Inside Franchise Business Nov/Jan 2020

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

NOV/JAN 2019-2020

5

steps to the right franchise

ISSUE 32 VOL4

YES YOU CAN DO IT! Brilliant tips for sole traders

SLICE UP YOUR LIFE Spotlight on pizza

PR I N T P O S T A PPR OV E D 10 0 0 0 8121

AUS $6.95|NZ $7.95

Supercharged!

Six sensational franchisees chart their paths to success

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

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

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

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

CONTACT DETAILS – Franchisee Development Managers

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

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

Shayne Boogaard, NSW

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

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

FRANCHISING

MOWING LAWNS, MAKING COFFEES OR FLOGGING MORTGAGES

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

Well, except for a Powerfulpoints franchise.

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

As a PowerfulPoints franchisee, you too can make a significant difference.

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

You won’t be doing the design; we have specialists to do that for you. Your job is business development and client service.

If your career to date has involved building a network of business contacts, this is the ideal franchise for you. You will get the opportunity to build an income and an asset.

This opportunity has extremely low fixed costs and has the opportunity to run you business from your own home if you wish.

You will receive extensive training and committed ongoing support. Your first 4 weeks will be spent learning what you need to know to successfully start and thrive in your franchise.

The following 6 months will see that training supplemented on a weekly basis. Even after this period, you will continue to receive ongoing product, technical and IT support to make sure you feel comfortable, confident and have all the tools and knowledge to succeed.

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

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

FRANCHISE

FINANCE AUSTRALIA

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CONTENTS

REGULARS

LEADERSHIP

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

20 HIGH ENERGY BARS

Check out these 21 fitness franchises.

44 SUPERCHARGED!

Six franchisees reveal their paths to success.

54 YOU CAN DO IT!

Brilliant tips from solo franchisees on going it alone.

24 SCHNITZ AND PIECES

A new CEO is leading this 70-store strong Aussie icon into 2020.

30 FOR WHOM THE BELL TOLLS

How Taco Bell is targeting Australian expansion.

32

SPECIAL FEATURE

CHIPPING IN

Why KFC is handing out behind-thescenes support by the bucketload.

36 PLUGGED IN FOR GROWTH

72 BAG A BUSINESS FOR

Former McDonald’s franchisee fires up national retailer.

LESS THAN $100K!

Cost-conscious franchise brands that are within your budget.

40 WHERE THE HEART IS

58 BUBBLE RAPT

Milksha brings its tea charms to Melbourne.

61 COMMUNITY BREW

Regional Muffin Break franchisees are serving up success.

64 FAMILY FORTUNES

Three generations’ passion for the print industry.

66

A SOCIAL NETWORK

70

DAY IN THE LIFE OF …

Which brands have their fingers on the social media pulse?

Nick Patrick, Soul Origin.

Former nurse forges her own path as Home Caring franchisee.

SPOTLIGHT

FRANCHISE BASICS

78 COOKING WITH CULTURE

110 TERRITORY OR EXCLUSION ZONE? 136

Aussies can’t get enough of the flavours of the East.

What franchisors really mean.

114

5 WAYS TO BE A TOP FRANCHISEE

Tips for turning a business into a roaring success.

116 IT’S THE REAL DEAL

Why a franchise agreement deserves your full attention.

86 A LASER APPROACH TO BUSINESS

Cutting edge techniques shape laser clinic performance.

90

SLICE UP YOUR LIFE

94

FINDING THEIR FEET

It’s hard to go past pizza, it’s a fast-food favourite.

NAVIGATING THE FRANCHISE E-FACTOR

Ensure your team members become top performers.

142 5 LESSONS IN ASSESSING A FRANCHISE

Top tips from the ACCC on how to find the right business.

121 GETTING FINANCES IN ORDER What counts when looking for a loan.

124 HOW TO MEASURE YOUR MARKETING

Learn the crucial indicators that help your campaigns succeed

129 YES, YOU CAN ACHIEVE THOSE GOALS

Sports-loving franchisors are helping young Aussies stay fit.

Good training can give you the confidence to reach your targets.

Hot property trends driving WA

Combatting common concerns about staffing.

102 WEST SIDE STORY

132

NO WORRIES!

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147 HOW DOES IT WORK?

The finer points of selling a franchise.

162

MYTH BUSTER

I don’t have to pay fees if the franchise lets me down.

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

WHY NIGHTOWL?

SUPPORT

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

•

YOUR SUCCESS IS OUR SUCCESS

•

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

•

•

• •

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

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

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

Speak to us about franchise opportunities today Franchise Sales Manager E alan.minshull@nightowl.com.au M 0498 955 890 W franchising.nightowl.com.au

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

nightowl.com.au

EDITORIAL

Great expectations Riding the rollercoaster to franchise success What do you expect out of your franchise? I imagine there will be a number of things that come to mind — personal and financial goals, lifestyle changes, fulfilment of ambition, a new start for instance.

Whether or not you have made the decision to buy a franchise or are still considering the options, the process of uncovering opportunities and potential income streams that will meet your wishlist can be fascinating, inspiring, frustrating, and all-consuming.

And that will probably sum up your experience as a franchisee too.

Greg Nathan, the founder of the Franchise Relationship Institute, is well versed in the rollercoaster ride that all franchisees undertake. Firstly, he’s a former franchisee himself. Secondly, his business is highly experienced at observing and recording the relationships and typical behaviours between franchisee and franchisor. That’s why Inside Franchise Business asked him to share some invaluable insights about what he calls the Franchise E-Factor — the common attitudes that each franchisee displays at various stages in the life cycle of owning and operating a franchise. Find out what you and every other newbie franchisee will be feeling over your business term with this insightful article on page 136.

Expert advice is always at the core of Inside Franchise Business magazine, and this edition is no different, packed full of advice on finance, legals, HR, marketing and training as well as pointers from the Australian Competition and Consumer Commission on page 142.

These tips will help you formulate a sense of the issues to consider before and as you embrace business ownership.

In this issue six supercharged franchisees are sharing their stories of overcoming challenges and taking the road to success. Turn to page 44 to read about how a go-getter, nurturer, serial entrepreneur, strategist and two new Australians have built a future out of franchising.

Inside Franchise Business is always packed full of inspirational articles; I hope you enjoy this edition.

And don’t forget to keep an eye on the news updates through our e-newsletters. Just go online at www.franchisebusiness.com.au and sign up to receive regular emails.

EDITOR

SENIOR ACCOUNT MANAGER

SUB-EDITOR

Marketing & sales co-ordinator

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

Karen Gee

JOURNALIST

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

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

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

GRAPHIC DESIGN

Rozelle Carlos rozelle.c@octomedia.com.au

Sar a h Sarah Stowe Editor

OCTOMedia

L10, 51-57 Pitt St. Sydney NSW 2000 PO Box R217, Royal Exchange, NSW 1225 Ph: +61 2 9901 1800 www.octomedia.com.au

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GENERAL MANAGER

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

NOV/JAN 2019-2020 | 11 | WWW.FRANCHISEBUSINESS.COM.AU

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

GLOBAL EYE

MARKET

MATTERS

What’s happening in the franchising sector, with an Australian perspective.

TACO BELL’S 100 STORE GOAL

MASTER FRANCHISEES SOUGHT Home-building and timber specialist, Thermawood is offering a number of master franchise opportunities.

The New Zealand-founded franchise offers customers an innovative and exclusive double-glazing and retro-fit window solution, improving a home’s existing timber joinery.

Launched in 2009, Thermawood established a solid foundation in New Zealand before making the leap across the pond in 2015.

Now with more than 50 franchised locations operating in Australia and New Zealand, the brand is gearing up to tackle a host of new territories, kicking off with a number of master franchise opportunities.

The Victorian master franchise has already been snapped up, with new operator Jacki Cook revealing the unique business model provided the perfect platform for success.

“When we were offered the master franchise for Victoria we jumped at the chance as we knew what a great opportunity it was to get into a unique business like Thermawood,” she said.

Fresh off the back of a new partnership signing with operator Restaurant Brands, US franchise giant Taco Bell has unveiled plans to open 100 restaurants across Australia and New Zealand in just five years.

The Taco Bell Australian expansion is set to kick off with new restaurants in Sydney and Melbourne, along with a number of additional sites in Brisbane. Fans can expect around 30 restaurant openings in the next 12 to 18 months.

While the latest expansion announcement marks a significant boom to the Australian operation, it’s been a long-time coming for the US franchise giant.

High-profile attempts at the Australian market in the 1980s and early 2000s were unsuccessful, but this time around the

response has been overwhelming.

Taco Bell Australia’s third incarnation came in 2017 when the brand, in conjunction with operator Collins Foods Limited, launched its inaugural restaurant in Annerley. The subdued and understated opening escaped media attention, which Taco Bell Asia Pacific managing director Ankush Tuli revealed was a deliberate strategy to test the waters.

“We really came at it this time with the intention of making sure we laid a really solid foundation,” Tuli said.

The Mexican-inspired Quick Service Restaurant (QSR) chain currently operates five outlets in Queensland.

• Read more about the Taco Bell story on page 30.

The expansion is set for all major cities across Australia, with master franchise opportunities on offer in Queensland, Western Australia and Tasmania.

successful year to date: a 6.5 per cent rise in like-for-like sales, following 70 weeks of sales growth in Australia.

OVERSEAS STRATEGIES

Mad Mex has kicked off its inaugural Asian expansion with a new outlet in Singapore. The site is the first to be opened in collaboration with Singaporean fast-food chain 4Fingers, after the brand acquired a 50 per cent stake in Mad Mex last year.

In addition to the latest site in Singapore’s bustling Marina Bay Financial District, the Mad Mex global expansion is also set to hit Malaysia in December.

The Malaysia growth would bring Mad Mex’s international territories to four, following successful expansion into New Zealand in 2013. The New Zealand enterprise currently operates 15 restaurants across the region with three more slated to open before the end of the year.

Mad Mex founder Clovis Young said the global development announcement had helped to generate the chain’s most

CorePlus is heading for Canada with the launch of its first north American site in Toronto in 2020.

Canadian investors have signed up as master franchisees.

CorePlus has been operating for three years and has a network of five studios across Melbourne, with eight new locations set to open around the city by mid-2020.

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Millions of ways to make a sandwich.

One ingredient remains the same: The Human Ingredient.

Krystal Butler is a dedicated Subway® franchise owner and is passionate about quality, fresh food.

“I’m a mum of two young kids, a small business owner and employ 13 people from our local community,” Krystal said.

“Every Subway® sandwich, salad, wrap and panini is made for you, using fresh produce, grown by Aussie farmers. It’s our job to deliver a delicious, fresh meal every time.”

Subway® is a vibrant family of 1350 small businesses, operated by franchise owners in communities across Australia.

If you’re hungry to join a brand that is not only passionate about its people, fresh food and building better communities – take a fresh look at Subway®.

GLOBAL EYE

The Coffee Club launches in Vietnam. This is the Australian chain’s 10th international market.

The Coffee Club Vietnam expansion follows successful launches in New Zealand, Thailand, The Maldives, Indonesia, Seychelles and most recently, the United Arab Emirates.

In October last year Minor Food, a subsidiary of The Coffee Club owner Minor International, signed up Vietnam Investment Group (VI Group) as its local partner.

At the time, the brand revealed plans to roll out 100 The Coffee Club outlets across the country over the next five years.

NEW TO MARKET

Two new franchisees in Victoria and Western Australia are kick-starting the Little Messy Learners business in Australia. The UK-based children’s play service is looking to sign a franchisee in each state by the end of 2020.

The business model offers weekly, one-hour pre-school/parent and baby unstructured play classes. Parents book a term of sessions and over the period children learn marks which form the basis of every

letter, number, shape and pattern.

Little Learners was founded in January 2015 and today numbers 34 franchisees across the UK.

DOMINO’S SOLAR POWER SURGE

All Domino’s stores across Australia will benefit from new solar power systems and energy controllers.

The Domino’s solar power strategy is aiming to reduce operational impact on the environment, while reducing energy costs, in partnership with Construction, Supply & Service.

Domino’s Australia and New Zealand chief executive Nick Knight said the business initially started the strategy with only one store – Domino’s Aspley, Queensland, in 2017 – which has seen a 34 per cent reduction in energy usage, and a 48 per cent saving in electricity costs.

According to Knight, Domino’s already has 70 stores with energy demand controllers installed, with an additional seven stores in the works. The controllers de-energise non-essential equipment during peak power usage.

McDonald’s

“These stores have seen energy reductions of up to 22 per cent and electricity savings of up to 27 per cent in the past 12 months alone,” Knight said.

FRANCHISE BITES

McDonald’s trials a plant-based burger in its Canadian business in a partnership with Beyond Meat.

Menu changes at Mexican fast food chain Guzman y Gomez see the removal of added preservatives, artififical flavours, added colours and unacceptable additives. .

GETTING IT WRONG ON WAGES An audit of Subway stores by the Fair Work Ombudsman revealed a systematic failure to pay correct wages, and that 18 out of 22 stores had failed to comply with workplace laws.

Sunglass Hut is to pay back more than $2.3m to over 600 employees in Australia following the franchisor’s admission of underpayments. There was no written agreement

FUNDRAISING FRANCHISES

Major Australian tyre retailer and franchise chain Bridgestone is driving a new fundraising initiative with long-term charity partner the Leukaemia Foundation.

The funds raised from a $2 donation for every Turanza Serenity Plus tyre sold at participating Bridgestone Select and Bridgestone Service Centres will go directly to the provision of transport services for people living with blood cancer, as well as research towards finding a cure and providing accommodation for those going through treatment.

The 24 hour gym chain Plus Fitness has raised $70,000 for Beyond Blue during its August campaign, Lift Yourself Up. More than 150 of its Australian-based franchisees participated in a campaign to highlight the benefits of exercise in addressing mental health issues. Each participating franchisee donated $10 for each new member who joined its gym in August with the funds raised going to Beyond Blue to support their work in improving the lives of those affected by anxiety, depression and suicide in Australia.

for part-time workers between 2010 and 2016.

United Petroleum faces legal action over an alleged wage-theft cover-up.

A $216,000 penalty for sham contracting and underpayment of a delivery driver has forced a Pizza Hut franchisee into liquidation.

A multi-unit franchisee with The Ironing Shop is facing legal action for alleged migrant

worker exploitation.

A Victorian The Coffee Club franchisee is under fire for alleged underpayment and falsified records.

Jamaica Blue and Muffin Break franchisor Foodco has back-paid 166 employees a total of $26,562.30 following the completion of a two-year compliance agreement with the Fair Work Ombudsman (FWO).

STAY ENGAGED!

Serial entrepreneur Andrew Morello from Yellow Brick Road reveals in an exclusive interview what drives him to keep achieving. In this interview which can be found online at www. franchisebusiness.com.au, Andrew Morello reveals what sparked his entreprenuerial spirit, why social enterprise is important, and the importance of collaboration in business. This is the first interview in a new alignment with InspireTalk TV. Look out for more exclusives.

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

NOV/JAN 2019-2020 | 14 | WWW.FRANCHISEBUSINESS.COM.AU

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INSIGHTS

NOV/JAN 2019-2020 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

RETAIL

REVISED Leasing is a major topic of conversation in the retail franchise space. So what’s happening with costs, demand and trends?

o

n the one hand technical developments are leading the retail world into experiential and innovative spaces. On the other hand the realities of higher competition, demand for online and continual cost concerns are chipping away at confidence and performance.

COMPETITIVE CONDITIONS There are continuing concerns about current retail conditions.

Even the Reserve Bank of Australia has weighed in to the discussion.

Inside Retail, a sibling publication to Inside Franchise Business, reported the RBA assistant governor Luci Ellis said that the once-typical alignment between rising inflation and rising prices is long gone as international brands retailing in Australia have raised competition and forced down prices.

“It wasn’t so long ago that Australia’s retail landscape looked very different, with few of the global retailers that populated the shopping centres of large cities overseas,” Ellis said. “That has changed over the past decade, especially in groceries and clothing retail.”

Australian Associated Press reported Ellis also pointed out the “profound” impact on pricing models for inflation, following the arrival of online retailers such as Amazon in Australia.

“After a long period where retail prices tended to rise at roughly the same rate as inflation generally, for the past decade or so, these prices have been flat to falling,” Ellis said in a speech in Geelong.

E-commerce has played a significant role in reshaping the Australian retail landscape. However, Aussies shop comparatively less online than other APAC regions, according to Rakuten’s second APAC state of e-commerce report.

According to Inside Retail, the report reveals only 36 per cent of total shopping is done online in Australia which compares to a 47 per cent average across other Asia-Pacific nations.

Australians are price driven when they buy, and reluctant to shell out for high shipping costs. Other concerns were returning items, payment security and concerns over fake websites.

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INSIGHTS

FUTURE RETAILING

THE RENTAL RETAIL IMBALANCE And then there are the retail leases.

Peter Buckingham, CEO at geologistics firm Spectrum Analysis, has pointed out the imbalance between retail growth rates and the rising cost of rent.

“In 2017 we undertook a study of shopping centres called Shopping Centres – an Inconvenient Truth, and showed that although rents were increasing at around CPI plus 2-3 per cent which equated to around 4-5 per cent, shopping centres were not growing at the same pace.”

The business has just revisited this report and found a deterioration in dollar performance against inflation, while rents are expected to increase at much higher rates.

“How do shopping centre owners still press for annual increases in rents of 4 per cent or 5 per cent when the increase in the dollar per square metre sold through the centres has been increasing (and often decreasing) in the range of -0.63 per cent to 0.25 per cent for super, major and regional shopping centres over the last two years?” he said.

“The growth of our shopping centres across Australia makes it very hard for shopping centre owners to justify large rental increases well above CPI, when the shopping centres are performing poorly measured by the industry standards.”

Over the last 18 months, the power imbalance between landlords and operators has been widely documented, culminating in the introduction of a voluntary code of conduct in New South Wales.

Understanding the direction retail is headed, may help prospective small business owners to circumnavigate the retail leasing concerns.

It’s an issue which affects retailers beyond the franchising community.

Martin Matthews, CEO of Brand Collective, which operates Superdry, Volley, Hush Puppies and Clarks said that many of the issues come at the time of negotiation.

“For me, the major issue is that there’s still no incentive for a landlord to come to meet the market on renewal for a retailer that’s trading well,” he said.

“Some centres where demand has dropped off significantly are being forced to meet the market. And some

centres are absolutely A-grade and in demand, and frankly they can justify their rent. But there are a few below that, where landlords see themselves as being in-demand, but they’re not. You can go to brand new shopping centres around Sydney and Melbourne and see hoarding up.”

However there may be change on the horizon. Landlords may have to relinquish their high-rent rates in order to keep tenants.

LANDLORDS, DECLINING RENTS AND COMPETITION In fact nearly half (47 per cent) of centre managers polled for the JLL Retail Centre Managers Insights in September expect a decline in rents over the next year.

Incentives of at least 15 per cent are now standard fare to attract new tenants.

Interestingly it is the small business owner who is driving tenant enquiries at shopping centres (57 per cent). The national retailers (including franchise brands) have slipped from 14 per cent in the last survey to 8 per cent in the current review.

The shopping centre profile continues to evolve. Traditional anchor tenants David Jones and Myer have announced rationalisation strategies over the past 12 months. Food and beverage outlets, entertainment, services and medical centres are shaping the new shopping centre line-up which aims to bring more customers back into the retail space.

The rise of the pop-up shop is having an impact on the leasing market as comeand-go retailers use the casual lease to test their concepts or create brand awareness in a new market.

JLL’s survey showed 73 per cent of managers have casual leasing opportunities in their centres.

Centre landlords are encouraging retailer engagement through fit-out contributions, refurbishments and marketing initiatives. So there is a positive outlook on retail growth observed by JLL. However the report also notes a higher prevalence of capped occupancy cost leasing deals. And that’s good news for franchisees. n

Convenience, sustainability and customer experience are set to drive the future of retail leasing, according to a report from property firm CBRE. Released in September CBRE’s 30 Predictions for 2030: The Future of Retail in Australia report took a deep dive into the evolving retail leasing market, outlining a series of trends set to significantly impact the market.

Kate Bailey, CBRE head of retail research said the report’s findings outlined the sector is undergoing a period of tremendous change.

AUTOMATION AND ECO-SUSTAINABILITY

“Australia’s retail landscape has transformed significantly over the past decade and that rate of change will continue in the next 10 years as retailers harness new technology and adapt to meet changing consumer demands,” she said.

“By 2030, consumers will prioritise environmentally sustainable products and retailers; the automation of appliances and growth of in-home assistants and technology will mean that buying many products will be a completely automated process; and time saving retail services will cater to specific customer needs.”

The report identified how emerging trends could have an impact on retail leasing.

Bailey pointed out the likely transition to fully-automated practices in some arenas will mean a laser focus on all-important customer experience.

“Augmented reality will enhance the physical buying experience and retailers will engage with customers through unique instore experiences,” Bailey said.

“Stores will sell less but invest large sums in experiences.

Customer loyalty will be key and big data analytics to track customer behaviours will also enable retailers to be more engaged with their customers through personalised services such as tailored sales and promotions and loyalty programs and rewards.”

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THE LIST

High energy bars Live the dream and exercise your future options with a fitness franchise.

I

f you’re ready to ditch the day job and help raise Australia’s fitness levels, speed up your perfect business search with this easy guide to 21 brands.

Fitness Clubs

Anytime Fitness

Crunch

If big numbers appeal to you, check out this chain: more than 4000 clubs globally and the biggest health club footprint (500+) in Australia.

Anytime Fitness marries state of the art equipment with a convenient and affordable membership.

The US-born 24/7 gym chain helped revolutionise the Aussie fitness industry when it launched here in 2008. Last year the business was named the Franchise Council of Australia 2018 International Franchisor of the Year.

The master franchise rights are held by multi-brand franchisor Collective Wellness Group.

Known for its low-cost gym sessions and membership, Crunch was founded in 1989 in New York and has been franchised for nine years. Today there are more than 300 fitness centres serving more than 1.3 million members across the US, Australia, Canada, and Spain.

In July 2019 asset firm TPG partnered with company management to buy the signature facilities and franchise operation.

Crunch Signature, the brand’s premier offering, provides members with expanded facilities, upgraded amenities, dedicated RIDE and yoga studios and full-service locker rooms.

Genesis Health & Fitness

Jetts

Plus Fitness 24/7

Genesis has grown in 22 years from a single club in Ringwood, Victoria, to one of Australia’s premier fitness organisations offering 24-hour access, seven days a week.

The national network of fitness clubs numbers 42 across Australia. Members can enjoy a wide variety of exercise options from weights to cardio, swimming or dance, boxing to cycling.

An Aussie original, founded in 2007, this chain now numbers 250 gyms across Australia, New Zealand, the UK, the Netherlands and Thailand.

Its flexible membership is based on no lock-in contracts.

Fitness professionals can be owner operators but there are semi-passive investment options as well, and the chance to build a multi-unit business.

Jetts’ leasing team works with franchisees on-site qualification, demographic analysis and lease negotiation. The gym chain will consider business partnerships for potential franchisees without full funding. Franchisees sign up to a five-year term, with two renewal options.

Starting out as a traditional health club back in 1996 the Australian-owned Plus Fitness moved into the 24/7 space in 2011 and began franchising. The business model benefits from low staffing requirements and, the franchisor claims, fast breakeven points.

Across Australia, New Zealand and Asia there are now 200 gyms open in the Plus Fitness chain.

It’s a low-cost model for clients and franchisees. Gym membership starts from as little as $13 for all-hours access while the cost of a franchise includes the gym equipment.

Snap Fitness 24/7

More than one million members across 19 countries stand testament to the spread of the US-based Snap Fitness brand over 15 years.

The fitness philosophy is based on four pillars: getting fit faster, getting fit at a time that suits, getting fit your way, and training together.

Typically gyms are housed in 300-500 sq m space, with parking. When it comes to location Snap reviews the local competition, size of population and target market, and measures business potential through analysing existing fitness activity and interest in fitness.

Women only Gyms

Curves

Opening in Texas in 1992 Curves introduced a female fitness environment. The chain pioneered the 30-minute full body workout which became a worldwide success in more than 70 countries, helping more than 10 million women lose weight and get fit.

It’s a simple business model and offers ongoing revenue opportunities through membership, products and services.

Curves provides all initial training, operating software and ongoing expert support.

EFM Health Clubs

This franchise bridges the gap between a traditional gym and a personal trainer (PT), offering affordable membership with a tailored experience. The business launched in 1991 as Executive Fitness Management and has built up to 60 clubs operating across five states in Australia.

It’s a unique model that utilises school and hospital facilities to operate health and fitness programs for staff and child-focused Fit2Play groups, with personal training sessions available to the wider public too.

Fernwood Women’s Health Clubs It’s a stalwart of the Australian fitness industry today but when Diana Williams launched Fernwood back in 1989 the idea of catering to a women-only market was quite new. Five years later she embraced franchising. Since then the brand has been awarded fitness, franchising, business and customer satisfaction accolades.

The gym model is based on comprehensive workout areas, personal training, group fitness, weight management programs, complimentary breakfasts and free toiletries .

Zadi Adela Balto, a former Fernwood franchisee, collaborated with Diana Williams to create a modern intrepretation of a fitness gym. With its nightclub feel and high-tech training tools that provide a bespoke fitness program, Zadi is just starting out on its fitness franchise trajectory.

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THE LIST

Functional group training F45

If it’s good enough for Mark Wahlberg, is it good enough for you? The Hollywood A-lister’s investment group in early 2019 took a minority stake in this high-profile fitness business that has an American persona but is in fact an Australian concept.

F45 is a 45-minute, station-based, functional and cardio training concept developed in 2013. The brand that kick-started the functional training trend now has more than 1500 studios across 40 countries, and was featured in Entrepreneur’s Fastest-Growing Franchises of 2019 list.

Fitstop

You’ll need a Cert III in fitness and some industry experience to invest in this business, which is now five years old with two years of franchising under its belt.

As it expands along the east coast of Australia, the brand offers support in negotiating sites, planning and design, and fitting out the gym. Fitness teams and new owners undertake a 10-week induction process.

Fitness programs incorporate high intensity training with slow and progressive strength training; the programs are supported by an online nutrition portal to give members the ability to maximise results.

Orangetheory Fitness

It’s a fast-growing fitness brand that prides itself on not one closure among the 1200 locations opened up around the world over the past nine years.

The fitness model is all about cardio burn; it harnesses scientific theories about postexercise oxygen consumption and combines this with heart-rate monitoring to keep members in the target zone.

For franchisees the brand promotes low overheads and fixed expenses with high margins.

Orangetheory Fitness originates in the US and is part of the Collective Wellness Group in Australia.

The Coaching Zone

The HIIT Factory

The Coaching Zone provides 45-minute group personal training sessions for the beginner through to the advanced. Each class incorporates the latest techniques and MyZone heart rate technology. Developed by Belgravia Health and Fitness, The Coaching Zone gets input from renowned fitness experts such as Commando Steve.

The network of more than 35 franchisees benefit from the knowledge and experience of the parent company as well as specialised programming and technology, accounting, corporate services and marketing, and take advantage of links with local council and aquatic centres managed under the Belgravia Leisure business.

High intensity interval training is common as a class in many gyms but the HIIT Factory has embraced the 30-minute sessions as a business purpose.

Another Australian-born business it now numbers seven studios in Melbourne and Western Australia. Enthusiastic trainers drive the family-friendly sessions (kids are encouraged to watch and be inspired).

Ideal franchisees are already experienced in the field, with a fitness Cert III or IV, their own venue and client base.

High tech 20PerFit

20PerFit uses electrical muscle stimulation (EMS) technology to deliver fullbody workouts which are speedy and effective alternatives to traditional 90-minute training sessions. EMS reportedly boosts strength and metabolism, can help with weight loss and with muscle rehabilitation.

Clients using the 20PerFit wireless system wear an elastane body suit which houses the muscle-stimulating electrodes. The system can be used by personal trainers, in fitness studios and health clubs.

Franchisees can train up to eight clients in a single 20-minute session.

The business concept launched in 2017 but is new to franchising.

Speedfit

Speedfit utilises wearable technology to deliver muscle contraction through EMS, a technology harnessed for fitness purposes in Europe more than 10 years ago.

Founder Matej Vaharlik arrived in Australia in 2013 and promptly launched Speedfit, unveiling a franchise model three years later. The brand network is now 13 studios across Australia.

Speedfit’s target market is the 70 per cent of non-gym users in Australia. The technology approach enables either a low-impact, gentler option that is ideal for gym-shy clients, the aged and those with injuries, or a hard-core impact for time-poor fitness afficionados.

Niche fitness 9Round

12RND

Peak Physique Hot Yoga

World champion kickboxer Shannon Hudson came up with the concept of combining functional training with boxing and kick-boxing techniques more than 10 years ago in the US. It’s part of the Lift Brands family, and now has more than 800 clubs around the world.

Twenty-one clubs operate in Australia and there are plans for rapid expansion throughout 2020.

This is a business that suits non-fitness enthusiasts looking to invest as well as hands-on operators who are encouraged to have a Cert IV in Fitness.

Boxing franchise 12RND has attracted AFL sports stars Taylor Adams and Levi Greenwood; the pair are planning to open their second franchise. Since launching in Australia 12RND has opened 80 clubs. Overseas the brand is know as UBX. Based on the principles of modern boxing training, workouts echo the physical challenges of a championship bout. Clients undergo 12 three-minute rounds with 30-second breakouts. There are no class times; a continuous loop of 45-minute sessions means gym-goers can jump in whenever they have time.

Yoga but not as you know it. This is not traditional yoga: classes feature set sequences which are pre-recorded and set to music, with rooms heated to 38° for hot yoga sessions, and Peak Physique yoga trained instructors on site to help supervise clients.

The business has grown out of its South Australian origins in 2011. Husband and wife founders Michael and Suzanna Calava have been franchising the concept since 2015.

Xtend Barre

Ballet-and-Pilates-inspired Xtend Barre is operated in Australia by Collective Wellness Group. The concept aims to sculpt, chisel and lengthen muscles and was created in the US by former dancer and Pilates instructor Andrea Rogers.

This boutiqe fitness experience doesn’t require any fancy footwork. It’s all about results-driven routines and the classes on offer include the classic barre, post-natal (with baby), stretch, and some with additional tools to enhance the workout utilising fitballs, sticks and TRX. More than 44 studios operate across the US, Canada, UK, New Zealand and Australia.

NOV/JAN 2019-2020 | 22 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

SCHNITZ AND PIECES With more than 70 outlets across the country and a new CEO at the helm, Aussie icon Schnitz is banking on a big 2020.

By Nick Hall

“S

chnitz is first and foremost a family business and these values underpin everything we do. Our franchisee network is like a family and their passion for the business is unrivalled.”

It’s this ethos that has helped Brenton Howie, Schnitz’s new CEO, make in-roads at the family-run fast-food franchise.

When the executive took on the role in July, Schnitz was in a transition period.

The brand had amassed a strong network of successful franchisees but, much like its industry counterparts, a competitive quick service restaurant (QSR) landscape had slowed growth.

Howie’s arrival, however, signalled the brand was prepared to make changes and face the future head-on, and it wasn’t just menu updates on the agenda.

For years, Schnitz had been owned and operated by founder Roman Dyduk and his sons Tom and Andrew. The Dyduks had built the business from the ground up, and when they invited Howie into the mix they were adamant the firm focus on family had to remain.

It’s been a perfect fit for Brenton, who less than six months into the job is already making his mark on the iconic Aussie franchise.

“I’m really enjoying the change,” he beams. “A highlight thus far has definitely

Roman Dyduk and his sons Tom and Andrew

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Brenton Howie

been the people I’ve met. It’s evident that the Dyduks’ passion for the business emanates across the entire team.”

Brenton admits that while it took him some time to get his bearings on the schnitzel game, the wheels had already started turning on what would be an enormous growth period.

“I am motivated by making a difference and by a good challenge, and I’ve experienced both of these things in my first couple of months.”

In his first interview since taking on the role, Inside Franchise Business sat down with Brenton to talk family, franchising and the future of Schnitz.

Q: Hi Brenton, tell me a little about what Schnitz has been doing lately.

BH: Schnitz is in an exciting phase of change and so it has been a great time to come on board.

A core focus for us has been looking at who we are and what we represent to our guests. We have identified the need to prioritise the needs of our guests and many of our activities will be tailored to improving the guest experience.

How we interact with our guests is really important, so listening to what they want and using these insights to guide business decisions will be key to our success.

At a menu level, we continue to explore customisation to enhance the guest experience – from how people want their schnitzel, whether that is a wrap or as a parma, what they want to add to it, or the crumbs it is cooked in. We are also about providing plenty of options for our guests, whether that’s a vegan schnitzel or a gluten-free wrap.

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LEADERSHIP

My mission is getting Schnitz into the mouths of more people

Q: What was it about the Schnitz brand that appealed to you?

BH: For me, the appeal of Schnitz is the quality of our product and the strength of our brand. The dedication and strong passion the team has for creating quality schnitzels with traditional cooking methods set us apart.

The fact that Schnitz prides itself on working with franchise partners who believe in the brand, and the quality of food, is in keeping with the Dyduks’ family-oriented approach to business and that was really important for me coming on board. It also helps that I love schnitzel!

Q: Coming from a fast moving consumer goods and food services background, have you found much crossover to the franchised food sector?

BH: I am really enjoying the change. In my previous roles the business engaged with the retailer and then the retailer engaged with the end consumer.

It’s refreshing to be part of a business that directly engages with the consumer and it’s not just about the product we sell but also about how we serve the guest.

Q: What has surprised you the most about Schnitz and indeed, franchising as a whole?

BH: The franchising industry is in an interesting space now as a result of the Senate inquiry and media coverage around the behaviours of franchisors.

At Schnitz, we are big believers in transparent and supportive franchisee relationships. We are dedicated to internally

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1909_FCH

LEADERSHIP

upskilling and training staff within the network and ensuring we meet all of our obligations as a franchisor.

Schnitz is first and foremost a family business and these values underpin everything we do.

Q: The QSR market in Australia is particularly competitive; how does Schnitz plan on growing its footprint?

BH: The quick service restaurant (QSR) and fast-casual dining space is a competitive one and the landscape is changing at pace.

For Schnitz, we see two ways to grow. Organically, through new store openings, or through driving top-line sales and repeat purchases at existing stores.

Our challenge is to find the most sustainable way of growth via those two channels and finding our way to becoming a truly national brand.

We can’t lose sight of the trend towards plant-based consumption or the changes in our guests taste profiles, as the Australian demographic profile continually evolves. We need to be ever aware of what our guests are eating, where and how the ingredients have been sourced and how the food is prepared.

Lastly, delivery has been a disruptor to the industry, and we need to embrace guests using that channel.

Therefore, we must understand the drivers and psychology behind it, maximising the return on that channel.

Q: What advice do you have for new franchisees looking to enter the space?

BH: It’s so important to have a passion for the brand you are representing. We all want to be passionate about the work we do, and this passion is even more important from a franchisee perspective. Product quality and delivering a food experience like no other are huge drivers among the consumer market. Get those things right and you can’t really go too wrong.

Q: What does Schnitz look for in franchisees?

BH: For us, the core thing we look for is a values fit and then a passion for the hospitality industry, demonstrated through previous experience. A level of business acumen and an understanding of the commercial aspects are important, as is a strong work ethic.

Q: What are your goals for the next 12 to 18 months?

BH: There are a number of goals we’re working on. We want to continue to improve engagement across all aspects of the network from guest experience to franchisees and all the way through to support office. We’ll also see a number of new store openings, with strong growth in Victoria over the next six to 12 months and strategic interstate growth in key locations.

Q: What does the future look like for Schnitz?

BH: I want our products to be available to more and more people! We have a great offering and I still think there is a huge portion of the Australian population that don’t know what we offer and how great it is. My mission is getting Schnitz into the mouths of more people. n

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We are also happy to accept applications from people with franchise and/or business experience who are interested in the benefits of owning 100% of the business.

LEADERSHIP

FOR WHOM THE BELL TOLLS With its booming Brisbane restaurants leading the Aussie expansion, US giant Taco Bell is proving third time really is the charm.

By Nick Hall

I

t’s been a stop-start introduction for the global franchise icon here in Australia.

Highly documented entries in the 1980s and the early 2000s were met with little interest from locals, but here in 2019, things are changing.

an understated opening that largely escaped the public’s attention. It was a deliberate strategy to test the waters, Tuli says, and now, two years and five restaurants later, the brand is entering a national roll-out phase.

“Well I think firstly, the category has evolved significantly,” Taco Bell Asia Pacific managing director Ankush Tuli says.

“The consumer is far more ready now; more ready to experiment and hungry to try new cuisines and formats.”

Tuli isn’t alone in his thinking. Over the past five years, interest in ethnic fast-food chains has risen steadily, with consumers more open to the idea of unfamiliar flavours than ever before.

According to a study from global research company NPD, ethnic restaurants account for almost $6 billion of consumer spending within the $44 billion Australian foodservice industry, an increase of nearly $700 million since 2009.

That isn’t to say that Tuli and Taco Bell haven’t refined their offering, however.

The APAC managing director reveals that this time around, the brand is implementing a considered approach to the often-fickle Australian consumer.

“We really came at it this time with the intention of making sure we laid a really solid foundation. That has led to some exciting growth, we’ve found the perfect partners in Brisbane and that success has given us the confidence to expand into other areas.”

The chain launched its third Aussie incarnation in Queensland in 2017, with

“Taco Bell’s unique offering of Mexicaninspired food has really resonated with the Australian public,” Tuli explains.

“Our unique positioning as a culture-centric, lifestyle brand, where we showcase the social experience of food is sinking in. Australians are really loving it this time around.”

Since August, Taco Bell has been slowly leaking information through its social media channels, teasing Aussie fans with a taste of things to come.

“Our fans have been appealing for us to get down to Melbourne and Sydney since we arrived in Australia, so we’re delighted to now be able to answer those requests,” Tuli beams.

“We have stated before that Australia is a key focus area for us, and I really believe that the region will be one of the largest and fastest-growing markets for Taco Bell internationally. The numbers are out there, our target is to reach 100 restaurants in Australia and New Zealand over the next five years, and we have the momentum to do it.”

It’s an ambitious goal, but one that Tuli believes the APAC team of office staff and partners are more than capable of delivering.

“In conjunction with our highly capable partners, fans will continue to enjoy the

AUSTRALIAN EXPANSION

experience that they have come to expect from Taco Bell, as well as some majorly disruptive category-leading innovations.

We are very excited about this next stage, but more, we are very well positioned to make it happen.”

When Taco Bell launched in Brisbane in 2017, the US franchisor partnered with local operator Collins Foods Limited, a company famous for its work with fellow casual dining chains Sizzler and KFC. As the expansion plans have developed, the brand has also enlisted the help of New Zealand-based operator Restaurant Brands, which Tuli says has been instrumental to the new Victorian and New South Wales growth.

“Our success has come off the back of the great partners that we have in Collins Foods and Restaurant Brands, so the timing couldn’t be better to kick off the next stage,” he says.

Unlike the initial Brisbane roll-out, however, that next stage is far from slow and steady. Tuli reveals that he plans on opening 30 new restaurants across Australia and New Zealand over the next

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12 to 18 months, and he has history on his side.

INTERNATIONAL GROWTH The APAC managing director has been instrumental in the expansion of Taco Bell across a number of other regions.

“Within the Asia Pacific, the underlying demographics provide massive potential for Taco Bell to expand,” he says.

Tuli reveals that the chain now has 40 restaurants in India, with that number likely to reach 60 before the end of 2019.

In fact, India has now grown to become Taco Bell’s fast-growing market outside of the US, with a new restaurant opening every 10 days.

Couple that with a successful entry into Thailand and a planned expansion through Indonesia, and it seems like the entire region is set for a franchise fiesta.

In fact, outside the US, the APAC region is the biggest opportunity for the booming fast-food chain.

“Earlier this year, we achieved a

significant milestone, opening our 500th restaurant outside the US, and we are well on our way to reaching 1000 in the next few years,” Tuli reveals.

International growth has not come without its challenges, however. Taco Bell’s previous attempts at Australia are a testament to that, but a renewed focus on brand offering has helped to streamline new market growth.

“We’ve been far more intentional in making sure our proposition is right; that we can provide an offering that is not just internationally consistent, but locally relevant,” Tuli says.

“In all stores across the world, you’ll see the four major offerings are the same, with iconic products like the crunch-wrap, but equally, we tweak them in line with our consumer research.”

In India, a market with a strong vegetarian customer base, Taco Bell introduced a taco that is made entirely out of hash brown.

Revamping the model to suit the individual needs of a domestic market isn’t easy, particularly for a chain as large as

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Taco Bell, but Tuli says understanding the world in which you operate is critical.

“When you enter a restaurant in Brisbane, you really see that culture and lifestyle experience come to life. We have local artists come and express themselves, and as a result, consumers are far more open and engaged.”

“The lessons have been similar across markets. The timing is right, consumers have evolved, not just in Australia but across the world.”

Despite the enormous success of Taco Bell on the international market however, Tuli says the biggest opportunity lies Down Under.

“Above all, the thing I’m most excited by is the response we have received in Australia. Our restaurants in Brisbane are among the highest performing in the world, so there’s a lot of excitement around our growth. It’s a really exciting time for Taco Bell.” n

LEADERSHIP

CHIPPING IN

KFC may be famous for its Southern fried chicken, but behind the scenes the iconic franchise is handing out support by the bucketload.

By Nick Hall

W

hen KFC South Pacific managing director Nikki Lawson took the reins of the iconic franchise in 2016, she had more than just a mission for fingerlickin’ chicken.

The new leader was inspired to push the chain’s commitment to social enterprise and increase the level of community support KFC provided.

“We gathered a group of franchisees, corporate and field team members to see if, by coming together, we could make an even bigger difference supporting one cause that was close to all our hearts. It was unanimously decided that it needed to be backing Aussie youth,” she explains.

While addressing mental health in the workplace is fairly common practice

nowadays, much of the research relates to older employees in office settings. When it came to tackling youth confidence in the fast-food sector, however, Lawson wanted KFC to lead the charge.

“We have seen first-hand from our own people that when confident, young Aussies have the potential to achieve great things – we firmly believe confidence helps youth to thrive.”

“Everyone has a role to play in society and even the smallest contributions can make a big difference,” she says.

“As a successful Australian brand with over 650 restaurants in Australia, this provides a great platform for us to give back to communities.”

Across those restaurants, KFC employs a predominantly youth staff-base, which is why Lawson describes the decision to

address youth confidence as critical.

“With 90 per cent of our team under the age of 25, it was a no-brainer for us to go beyond our restaurants to support young Aussies.

“We see ourselves primarily as a people business. While we’re known for our delicious chicken, we have a people-first culture and pride ourselves on this as it fosters happy, confident young people.”

So, with a youth team as strong as KFC’s, how did Lawson plan on approaching the social issue?

KFC YOUTH FOUNDATION Joined by a team of engaged franchisees and head office staff, Lawson set to work on creating the KFC Youth Foundation

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in 2018, a dedicated support system for young people.

But it wasn’t just KFC championing the cause.

Charities ReachOut, Whitelion, StreetWork, Youngcare and Reach all joined the initiative as partners, helping to bolster support and provide assistance where needed.

“At-risk young people feel lonely and disconnected from their community because they are seen as ‘different’ and it may feel easier to stay inside or seem impossible they would get the same opportunities as others,” Adam Gibson, NSW regional manager of youth advocacy charity Whitelion, says.

“Helping these young people to believe in themselves is the first confidence barrier.”

Together, KFC and the charity partners worked alongside YouGov to undertake an enormous research process, culminating in the release of the Youth Confidence Report. Now in its second year, the report takes a deep dive into the attitudes, feelings, opinions and challenges that Australia’s most at-risk generation faces.

“Through this research we uncovered some alarming results, including that 40 per cent of youth experience a lack of confidence every day or most days and that eight out of 10 have experienced a mental health issue,” Lawson says.

“These are serious issues that need to be fixed, and though our KFC Youth Foundation we hope to help tackle the confidence deficit Aussie youth are facing.”

It’s a challenge that only seems to be growing. This year’s findings paint a

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worrying outlook, with an astonishing 81 per cent of young Australians not very confident that school and/or tertiary education will prepare them to land a job.

In fact, 57 per cent of young Australians don’t think they’ll ever be able to move out of home and stand on their own feet.

While a nationwide confidence epidemic may be a challenge too burdensome for KFC to tackle alone, Lawson believes the partnerships developed may make the inroads needed.

“While we can provide supportive environments for young people to work, we are not specifically trained to tackle these issues alone,” she says.

“That’s why we’re proud to work with charity partners who understand the issues faced by young Aussies and support them through their work in mentorship,

LEADERSHIP

skills development, supporting mental wellbeing and providing an even playing field for all young Aussies.”

CHIP IN FOR YOUTH The initiative is now snowballing, gathering traction from all sides. Franchisees, community partners and customers have banded together to help address concerns, prompting KFC to bolster its campaign strategy.

Launching the inaugural “Chip In For Youth” week initiative, the chain donated $1 from every limited-edition bucket of chips to the KFC Youth Foundation.

“It’s provided an opportunity for every individual to get involved and make a difference, which is why the results are so great – it’s their KFC Youth Foundation,” Lawson says.

“Our people have told us that to them, KFC is first a training school, second a family and third, a place to be where they feel truly supported and able to be themselves.”

The varying strategies have paid off so far. Lawson reveals that since the Youth Foundation launched in 2018, more than $1.4 million has been raised, much of which has come from the network’s franchisees themselves.

“This passion for supporting the KFC Youth Foundation runs through our restaurants all the way to our Restaurant Support Centre. From bottle-recycling schemes and raffles to gala events, everyone is doing something to contribute.

“Our franchisees in South Australia are also involved in an annual Youth Foundation charity ball and KFC Griffith and the Mitropoulos family are even running a fundraising event with local businesses and the mayor to show their support!”

Lawson’s take on social commitment is a refreshing one. The KFC managing director believes that it is her duty as an employer to not only back her staff at work, but throughout the course of their life.

“We love to see our people succeed and develop when working with us, but we get equally excited when we see them achieve in their careers and personal goals, beyond KFC,” she says.

“We know that by putting our people first, profit will follow. That’s why we provide our people with personal development and training opportunities to help them to be their best self, make a difference and of course have fun.”

That isn’t to say the colonel isn’t backing a number of innovative new network additions as well.

Nikki Lawson

NEW DEVELOPMENTS In July, the iconic franchise unveiled plans to turn the quick service restaurant sector on its head.

A world-first, five-lane drive-through-only concept store was revealed to the public, with KFC investing around $1.5 million into the network update.

Lawson said the chain was inspired to launch the new model after watching online growth explode. Over the past five years, the fast-food giant has reported a 100 per cent increase in online ordering through its app, year on year.

“Drive-through-only is the latest example of KFC’s commitment to innovation and to giving Aussies the most delicious and fresh chicken possible,” she says.

“It further shows our dedication to continually building on our customer offering and that we’re always providing delicious and fresh meals in the most convenient way to meet their busy lifestyles.”

Additionally, the chain also launched a

cheeky marketing campaign that will see them offer six soon-to-be-wedded couples an all-inclusive package.

Dubbed KFC Weddings, the initiative comes in response to the wealth of couples who pop the question instore or cater their big day with a bucket of the colonel’s finest.

The winning couples receive a KFC-themed wedding celebrant, photo booth and entertainment, with catering supplied, via a food truck, in custom KFC buckets.

But for all the new additions, innovations and implementations, the thing Lawson is most proud of is KFC’s commitment to youth culture.

“The youth of today are the future of tomorrow and we’re committed to creating an environment that empowers and supports young people not just in our restaurants, but beyond the walls of KFC,” she says.

“It’s important to give young Aussies the skills and support they need to thrive, not just survive.” n

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

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Our business development and support teams will assist you in building your successful business. We have three exciting franchise models where we are looking for new, motivated and business orientated franchisees for: • Clark Rubber Large Format Retail Stores High Investment • Clark Rubber Pool & Spa Shops Moderate Investment • Clark Pools & Spas Onsite Care Territory Vans Low Investment

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

Our franchisees benefit from: • Unique retail business model • 4 week training program Clark Pools & Spas Onsite Care Territory Vans Low Investment

• Group buying power • Effective national and local marketing strategies • Business development support & advice • Site selection and lease negotiation assistance • Ample growth opportunities • Multi store owner development program

If you are interested, then the first step is to enquire with us directly.

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LEADERSHIP

Shawn Kerr

PLUGGED IN TO GROWTH Shawn Kerr was one of McDonald’s youngest franchisees and then brought US brands Carl’s Jr. and Cinnabon to Australia. Now he is firing up an Australian national retailer.

By Sarah Stowe

K

err stepped into his new role as general manager at Battery World in March 2019 and is focused on driving better business results across the group.

“Change management is a focus area for me, as change is the one constant in life,” he says. “Managing complex change is inevitable, and it’s something we all need to understand better. I refer to this repeatedly with my leadership team when working on strategic planning and projects within the business. Change requires process and this process is a formula combining vision and skill with incentives, resources and action plans.

“A lack of vision results in misunderstanding, lacking necessary skills leads to apprehension, providing incentives reduces resistance, lacking the right resources deployment provides frustration, while not having the right action plan delivers false starts.”

Kerr’s vision for Battery World is clear: provide a structured process towards stability and growth, one which grows sales and profitability for both the franchisee and Battery World Australia.

“I want the network to focus on what has worked over the last 21 years,” he says. “The core of our business is our knowledge, service and products. I am always interested in growth, but we must not forget what has brought us to this point.

“I often see franchises trying to reinvent themselves but forget about what started their journey.”

It’s important to stay focused in the face of inevitable change. A spotlight on the basics of operations and customer service will deliver growth, he suggests.

“Do all the 1 per cent well, and the rest will take care of itself over time.”

Kerr credits McDonald’s as a significant influence on the operational disciplines he employs today. After McDonald’s he moved to Coca-Cola Amatil, working as international product development manager.

More recently Kerr worked in leadership start-up roles.

He spent two years as chief operations officer at Zambrero

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LEADERSHIP

before joining the Bansal Group as general manager. He delivered rapid unit growth for the group’s US burger brand Carl’s Jr. then secured the Australian master franchise rights for Cinnabon.

“It’s the gathering of experience: that really provides that business ‘ah ha’ moment that there is no shortcut to success but discipline and adhering to good processes are the sure path,” he says. “I aim to bring all that experience to Battery World with a commitment to collaborating with franchisees, growing the network, and safeguarding and reinforcing Battery World’s unique selling proposition.

“We have a strong balance sheet and record low interest rates. We have an unbelievable talent pool of existing and prospective franchisees. Add to all of this the affordability of a Battery World franchise, our relative retail resilience thanks to changing technology and our continued need to be powered up and plugged in: there is so much room for growth.”

Kerr has spent the last few months meeting Battery World franchisees to ensure their initial communications were face-to-face.

“I talk to franchisees daily,” he reveals.

“They are focusing on our strengths of local community engagement, customer service, product knowledge and roadside support. I never want to underestimate the knowledge within the network.

“I work hard to be in stores frequently, listening to the ideas of both the business owners and their staff and to hear what is happening. That next great idea is just around the corner, and I want to be able to brainstorm these and see where they go.

“I also want to deliver on a disciplined operational approach towards results which focuses on providing the framework of process and procedure to deliver growth. Store numbers will continue to provide system sales growth.”

Growth isn’t just about stores, though.

A new and exciting mobile option, a man/ woman in a van concept, is an ideal introductory step for new franchisees in smaller regional communities.

And growth comes from within the teams, too.

“We have mentoring programs within the network for franchisees and systems for encouraging long-term employment: upskilling staff with certificates from TAFEs along with identifying those who might become the next franchisee with our

Franchisee Steve Minter with employee Tom Steer

‘rising stars’ program,” says Kerr.

While the business is focusing on powering up franchisees it is not neglecting their employees. A new initiative with TAFE in Queensland, NSW and Victoria offers staff the chance to undertake a Certificate II in auto electric technology.

TAFE designed the course around Battery World staff, who complete practical assessments daily in the 112 stores across the country.

The initiative started when franchisees enrolled their staff in courses because they could see benefits in upskilling staff.

Battery World quickly picked up the baton, negotiating with TAFE educators to work out how to roll this out in stores across the country.

Queensland franchisee Steve Minter owns four stores. He was the first to pay for and enrol one of his staffers in a traditional TAFE auto electrician certificate course. He knew he needed to upskill to best service his 24-hour battery roadside

assist business.

“I am not an auto sparky, I have never done a course like that so I thought it would be a great opportunity for one of our young staffers,” Minter says. “When one person learns, it teaches you a few things and it gets passed onto everyone. In business the more people know, the easier it is. Keeping that information to yourself doesn’t help grow your business.”

Franchisees benefit from keeping team members and upskilling, special training and educational opportunities are crucial to staff retention.

“All of a sudden I have these young guys talking confidently to customers about alternators, dual battery systems, the technology of batteries and solar set-ups,” Minter says. “Where once they might have had to defer to senior staff now they live and breathe the technology, giving our customers a value-add they will not get anywhere else.” n

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LEADERSHIP

WHERE THE HEART IS After nearly 12 years as a registered nurse, Home Caring franchisee Claire Zhang is now forging her own path.

By Nick Hall

W

hile the Sydney local only joined the ranks in March, Claire has become one of the brand’s most successful franchisees, but it wasn’t necessarily a quick rise to riches.

Starting out first at an aged care ward in Adelaide after graduating university, the budding businesswoman made the bold move to relocate to Sydney in 2009. Here, Claire took up work as a casual registered nurse before finding her niche in the imaging nursing sector.

But for all her success in the nursing world, a growing desire to build her own

business was brewing.

“I was always interested in business and wanted to be a business owner. However, I never thought my nursing career would help with owning a business,” she says.

After eight years in imaging nursing, however, curiosity finally reared its opportunistic head.

“The first time I found out about Home Caring was from their online franchisee business advertisement,” she says. “I was exploring business opportunities online, but I wasn’t familiar with any company names that provided home care services.

Luckily I didn’t have to spend too much time searching.”

THE APPEAL Claire reveals that the advertisement opened up a new world of possibilities for her. Where the option of entrepreneurship had once seemed like a distant pipe dream, the ever-growing ancillary healthcare sector provided the means to make it a reality.

Currently in Australia, the demand for aged care and home care providers far outweighs the number of registered offerings. In fact, in a recent study, government body the Australian Institute of Health and Welfare (AIHW) revealed that the amount of people accessing

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LEADERSHIP

It was somewhat daunting at the beginning because I didn’t know when my first client would come

Claire Zhang

home care services had risen 84 per cent from 2007 to 2017.

Claire admits that if she wasn’t already sold on the sector due to its growth potential, the Home Caring model may have been the push that tipped her over the edge.

“I was comparing Home Caring’s advertisement with other companies that offered similar business opportunities and I found that Home Caring had a far more reasonable and detailed plan, in terms of offering a 50/50 joint venture.”

Under the business model, Home Caring franchisees only need to provide half of the total investment, with the franchisor providing an equal share. From there, franchisees earn an ongoing 50 per cent of profits.

While the Home Caring model was a perfect fit for Claire, she isn’t the only entrepreneur to be reeled in by the innovative franchise structure.

“I believe the business model is the big appeal to people,” Home Caring consultant Bill Lockett says.

“In a number of cases, we were looking at health professionals and registered nurses working within the health system who perhaps wouldn’t have been able to save the capital needed to purchase a franchise.”

In addition to the significantly reduced entry level, Home Caring also provides an attractive salary package of $80,000 per annum right off the bat, which Lockett says is critical for health professionals like Claire.

“Because a lot of franchisees starting a business will worry about how they are going to pay their bills, we also organised for partners to receive a salary from their new entity. It meant that they could focus on getting out there and looking for new clients without worrying about paying the rent or childcare or so on.”

Despite her eagerness to jump onboard, Claire admits she was still apprehensive about her business

acumen. Come day one, however, the inspired entrepreneur would surprise even herself.

BUILDING A BUSINESS “After I started running Home Caring Campbelltown I realised my past experience had actually helped me a lot, not only my clinical knowledge and skill but also in leadership and management.”

The new franchisee’s past work as a nurse unit manager had given her the tools to be an effective communicator and knowledgeable business owner. However, despite her surprising aptitude for the role, Claire reveals that when it came to the legal and accounting side, consultation was key.

“Bill advised me to seek business and accounting advice before signing up to the agreement. It was helpful as I didn’t have experience running a business prior to the Home Caring franchise.”

The New South Wales franchisee then underwent a comprehensive training program, where she had access to industrial legislation and standards, was allocated to case managers by Home Caring and met with clients to observe the intake process.

It was an immersive program that thrust her into the deep end, but Claire admits she never once felt like she had made a mistake.

“It was somewhat daunting at the beginning because I didn’t know when my first client would come,” she says.

“After working hard in local area marketing for the first couple of months, I was then able to build up warm relationships with industrial connections by providing quality services to all of my clients.”

RELATIONSHIPS

While it hasn’t been a big focus to cater to a predominantly Chinese community, Claire says her ability to break down a significant language barrier has come in handy.

“My franchise territory is in Campbelltown LGAs, which is not a developed Chinese community compared to some other suburbs of Sydney. But I was contacted by an NDIS local area coordinator who was looking for a Chinese-speaking support coordinator to help a local participant who was unable to communicate.

“Speaking Chinese has not yet drawn me many clients from the same cultural group, but those that I am servicing are definitely thankful to be able to connect with an industry professional from the same cultural background.”

It’s all part of the service for Claire, who has even been able to cross cultural barriers through her supreme level of service.

The Campbelltown franchisee has helped an Assyrian client to engage with a carer who speaks their native tongue, which she says is an invaluable asset.

While Claire’s past experience has made the transition from registered nurse to business owner all the more seamless, she knows it won’t always be an easy ride.

Passion, pride and preparation hold the key, she reveals.

“Running a business like Home Caring is a long-term investment; my advice would be firstly finding out whether home care is what you love doing.

“Meet with case managers and existing franchise owners to get an in-depth understanding of the day-to-day business operation.

“My journey so far has been an enjoyable one, I’m looking forward to exploring more opportunities.” n

Building up those relationships has proven to be the difference for most Home Caring franchisees, with a number being able to leverage culture to generate business.

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franchisees in running a sales and business management

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Winners, QLD Franchise of the Year Award 2019 Jason, Wendy & David InXpress Narangba

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For more information on joining the InXpress Franchising Team, call David on 0412 692 052 or email us at sales.au@inxpress.com

www.inxpress.com.au

LEADERSHIP

SUPERCHARGED! Stellar performance requires vision, talent and commitment.

These franchisees have a healthy dose of all three.

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THE SERIAL ENTREPRENEUR SRI VINAYAGASUNDARAM AT RED ROOSTER, WA

S

ri Vinayagasundaram is no stranger to owning and operating his own business.

Today he is a high-performing Red Rooster franchisee, but this is far from the whole story.

From a pharmaceuticals sales job in Sri Lanka, Sri moved to Australia, took a job as a kitchen hand and studied business and computer networking. His next career was as an Aussie Home Loans mortgage broker and a business banking manager at Westpac.

“I moved to Perth in 1998 as a university student. It was really difficult leaving my family in Sri Lanka as I knew no one here – I had no friends, no family and nobody to support me during the hard times. However, it made me a strong believer in myself,” he reveals.

That’s evident in his entrepreneurial streak. At the same time as the banking career was in full flight, Sri and his wife owned a Muffin Break franchise. He left his banking role and took over from his wife at Muffin Break after 13 years, at the same time running an independent cafe.

“I enjoyed my previous roles in finance, managing high-net-value clients.

The experience and training I received has been beneficial for me managing financial matters in my business.

However, I wanted to work in a job that was more hands-on.” In time though he was looking to further develop his business, and five years ago he decided on a fresh direction: a Red Rooster franchise. “I haven’t looked back since,” he says.

Red Rooster was a bigger investment and a longer-term proposition. He chose the iconic chicken brand because it has 10-year options and a strong management structure which encourages multi-store ownership.

Today Sri owns three stores (he recently sold his fourth). “I was looking for ROI. I wanted to consolidate and pay out some debts – it was a personal finance decision.”

He reports the profitability of the units has risen; since taking over the stores he has added double-digit growth.

He measures store success by sales growth and the team’s development – how many of his 76 staff progress to management.

“My focus is to support the plan CEO Nick Keenan has envisioned for the brand through my business, so we can work towards the same goals. I also want to ensure I keep mentoring my managers and other crew, so they can improve their skillset. I’m very much a forwardthinker as I believe everything else will fall into place eventually if you have a plan. And that’s also why I also like people to always be accountable.”

The franchise structure that allows for multi-site operation means he can grow the business but at the speed he wants, when the team is at the right level.

“Success is about developing the team, upskilling managers, working with them to run the store. The team is very crucial to any business. If you don’t have the right attitude and culture it becomes difficult. I changed the culture.”

Sri has just employed one of his managers as the new general manager for all stores. So now he can see the retirement plan on the horizon. In four or five years, he aims to semi-retire and take time with his family.

“At that time, I know how I can help and influence my kids future. Whatever they want to do, if I don’t have the time for them, I’m not available to help.

“It’s all about time. My success is not money if I can’t save time or give it to others. The reward is money but if you chase money and become greedy you can lose track of it.”

Money is not an investment – what you invest is time, he points out. “If you can be ahead of time, automatically the reward will be there. We’re putting our family and future on the line.”

So what will take him to that fouryear goal? Sri will be back buying businesses – he wants to own and operate five stores as a good base for the next structure.

“I have a plan of where I want to be – everyone has a different reason for getting into business. If you don’t know why, it’s a problem.” n

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“

It’s all about time. My success is not money if I can’t save time or give it to others.

The reward is money but if you chase money and become greedy you can lose track of it.

LEADERSHIP

Bindya Patel and Preeti Sono

THE NEW AUSTRALIANS PREETI SONI AND BINDYA PATEL, THE COFFEE CLUB

W

hen it comes to challenges, setting up a business in a new country and making a success takes some beating.

For South African friends Preeti Soni and Bindya Patel this became a reality when they moved here separately, two years apart, and found themselves charged up to take on a new challenge.

The friends had relocated with their teenage children, leaving their husbands behind to look after the two family businesses.

Preeti had arrived first and worked as a doctor’s receptionist but wanted to do more.

By the time Bindya joined her in Perth, the pair were primed to prove themselves as more than stay-at-home mums or employees.

Once they had made the decision to go into business together they started looking at opportunities.

Bindya says, “But we didn’t know how to work in Australia, so we did a lot of research, and realised a safer option was going into franchising.”

So which franchise? Retail, hospitality or their previous career, hardware, were all options.

“At that time, the food industry was the best to go into. We looked around, reviewed businesses and what the market was saying about the brands.”

Preeti says, “If you look at the popularity of coffee spots in Perth, The Coffee Club was very popular, a very sound brand, and all the reviews and homework we did on the brand were positive.”

Within five months the pair were

installed in their new business at Belmont Forum, and for two years they built up a good trade.

But then something they had overlooked in their due diligence turned into a massive problem. They were expecting to have to pay to refurbish their store at the two-year point; they were not expecting the shopping centre to close down for a total refit.

It was a hard lesson to learn. “We were happy with the lease agreement,” says Bindya. “Make sure you read through the documents – we had no idea we would be shut down,” she advises new franchisees.

Preeti went back to work as a receptionist, some of the customers and staff moved on.

“We lost 18 months of trading – it was really challenging.”

So when the doors reopened on their shining new cafe, it was just like starting a business from scratch.

This proved to have two upsides: the franchisor committed a team of support to help them set up and operate for the first two weeks; and Preeti and Bindya feel more passionate about the business because they see it as truly their project.

Bindya says, “The initial store was already set up, so we didn’t change too many things. This is entirely ours; it’s set up exactly how we want to run it, with lots of new team members. It’s up to us how we mould them to grow the business with us. The biggest challenge is retaining good team members because in hospitality that’s what brings customers back.

“We’ve been back a year and we’ve come back with a bang. We knew it would be a long road to get through, it would take

us a year. As far as we’re concerned we’ve met our goals.”

Both Bindya, who handles finance, and Preeti, responsible for operations and staffing, admit they are more confident now in their business dealings.

“We work together every day and we take care of our own portfolios. Working together was never the challenge.

“The greatest achievement for us was to prove we could do it,” says Bindya.

“Our business now has picked up, we’re profitable, we’ve got together a good team, we have happy customers. It’s a good feeling; it’s rewarding to see it all come together.”

Now the pair are focused on building the business further. They’re still managing it with fly-in-fly-out husbands who spend six-week spells in Australia every two months. Long term, the plan is for the families to reunite here and enjoy life together.

Preeti is absolutely clear that a franchise which has systems in place was the best solution and has allowed them to fulfil their ambitions.

“We’re more passionate about the business now and I think coming from a different country, and doing it in a foreign country, with no extended support, is a huge, huge achievement.

“You just have to follow the system.

Learning the ropes was a challenge, because it was different to what we were used to. But once we got into it, following the rules and regulations was fine. Franchising was the umbrella we needed.” n

LEADERSHIP

Paul Castorina, second left

THE NURTURER PAUL CASTORINA AT THREE BEANS, NSW

L

ong-term franchisee Paul Castorina knows that enjoying the lifestyle is crucial to success in a hospitality business.

For Paul, his love of the cafe culture began way back in 1997 but it wasn’t until he got to know the founders of Three Beans that he could see a way to fulfil his dream to buy his own business.

“I had always wanted to do something.

I knew the franchisor James as a customer at another food outlet I worked at, I started talking to him. It was a good step out. I didn’t have the confidence to go out on my own – he made it easy.”

Paul loved the concept of the cafe brand which focused on simple, healthy eating.

“It’s a good-food model, a good concept, the menu’s good, the coffee is great. I’d worked in Manly for 10 years and I was hoping that with my experience and their model we would make something pretty good.”

Although he had a hospitality background, he found it quite refreshing to learn new ways to do things. The franchise model allows for some flexibility in design and processes. Paul has been able to pick the best from his methods and from the Three Beans system.

“The franchisors are very approachable, they’re very supportive, so that makes it easy. They are welcoming and very calming when they need to be. They try out new things and offer advice about profitability,” he says.

Paul and his wife Jenny invested in a brand new cafe, starting up the Manly store from scratch with new staff.

While it’s definitely a family business, today Jenny’s role is focused on paperwork and admin.

FRANCHISING CAREER PATH FOR STAFF Three years ago the couple were ready to take on a new store and bought the existing Warriewood Square cafe.

“We had become very comfortable; the Manly store has been steady for five years.

I’m hands-on in the shop and we’ve had a lot of long-term, loyal staff, and the same chef, Lincoln Brazier, for the nine years.

“We started to get too many big fish in one shop. So we thought we might as well utilise that and go to a second store, and it’s just as successful as the first.”

Long-term staffer Chris Noble manages the second franchise.

Paul reflects on the valuable input Lincoln and Chris have made to his business: “It would have been a lot harder without them,” he says.

The foundation of success is good product, but Paul know it takes much more than this to build a sustainable business.

“We know what we do works – focusing on customers becoming family and regulars, creating a place where people feel so welcome so that the cafe is about more than just coffee, it’s a meeting place. That’s something we try to put into our work ethics in both our stores.”

Satisfyingly, within weeks of taking over the Warriewood outlet there was a dramatic improvement in turnover, profit and overall functionality at the store, Paul says.

“We spend a lot of time training, mostly hands-on, and we try to manoeuvre new

staff into our existing style of service. It’s important to be streamlined and keep everyone happy with their roles and their hours.”

He’s keen to point out that expansion has been measured, based on his principle that the business foundation needs to be solid and growth steady rather than too fast.

Now, however, Paul and Jenny are starting to look for a third outlet.

“I’d like to have two more shops, maybe go into partnership with Chris and Lincoln and see them develop.”

MEASURING SUCCESS “I am way ahead of where I thought I would be when I first started. Of course I’m after financial success but there’s more to it than that. There are other ways I measure success. We’ve been consistently busy for nine years, we have a very low turnover for our main staff – we’re a family.

“We’ve remained a top coffee shop in the Manly area, which even though the area is a tourist attraction, more than 60 per cent of customers are regulars. We sponsor school and sports teams, and help fundraise in the community. That has helped our success,” he says.

As a business owner Paul is able to adjust his workday to spend more time with his four children. That’s all made a lot easier with staff who are reliable and treat the business as their own, he says.

Life as a multi-unit franchisee is busy. But of course he loves the work: “Hospitality is not just about coffee or food, we enjoy it. I think the industry needs to be part of your life for it to flourish.” n

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LEADERSHIP

THE STRATEGIST ANDREW STRIBLING AT BOOST JUICE BARS, QLD AND NSW

A

ndrew Stribling knew when he was ensconced in his corporate role that one day he would strike out on his own. What he didn’t know was what shape this business would take. He put his love for statistics to work and uncovered that while small businesses tend to fall away, well run franchises can stand the test of time.

So it made sense to look at franchising as a way to achieve his ambition. And doing his due diligence on three brands he was drawn to Boost Juice, a decision he says now was absolutely the right one.

“Boost was very transparent, and didn’t really hide anything about what was required. They were quite open and honest, and that was one of the factors for choosing the brand,” he says.

“It didn’t happen overnight, it took well over a year. I could only afford a greenfield [brand new] site so I had to wait for the right location.”

So when Andrew and his wife Rachel finally got the keys to their first Boost Juice store, they were excited … but ready for the challenge.

“I went from a fairly flexible role, a senior position in a big organisation, to working seven days a week in a shopping centre. I had been quite sedentary and suddenly was active all day, and then I still had to come home and do the books and ordering.”

And while Rachel worked on HR and marketing she maintained her full-time

corporate role, which proved a wise move in the economic climate, as they entered Boost “just as the brand and retail generally hit a downward spiral”.

Andrew admits now the tough experience effectively served as an apprenticeship. “I had to be across everything and drive every dollar. I got to understand the business inside out,” he says.

This solid foundation meant by the third year of operating his store Andrew was looking to expand. To ensure he was ready for the task the franchisor asked him to trial run a second outlet. He took on the management of an underperforming city store and turned it around. Job done, Andrew decided multi-store ownership was definitely his future.

Within 12 months he had purchased two stores in one centre from a single franchisee, and then added a fourth outlet.

NEW FRANCHISEE PARTNERSHIP Andrew then added another element into the mix, a partnership with fellow franchisee Colin Webster.

And he loves the partnership, knowing that there’s someone to share the load and to cover for holidays. “You never feel you are alone, and it allows us to focus on what we’re good at,” he says.

The pair operates a management company which draws income from each store. The portfolio of 11 outlets (including one Salsa’s) is a mix of joint venture and individually owned stores.

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“We’ve seen growth year on year, on the profit line,” he says.

The growth is not necessarily a result of improved sales but achieved through efficiencies and improvements, and knowing when to close a store and when to reduce debt.

FRANCHISEE GAINS As a Boost franchisee he has gained invaluable knowledge of systems, access to lawyers, accountants, leasing agents, business tools, and business intelligence, he says.

And there has been undoubted business success. In 2015 Andrew and Colin took out the FCA Multi-Unit Franchisee of the Year award.

Just this year, on 1 July, the partners launched into a completely different market – escape rooms. The growth of the experience economy overseas sparked their purchase of the first Australian franchise for Swedish-based business Fox in a Box. They loved the brand too, of course.

In the first few weeks the business has been “unbelievable”, he adds. “It’s exceeded expectations but it’s early days. Although escape rooms are not new, they’re in their infancy in Australia. We tend to follow the US and it’s very popular there.”

Could Andrew and his partner take this further, perhaps even take on the master franchise for Australia? While it’s in their thoughts, they won’t seriously consider this until they have at least nine months trading under their belts.n

LEADERSHIP

THE GO-GETTER ADAM ODEH, AUSTRALIAN SKIN CLINICS AND HAIRHOUSE

A

dam Odeh has turned his entrepreneurial skills to good use in the franchising sector.

Adam arrived in Australia from Palestine with his family in 1996 and chased his dreams from an early age.

“I have always had a genuine passion for business and I found myself in an extremely privileged position to follow that in such a great country,” he says.

After graduating with a pharmacy degree, Adam went on to establish his own pharmaceutical compounding distribution business, Dermicare.

Not satisfied with the one income stream, he bought a Hairhouse franchise in 2007.

“It was a natural extension to what I already do. It was compatible.”

It also proved a canny move.

When Hairhouse officially teamed up with Australian Skin Clinics in 2016, Adam was quick to join forces. And today, not only does he own his own Australian Skin Clinics franchise in Plenty Valley and Hairhouse store in Warrnambool, Victoria, he is the main compounding product supplier for Australian Skin Clinics nationwide.

“When I first started working with Australian Skin Clinics, I identified a need to streamline the ordering and supply process for professional skincare formulations used for advanced aesthetic skin treatments in clinics,” explains Adam.

His Dermacare business was the

solution; it was able to simplify the entire ordering and supply process for Australian Skin Clinics via an online ordering platform.

Now there’s consistency in the quality and efficacy of products, which Adam and Australian Skin Clinics create and develop together.

“I wear both my franchisee and product-supplier hat simultaneously on multiple occasions,” explains Adam.

“I worked with Australian Skin Clinics’ marketing team and training academy to deliver many innovative products, including a product for their 2018 Christmas campaign that was a first for the brand.

“Wearing my franchisee hat, I truly understood what franchisees and their customers were looking for and how it would transcend to the retail floor. That way we were able to directly pinpoint the gap in the market, not just create something we hoped someone would like,” he says.

ENTREPRENEURSHIP IS EMPOWERMENT Adam has been swift to recognise business opportunities and he believes this is part of his personality.

“I think it’s an innate thing,” he says. “The way I operate in general, I like to manage the managers. I don’t sell at the front desk but intimately I’m involved in each store.

I have a team that I work closely with, consult with. My main role is consulting to businesses. The teams are empowered to

do what they need.”

In practice this means teams agree on a goal, KPIs, budgets and numbers, and Adam is there to offer any assistance.

This powerhouse shows no signs of slowing down; he’s a serial entrepreneur with his sights set on fresh opportunities but with a penchant for the fast-moving beauty industry. Adam plans to open more Australian Skin Clinics sites and grow Dermacare’s wholesale market.

As an entrepreneur straddling both franchised outlets and independent businesses, he is well placed to sum up the franchise equation.

“Franchisors only give you 20 per cent of the success, 80 per cent is dependent on you. I’m confident in my ability and with a franchise I’m freed up to concentrate on other things.

“My biggest challenges and and my biggest successes are my team. Without good people none of this is possible. You have to identify the right people and empower them. My team have to buy into my vision.”

Adam is married with two young boys, aged nine and seven. Family is his top priority but to effectively juggle family commitments and work demands he is reliant on his work teams.

“We support and empower each other which is definitely the driving force behind our success,” says Adam. n

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Advertorial

7-Eleven Australia’s digital investment to enable future business growth 7-Eleven Australia is advancing into the future with significant investment in digital and explorations into format and offer.

General Manager Retail Operations, Braeden Lord, says the investment in digital and exploring new offers and formats are important for the future of the traditionally bricks and mortar focused business.

“We are a customer focused business. Over our more than 40 years we’ve always pushed ourselves to evolve to meet the needs of our customers quicker than our competitors, from our market leading freshly ground $1 Coffee offer, back to our earliest days when we pioneered 24/7 retailing in January 1978, we’ve been willing to invest and to push ourselves to grow. However the convenience consumer in 2030 and beyond, even more so than the consumer of today, will expect brands to provide digital across the physical retail experience, and to use technology to enable personalised, frictionless, value added experiences in-store,” Mr Lord said.

Mr Lord said that right now, digital for 7-Eleven means building a digital ecosystem with strategic partners to enable an extraordinary customer experience in both the digital and physical spaces.

“We want our platform to support our fantastic teams to give our customers what they need, when they need it, where they need it while ensuring that doing business is simpler, easier and more efficient. We want to evolve our offer to provide customers with services that meet their needs, and to provide more food for now food, and for later solutions, so freeing up our teams through technology enabling that to be achieved in an efficient and sustainable way,” he said.

According to Mr Lord, the evolution of convenience means that stores will continually need to adapt to new offers and new services, but the aim is for the investment in digital to free up time in store to put back into the quality of the offer.

“Customers will expect different things in terms of what a convenience store does. We need to try new formats and offerings to make sure that we can stay synonymous with convenience in the minds of Australian consumers.

Whether that involves day part focus on freshly delivered bakery products, extended food preparation, or acting as a store concierge to help customers use new digital services, it means the capability of store leaders and team members need to evolve to,” he said.

Mr Lord said it’s an exciting time to be involved in convenience retail.

“Consumers will have needs in 10 years we can’t imagine right now, and no doubt there’ll be things 7-Eleven is doing in five years that aren’t on the radar right now, whether that’s new services such as our 7-Eleven ParcelMate, food, delivery or something else. Our growth and success over the last two years, and to be more accurate, over the past 40 plus years, has been strong and sustainable. It’s a testament to the hard work of our entire team over that time that we are in the market leading position we are today. However our industry is changing and to remain relevant, we want to leverage our ability to invest in the long term areas we want to win in to ensure the business is as successful in 2030 and beyond as it is today,” Mr Lord concluded.

LEADERSHIP

YOU CAN DO IT!

Working by yourself could be the next step towards financial freedom.

By Sarah Stowe

S

olo solutions make perfect sense if you want to generate income and build your own business but on a budget. We spoke with some on-their-own

franchisees who are navigating their way through to success.

There are endless benefits to taking charge of your future and driving your

business to bigger and better goals.

Of course, business ownership always comes with challenges, and for sole traders there are some particular concerns that working alone brings.

Bev Taylor, InXpress Bev Taylor is an award-winning franchisee based in Sydney. Back in 2017 she scooped a top award from the Franchise Council of Australia. She’s a high achiever, and loves the benefits of zero commuting time and flexibility around her working day. But she also understands first-hand the challenges of being a sole trader.

“There can be many downsides which can hinder work progress, development, and very much so your mental state,” she cautions.

She found two particular areas to be problematic.

Firstly, solitude. “There’s a lack of interaction with anyone other than customers so there’s no venting off to your colleagues about that difficult, unreasonable customer or asking if you have this formula right in Excel,” she points out.

Then there’s the issue of absorbing new information.

“I don’t get to learn new techniques from working with colleagues, or get basic validation of what I am saying and whether what I am doing is the best way to do something. The accountability of being around others holds you accountable in its own right so you are less likely to digress, spend too long on a personal call or open social media a little too much.

“At home there is always a distraction; maybe the washing needs doing, that one friend who is not at work wants to chat, or your social media is just crying out for you to take a quick peek.”

Taylor doesn’t let these minor downsides shape her working day, however, and she’s happy to share what keeps her in the moment.

“These are some of my tips and pointers which help me get back on track, keep focused and motivated, and really make the best of working from home.”

Bev's 11 top tips for flourishing as a sole franchisee

ACCOUNTABILITY Working from home means you are only accountable to yourself, so don’t let this be the case. Partner with another remote worker or colleague and have weekly calls to hold each other accountable. Share (and report back on) your targets, goals, to-do list and essential actions. Also have a pact with each other and agree to be the “virtual co-worker” to call each other if things are tough. Knowing someone is there to contact eliminates the need half the time, but don’t be scared to take each other up on it when you feel you need to.

MENTOR Enlisting the help of a mentor is something that made all the difference to me and my business. Set goals and actions together, and always aim high. Never underestimate the power of the right mentor; they will give practical advice, encouragement and support, share experiences from others. They can help identify which areas need improvement and how to improve, and address your personal and academic skills.

MOTIVATION One thing I regularly do is listen to motivational and learning audios. You can stream free podcasts on your phone but I also find some of the best books are available on YouTube; some of my favourites are Tony Robbins, Dale Carnegie, Brian Tracy and Zig Ziglar.

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Jeff Duncker, Poolwerx Duncker has owned his own single mobile Poolwerx franchise in Jimboomba, Queensland, for five years. His expertise is deeply rooted in the water industry, with more than 35 years in field roles.

TOP TIPS 1. Create opportunities to extend and build your own network e.g. socialising and communicating with people in the same industry as you to keep yourself motivated.

2. Communicate with your clients regularly, to remove any feelings of isolation. I find a good way to do this is by keeping clients up to date with the status of the jobs I'm working on.

3. Keep a positive attitude, enjoy what you do and you’ll be rewarded for it.

Duncker suggests the following are important working tips ...

1. Outline and have your own terms and conditions for how you like to work with clients, including payment terms.

2. Ensure that a deposit is paid up-front before commencing any job. Stay on top of your accounts and don’t be afraid to chase for payments if they are delayed.

3. Utilise head office, it is there to provide support and assistance when required, and is a good resource for training and development.

Feed that motivation bucket daily. Just as you are what you eat, you are what you listen to and read. Use these sources as they will help you keep focused and on track. And have yourself a happy playlist of upbeat and cheerful tunes for those tough times.

MEETINGS Always hold a weekly meeting with yourself. I know this sounds a little crazy but it really helps summarise and clarify your activity and direction. I find this is best done on a Monday morning, away from your working space.

Sit at the kitchen table and literally have a meeting with yourself to discuss and review how the last week went. What went well and what didn’t? Did you achieve your tasks and goals?

What is it that stopped you, and how can you avoid this happening again? Then, finally, plan the week ahead.

SET STRICT TIME BLOCKS This is essential so you do not lose time working on unimportant tasks. On a weekly basis set your major goals and actions in your personal (or peer) weekly meeting, then each night review what you have achieved and what needs to be done the next day. Set and update your to-do list and schedule those time blocks for the following day.

Do not change them for anything other than emergencies.

Remember, new non-urgent tasks will be addressed on your to-do list at the end of the day. Be firm.

USE YOUR EXTRA TIME One way to help increase productivity is making the most of extra time you do not spend commuting. If you previously left for work at 7.30 am, start work at 7.30, or use the time to learn and develop. If you didn’t get home until 6.30 pm, the same theory applies.

It doesn’t have to be always work but spend it wisely – maybe share that extra time with the kids, or a loved one. Just don’t waste it, make the most of it.

KEEP LEARNING Attend every relevant conference and course that you can. Not only does this increase your learning but it also breaks up the monotony and solitude. What skills do you want to develop?

Enrol in a course! It could be a one- or two-day course or even

just a few hours. Conferences are a great way to interact with peers, build a network, learn new techniques and pick up ideas. You might even find new customers on the journey too.

SOLITUDE AND LONELINESS Yes, being lonely is a reality of working on your own from home, especially if you are single or live alone. So this is where you need to plan and ensure that you have a social life … and customers do not count! Plan two nights out each week socialising or participating in an evening activity away from home.

Which friends can you catch for a quick dinner? What can you do during the day to shake things up and have a change, but still be productive? Do you have a coffee shop near you, or a park? Can you work for a few hours in a different space? It really helps to just escape the same walls even if just for a few hours.

Which brings me to the next point.

TAKE A LUNCH BREAK! And driving to or from a meeting does not count as a break. Move away from your desk – ideally right out of the house. I find a gym session helps my mental state. The lunch break doesn’t have to be a full hour; commit to a minimum of 30 minutes, take a walk, sit in the garden or on the balcony ... just get away from the computer, your desk, your work.

CREATE A HOME OFFICE Always have a work space separate to your living and sleeping area, ideally in a room where you can close the door at the end of your working day. If it is in the same living area, close the laptop and put it in a drawer out of sight. No cheating or sneaky peaky, and if your business model allows it, do not check your email at night. Separate free time (and the work space) as much as you can.

TAKE A BREAK My mentor taught me to plan a few days break away from home every three months. Apart from having something to look forward to, a break encourages you to actually take some time out. After all, you have earned it. And if you can, try not to work on your days off; set yourself free time and stick to it as much as possible. Before anything else, always focus on being kind to yourself!

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LEADERSHIP

Mathew Massimissa, Jim’s Pool Care Matthew Massimissa is notching up the awards at Jim’s Pool Care. The Kewarra Beach franchisee is this year’s National Franchisee of the Year, and the 2018 Regional Franchisee of the Year in the network.

“As a franchisee you’re your own boss. The buck stops with you. What’s good is that you can control how much work you take on and how busy you want to be.”

That delivers a sense of achievement and satisfaction from your own input, he says. “As a franchisee you have the ability to have total control over your income so I am constantly thinking about sales techniques. Great service is always rewarded and clients are happy to pay for great service. You get out of it what you put in.”

Matthew’s top tips for flourishing as a sole franchisee SET GOALS I set myself daily and weekly goals, usually something simple that I can achieve within the week. For instance, how many new regular customers I secured, how many equipment installs and upgrades that were approved, and total number of services I was able to complete in a day or a week.

STAY SOCIAL Plan to have meetings with fellow businesspeople during the week. These could be with other tradespeople that complement your business. Meetings could be lunch catch-ups or planned meetings/presentations to prospective clients.

NETWORK Join a local networking group. This is not only a great source of potential revenue, but will provide you with valuable human contact and conversations. These take place every week and bring some much needed human interaction to your week. Create a personal network of businesses that you can leverage when you need them.

DEVELOP RELATIONSHIPS It’s important to build strong relationships with your suppliers. Make regular calls and meet in person whenever possible, not just when you need something but to show a genuine interest in them personally. When the time comes, these people will be there to help you out.

SELF-MOTIVATION “Time flexibility is a huge contributor to an enjoyable solo job. Most of the time you can do what you want when you want.

This does take good time management skills, though, to benefit from this, as if done poorly the opposite can happen. Lack of time. This will encourage you to run a good planning day-to-day diary, and you will find the time.

“For me, the biggest motivational factor I have is when I do it right I get to spend valuable time with my family and friends.

“The day-to-day stuff is the most exciting to me. The benefits are really the outcomes of doing the motivational stuff well.”

Brocq Robertson, Gutter-Vac Brocq operates the Shepparton Gutter-Vac franchise. He shares his tips on what it takes to be a success as a solo operator. And it’s no surprise that support and hard work are central to achieving your goals.

TOP TIPS 1. Be organised and allow time to learn the things that are not your natural strengths.

2. Make sure your partner and family are supportive. Even though they are not working in the business day to day, their support is vital for success.

3. Have a great work ethic. Be prepared to work for the first couple of years to build up your business.

When you’re doing this, no job is too small or too big.

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LEADERSHIP

BUBBLE RAPT One of the largest bubble tea chains in Taiwan has unveiled its first Australian franchise and flagship store. Milksha launched in Melbourne early spring.

M

ilksha (known as Milkshop in Taiwan) has more than 240 outlets in its domestic market and across Japan, Hong Kong, Singapore, Macau, and now Australia.

Peter Huang, Milkshop International’s general manager, explains: “The bubble tea craze has been seized in top cities around the world. In our observation, this market keeps growing as more and more people are getting familiar with the bubble tea drinks, including the Western markets.

“We chose Melbourne to launch our flagship store because it is no doubt the foodie capital of Australia. The city is a melting pot of different cultures open to trying new products, which can be seen in its established and growing market of bubble tea lovers.

“Australians are seeking high quality products and are more health conscious about their lifestyles, which matches with Milksha brand pillars: natural, healthy and high quality.

“In Taiwan, we are one of the top brands setting the benchmark of the bubble tea market as we always find the best quality ingredients. We have our own dairy farm in Taiwan since our founder comes from a third-generation farming family.”

Fresh milk is a crucial, distinguishing ingredient for Milksha and in Australia the company is partnering with local award-winning Saint David Dairy for all its fresh milk.

“Our team tested over 30 different milk brands in Victoria, and the team at Saint David proved exceptional. The quality of their milk extended beyond the product,

and through their sustainability practices by offering small-scale processing, localised supply chains and transparency in their commitment to ethical and environmental welfare,” Huang says.

In line with Milksha’s environmental focus, the franchise uses 100 per cent biodegradable bamboo straws. The bamboo is grown and the straws made in Taiwan, and they are completely free from plastic, bioplastic and PLA. “By using paper bags, paper cup holders and bamboo straws instead of plastic, we hope to reduce our impact on the environment. Milksha is a proactive brand and we will continue to seek other sustainable alternatives to integrate within our business,” says Huang.

TOPPINGS AND TEAS “We source high quality loose leaf teas from various regions around the world including Taiwan and Sri Lanka. Our tea leaves are brewed and tested regularly for quality control. There is a lot which goes on behind the scenes, including using water that goes through a multi-filtration process.

But we believe in providing the best quality ingredients for our discerning customers,” Huang says.

Milksha’s Australian menu features five bubble tea categories: Fresh Milk (pure milk blends), Tea Latte (loose leaf tea and milk), NOV/JAN 2019-2020 | 58 | WWW.FRANCHISEBUSINESS.COM.AU

Peter Huang and Kevin Lin

Specialty (seasonal juices and teas), Tea (Jasmine Green, Earl Grey, Light-roasted Oolong, Oolong and Barley teas) and Yoghurt Drink (Strawberry, Avocado and Mango).

Milksha makes its own signature honey pearl toppings, which are quick frozen and shipped to Melbourne. Other toppings include milk pudding, red bean and herbal fairy-grass jelly.

Specialty ingredients for this brand include Taiwanese taro milk, premium cocoa from France and matcha from Japan.

BUBBLING ALL OVER AUSTRALIA Milksha will initially focus its energies in Melbourne with Sydney following, before extending the brand’s reach across the nation.

“We will steadily and firmly grow the business in Australia like we have done in other countries instead of spreading out too fast and overlooking our product quality,” says Huang.

“Milksha is a well-established brand in Asia, and so we believe the brand reputation helps brand awareness among Asian communities. To grow the brand well in Australia, we pay attention to consumers’ experiences in our store.”

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That equates to creating what Huang describes as “a cosy and stylish space for our customers”.

Constant social and digital communications help maintain customer support and ensure word-of-mouth messaging delivers new business.

AN OVERSEAS BRAND OVER HERE Huang points out that thorough research into a new market is always part of the pre-expansion plan for the Milksha brand, giving confidence that the fresh territory will prove viable.

Ingredients are key, so to sustain the authentic flavour of its bubble tea, Milksha ships fresh ingredients from Taiwan to each market.

“We have learned how to to keep the best conditions of the ingredients from many failures in the past,” he admits.

“We also provide strong support from our headquarters for each market with an R&D team that specialises in product innovation and quality control,” says Huang.

It is crucial not just to rubber-stamp the menu without due regard to local tastes and culture. The Melbourne franchisee, for example, is stocking exclusive yogurt drinks unavailable in other markets. n

At SIGNWAVE we are not in the business of franchising, we are in the business of small business ownership success.

There’s a bright future in signage!

We work every day to help our owners realise the promise that being part of a franchise system offers to achieve the vision of both lifestyle and financial returns. And with clients crying out for a professional, knowledgeable and reliable supply partner the potential is unlimited.

The benefits of a SIGNWAVE franchise are many: • • • • • •

The resources of a 700+ location strong international brand FASTSIGN/SIGNWAVE Leverage to grow, with a best practise, IT driven system The returns you want with a highly profitable business model Experienced training, support and sales coaching, making you an expert from Day 1 Lead generation from our sophisticated marketing program In demand services within the $5.8bn print industry in Australia

But what really sets us apart is our vision and philosophy.

We are growing a boutique network of highly successful centre owners in Australia who see themselves running a substantial business to fully realise the potential of business ownership with both financial and lifestyle returns.

If you can lead a team, implement a system and drive sales, you should talk to us now about the opportunities to join our network.

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

LEADERSHIP FOCUS

COMMUNITY

BREW Taking on a new challenge can be daunting, but with an entire town on their side, these regional Muffin Break franchisees are serving up success.

By Nick Hall

W

hen former school teacher Gayle Purdue and her husband Des decided to open a cafe franchise in their local town of Coolalinga, it was about more than just money.

The pair were committed to not only building a stronger future for themselves, but a more inclusive one for their daughter, Olivia, who lives with an intellectual disability.

“There isn’t a lot of supported employment in Darwin,” Gayle explains.

“So, we knew that when Olivia was about to finish school, we would have to look at other options. We love coffee and thought we’d get into a Muffin Break.”

Having control over their workforce was a big pull for the pair, but it meant that Gayle would have to step down from a role that she loved dearly.

“Des is more of a risk-taker than I am,” Gayle jokes. “At the start, I was the one who was like ‘No, I’m not giving up my

career’ but it was Des who said ‘You’ve got to give things a go’. When we really got serious about it, I thought ‘Wow, we can really do this’.”

The Northern Territory franchisees underwent an extensive research process, taking into account all the aspects they were looking for in an opportunity before finally settling on Muffin Break.

“Being a teacher, I am very data driven.

We did a lot of research, spoke to a lot of different stores, went to franchise expos and in the end, when we shortlisted, the benefits and support from Muffin Break were outstanding.”

SUPPORT From day dot, the Muffin Break team took the couple under their wing, with Gayle invited to attend a hands-on, three-week head office training program, before completing one week in the corporateowned store at Moore Park.

“Being a teacher, it’s completely

different from running a business, but from the second we arrived at our training, it was amazing. The staff just make you feel like you’re part of this massive family, you can ask any question.”

It was a big step for Gayle, who underwent the training alone due to her partner’s complicated working structure.

For a number of years, emergency services operator Des has worked week-on, weekoff on a mine site.

“It works out well on my week off,” he says. “I’ll generally stay at home for a couple of days, do a bit of housework around the block — we have a 5-acre block — and then I’ll come in and help out at the store for the rest of the week off.”

To help him get up to speed when the store first opened, the Muffin Break Northern Territory state manager and franchise consultant were on-hand providing assistance.

“It shows the benefits of a franchise.

People sometimes shy away from that, but that’s why we got into franchising to begin

If you love what you’re doing, you’re going to do it well and work really hard at it. Do you research and go with what feels right.

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LEADERSHIP

entrepreneurial spark and a homegrown love of the town in which they operate.

Ask the locals and you’d be hard-pressed to find one who didn’t know Gayle, Des and Olivia by name.

“It’s a really strong community, it’s a rural area and they do get behind things they feel are important,” Gayle says.

A LOCAL FOCUS

with,” Gayle says.

“We wanted to be successful and we wanted to have the support behind us.

We can’t say we haven’t had it because we’ve had so much support. I think that’s why our journey has been so amazing.”

COMMUNITY INITIATIVES Breaking into a tight knit community isn’t easy, and with the added challenge of a new business on their hands, Gayle and Des knew it would be difficult, but the rewards would be plentiful.

“The Territory is really a place where a lot of businesses are kicking off. There was only one Muffin Break in the Territory; there’s now three,” Gayle says. “It was a really good opportunity for us to stay where we were and again, with Olivia being in a small rural community, a local community because she’s now grown up there, it just worked. It was just the right fit.”

The locals agreed, and since opening the Coolalinga franchise more than two years ago, the pair have amassed an army of loyal customers and fans, happy to show their support in more ways than one.

“Having Olivia, we opened in our local community because it was really important that people knew her and had a bit of an understanding of where we were coming from. So we’ve really tried to partner with a lot of local events and activities.”

Earlier this year, the Northern Territory franchisees partnered with the Cancer Council in support of the foundation’s Biggest Morning Tea initiative. Gayle says she was blown away not only with the support the locals gave her, but their willingness to get involved.

“The Biggest Morning Tea for Darwin is really important, because a lot of families in the past that have someone with cancer have had to travel and move away from the Territory for treatment. When the Cancer Council does an event in Darwin, all the money stays in the area and they’re able to keep families together.

“Our loyalty customers were all on-board, so we had people asking about it for weeks before we did it. As soon as we put it out there, they just wanted to be part of it. Our local member came in and she was serving coffees to our customers, so it was a really good morning.”

The husband and wife team typify what makes small business great in Australia: an

While the pair aren’t thinking too far into the future, growth certainly looks on the cards, just not in a business sense.

“One of our employees is due to have a baby in a week so it will be our first Muffin Break baby!” Gayle says.

The beaming entrepreneur and her husband reveal that one of the most unexpected benefits of owning a Muffin Break franchise has been the ability to become a meaningful employer in an area otherwise sparse of opportunity.

“We have 13 employees, some only do a few hours, and some do up towards the 30-hour mark. They are just like a little family, and that’s what we love about it,” Gayle says.

“Especially when you look back and think ‘I’ve just created 13 jobs for people’,” Des adds.

The family connection isn’t just a passing comment either. In fact, many of the Coolalinga franchisees’ employees are kids that Gayle taught in her former life.

“It’s good but it can be sad too because you see some of them grow up and move away,” she says.

“It’s really kept me connected with the young people in a different way because I’d finished the school journey. Now they come to us as teenagers looking for their first job.”

After two years and a wealth of support helping to boost her little rural business, Gayle reveals she couldn’t be happier she made the leap into franchising.

“We’re really passionate about our store, and I think that’s something you need in any job. If you love what you’re doing, you’re going to do it well and work really hard at it. Do your research and go with what feels right.

For us, looking back, I’d do it again in a heartbeat.” n

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LEADERSHIP

FAMILY FORTUNES From left, Eloise, Stephen, Annalise, and Matthew Penfold

How do you turn an established firm into a disruptor? One family has shown the way, proving tradition is nothing without innovation.

By Sarah Stowe

T

hree generations of the Penfold family are heavily intertwined with the Kwik Kopy franchise, serving the brand across all elements of the business, from chairman to franchisee. But it all started with the family firm ...

Stephen Penfold joined the WC Penfold firm in 1956 with printing very much in his DNA. The firm had been established 126 years earlier by a convict bookbinder, and it became WC Penfold with William Clark Penfold’s purchase in 1886.

So it was perhaps inevitable that in 70 years the tradition of the Penfold family business would continue with Stephen.

“I just grew up in it. It was discussed at breakfast, my father absorbed it completely, it had been there forever,” reflects Stephen.

He loved the mechanics of the print industry, and of business. His first lesson was ‘Forget about your toys, understand the customer’.”

Stephen was selling the idea of a gravure press for a buttermaker. A good sale is all about understanding what’s important to the customer, he says. In this case it was cows and milk. So rather than focusing on all the bells and whistles of the machine, he talked about how it could be used for butter wrappers.

Those early years proved a great education in strong business principles. Of these, three stand out for Stephen: • Understand your customer, and what they want and need.

• Benchmark your business.

• A business runs on up-to-date systems.

It was these three business principles that led Stephen to US-based Kwik Kopy.

“I looked at instant print and could see the brand was building trust with customers, it was benchmarking, and as a franchisor it had good systems. So we bought the licence.

The first Kwik Kopy Centre opened in Sydney’s CBD in 1982 and was run by Stephen’s sister-in-law and brother-in-law, Mary and Reg Waite.

When WC Penfold decided to offload its Kwik Kopy franchise business just a few years later, Stephen seized the opportunity to purchase the business. He left the family firm and became the franchisor for Kwik Kopy Printing in Australia in 1985.

“In the very first years, when you think about it, we were a disruptor. It was a very settled industry; if you wanted letterheads you had to order 1000 and it would take a month.”

In contrast, Kwik Kopy could deliver 500 later that day.

“We could only do it one colour, preferably black,” laughs Penfold. “But customers loved it.”

Kwik Kopy reinvented itself as a colour printer business and became a communications partner for its clients. Stephen’s son Matthew explains.

“It was about marketing. Now, most marketers see print as an essential part of their communications strategy and one that is tangible to customers.”

He points out that 30 years ago nearly everything the business printed ended up

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in a filing cabinet. “Administrative printing was the basis for running the business, and clients ran their business using paper.

Computers got rid of filing; they didn’t get rid of paper.”

Stephen led Kwik Kopy into the digital era, strategically transitioning the business from offset printing to xerography, then to desktop publishing and colour copying.

More recently, Kwik Kopy has emerged as one of the fastest growing businesses in the wide-format and signage space and has also built a software-as-a-service (SAAS) offering, launching Print Speak in 2013.

However, as Matthew points out, while technology has evolved significantly, the three business principles his father cites haven’t changed at all.

“Our business is still built around those.

We allow our franchisees to benchmark and compare with each other, in a robust way.”

By 1992, system-wide benchmarking was mandatory at Kwik Kopy, which clusters its franchisees into performance groups. “We need to understand what the best of the best looks like,” he explains.

FRANCHISE SUCCESS Matthew has taken on MD and CEO roles at the firm, and since 2016 has been the Kwik Kopy franchisee at Sydney’s Darling Harbour.

He knows what it takes to get the business operating at full speed, and what franchisees need to deliver results.

“We’ve been successful because there is sincerity in the depths of the relationships we have with franchisees,” he explains. “They’re engaged in the industry.

They know we are committed to benchmarking and learning, we’re the coaching team. It’s our job to take them further. We don’t have a business if franchisees don’t have success. If franchisees run highly profitable businesses, we’ve got a good franchise system.

“The drive has to be to make them profitable. That’s a core part of Kwik Kopy.”

The danger for any franchisor is to ignore the entrepreneurship in the network, suggests Stephen.

“Most franchisors when they start do not bring business skills to the table, they bring good ideas, a brand and how to run a store. In any franchise system, 20 minutes after the first one is sold, the franchisor

stops being at the cutting edge and has become the teacher and trainer. If the franchisor is smart, he picks up the best of the best around him and incorporates it into the system.

“We were lucky. I was experienced, Kwik Kopy had systems so I started out with them embedded, and we built benchmarking in to our agreement.”

WORKING WITH FAMILY Second-generation Kwik Kopy enthusiast Matthew recognises he’s been lucky to be part of the family business. “From the minute I joined the franchise, it felt inevitable. I just loved it. Stationery seemed a bit retail, commercial printing seemed too industrial. I didn’t have Stephen’s passion for pulling things apart. But I did have a passion for marketing.

“Dad was doing a great job, opening an opportunity, a door, providing mentorship when appropriate, but what I really felt, Dad was being a great family business person because I was the beneficiary of that, of three generations of experience.

“Certainly there were challenges but Dad did it better because of his experience.”

Kwik Kopy’s success has been helped by clarity about individual boundaries and tasks.

“At any one time, we are very, very clear about our responsibilities and roles.

Dad stood down when I was running the company,” says Matthew.

“When I took over Kwik Kopy we acquired Signwave. This was strategically important because it also gave me clear water to sail in; he was busy with the start-up.”

Stephen shares his perspective on what it takes to successfully navigate a family-owned business.

“I’ve seen businesses when family doesn’t recognise that someone coming in has to bring skills. They have to have empathy with the culture, and a desire for the business. You have to be hungry. My father was hungry. I want to be successful.”

It’s an approach equally valid in the search for great franchisees.

“When I look at attributes for franchisees, we want people skills and an orderly mind, but I want to see someone who wants to get on in life.”

Both Stephen and Matthew now hold

non-executive roles in the company.

“That’s got to be the most enjoyable time, we have so much fun, we have very complementary skills and it is really effective. We’ve got a CEO [David Bell] who understands our skills.

“My sister Annalise joined the board, she’s avidly interested in family business.”

The next generation of an extended Penfold family is lining up to continue the heritage print connection, and help sustain the Kwik Kopy brand.

Says Matthew, “My eldest Eloise is in finance, my partner’s two sons have roles in operations: Michael is a business development manager, Daniel is a franchisee.”

Matthew’s daughter Eloise works with him in the franchise outlet.

A FUTURE IN FRANCHISING Matthew believes the continued investing in the business by members of the family is a big tick for the brand.

“I stepped down as CEO but stayed on the board, I love the industry, franchising helps grow businesses, and I love my printing heritage. In Mum and Dad’s cellars we have copperplates for printing for old clients such as retailers Mark Foy’s and David Jones.

“When I was CEO print was the product. I focus more on franchising as a non-executive director.”

Working on franchising wasn’t enough for Matthew, though. So when he had the opportunity to purchase his own franchise, he snapped it up.

“I just wanted to get more hands-on back in. The local franchise in Darling Harbour came on the market, just as we bought a home in Glebe. I knew he would have a good business. We’ve had the business for three years. We’ve grown the top line by about 50 per cent and bottom line by 100 per cent at least.

“I really enjoy it. I put every part of the franchise system to the test, try to push every system to breaking point. I want to be sure it all works.

“The mood of the franchisees towards a Penfold being hands-on has been fantastic, they love it. Some were certain that I would fail!

“I’m much better informed as a non-executive and it really helps to have that visibility.” n

A LIFETIME OF SERVICE LEADS TO THE NEXT GENERATION In 2019 Stephen was rewarded for his contribution to the Australian print industry with a Lifetime Achievement Award. He has contributed significantly to the franchise sector too, holding positions as director and chairman of the Franchise Council of Australia. In 2003 Stephen was inducted on to the Australian Franchise Hall of Fame.

And the next generation is heavily involved in the business. Mark, Annalise and Matthew are shareholders of Kwik Kopy Australia and Annalise has recently joined Stephen and Matthew on the board of directors. Four other extended family members are also contributing to the business in operational roles.

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LEADERSHIP

A SOCIAL NETWORK In the battle for business supremacy, cultural currency is now measured in likes. Which franchise brands have their finger on the pulse?

By Nick Hall

F

rom smart-home additions that collect our data, to Snapchat filters that flood our feeds, social media is one market trend we can’t escape.

In its infancy, social media was seen as a personal networking tool, with little potential for widespread commercial integration. However, much like the early internet adopters of the past, forwardthinking brands jumped to capitalise on the ground-breaking technology.

The ability to quickly and accurately respond to feedback was invaluable, opening doorways for clever marketing executives to speak directly to consumers and bolster their youth appeal.

The result saw seemingly outdated businesses rebranded as savvy, millennial focused entities, gathering swarms of engaged young consumers, and it wasn’t just deals and promotions that inspired the change.

US burger and shake chain Wendy’s famously took a decidedly different approach to social media, employing a dedicated team to respond to Twitter queries and concerns round the clock.

What started out as a way to better connect with the fast-food community slowly evolved, with the young team encouraged to play up feuds between competitors and ‘roast‘ users online.

The Twitter savagery took time to gain appeal, but once celebrities and other pop-culture icons weighed in, the strategy started paying off. The brand now boasts over 3.36 million followers on Twitter.

While some competitors took offence to the Wendy’s approach, others such as chicken wing franchise Wingstop saw it as an opportunity for synergy. The brand

fired back, culminating in an ongoing online rap battle between the two that launched the chain’s Twitter following into the stratosphere.

While actively grilling your competition may not be best practice for all franchise chains, the success of Wendy’s Twitter highlights the evolving nature of social media. Online platforms are no longer just seen as marketing channels and content filters.

It isn’t enough to just be online anymore. Facebook and Google reviews can make or break a business, and in 2019, customers are more in control than ever, and not just when it comes to products.

TERRITORY PLANNING “Social media is everything for Milky Lane, not only do we use it to drive our products, but we also use it for our research and customer feedback,” Pete Haselhurst, managing director of decadent burger bar Milky Lane says.

Like Wendy’s, the burger franchise focuses on providing customers with a meaningful look behind the scenes, focusing on engaging directly and developing connections with its core clientele.

“We engage with our audience and we aim to be personable, rather than a brand where ‘bots’ are used to respond and everything feels very automated,” Haselhurst says.

It’s a strategy that has served the Bondi natives well so far. Since launching its first outlet on the iconic Sydney beach in 2016, the brand has grown to seven restaurants across the country, with three new stores set to open before the end of the year.

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The Cheesecake Shop's social media workshop

that fan feedback has begun to play an active role in the development of new franchise sites.

“We use our social channels to dictate where we open, and our audience tell us what they want Milky Lane. People love what we create, we listen to what they want, and we love our fans.”

Haselhurst admits that using social media data and feedback to assist in the territory planning phase may be risky, but it’s something that has generated strong results to date. One part hip-hop nightclub, one part burger bistro, the Milky Lane concept has been an ambitious sell, and establishing a dedicated customer base was critical to the chain’s success, particularly in the early days. Haselhurst believes that the strong social media presence has allowed the chain to not only build a solid brand, but tap into a subculture of dedicated fans.

“Establishing a brand, when done right, has never been easier because we have social media channels that allow you to share your products with a worldwide or targeted audience.”

FRANCHISEE TRAINING Getting your customers onboard can be a big challenge for some brands, however, and more often than not, franchisees are at the mercy of the marketing team to provide content.

In most models, franchisees pay a marketing levy for a range of local and national initiatives, however that doesn’t negate the need for partners to be proactive.

Iconic Aussie franchise The Cheesecake Shop encourages all franchisees to operate their own social media accounts, giving them the confidence to get actively involved in the local community.

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“Across our network our franchisees have 150 Facebook pages and 127 Instagram accounts,” The Cheesecake Shop brand manager Minu Kaneshakarnar explains.

“Whilst the initial account creation is managed by head office (and we also have admin rights to the pages), the day to day posting is left up to the franchisee and their team.”

Kaneshakarnar admits that getting it right is a skill that not all franchisees possess straight off the bat, but it can be coached.

“Do we see the occasional post that makes us cringe? Yes, but with a little coaching and positive reinforcement from the marketing team, that is very easily turned around.”

In fact, online content plays such a large role in The Cheesecake Shop’s approach to franchisee training, the chain even launched an inaugural social media workshop in July last year.

As part of its franchisee roadshows, The Cheesecake Shop educated partners on the importance of having a social media presence and taught them some tips on Instagram photography.

“In groups, they all used props to style a cake on white corflute boards and learnt how to create the perfect flat lay and also take a good font-on shot,” Kaneshakarnar says.

“This July 2019, again on our roadshow in all markets, we thought it was time to evolve and did a franchisee workshop on creating a stop-motion cake decorating video. We’re sending tripods out to all stores to encourage them to create video content and have also created step-by-step lessons on our online learning management system that can be accessed by franchisees and staff at any time.”

Kaneshakarnar says she expects to see more franchise brands take The

LEADERSHIP

Cheesecake Shop’s lead, thanks to the minimal spend required for traction.

“Social media has now been adopted as part of our local marketing strategy for our network and it’s very important that franchisees understand that it is currently the most cost-effective method to quickly and easily reach new and existing customers in their local area.

Whilst it’s not the be all and end all of marketing, it certainly is an important part of maintaining an integrated marketing strategy as all eye-balls are constantly on the scroll on these platforms multiples times a day.”

RECRUITMENT It’s precisely why some franchise brands are turning to social media for recruitment purposes as well. Home services franchise Gutter Vac doesn’t have the benefit of beautiful burgers and cakes to fill its feed, meaning its social content has a decidedly different tone.

The heritage Aussie business offers educational content through its platforms, and similar to The Cheesecake Shop, each franchisee has their own landing page.

Warren Ballantyne, Gutter Vac managing director said the brand has now made the move to Facebook to target new franchisees.

“The way people look for opportunities is different now, With Facebook we can really drill down into who we want to target, and that’s what we like about it,” he says.

The gutter cleaning business requires a certain type of franchisee, which Ballantyne says he is better able to filter online.

“We want to find a person who is willing to work outdoors, that understands the lifestyle implications that the business presents.”

Unlike other franchises, Gutter Vac does not have a marketing levy, meaning that all marketing is done at the franchisee’s direction.

“Every franchisee has their own landing page, their own identity, so they are encouraged to do their own promotions, write their own blogs and create their own content, which could be testimonials from their clients. It’s quite independent, despite still being under the Gutter Vac banner.

To help new entrants get started however, the brand provides an immersive course with a local marketing agency, encouraging them to take on a package with the business later on.

“Most people think that they can do it themselves, particularly at first, but as their business get busier, social media and marketing can be the first thing to drop off.

Franchisees learn about social media

It’s something you really have to be geared for and understand.”

The Gutter Vac managing director and founder says that often manual labour businesses are the last to adopt new technology updates, but in today’s social world, you can’t afford to be slow on the uptake.

“I’m 65 now and if I can do it, then that shows you how much things have changed.

We started this business with no internet, who could conceive that we would have what we have now.”

PROMOTIONS While trailblazers like Wendy’s in the US have opened the sector’s eyes to the more creative approach to social media, some Australian franchise chains are taking it one step further.

Innovative marketing and advertising promotions have allowed brands to cut through the noise, gaining valuable market share and brand awareness.

Take for instance, Aussie dessert franchise, Gelatissimo.

Back in August, the franchise chain posted a job ad online through contractor-based platform Airtasker, seeking Australia’s biggest gelato fan. The winning applicant was then hired as Gelatissimo’s official ‘Gelato Taste Tester’ for one half day of paid work, taking home a cool $500.

Not a bad day’s wage for an afternoon eating ice cream; or at least that’s what the public thought.

“We had more than 50 applications in less than seven hours,” Zoe Gorbunow, Gelatissimo marketing director reveals.

“Hundreds of gelato fans were willing to loan their taste buds for half a day and with all the incredible applications that came in, we had a tough task selecting the right person.”

The initial Facebook post generated over 500 impressions for Gelatissimo, boosting the brand’s social status and consumer appeal, which Gorbunow says was precisely her goal.

“We use social media to connect with our customers and create a two-way conversation through polls, questions on platforms like Instagram stories, Facebook Live and commenting on user generated content. Social media brings our brand to life and we love to be part of our customer’s digital lives outside of our stores.”

It’s something that the chain has committed to wholly for the past few years, targeting calendar events and family initiatives to help spread the word, even getting the family pooch in on the action.

Earlier this year, Gelatissimo released a network-first, unveiling ‘Paw-some Peanut Butter’, a smooth, vegan gelato that was specially formulated for both canine and human stomachs.

“It’s really important to us that we’re always catering to the whole family, and we all know that the family dog is just as much a part of that as anyone,” Gelatissimo CEO Filipe Barbosa said at the time.

“We did a lot of research to make sure that this flavour is 100 percent dog and human approved so our customers can share a bit of fun and deliciousness with everyone – even their furry family members.”

The four-legged foodies were a hit

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If you aren’t leading the race online or being creative, you’re falling behind - Pete Haselhurst, managing director Milky Lane online, giving not just Gelatissimo the confidence to launch initiatives like the Airtasker promotion, but encouraging other franchise chains to follow suit. Not long after the gelato chain announced its new taste-testing position, pizza giant Domino’s turned to LinkedIn with a similar opportunity.

The title of ‘Chief Garlic Bread Taste Tester’ was created to work alongside Domino’s culinary innovation and development chef Michael Treacy, granted exclusive access to top-secret products at Domino’s HQ. “We’re looking for someone who is pro-carb, has a minimum of five years’ experience in garlic bread consumption and understands the delicate ‘crunch to softness’ ratio,” Treacy joked at the time.

While you could argue the new taste-testing promotions are a case of marketing gone mad, in this world of social status, the quest to go viral is the ultimate goal. In fact, some chains are even skipping the queue and going straight to the top.

INFLUENCERS In today’s era of transparent social status, achieving valuable reach is the goal for most businesses. Some brands have been able to piggyback the followings of successful celebrities and influencers to leverage interest in their chosen markets.

The notion of a celebrity endorsement is by no means a new idea, however, the parameters of how an influencer is defined and ultimately remunerated has evolved significantly through social media.

Ella Baché is one franchise chain that has more than dipped its toes into the influencer model, thanks primarily to its focus on the millennial market.

“Social media and digital marketing have now become our main marketing focus.

We work with influencers on a monthly

basis to generate ongoing content,” Katherine Eleyce, Ella Baché communications and content manager explains.

“Our beauty therapists are our biggest influencers, so we are always encouraging them to post their favourite products or skin results on social media.”

Additionally, the heritage Australian skincare business provides franchisees with an extensive social media toolkit to help boost their online presence.

“For on-going training, our marketing team supply our franchisees with a monthly ‘Social Media Toolkit’ which includes a “how-to” guide for Instagram stories. With so many brands on social media, you need to know who you are, what makes your offering unique and why your customers will love what your offering.”

Milky Lane’s Pete Haselhurst agrees, revealing that partnerships with influencers are explored only when there is a synergy of interest.

From international rappers such as Post Malone, to hit machine Ed Sheeran, the Aussie business’ Instagram reads look a who’s who of the global entertainment industry, and it’s not by accident.

“Working with influencers is something we strongly believe in - 2019 is a digital space where if you aren’t leading the race online or being creative, you’re falling behind.”

The burger business works on contra deals with established content creators and celebrities from across Australia and the globe, helping the business to keep costs down while boosting interest.

“The product cost to us is generally quite small and we can reach up to 1 million people around the world and have noticed that this converts to sales for us, in store.

We have guidelines that we send to each person before we work together for the first time and we maintain these relationships throughout the year. It’s a coexistence that works well for us both.”

INTERNATIONAL GROWTH As franchise chains continue to expand and develop, the role of social media can take a far less localised approach, but that isn’t to say its value drops.

For Aussie boutique fitness chain Studio Pilates, social media has opened channels of communication that have driven success across continents.

The chain is in the midst of a bumper US expansion, where the markets are similar in nature, however, the new growth coincides with a far more challenging initiative.

In 2018, Studio Pilates launched its

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inaugural venture into the Chinese market, opening a studio in the bustling hub of Zhujiang New Town, Guangzhou.

“The Chinese market is devouring our product; they are possessed by it,” Studio Pilates founder and CEO, Jade Winter says.

Where Western markets are traditionally uniform in their social media use, the Chinese market presents a whole new beast.

Winter says using communications platform WeChat has allowed the brand to break into the domestic Chinese market, becoming ingrained in the local fitness scene.

“We have successfully tapped into the local Chinese-speaking market, rather than just servicing the expat community and bilingual Chinese. This has been a key factor in our success in this space and it now opens up potential across the entire country. That’s a lot of potential.”

Despite having a network that sprawls across continents, Winter reveals that centralisation is the key to the brand’s success online.

“We have centralised social media due to the cost, time and the expertise required to do it well,” he says.

“With a centralised approach, we can keep our brand message hyper focused.

Having one go-to location on each social media platform prevents audience fragmentation. Centralisation gives us one large audience, one clear voice with a much smaller team managing the content creation, the distribution and the advertising management.”

It’s a challenging task curating content across platforms and countries, but Winter says in today’s digital world a dedicated approach to social is critical.

“Many consumers want to ‘do it for the gram’ these days and so if your business isn’t ‘Instagrammable’, then you may struggle to get attention and be competitive.”

FINAL THOUGHTS Regardless of how a brand uses social media, whether it be playful banter similar to Wendy’s or recruitment initiatives like Gutter-Vac, online platforms can no longer be an afterthought.

Getting it right is an art, and for Haselhurst, the advice is simple: give people what they want.

“Understand that social media is a very important business tool, understand the value of doing it the right way and don’t save on creating good content. Learn what it is that your audience want and build on that. Don’t be afraid of doing something different and own any mistakes because that makes you human.” n

LEADERSHIP

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A DAY IN THE LIFE OF

Nick Patrick

How does Soul Origin’s national manager, leasing and development, help franchisees do better business?

What are your responsibilities?

I am responsible for overseeing the leasing and development functions for Soul Origin. This includes scouting new sites and feasibility screening, negotiating new leases and lease renewals, as well as managing our team responsible for new store design, new store fitouts, documentation review and lease execution. I also handle general property and network growth strategies.

How often do you interact with franchisees?

On a daily basis, even though my primary focus is not franchise recruitment, which is run as a separate although interdependent function to property at Soul Origin.

I find that because franchisees are at the forefront of the business, they are able to provide a wealth of information that is relevant to leasing and property development.

We need to ensure that we are continually learning from, and adapting, the business decisions we make. Especially when a franchisee’s success can be so heavily dependent upon the property decisions made in collaboration with our franchise partners.

It is therefore crucial that I am communicating regularly with our franchise partners not only to understand their needs but also to learn from their experiences of opening new stores in new and different markets.

How do you measure your success?

Being in a sales driven retail business success is fairly easy for us to measure. With the key performance indicators for our team being centred around new store sales performance and occupancy cost targets.

How do you manage your day?

I typically start by organising myself for the day. Looking at upcoming meetings I need to prepare for, setting a plan for the day and responding to any emails that have come in overnight.

I spend a lot of time on the road and interstate looking at new sites so I rely heavily on my diary to organise my day and the week in advance, to make sure I accomplish everything the business needs on time.

Briefly describe a typical day in the office – is there a pattern to it?

My days can be fairly varied given the amount of travel the role requires. Though a typical day will usually involve meeting with other members of the development team to manage work in progress, spending some time on the road looking at new

store opportunities or meeting with landlords, and using the afternoons for admin and replying to emails. However, this is of course all interchangeable and every day is different.

How often are you travelling and why?

Travel requirements ebb and flow. A typical month will generally average two interstate trips. However, the frequency of travel is really dependant on what opportunities we are looking at, where we have strong franchise interest and what opportunities are currently available in the market. Some weeks may see two or three trips while sometimes I may not travel for three or four weeks.

What are the biggest challenges in this job?

The biggest challenge of this job is managing timeframes.

Everything we do in property needs a substantial lead time – from site identification, new store design, lease negotiation, and construction through to franchisee training, review of legal documentation and franchisee cooling off periods.

If the process and timeframes are not well managed, then costly delays can occur. Some stores we are opening now started with landlord discussions that began more than 12 months ago.

What do you enjoy most about this role?

I love working in the dynamic environment of food retail.

Property and development is just one cog in a very large machine which needs to work in unison to effectively deliver business objectives. Working for a retailer gives you exposure to a broad range of business functions including new product development, operations, marketing, finance, administration and IT. Each of these represents an opportunity to learn and develop as a property, franchising and retail professional.

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

My biggest motivator is seeing new stores open and trade successfully. I get great satisfaction reaching the end of the new store opening process, which often started more than 12 months earlier, and seeing a store trade strongly from day one.

What’s the best thing about working at Soul Origin?

For me it is the team that I work with – though I love the products we sell! We have great people at Soul Origin and extremely supportive and passionate founders who make it easy to get out of bed and come to work with each day. n

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FOCUS

SPECIAL FOCUS: Bag a business for

less than $100K!

Grab a brilliant opportunity to invest in your own future and spend within your budget. Check out these cost-conscious franchise brands.

Y

ou’ve got savings and want to commit to a solid business model, but you don’t have a six-figure spend in mind. Well, you’ve come to the right place because we are shining a spotlight on those fantastic franchises which won’t break the bank.

The brands showcased here all have an upfront investment of under $100,000. Of course, there will be other costs to include as the business develops, and one crucial aspect of starting up a successful franchise operation is access to sufficient working capital.

In some cases the $100,000 total doesn’t include the working capital suggested by the franchisor as essential to effectively run the business.

When you review the details of each brand featured here it’s very important to remember additional costs involved in setting up the business, and to take account of the working capital demands.

Shortcuts – whether financial, or in legal or accounting advice – really don’t pay off in the long term.

Inside Franchise Business encourages all prospective franchise buyers to invest in independent legal and financial advice, and to take advantage of every opportunity given by the regulatory guide, the Franchising Code of Conduct, to investigate the franchise by contacting franchisees past and present.

to work hard and recoup a respectable return on investment (ROI) with affordable franchises.

TAKE TIME AND GET IT RIGHT Commonly, franchisors are looking for franchise buyers who have a high level of commitment, who are ambitious, who can follow the rules and who will engage positively with the franchise network.

They often recruit for attitude not aptitude, so changing careers is easy if you’ve got the right mindset.

Of course, it’s crucial to get the best training both before you start your business, and as you progress.

You need to understand the ways in which franchisors will support you, and what will be the ongoing costs of this support (ongoing franchise fees, marketing fees).

Above all you will need to do serious number crunching to ensure that what’s on offer is financially viable.

An investment into business at any level is both a serious commitment and a fantastic opportunity to develop an exciting new career as a business owner, so it’s worth taking the time to review the options and get it right.

Over the next few pages Inside Franchise Business reveals some of the franchise basics that you’ll need to know before finding the perfect business for your needs. n

THE CHOICE IS ALL YOURS If you’ve been researching franchising for a while, you’ll probably have a fair idea of the types of businesses available, and what might suit your needs. Certainly there is a plethora of choice at every price level of Australian franchise opportunities.

Cost does of course place some restrictions on choice – for instance, food and beverage businesses are rare commodities at less than $100,000 investment.

However, the increasing diversity among franchise brands is well reflected at the $50,000 to $100,000 price bracket. Think business services, home services, leisure events, construction and renovations, tutoring, telecoms, fitness, transport and logistics … even beverages.

And while the investment level might be one zero or two short of some of the high-flying, high-profile franchise operations there are opportunities NOV/JAN 2019-2020 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

APPLIANCE TAGGING SERVICES Appliance Tagging Services (test and tag) is an Australia-wide specialist business providing electrical safety assessments, as well as testing and reporting management systems.

ONGOING SUPPORT Ratio of franchisees to area manager

n/a – ATS's model has a national support office with 25 staff providing technical, operational, IT, finance and admin support to all franchisees

Call centre for leads

Yes

Mentoring groups/FAC

Yes

FRANCHISE BASICS Total investment cost

$57,000

Ongoing royalty fee

Percentage varies from direct clients to managed clients

Marketing levy

No

Term and renewal options

5 years + 5-year renewal

MARKETING SUPPORT

Number of franchise units

54

National brand marketing

Yes

If site-based, is there help with location and leasing?

n/a

Social media channels

Yes

If territory-based, are these exclusive territories?

Non-exclusive

SEO

Yes

Loyalty program/app

Yes

Number of multi-units

0

Purchasing agreements

No

Proprietary IT/software

Yes

Proprietary products

No

TRAINING/PERFORMANCE On-the-job/technical training (no. of hours)

48

Business training (no. of hours)

32

Benchmarking

No

LISTEN TO YOUR BODY

A group personal training business which specialises in individual training sessions for up to 15 members in a class. Each studio operates between 50-80 sessions weekly.

FRANCHISE BASICS Total investment cost

ONGOING SUPPORT $80,000–$100,000 + working capital

Ongoing royalty fee

8%

Marketing levy

No

Term and renewal options

5 years + 5-year renewal

Number of franchise units

13

If-site based, is there help with location and leasing?

Yes

If territory-based, are these exclusive territories?

Yes

Number of multi-units

0

Purchasing agreements

No

Proprietary IT/software

OneFitStop Master Licence

Proprietary products

No

Ratio of franchisees to area manager

13:1.5

Call centre for leads

Website

Mentoring groups/FAC

No

MARKETING SUPPORT National brand marketing

Yes

Social media channels

Yes

SEO

No

Loyalty program/app

No

TRAINING/PERFORMANCE On-the-job/technical training (no. of hours)

0

Business training (no. of hours)

40

Benchmarking

Yes – WIP with update

PINOT & PICASSO Australia’s first paint and sip franchise, Pinot & Picasso provides a premier entertainment experience. It’s a BYO art studio-based business where clients can release their inner artist, with a glass in hand.

FRANCHISE BASICS

ONGOING SUPPORT

Total investment cost

From $88,000

Ratio of franchisees to area manager

10:1

Ongoing royalty fee

8% weekly

Call centre for leads

No

Marketing levy

No

Mentoring groups/FAC

Yes

Term and renewal options

5 years; renewal options available

Number of franchise units

10

MARKETING SUPPORT

If site-based, is there help with location and leasing?

Yes

National brand marketing

Yes

Social media channels

Yes

If territory-based, are these exclusive territories?

Yes

SEO

Yes

Number of multi-units

2

Loyalty program/app

In process of rolling out

Purchasing agreements

Yes

Proprietary IT/software

Yes

Proprietary products

0

TRAINING/PERFORMANCE On-the-job/technical training (no. of hours)

8

Business training (no. of hours)

24

Benchmarking

Yes

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FOCUS

FOCALPOINT INTERNATIONAL

A world leader in professional business coaching and training using programs developed by business expert Brian Tracy over 35 years of research. The brand started in 1986.

FRANCHISE BASICS

ONGOING SUPPORT

Total investment cost

$89,950

Ratio of franchisees to area manager

15:1

Ongoing royalty fee

$11,000 in year 1: $300 per month for first three months, rising over the first 12 months to $1200 per month and ultimately $1800. Fees are capped with total of $21,600 second year and ongoing.

Call centre for leads

No

Mentoring groups/FAC

Yes

Marketing levy

No

National brand marketing

Yes

Term and renewal options

5 years + 5-year renewal

Social media channels

Yes

Number of franchise units

17

SEO

Yes

If site-based, is there help with location and leasing?

n/a

Loyalty program/app

If territory-based, are these exclusive territories?

Non-exclusive

Number of multi-units

n/a

On-the-job/technical training (no. of hours)

0

Purchasing agreements

Yes

Business training (no. of hours)

195 hours year 1

Proprietary IT/software

Yes

Benchmarking

Yes

Proprietary products

Yes

MARKETING SUPPORT

TRAINING/PERFORMANCE

JIM’S POOL CARE MOBILE POOL SHOPS

Mobile pool care services including cleaning, maintenance, equipment and pool supplies for residential, body corporate or commercial pools. Sales, management and trade qualifications are a bonus but not mandatory.

FRANCHISE BASICS

ONGOING SUPPORT

Total investment cost

$69,000 plus vehicle

Ratio of franchisees to area manager

Average of 10:1

Ongoing royalty fee

$617.65 flat rate (with discount)

Call centre for leads

Yes

Marketing levy

$231.60

Mentoring groups/FAC

Term and renewal options

20 years

Regular team meetings and conference

Number of franchise units

105

If site-based, is there help with location and leasing?

n/a

MARKETING SUPPORT National brand marketing

Yes Yes

If territory-based, are these exclusive territories?

Exclusive, but can request work and take referral work anywhere

Social media channels SEO

Yes

Number of multi-units

2

Loyalty program/app

No

Purchasing agreements

No

Proprietary IT/software

Yes

TRAINING/PERFORMANCE

Proprietary products

n/a

On-the-job/technical training (no. of hours)

15 days

Business training (no. of hours)

5 days

Benchmarking

No

NOV/JAN 2019-2020 | 74 | WWW.FRANCHISEBUSINESS.COM.AU

Apply your business experience Franchise Business Partner opportunities available

Paul & Michelle

Franchise Partners, The Pines Elanora Background as General Manager of Operations & Human Resources Manager

For a confidential discussion, phone 0431 649 450 or submit your enquiry at shingleinn.com/franchising/franchising-eoi

FOCUS

XPRESSO DELIGHT

Xpresso Delight provides a semi-passive income delivering coffee systems and premium coffee to high-end corporates in Australia, New Zealand and the US. Its 5 star concierge coffee service aims to replicate a cafe style experience in the workplace.

ONGOING SUPPORT

FRANCHISE BASICS Total investment cost

$49,500

Ratio of franchisees to area manager

15:1

Ongoing royalty fee

$125 per month

Call centre for leads

Yes

Marketing levy

No

Mentoring groups/FAC

Yes

Term and renewal options

5 years + 5-year renewal

Number of franchise units

72

MARKETING SUPPORT

If site-based, is there help with location and leasing?

n/a

National brand marketing

Yes

Social media channels

Yes

If territory-based, are these exclusive territories?

State-based

SEO

No

Number of multi-units

5

Loyalty program/app

n/a

Purchasing agreements

Yes

Proprietary IT/software

Yes

Proprietary products

Yes

TRAINING/PERFORMANCE On-the-job/technical training (no. of hours)

2 weeks

Business training (no. of hours)

2 weeks

Benchmarking

Yes

TUTOR DOCTOR

This global business delivers one-on-one supplementary education to students and adults through in-home tutoring. Franchisees manage professional tutors and work on the business.

FRANCHISE BASICS

ONGOING SUPPORT

Total investment cost

$70,000

Ongoing royalty fee

8%

Marketing levy

2%

Term and renewal options

10 years; renewal options available

Number of franchise units

668

If site-based, is there help with location and leasing?

n/a

If territory-based, are these exclusive territories?

Territories formed by protected postal codes averaging a population of 100,000 including 20,000 school-age students

Ratio of franchisees to area manager

Multiple levels of support, from launch support specialist to dedicated business coaches, marketing specialist etc.

Call centre for leads

No

Mentoring groups/FAC

Yes

MARKETING SUPPORT National brand marketing

Yes

Social media channels

Yes

SEO

Yes

Loyalty program/app

No

Number of multi-units

142

Purchasing agreements

No

TRAINING/PERFORMANCE

Proprietary IT/software

Yes; our BANG system is designed to optimise franchisees' business operations

On-the-job/technical training (no. of hours)

6 weeks pre-training, 5 days in-class training

Business training (no. of hours)

Proprietary products

X-Skills Book; designed to teach executive skills during tutoring sessions

Launch support specialist working with our franchisees during the first year of operations, including two on-site visits

Benchmarking

No

10 QUESTIONS TO CONSIDER

When investigating the options you’ll need to consider the issues that any franchisee has to reflect on. Here are 10 starting questions that can help frame your search: 1. How much can you afford to invest?

2. How much time do you want to spend working in and on the business?

3. Who will work in this business?

4. Will you need some external income to start with?

5. Will you choose a new occupation or continue in your current field?

6. Will you want to extend your business to a second or third operation?

7. Are you happy to join a young brand with little franchise experience?

8. Are you seeking an established brand with a high level of recognition and support?

9. What kind of business support will you need most?

10. What is your exit plan?

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INDUSTRY SPOTLIGHT

COOKING WITH

culture While burgers and pizzas often steal the spotlight, Aussies can’t get enough of the flavours of the East.

By Nick Hall

T

he nation’s fascination with Asian cuisine has come a long way from the corner store Chinese takeaway. A societal shift has brought new flavours to the mix, breaking down barriers and giving way to a booming multicultural marketplace.

Australia wasn’t always a melting pot of cultural cuisines, however. In fact, it took until the gold rush of the 1800s before the land Down Under got its first taste of true Asian flavour.

Chinese prospectors who had ventured to Australia to find their find their fortune at the bottom of a gold pan wound up finding it at the end of a kitchen pan. A number of immigrants who yearned for the flavours of home found a growing number of Australians shared their interest.

The result saw a steady number of

Chinese restaurants spring up across prospecting towns. However, once the gold rush was over many Chinese expats returned home, leaving Australia’s love of Asian cuisine unsatisfied.

Flash forward to modern times and you’d be hard-pressed to find a suburban street corner that didn’t feature a Chinese, Vietnamese or, in more recent times, Japanese restaurant, albeit often slanted in a way that appeals to a predominantly western audience.

And for good reason. According to market research firm Roy Morgan, three of the four most popular cuisines favoured by Australian consumers are of Asian heritage.

Chinese fare was considered the flavour of choice, with over 14 million Aussies aged 14 and over indicating a preference for the food, followed by Thai food in third place and Indian rounding out the top four.

However, despite the strong results,

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the data also revealed an interesting generational trend. Older Australians are more likely to prefer Chinese cuisine than younger Australians, with baby boomers and Gen X presenting the strongest demographic.

Perhaps the influx of migrants to Australia in the 1980s had a part to play in the older generations’ love of westernised Chinese food, but as time wears on, a more adventurous Australian youth consumer is bringing South-East Asian flavours to boil.

THE STREET For years, Australian quick service restaurants (QSR) have attempted to bridge the gap between Asian-style hawker street food and westernised culinary demands, often with little success. It wasn’t until East-Asian inspired chain Noodle Box

launched on Melbourne’s iconic Chapel Street in 1996 that someone got the combination right.

With a mix of traditional wok-fired flavours and tried-and-tested favourites, the QSR has grown from that inaugural Melbourne site to more than 80 across the globe.

“Noodle Box serves almost 3 million dishes every year and has proudly been doing so for over 22 years, but like any dining outlet that comes with its own set of challenges,” says Michael McNamara, network development manager for Noodle Box’s parent company Concept Eight.

“We strive to keep up with evolving consumer behaviour and to constantly be at the forefront of innovation, but our number one priority is ensuring each and every customer has a consistent and great food experience, which can sometimes vary. Our food is at the heart of everything

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we do as a business.”

McNamara says that the breadth of options in the market has formed an immersive dining scene that encompasses all aspects of Asian food culture.

“Both Korean and Vietnamese cuisines are highly established in the marketplace, but have maintained the hype and buzz that continues to rise in popularity. At Noodle Box, we have worked with the best wok chefs in the business to bring new life to traditional recipes and satisfy a broad range of tastes.”

Over the past 18 months, the brand has continued to develop its range of vegan and plant-based options, while at the same time rolling out a series of new look and feel restaurants.

The new smaller format stores were introduced to help prospective franchisees get into the market with a reduced entry rate increasing partner profitability.

INDUSTRY SPOTLIGHT

“Smaller format restaurants have been a great initiative for our business model,” McNamara says. “We are able to deliver the same great menu from a smaller restaurant, which gives us the opportunity to enter real estate that we may not have considered in the past.”

With store numbers set to soar as a result, McNamara believes Noodle Box is in for a monster growth period, with plans to open 10 new stores every year. The expansion will also mark Noodle Box’s first foray into NSW, a state with a rich Asian food history.

THE SWEET While street market-inspired chains have established themselves as key players in the Australian dining scene, a number of new Asian flavours are also making their presence felt.

Take Malaysian sweet bun franchise Papparoti, for example. Fresh baked on-premise every day, the coffee-coated buns are a hit in China, Vietnam and Canada, and have finally made their way Down Under.

Papparoti’s subdued success in Australia comes off the back of growing demand on the domestic market for other sweet Asian desserts and treats. Wander into a food court anywhere in Australia and you’re bound to see a bubble tea brand with a line sprawling out the door.

“We’ve seen a growing trend of western diners enjoying adventurous foods and tastes like Japanese ramen, Taiwan bubble tea and China hotpot. We believe it is the best time for any potential franchise to enter the Asian dining scene,” Papparoti ANZ business development manager Adrian Foo says.

Despite only having three retail outlets in Australia, Papparoti isn’t exactly a new entrant. The chain has been operating in Australia for six years, demonstrating a level of longevity that Foo says is critical to the brand’s ongoing success.

With a new outlet set for Perth, Papparoti’s first venture into Western Australia, Foo reveals the slow and steady approach will garner the strongest return, for both the business and its franchisees.

“Our target is to open two outlets in all the major cities of Australia and New Zealand in the next two years.”

Targeting areas with a high Asian population has also proven to be a winning formula for the chain; however that may be about to change.

“Brand recognition is a big thing, and

Noodlebox

Monkey King Thai

as a result Papparoti Australia has been present in high Asian population areas,” Foo explains. “We aim to rebrand and grow its appeal beyond the Asian consumers, however. We do have plans to open more outlets in western areas.”

While Papparoti has made its mark targeting the predominantly Asian clientele in Australia, another franchise is tackling the Aussie landscape in a completely different way.

THE SIT-DOWN “We really appreciate diversity; it helps us grow.” That’s the message Monkey King Thai founder and CEO Top K. Jitrakthaipakdee has instilled from day one at his Sydney restaurant.

Now with outlets across Sydney, Shanghai and one soon to open in Melbourne, the former career corporate

turned Thai food franchisor has reason to smile.

‘It’s funny,” he says. “I came to Australia in 2000 to study through home-stay and on the first day, my host family greeted me with a green curry, and it was so good!

That really opened my eyes to how diverse the Australian dining scene is.

There really isn’t a dominant cuisine, and the Australian public are really open to eating new things.”

After completing his studies in Australia, Top returned overseas to commence life in the corporate world. His journey took him to the heights of APAC leader for global information technology business IBM in China, but at the request of his brother, Top took the step out of his comfort zone and into the kitchen.

“My brother is 12 years younger than me and he always wanted to be an entrepreneur. Throughout our childhood, we saw how my grandmother cooked and it was hard work, but I believed that with my business and management experience, I could put together a business case that offered lifestyle,” he says.

That was more than five years ago, and to this day Top still employs the same management processes he developed while in corporate management positions.

“Just like when I was at IBM, all the managers meet on Tuesday, we review the dashboard, assess KPIs and chart how we are travelling on our career pipeline objectives. Many of the workers we have are students or on a temporary visa, but we always put the option forward, that if they work hard we’d be happy to sponsor them.”

While Monkey King Thai may not be a household name just yet, the casual dining restaurant chain is slowly gathering

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INDUSTRY SPOTLIGHT

Gavan Meadows, general manager, sales and commercial partnership for national franchise Sushi Sushi

international appeal. The brand recently launched its inaugural Chinese location in bustling downtown Shanghai.

“At the moment, Shanghai is one of the hottest cities in the world,” Top explains.

“Transportation is so cool, the population is huge, there is a lot of disposable income and, more than anything, Shanghai residents value eating.”

The expansion has been enormously successful. Taking the company’s refined Australian system and replicating it in China has allowed Monkey King Thai to break into the landscape with ease. Top reveals that after only four weeks, the outlet was the highest rated restaurant on the Chinese version of TripAdvisor.

He puts the Shanghai success down to the foundations he laid here in Australia.

“We’ve always been really selective; we believe in a strong foundation,” Top explains.

“I see a lot of new food operators who judge success by the number of stores – we don’t. Instead we think long-term, we are looking for someone with the same DNA as us.”

Culture fit is key for Monkey King Thai.

Top reveals that many of the chain’s franchisees aren’t experienced in the hospitality industry at all.

“Different cultural angles are what we love. I can teach anyone to cook in two to four weeks, and I can do this because we segment roles. In many restaurants you need to know everything, but at Monkey King Thai you train on a specific skill. We believe that the system runs people, but people run the business.”

THE SERENE Far from the high-octane wok-fired environment of Monkey King Thai, however, lies a far more dulcet decorum.

In its native Japan, sushi is held in the same regard as high art, with masters spending a lifetime perfecting their craft. Much like the Japanese culture itself, sushi making is an understated yet wholly refined process that has become

intertwined with the Australian culinary melting pot.

While other Asian cuisines may cater to a more adventurous hawker-style offering, sushi chains have become an easily accessible entry point for the more cautious consumer.

“We have noticed that our customers are wanting innovation; however, they don’t want unusual flavours and instead would prefer to try something that looks exciting yet the flavours are immediately relatable,” Gavan Meadows, general manager, sales and commercial partnership for national franchise Sushi Sushi, explains.

“Australia has a very diverse pallet and we are very creative when it comes to food innovation. First and foremost, the product has to look enticing. Customers don’t want to waste their time and money on a product they are uncertain about, so the product mix has to be compelling and understandable.”

It’s an ethos that Sushi Sushi has been able to explore over many years, introducing a number of western-focused offerings that have generated strong sales for the chain’s franchise partners.

Meadows reveals that despite its prevalence in Japanese culture, some Aussie consumers still have to overcome the fear of seaweed.

“Through our research, we have discovered that 60 per cent of Australian consumers do not eat hand rolls as they do not like nori (seaweed sheet), so we had to create a range without them,” he jokes.

Unlike Noodle Box and Monkey King Thai, Sushi Sushi has built its network through convenience and speed, allowing the brand to operate in high foot-traffic areas such as food courts and kiosks.

However, that presents a new challenge in itself.

“The marketplace is getting much more challenging as shopping centres continue to expand in footprint and add more food retailers for customers to enjoy, and this means that as retailers we have to innovate,” Meadows says.

“The pace of innovation has definitely increased over the years and we are

making larger, more visible changes. Costs are continually growing for retailers, so we also have to find new ways to create value for our customers, rather than simply increasing prices to cover the higher cost of doing business.”

As a result, Sushi Sushi is revamping its strategy, increasing new models and menu items that appeal to a wider audience.

“We are expanding our offer into dining precincts as we are now moving into restaurants with table service such as in Bondi Junction in NSW. We are also expanding into restaurants with sushi trains which our first store will open in Canberra Central later this year.”

Meadows reveals that regardless of site format or selection, the process remains the same. Getting it right is essential to the profitability of the brand’s franchisees.

“Every proposed Sushi Sushi location must move through our business modelling process. There are several key competencies each location must deliver. If these competencies aren’t met, we’ll pass on it.”

Even with 130 locations across the country, Sushi Sushi isn’t afraid to mix up the formula, so long as it is backed up with evidence. It all comes down to demographics, Meadows reveals.

“We are really hoping that we are going to excite our current fans and introduce new adoring customers with a complete brand refresh focusing on all touchpoints and by creating places that people want to stay,” he says.

Like all fast-food and casual dining offerings, the Asian QSR scene is experiencing a period of strong change. A wealth of new entrants to the country, new players to the market and new flavours to the palette are changing the way consumers interact with the franchise brands they’ve come to love.

“The Asian category is very dynamic, fresh and full of flavour and each angle is being pushed,” Sushi Sushi’s Gavan Meadows explains.

“Only invest in a franchise business that fits and is a business, brand, product that you love and truly believe in.” n

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INDUSTRY SPOTLIGHT

A LASER APPROACH TO Cutting edge techniques and aesthetic principles shape laser clinic performance.

By Sarah Stowe

C

osmetic injectables, laser hair removal and skin treatments are standard fare at medical aesthetic clinics, and are increasingly popular.

Your local beauty salon is likely to be a one-off. In fact, it’s probably one of several in your town or suburb. And while there are highly recognisable franchised beauty salon brands around the country, the independents are far and away the significant group. However, the prevalence of indie salons doesn’t equal the power of the franchise brand. Independents have a tough fight on their hands.

The Personal Services IRC’s 2018 Skills Forecast outlines the competitive pressures for businesses in the beauty sector, suggesting they are much harder for the independent salon to counter than a franchised outlet. It points out that “franchised businesses are able to provide low-cost hair and skin treatments through the use of intense pulsed light and laser equipment and by providing special offers on deal sites that aggregate these offers”.

The Skills Forecast indicates three elements are driving increased demand from both female and male customers: • population growth • rising incomes • body consciousness.

On the one hand beauty salons choose to focus on niche services rather than offer a broad selection of treatments. At the same time there is a narrowing of the distinction between medical practitioners and cosmeceutical beauty therapists. This reflects the growing trend for invasive, results-driven treatments.

Franchised laser clinics have shown their capabilities, harnessing technological advances to deliver promised results and meet customer expectations on safety and care.

The Skills Forecast also points to the importance of social media as an essential, given customers’ tendency to research treatments, and an ideal way for clinics

to promote their businesses and handle complaints and feedback.

What do franchisors say?

SILK’s Gita Coorey agrees the medical-aesthetics industry is booming, with clients increasingly knowledgeable about treatments.

“Our clients regularly express that their health, self-confidence, personal grooming and, in some cases, vanity are very important to them in this digital era,” she says.

“Clients are increasingly time poor and seek corrective skin treatments that are results driven with minimal down time.

We have seen a major shift from clients requesting occasional long, fluffy, feelgood skin treatments to regular lunchtime skin health maintenance services,” she reveals.

Coorey points out that it’s common for clients to research their skin concerns, treatment options and prices long before booking in a consultation with an expert.

“We need to be the ‘go to’ resource for our clients. There are always new aesthetic services available on the market, however it’s important to ensure that as a practitioner you research the effectiveness of a treatment before investing.”

Ongoing education and an understanding of techniques and treatments are crucial to providing a personalised service that achieves great results, she suggests.

Sarah Tehrani, Evolution marketing manager, points out that differentiation in the consumer marketplace is crucial.

Tehrani says franchisees can be confident in the brand name.

“The reputable brand of Evolution has been operating for over 15 years,” she says.

“We offer advanced training to all our therapists to ensure our clients are informed of all the benefits and safety precautions of laser hair removal and to achieve maximum results by gaining the trust of our clients and gaining a long-term relationship.

“Our aim is to ensure we deliver client satisfaction to achieve maximum results

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INDUSTRY SPOTLIGHT

for our clients,” she says.

Over the next 12 to 24 months Evolution plans to open three to four new locations a year.

Evolution has some clear points of differentiation to attract franchise buyers, Tehrani points out: no upfront franchise fees, training fees or shop-fit management fees, for instance. The laser clinic also passes on rebates from manufacturers, suppliers and shopping centres.

At SILK Laser Clinics, which has more than 50 stores across the country, franchisees can be business investors or medically-qualified dermal therapists or cosmetic nurse injectors.

At its heart there is a focused executive support team, backed up with group buying power.

“We consider our franchisees as partners. We work together as a team, problem solve and celebrate successes together,” says Coorey. “We are client driven. We listen, we learn and we implement.”

The clinic is focused on careful and strategic signing of franchisees, rather than a headlong rush into multiple locations, she says.

“Franchise selection is key for our business, and we want to ensure that we work with the right franchise partners that fit our business model. We’re particular with who we introduce into the SILK family and our site selections but provide robust support to overcome hurdles that may arise.”

REPORTING ON THE INDUSTRY Analysis firm IBISWorld says the limits set by weak economic growth around Australia have been balanced by a consumer willingness to spend on premium services, if they can. Such services include laser hair removal, microdermabrasion and chemical peels.

Tom Youl, author of the Hairdressing and Beauty Services in Australia Report (August 2019) writes, “The permanent hair removal services segment is forecast to increase as a share of industry revenue over the next five years. Both men and women are anticipated to drive growth in this segment. Growth in male grooming speciality salons will likely support growth from the male demographic.”

There’s also an increased demand in the age group 35 to 54.

But he does point out that two elements may have an impact on the level of growth: a rise in DIY laser hair removal devices, and an expected tightening up of of regulations for laser and intense pulsed light (IPL) treatments. n

We need to be the ‘go to’ resource for our clients. There are always new aesthetic services available on the market, however it’s important to ensure that as a practitioner you research the effectiveness of a treatment before investing.

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INDUSTRY SPOTLIGHT

SL ICE U

When it comes to fastfood favourites, it’s hard to go past pizza.

By Nick Hall

F

rom traditional Neapolitan to deep-dish Chicago to squarebased Sicilian, pizza has proven to be Italy’s greatest gift to the franchise sector. And while the cuisine itself has roots that trace back over 1000 years, here in Australia the pizza sector is just heating up.

While the fast-food industry has seen its fair share of fad offerings, few have stayed the test of time quite like the nation’s pizza chains. However, it hasn’t come without constant change.

Over the last five years, customer preferences have evolved significantly,

E F I P YOUR L

splitting the sector in half.

A developing gourmet pizza market, characterised by healthier options and higher price points, has not only worked to solidify the offering as a cuisine for all occasions, but helped to bolster the appeal of the sector as a whole.

In its Pizza Restaurants and Takeaway in Australia report, market research firm IBISWorld Australia revealed that the new focus on gourmet was driving profitability sector-wide.

“Industry pizza restaurants have embraced these trends and provided a growing range of gourmet pizzas at premium prices,” the report reads. “As a result, industry profit margins have risen over the period to represent an estimated 7.3 per cent of industry revenue.”

Where once, pizza shops that offered Aussie staples such as meat-lovers and Hawaiian dominated the industry, a changing of the guard has seen restaurants work hard to reposition themselves as specialised offerings, and consumers

are responding.

“Rising health consciousness can dampen demand for traditional fast food, which is generally perceived as unhealthy.

Thus, restaurant operators that respond to this perception by offering healthier options and marketing them successfully will tend to fare better.”

So, with over 4000 businesses operating in the booming pizza sector, which brands are slicing up the competition?

CRUST GOURMET PIZZA BAR One brand that has well and truly embraced the “premium-isation” of pizza is home-grown franchise Crust Gourmet Pizza Bar. The chain was one of the first domestically owned and operated pizza franchises to position itself as a specialised offering on the takeaway scene. Hosting a menu emblazoned with gourmet ingredients like fresh prawns, truffles and house cooked Mediterranean lamb, Crust hasn’t been

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afraid to experiment with flavours.

“Customers value the quality and innovation that is anchored in the pizza offering and it is this advantage that has assisted with the brand’s longevity in the market,” Crust general manager Renée North says.

For over 20 years, the chain has placed itself at the forefront of franchise gourmet grub, even weighing into the emerging ketogenic consumer demand, rolling out a low-carb pizza base for the health-conscious customer.

It’s all part of the chain’s repositioning strategy, North reveals. Announced late last year, the rebranding saw Crust focus its energies on digital transformation and customer experience.

“The brand’s DNA prides itself on staying ahead of global trends and continually challenging itself to remain current and relevant to its customers,” she says.

“The once in 20-year brand refresh was designed to future-proof the brand in a modern and appealing way that would position Crust’s premium offering across the competitive quick service restaurant (QSR) landscape.”

The full-market revamp isn’t just boosting sales here in Australia, either. Since the rollout began, the entire Crust team has been monitoring its success, with international acclaim.

“Analytics have demonstrated an increase in new customers online and walk-in customers have been evident as consumers are invited in by the new branding,” North says.

“Further abroad, the rebrand has attracted interest from potential international buyers, with our first UK store now open with the new branding.”

As consumers continue to develop new palettes and preferences, North says the key to Crust’s growth will be segmentation through health consciousness.

“The demand for low-carb, glutenfree, meat-free,

vegan, Halal and lactose-free is increasing constantly and it’s our promise to continue thinking and creating adventurously for all our customers.”

While Crust may have the specialisation sector all sewn up, it isn’t the only iconic pizza franchise to step into the meat-free arena.

DOMINO’S Earlier this year, global pizza giant Domino’s unveiled plans to roll out a series of plant-based pizza options, catering to the growing vegan and vegetarian consumer market.

The three new pizzas made their debut on the Domino’s menu in September, after the growing success of the chain’s vegan cheese experiment last year.

“The decision to launch this range was made in a bid to offer our customers more choice, ensuring there’s something on our menu for everyone, and that regardless of food preferences or dietary requirements everyone can share in the joy of pizza,” a Domino’s spokesperson explains.

“It took nine months of developing and testing behind the scenes before the team decided on a plant-based beef product which would be affordable for customers, without compromising on taste or price.”

While the new plant-based range caters to an already established consumer market, Domino’s hasn’t shied away from some more controversial flavour combinations.

After former New Zealand Prime Minister Bill English took to social media to share his now infamous homemade tinned spaghetti and pineapple monstrosity, Domino’s grabbed the idea and ran with it.

Partnering with canned food brand

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Watties, the New Zealand arm launched a localised Hawaiian Spaghetti Pizza, featuring glazed ham and a smattering of mozzarella cheese.

“We work hard every day to give our customers more of what they love,” the spokesperson says.

“In New Zealand, the Kiwis love potato wedges on their pizzas and in Japan exotic seafood is a crowd pleaser. We are committed to giving our customers more of what they love – whatever that may be.”

While tinned spaghetti pizzas may not be the golden ticket to global success, Domino’s believes a focus on customer experience may well be. Over the last 10 years, the chain has introduced a series of initiatives aimed at improving the customer journey, investing heavily in technology to bridge the gap.

After Domino’s identified a growing demand for consistency of quality, the brand introduced its biggest innovation since the iconic GPS Driver Tracker, DOM Pizza Checker.

The smart scanner sits above the cut bench and uses artificial intelligence to check the quality of every single pizza before it goes out the door, ensuring customers remain satisfied and fewer pizzas are returned.

“Ultimately, business success is about keeping our franchisees profitable and our customers happy. Because if our franchisees are profitable, then the business as a whole is profitable,” the spokesperson says.

“To do that, it all comes down to the customer and putting them at the heart of everything that we do. By launching so many ‘firsts’ in technology and innovation, we open our brand up to a whole new set of customers with each new launch.”

From global technology leaders like Domino’s to family-owned operations such as Melbourne-based Bubba Pizza, the franchised pizza sector is an industry that stretches almost as wide as a traditional New York deep dish.

INDUSTRY SPOTLIGHT

Domino's Australia CEO Nick Knight

BUBBA PIZZA Born and bred in the streets of Australia’s foodie capital, Bubba Pizza is the family-owned franchise taking a bite out of the fast-food sector.

Where Crust focuses on gourmet, and Domino’s targets value, Bubba Pizza hits that sweet family-centric spot in the middle.

“We as a brand are committed to making life a little bit better for our customers at times when they want to relax, so having families in our stores providing this service is a huge advantage,” Damian Hopper, Bubba Pizza director explains. “They can relate with and understand their customers on a personal level, it’s a more genuine experience.”

It’s been a long journey for Bubba, and franchising wasn’t always on the cards, Hopper reveals.

“As a family we initially owned about five or six stores at one time which was a lot of work, we had to be in too many places at once and relied heavily on store managers to operate the stores.

Franchising gave us the opportunity to have like-minded business owners in our stores who are willing to go far beyond the level of effort that a manager is willing to commit.”

Now with 23 stores under their belt, the team at Bubba Pizza is revamping its franchisee structure, offering greater support.

“We have broadened our horizons in terms of what ways we can offer support to franchisees, placing more emphasis on individual goal setting, local marketing support and, most importantly, reducing the running costs of owning a franchise,” Hopper says.

“Support is a two-way street in our business: as a franchisor we need just as much support from our franchisees as they need from us.”

Where the challenge lies for Bubba, much like others in the QSR space, is in the evolving platform demands.

“The QSR space is on one hand a prosperous industry with an exciting future, but

Bubba Pizza director Damian Hopper

it has a lot of competition, and the current climate has redefined the word competition for the industry,” Hopper says.

FAST-FOOD FUTURE Delivery platforms and third-party aggregators have hit the fast-food and casual dining sector hard over the last five years.

While consumers are more inclined to purchase fast-food than ever before, high partnership costs and delivery fees are threatening to diminish returns, even for the most popular of operators.

“In previous times, a QSR operator was competing with other stores to attract customers who were choosing where to have dinner,” Hopper says.

“In the current space, even if you have acquired the customer, you are now competing with how the customer chooses to order, and the decision they make could mean anywhere from 0 per cent to a 35 per cent cost to the bottom line.”

While delivery platforms have the potential to cut profits for other operators within the fast-food industry, it must be said that pizza delivery is by no means a new notion. In fact, Hopper believes the sector’s ability to adapt to new market change will stand it in good stead to combat the aggregator revolution.

“The aggregators take away your ability to communicate with customers, things like offering promotions, asking how their meal was, even the simple things like opening the door for someone or thanking them for their business. You have to let your product do the talking, we are improving the quality of our products, how they are made and the way we package them.”

Across the board, pizza franchises are moving quickly to address the evolution.

Brands like Domino’s have bolstered their own online ordering systems, offering delivery in a speedy and consumer-focused fashion.

“Back in the day, most customers ordered via phone and it could take upwards of 45 minutes for a customer to receive their delivery. Now, more than 65 per cent of our orders are placed online and we are consistently delivering, safely, in under 10 minutes,” Domino’s says.

As the sector continues to grow and consumers find their place in the delivery platform space, change is imminent. Smart franchisors are backing their franchisees by leveraging the very differentiators that made them popular in the first place.

For Crust, that means gourmet flavours and health-consciousness, for Bubba, a fresh, family-friendly focus and according to a Domino’s spokesperson, a greater emphasis on innovation looks set to lead the global chain into the future.

“In the QSR space, we’ve certainly come a long way. Artificial intelligence and augmented reality are playing an increasingly bigger role in the industry and customer convenience is the ultimate king.

“Whether that be the speed of delivery, the quality of the product, or the price, our goal is to make the entire experience one they will remember and come back for again and again.” n

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INDUSTRY SPOTLIGHT

FINDING THEIR FEET A brilliant set of sports-loving franchisors is ensuring young Aussies are staying fit and having fun.

W

hat unites a former rugby league player, a soccer professional and a former corporate executive? Quite simply a love of sport, and seeing young kids develop all-round skills in a relaxed, active environment.

Whether it’s former Melbourne Storm star Billy Slater, international soccer player Peter Nikolakopoulos, or ex-marketing guru Kim O’Donnell, passion is paramount for these franchisors.

Here, Inside Franchise Business chats with five franchise owners about what makes them tick, why they love the industry, and what’s next for their brands.

Check out these Q&As to gain insight into the basics of their franchise offer and what these business opportunities could deliver for you.

Q&A WITH GECKOSPORTS TOTAL UPFRONT INVESTMENT COST: $22,000 + GST LENGTH OF TERM 5 years ONGOING FRANCHISE/MARKETING FEES: from $350/month ($150/month marketing levy) DO FRANCHISEES BUY AN EXCLUSIVE TERRITORY OR MARKETING TERRITORY? Yes they are granted an exclusive zone which includes between 20 and 30 schools.

WHERE ARE YOU EXPANDING? Nationally and regionally.

DO YOU HAVE AN INCOME GUARANTEE? We do not offer any guarantees as this is business. However, we support our franchisees through their term with us and book the first two school programs

Soccajoeys

on their behalf to get them started.

achieve well beyond this year-round.

WHAT MARKETING IS AVAILABLE TO NEW FRANCHISEES? We support the local launch of each franchise, offering artwork for all programs, making website referrals, 1300 number customer service, national kids business and school directory listings and social media. We like to think local with all national marketing to ensure it impacts and supports all franchisees.

HOW DO YOU MONITOR FRANCHISEES’ PROGRESS AND PROVIDE BUSINESS SUPPORT? We have a streamlined national booking system that is fully integrated for head office to monitor and track each franchisee’s sales where we check in monthly. Social media is constantly reviewed with annual professional development in coaching and all forms of marketing.

HOW DO FRANCHISEES GET NEW BUSINESS? Facebook is great for franchisees to promote and network with their local community, as are schools we work in.

WHAT MINIMUM STANDARDS OF PERFORMANCE ARE REQUIRED? As we are a family-friendly business we believe in supporting each franchisee individually based on their situation.

Ideally the minimum income is $2000 per month – most franchisees consistently

WHAT SKILLS DO FRANCHISEES NEED? There are no specific qualifications required to become a GeckoSports franchisee, we cover all courses and training during our franchise training. Having a passion for sports, fitness and kids is a must. We help you set up and operate your business with our streamlined robust and proven systems for our franchisees to focus on what they do best and love: coaching.

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Q&A WITH SOCCAJOEYS GROUP TOTAL UPFRONT INVESTMENT COST: $27,000 + GST LENGTH OF TERM: 5 years + 5 years ONGOING FRANCHISE/MARKETING FEES: 11.5 per cent (8.5 per cent royalty, 3 per cent marketing) DO FRANCHISEES BUY AN EXCLUSIVE TERRITORY OR MARKETING TERRITORY? An exclusive territory.

WHERE ARE YOU EXPANDING? Victoria, WA, South Australia, Queensland.

WHAT MARKETING IS AVAILABLE TO NEW FRANCHISEES? We have a full-time marketing director available five days a week to franchisees.

We also have a wide variety of marketing collateral and material accessible to franchisees from the get-go.

HOW DO FRANCHISEES GET NEW BUSINESS? Our full-time operations manager and marketing director work closely with new franchisees to guide them during their launch campaign.

WHAT ARE THE MINIMUM STANDARDS OF PERFORMANCE? We prefer to work alongside our franchisees and together set achievable targets. Our priority is to equip franchisees with the necessary resources, tools and knowledge to operate successful territories.

HOW DO YOU MONITOR FRANCHISEES’ PROGRESS AND PROVIDE BUSINESS SUPPORT? Our full-time operations manager is in constant communication with the network.

He organises regular workshops, coach education seminars, field visits, and we maintain an open, constructive relationship to ensure franchisees are supported.

WHAT SKILLS DO FRANCHISEES NEED? To be motivated, enthusiastic, maintain a strong work ethic, leadership skills, and be community oriented. Good administrative and time management skills, attention to detail, and a strong focus on customer service put franchisees in an excellent position to manage a successful franchise.

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Q&A WITH BILLY’S BUDDIES

TOTAL UPFRONT INVESTMENT COST: $25,000 + GST LENGTH OF TERM: 5 years + 5 years ONGOING FRANCHISE/MARKETING FEES: 9 per cent + GST (currently no marketing levy) DO FRANCHISEES BUY AN EXCLUSIVE TERRITORY OR MARKETING TERRITORY? Each franchisee is given a territory, usually based on local government areas.

WHERE ARE YOU EXPANDING:?

Queensland, NSW, Victoria.

WHAT MARKETING IS AVAILABLE TO NEW FRANCHISEES? With access to a highly skilled head office team, there are several marketing opportunities and initiatives available, not to mention our great online presence.

HOW DO FRANCHISEES GET NEW BUSINESS? Leveraging contacts and local relationships in a franchisee’s area is critical to how quickly the franchise succeeds. Contacting locations and attending local events (relative to the target market) are just two ways of attracting new business.

WHAT MINIMUM STANDARDS OF PERFORMANCE ARE REQUIRED? Each franchisee is given minimum KPIs to meet throughout the term. These vary from region to region.

HOW DO YOU MONITOR FRANCHISEES’ PROGRESS AND PROVIDE BUSINESS SUPPORT? Head office is provided with automatic reports to ensure KPIs and Billy’s Buddies standards are met and upheld. Ongoing, regular support ranges from technical to soft skills, delivered via email, phone, skype and in person.

WHAT SKILLS DO FRANCHISEES NEED? Billy’s Buddies is seeking passionate, driven, highly ambitious people who wish to make a positive difference both in the community and within their own lives, financially. .

INDUSTRY SPOTLIGHT

Q&A WITH LITTLE KICKERS TOTAL UPFRONT INVESTMENT COST: $27,000 + GST. LENGTH OF TERM: 5 years + 5 years ONGOING FRANCHISE/MARKETING FEES: 10 per cent management fee, 1 per cent marketing fee, 0.5 per cent IT system levy DO FRANCHISEES BUY AN EXCLUSIVE TERRITORY OR MARKETING TERRITORY? Franchisees operate in an exclusive territory.

those who best engage their local communities, embrace the brand ethos and are innovative in their marketing efforts.

WHERE ARE YOU EXPANDING? Queensland, Adelaide, Darwin.

WHAT ARE THE MINIMUM STANDARDS OF PERFORMANCE? Franchisees need to spend a minimum of 25 hours a week working on their franchise.

WHAT MARKETING IS AVAILABLE TO NEW FRANCHISEES? We have a full-time graphics and marketing team providing content for the network. We also work with a digital agency who provides content, insights and reporting for our online presence.

HOW DO YOU MONITOR FRANCHISEES’ PROGRESS AND PROVIDE BUSINESS SUPPORT? We have a sophisticated and innovative business system that allows for very accurate reporting and helps us identify trends across the system.

HOW DO FRANCHISEES GET NEW BUSINESS? The most successful franchisees are

Over the past 12 months we’ve moved to a monthly subscription model across the network which has also helped with predicting growth and future income.

We provide full-time support, covering everything from ongoing development of the Little Kickers activity program via our directors of coaching and network of senior coaches, through to marketing, business systems support, online coach training portal, best practices and general day-to-day support.

WHAT SKILLS DO FRANCHISEES NEED? A passion for getting young children involved in sport and a desire to run their own business!

Q&A WITH SPORT STAR ACADEMY HOW DO FRANCHISEES GET NEW BUSINESS? Mostly through running school incursion programs, after-school sessions and weekend sport programs.

WHAT MINIMUM STANDARDS OF PERFORMANCE ARE REQUIRED? Franchisees need to run 20 sessions a week.

TOTAL UPFRONT INVESTMENT COST: $65,000 +GST.

DO FRANCHISEES BUY AN EXCLUSIVE TERRITORY OR MARKETING TERRITORY? An exclusive territory for one brand.

LENGTH OF TERM: 5 years + 5 years ONGOING FRANCHISE/MARKETING FEES: 2 per cent

WHERE ARE YOU EXPANDING? Australia-wide.

HOW DO YOU MONITOR FRANCHISEES’ PROGRESS AND PROVIDE BUSINESS SUPPORT? We track franchisee performance and provide support through a centralised payment system, reports and face-to-face contact.

WHAT SKILLS DO FRANCHISEES NEED? They need to be passionate about working with children, have a strong ability to build relationships, persistence and be a strong communicator.

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INDUSTRY SPOTLIGHT

MEET THE OWNERS

Who are the people shaping these businesses? Inside Franchise Business takes a more personal look at the way these franchisors lead and operate their franchises.

TWO MINUTES WITH KIM O’DONNELL, DIRECTOR AND OWNER, GECKOSPORTS I have 20 years executive corporate marketing experience in leading iconic international and national brands. My business background has been fantastic in assisting me to run my own business.

I was fortunate to buy into the business at ground level where I can grow my wings, observe and build the business into what it needs to be to service our customers, the kids of Australia.

I have worked on building a solid business model ... now it’s time to shine!

A short-term goal is to grow the franchise network quickly across the country. Longterm, the aim is to become the number one national kids sports and fitness brand.

We have a small national franchise footprint, so from a head office management and operational perspective I wear most hats and source experienced contractors when required.

I also operate my own GeckoSports franchise so I’m coaching schools programs, parties, holiday programs and events daily and managing a network of coaches. I love coaching and find great satisfaction and joy in being with the

kids having “serious fun” as we say at GeckoSports.

I like to be a supportive, approachable leader to give people freedom to learn in their own way, as we are all different. Being flexible and compassionate is key to working with people and kids, and it’s important to always do it with a smile.

I approach roadblocks and obstacles with a can-do open mind, so every challenge is just that, a challenge that can be overcome. Rather than being reactive I work on taking a different approach and try to think strategically.

The biggest challenge in business is not knowing what is the right or wrong solution. You need to explore to then learn and make the best educated decisions in order to be strategic in planning.

You learn so much about yourself as a business owner. It’s a constant personal discovery and it’s important to enforce structure and balance to ensure you are kind to yourself and don’t burn out, as business can become very consuming.

I am super passionate about our vision at

GeckoSports, so the drive comes easily to me.

To relax, if I’m not coaching Gecko programs (honestly, being around kids is super fun, rewarding and uplifting) I enjoy Pilates, paddleboarding and beach time with my dog.

This is my dream job where I can be active, with kids, work in my local community and be my own boss. I love working with people and of course, love sport and fitness.

TWO MINUTES WITH BILLY SLATER, RUGBY LEAGUE LEGEND AND FOUNDER OF BILLY’S BUDDIES I have a sporting background as you probably know, which started when I first picked up a footy back when I was younger. I have also been lucky enough to have met many great and inspirational businesspeople during my rugby league career.

Throughout my time playing rugby league I met many parents, kids and business owners who had an active interest in rugby league, sport, and the development of kids. It seemed a logical path for me to give back a little of my experience while making sure that our Billy’s Buddies program is fun and engaging.

My goals are to continue to build awareness of Billy’s Buddies throughout Queensland and the eastern

seaboard. I want to positively promote the benefits of franchisee ownership and conversion of franchise sales. We aim to increase participation of kids aged two to six in our programs.

I have enjoyed visiting franchisees, parents and children in Queensland and NSW over the past three years at Come and Try days or program launches. I’ve also chatted with a lot of our coaches, which has been fantastic.

As a leader I like to understand how I can help the business achieve our goals and go about getting to where we need to be in a very positive way.

My approach to roadblocks is that communication is the key. I like to discuss all the factors, then look at all possible solutions and work towards an appropriate outcome.

When I’m measuring the success of the business, there are a few critical factors. These include franchise sales, current program participants, forecasted program participants and frequent marketing exposure to ensure Billy’s Buddies remains current and relevant.

Business is a lot like sport. You’ve got to have a good team, a leader with vision, and be flexible to address challenges as they arise.

I’m super lucky to be living my dream, as I’ve got a great family and we have a shared interest in horses. I like to relax with my family at home or on our farm.

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INDUSTRY SPOTLIGHT TWO MINUTES WITH STACY ALOGDELLIS, MANAGING DIRECTOR OF SOCCAJOEYS My experience is a mix of small business and professional football, both player and coach.

I would attend grassroots matches on the weekends in my local area and see how so many younger siblings were too young to play. I realised there was an opportunity and a genuine need to provide younger children with similar physical development opportunities through a customised soccer program for preschoolers.

My goals remain the same as when I first began the business: to provide children with exceptional programs that support their individual development and to help children foster a love of fitness and soccer.

For my franchisees, my goal is to provide a highly supportive business environment with innovative products, advanced technology, contemporary systems and processes to operate streamlined businesses and hands-on support to cater to their needs.

I consider myself a very open and

approachable person and have surrounded myself with a great head office team.

Together, we are engaged with the network 24/7. I am always investigating and researching new methods to improve our operations.

With every roadblock or obstacle comes an opportunity. Some constraints have led us to new markets and growth areas, so it’s a matter of perspective and how you approach the challenges.

I best measure franchise success by the success of our franchisees, our growth and also the satisfaction and excitement we give to families and children who attend our programs.

Business is a landscape that is always evolving and you have to be able to adapt accordingly. A good knowledge of all aspects of your business is critical to keep on top of it all.

But you definitely need to balance a

work–life ratio. We can easily get so busy making a living that we forget to make a life.

So I relax by spending time with my family and enjoying the simple pleasures in life.

Going fishing with my children, spending quiet family time and appreciating the time we share.

I couldn’t see myself doing anything else. Working with families and children, mentoring staff and having a fantastic network of franchisees is very fulfilling, and I love my industry.

TWO MINUTES WITH SPORT STAR ACADEMY FOUNDER PETER NIKOLAKOPOULOS My background is a combination of sport and small business. I played with South Melbourne Hellas in the National League and was offered a full scholarship with the University of South Carolina. I then played for Oakleigh and Port Melbourne in the Premier League and captained the winning Australian team in the 5-a-Side Hyundai World Championships in Korea.

On return from Korea, I was approached to start coaching a young player. From here, I developed a passion for coaching

and wanting to improve the skills of junior players. And it was clear there was a need for a professional coaching business to help develop these future football stars.

Running a promotions and marketing business gave me insight into understanding what customers want. From there, I returned to what I was passionate about, sport. It’s all about sport – if I wasn’t running this franchise I would have a player management company.

I’m very involved in the franchise, I’m still very hands-on in all business divisions. I’m always available to speak with franchisees.

My leadership is defined by consistently thinking about the success of our franchise partners and how they can grow their business to the best of their ability.

Measuring the success of the franchise business is about franchisees. It’s defined through multi-site operators. Success comes through franchisees’ purchasing multiple SSA brands.

I plan to nationally expand all the sports under the Sport Star Academy division.

My long-term goal is to launch The AllStars Academy and go international.

I believe the best form of defence is attack; that’s how I approach any obstacle.

Full on.

In this business I’ve learned that anything is possible if you believe in yourself and follow your purpose.

TWO MINUTES WITH DAN KELLAND, DIRECTOR, LITTLE KICKERS My background is in small business.

Over the past 10 years I’ve become very passionate about franchising in Australia and am a Certified Franchise Executive.

My wife and I were looking for an activity for our then (super energetic) two-year-old son. We felt there was a lack of quality activities for preschoolers and believed there must be plenty of parents like us who were looking for an alternative.

Enter Little Kickers from the UK! I ran the first Little Kickers franchise in Australia with my wife for many years so I understand the challenges and hurdles that can present themselves to franchisees.

I think it’s important to be approachable and for all franchise partners to feel secure enough to communicate openly. I try to listen more than I talk. The input and ideas from Little Kickers franchisees have often led to innovation within the system, and

that’s something I try to facilitate as much as possible.

When I face obstacles I try to keep as calm as possible, take a step back, and think about things logically. If there is a strong difference of opinion within the group, I put myself in the shoes of the other party and view the issue from their perspective.

Ultimately we measure success through the continued evolution and growth of our brand, both in Australia and overseas. We are now in over 30 countries and the fact that the model has been able to adapt to different cultures and challenges says a lot about how we conduct our business, I feel.

We’ve had three key goals to provide value to franchisees and their customers: moving to our new business system, the monthly subscription model, and the final goal is the rollout of our Little Kickers Achievement Badge program in which the

children each receive a badge based on what they have been working towards over the previous quarter.

Longer term, we aim to be the market leader in the preschool sports sector.

I’ve learned that I am passionate about helping people grow businesses and am grateful for the opportunity to do so with a brand that can have such a positive impact on the lives of young children and their families.

You get out what you put in – there are no shortcuts – but if you put in the work you can build an extremely rewarding business and create a flexible lifestyle for your family.

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FRANCHISING, LICENSING AND DISTRIBUTION SPECIALISTS 2019 will be a dynamic year in franchising with the Franchise Inquiry Report released, and the Banking Royal Report impacting on funding.

More Regulation means greater compliance so specialist advice from Industry Experts is even more vital.

Robert Toth and the Franchise Group provide advice to

companies and individuals: • • • • • • • • • • • • •

Assisting overseas companies to establish business and franchises in Australia.

Master franchise rights.

Dispute resolution – Solutions and strategies.

Franchisee advice – fixed fee reports.

Sale and purchase of franchise systems.

Trademark and intellectual property (IP) advice.

Company structures and business succession planning Business modelling – Franchising, Branchising, Licensing, Distribution and Agency.

Employment law.

Consumer law and ACCC advice.

Franchisor compliance.

We have a network of franchise consultants to assist our clients establish their brand and systems.

We offer fixed fees based on the scope of work, so our clients can budget for their legal costs with certainty.

MMRB Franchising, Licensing and Distribution Group act for local and overseas companies entering the Australian market and have a network of experienced consultants to assist clients with demographic, feasibility, market research and business entry plans.

www.marshmaher.com.au

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

CONTACT: robert@mmrb.com.au Robert Toth Partner & Accredited Business Law Specialist

kathryn@mmrb.com.au Kathryn Finemore

Senior Associate and Accredited Commercial Litigation Specialist

stacey@mmrb.com.au Stacey Ryan Senior Associate

(03) 9604 9400

PROPERTY

WEST

SIDE STORY

As far as picturesque postcard scenes go, Western Australia has more than enough to satisfy the most demanding of visitors.

By Nick Hall

F

rom the golden beaches of Perth’s northern shore, where surf breaks rival those seen anywhere in the world, to the vast Outback expanses that dazzle tourists and natives alike, Western Australia is the state that offers a slice of everything Australia has to offer.

And for the first time in a long time, buyers and renters are cashing in on Australia’s not-so-hidden gem.

Lending restrictions have loosened, in line with a falling interest rate that has given way to an emerging middle-class economy. It’s a trend that all major cities across Australia are experiencing, but in Western Australia, where commercial interest has traditionally waned, things are heating up.

“The current market is ripe for investment opportunities,” says Ahmad Ibrahimi, head of retail leasing for the Perth arm of property firm Colliers International.

“Interest rates are at an all-time low,

while spending per capita in WA continues to outpace the national average. As retail footprints reach saturation and in some cases are cannibalising one another in other parts of Australia, in WA, landlords are still responding to growing demand from retailers looking to come west.”

Take a look at the breadth of international chains that have made their way to the state over the past few years and it’s easy to see that interest is swelling out west. Big-name brands such as Uniqlo, Zara and H&M now call WA home, with international giant Costco’s first of two confirmed stores set to open next year.

“Retailers, especially those who are gearing up to enter the west, stand to benefit the most from this as landlords look to host brands and concepts that help to differentiate them from others,” Ibrahimi suggests.

So, with construction on the horizon and wave of new brands, both international and domestic set to make WA the next big retail market, where can eagle-eyed franchisees look for a bargain business opportunity?

PERTH CBD Similar to its east-coast counterparts, WA’s capital presents the strongest opportunity for prospective small business owners.

However, unlike Sydney and Melbourne, an oversaturation of offerings has yet to dwindle profitability for tenants.

“The CBD provides a great platform to target an ongoing rotation of visitors and white-collar workers, with footfalls throughout the year remaining strong and conversion rates following closely,” Ibrahimi says.

The resulting spark in retail interest has seen a number of prominent landlords invest heavily in restructuring processes – the aim being to make their locations more appealing to prospective business tenants, particularly as new developments spring up across Perth.

“There is a lot of economic activity currently happening across WA,” Ibrahimi continues.

“Perth CBD leads this progress

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Elizabeth Quay photo credit: DevelopmentWA

with several major refurbishments and redevelopments by key landlords, including the redevelopment of Carillon City and Piccadilly Arcade and the completion of work in Enex 100, Raine Square and, more recently, Forrest Chase in the heart of the city.”

NEW DEVELOPMENTS In Sydney and Melbourne, the infrastructure race seems to be slowing, however, across the Perth CBD, construction and development are strongly under way. In fact, the city’s newest developments have an underlying value of just below $12 billion, making Perth one of the fastest growing regions in Australia.

Ibrahimi says residential interest has expanded the city scope, giving birth to a number of as-yet-untapped areas.

“Historically, Perth has had limited retail options between the CBD and a few established regional shopping centres. That has changed significantly during the last decade as the housing market expanded

north towards Alkimos, south towards Mandurah and east along major growth corridors.”

Southeast of the state’s capital, the population growth impact is plain to see, as highlighted by the recent $350 million Westfield Carousel redevelopment.

Located just 12 kilometres from the Perth CBD, the retail precinct has a total trade area population of 640,000, buoyed by its proximity to both Curtin University’s Bentley Campus and Murdoch University’s South Street Campus.

The 2018 redevelopment saw an additional 70 specialty retailers added to the mix, taking the total number of offerings to 350 across the fashion, food, lifestyle, dining and entertainment verticals.

The redevelopment – alongside the launch of fellow retail precincts Yagan Square and Raine Square – has helped to extend the Perth CBD outside its traditional town borders.

“The combined investment of over $2 billion has resulted in world-class retail

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PROPERTY

offering across the state that has injected billions of dollars into the local economy, creating jobs and helping to improve the retail sector,” Ibrahimi says.

While the Westfield Carousel project has captured much of the state’s attention, a number of other inner-city developments are also presenting value-for-money opportunities.

YAGAN SQUARE Located in the heart of Perth’s CBD within the reach of the heritage-listed Horseshoe Bridge, Yagan Square is the flagship public space of the Perth Council’s new City Link.

The diverse, multi-use region celebrates Western Australia’s cultural heritage and landscape through a series of art spaces, retail offerings and digital implementations. Bearing a price tag of over $73 million, the much anticipated area opened to the public in March last year, after more than 10 years of planning.

Encased within the 1.1 hectare site is the booming William Street Mall, a lively pedestrian thoroughfare lined with shops and alfresco dining, linking the Perth CBD with Northbridge.

It was a significant development for the city, which had traditionally offered little

pre- and post-match entertainment for its AFL-mad inhabitants. Yagan Square’s introduction provided an additional nightlife boost, attracting a number of micro-breweries and millennial-themed offerings.

“Local, interstate and international visitors have Perth Arena and Yagan Square at their feet with the added bonus of direct train services to key destinations,” Planning Minister Rita Saffioti reveals.

“As construction and development progress over coming years, we will see retail, hospitality and hotel operations continue to boost the state’s economy.”

But while Yagan Square remains the jewel in the Perth City Link crown, it isn’t the only major development generating interest in the city.

ELIZABETH QUAY Elizabeth Quay, the $2.6 billion landmark waterfront development designed to reconnect Perth city with the Swan River, is yet another initiative turning heads.

The ambitious project was named best of the best by the Urban Development Institute of Australia, thanks to its transformative approach to retail innovation and growth.

“Elizabeth Quay has restored a valuable physical and cultural connection between Perth’s city centre and the Swan River, a connection that had previously been cut by roads and decades of development,” Metropolitan Redevelopment Authority CEO Sean Henriques says.

“People come out of the high-rise buildings to enjoy lunch by the water. They are returning to the city on the weekend, or staying longer after work to attend shows and events with their families and they are forging new connections and ways of engaging with the city and its river.”

Bolstering the new region is the development of global business Chevron’s Australian headquarters. The new 29-storey, mixed-used Chevron tower has added more than 54,000 square metres of office space, however the big boom for prospective tenants comes in the wealth of expected foot traffic.

“Chevron’s new headquarters will contribute to delivering a vibrant, activated Elizabeth Quay, which is ultimately expected to be home to 1400 people and 10,000 workers,” Saffioti says.

The unique mix of commercial, dining, entertainment, retail and community uses have seen the region grow in stature, not

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“Elizabeth Quay will continue to be an exciting place to live, work and visit and will generate essential economic activity for many years to come,” Henriques says.

GROWTH AREAS As the Perth City Link plan nears completion, the city is fast becoming an internationally recognised tourist destination. The result has seen the state government invest heavily in developing the region’s airport infrastructure and capabilities, with developers equally eager to capitalise.

Ibrahimi suggests that the new developments slated for the region present unrivalled access to a rapidly growing growth region.

“If I was to pick the most attractive project for the next five years, it would be the retail development around Perth Airport,” he says.

“Along with hosting Perth’s only DFO, the master-planned project includes Perth’s first Costco, a 19,000sqm store due to open in the first half of 2020, a largeformat retail precinct opposite the DFO and several lots allocated for community services and neighbourhood retail.

“This location, in my opinion, will become a retail mecca for Perth residents and tourists alike. There are additional retail opportunities available for largeformat operators, F&B, childcare and neighbourhood services,” Ibrahimi says.

The market conditions parallel those seen in the east of the country, particularly in the outer suburbs of Brisbane, where master-planned communities represent a strong entry point for prospective franchisees to target the emerging middleclass economy.

Access to family-focused areas open the opportunity for a new business owner to generate strong sales and cement themselves as a key community contributor, irrespective of the industry in which they operate.

“Master-planned communities provide residents with a focused and dedicated offering,” Ibrahimi explains.

“A development’s success and eventual uptake relies on ensuring that the product is meeting the needs of the future community. In recent times, developers have started paying closer attention to ensuring their retail centres are well designed, well positioned and accepting of different types of retailers.”

While master-planned communities

can offer significant access to valuable markets, playing off a key anchor tenant can still prove worthwhile.

SUB-REGIONAL OPPORTUNITIES Since the collapse of the state’s mining industry, regional and sub-regional areas in Western Australia have struggled to stay relevant, with little to draw new entrants to the town centres. However, a strong state government approach to infrastructure and education is slowly helping to build back appeal.

“While we obviously had an inflated figure during the mining boom, which included interstate workers who settled in the regional areas, today, the steady and organic population growth is evident across the state, with key indicators recording a 0.93 per cent growth between 2017 and 2018,” Ibrihimi reveals.

“And while the larger shopping destinations such as Westfield Carousel, Morley Galleria and Garden City offer very competitive retail opportunities, smaller neighbourhood centres continue to draw the most interest from retail operators due to their relevance to the residents in nearby communities.”

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SUB-REGIONAL CENTRES Take for example, Western Australia’s second-largest shopping centre, Lakeside Joondalup, which moves an annual turnover of over $700 million. Strategically positioned in Perth’s northern growth corridor, the centre houses over 280 specialty stores and kiosks, connecting the bustling local community with a number of small business operators.

The value for prospective entrepreneurs lies in the centre’s innovative approach to pop-up retail.

Along with landlord LendLease, Lakeside Joondalup offers prime pop-up sites directly in front of major tenants, such as Myer, delivering high visibility.

The affordable, low-risk option is tailored to suit a new business operator in a testing phase, and can provide extensive insight into potential business solutions, particularly for mobile operations like vending franchises.

Further east, operators are also responding to a booming population growth. In November 2018, prominent regional centre Midland Gate completed stage two of a $100 million redevelopment that added more than 14,000 square metres of gross lettable area.

The introduction of a new fresh food precinct, in addition to an expanding dining offer, helped to bolster the appeal of the centre’s 35 new retailers.

Across the Midland and greater Swan area interest is steadily swelling, with a number of savvy operators getting in early on the projected 24 per cent increase in population growth, predicted to hit 300,000 by 2025. photo credit: DevelopmentWA

REGIONAL OPPORTUNITIES

Retailers, especially those who are gearing up to enter the west, stand to benefit the most from this as landlords look to host brands and concepts that help to differentiate them from others.

From a geographical perspective however, Western Australia offers more than just CBD and sub-regional opportunities. The nation’s largest state by area is largely rural, and while population numbers in regional towns pale in comparison to the Perth and Fremantle regions, they shouldn’t be ignored.

Significant government investment is slowly building infrastructure and appeal in the state’s more rural town centres, with areas such as Geraldton, Bunbury and Albany emerging from the post-miningboom slumber, repositioned as thriving regional tourist spots.

“With tourism investments picking up and more airline connections to Perth, including the recent introduction of direct flights between Perth and Tokyo, we expect a surge of interest for places like Margaret River, Bunbury and Albany to the south and tourist hotspots in Geraldton,

Exmouth and Broome to the north,” Ibrahimi explains.

“These regional centres already enjoy substantial interest from intrastate travellers and will continue to receive more visitors from other parts of Australia and overseas tourists, leading to strong demand for retail operators.”

Primarily driven by pad sites for Quick Service Restaurant options, medical and childcare centres, pharmacies and most recently entertainment, interest is slowly rising.

But a new industry discovery looks certain to accelerate that growth.

As the dust settles on the state’s iron ore, gold and copper mining sectors, exploration in lithium hydroxide is revitalising the prospect of a secondary resource-driven boom.

Several regional sites across Western Australia have been bolstered to address the growing demand for the material, which will fuel the next generation of car and smart phone batteries.

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PROPERTY

Ibrahimi reveals that the state’s resource-driven economy is set to thrive as result, turning Western Australia into a major global player and immigration hotspot.

“The world’s largest lithium hydroxide processing plant outside of China opened in Kwinana, just south of Perth earlier this year,” he explains.

“The $400 million facility looks set to be joined by a $1 billion plant in Bunbury.

In total, WA is expected to produce more than a third of the world’s demand for lithium. Its significance to the local economy, job creation and state budgets cannot be stressed enough.

As new developments take shape across rural Western Australia, towns that have previously suffered in the fallout of the mining collapse look set to be revamped, with eagle-eyed entrepreneurs ready to capitalise.

Ibrahimi suggests a driving demand for workers is a sure-fire sign of sector on the precipice of a great revival.

“Job creation industries will continue to drive interest in the south of the state, especially in regions like Bunbury. We are

confident regional towns will continue to be a power house for the state’s economy and will, in turn, continue to benefit the retail sector.”

CHALLENGES As population growth continues across Western Australia, new retail precincts are certain to present value-for-money opportunities, particularly for those operators willing to commit early.

Despite the upside, however, Ibrahimi suggests the state is not without its challenges.

“Retail has always been an evolving industry and that couldn’t be any truer than today. In addition to international challenges with global trade wars and regional instabilities, consumer habits continue to drift away from the conventional ‘customer’ that the industry was all too comfortable with,” he says.

“Throw in online shopping growth trends across the country and we find ourselves in unconventional territory that demands the best of our attention and effort. WA is not immune to any of these

challenges, and retailers are expected to do everything they can to provide a level of ‘future-proofing’ as we move through this uncharted route.”

The retail leasing expert advocates strong due diligence on the part of the prospective franchisee, offering two pieces of advice: know your customers and know your lease.

“It is vital to know as much as possible about your customer base, their demographics, shopping habits and spending power. This will allow you to best judge a location and its suitability for your business,” he explains.

“After this stage, get to know your lease.

This is not just a review of the document but more importantly understanding its human components. Know your landlord, the leasing agent, your future property manager, your adjacent neighbours. If you are part of a retail precinct or shopping centre, get to the nitty-gritty details of the marketing budget and plan. Today, it is more about interacting with the customer in all aspects of their lives, and data and research is key to this.” n

Yagan Square photo credit: DevelopmentWA

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FRANCHISE BASICS

TERRITORY, EXCLUSION ZONE OR MARKETING AREA? THAT IS THE QUESTION

As a franchisee it’s vital you understand the differences between the terms used to describe areas, as well as your franchisor’s legal commitments around these.

PETER BUCKINGHAM Managing director, Spectrum Analysis

T

he phrase territory planning is commonly used by franchisors and analysts who are trying to shape a geographical area as part of a franchise’s marketing arrangements. But the word territory is overused, in my view, when it comes to defining an area as part of a franchise agreement or understanding.

I believe there should be three different ways to describe an area for a franchisee depending on certain situations, and to me they are really as clear as black and white: • territory • exclusion zone • marketing area.

WHAT IS A TERRITORY? Think of a national border patrolled by armed guards, that no one can cross.

This is a very hard line to be observed. I believe a territory is really only relevant

when a franchisor is allocating leads to franchisees. The territory is the commitment from head office that every lead that comes from within this area will be correctly allocated. This may mean a territory is an exact number of postcodes or suburbs, or a fine line down a road so that all the leads from one side go to Franchisee A, and all on the other side go to Franchisee B. This is extremely important in a business like mortgage broking, as a business like Aussie Home Loans or ANZ Mobile Bank needs to be completely confident when passing on a lead.

Franchisee A would be quite upset if he finds Franchisee B was given a lead, which should have been his, that ended up generating a $20,000 commission!

In my view, a territory must be correct, and must have exact geographic boundaries using the mapping boundaries provided by the ABS or exact roads so an area is defined. This may result in a franchisor using Google Maps to locate an address and ensure it is assigned to the correct franchisee.

EXCLUSION ZONES When you talk to most franchisees, especially if they are opening a store, their concern is not where the customer comes from, but rather if another franchisor can open a store too close to them and, in their view, damage their business.

What they are seeking is an exclusion zone, which is in writing, and is to be honoured by the franchisor, and gives them exclusivity and security to being the only one of that brand of store in a certain area.

In reality, no one can tell a customer which store they must buy from, so thinking you have any control over where the customer goes to buy the product is unrealistic. The best you can ask for is to be the only one selling this product range in a certain area.

While an exclusion zone may constitute suburbs or postcodes, in many cases it is just a description of the shopping centre the franchise is located in. So if the franchisor wants to open a second store in the shopping centre, the

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In reality, no one can tell a customer which store they must buy from, so thinking you have any control over where the customer goes to buy the product is unrealistic. The best you can ask for is to be the only one selling this product range in a certain area.

franchisee may have the first right of refusal, or maybe can veto the second store unless an agreement is reached.

An exclusion zone may be set up in exactly the same way as territories – based on populations, households, and weighted to recognise customer behaviour. But it cannot force a customer to use one store over another.

In my view most franchisees are seeking an exclusion zone from their franchisor, and it is a pity we do not adopt this as the language of franchising.

MARKETING AREA The softest definition of an area is a marketing area. In many cases this may be much larger than the territory or exclusion zone, and is more representative of where the franchisor may want the franchisee to market by way of letterbox drops or cold calls. A marketing area is reasonably flexible and should allow the franchisor the right to vary this if, for example, a new shop opens (making the marketing area smaller) or if a shop closes (making it larger). A marketing area should cover, at minimum, the exclusion zone but allow franchisees to cover any vacant or unallocated areas at any point in the franchise rollout plans.

A franchise could almost do without a marketing area if it wants everyone to market all over Australia. The point, however, is to create a level of efficiency so one person (Franchisee A) covers one

area, while another (Franchisee B) covers another area, without dropping the same flyers into the same letterboxes or cold calling the same customers.

USE THE “T” WORD SPARINGLY I have said for many years, “Don’t use the ‘T’ word unless you have to.”

Logic and processes need to be undertaken to give similarly balanced territories or exclusion zones. And I guess for simplicity we all call this territory planning, so that each area in a franchise system offers the franchisee similar potential for their business.

In my view territories refer to customers and customer/lead allocation, where the normal franchisee opening a store is mainly interested in the exclusion zone granted to them by the franchisor, to legally commit to not opening another store in the agreed exclusive trading area.

I hope this helps you to clarify your thinking, and introduces the correct terminology to describe what the franchisor is granting, and what you are taking on as a franchisee. n Peter Buckingham is managing director of Spectrum Analysis, a demographic mapping, franchise territory planning and statistical analysis company. Peter is a Certified Franchise Executive.

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FRANCHISE BASICS

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5 WAYS TO BE A

TOP FRANCHISEE

Tips for turning a franchise purchase into a roaring success.

F

ranchisee success depends on some simple basics, whether you are lining up to invest in a brand new site, or take over from an established business.

Let’s preface these tips with the acknowledgement that there are no guarantees in business - franchised or otherwise. Going into business is a risky activity, but it can be packed full of rewards and deliver a bright new future.

So if you are prepping to buy a franchise, there are some ground rules to follow that will help you steer the business towards your ultimate goals.

1. KNOW YOURSELF What do you like to do? How do you manage paperwork? Could you work all hours, evenings and weekends?

Understanding how you will best perform in a business where the buck stops with you is an important step in choosing the right franchise.

It’s important to align your skills to the appropriate opportunity. That doesn’t mean you can’t change career, or learn new skills. But if you really aren’t a people person, don’t take on a franchise that requires constant client and staff engagement.

If you love being out and about, don’t choose a business that will keep you office bound.

If you are terrified of marketing, ensure the franchise you invest in provides plenty of practical support.

Find a franchise that gets you excited about what you can bring to the business, and that you can see yourself operating day after day, for a few years.

2. DO YOUR RESEARCH This is not exciting; to do your due diligence effectively requires commitment of energy, time, and probably some costs. But this is the most important step in setting yourself up with the right franchise.

Obviously the first stop is the franchisor who will readily give you information about the brand, its purpose and vision, and wins. But it’s crucial to dig deeper and find out what you can about the owners, the leadership team, the support team.

Turn to franchisees (current and former) to discover the reality of how the franchisor team communicates with its franchisee network, whether there are any consistent pain points that upset franchisees, and most importantly whether the franchises are profitable.

Use a wide variety of resources, including the internet,

and friends and family, to assess the brand’s viability in the marketplace.

3. KNOW YOUR NUMBERS How much can you afford to spend on your franchise purchase? It’s really worth taking a hard look at your income and expenses and assess what you need to be bringing in from the business to sustain your lifestyle. If you’re prepared to make cuts, you’ll need to know how you will achieve these.

Either way a budget is a fundamental tool to setting out financial boundaries.

Don’t forget there will be extra upfront costs as well as the capital investment that you’ll need to pay when you purchase your business - do some research to find out what other franchisees have paid. And add in ongoing fees, lease, taxes, superannuation, insurance that will need to be paid, whether or not you are hitting your financial target.

Every franchisee will also need working capital to manage the early days and weeks of trading.

4. USE YOUR HEAD It’s so easy to be passionate about a brand and be so committed that you’ll go ahead and purchase a business because you just love it. That can play havoc with sensible business decisions so try and park your emotions.

Buying a franchise is like any other commercial agreement, it’s a binding legal contract. So you want to be confident that all the important elements (business support, profit potential, excellent training, market viability) are all in place before you sign up to a new business.

Some franchisors can put pressure on franchise buyers to commit; if this happens it’s time to take a hard look at the offer.

Don’t be rushed into a poor decision. There’s always another location or another franchise.

5. SEEK PROFESSIONAL ADVICE Franchise buyers can be wary of outlaying more costs to get professional advice at a time when they are counting every cent.

Franchising though has some rules and regulations that need to be observed and the best way to ensure what you are signing is a fair agreement is to get expert legal advice from franchise experienced lawyers.

Accountants who understand the ins and outs of franchising are also invaluable advisors who can steer you away from a dud deal that will see you lose money. n

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FRANCHISE BASICS

IT’S THE

REAL DEAL A franchise agreement is a business contract that requires your full attention.

CHRISTINE LAU Lau Legal

S

•

tarting a new franchise is similar to starting any business.

The only additional legal document is a franchise agreement between the franchisee and the franchisor, which sets out the rights and obligations of their relationship.

• • •

Once you have identified a new franchise territory, what should your next steps be? Doing research, or due diligence, is a fundamental part of preparing to be a business owner.

PRELIMINARY ENQUIRIES Conduct your due diligence investigations with respect to the proposed franchised business.

You will need to find out about: • set-up costs, capital and ongoing costs • competitors in the market, market trends and issues

products and services offered by the franchise brand, their diversity marketing campaigns, customer feedback the percentage margin earned on the main product and service over the recent years suppliers and their terms of trade.

FROM LEASING TO TRAINING PREMISES LEASE Take steps to find out important details about your lease agreement and the commitments you sign up to.

You’ll need to ascertain the terms of any premises lease such as tenure, rent and outgoings, maintenance obligations and obligations upon vacation of the lease such as make-good requirements.

Find out which are the landlord’s installations at the premises and whether those have been maintained to the standard under the lease.

An important point to note here is to

ensure that the term of the lease is aligned with the term granted under the franchise agreement.

INTELLECTUAL PROPERTY A franchisee has access to the franchisor’s intellectual property. But you’ll need to know some of the details before you sign your agreement so you understand the parameters of the franchise branding.

For example: • What are the distinctive logos, trademarks or signage for the product or services offered?

• Does the franchisor own the brand and has a full rights licence been granted to you?

• Are there similar brands in the marketplace?

BUSINESS ASSETS, PLANT AND EQUIPMENT What assets, plant and equipment are to be included in the sale? You’ll need to

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FRANCHISE BASICS

know if these assets are owned by the vendor. Perhaps some of this plant and equipment is subject to lease agreements?

FRANCHISEE TRAINING What training will be offered by the franchisor?

THE FRANCHISE AGREEMENT The right to operate a franchise derives from the franchise agreement you sign with the franchisor. You will need to understand your rights and obligations as a franchisee, as all the terms of this agreement are binding on you and define the operation of your franchised business.

Some of the important issues/terms you need to be aware of are: THE TERM How long will you have the right to operate the franchise for? Do you have the option to extend your franchise for a further term? You will need to factor this into your investment decision and note also that you should negotiate a further lease term to align with this.

THE INITIAL FRANCHISE FEE AND OTHER UPFRONT FEES Initial franchise fee: This is a one-off payment to acquire your rights to operate the franchise.

Training fee: Where training is required and provided by the franchisor, you will be required to pay a training fee before you start training and get approved as a franchisee.

THE TERRITORY Is your allocated territory suitable for

the franchised product in light of the demography and existing competitors?

Do you have the first right of refusal to acquire other territories offered by the franchisor when they become available?

THE ONGOING FRANCHISE FEE AND OTHER FEES Franchise/royalty fee: What is the ongoing franchise fee you need to pay? Find out how this is calculated. It is usually expressed as a percentage of gross revenue (it will be defined in the agreement).

Marketing fund: You may be required to contribute to a marketing fund maintained by the franchisor, usually expressed as a percentage of gross revenue.

IT licence fee: This is applicable where you are required to use a particular IT system necessary for the franchise group.

Staff training fees: If you or your staff require training during the term of the franchise or where required by the franchisor, additional fees are usually payable.

Assignment fees: When you seek to sell your franchised business during the franchise term, there is usually a fee payable to the franchisor, expressed as a fixed fee or a percentage of the sale price.

YOUR OBLIGATIONS TO OPERATE THE FRANCHISE Your rights to use the intellectual property of the franchise system Are you clear on what your rights and restrictions are in using the franchisor’s branding and other logos etc. of the products/services?

How and where do you obtain your inventory, materials for your products/services?

Are you required to purchase certain products and/or materials from the

franchisor or its nominated supplier?

What does the franchisor or the nominated supplier/s charge for the products that you need in your business? Have you factored this cost into your evaluation of the franchise business?

Do you need to maintain a certain level of inventory? If so, is the level viable for your business?

Equipment and capital costs Are there equipment and other capital costs, whether one off or maintenance costs, that you need to be aware of?

TERMINATION AND CONSEQUENCES OF TERMINATION What occurrences will constitute default under the agreement? Find out the remedy periods granted for you to rectify a breach before the franchisor will have the right to terminate your franchise.

WHAT HAPPENS UPON TERMINATION OF THE FRANCHISE? It is important to note that a franchise agreement is a binding legal document which sets out the entire agreement between the parties, just like any other business contract. You should obtain both financial and legal advice on the franchise agreement before signing on the dotted line. n Christine Lau is a commercial, corporate and property lawyer with more than 26 years’ experience. She provides practical and strategic advice to business clients to help them address immediate issues while also factoring in the long-term goals and vision for their business.

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FRANCHISE BASICS

GETTING YOUR FINANCES

IN ORDER

Finance essentials you’ll need to know to get a bank loan.

STEVEN WHITESIDE BlueRock Finance

Y

ou are ambitious and looking for a new challenge, but you don’t want to join the rising number of small businesses that fail. The opportunity to take control of your schedule, career path and work environment is appealing, but what about the obvious risks an inexperienced small business owner must face?

A franchise seems like the ideal compromise. You’ll be your own boss but with the security of an established framework.

Plus, there’s the benefit of training, expert advice and a tried and tested system of doing business.

Now you’ve made your decision to go into a franchise and perhaps you have gone so far as choosing a franchise system. It’s still early days, try not to get too emotionally invested. Approach your purchase with optimism but be realistic.

Reputation is vital to your franchisor, so they’ll do everything they can to help you accomplish your goals. Part of that process is making sure you aren’t overburdened by your financial commitments. The onus is

on you to prove to your franchisor that you have the capacity to meet your financial obligations.

Unless you are lucky enough to have a large amount of cash on hand you are going to need finance from a bank or other lender. Australians traditionally love to hate banks; we think of call centres, endless paperwork and red tape but there’s a lot you can do to make the process a lot less painful.

We often think lenders are negative and pessimistic but that’s not true. Like franchisors, they are actually keen to see

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FRANCHISE BASICS

Take your time and don’t be rushed because errors will erode your credibility.

Good preparation is key to enhancing your application’s success

businesses grow and succeed. They just want to make sure you are going to be able to make the repayments, and no one wants to take on a loan that they are unable to pay back.

GET YOUR DUCKS IN A ROW Don’t approach the task of preparing your financial information with dread.

This is a fantastic opportunity for you to do a rigorous evaluation of the business.

You will be able to challenge any unrealistic expectations, anticipate any problems and make a reliable assessment that will help you decide how this investment is going to work for you.

Banks are cautious and slow-moving so everything you can do to accelerate the process will work in your favour.

This is your chance to sell yourself to the lender so present an accurate and organised picture. Take your time and don’t be rushed because errors will erode your credibility. Good preparation is key to enhancing your application’s success; if you need to amend figures or supply additional documents you will delay approval.

START WITH A BUSINESS PLAN This provides the lender with a comprehensive glimpse into your business strategy, purpose and the method of accomplishing your goals. Aim for an honest, accurate and upfront financial summary of your franchised business.

Ensure your plan includes a compelling summary of the background and skills the key managers and support personnel possess. This will comfort the bank that the business will be run successfully.

The lender does not need to be presented with a thesis; focus on quality rather than quantity and keep it concise.

You have the advantage of a franchise disclosure document and it contains a lot of the information you require to create your business plan. Your franchisor may help you build your business plan or provide a template if you can’t find one online.

A good business plan will calculate: • set up costs • forecast profit and loss • offer cash flow projections • provide a forecast balance sheet.

Use these figures to calculate the amount you need to borrow and estimate your loan repayments. It is very important to ensure your cashflow is as robust and realistic as possible, with all the relevant assumptions underpinning it fully disclosed. Be as detailed as possible when it comes to these (e.g. staff levels, stock levels, seasonality).

PERSONAL DOCUMENTATION • Provide asset & liability statements as well as a summary of your personal income outside the proposed business.

• Bank statements can provide a picture of your financial position and proof of personal income, savings, loans and credit card debts.

• If someone is guaranteeing the loan provide that information too.

SPEAK TO AN ACCOUNTING EXPERT Before you go to the lender seek out expert advice and look for accountants who understand franchising. Ask them to look over your business plan, they will offer you a rational and unbiased opinion.

They should prepare your personal balance sheets based on the information you provide.

It’s a good idea to shop around for the best loan to suit your needs. Comparing lenders is time-consuming and complicated; finance brokers understand the market. We look at the big four business banks but may also be able to secure a more suitable loan from a less traditional source (or sources) such as a Fintechs or peer to peer lenders.

Now you have done all your preparation and obtained some initial advice from the experts you need to evaluate your personal circumstances. If the figures don’t add up and there’s no margin for error, don’t be afraid to put the brakes on your franchise dream.

You can look at managing your personal finances by paying down debts and accruing savings, examining more affordable franchise systems or waiting for changes in the market. It won’t happen overnight, but it will happen, and when it does your patience will be rewarded. n Steven Whiteside is director of Business Finance Broking firm BlueRock Finance based in La Trobe Street, Melbourne.

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BE PART OF THE SUCCESS STORY QUEST FRANCHISES NOW AVAILABLE With 170 locations, Quest is Australasia’s leading apartment hotel operator. Due to significant growth, Quest now has several franchise opportunities across Australia. Become part of the success story and manage your own hotel business following Quest’s proven format, a robust model developed and honed over the last 30 years.

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FRANCHISE BASICS

HOW TO MEASURE YOUR MARKETING

While marketing is a partnership between franchisor and franchisee, there’s plenty you can do to get the most out of any campaign and increase your chances of success.

KELLY NIKOLAKOPOULOS Sport Star Academy

M

arketing makes up an essential component of any business. Get it right, and you’ll have a strong brand compared to your competitors and an ongoing stream of customer enquiries. Get it wrong,

and you’ll be scratching your head wondering why the phone isn’t ringing.

When it comes to the franchise sector, marketing is a partnership between the franchisor and the franchisee. Both

parties have a key part to play. In most franchise systems, franchisees contribute a percentage of their turnover to what’s called the national marketing fund. Every single franchisee in the network will benefit from this fund.

For the most part, this fund is invested

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Don’t want to work weekends?

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Easy-to-use systems Our franchisor develops a fantastic and easy to adopt new owner take over which would allow anyone with passion and drive to purchase and manage your business. They also provide all the back system which includes social media, marketing and IT support that allows me to feel confident to recommend purchasing a Kwik Kopy store.

Emmanuel - Kwik Kopy Bondi Junction

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kwikkopy.com.au

FRANCHISE BASICS

in national campaigns the franchisor will decide such as TV, radio, national promotions or digital campaigns.

Franchise partners are also expected to develop their own marketing plans and programs within their selected territories and this commonly is known as LAM or local area marketing. Local area marketing is essential to the growth and success of the franchisee within their community and aids in building brand awareness, developing relationships and creating leads that will ultimately result in sales.

Successful marketing in any industry or segment comes down to understanding your target market, defining your objective, planning and consistency.

A question commonly asked is, can marketing campaigns be measured? The answer is yes, they can. The best ways to evaluate the success of a marketing campaign can be explained as follows.

WHAT ARE THE CRUCIAL MEASUREMENTS? Have a clear objective! What is the purpose of your campaign? Is it to create brand awareness? To generate leads? To increase sales? A defined objective and purpose allows you to be clear in what you’re trying to achieve and gives you something to refer back to.

What’s your budget? Set aside a reasonable amount for the marketing campaign and try to stick to it. The budget for local area marketing campaigns is from your own investment, not from the national marketing fund.

Always have a multi-channel approach. So don’t rely on one channel to do all the work for you. For example, if you’re trying to increase brand awareness within the local community, investing all your campaign budget on Facebook campaigns is probably not going to get the results you’re after.

Investing in a combination of Facebook ads, print and a community driven initiative would be a better way to approach the campaign.

WHAT SYSTEMS AND PROCESSES ARE REQUIRED? Being part of a franchise network means franchise partners benefit from existing brand assets, programs, systems and marketing collateral. They can use these assets to set up their individual campaigns. It’s most likely other existing franchise partners would have tried to

do a similar marketing campaign to you, so use the support around you to help and guide you in your planning. Never suffer in silence!

Follow this helpful five-step planning process to avoid a marketing crisis.

1. Concept. What’s the objective of the campaign? How and why is this campaign going to benefit you and your business?

2. Education. How are you going to educate your customers and prospects on this campaign? This stage is your planning framework, keeping it aligned to the campaign objectives and marketing channels to execute the campaign as effectively as possible. This stage takes time and thought.

3. Implement. It’s time to launch!

Always stay on top of the campaign, making tweaks if required and if possible.

4. Evaluate. This is really important, even if the results exceeded your expectations. Feedback is critical in small business and this is your chance to understand how you can improve for next time.

5. Leverage. Take advantage of your results (more on this below).

WILL THE FRANCHISOR HELP YOU? Yes, absolutely. It’s in their best interests for you to do well, so they will help support a campaign and work with partners in idea generation. This also extends to a financial investment if the franchise partners are seeking a financial contribution and the idea is good enough for the franchisor to support.

TIMING It’s a broad generalisation but most marketing campaigns have a life cycle of six to eight weeks. Regardless, you need to give your campaign enough time in the marketing process to be seen, experienced and to get in front of your customers or prospects.

In the marketing world, there is a well-known concept called “the rule of seven” meaning prospects need to hear your campaign at least seven times before they take action to buy your product or service. However, in this current era of thousands of marketing messages slapping us in the face every day, I’m sure that seven is more like

20! Despite that, this concept provides context around the importance of campaign consistency and timing.

FINALLY, WHAT DO YOU DO WITH THE RESULTS? Firstly, go back to the objective. Did you achieve your goal? Depending on the objective, the results usually look like content, customer leads, customer data, phone enquires or sales.

Leveraging and repurposing these results can include a variety of things such as: CONTENT: If your business was featured in local press, social media or other channels you can repurpose this by sharing it within your local database, instore, digitally or through your own social networking. This gives your business credibility. These days content is king so share, share and share some more! Most of the time you can repurpose this content into a Facebook ad campaign.

CUSTOMER LEADS: Call/follow up these leads ideally within 24 to 48 hours.

Include their details in your sales funnel and use to remarket. Always keep in mind that a prospect does not turn into a paid customer straight away. Think of every lead as a way to build new relationships – these always take time and consistency.

PHONE ENQUIRIES: These offer a perfect opportunity to talk to your customers and get to know them.

SALES: Nothing beats the feeling of closing a sale. Ensure you provide your customers with the best customer experience so they become return customers.

Didn’t get the results you expected from your marketing campaign? Don’t worry.

Find out why the campaign didn’t work through your evaluation and feedback process and go again. Most importantly, never give up. n Kelly Nikolakopoulos is director of marketing at Sport Star Academy franchise. Kelly is one of the Top 30 Franchise Executives for 2019.

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FRANCHISE BASICS

YES,

you can achieve those goals!

How to gain confidence in your business so you can hit your targets.

W

hat would you need to develop business confidence for your franchise?

For most of us, great training is essential. That’s because when you’ve done all the homework and committed to an exciting new adventure as a franchisee, it’s still all new and unfamiliar. Even if you bring industry experience to your business there will be new processes, systems, rules and, on top of that, business ownership, to manage.

Training – building business confidence – is fundamental.

David Wilkinson, InXpress Asia Pacific franchise sales director, says helping a franchisee gain business confidence can be challenging, especially when they are entering a new industry and/or new role.

An ongoing blended learning approach is crucial, he suggests.

“At InXpress, we understand that learning is not just an event. Learning is happening all around us, all the time through informal learning. InXpress is continually evaluating our entire learning strategy but has placed a new emphasis on informal learning strategies to keep the franchisees engaged and involved in learning.

“Our franchisees develop a level of business confidence when we keep them connected to content, the business and to others that can help them learn and grow.”

ALLAYING FRANCHISEE FEARS Business confidence comes from understanding how to deal with the unexpected or unknown. Wilkinson says it’s only natural for brand new franchisees to be anxious about their responsibilities.

“If you’re buying a franchise on Friday and starting on Monday, I’ll ask, ‘Are you nervous?’ Everyone says yes. And you should be. If you’re calm and collected after making such a massive life change, maybe you’re not taking it seriously enough,” he points out.

“If you’re nervous, you are uncomfortable so you’re in a position of learning, and that’s good because the next 12 to 18 months will be a huge learning curve,” cautions Wilkinson.

“Some of the fears are ‘What happens when I get face to face with a customer for the first time?’ Sometimes the fear is ‘What if they say yes?’ It’s easy to handle a no, you’re in and out in five minutes. Another fear is ‘What if they ask questions I don’t know the answers to?’.”

At this point Wilkinson references what he calls iceberg options. As you would imagine, most of us deal regularly with the tip of the iceberg.

“I don’t know everything. We don’t know everything. So we teach our franchisees where to find the answer and who to turn to.”

CASE STUDY: BOOTCAMP IS JUST THE BEGINNING InXpress is a business-to-business freight and logistics service. Starting out in this type of industry is quite different from opening the doors to a cafe or a gym. Business confidence is particularly important to business service franchisees, who have no tangible products or assets to attract customers.

That’s why in a two-week bootcamp that marks the start of InXpress training for newbie franchisees, a full five days is devoted to business confidence. But the lessons learned are equally applicable to any franchise operation.

The first five days of the fortnight are about learning systems and technical aspects of the business. InXpress brings in a mix of trainers to coach, including partner carriers to educate franchisees about products and services.

The second five days, devoted to

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FRANCHISE BASICS

WHAT TO THINK ABOUT BEFORE YOU BUY Wilkinson suggests prospective franchisees take stock of the strategy for continued learning at their potential franchise. mindset sales, are managed by the internal training team of David Wilkinson, business performance manager Alan Brackenbury, and Bobby-Jo Monro, operations and training manager.

Apart from the passion for personal development through training, the success of the learning process comes from setting really clear expectations, says Wilkinson. He often cites a Mike Tyson quote, “Everybody has a plan until you get hit in the mouth”.

Says Wilkinson, “In a business based around cold calling, you’re going to have to deal with lots of rejection from day one. It’s what you have to deal with on a daily basis. We teach franchisees how to keep their mindset in the right space.”

Openness and transparency about what to expect before they sign up is a crucial step in franchisee success in training, he points out.

“We bring franchisees in throughout the process to share their experiences. It’s really beneficial to hear from the mouths of franchisees, that’s a little bit of confidence. The other thing we do in 52 weeks of onboarding [integrating new franchisees into business] is constant contact. We’re talking three points of contact every week, and then a group call with the onboarding team.

“One thing I think we do really well is harbour communities of franchisees in different steps of the journey.”

The seven new franchisees who participate in any onboarding bootcamp will be forever linked as a class and put into

a WhatsApp group so they can share their failures and successes. The peer-to-peer learning is a significant element of continual learning for the franchise network, says Wilkinson.

InXpress mixes up the novices group with an experienced franchisee able to add some balance to the conversation.

There are three distinct franchise groups in the logistics network.

First up is Onboarding, which is expected to be a 12-month process although some people do graduate early.

Heart of the Network caters for the middle 60 per cent of franchisees who require less intensive support and don’t need three calls a week. They might be employing a staff member or looking to sign up offshore support.

“We’re looking for and starting to build different skill sets,” says Wilkinson.

The high performing 20 per cent of the Network sits in a Top Gun group. “They are growing exponentially and their skill set is very different. They might need help with self-management, scaling the business differently, or boosting automation so they can step out of the business.”

In addition to any phone call mentoring sessions, franchisees learn about business through the business and quarterly reviews, which are all numbers driven.

There is financial and business planning early on. Wilkinson talks of “firing the CEO” in the first 12 months and building margin or revenue from the start.

“I think it’s quite a relief for new franchisees that you don’t have to wear the

THINGS TO THINK ABOUT ...

• How does the franchise promote learning through social networks or web-based collaboration?

• What kind of performance support learning does the franchise have in place?

• Does the franchisor offer a well-developed mentoring and coaching program outside of its formal learning program?

• Does the franchisor provide manuals, job aides and templates that are easy to access and use?

• Does the franchisee have access to experts in the industry?

“These are some of the questions that a new franchisee should consider before purchasing a franchise, because confidence in their new venture will come from access to information and the ability to continually learn,” says Wilkinson.

CEO hat for the first year.

“What you have to do is produce income, ask great questions, and consult with clients. You’ll be doing the ‘do’.” n

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FRANCHISE BASICS

NO WORRIES!

Ready to buy a business but nervous about staffing issues? Overcome common recruitment anxieties with these simple tips.

CHRIS MUIR-SMITH HR Dept

T

he “war for talent” has become a bit of a cliché, but the reality is a successful business will always have a series of systems and processes in place to attract, retain and manage its workforce. The simple fact is that there’s a direct correlation between the ability of a business to attract, retain and nurture high calibre employees and the bottom line.

The satisfaction of your current workforce and your business’s reputation as an employer can play a significant role in whether your business is viewed as a desirable employer. Therefore, getting your employer branding and employee value proposition right can see the best candidates seek you out.

Employer branding can be thought of as a marketing tool, much as a business

markets its services or products to customers. So while as a franchisee I am part of the HR Dept franchise and linked to all that branding represents, I also have my own employer brand, determined by how I work with and treat my employees.

Whether or not the community views your business as a good, reliable employer or one with a high turnover of staff has an impact on your employer branding.

Customers have a choice in who they buy from and prospective employees have a choice of who they work for.

An Employee Value Proposition (EVP), on the other hand, defines what an employee will expect to receive in exchange for the skills, capabilities, experiences and value they bring to your business.

A successful recruitment process will depend on how well you plan to attract and retain the right candidate. You should

always consider your hiring motivations as you start the planning process for any recruitment campaign. It’s one thing to realise it’s time to expand your team because you have a busy season coming up in a few months and need the extra support. It’s another thing entirely to realise that busy season is upon you and you need extra help right now.

So, what is involved in a recruitment process?

SEVEN STEPS TO ATTRACTING TOP EMPLOYEES There are seven basic steps in attracting the best candidates for your business: 1. Define the role.

2. Create a job description and selection criteria.

3. Determine how candidates will apply

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FRANCHISE BASICS and be assessed against the selection criteria.

4. Advertise the vacancy.

5. Shortlist and interview candidates.

6. Complete reference and qualification checks.

7. Appoint the best candidate for your business.

Once you have made an offer of employment to the best candidate and your new employee becomes part of your team, you should have a well-structured induction in place, that will support your EVP and introduce your new employee to your business processes and policies, working environment and other team members.

A well-structured induction process will not only reduce the turnover of your workforce, it will also increase productivity (with a positive impact on your bottom line).

Your workforce will have a clear understanding of what is expected of them and why and how their role will have a direct impact on their employer’s bottom line.

Retaining and nurturing high calibre employees can be another concern for a business owner. So any successful business owner should consider employee engagement initiatives that encourage retention and loyalty. The value of an employee increases the longer they stay with their employer. As time passes, their knowledge and experience continue to grow, making them an essential piece of a workplace.

They build relationships with other employees and customers that are vital to the success of any business.

The value of an employee increases the longer they stay with their employer. As time passes, their knowledge and experience continue to grow, making them an essential piece of a workplace.

RETAINING GOOD STAFF However, getting the most from your workforce will also require you to actively manage their performance. This could be recognising employees who are performing well and counselling those who are not. Managing performance can assist you in determining if your employees have the right skills and attitude, or identify areas for further training and development.

If an employee is underperforming, current best practice is to provide them with an understanding, in writing, of their performance issue, including when you expect this to be rectified.

You must, however, provide your employee with the time and support to improve their performance or conduct.

This can be via the offer of further training or an opportunity to improve their skills. You are legally required to advise your employee of the possible consequences if they do not reach their required performance level.

Employing staff for the first time can be daunting but you can gain confidence by understanding the processes of recruitment and retention. As a franchisee you’ll be well placed to get any extra support too, so find out whether your franchisor offers any programs or advice for this crucial aspect of running your own business. n Chris Muir-Smith is HR Dept franchisee of Rockingham, Peel and Kwinana in Western Australia.

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FRANCHISE BASICS

NAVIGATING THE

FRANCHISE E-FACTOR

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Discover the six stages of a franchisee’s journey and how you can ride the ups and downs of a franchise relationship.

GREG NATHAN Founder of The Franchise Relationships Institute and author of Profitable Partnerships.

M

any years ago, when I was a franchisee, I travelled a path that almost every other franchisee I have met has also travelled. The places this path leads to are not physical, they are psychological in nature, and include emotions such as hope, joy, disappointment, frustration and renewed confidence.

Franchisees beginning their journey are likely to also travel along this path. In so doing, they will fall under the spell of what I have dubbed the Franchise E-Factor.

A MESSAGE TO FRANCHISEES AND FRANCHISORS The Franchise E-Factor is not a mental aberration or something to fear. It is simply a natural maturing of the relationship a franchisee has with their franchisor as they gain greater competence and confidence in running their business.

Franchisees with a commitment to working through the ups and downs of life running their business will travel through six distinct stages. With some effort and self-awareness, most people move through these stages relatively painlessly. For others the path is full of interpersonal strain and resentment. A minority will get so stuck they will give up, and either walk away or sell their business.

If you are a potential or existing franchisee, you might find it useful to use this model to make sense of the frustrations you will feel from time to time in your role as a business owner who wants independence yet can’t quite have it.

If you are a franchisor reading this, a word of warning. What I am about to describe should in no way be used to justify poor leadership or bad business practices, nor to cover up a franchise model that cannot generate a reasonable financial return for competent franchisees who work hard and follow your systems.

As you now read through the six stages, it will become clear why I call this the Franchise E-Factor.

1. THE GLEE STAGE “I am very happy with my franchisor.

They obviously care about my success and have delivered all they said. While a little nervous, I am excited about my new

business and full of hope for the future.”

Initially, franchisees are filled with glee. Along with their decision to buy a franchise comes the anticipation of whether things will work out, and of course the hope of making lots of money.

During the opening stages of the business a franchisor will also be busy providing encouragement and support to their fresh, motivated franchisee. Like a wedding ceremony, the speeches at opening ceremonies of franchised outlets usually contain profound commitments such as: “We will always be here for you”; “You are the reason for our existence”; or “If you have any problems at all, just call and we will be there”.

Positive emotions run high at this stage. There is a great sense of achievement for everyone as the numerous hurdles in establishing the business have now been cleared.

The glee stage covers the lead-up period to buying into the franchise, and will usually stay with a franchisee for between three and 12 months, depending on their past business experience.

2. THE FEE STAGE “Although I’m starting to make money, these royalty payments are really taking the cream off the top. What am I getting for my fees?”

This second stage kicks in as the franchisee gains more of a handle on the business’s finances. It comes from a growing appreciation that profit is the result of sales minus expenses. At this point the franchisee may become sensitive to royalty, marketing or other fees, which they see as annoying expenses that eat into their profits.

Questions such as “What am I getting for my money?” will surface, especially when they review their cash flow and profit and loss statements. At this stage satisfaction inevitably drops. Sceptical comments from well-meaning family or friends who challenge the value of these fees can feed a franchisee’s doubt and push them into the fee stage.

3. THE ME STAGE “Yes I am successful. But this is largely due to my hard work and commitment to the business. I could probably have achieved these results without the franchisor.”

As a franchisee moves into the me stage, he or she will typically be thinking

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FRANCHISE BASICS their success is due purely to their own hard work and effort. This natural tendency to take the credit for the good things is referred to by psychologists as the “self-serving bias”. It comes from attribution theory, which explains the thinking process we go through as we search for the best explanation for events that happen to us. It also suggests we are not as rational as we think.

When we perform well or achieve something, we tend to attribute this to our inherent skills and personality. We take the credit. But when we make mistakes or don’t perform to expectation, we tend to blame outside circumstances or other people.

The human ego has always been a master at playing with our minds – giving us reasons why we are right and others are wrong, why we are good and others are bad, why we are smart and others are stupid, and so on. While a strong ego feeds our determination and helps us to function under pressure, it is also causes most of our interpersonal problems.

The self-serving bias tends to be strongest when franchisees are in the me stage. They will attribute their wins to their own hard work and initiative. But if things

are not going well, the franchisor is inevitably blamed. (By the way, franchisors can also fall prey to the self-serving bias, taking credit for the success of new initiatives, but blaming franchisees if these initiatives don’t work!)

The Franchise E-Factor can help both parties make sense of the strains that will inevitably occur as their relationship moves from dependence to interdependence, with people choosing, rather than feeling compelled, to participate.

4. THE FREE STAGE “I don’t like the restrictions my franchisor is putting on me and feel frustrated at their constant interference. I want to be able to do what I think is right for my business.”

As a franchisee’s business confidence grows, so does their drive for independence. A franchisee at this stage might feel resentful having to follow the franchisor’s standard operating procedures, especially if they believe these are unnecessary or hampering the profitability of their individual business.

The free stage is characterised by a need to break free of restrictions and limitations, and test the system’s boundaries.

The franchisee might, for instance, deliberately fail to comply with certain procedures to see what happens, or try to break free of their contractual obligations under the

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5. THE SEE STAGE “I can see there is a bigger picture here.

And I do acknowledge the value of some services provided by the franchisor. I appreciate that if we all did our own thing the brand could be damaged and we could lose our competitive edge.”

Conflict in relationships seldom goes away by ignoring it. For a franchisee to move to the see stage there needs to be some frank and open discussion, with both parties listening carefully to each other.

Previously unresolved disagreements may need to be revisited and some steam let off. Mistakes and misunderstandings will no doubt have occurred on both sides.

Acknowledging and accepting these can help people let go of the past and agree to focus on a fresh start.

The franchisor might need to be more open to involving the franchisee in future planning or appreciating their specific needs. If the franchise network is being managed fairly and effectively, the franchisee will generally come around to seeing that without consistency and adherence to systems, the strength of the group would be lost. It is this shift in perception that characterises the see stage.

6. THE WE STAGE “I am looking forward to working with my franchisor to make the most of our business relationship. I need some specific assistance to develop my business further, and I have some good ideas I want them to consider.”

From the see stage there is a natural progression to the we stage – a move from independent to interdependent thinking.

The franchisee becomes more aware of the need to manage his or her ego, and

recognises that greater success and satisfaction will come from working with, rather than against, the franchisor.

To reach the we stage a franchisee needs to be mature, objective and commercially minded. Most importantly, they must be profitable. If a franchisee is losing money and feels their franchisor is not interested in them or responsive to their needs, they will rattle the cage for change.

Franchisors who want their franchisees to move to the we stage must show concern for franchisee profitability, make competent decisions, and be fair and consistent in their dealings.

Franchisees who have negotiated their way through the franchise relationship journey to the we stage are a franchise network’s greatest asset. They will often be quiet achievers who keep one eye on their profit and one eye on cultivating healthy business relationships, not just with their franchisor but with their suppliers, peers and, of course, their customers.

A NATURAL PROGRESSION The Franchise E-Factor is based on the natural progression many relationships in life move through – from dependence, to independence, to interdependence. If you think about your close personal relationships, such as with your partner or children, you will recognise some parallels here.

The Franchise E-Factor can help both parties make sense of the strains that will inevitably occur as their relationship moves from dependence to interdependence, with people choosing, rather than feeling compelled, to participate.

I have great faith in the ability of the franchising model to deliver superior success and satisfaction to all parties in business, providing the business model is sound and people manage their relationships effectively. Good luck. n Greg Nathan is a leading researcher and global thought leader in franchising. He is a business psychologist, founder of the Franchise Relationships Institute, and author of several best-selling books, including Profitable Partnerships, available from www.franchiserelationships.com

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FRANCHISE BASICS

franchise agreement.

Franchisees in this stage can also become vulnerable to the influence of people inside or outside the network who are looking for allies to further their own agenda. Another established franchisee might want to pressure the franchisor to give them more power or concessions; a lobby group may be recruiting for members; or a legal or consulting firm might be looking for new business.

If a franchisee stays in this stage for too long, they can become negative, distracted and divisive. Others might start to avoid them and their business will inevitably suffer, creating further agitation.

FRANCHISE BASICS

FIVE LESSONS

IN ASSESSING A FRANCHISE Before you buy a franchise, check out these top tips to help you pick the right business.

MICK KEOGH Deputy chair, Australian Competition and Consumer Commission

I

f you are looking to buy a franchise, a recent review of food franchises has uncovered some concerning practices that could impact you (the buyer).

The Australian Competition and Consumer Commission’s (ACCC) findings are relevant to all types of franchise businesses. As with any business, there can be risks and rewards in franchising. Read on to learn how to detect poor practices and protect your investment.

The Franchising Code of Conduct sets out requirements for the franchising industry to follow. Under it, the franchisor has to give certain documents to a buyer when they are considering purchasing a franchise. This includes the franchise agreement, disclosure document, information statement and a copy of the Code. These documents can help with your research to decide if franchising in general, or the particular franchise, is right for you.

The ACCC enforces the Code in line with its Compliance and Enforcement Policy. As part of our role, we undertook compliance checks on 12 different franchisors in the food services sector. We found five key things: • most franchisors made it too difficult to contact former franchisees • most franchisors did not adequately disclose what essential goods were subject to supply restrictions

• most franchisors had supply restrictions, did not share rebate benefits directly with franchisees, and could set maximum retail prices that the franchisees could charge • some franchisors did not sufficiently disclose key unavoidable ongoing costs such as wages or rent • 40 per cent of prospective franchisees do not get independent, professional advice before buying a franchise.

• Based on our review, we have developed five key tips for someone looking to buy a franchise of any kind.

1. TALK TO FORMER FRANCHISEES You won’t get a realistic idea about franchising without talking to former franchisees about their experiences.

Franchisors must give you a disclosure document containing the contact details of former franchisees from the past three financial years unless they receive written notice from the franchisee requesting otherwise. You then have 14 days (sometimes more) to make contact.

If a franchisor deters you in any way from making contact, this is a big warning sign to walk away. If a former franchisee is contactable but doesn’t want to talk, this may also be a warning sign.

In our review of franchisor documents, we found only one in three of the franchisors consistently provided contact details for former franchisees, like mobile

numbers and personal email addresses. If you aren’t given contact details that make it easy to make contact, you may want to reconsider the franchise. Contacting current and former franchisees is vital as it allows you to test what the franchisor has told you, and to get another view on the site’s past performance. For example, if it has been a franchisor-operated site, past performance may not reflect what a franchisee could achieve.

2. UNDERSTAND WHETHER YOU CAN SHOP AROUND FOR ESSENTIAL GOODS AND SERVICES In franchising, a franchisor can specify where you must buy goods and services that you will use to operate the franchise business. This is called a “supply restriction” and is usually legal. Supply restrictions are common in franchising as they can help ensure minimum product quality standards across the franchising network.

It is important to know if you can only buy certain goods or services that are essential to running the franchise from limited suppliers – for example, if you’re running a bakery franchise and you can only buy flour from one supplier.

Our review found that most franchisors had supply restrictions.

However, seven of the 12 franchisors didn’t provide adequate detail

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5. GET ADVICE, AND MAKE SURE IT IS MORE THAN JUST LEGAL ADVICE

about what goods and services were restricted.

If the disclosure document you get from a franchisor does not clearly state the type of goods or services that have supply restrictions, you should ask them for more information. If they are unwilling to provide the information, you should reconsider the franchise.

You should also speak to current franchisees to verify what you’ve been told about supply restrictions and how they work in practice.

3. UNDERSTAND WHETHER THE FRANCHISOR CAN SET A MAXIMUM PRICE FOR THE THINGS YOU SELL Our review found most franchise agreements contained a clause allowing franchisors to set the highest price that you can charge for the goods or services you sell. This is often used in promotions that apply to the whole franchising network, for example, a promotion selling cups of coffee for $3 with the aim of securing new customers.

This arrangement may result in an overall loss on the promotion for some franchises in the network. This can be due to input costs that stay the same, such as coffee beans.

In our review, we found maximum retail price clauses were common, as were supply restrictions, and rebates that go

to the franchisor, not the franchisee.

Supply restrictions, and rebates that are not shared directly with you, can make inputs (like coffee beans) cost more or result in inflexible costs, as franchisees can’t shop around for cheaper beans.

Maximum retail prices, supply restrictions and franchisor rebate arrangements show just how important it is to understand (before you sign up) that there can be a lot of restrictions imposed on you when running a franchise business. If you sign the franchise agreement, you will have to comply with these contract terms as long as they are not unfair. 1

4. KNOW THE COST OF RUNNING YOUR POTENTIAL FRANCHISE To understand if franchising is a viable business option you must know the costs of running the business.

Under the Code, franchisors must disclose certain costs. However, our review found that one in three franchisors did not sufficiently disclose key unavoidable costs such as wages, rent and inventory. These are basic costs essential to running most franchises.

If these aren’t listed in your disclosure document or are understated, it could be a big warning sign that you aren’t getting proper information on costs.

Our review found at least 40 per cent of prospective franchisees did not seek any independent professional advice before entering into a franchising agreement.

This is very concerning, given many franchises can cost hundreds of thousands of dollars just to set up.

To help get a realistic view of how the franchise works and whether you can get a return on investment or draw a wage, you should obtain independent advice from professionals who are experienced in giving franchising advice.

It is important to seek legal, accounting and business advice. Getting one type of advice is usually not enough. A lawyer will not be able to advise you on business longevity, business growth or return on investment.

ACCC RESOURCES AND OUR ROLE Visit the ACCC website to read our Disclosure Practices in Food Franchising Report.

The ACCC enforces the Competition and Consumer Act 2010, which includes the code and the Australian Consumer Law in accordance with its Compliance and Enforcement Policy.

The ACCC has produced new online resources (including videos) for prospective franchisees. Some resources (including short videos) are translated.

Our Quick Guide to a Franchise Disclosure Document includes more warning signs you should be aware of.

The information in this publication is for general guidance only. It does not constitute legal or other professional advice, and should not be relied on as a statement of the law in any jurisdiction.

As it is intended only as a general guide, it may contain generalisations. You should obtain professional advice if you have any specific concern. n 1 The Australian Consumer Law protects small businesses from unfair contract terms in standard form contracts. This can include franchising agreements. More information on unfair contract terms can be found on the ACCC website.

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2020

Before you buy, understand what is involved in selling on your franchise.

W

hen you buy an independent business, it is yours to sell on, when and how you see fit.

However there are some significant differences in the transactions around buying and selling a franchise.

It might seem crazy to be thinking so far ahead when you are only just considering your buying options. But as a potential franchisee, how you get out of your business is important.

The number one difference between selling an independent business and selling a franchise is that the franchisor commonly has to approve an incoming franchisee.

That makes sense. When you buy your franchise business approval is an accepted part of the process - whether it’s a brand new or greenfield site, or you are taking over an established business. So flip this and put yourself in the place of the franchisor.

Your fellow franchisees rely on the franchisor to maintain the good name of the franchise, and to ensure new franchisees will pay their way and have the best chance of success. Poor trading practices and failing businesses are bad news for the whole group.

The good news is that there are rules in place to guide the process. These start with the franchise agreement, which is particular to each brand, and will outline any conditions and the particular process required for a sale.

THE FRANCHISING CODE OF CONDUCT

There is a governing regulation for the Australian franchising sector too. This is the Franchising Code of Conduct and it outlines the circumstances in which a franchisor can reject a potential buyer.

The sale of a franchise is described in the Code as the transfer of franchise agreement. The Code states “A franchisor must not unreasonably withhold consent to the transfer of a franchise agreement.”

However, there are circumstances in which the franchisor can refuse consent.

For instance if the buyer: • is unlikely to meet the financial obligations of the franchise agreement • does not meet a ‘reasonable requirement’ of the franchise agreement for the transfer • doesn’t meet the franchisor’s selection criteria • won’t agree in writing to comply to the franchise agreement • hasn’t provided a written statement that he or she has had a ‘reasonable opportunity’ to understand both the Code of Conduct, and the particular franchise disclosure document.

There are also commitments the franchisee has to fulfil for the franchisor to allow the sale. The franchisor may reject the transfer if the franchisee: • has not paid, or arranged to pay, outstanding debts to the franchisor • has not remedied a breach of the franchise agremeent According to the Code, there may be other unlisted reasonable circumstances in which the franchisor can withhold consent.

THE FRANCHISOR’S RESPONSIBILITIES

The franchisor will be assumed to have consented to the sale if it doesn’t refuse in writing within 42 days of the request to sell. If the franchisor asks for further information, it has the same period to approve or reject the buyer.

If the franchisee doesn’t get any written notification, the Code assumes consent is given - and it cannot be withdrawn.

However, consent can be revoked if the franchisor has followed the correct process, and written to the franchisee within 14 days explaining the franchisor’s change of mind.

Remember, a franchisor must be provided with all the relevant information so it can make an informed decision.

RIGHT OF REFUSAL

Some franchise agreements give the franchisor the first right of refusal. This means the franchisor can buy the business on the same terms and conditions being offered to your buyer. If this is the case, the sale to a buyer can only go ahead if the franchisor does not take up this offer.

IT’S NOT JUST THE FRANCHISE AGREEMENT

There are likely to be other rules that have an impact on the sale process. For instance, if the franchise operates from leased premises you will need to obtain the landlord’s consent to transfer or re-sign the lease.

Any financed equipment deal needs to be paid out or transferred to the incoming franchisee.

Usually a franchisor requires the buyer to sign a new agreement for what’s left of the franchise term.

Remember the seven-day cooling off period does not apply to the sale of an existing business.

It would be wise to get lawyers involved in the documentation and sales process, just as you will with your franchise purchase. n

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FRANCHISE BASICS

SELLING A FRANCHISE

FRANCHISE BASICS

HOW IT WORKS

FRANCHISE BASICS FRANCHISE BASICS

LEARNING THE

BUZZWORDS

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

ACCREDITATION

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

ASSIGNMENT

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

BUSINESS-FORMAT FRANCHISE

a business model with four criteria – a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil.

COMPANY-OWNED UNITS

locations run by the franchisor rather than a franchisee.

CONVERSION

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.

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

DUE DILIGENCE

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

this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. Franchisors often refer to a term with two options to renew as 5 + 5 + 5, for instance.

FIELD MANAGER

FRANCHISOR

an individual tasked with managing a group of

the franchisor grants permission to the franchisee to

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conduct business using its intellectual property, brand name, working methods and marketing.

GREENFIELD SITE a brand new site.

franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information.

REGIONAL FRANCHISEE

GOODWILL

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

INFORMATION STATEMENT

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

INTELLECTUAL PROPERTY

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

LICENSE

the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise.

LOCAL AREA MARKETING

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

MARKETING & ADVERTISING LEVY a regular flat or percentagebased-fee paid into a centralised advertising or marketing fund.

MASTER FRANCHISEE

a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied.

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

RENEWAL

once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further term. This process is bound by the Franchising Code of Conduct. There is no automatic right of renewal.

ROYALTY

fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support. It may be a flat fee or a percentage of sales or profit.

TERMINATION

the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement.

TERRITORY

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

TOTAL INVESTMENT

the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required.

TURNKEY FRANCHISE

MULTI-UNIT FRANCHISEE

a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.

OPERATIONS MANUAL

the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.

a franchisee who has been granted the rights to run more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators. the franchisee’s guide to operating the

WORKING CAPITAL

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FRANCHISE BASICS FRANCHISE BASICS

BUYING A FRANCHISE:

THE PROCESS

It can take three months or 18 months to find and open up a franchise.

This is the typical path that will take you to franchise ownership.

1. MAKE AN INQUIRY

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

4. CONFIDENTIALITY

The franchisor will ask you to sign a confidentiality agreement before sharing sensitive information with you.

Expect a copy of the disclosure document, draft franchise agreement and the Franchising Code of Conduct, plus an information statement.

Your franchisor might also send more commercially sensitive information to help you consider the viability of the franchise opportunity and build your business plan.

7. PROVE YOURSELF

You will need to create a business plan and show to the franchisor you have the capacity to take ownership of and drive this particular franchise unit.

A follow-up meeting will enable you to ask further questions following on from your due diligence, and for the franchisor to further quiz you.

2. FRANCHISOR RESPONDS

3. FIND OUT MORE

5. FIRST MEETING

6. CONDUCT DUE DILIGENCE

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

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

8. OTHER STEPS

Some brands can include a number of interviews, try-before-you-buy work experience or a panel review.

The franchisor might ask you to complete a profiling assessment.

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

This is a crucial stage, so take your time and be thorough in your research. You will need to sign a document confirming that you have received independent advice, or that you have decided not to do so.

Obtaining expert opinion from franchise-experienced professionals can save you money in the long term, so it is a worthwhile investment.

9. DON’T RUSH IT

The process to get from inquiry to sign-up could be a matter of weeks, or it could be months.

Buying a franchise is a significant, long-term commitment. It is important not to rush the process.

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THE

INFLUENCERS

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

W

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

tial in the company’s long term success.

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

CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR

A CIO has responsibility for the implementation, management and efficacy of information and computer technologies, vital in today’s digital world.

It’s the CIO who will investigate the benefits of any proposed technological change, and then implement the system - a website or inventory software, for instance.

The role is increasingly strategic and directed to gaining and maintaining the competitive advantage of a business.

The top ranking executive in a company, the CEO is focused on directing high level company strategy and growth.

In a smaller company, the CEO’s role includes operational business decisions and they may be much more hands-on on a daily basis.

In a larger business the CEO may have a position on the company’s board, and act as the link between corporate operations and the board of directors.

The founder of a franchise typically takes a CEO role.

CHIEF MARKETING OFFICER

CHIEF OPERATING OFFICER/ OPERATIONS MANAGER

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

In a franchise where the founder is the CEO, the COO may be the more experienced executive.

CHIEF FINANCIAL OFFICER

CHIEF INFORMATION OFFICER

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

The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations.

Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.

GENERAL MANAGER

A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations.

The responsibilities of the role may be incorporated into a CEO role.

FRANCHISE RECRUITMENT MANAGER

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

the CEO or MD in the final selection.

The franchise recruitment manager needs to meet internal recruitment targets and ensure franchisees are a match for the franchise brand.

BUSINESS DEVELOPMENT MANAGER/FIELD MANAGER:

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

TRAINER

The person or team who will set up a franchisee to run the business.

Responsibility for training may fall under operations or general management.

Training may involve technical skills, customer service, business basics, and operational procedures. The trainer may train franchisee staff.

PR AND COMMUNICATIONS

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

SUPPORT TEAM

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

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

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FRANCHISE BASICS FRANCHISE BASICS

30

THINGS TO CHECK R BEFORE YOU INVEST

Get set prior to your purchase with our easy checklist.

Just tick off the must-do items.

Are you confident in the franchisor?

Have you worked out your operating costs?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

Do you know the term of the agreement?

What training is available and who pays for it?

Is the franchisor compliant with the Franchising Code of Conduct?

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

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

Have you run a credit check on the franchisor?

Is the business operating from fixed or mobile premises?

What marketing will the franchisor implement?

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

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

What marketing is your responsibility?

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

Does the length of the lease match the franchise term?

What is the dispute resolution process?

Have you evaluated the financial returns?

What are the store fit-out costs?

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

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

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

Do you have an exit plan?

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

Are you restricted in your product purchase?

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

What royalties are there and how are they calculated?

Are you required to reach a minimum performance level?

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

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RESOURCES AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC)

The ACCC is an independent Commonwealth statutory authority which regulates the mandatory Franchising Code of Conduct (Code) and can investigate alleged breaches of the Code.

The ACCC is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.

Its role is to protect, strengthen and improve the way competition works in Australian markets and industries.

Visit: WWW.ACCC.GOV.AU

BUSINESS.GOV.AU

This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business.

New business owners can access the advice finder, events calendar, grants and assistance finder, a directory of government and business associations, planning templates, business videos, and business checklists.

Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training Visit: WWW.BUSINESS.GOV.AU

FRANCHISE COUNCIL OF AUSTRALIA

The FCA is the main body for representing franchisees, franchisors and service providers in the $146bn franchising sector in Australia.

Becoming a member of the FCA is a voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees.

Visit: WWW.FRANCHISE.ORG.AU

FRANCHISEBUSINESS.COM.AU

This is the online arm of the Inside Franchise Business publication. Both platforms are focused on providing essential advice and information for anyone looking to invest in a franchise. The website provides short and snappy business tips and news, video interviews, industry commentary and market reports.

FranchiseBusiness.com.au is also the official directory of the FCA and lists franchising opportunities available in Australia and New Zealand. Potential franchisees looking to move into the franchising sphere can explore opportunities that currently exist in the market and enquire about the franchisor or brand.

Users also have access to franchise consultants and advisors who

can assist prospective or existing franchisees and franchisors with legal, financial educational and training, IT and other services.

Visit: WWW.FRANCHISEBUSINESS.COM.AU

FRANDATA

FRANdata is the home of the Australian Franchise Registry which identifies franchise brands that have up-to-date franchise agreements and disclosure documents, and which have confirmed with the Registry their compliance with the Franchising Code of Conduct.

FRANdata also provides reports on the franchising sector.

Well established in the US since 1989, the business was established in Australia in 2013 to help the franchise sector address key strategic challenges and take advantage of opportunities available to qualifying brands.

Visit: WWW.FRANDATA.COM.AU

FRANCHISE.ED

Franchise.ED (previously Asia-Pacific Centre for Franchising Excellence) was created to help people find independent information and research on franchise best practice.

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

THE FAIR WORK COMMISSION

Fair Work Commission (the Commission, previously called Fair Work Australia) and the Fair Work Ombudsman (FWO) are independent government organisations that regulate Australia’s workplace relations system but have different roles.

The Commission is the independent national workplace relations tribunal. It is responsible for maintaining a safety net of minimum wages and employment conditions, as well as a range of other workplace functions and regulation.

The FWO enforces compliance with the Fair Work Act, related legislation, awards and registered agreements. It also helps employers and employees by providing advice and education on pay rates and workplace conditions.

Visit: WWW.FAIRWORK.COM.AU

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Phone: 1300 20 20 73 Contact: franchises@20perfit.com.au www.20perfit.com.au

Phone: 0418 136 156 Contact: Shayne Boogaard, NSW szh@7eleven.com.au Phone: 0408 175 534 Contact: Peter O’Hara, VIC pwo@7eleven.com.au

Start up costs: Mobile Under $50,000

Phone: 0407 877 674 Contact: Brett Reading, QLD bzr@7eleven.com.au Phone: 0436 658 741 Contact: Edris Mukarram, WA ewm@7eleven.com.au

PROFILE: 20PerFit utilises the latest electromuscular stimulation (EMS) technology. During a single 20-minute session, up to 90% of muscles are activated, making workouts more intense and effective. The system is totally wireless, allowing clients to perform exercises without restriction.

Unlike other EMS offerings, 20PerFit allows complete freedom of movement. Wireless capabilities also mean that 20PerFit can be a completely mobile service, making the system even more convenient and accessible. Manage bookings and track your sessions easily with our dedicated apps Franchise options to suit you – pay a flat fee or per sessions. As a 20PerFit franchisee you will have access to our full range of services and resources including marketing support, a 24 hour call centre, cashless payment system convenient and secure, Easy financial management – handle the money for you and training via the 20PerFit Academy – initial and ongoing training and support. Mobile and Studio options available.

FINANCE AVAILABLE

Start up costs: $400,000 to $1,000,000 PROFILE: 7-Eleven is the largest convenience and independent petrol retailer in Australia with more than 700 stores across VIC, ACT, NSW, QLD and WA. We opened our first store in 1977 and have almost 40 years’ experience in franchising.

When you buy a 7-Eleven franchise, you buy two things. Firstly a globally recognised brand name, and secondly a business system that works, one that provides more support than most other franchises. As our stores are open 24/7, support is just a call away 24 hours a day, 7 days a week.

We are looking for Franchisees who have the potential to lead their team to deliver an outstanding experience to customers. Learn more about what it takes to be part of a partnership in success with 7-Eleven, at www.franchise.7eleven.com.au

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au

Phone: 0438393939 Contact: Steven Sebbes – Franchise Recruitment Manager steven.sebbes@aussie.com.au https://www.aussie.com.au/

Start up costs from: $57,000 + GST

Start up costs: $150,000-$250,000

PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its 56 franchisees grow profitable and successful businesses.

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

PROFILE: Aussie has been helping everyday Australians find the right home loan for over 25 years now. With more than 200 retail stores nationally, in FY16 our team settled over 55,000 home loans valuing $18.2bn. Aussie has just been awarded the #1 Mortgage Brokerage in the country for the 6th consecutive year* An Aussie store offers franchisees the opportunity to build a successful mortgage brokerage leveraging the market dominance of the Aussie brand. A competitive one off franchise fee, upfront and trail commission, plus ongoing business support makes an Aussie Store an attractive franchise option *The Adviser top 25 brokerages

Phone: 07 5509 0000 Contact: National Franchise Sales Executive franchise@australianskinclinics.com.au www.australianskinclinics.com.au/franchise

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

Start up costs: Starting from $150,000 PROFILE: Put your trust in our 22 years’ experience and join the booming cosmetics industry today with an Australian Skin Clinics franchise.

Australian Skin Clinics are one of Australia’s longest standing medi-aesthetics franchise networks and are leaders in advanced skin treatments, laser hair removal, cosmetic injectables and fat reduction.

PROFILE: Bakers Delight are an Australian iconic brand. We’ve been baking bread since 1980 and currently have over 600 bakeries across Australia, Canada and New Zealand. We are the largest Bakery Franchise and a household brand name. At Bakers Delight we offer a large variety of business support, including:

We’re looking for highly motivated professionals to join our rapidly growing franchise network, with some fantastic opportunities now available!

• Business Operations • Marketing • Human Resources

Our promise to Franchisees is to remain at the forefront of the medi-aesthetic industry, by driving treatment and product innovation while continuing to grow and set the industry benchmark in excellence. Join the Bluevment today!

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

We’re the ones in blue!

Phone: 03 6210 5000 Contact: Shaun Goodwin sgoodwin@banjosrc.com.au banjos.com.au Start up costs: $250,000+ PROFILE: Banjo’s is an Australian company providing great wholesome food and excellent customer service in a welcoming, contemporary environment.

The bakery café leader in Australia, our success is in the baking – we consistently make the best quality products and our customers come back again and again.

Our customers are our focus and it is through our connection with the people in our communities we build a strong local following.

We have developed a strong sustainable business model and are continuing strong balanced growth whilst not losing touch with the small things that got us here in the first place.

• Independence of owning your own business.

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Be part of a successful franchise operation Access to Banjo’s specialised systems Buying power with key suppliers Marketing, HR and IT support Hands on business support and advice Continual product and systems development • Ongoing training and development • No qualifications are required however it would be beneficial to have a certificate in retail, management, baking or sales.

Banjo’s are seeking interest for Queensland, Tasmania, Victoria and New South Wales.

Contact us for more information.

• • • • •

• Property & Projects • Purchasing • Information Support

• Full Training • Financial & Commercial Management

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

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A-Z LISTINGS

Phone: 0447 891 158 Contact: Greg Prussia gprussia@bedshed.com.au www.bedshedfranchise.com.au

A-Z LISTINGS

Phone: +61 (3) 8593 45 46 Contact: Ali Kurtdereli boostinfo@retailzoo.com.au www.boostjuice.com.au/franchising

Start up costs: $500,000 - $750,000 PROFILE: Bedshed is an accredited franchise business model led by a professional management team. Backed by over 35 years of successful operation, Bedshed provides support, specialised advice, training and a proven structure which takes a lot of the risk out of running your own business.

With 37 stores in a growing network Bedshed is committed to partnering with franchisees to help them achieve business success, while offering flexible hours and a fulfilling lifestyle.

Start up costs: $280,000 - $450,000 PROFILE: Boost Juice is one of the world’s most famous and loved smoothie and juice brands.

With its winning combination of fresh fruit and love life ethos, Boost Juice offers a healthy alternative to fast food and strives to have customers leave feeling just that little bit better. For further information regarding franchising with Boost, get in touch with Boost franchising today!

Phone: 03 8727 9999 or 13 80 90 Fax: 03 9729 3266 Contact: Network Development Manger www.clarkrubber.com.au Start up costs: Clark Rubber Large Format Retail Stores: High Investment Clark Rubber Pool & Spa Shops: Moderate Investment Clark Pools & Spas Onsite Care Territory Vans: Low Investment

Phone: (02) 4587 6370 Fax: (02) 4587 8733 Contact: Lachlan Mitchell lachlan@chemdry.com.au www.chemdry.com.au Start up costs from $19,950 PROFILE: Chem-Dry is Australia’s largest and most successful carpet and upholstery cleaning franchise. Established in 1986 as a healthy and green carpet cleaning alternative, today Chem-Dry cleans more carpet and surfaces than any other company.

Using the company’s patented cleaning solutions and over 35 years of experience, our franchise partners are able to build successful businesses by making their customers’ homes and workplaces cleaner and healthier.

Our franchise partners are passionate about providing their customers with the cleanest and healthiest homes.

A Chem-Dry franchise is not just about residential and commercial carpet cleaning.

Our franchise partners also clean upholstery, leather, tiles and grout, and are specialists in water damage restoration.

PROFILE: Clark Rubber is Australia’s leading foam, rubber and pool retailer and is one of the most recognised brands in the Australian retail market today.

Clark Rubber offers three unique business options at different investment levels, all supported by business development, site selection and fit out assistance, a 4 week training program and ongoing marketing, IT and operational support.

Phone: 0437 632 738 Contact: Shanya Butler franchising@degani.com.au Degani.com.au

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.cowch.com.au

Start up costs: $200,000 +

Start up costs: $500,000 - $700,000 PROFILE: Cowch Dessert Cocktail Bar is Australia’s most innovative dessert and cocktail offering. Whether you’re looking to entertain the kids, spend a night with the girls, or just put a smile on your face, Cowch is the place to do it.

With an exciting and fresh feel, the Cowch brand is all about innovation and fun. Whether it be our kids dessert making classes, or cocktail making for a hens night, Cowch delivers on a single promise of creating memories for any group. If you need convincing, stop by and let us show you why we’re the brand to beat.

A-Z

PROFILE: You’ve got the café dream. You want your own successful business, where your friends, family and your community come each day. Degani has been helping people just like you, achieve their café dream for over 20 years. Born in Melbourne, Degani has grown to over 65 cafes across Australia, providing award winning coffee and delicious café quality food in a fully supported business model, that allows you the flexibility to add your personality and ideas to the way your café looks and what’s on the menu, so that it really is your cafe. Degani is the affordable business opportunity that stands beside you right through your journey.

Phone: +61 8 8267 2144 Contact: Andrew Phillips aphillips@focalpointintl.com www.focalpointfranchise.biz

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

Start up costs: $59,950

Start up costs: $150,000 - $350,000

PROFILE:

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

FocalPoint partners experienced individuals who are self-motivated and looking for a business opportunity that offers a lifestyle plus adds value to your community. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find out more about the FocalPoint franchise.

L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

PROFILE: Ella Baché is Australia’s largest skincare beauty business network and leaders in Skin Solutions.

The brand has been established in Australia for over 65 years and currently boasts over 150 locations nationwide.

As a Franchise Owner, you’ll be given all the support you need to grow your business and develop your skincare knowledge. Committed to educating and empowering our network, you can expect ongoing innovation, training, guidance and non-stop motivation to create a successful business from day one.

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Phone: +61 8 8267 2144 Contact: Andrew Phillips aphillips@focalpointintl.com www.focalpointfranchise.biz

Phone: 1300 869 196 Fax: 1300 659 675 Contact: Approval Centre Team info@franchisefinanceaustralia.com.au www.franchisefinanceaustralia.com.au

Start up costs: $59,950 PROFILE: The name Brian Tracy is synonymous with personal and professional success. Our excellent reputation and highly-regarded programs are unrivalled and will give you brand credibility, prestige and trust in your business community.

FocalPoint partners experienced individuals who are self-motivated and looking for a business opportunity that offers a lifestyle plus adds value to your community. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find out more about the FocalPoint franchise.

PROFILE: Franchise Finance Australia is a specialist funder to the franchise sector.

We have unrivalled knowledge of franchisees funding requirements as well as direct relationships with the franchise networks operating in Australia.

Founded in 2014 by directors with a background in franchising, we have remained committed to offering flexible funding solutions that allow franchisees to start a new business or improve their existing business.

Franchise Finance Australia can finance new & used equipment, fitouts and refurbishments, offering competitive rates, flexible terms and an easy online application process.

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

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

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

Start up costs: $200 - $500k

PROFILE: Home Caring provides an opportunity to be part of one of the fastest growing sectors in the Australian economy – disability, aged and dementia care. As the population ages, it is anticipated that the number of people over 65 will double in the next 30 years and the number of people accessing the NDIS will grow from 250,000 to over 475,000.

Proudly Australian owned, Home Caring provides professional and compassionate personalised care services in the home and is seeking community minded franchisees who can build a solid financial future combining their local networks and the national marketing of the Home Caring and Dementia Caring brands.

Home Caring is offering health care professionals a limited number of locations in a partnership arrangement, enabling more people to become involved in the industry at a lower entry cost. Full training and support is provided to ensure a successful, profitable partnership.

PROFILE: Our passion for coffee is at the heart and soul of everything we do, and we pride ourselves on maintaining consistently high standards across our entire network. Having great people who pride themselves on operational excellence is the key to delivering a strong brand, network growth and most importantly a loyal customer base.

We offer contemporary and modern store environments that have been embraced by our customers in a range of strategically selected locations, including central business districts, regional areas, airports and hospitals.

Phone: 0404003442 Contact: Dani Dani.c@infinitecycle.com.au www.infinitecycle.com.au

Phone: 0412 692 052 Contact: David Wilkinson Sales.au@inxpress.com au.inxpress.com/franchise-opportunities

Start up costs: $100,000-150,000

Start up costs: $64,950 + GST PROFILE:

PROFILE: Infinite Cycle is the most innovative fitness franchise to hit Australian shores in recent times. With state of the are technology and zero skill level required from the users this truly is the fitness class for everyone. Each of the three class varieties will burn between 500-800 calories all of which will be able to be accessed on the IC app.

As a business Infinite Cycle provides a unique offering as either a stand alone studio or a blot on to an existing gym or fitness facility.

Contact: Damien Sheehan franchise.AU@iwgplc.com regus.com.au/franchise PROFILE: REGUS, NOW WITH IWG A MAJOR NEW INVESTMENT OPPORTUNITY TO FRANCHISE WITH IWG PLC, THE GLOBAL WORKSPACE AND CO-WORKING MARKET LEADER 3 in 10 office buildings in every town around the world could offer a new franchise opportunity in the coming years through flexible workspace and co-working.

Imagine being given the chance to work with hugely successful established franchise industries such as restaurants or gyms at the beginning of their growth explosions.

This is an opportunity to diversify away from traditional franchise markets, and benefit from strong cash returns and attractive returns on investment.

Now is your chance to start a new franchise with IWG plc, the global operator of leading workspace providers, with brands to match every requirements and style, like Regus and Spaces.

IWG has been running successful workspaces for 30 years, ever since it founded the industry in 1989, and is present today in 3,300 locations, 120 countries and 1,100 towns and cities, with over 2,5 million customers. The flex-office market has reached a tipping point and we are seeking franchise partners to help drive the pace of our growth across the World.

InXpress is a global express logistics business with over 350 franchisees, located in 14 countries, providing consultative services and innovative software to SMEs. Founded in 1999, InXpress has a long history in managing successful businesses, with the know-how to train and support franchisees in running a sales and business management franchise.

InXpress has established strong relationships with global courier partners, providing access to highly competitive rates, leaving you free to concentrate on sales and build your own successful and profitable start-up business: • Low investment • High return • Recession-resistant • Scalable & flexible • Recurring, passive income • Based on a proven business model For more information about becoming an InXpress Franchisee, contact us now.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

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A-Z LISTINGS

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

A-Z LISTINGS

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

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

PROFILE: Start your franchising journey with Kwik Kopy, the leading provider of design, print and online solutions throughout Australia.

Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high quality services on-site. Owning your B2B franchise means operating business hours Monday to Friday so you’ll also enjoy work-life balance.

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

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

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

PROFILE: For over 27 years Majors Group Australasia have been the pioneer and market leader in the specialised and unique field of Gelato, Ice-cream and Desserts.

The Company has offices, a highly experienced sales force, training facilities and technical service teams in each state of Australia, both Islands of New Zealand and multiple facilities throughout the Philippines.

The mandate of the company has always been to strive to be the best in our field and to represent the finest manufacturers that the world has to offer.

All of the equipment, all of the ingredients and all of the knowhow on effective ways to generate healthy profits, margins and success in the industry, are available from more than 150 staff nationally and internationally, all of which are focussed entirely on the success of our customers.

Majors Group Australasia offer solutions for every sector of the market, from a café soft serve or shake solution, to a Gelato popup/Gelato store, up to a fully installed and managed, automated and intricate factory capable of producing thousands of litres an hour, and, everything in between.

The tried, tested and true ethos of “Your success is our success” has never been more alive than in Majors Group Australasia.

Majors Group, your partner in success.

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

Phone: 03 9604 9400 Fax: 03 9419 7735 robert@mmrb.com.au www.marshmaher.com.au

Start up costs: From $199,000 + GST PROFILE: Robert Toth is a recognised and published franchise specialist with over 30 years industry knowledge and experience.

Providing advice to: 1. International Franchisors and Franchising.

2. Master Franchising.

3. Dispute Resolution – Solutions and Strategies

4.

5.

6.

7.

8.

Franchisee Advice and fixed fee reports.

Sale/ Purchase of franchise systems.

IP/ Trademark advice.

Company structures and tax advice.

ACCC and Consumer Law advice.

A-Z We provide clients fixed fees based on the scope of work.

Contact Robert Toth on (03) 9604 9400 or by email at robert@mmrb.com.au

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

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

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

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

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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Phone: (02) 9438 1711 Fax: (02) 9438 1733 Contact: Nelson Lima info@ogalo.com.au www.ogalo.com.au

Phone: 07 3088 1232 Fax: 07 3088 1212 Contact: Franchise Sales Manager 0410 643 787 franchises@nightowl.com.au franchising.nightowl.com.au

A-Z LISTINGS

Start up costs: $250,000 – $330,000

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

PROFILE:

NightOwl is a national convenience and service station franchise system established in 1975 as Australia’s first 24-hour trading Convenience retail business.

Ogalo represents a vision in providing Australians with healthy, time convenient and great food.

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

The Ogalo story started in 1989 when Carlos founded one of Sydney’s most famous Portuguese Chicken shops, offering succulent chicken that was prepared in the traditional Portuguese way!

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.

Carlos perfected his signature chicken burger recipe that has made Ogalo the success it is today, with a cult following customer base like no other!

We are seeking motivated and hardworking franchisees with a determination to succeed!

Ogalo has expanded its menu to include an extensive range of meal options which includes grilled breast fillet burgers, wraps, fresh salads, marinated BBQ whole chickens, vegie and vegan options and much more!

Phone: +61 2 8212 4578 Contact: Vivian Rounsley franchising@powerfulpoints.com.au www.powerfulpoints.com.au Start up costs: Franchise fee: $65,000, Equipment, etc: $7,000, Working capital: $25,000

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

PROFILE: Australia’s Franchise System of the Year - Twice!!

Build your successful business future with us. We have a career path in business that we can tailor to suit you. As a Poolwerx Franchise Partner, you can start small or jump right in. Join us as a man in a van, progress to multi-vans, a retail store and vans and then in multi store. Or purchase an existing fast start mobile territory or retail mobile business. Whatever your journey, we will help you realise your vision.

Our one focus is to create a profitable partnership. We do that by matching over 25 years experience and outstanding support, marketing and business development systems to your energy and enthusiasm.

For more information, visit poolwerx.com.au/franchising.

PROFILE: PowerfulPoints is one of Australia’s leading visual communications companies providing services to mainly medium and large companies.

Working with a team of world class designers, copy writers and trainers we help clients create highly effective presentations, videos, motion graphics and other digital and traditional media. We help them communicate effectively in today’s multimedia rich world.

As a franchisee, your job is to do the sales and account service. You will have extensive training and ongoing support to help build a lifestyle and valuable asset in this rapidly growing market.

This is a limited opportunity, only around 25 franchises will be offered in Australia.

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

Phone: 02 9708 6959 Contact: Ammar Quettawala info@qtecx.com.au www.qtecx.com.au PROFILE: FRANQ is a franchise management solution that helps franchisors to thrive by automating business processes, solving franchise data challenges, and offering business insights. With this solution, the head office and field managers always have access to the latest information and are able to plan and track the business teams and franchise partners activities.

FRANQ features a centralised secure database, Recruitment, Operations and Compliance, Store Opener, Contracts Management, Analytics, Territory Management, Alerts, Dashboards and much more. Save time and cost by streamlining and automating your processes and manual tasks. With FRANQ, you can be confident of accelerated business growth in less time.

QTECX Solutions provides high-class consulting, implementation and integration services. With over 30 years’ global experience in designing flexible and efficient solutions, we go above and beyond to help you provide superior customer experience.

Phone: 07 3399 3000 Fax: 07 3399 3077 Contact: Patrick Mulcahy franchisedevelopment@shingleinn.com www.shingleinn.com Start up costs: $290,000-$360,000 PROFILE: Shingle Inn is a leader in the boutique café market. Established in 1936, against the backdrop of the Great Depression, Shingle Inn has been the perfect destination to share special times with family and friends for generations.

Luxurious high-backed chairs, warm rich colours and intimate booths create an atmosphere that attracts customers and Shingle Inn’s focus on superior quality food and coffee keeps them returning. With decadent cakes and delicious treats, made from traditional recipes in Shingle Inn’s central bakery, Shingle Inn prides itself on an exclusive product range that will not be found in any competing café.

Together with Shingle Inn’s constant focus on coffee excellence and freshlyprepared meals on our extensive menu, Shingle Inn is unsurpassed in today’s café culture. Contact us to find out why Shingle Inn could be the right coffee and food business for you. Patrick Mulcahy 0431 649 450.

Start up costs: $750,000 upwards PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of over 170 franchised properties across Australia, New Zealand and Fiji.

For 30 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended stay business travellers.

Quest is now one of the top 15 apartment hotel providers in the world, and widely recognised as the market leader of apartment hotel accommodation in Australia.

To become a Quest Franchisee you must be prepared to make a significant investment and commitment to the business, both personally and financially.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

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

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Phone: 02 9114 9955 Contact: Linda Sultmann enquiries@signwave.com.au www.signwave.com.au

A-Z LISTINGS

Phone: 1300 810 233 Contact: Kevin Lacey franchiseenquiries@snap.com.au Snap.com.au

Start up costs: $300,000 for a new centre

Start up costs: Starting from $65,000 PROFILE:

PROFILE: There’s a bright future in signage with our group growing 40% in the past 5 years!

SIGNWAVE is a recognised brand in the Australian B2B market for print and signage. With a product range that is so much more than signs, including vehicle graphics, interior décor, point of purchase, exhibits and displays. Get both lifestyle and financial returns with our B2B model and the support to have you be an expert day one. SIGNWAVE is part of FASTSIGNS the multi award winning North America Sign and Graphics franchise with over 700 centre worldwide. We have both new and resale opportunities available in key metro areas.

Passion is the backbone to any successful business. At SNAP, our passions are print and building businesses. As part of our network, you’ll be supported by a team with the expertise and passion to see your business reach its full potential SNAP is one of the most recognised brands in Australia with a reputation for fast, personalised service and high quality print & design solutions. SNAP caters to all business print needs, from marketing materials and business stationary through to signage.

If you want to learn more about becoming part of our Multi Award Winning Australian Franchise network, we’d love to hear from you!

Phone: 1300 781 735 Fax: (02) 9150 0837 Contact: Jose Bello jose.bello@soccajoeys.com www.soccajoeys.com.au/franchise

Phone: 0478 652 884 Contact: Shawn Tracey shawnt@sohq.com.au www.soulorigin.com.au Start up costs: $300,000 to $400,000 plus GST

PROFILE: Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 11 years We deliver our programs to over 35,000 children annually with over 300 classes in operation across the country.

Transform lives, including yours and become a Soccajoeys Franchisee.

We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives.

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

PROFILE: From humble beginnings in 2011, Soul Origin have grown their 3 stores to over 110 stores now trading nationally. With being awarded as one of Australia’s fastest growing franchises in 2017, Soul Origin have exploded onto the scene serving food that is good for the soul.

Soul Origin places a strong focus on fresh, quick and nutritious salads and sandwiches that are easy to grab and go, with equally impressive coffee that is made by in house trained baristas. Coupled with providing a customer experience that is fun, engaging and personal, the brand has found their unique stride in the market.

Soul Origin franchise partners are provided with on-going support from an experienced and dedicated team, who are passionate about your success.

Take the steps to join the Soul Origin franchise partner community today!

Phone: 1800SPLASH (775274) Contact: Kylee Clasper admin@splashswim.com.au www.splashswim.com.au

Phone: 03 9350 1555 Contact: Michael michael@spanishdoughnuts.com.au spanishdoughnuts.com.au

Start up costs: From $150,000 PROFILE: Spanish Doughnuts is the on-the-go Spanish inspired treat shop.

Our stores have been churning out made-to-order churro since 2008. Your choice of sneaky treats from our Original Hot Churro with chocolate dipping sauce, to hot filled ones like with jam, custard, chocolate, caramel & Nutella. Or our delectable coated ones like our Bombon range including our Triple Choc Bombon & Coconut Bombon.

Spanish Doughnuts is now seeking interests for Sydney CBD, Brisbane, Sunshine Coast, Melbourne, Geelong and Fremantle & Mandurah in WA.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

PROFILE: Splash Swim School is a boutique custom-made swim school. We have a state of the art turnkey fit out. Our pools are custom made to suit any size warehouse. We follow Royal Life’s Swim and Survive program that is accredited Australia wide.

Full training and support. An easy 1800SPLASH telephone number to remember.

Operation system and full support Splash have their own in house architectural service, project manage and building contractor that are registered in all states of Australia

Phone: 1300 991 104 Contact: Alex Johnson alex.johnson@swimart.com.au www.swimart.com.au Start up costs: Approximately $45,000 (for a mobile franchise), to $180,000 - $250,000 plus stock (for a retail store) PROFILE: Swimart is one of the most successful and well-established pool and spa businesses in Australia and New Zealand. Over 35 years, Swimart has cemented itself as the trusted name in pool care amongst pool and spa owners, with 76 retail & mobile outlets and more than 250 dedicated mobile service vans across Australia & New Zealand. It’s an exciting time for this industry, with Australia boasting the highest rate of pool ownership in the world. Swimart is well placed to take advantage of this growth. It has developed strong consumer brand awareness in Australia and New Zealand, and is renowned for its expertise, experience and great customer service

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

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

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos nicka@cheesecake.com.au www.cheesecake.com.au Start up costs: New store - $389,000 + GST PROFILE: The Cheesecake Shop is one of Australia’s favourite retailers and shares in the celebrations and happy occasions of millions of people each year with their signature dessert products. With over 200 stores across Australia and New Zealand and a two time winner of the Franchise Council of Australia’s Franchisor of the Year award, The Cheesecake Shop is one of Australia’s premier franchise systems.

Start up costs: $50,000 - $120,000 PROFILE: Established in 2009, Towncars Networks Australia provides executive chauffeur services for both corporate & private clients.

With a fleet of luxurious vehicles and accredited drivers, we offer our clients competitive prices and outstanding service.

Towncars low entry cost, allows new franchisees the opportunity to invest in exclusive areas in both Sydney and Melbourne. Work is not limited to your area, as most corporate jobs are to and from the airports.

Franchisees are supported by head office marketing and management. Tools of the trade include our in-house software along with our 7 Day Call Centre.

Phone: 0413 011 899 Fax: +1 416 646 0366 Contact: Greg Sweney opportunity@tutordoctor.com www.tutordoctoropportunity.com

Phone: 04 3909 4068 Contact: Sarah Oram franchising@unique-laser.com.au www.unique-laser.com.au Start up costs: $100,000 to $450,000

Start up costs: $60,000 PROFILE: Tutor Doctor is a leader in providing one-on-one supplementary education to students and adults through in-home tutoring. Tutor Doctor franchisees, who manage a team of professional tutors and work on the business rather than in it, follow an award-winning home-based business model that requires no educational background to operate.

Private tutoring is a multi-billion-dollar industry, and Tutor Doctor is experiencing one of the fastest growing international expansions of any educational company in the history of franchising. With over 640 locations around the world, Tutor Doctor has changed the lives of 300,000+ people by helping them achieve their academic goals.

PROFILE: Unique Laser is revolutionising the aesthetics industry…

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

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

Phone: 1300 193 178 Contact: Jayesh Kasim jayesh.kasim@valentabpo.com www.valentabpo.com.au/franchise Start up costs: $50,000 + GST PROFILE: Valenta BPO is a multi-faceted company that provides outsourced staffing solutions to hundreds of businesses across the globe, with a focus on reducing costs and improving efficiencies. We are currently offering entrepreneurs and industry specialists an exciting outsourced staffing franchise opportunity. Due to the varied nature of our services, our franchise is perfect for anyone who enjoys customer service and sales. This is a globally proven business model, with various income streams both one-off and reoccurring. Designed to minimise risk and maximise returns, a Valenta franchise doesn’t require a large investment in assets like prominent shopfronts or expensive equipment. This means you can be profitable sooner.

“My first week as a Valenta franchise owner proved profitable, with my first lead turning instantly into my first client.”

- Bill Savellis, Franchise Owner

Phone: 0467 007 304 Contact: Brian Barnard brian.barnard@xpressodelight.com.au www.xpressodelight.com.au Start up costs from: $49,900 + GST

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.

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.

Start up costs: $175,000 - $300,000 PROFILE: We make foods that add a smile to your day. Just one bite and you’ll know you’re eating something special; something reminiscent of your childhood.

A simple model with absolutely no baking in store; just filling, decorating and displaying. Our famous varieties include Boston Cream, Pineapple Ring, French Toast Ring, our signature Vanilla Glazed, PB & J, Raspberry Cheesecake and many others.

Our Hot Jam Doughnuts are freshly cooked to perfection and available all day long!

Together with our Specialty-Coffee created especially for Walker’s, our Classic Hot Dog flavours, our Traditional Milkshakes and our speciality Heritage Sodas imported exclusively by

A-Z Walker’s Doughnuts directly from the USA, you’ll find us an unbeatable and irresistible offering.

Franchising in Victoria and NSW with opportunities available nationwide!

L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

CONTACT GENERAL MANAGER DAVID STRONG ON 02 8224 8370 DAVID.STRONG@OCTOMEDIA.COM.AU

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A-Z LISTINGS

FINAL WORD

MYTH BUSTERS: I DON’T HAVE TO PAY FEES IF THE FRANCHISE LETS ME DOWN JANE GARBERROSENZWEIG Gable Lawyers

I

t’s a fact of life that despite the best intentions and solvency of any franchise system, not all franchisees are running a profit and the pressure of defaulting or shortfalls in income can place considerable strain on a franchisee.

Whether your franchise is a booming success or driving you headlong into a world of debt, the franchise agreement defines your relationship with the franchisor. Whatever the issues you may have with the franchisor or the way the system operates, you must still comply with the terms of your franchise agreement, including maintaining payments to the franchisor of any agreed royalties, management fees, marketing levies and any other fees detailed in the agreement between you and the franchisor.

What should always be remembered before signing any agreement, including a franchise agreement, is it forms a legal contract containing the rights and obligations of each party. And a contract must be followed regardless of what seems equitable.

BUT IT’S NOT FAIR ...

This hardly seems just if the cause of your downturn in business is a direct result of the actions of the franchisor.

However, the Franchising Code of Conduct (Franchising Code) is clear that when a party to a franchise agreement has a dispute or disagreement with the other, both parties must follow the guidelines of the dispute resolution process set out in the Franchising Code.

So if the franchisor does something that has a direct impact on your business, you, as the franchisee, can invoke the dispute resolution process. It should be remembered that involvement in a dispute resolution process does not excuse you

from your obligations under the franchise agreement, whether they are payment related, or in relation to performance or other requirements, and you must continue to uphold your responsibilities until the dispute is resolved.

This means that the Franchising Code does not allow the franchisee to withhold any payments from the franchisor and any withholding of payments would be considered a violation of the terms of the franchise agreement.

WHY YOU CAN’T UNDERPAY AS COMPENSATION In addition to the requirement for the franchisee to pay fees to the franchisor regardless of whether there is a dispute, most franchise agreements also contain a clause known as a set-off clause, which prevents the franchisee from only paying part of any fee owed.

Essentially, if the franchisor also owes you money, or you believe that some sort of financial compensation is owed to you as a result of the franchisor’s action, you cannot offset the amount you believe (or is) owed by the franchisor against the amount you owe to the franchisor. For example, if the franchisee owes the franchisor $5000 but the franchisor in turn owes $2000, the franchisee is not allowed to simply pay the difference of $3000. The franchisee must pay the full $5000 to the franchisor as agreed and contracted under the franchise

agreement. The franchisee would need to engage relevant avenues to try to obtain the $2000 owed to them by the franchisor.

It should also be remembered that if a matter is ever to reach a courtroom for a decision by a judge, the franchisee must come with “clean hands”. That means if they allege breaches of the franchise agreement and the Franchising Code by the franchisor, then they should not be guilty of a similar breach. Not paying fees would be considered a breach of the franchise agreement and although arbitrary, the judge may consider that due to their actions, the franchisee is not entitled to what they claim.

It’s important to be upfront with your franchisor about any concerns or financial struggles you might be experiencing; it can go a long way to avoiding unnecessary defaults, penalties and sleepless nights.

You’ll be in a stronger position if you know the conditions imposed on you by your franchise agreement and your rights and obligations. n Jane’s practice focuses on commercial law, franchising, distribution and licensing on a domestic and international basis, leasing, and the protection of intellectual property.

Jane is also adjunct lecturer at the College of Law and a board member of Awards Victoria.

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WE HAD OUR BEST YEAR EVER IN AUSTRALIA. NEXT YEAR WE’LL TAKE IT TO A NEW LEVEL. There’s never been a better time to join Mad Mex. Now with 70 restaurants in operation, we’re really moving up in the world.

Especially when you consider we recently opened in Singapore and are about to put a pin on the map in Malaysia, taking up residence in the legendary Petronas Towers.

We put it all down to delicious food that inspires bold healthy living - and a business model that continuously fuels the success of our franchisees.

To see if you have what it takes to join the team that’s on the up, contact us today.

madmex.com.au/franchise

We’re spreading our love of flame grilled Portuguese chicken with new restaurants in QLD, VIC, WA and Regional NSW. Customer centric and business minded?

Want to own your future? Enquire today: w ww.oporto.com.au / franchising