent up demand for gourmet coffee in the workplace is very poorly met.

Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees.

A-Z

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

L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

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A-Z LISTINGS

FINAL WORD

RUNNING A BUSINESS

WITHIN A BUSINESS

Working within the restraints of another person’s system is not for everyone, especially if you have an entrepreneurial spirit.

ANDREW TERRY Professor of Business Regulation, University of Sydney Business School, and member of the FCA Hall of Fame.

O

ne of the most hackneyed phrases in franchising is that “franchisees are in business for themselves but not by themselves”. As with so many other hackneyed phrases, it is a victim of its own success.

It is because it so succinctly sums up the reality of franchising that is has become overused. Franchisees do run their own businesses and are legally and financially independent of the franchisor, but they do so in accordance with, and with the use of, the franchisor’s system under licence. In other words, franchisees indeed run their own business, but within the constraints and controls of the franchisor’s business.

Running a business within a business should be a piece of cake. Business format franchising, the contemporary franchise model, is so called because the franchisor provides a complete and comprehensive blueprint – an entire business format and management systems for running a business.

Business format franchising is a sophisticated business relationship whereby a franchisor develops an individual way of doing business and permits the franchisee to use that system, in a controlled manner, in their own independent business. It is characterised by an ongoing business relationship between the franchisor and the franchisee that includes the product, service and trademark as well as the entire business concept itself – a marketing strategy and plan, image, comprehensive standards, systems and format, working manuals, training, quality control and a continuing process of help, guidance and supervision.

What could be easier than plugging into the proven system of the franchisor? Well, plenty. The willingness and the capacity

The willingness and the capacity to work within another’s system is not for everyone.

to work within another’s system is not for everyone. A franchisee needs to be entrepreneurial enough to leave the security of employment and assume the financial, managerial, time and other commitments of business proprietorship, yet flexible enough to run the business in accordance with detailed and prescribed system parameters.

This is not for everyone.

The term “intrapreneur” has been developed to describe franchisees whose entrepreneurial ambitions have to be realised within another’s system. Living someone else’s dream is not for everyone.

Several years ago when writing about franchises, I told the story of a high-school friend who, after 30 years of employment with a significant organisation whose policies, strategies and business practices he never agreed with, resigned in frustration and went looking for a franchise to buy. I made him promise me he would never become a franchisee as it would lead only to recriminations and regrets and grief. He would have driven the franchisor mad, and the franchisor would have driven him mad. Nothing would ever be right.

Franchising may have been a good fit for my friend, but only as a franchisor who could build the

business he wanted and have the ultimate control over those licensed to use it.

Some franchise systems, of course, offer a franchisee more scope for entrepreneurship.

Established franchise systems frequently prefer multi-unit franchisees – franchisees who can run multiple franchise outlets. The franchisor in effect delegates a range of responsibilities to the multi-unit franchisees, who employ and train managers to run their units.

Running a multi-unit business, of course, poses greater challenges than a single outlet, but in either case the franchisees must be prepared to be intrapreneurial while working within the franchisor’s system.

Plato and Socrates sadly never turned their mind to franchising, but had they had been asked by a prospective franchisee about the wisdom of running a business within a business, they might well have replied with the ancient Greek aphorism that resonates through their writings: “Know thyself”. 

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