Inside Franchise Business Aug/Oct 2020

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

AUG/OCT 2020

ISSUE 33 VOL 03

Buy a franchise

for just $6,500!

Physio Inq reshapes its business model The Coffee Club’s new look 10 Aussie heritage brands Innovation on a plate - dessert brands are switching it up

Firm foundations

Brilliant tips for home-based franchisees

PARTNERS IN A FULFILLING CAREER Enjoy a fulfilling career on your terms when you become a 7-Eleven Franchisee.

By choosing to own a 7-Eleven store you can feel closer than ever to your local community with the continued support of an iconic brand and Australian-owned company.

FIND OUT MORE AT franchise.7eleven.com.au

WHAT ARE THE BENEFITS OF OWNING YOUR OWN FRANCHISE? • A career that offers flexibility.

• A personal connection to your local community.

• Being part of a company that’s focused on customer service.

• Supported site management and setup to get you started.

• A permanent support network and access to our corporate office.

• Ongoing merchandising assistance.

• A direct partnership with our operations team.

• Complete training and access to ongoing digital training content.

• 24-hour support through our support centre.

• Assistance from our broader team with book-keeping, managing payroll administration, and working with suppliers including fuel.

• Advertising and promotional support.

A PARTNERSHIP WITH CONTINUED SUPPORT As a 7-Eleven Franchisee, you’re supported every step of the way.

So if you’re considering a career change and would like to be part of an essential community service, get in contact today.

CONTACT DETAILS – FRANCHISE DEVELOPMENT MANAGERS Brett Reading, QLD

Peter O’Hara, VIC

Email: bzr@7eleven.com.au Mobile: 0407 877 674

Email: pwo@7eleven.com.au Mobile: 0408 175 534

Shayne Boogaard, NSW

Edris Mukarram, WA

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

Email: ewm@7eleven.com.au Mobile: 0436 658 741

FRANCHISING

When one door closes… another opens.

Have you considered a Mortgage Broking Business?

If you’re a professional looking to get a foot in the door as a Mortgage Broker, talk to Aussie.

We have the training, the support and a number of options to cater to your budget, big or small.

Go straight to Aussie Let us help you open the door to your very own mortgage broking business.

To find out more call us at 1300 361 397 or visit aussie.com.au/business-opportunities

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. © 2020 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

Your are the owner, not the Tutor 1-to-1 tutoring in the family home All ages and subjects National curriculum support Exam preparation Virtual tutoring also available

CONTENTS

REGULARS

LEADERSHIP

9 EDITORIAL 10 GLOBAL EYE 12 INSIGHTS 16 THE LIST 86 GLOSSARY 88 BUYING PROCESS 89 INFLUENCERS 90 CHECKLIST 91 RESOURCES 95 FINAL WORD

20 10 AUSSIE LEGACY BRANDS

32

24 SNAP UP THESE NEW IDEAS!

36 BEATING THE PANDEMIC

Heritage franchises are popular now.

Fresh-faced brands look to the future.

26 FLIPPING THE MODEL

A CONVENIENT FUTURE

7-Eleven CEO talks tactics and innovation.

Franchisees who started up in a crisis.

Physio Inq slashes its fees.

28 TWO’S COMPANY

How to run a business with your spouse.

30 NO TRADIE SKILLS?

Plumbing Bros has just the answer.

38 ESCAPE ROUTE

What’s the big deal about City Cave?

40 THE VEGGIE VIBE

Plant-based foods are on trend.

SPECIAL FEATURE

42 DAY IN THE LIFE...

How does a food procurement manager help franchisees?

62 WORKING FROM HOME

Brands, tips and advice.

SPOTLIGHT: FOOD

SPOTLIGHT: AUTO

FRANCHISE BASICS 68 4 WAYS TO FIND CAPITAL

How you can finance your franchise.

70 HOW TO FIND THE RIGHT LAWYER Top legal tips that will save you money.

44 TREAT FEATS

Dessert brands put innovation on the plate.

59 WHEELS OF FORTUNE Spotlight on tyre retailers.

SPOTLIGHT: AGED CARE SPOTLIGHT: BUDGET BUYS

74 BEFORE YOU TAKE THE PLUNGE Smart advice from the ACCC.

76 COMMON QUESTIONS IN MARKETING Get the basics under your belt.

78 HEAD HONCHOS

How your franchisor can help. Brilliant advice on handling HR.

84 FIVE THINGS…

About buying a franchise

53 YOUNG AT HEART

Aged care that delivers at-home services. franchise

60 6 BUDGET BUYS

Franchises with cost-friendly appeal.

AUG/OCT 2020 | 7 | WWW.FRANCHISEBUSINESS.COM.AU

WELCOME

How is franchising faring right now? How will it fare postCovid-19? These are important questions for anyone investing in a franchise business.

A recent survey by FRANdata for the Franchise Council of Australia revealed that a substantial number of franchisors had increased their level of support for franchisees during the pandemic.

The support on offer varies from developing new revenue streams to a greater awareness of mental health concerns.

Backing up the franchisors delivering this support is the Franchise Council of Australia. The FCA has stepped up its assistance and guidance over the last few months, ensuring franchisors are well-placed to enable franchisees to keep their businesses running.

There’s no doubt however that some elements of the franchising sector have been hit hard. Certainly across the board, independent, franchised and corporate businesses in hospitality, retail and tourism have had to dig deep to survive.

In the short term this is an ongoing challenge for the brands in these sectors, and some will come through better than others.

Of course other industries have thrived - notably couriers and logistics, handyman and other mobile services.

What the pandemic has served to show us is that some businesses are more vulnerable than others when a major setback occurs.

But it has also shown how franchisors and franchisees can work together to mutual benefit.

Darryn McAuliffe, CEO of FRANdata Australia, says “Franchise sector brands can demonstrate they can be resilient through this and this gives a point of difference. Good brands will actually have things to highlight.

“A lot of good brands have been able to demonstrate how genuine they are in supporting the success of their franchisees.”

So in the search for the right franchise, consider not just the industry the business operates in but how the individual brands have managed the Covid-19 restrictions. Find out what franchisees think of their franchisor’s support, how they may have helped each other, and how they are future-proofing the business model to be able to deal with an unexpected crisis.

The post-Covid-19 franchise sector will be packed with robust firms who have fought and overcome the challenges the pandemic has thrown at them. These businesses will be streamlined, competitive and flexible. They will have proved their worth.

Franchising has never had a better opportunity to showcase just how a network of businesses can back-up frontline franchisees. When it comes investing in a business an independent owner can never hope to access the level of research, experience and support that’s on hand for franchisees.

EDITOR

SENIOR ACCOUNT MANAGER

SUB-EDITOR

Advertising coordinator

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

Karen Gee

GENERAL MANAGER

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

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

Simone Lagudi P: 02 8224 8375 simone.l@octomedia.com.au

GRAPHIC DESIGN

Rozelle Carlos rozelle.c@octomedia.com.au

Sar a h Sarah Stowe Editor

OCTOMedia

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

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

AUG/OCT 2020 | 9 | 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

GLOBAL EYE

NEW DEALS, NEW BRANDS The news that counts in franchising.

POOLWERX SAVES FRANCHISEES $40,000 Poolwerx is slicing its franchise fee, saving each new franchisee $40,000 in their upfront investment.

The significant franchise entry discount applies to all new franchises granted from 1 July until 31 December 2020.

Instead of $99,800 it will only cost $59,800 to join the award-winning, global franchising brand.

Poolwerx founder and CEO John O’Brien said “Reducing our franchise fee makes economic sense – we want to make it as easy as possible for the next wave of small business owners to come through, which we know can help get the economy back on track.”

O’Brien has survived five economic corrections throughout Poolwerx’ 30 year history and knows how Aussies have turned to franchising in times of economic uncertainty.

Poolwerx operates a three-tiered business, from mobile van to retail store and hub. This allows franchisees to step in at any level and maximise dollar potential. n

US BRAND CYCLEBAR LAUNCHES IN AUS Aussies, get ready to rock your ride as US indoor cycling franchise CycleBar signs a deal to open at least 45 studios.

CycleBar takes those spin sessions to another level. State-of-the-art studios set the scene with high-energy playlists and rider-specific performance metrics. A CycleBar workout is a low-impact, highintensity 45 minutes led by instructors who are part coach, part DJ. CycleBar is head-quartered in California as part of the Xponential Fitness portfolio. Xponential Fitness has signed a master franchise agreement with Spin X Operations. Spin’s Matt and Candice Gordin, and Matt’s father Bill Gordin have

extensive experience in both the cycling and franchising worlds.

Matt Gordin takes on the CEO role for CycleBar Australia.

Franchisees can expect to invest upwards of $300,000, depending on a number of variables including the level of fitout, location and size. The ideal studio size is between 175sqm-200sqm to house between 30 and 50 bikes, and there are both standard and premium fitouts.

The first studio is expected to open in Currambine, WA in September, with recruitment for so-called CycleStars (instructors) already underway. n

NEW FITNESS BOSS Franchisees in 24/7 gym chain Anytime Fitness and Xtend Barre, the ballet-based studio business, can expect a doubling down of franchisor efforts under new leadership.

The franchisor which operates the two US-origin brands in Australia, Collective Wellness Group, has appointed a former leisure, entertainment and retail expert to take the fitness business to the next level.

Nicole Noye will be leading the group which in April shed the Orangetheory Fitness brand (this is now being handled directly from the US).

This means the resources of the newly slimmed-down group can focus on delivering support and growth for franchisees across Anytime Fitness and Xtend Barre.

Right now there are about 25 opportunities to snap up across the country in the high-profile Anytime Fitness business.

In total there are more than 500 outlets already around Australia.

At the newer and niche Xtend Barre, which combines ballet and Pilates-inspired moves for a cardio and flexibility workout, a similar number of studios are available to prospective franchisees. n

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MORTGAGE BROKING A $2.3BN INDUSTRY

MY HOME WATCH LAUNCHES MEGA PACKAGE Home services business My Home Watch has combined all its service offers into one super- package.

The model now includes Home & Office Cleaning, Window Cleaning, Lawn & Garden Care, as well as the original home watching services. There is just one franchise fee.

Natasha Morgan, franchisor and CEO said “We’re very proud that after three years of being the leaders in home watching services in Australia, we have been able to diversify, adapt and grow our My Home Watch brand into an essential multi service brand, by developing the My Home Services Group.”

My Home Watch enables home and investment property owners to make on-demand service bookings for property care and coordination of maintenance.

The launch of the My Home Services Group gives franchisees the opportunity to tailor their services according to their own preferences, and the demands of their customers. n

WE ROCK THE SPECTRUM KIDS GYM OPEN FOUR OUTLETS

An international children’s gym franchise is opening four new facilities.

We Rock the Spectrum is a franchise that provides sensory-safe play for kids with autism, special needs, and neurotypical development. Each gym features therapeutic equipment and sensory beneficial play opportunities.

Equipment is specifically designed for children on the spectrum, while providing all children with the sensory experience necessary for improved learning and neurological development.

The expansion plan is to have 30 gyms and five mobile gyms up and running around Australia over the next three years. n

It’s hard to predict how a sector will fare post-Covid-19. However theIBISworld industry report on mortgage broking in September 2019 largely stands true today, says analyst and author Yin Huey Yeoh, despite the onset of the pandemic.

Back in 2019 expectations for 2020 to 2025 were for a 2.4 per cent revenue increase over the five year period. That is a nice improvement on the far leaner growth trajectory in the five years up to 2020 which saw just a 0.4 per cent revenue rise, though that still equated to a respectable $2.3bn.

However the profit margins were expected to decline significantly with a 22 per cent drop this year.

Looking ahead, the sector is set to become more competitive with about 3 per cent more businesses joining over the next five years.

AUSSIE RECRUITING 200 BROKERS

Mortgage broker Aussie wants to recruit 200 brokers in 2020, good news if you are ready to be your own boss in a professional arena.

Aussie believes the Covid-19 crisis has emphasised the resilience of the business model and is keen to recruit talent from various skilled backgrounds.

The brand is also targeting executives and small business owners who are now looking for a professional change.

Aussie CEO James Symond said, “We see there is an opportunity for Australians from both finance and non-finance backgrounds, who may have recently been made redundant or stood down, to choose a new professional path.”

The mortgage brokerage is also offering cashflow support to each new successful recruit during their first six months.

“Our brokers are self-employed, however they are far from operating alone. We have always provided industry leading training, support, and mentoring to help them get their businesses up and running,” said Symond.

“We believe providing our newest brokers remuneration during this period will help give them the kick start they need to become successful and long-term brokers with Aussie.”

The bold expansion plan also includes a boost to retail stores from more than 210 outlets to 300 nationally by 2023. n

XPRESSO MOBILE CAFE RATED 4-STAR

Australia has its very first 4-star franchise rated mobile coffee brand. Xpresso Mobile Cafe has been recognised for its business transparency and franchise performance on the Australian Franchise Rating Scale.

Ratings up to 5-star are allocated following an independent and fact-based assessment across seven key categories of business.

FRANdata operates the rating scale and its Australian CEO, Darryn McAuliffe, revealed the review team was particularly impressed with the training program and how it positioned franchisees for success.

Xpresso’s boss, Jonathan Payne, said the business was delighted with the recognition – particularly as it has come during the pandemic.

“Rather than our business hibernating, our mobile cafes were able to quickly pivot and mobilise to meet the expectations of our customers,” he said. “ “Our focus is happy franchisees and our FRANdata rating shows we are on the right path but there is always more work to do.” . n

ON THE SIDE…

JOIN THE CONVERSATION

Ferguson Plarre adds meat-free Aussie pies Forty Winks partners Australian Made Red Rooster partners the Sydney Roosters My Home Watch heads to South Africa

7-Eleven launches plant-based food Donut King, Gloria Jean’s, Michel’s report customer rise IGA unveils delivery service

AUG/OCT 2020 | 11 | WWW.FRANCHISEBUSINESS.COM.AU

Why not follow us on social? @insidefranchisebusiness @insidefranchisebusiness @ifranchisebus

INSIGHTS

THE UPS AND DOWN OF

FRANCHISING How to make sense of statistics in the time of Covid-19

F

ranchising is such a broad sweep of business concepts, operators and industries that encapsulating trends and performance across the sector is a challenge.

What works for the coffee industry right now might not be helpful for the gym business, and have no impact on the courier industry.

However, there are some statistics that can shed light on what has happened in the past five years. IBISworld’s report on franchising was released in February 2020, before the pandemic really took hold.

So referencing the figures revealed in the report has to come with a caveat that the future looks different now.

Let’s look at the good news, the bad news, and how to manage expectations in franchising.

FRANCHISING STATISTICS Growth of 0.3% from 2015-2020 2020- 2025 growth was expected to be 1.3%

$181.8bn Revenue

$10.9bn Profit

1,344 Businesses

WHAT ARE THE DRIVERS?

The author Claudia Burgio-Ficca says Australians’ concern about repaying household debt could impede further growth.

The figures will change but these are the elements that affect the franchising sector:

Real household income

Consumer sentiment

Cash rate

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Average weekly hours worked

FRANCHISE SURVEY Which sectors reported improved business recently? QSR, maintenance, health, freight and baked goods related franchise systems were both resilient and optimistic, according to FRANdata’s Australian Franchise Sector “Pulse Check” Survey June 2020.

SERVICE IS KING Even before the pandemic struck, service-based franchises were projected to become more prominent in the industry. And as many of these businesses have continued to operate through restrictions, there’s likely to be more emphasis on these mobile and home-based operations.

CAFE CRISIS?

DRIVING SUCCESS Courier firms have been inundated with ecommerce deliveries as consumers switch their purchasing habits online.

Will it last? Well, trends suggest online retail has been the standout for many stores, and as this has been a slow burn for some time, it’s likely to continue.

The Covid-19 outbreak is expected to significantly affect the cafes and coffee shops industry, suggests analyst Matthew Barry. According to an IBISworld report revised in April, industry revenue “has been adjusted from a 0.3% increase to a 22.8% decline in the current year”.

Social distancing and self-isolation measures are also expected to limit demand in the current year, as many consumers are expected to shift to homemade coffee, such as instant coffee or coffee pods.

“Profit is expected to be constrained by weaker demand and mounting fixed costs in the current year.”

Anecdotally, business has been tougher in the metro CBD areas than in many suburbs as the shift to working from home reduces city footfall.

There is good news to be served up though.

Drive-through, takeaway and delivery have proved to be the stars of hospitality over the last few months as savvy firms moved swiftly to adapt to trading restrictions and introduced new ways to package up their food and beverages.

Source: Cafes and Coffee Shops in Australia, April 2020, IBISworld.

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u

INSIGHTS

FIT AND WELL? A mixed bag of results, with gyms and fitness studios taking a hit during the coronavirus crisis. According to Fitness Australia, the vast majority of businesses have seen revenues drop more than 40 per cent during the Covid-19 crisis.

However, online communications have helped keep gyms and trainers engaging with clients. And the current downturn is not deterring big investments in gym chains - Plus Fitness is being acquired for $18m by Viva Leisure, and in the US, Gold’s Gym has been bought by a European group.

On other fronts, wellness-focused brands like City Cave are flourishing - read the story on p38.

FRANCHISEE SUPPORT

The pandemic has seen franchisors step up their level of assistance for franchisees. The FRANdata Pulse Check for June 2020 revealed just how the franchising relationship is improving across the sector: franchisors are helping access government support, clarifying regulations, assisting with landlord negotiations, providing mental health support, boosting marketing, new products and services, fee reductions.

WHY BUY IF YOU CAN RENT?

BROKING THE DEAL It’s hard to predict how the $2.3bn mortgage broking sector will fare post-Covid-19. However the IBISworld industry report Mortgage Brokers in Australia in September 2019 largely stands true today, says analyst and author Yin Huey Yeoh, despite the onset of the pandemic.

Back in 2019 expectations for 2020 to 2025 were for a 2.4 per cent revenue increase over the five year period.

However the profit margins were expected to decline significantly with a 22 per cent drop this year.

Looking ahead, the sector is set to become more competitive with about 3 per cent more businesses joining over the next five years.

Revenue for the furniture, appliance and equipment rental industry has risen at a slow pace over the past five years, reports IBISworld. It estimated the total revenue in this sector for 2019 was $6.3bn with a profit margin of 20 per cent. The figures haven’t yet been revised, but this is a partially countercyclical sector which means uncertain or weak economic conditions tend to boost business for rental firms.

Source: Furniture, Appliance and Equipment Rental in Australia, June 2019, IBISworld.

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THE LIST

COFFEE TO GO

10 coffee franchises that are keeping Aussies fired up in the face of 2020 challenges.

W

e’re learning to live with limitations in business but that morning cup of coffee remains a firm favourite, even if it’s just takeaway.

Hudsons Coffee

The food and beverage industry remains highly competitive.

It’s worth checking out these brands to find out more about their franchise offer and profitability levels.

The chain began in 1998 when the founders returned from an overseas trip inspired to bring top notch coffee to Melbourne.

They started franchising in 2003 and today there are more than 65 franchisees across the network.

Hudsons is now part of the Emirates Group, with coffee shops at hospitals, and airports in Australia, New Zealand and Singapore.

Bar Bellaccino

Cibo Espresso

This business began in 2004 but owner Guy Thompson had been operating restaurants, cafes and espresso bars for years beforehand.

Coffee is at the heart of the business; not only has Guy honed his hospitality skills over the year, he has imported, roasted and sold coffee beans.

The franchise is a small chain building up its New South Wales presence. Bar Bellaccino cafes cost from $130,000.

Kiosk and shop models are available from this franchisor, which is part of the group which brought us Boost Juice. Investment in a kiosk is from $400,000 to $500,000; a shop will cost from $450,000 to $650,000.

The chain aims to deliver a premium coffee experience across its 33 sites in South Australia and New South Wales, and is expanding. u

AUG/OCT 2020 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

ADVERTORIAL

BECOME PARTNERS IN A FULFILLING CAREER WITH 7-ELEVEN Jatinderpal and Kamaljeet Cheema, (JC and KC), have joined 7-Eleven Australia as franchisees of 7-Eleven Wendouree. The pair arrived in Australia in 2008. After living in Melbourne for four years, they decided a tree change would give them the lifestyle they wanted.

“We lived in Melbourne for four years. We realised that life in regional Australia has lots of benefits. We chose Ballarat as it is a beautiful city, and moved here in 2012. Everything is great, schools, public hospitals, affordable housing, and a better lifestyle in general,” KC says.

The pair are excited by the opportunity to grow the new store with the support of the community.

“The community is lovely. Everyone knows each other and is there to support you to grow,” JC says.

The husband and wife duo are highly experienced in retail management, working for major organisations in Melbourne and Ballarat. As busy parents, owning a business was an attractive choice.

“We want a good lifestyle and flexibility to look after our son. Customer service is one of our strengths and we wanted to use that to benefit our family,” KC said.

“We had experience in retail and retail management but wanted to get into business for ourselves. We found that there was a 7-Eleven opening in Wendouree. It was the opportunity we were waiting for.

“We did more research on 7-Eleven, it’s a worldwide, reputable brand. The support and training you get are important.

There’s structure and support with recruiting and hiring. Being part of the 7-Eleven system is a good help for you to start the business.” JC says.

JC and KC applied to franchise 7-Eleven Wendouree in March 2019.

“Since we applied we’ve had lots of contact from the franchise development managers and state manager. The company has been supportive of us through the process which is there to make sure we were capable of giving 100 per cent to the store. Going through that process has given us more confidence in ourselves,” JC says.

JC also completed formal store leader training.

“The training once you have been accepted into the system is good. The eight week training is very helpful as it’s in person and in store. You learn the 7-Eleven way of doing things, as well as things to help achieve our goals.”

JC said the shift to a 24/7 convenience offer was not a big adjustment.

“We’ve been managers before, taking calls 24/7, organising shifts, doing what we can to make the store great. But if you are going to work really hard, why not do it for ourselves to give us a better return and a good future for our family?”

The two will work in the store, and wanted to ensure their team were equally customer focused.

“We’ve made sure we have a team that gives their best, they smile all the time, and give a great experience in a clean and tidy store,” KC says.

While every business comes with some risk, being part of the 7-Eleven network helps to mitigate that for JC and KC. “There are many benefits to franchising. You can make mistakes, so a well-structured system is important. You have professional advice and there’s someone you can call to get help to solve problems,” KC says.

“With a family, you need some security. The minimum guaranteed income support from 7-Eleven was reassuring,” JC says.

“I think that it’s really positive that you can see what’s happening in your store financially. You can see results and then reach that bit higher, working with your team to improve. We have competition but our customers tell us they are happy to come here as everyone is always really lovely,” KC adds.

Being able to share knowledge and get guidance from peers in the 7-Eleven franchise network was an added bonus.

“You can use the network, talk to others across the country and they will help you. It’s a like a big community. Someone said to us when we joined ‘welcome to the big family’ which was a very good thing for us,” KC concludes.

7-Eleven Australia is continuing to grow in regional Australia.

The next available regional opportunity is expected to be in Colac, Victoria.

THE LIST

Stellarossa Cafes

Degani

Arabica beans sourced from around the world are mixed to create Stellarossa’s coffee blends and of course baristas get extensive training, as do franchisees.

Expect a month’s training, split between head office and in-store learning.

The cafe chain cites $225,000 as a likely starting point for a franchise; franchise fees are set at 4.5 per cent of turnover.

Degani has grown from a bakery cafe in Melbourne’s Clifton Hill to a network of more than 60 outlets dotted around the country. It boasts of same stores sales growth of 8.25 per cent and sells 1700kg of coffee each week, based on June 2019 figures.

Franchisees can buy a kiosk, cafe or restaurant. The business has a bespoke design approach so each store creates its own look and menu.

The Coffee Emporium

Xpresso Mobile Cafe

More than 25 years in the business of hospitality gives this brand some kudos, and plenty of experience that can be shared with franchisees.

Expect to pay between $200,000 and $400,000 for a franchise - typically you’ll be signing up for a term of seven years.

There are 38 outlets in the chain, which serve up an award-winning coffee blend.

Australia’s 4-star mobile coffee business was ranked as a top performer this year.

It was ranked highly for its commitment to measuring and monitoring franchisee performance.

The business began in 2012, and has built to a network of 42 units. Capital investment is $25,000, vendor and equipment financing is available for the balance of $80,000. A franchise term is seven years with one option to renew.

The Shed The Shed boasts 19 outlets through New South Wales, ACT and Queensland, each one a quirky interpretation of an urban oasis, thanks to the brickwork and greenery.

Arabica blends are key to its coffee offer, and The Shed supports a co-operative in Columbia that provides 60 per cent of the beans used in its blend.

The Shed has also launched an online store full of coffee-related goodies.

Zarraffa’s Coffees With 92 stores today, Zarraffa’s has been in business since 1996. A franchise term is 10 years and newbie business owners undergo 12 weeks of training, including a three week trial period.

If you buy an existing store, expect to pay about $500,000 - a brand new drive-through site will cost upwards of $750,000.

Three Beans The franchisor puts food quality and ethics at the heart of this business which has been trading since 2006, and began franchising two years later.

It will cost between $200,000 and $400,000 to invest in a Three Beans cafe, and the franchise term is seven years. Today there are 24 outlets in the network. n

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Be at the heart of our success.

Thanks for your interest in becoming a Hudsons Franchise Partner.

As a thriving chain of over 100 cafes, our philosophy is simple – our partners are the heart of our ongoing success. For the past 21 years, we have put everything into every cup, bite or sip that we serve. And to do that, we’ve created lasting partnerships, enabling our franchisees to thrive.

So think of this as the first step in the journey to becoming a key ingredient in our next 21 years.

We look forward to taking the journey with you.

HUDSONSCOFFEE.COM.AU/FRANCHISING

LEADERSHIP

10 AUSSIE LEGACY FRANCHISES Heritage brands are popular right now, thanks to their proven ability to survive economic downturns.

Baker's Delight

T

here’s always a risk in business, but a franchise with a track record of trading success even in tough times offers a level of security not possible in a young business or an independent operation.

The Covid-19 pandemic has put safety and security top of mind for many Australians, so Inside Franchise Business has put together a list of wellestablished brands that have weathered ups and downs.

Investigating a home-grown heritage brand might be the way forward if you’re looking for a fresh start.

Andersens

ANDERSENS

FOUNDED 1959 | FRANCHISED 1980

Could this be more Australian? The flooring firm is still firmly rooted in its country town home of Gatton, west of Brisbane.

Back in the late 1950s the store was founded on principles of honesty, integrity and respect – and those philosophies remain today.

Andersens has been a privately owned business for six decades and has grown organically to 50 stores, predominantly in Queensland.

The average tenure at the floorcoverings chain is 14 years, with some franchisees well over 25 years and some 30 years.

Now it’s taking its customer-first approach along the east coast, expanding into northern New South Wales and looking to move further south along the eastern seaboard.

It might have a country nature but Andersens knows today’s customer is seeking fast and professional service.

The company backs up its promise to deliver top class service with the tools to achieve this – a well-stocked centralised warehouse, for instance, ensures there is stock readily available.

Rowan Hodge, Andersens CEO, tells Inside Franchise Business, “We have a positive growth mindset. We’re in top gear, looking for what’s next.”

And what’s been released in the past few months is Andersens’ augmented reality app. With the app, customers can scan in their room, test different floor coverings, save ideas, get in touch with an Andersens store for advice and make a booking.

Hodge says the business had been working on the app for 12 months before the coronavirus crisis catapulted the project into reality.

“This was a fight or flight moment: do we hibernate and weather the storm? Or do we fight? We chose growth.”

AUG/OCT 2020 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

BAKERS DELIGHT

FOUNDED 1980 | FRANCHISED 1988

It’s an Aussie institution that’s been on our high streets and in shopping centres for 40 years. There are an extraordinary 700+ bakeries across Australia, New Zealand, USA and Canada – in North America the business trades as Cobs.

It’s a family business: three years ago founders Roger and Lesley Gillespie handed over the reins of their business to daughter Elise and her husband David.

Roger Gillespie’s family had baking in their blood, so setting up a bakery in Melbourne’s Hawthorne was an obvious step.

The business took off, and within eight years the Gillespies owned 15 bakeries and saw the best path to growth lay in a new management structure, and in franchising.

Bakers Delight prides itself on good quality – behind the counter it’s good service and great bread; at the back end it’s transparent systems and benchmarking that help franchisees maximise their business opportunities.

Franchisees can learn everything they need to know, from bread baking to business profitability, through training and ongoing support.

Since 1999 Bakers Delight has been a partner of Breast Cancer Network Australia (BCNA) and supported children’s hospitals with its Bundraiser Day. Over the years it has raised millions through its Pink Buns sales for BCNA.

Banjo's Bakery Cafe

BANJO’S BAKERY CAFE

FOUNDED 1984 | FRANCHISED 1993

The inspiration behind the brand was to create a welcoming, comfortable cafe environment where customers could enjoy hand-crafted baked goods and lunchtime treats.

Today the bread is still made in a traditional, preservative-free way and more than 6.3 million customers visit a Banjo’s store each year.

What’s on the menu? Well, the everpopular pastries and Danish, of course, and plenty of new dishes.

The latest Banjo’s Bakery Cafe pie combo, Bangers and Mash Pie, is hot out of the oven to tempt Aussie customers into franchise stores over winter.

All 41 Banjo’s Bakery Cafe outlets will have the classic meat and veg combo.

Customers can purchase instore, online with click and collect, on Google ordering

CLARK RUBBER

FOUNDED 1946 | FRANCHISING 1993

Clark Rubber

It’s an iconic brand that has made the most of its niche market – selling rubber, foam and pool products. From water toys to mattresses, from modular pools to auto hoses, from matting to custom cut foam, from stoppers to sheeting, Clark Rubber has created a unique retail offer.

There’s more to the business, though, than a reputation for being “everything pools, foam and rubber”.

Trading for more than 70 years requires consistency, a good business system, great customer service and of course innovation to ensure the business meets contemporary needs.

Most recently the retailer unveiled its mobile model. Previously, vans were part of a retail hub. Now there’s the chance for franchisees to come into the chain with a low-cost mobile-only option.

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and soon on Uber Eats.

The franchise chain’s product development manager Marcel Schnitzer says innovation across age-old favourites could be difficult to pull off, but creating a connection between pastry and its consumer is always worth it.

The brand’s coffee blend is UTZ certified, a strictly controlled certification that requires good agricultural practices, safe and healthy working conditions, abolition of child labour, and environmental protection.

The chain now has stores across five states, a steady growth that it’s looking to continue as it expands the franchise network.

Franchisees can choose a 10-year or seven-year term – each has one option to renew. A minimum investment is $250,000 for a franchise.

The business model for mobile-only franchisees is set up around delivering onsite pool and spa servicing and maintenance.

Clark Rubber introduced an automated replenishment system to help franchisees better manage stock and cash flow at store level.

Franchisees also have access to a sophisticated software system that allows for more accurate pool-water testing, and therefore additional sales opportunities for franchisees.

There are more than 60 franchisees in the national network.

Franchisees get training in three parts: store operations, retail management and sales, and customer service. u

LEADERSHIP FERGUSON PLARRE BAKEHOUSES FOUNDED 1980 | FRANCHISING 1987

Now this is a heritage brand writ large, thanks to a European family baking tradition that spans more than a century.

Eliza Jane Ferguson opened her first bakery in Melbourne in 1901. Otto Plarre opened the doors to his bakery in 1911.

The two family firms merged into a super-bakery in 1980 to become Ferguson Plarre Bakehouses.

The chain is a firm Victorian favourite and it’s still a family-run organisation, headed up by Steve Plarre, great grandson of Otto Plarre and a fourth generation bakery boss.

Known for its Tiddly Oggies (Cornish pasties) and other pastry favourites, most recently Ferguson Plarre has branched out in plant-based foods, launching meat-free pies in June 2020.

Steve Plarre recently made the switch to a plant-based diet himself, making the move to understand more about the flexitarian approach to food.

“These days people are trying to eat less meat but they still want to enjoy pies and sausage rolls. We’re excited to answer the call of the wild for more plant-based options – especially two Aussie family favourites,” he said.

Earlier this year Steve Plarre was named the number one executive in Australian franchising.

So what can franchisees expect from this highly-awarded business entrenched in Victoria’s baking history?

Site selection, business support, four weeks initial training and a 26 week follow-up and support program are part of the franchise deal.

Ferguson Plarre takes the head lease on all sites, so it shares in the risk of each franchise.

It also operates a gross margin model.

It’s royalty-free apart from a 3 per cent admin rate and an upfront $40,000 franchise fee. The franchisor makes its money from franchisees purchasing wholesale products.

HYDRAULINK

FOUNDED 1945 | FRANCHISING 2013

Just seven years in franchising but a lifetime of experience in the hydraulic hose industry – that’s what you buy into with a Hydraulink mobile franchise.

This heritage firm has profited from its focus on a niche market, repairing hydraulic hose and fittings.

And there’s a demand across a vast number of sectors.

Hydraulink franchisees are on the road servicing industries such as road, rail and construction, logistics, warehousing, agriculture and fishing, mining, demolition contractors and the defence force.

More than 70 years after the business first began, Hydraulink has 400+ units operating across the Asia-Pacific region, with 115 in Australia.

Its tagline “Best under pressure” sums up the focus Hydraulink is taking. The 75-year-old firm is expanding its reach, gearing up for a customer-centric future and focusing on top quality service.

JIM’S MOWING

FOUNDED 1982 | FRANCHISED 1989

Jim’s Mowing is the original business that spawned an entire empire of home service and mobile franchise opportunities.

Founder Jim Penman started the gardening business while studying for a PhD and he expanded it by building up and selling on territories.

Jim is still key to the business, more than three decades on.

In fact, incoming franchisees all get to hear Jim’s take on the importance of customer service as part of the three-day training session.

And they are able to contact him at any time during the franchise term, even though he’s no longer involved in the day-to-day operations of the mowing or any of the other 50+ divisions in the Jim’s Group.

The mowing business offers both lawn care and landscaping services for both residential and commercial customers.

Some franchisees maintain their business as a solo operation while others make the most of expansion opportunities, selling territories or employing staff.

A centralised call centre means leads are fed through to franchisees.

The company reports that more than 80 per cent of business is from referrals.

Franchisees can expect a capital investment of between $20,000 and $50,000 to purchase a Jim’s Mowing business.

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NARELLAN POOLS

FOUNDED 1971 | FRANCHISING 2002

QUEST APARTMENT HOTELS FOUNDED 1988 | FRANCHISED 1988

Paul Constantinou started the Quest accommodation business back in 1988 in Melbourne and he is still leading the charge today as executive chairman of the franchise chain.

The idea for the business was to cater for extended-stay business travellers with home-from-home, serviced accommodation.

The concept took off and now the Quest Apartment Hotels brand can be seen in more than 175 locations across Australia, New Zealand, Fiji, and most recently in the UK. Along the way it has seen some significant changes, including a rebrand from Quest Serviced Apartments in 2015.

The same year, the accommodation firm signed a $500 million strategic partnership with Singapore-based real estate subsidiary The Ascott Limited, which brought funding and advisory board members into the business.

In 2019 the business was the first in Australia to be awarded a five-star franchise rating.

A Quest franchise is a big investment ($750,000+) depending on the number of apartments, tenure, location and existing conditions.

However, Quest is accredited with major Australian banks, who have helped franchisees fund their way into the business.

SHINGLE INN

FOUNDED 1936 | FRANCHISED 2009

An elegant tea room born in the Great Depression, Shingle Inn has epitomised the English afternoon tea tradition, both in its decor and its menu items.

For a business born in the Great Depression, it was the 1970s that proved the biggest challenge. In the early part of the decade the original Edward Street, Brisbane outlet faced abandonment but by 1975 the Bellchambers family had taken ownership.

The family still runs the business today, although in 2002 the original store closed after almost 70 years, due to redevelopment.

Across the years the menu has stayed traditional while reflecting contemporary times, as co-director Andrew Bellchambers points out.

Narellan Pools began nearly 50 years ago and has developed from a local operation in a Sydney chicken shed to an international business.

The Narellan Group today encompasses the company’s Australian, New Zealand and Canadian franchise and manufacturing businesses.

Last year Narellan Pools partnered with North America’s largest pool company, Latham Pool Products.

Narellan Pools’ long-time managing director Chris Meyer told Inside Franchise Business at the time,“The goal is to grow our collective businesses through the maximising of the current brands, and to grow the popularity of fibreglass in the pool market.”

Meyer described the partnership as “an incredible opportunity”.

“I am delighted with the opportunities this partnership gives our incredibly passionate people, both in manufacturing and our franchise network.

“It increases our franchisees’ business value and provides new resources. Our decision to take on a partner has not been made lightly; we are acting to not only capitalise on a huge global opportunity, but also protect the long-term interest of all our stakeholders.

“We’re delighted to have found a partner that has the same drive, passion and commitment to building the world’s biggest and best pool brands.”

Named for the semi-rural suburb where the south-western Sydney business was first established, Narellan Pools was bought by the previous Meyer generation in 1988.

Chris has been MD and owner for 17 years, and with his wife Debb has built a collaborative and open culture.

“Back in the early 1940s, the Shingle Inn cafe introduced lemon meringue pies to its menu to cater for the American World War II soldiers who were visiting the cafe and searching for a piece of home,” says Andrew.

Now the brand’s St Burger range adds a meaty bite to the main meal menu.

Today the cafe’s franchisees get their baked goods delivered from a central kitchen.

The Shingle Inn name represents history, good service, great cakes and celebrating tradition. And for franchisees it’s all backed up with a business system and a family culture. n

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LEADERSHIP

SNAP UP

THESE NEW IDEAS!

New business and fresh concepts from established brands can be just the beginning of a profitable future.

T

hink you know The Coffee Club? Think again. And if you love Lone Star Rib House, how much would you love a pub extension to the brand? Barbecues Galore has upped the ante with a lifestyle focus in stores. Just some of the fresh faces in Australia’s franchising scene right now…

LONE STAR RIB HOUSE LAUNCHES NEW CONCEPT

Lone Star Rib House is on the hunt for new franchisees after launching a brand extension to its popular Texan-inspired restaurant chain.

New to the scene is Lone Star Rib House & Brews. This part-pub, part-restaurant concept appeals to a younger consumer than the flagship brand.

The business has already unveiled six outlets and is targeting franchise recruitment in Victoria, Tasmania and South Australia.

In the Brews outlets there’s a bigger drinks range than Lone Star Rib House customers are used to.. Craft beer ranges, beers and wine on tap, alcohol milkshakes and an extensive cocktail selection are on the menu.

The new outlets also have primary service liquor licenses to allow for alcohol-only sales.

Gary Blyton heads up the Lone Star brand. The general manager says the focus

of the dual purpose concept will boost franchisees’ profits.

“More alcohol improves our average customer’s spend and profits for our franchisees. The Brews model has proven to help us stay relevant with both consumers and landlords.”

Blyton said the fit-outs are welcoming and suitable for both restaurant and tavern experiences.

There’s also a new menu featuring gluten free and vegetarian options.

Lone Star has also introduced a smaller footprint counter-ordering model to the portfolio. Two stores are open already in Maitland and Orange in New South Wales.

Another innovation is a stand-alone South American cuisine offer soon to launch.

“We have been developing a second cuisine ghost kitchen offering to allow franchisees to maximise the use of their kitchen and overall resource,” he said.

“We are confident our franchisees will be able to use this second intra brand via home delivery as a permanent part of our future operations. There is no cost to the franchisees other than the usual stock and we will be providing full training and systems. “ Lone Star has also successfully adopted its own delivery platform.

“This has allowed our franchisees to self promote their store locally to drive sales in this area and avoid the very large fees

that come with the big delivery platforms,” Blyton says.

The in-house delivery system is now outperforming the sales previously achieved through Uber Eats, Deliveroo and Menulog.

Lone Star has also looked to adapt its in-restaurant ordering process.

“We are now almost ready to launch at table contactless ordering so customers will have this option and given social trends we see this as a crucial new development long term.”

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BARBEQUES GALORE FIRES UP ITS FUTURE STORES

THE COFFEE CLUB GETS A FACELIFT

The Coffee Club has swapped ‘Where will I meet you?’ for a new tagline ‘Your happy place’. It’s all part of a brand new identity for the Aussie franchise cafe chain which is sporting a fresh logo, colour palette and images.

The Coffee Club’s lighter, more whimsical new look was due for a March release but Covid-19 scuppered that plan.

Now the brand shift is underway with a softer launch schedule.

So far the new brand identity can be seen in digital channels and at multiple touch points in store.

There are design improvements to The Coffee Club menu, operations and services including new systems,

technology, product packaging and in-store design.

The stalwart cafe brand which began in Brisbane 31 years ago is owned by Minor DKL Food Group which operates more than 400 The Coffee Club stores around the world.

Megan Magill, chief brand officer at Minor DKL Food Group said, “Although our original launch plans were waylaid by the pandemic, we are incredibly proud of our new brand identity and the first steps taken in our journey toward becoming the most customer connected café experience.

“We are looking forward to extending this into a fully integrated renewal that will reposition The Coffee Club as ‘Your Happy Place’.”

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Barecues Galore has a new focus, creating a real in-store experience for shoppers.

It’s also introduced two new formats - the Explorer, and the Express. Clever use of space means reduced fit-out costs for the smaller 500sq m Express store; the 1000sq m Explorer makes the most of its footprint with a new lifestyle feature.

A large demo area called ‘The Steakhouse’ allows staff to showcase merchandise by firing up the barbecue and cooking for customers.

A clearly defined pathway makes it easier for consumers to navigate the store and track lighting creates a good ambience and focuses on the product. Signage and graphics have been refreshed to share the stories behind the products.

While the refreshed designs are part of future-proofing the bricks and mortar stores, CEO Angus McDonald told Inside Retail ecommerce has a significant role to play in retail.

“Particularly in a high-involvement category like ours, the store still plays an important role, but increasingly, it’s part of a broader process integrated from the early stages of online research and the things that happen post-purchase, like delivery and home installation,” said McDonald.

“It’s really about fusing the two areas together and recognising it’s not about competing forces. It’s a mistake people make. They think it’s bricks-and mortar versus online, but I strongly believe it’s the fusion of both that delivers the greatest experience.”

McDonald added that at Barbeques Galore, click-and-collect orders make up a large share of online transactions, indicating the importance of the bricks-and-mortar stores for the brand.

“We want to think about how [on- and offline] fit together and embrace things like endless aisle and click-and-collect. It’s that fusion of both that delivers the best outcome and we think that’s important for our plan in the next few years.” n

LEADERSHIP

FLIPPING

THE MODEL

Aussie healthcare chain makes mega changes to its franchise model and welcomes non-physios as franchisees.

P

hysio Inq physiotherapist and founder Jonathan Moody believes now is just the right time to flip the franchise opportunity on its head.

“Covid-19 has been a great catalyst. We went up 15 per cent revenue growth in May. Most clinics have rebounded to pre-Covid-19 levels,” he says.

He has shifted the mindset, introduced a more flexible model, and the changes are significant: • a massive 85 per cent reduction in the upfront investment (now $6,500 rather than about $45,000) • ongoing fees are capped monthly, not based on a percentage of revenue • a no lock-in contract so franchisees can exit without a financial penalty • franchisees don’t need to be qualified physiotherapists.

Jonathan is confident making the franchise more accessible and helping franchisees invest in themselves will see the Physio Inq brand succeed.

“We’re looking to get our economy back on track and people back into jobs. The reality is starting a small business postCovid-19 will be tougher than ever but at the same time it might be a real option for those who otherwise are recently unemployed and finding it difficult to get back into the workforce.

“We have a proven franchising model at Physio Inq that demonstrated its solidarity during Covid-19, so we have decided to reduce the barriers to entry for those interested in running their own business and will provide the necessary training and education to help them succeed.”

Jonathan didn’t believe that the existing model, while less expensive than its main competitor, was fit for purpose.

“I wanted incredible people to be in the business, not incredible people with money.”

When Jonathan looked at the franchise and realised he would never have been able to join the business as a franchisee, he

WHAT MAKES A GOOD PHYSIO INQ FRANCHISEE? There are two distinct models: a pure investor model based on a clinic profit margin – once that point is reached, a particular percentage is maintained under management.

The second option is a non-phyiso franchisee as front of house, cutting out the cost of a receptionist.

“You can imagine how well clients will be looked after in that capacity,” he says.

Franchisees need an ability to connect and to exhibit leadership values and integrity, Jonathan says.

“An owner has to have the highest moral regard with EQ front and centre in terms of capability. That’s what matters in an industry driven by people’s health,” he points out.

“Our dream is to create a business environment that wonderful people can come together and create happiness in every interaction with clients.”

knew it was time to overturn the model.

“I want to come to work and work with like-minded entrepreneurs. I want my franchise fee not to be a tax on business but incredible value add they see they cannot live without.

“If someone could walk away, I need to make sure of my value – internet, SEO, business and cultural coaching, discounts on products and insurance.”

He aims to provide a compelling reason for franchisees to stay, outside a financial obligation to the franchisor.

“There’s no catch. Franchisees do not need to pay hundreds of thousands to buy out their restraints. They can leave without having to pay a cent if they are not happy.”

Now franchisees pay an ongoing fee in line with what a business coach would charge monthly.

Franchisees can expect to benefit from national marketing – YouTube, banner ads, national social media videos for clinics and mobile.

“We supply a local area marketing monthly plan and digital, instruction on everything to do to assist marketing. It’s all about symbiosis, linking organic face-toface with our back end SEO prescriptive

digital stuff.”

The infrastructure provides for shared training and best practice across all divisions, including the non-franchised aged care and disability division. Shared resources allow for business support to continue despite the dramatic drop in franchise fees.

As a result of taking a fresh look at the model, the franchise agreement has been slashed from a mind-boggling 80 pages to about 35 with the franchisor-focus replaced with a more collaborative mindset.

“I am so confident that this system of business, of allied health, and how you can make it a person-centred model with great soft-skills training. And I love it.”

He is also confident the business will get to 100 clinics within three years which will help his goal of providing a full rehabilitation service to patients, across corporate mobile services and franchised practices.

There are 13 Physio Inq practices, three are owned by multi-site franchisees.

Two centres (Alexandria, Wetherill Park) are company-owned with the regional manager an operational support coach working alongside Jonathan. n

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LEADERSHIP

TWO’S COMPANY

Are you dreaming of buying a business with your life partner?

W

hen you want to set up in business with your spouse but don’t know what it’s like to be a boss with your life partner, it helps to hear from someone who’s been there, done that.

Well, husband and wife team Bill and Maz Misailidis can testify to the brilliant opportunities and lifestyle such a partnership brings.

Of course, there are rules that help the Adelaide-based pair get along as they direct and drive not just their joint Football Star Academy franchise but their own individual businesses.

Bill runs a successful small business as a building contractor; Maz is a freelance interior stylist working with magazine like

House & Garden and InsideOut and local architects.

Add three teenagers to this busy work schedule and it’s clear the pair are expert at juggling a work life balance. How do they do it?

It’s important to be passionate about the business and that’s easy for former soccer player Bill.

“For me it’s about being in the sporting environment with children, sharing my passion, and the technical and psychological aspect of being involved in sport and group dynamic.”

Maz says “I try and do a bit every day supporting Bill on admin and marketing. He’s the head coach, he has the knowledge. If I wait to do it all on one day, it’s overwhelming. I’ve got other jobs

on.

“When we launched FSA into South Australia it was hard work but we knew this was the beginning of transitioning businesses. It’s about a balance, because the main income comes from the building work but we need to spend time on the football.”

Bill adds “I enjoy switching between jobs but you need the right mindset to do this. I’ve got the passion for it, for the soccer business rather than the building trade.

“We’ve worked together before on small projects. We do portion off time to get together each week, on this business.

It does require a lot of time, a balance of finances. The more time you spend, you get the rewards. We have weekly and

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25 YEARS TOGETHER MBE MANUKA, CANBERRA

Arthur and Marilyn Gray know a thing or two about working together after more than two decades in business. The couple has got the partnership just right, operating their Mail Boxes Etc outlet in Canberra.

Says Marilyn, “It does work, 95 per cent of the time. When people live together it’s give and take. We respect each other’s skills. When we’re at home, we try not to talk about work.”

It’s important to have a life outside of business, she says.

“I’m into art, Arther is into sport. We both love good food.”

The couple had pursued different careers before combining their talents to run the franchise. And becoming business owners was almost an accident.

When Arthur took a redundancy package from his public service job in industrial relations, he knew he was far too young to retire. As a qualified printer he had the background and skills to flourish in the Mail Boxes Etc (MBE) business model.

Marilyn explains they were interested in the logistics side

monthly schedules but there comes a time when we need to show a concerted focus on the new business.”

The husband and wife partnership relies on great communication and understanding each other, suggests Maz. “It’s important to be very comfortable with your partner. I feel comfortable contacting Bill at any point, even if he’s busy. We know each other’s ways, and what’s a priority. It’s truly, total communication, daily and at any time. We might have a thought at 10pm whether or not the other person is tired.”

Bill agrees. “I’m always jotting things down to share with Maz.” Flexibility is crucial with such a busy work and home life.

“If we can’t be flexible, we can’t

of the business but liked the retail element. “We went to the US and UK to see how they were working, and we did a bit of background research first.”

Marilyn didn’t join the business immediately. “When you run and start from nothing you need an income,” she says. “I was working for unis, as an executive officer with 400 graduates and 100 staff in Canberra Art schools.”

Marilyn explains how they combine their skills for the best of the business.

“We both do quoting but Arther does the big quotes. I have good management and admin skill, I work with processes and accounts. But we manage the business together.”

Arthur points to his wife’s particular talents that sit well with the demands of this government town where networking is crucial to business.

“Marilyn has great skills in cultural diversities, that is important here because embassy staff have different cultural backgrounds. Being a people person does help in the business, and we both have that,” he adds.

operate,” says Maz. “It’s about rolling with whatever comes up in life. We’ve always, in life and business, let things unfold somewhat organically. Of course there’s planning but when there’s an opportunity we follow it.”

What are the benefits of being a husband and wife team?

Bill says “We get to spend time together.

We’re in a positive environment, bouncing off each other.”

Maz says “It’s nice to see Bill in his element, being passionate about what he wants to achieve in life. It’s really nice to experience this with your partner.

“It’s just fun. You’re either doing it for yourselves or for each other. When one of us has achieved something, it feels like it’s both of us and we can celebrate together.”

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Maz says its important to know that it’s going to be hard work. And to develop a business mindset.

“You have to compartmentalise, and don’t take things personally. Be patient. I’ve learned to be less emotional.”

Bill admits he could be abrupt in his building business but this approach doesn’t work with Maz. “You do have to be a strong couple,” cautions Bill. “It can strain any relationship.

We’re robust with each other, which is good and bad, so you have to have respect.

“Be prepared to put your lifestyle and relationships on another level. You can only grow. You benefit individually and as a couple.”

“Just do it,” adds Maz. n

LEADERSHIP

NO TRADIE SKILLS? NO WORRIES!

There’s no experience required as a Plumbing Bros franchisee because the business model is built on a multi-million dollar business owner’s own competence and know-how.

J

ames Riddle is new to franchising but he’s already passionate about providing business opportunities for enthusiastic entrepreneurs.

Despite his desire for the business to flourish Riddle has been highly selective about the franchises he’s granted.

“I’ve had four people I’ve said no to right at the end [of the process] because they weren’t a good fit,” he says.

After a slow start he signed his first franchisee in late March. The Victorian franchisee has since been joined by a franchisee in Brisbane and in Sydney.

What is different about the Plumbing Bros model is that franchisees don’t need

to be qualified plumbers.

“Our entire purpose and why is to change the perception of plumbing,” James tells Inside Franchise Business.

James is critical of some of the high costs charged in cities like Sydney by plumbers who are often late to arrive at a job. That’s not professional, in his view.

And on the business side he’s keen to offer something different as a career path.

“There’s a common perception in trades that you do a four year apprenticeship, work for one to two years, then run your own business. That’s how it’s meant to play out for you.”

And that’s how it was for James. But he realised there was a better way to achieve success in the field.

“I’m the real life example. I left school at 16 and fell into plumbing, it was a stroke of luck. But I’ve learned by trial and error.

“After my apprenticeship I went out on my own early. It’s so easy to start a business with no skills. I went gangbusters quickly, and employed up to 12 people.

“But a tradie is not a business person.

Once I lost the passion I didn’t have the marketing or finance skills.”

Five years on and James had to liquidate the business in 2014. But that was the catalyst for him to turn around his situation.

“That was the making of me. I managed a commercial construction plumbing firm for two years and I got the relevant experience.”

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PUTTING PROFESSIONALISM INTO PLUMBING “It’s a fickle industry, very set in its ways.

Plumbers provide a great service but some don’t want to upskill.”

The Riddle’s model addresses both the professionalism of plumbers as they interact with customers, and the lack of business skills they have as business owners.

And that’s why the model has been designed to suit anyone with or without a plumbing background.

There’s a broad swathe of people interested in the business model, some franchisees in other systems, some new to business, some men, some women.

What appeals, he says, is his experience.

“I’ve run multi-million dollar plumbing businesses and part of them joining is buying me. They understand the one-onone time.”

James says through Covid-19 people have lost faith in their own industry.

Plumbing has survived many downturns and remains an essential service.

Right now he’s gearing up for further growth with verbal agreements for five more plumbing franchisees already.

And this multi-level experience of a plumbing firm is what has guided and shaped the Plumbing Bros business model.

James and his co-founder Joe Papiccio have run the Perth-based firm for three years so they have ironed out any wrinkles in processes. James then worked with a franchise development expert to get the franchise model just right.

“The franchisee is getting their own business. We assist with marketing, they do everything from phone calls, bookings, doing the work and invoicing. We provide the systems and processes.”

James is adamant that Plumbing Bros won’t use subcontractors, only plumbers employed on the books. If the franchisee is a non-plumber, they employ a master plumber as the compliance officer.

Franchisees purchase a marketing territory and there are two levels: the lowlevel entry point with a $55,000 franchise fee; a master plumber franchise with tools for $120,000.

The business model is appealing to people from all walks of life, men and women.

He says some people have lost faith in their own industries and are looking for something more lucrative.

James says plumbing has remained steady through the GFC, the stock market crash, even Covid-19.

“We’ve had an influx of enquiries,” he adds. “Plumbing isn’t going anywhere.” n

AUG/OCT 2020 | 31 | WWW.FRANCHISEBUSINESS.COM.AU

I’ve run multi-million dollar plumbing businesses and part of them joining is buying me. They understand the one-on-one time.

LEADERSHIP

A CONVENIENT FUTURE Innovation - and new franchisees - is helping drive the growth of 7-Eleven.

By Sarah Stowe

A

ngus McKay, 7-Eleven Australia CEO, chats about the new kiosk model, delivery, defining customer service and supporting franchisees through the pandemic.

7-ELEVEN IS INTRODUCING A NEW FORMAT STORE IN BRISBANE. TELL US ABOUT IT.

This is the second in the country. It’s an on-premise store, part of someone else’s

property. The notion is to use larger businesses where the employee base is captive and looking for convenience. We’re on an industrial site in Melbourne. This [Brisbane] is more of an office block site that we’re testing.

It’s a fraction of the size of a standard store, one wall is eight to 10m long, it has a reduced but complete range. The two stores are very different based on the people in the location. The commonality is cold beverages, fresh sandwiches, bakery.

The distinctions include whether or not to include a coffee machine.

We work with the site owner on an employee offer. It’s not about exclusivity.

The industrial site has cafes but they are a drive away. At the office building the cafes are plentiful in the area. But if you only have half an hour for a lunchbreak, the 7-Eleven store is convenient.

I’m happy to go head to head with any other business but it’s about what the customer wants.

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The notion of convenience is different. It was a corner milk bar when I grew up. That requires walking or driving to it.

That notion is very old-fashioned. Every consumer defines convenience differently.

If you want a coffee, you might want it delivered. Time is precious so how do we help customers do things faster and simpler. That’s where we start.

Of course we’re not going to keep doing it unless we can make money out of it.

HOW DOES THIS FIT INTO THE GROWTH STRATEGY? It’s too early to say it will conquer the world, but I can see how it could.

We have to decide if this model is corporate or franchised. The store needs to be serviced, and you can’t put product on the shelves at 6am. Someone has to do that. So maybe corporate support to service a few stores in an area is the solution. Or it could be an addendum to an additional franchisee store. That’s what

weʼre trying to work out. We’re picking up the bills until then.

LAST AUGUST THERE WAS AN EXPECTATION OF 15 STORES ACROSS QUEENSLAND AND WA OVER TWO YEARS, AS PART OF A STEADY 20-30 STORE ANNUAL GROWTH. WHAT’S THE LATEST? This last fiscal year, we didn’t deviate substantially from our opening plans.

We’re preserving cash but have not materially changed gross store opening numbers.

Queensland has dominated store openings, in this fiscal year it will be Victoria, and those plans are well set.

Covid-19 has been a speedbump for us, but it’s not a monumental one. Business has travelled well.

What we now have to look at is what stores should we be closing based on economic circumstances. There’s no traffic in the cities. Suburban stores have traded very well, city stores are hurting.

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WHAT ARE THE PARTICULAR ELEMENTS OF THE 7-ELEVEN FRANCHISE SYSTEM THAT HAVE HELPED FRANCHISEES DURING THE PANDEMIC? In the first place, in the first week, other than Coles and Woolworths everybody stopped.

We were all concerned, ‘Can I go out, will I catch it?’.

Franchisees wanted to know what it meant for them. Sales stopped but we underwrite the profit contribution, and that really stood the test of time.

All franchisees, even if they didn’t use the assistance, valued it, knowing it was there.

The fact that we didn’t change it or turn it off, we did what we were supposed to do was a huge comfort as they try to rebalance their business.

Part two of this, as we worked with different stores, we treated every store uniquely.

Where a business might have had more distress, we would work through with banks, tailor the roster, in a couple of cases, close temporarily or reduce hours. We tried to have quite a bespoke approach.

Now we’re into another phase, some stores are well into recovery, what are we doing to help them shine?

In Victoria we have a whole lot in lockdown, we have to go back to the well again. We have to consider if they can play in stage 3 again – from a store perspective, what is the gross profit level, rebalance labour, get stock levels right.

In the 7-Eleven model, the fixed costs, rent and utilities, we take care of.

7-ELEVEN HAS MAINTAINED ITS INNOVATIVE STREAK – CAN YOU GIVE US AN UPDATE, IT’S BEEN THREE MONTHS SINCE DELIVERY WAS FIRST TRIALLED? Delivery is now in Sydney and Melbourne and steadily growing.

We are learning what people want delivered from 7-Eleven. You can see when AFL started, because everyone wants chips and Coke – we can work out from when the orders were placed the time of kick-off.

That goes back to the notion of what convenience is. What do customers want as a delivery service? Is it delivery now or in two hours? We can look at high rise versus suburban customers. We’re mining the data to understand.

There’s no doubt it has a place in our future, as does the kiosk. u

LEADERSHIP

We’re learning all the time.

When it comes to product, you can do as much market intelligence as you like but you have to put it on the shelves and see how it trades. We’ve introduced a whole lot of plant-based product, and it’s gone nuts.

Our catering trial was part of our continuous innovation, it is currently paused as we enhance our e-commerce capabilities.

Our cashless cardless store at our Richmond office has been a tremendous success. Customers love it and it has highlighted its potential. The store is currently closed due to Covid-19 work from home requirements, but the technology is being used in the microformat trial store. We’re continuing to learn more as consumers interact with the technology.

It has a place in our future. We will be looking at how we might be able to roll it out in addition to traditional style point of sale technology in future.

With the fuel app, major enhancements will roll out at the end of the calendar year.

WHAT’S BEEN LEARNED DURING THE PANDEMIC THAT WILL SHAPE A FUTURE 7-ELEVEN? We’ve learned that speed counts. You’ve got to be nimble.

You’ve got to be clear around priorities.

We have three: customer safety, employee safety and employment security, and network viability. Everything lines up behind these priorities.

You have to think how you can start to accelerate what’s moving, digital is moving quickly, now it’s going even faster. How can you take a few more risks? Our consumers are happy to give something a go.

The biggest lesson is how you look after each other. In our world, we’re only as good as the people who operate our

stores. If they felt we didn’t have their back, we couldn’t have done it.

WHAT HAS BEEN 7-ELEVEN’S EXPERIENCE WITH RENTS? We’ve seen the best and worst in businesses.

With rent we’ve had some landlords turn round and say, ‘you’ve been a great tenant what do you need?’. Some others have dug the trench and won’t move.

That goes to the long term, we now have a point of view of who are partners, and who aren’t.

And in the stores, what people do behind the scenes, they are very generous. We’ve had an initiative to recognise local heroes, it’s wonderful stuff.

In hard times, that’s what makes the world turn. n

LIKE FATHER, LIKE DAUGHTER Second generation franchisee Tehmeena Khan and her husband are proud to be opening the new convenience store at 86 Parramatta Street, Phillip in the ACT. Tehmeena Khan helped in her father’s store at Jesmond, Newcastle 30 years ago, and more recently she has worked with her brother and now fellow franchisee Nouman’s Bankstown store.

“I’ve worked in the 7-Eleven system before, both with my father when I was young and more recently in my brother’s store,” Tehmeena explains.

“I’ve run a café, and another franchise business but I was really drawn to 7-Eleven, and I’m excited about the challenge of establishing a brand new store in the local community,” she says.

Relocating for the business the Khan family is looking forward to becoming part of the local community.

“We were drawn to Canberra, it’s a lovely city for our family and the traffic will be much better than in Sydney. Our two youngest children will be starting school locally when they reopen, and our eldest is hoping to transfer to ANU,” Tehmeena says.

The family owned and operated store will see the Khans and their son work in the store, alongside five locals who are joining the team.

“We are so proud to be opening 7-Eleven Phillip with our fantastic local team to help us serve the local community. We had more than 200 applications to work with us in just 24 hours with many people in the local community looking for new jobs or extra hours due to the Covid-19 situation.

“There were some fantastic applications, but the five people who are joining the team were exceptional candidates,” she says.

Just recently 7-Eleven launched its own delivery service of essential items to help customers during the coronavirus shutdown. The service is being trialled across a number of Melbourne outlets.

The convenience chain is also attracting franchisees keen to move away from the big cities.

AUG/OCT 2020 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

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COVER STORY

BEATING

THE PANDEMIC When life gives you lemons, you make lemonade. That’s been the approach of newbie franchisees starting up just when the pandemic hit.

S

tarting out in business is always a challenge. Being part of a franchise operation does deliver certain advantages over being an independent operator however, experience and support are there to back you up.

Essential service: Battery World

It was back in August 2019 that Matt Moore started looking for a business to complement his popular Hanks Car Wash at Tweed Heads, just on the New South Wales side of the border with Queensland.

He was already an experienced franchisee, with 10 years running a Telstra store behind him.

By the time he found a local Battery World store and was just signing off on the franchise deal, news of the coronavirus spread was hitting the headlines.

“I remember I was doing my training at the Ipswich Battery World store when we heard on the news on the radio and we all thought it was nothing, just a storm in a tea cup, some virus on the other side of the world,” he says.

“The contract went unconditional and I found myself taking ownership fat talk about bad timing. It went from no big deal to ‘holy crap’ within a matter of weeks.

“Like everyone in retail, the big concern was how it would impact on our business and would we have to put off staff we had just hired?”

Something did go their way though – their choice of business proved to be a pandemic essential.

“If you think about it every police car, ambulance, fire engine and emergency care worker’s car needs batteries, not to mention every hospital bed has a battery

so we were providing a service.

“Someone somewhere will need a battery solution at some point.”

As Matt got to grips with growing the Battery World business he faced other pandemic-specific challenges.

When the Sunshine State shut down its borders there was an added obstacle to keep everything going; the family is based in Queensland and the retail outlet and 24/7 roadside battery assist service operate in New South Wales.

However, the Moores got over the hurdles, and started to see improvements in business, despite the lockdown.

When signing up to the franchise the couple could see there was room to make simple changes to maximise revenue.

“The previous owner had suffered a few health issues, so had not been running the business at optimal performance.”

“By making some needed upgrades and improvements we have seen immediate benefits: already year on year for May we are up 30 per cent and month on month April to May we are up 100 per cent.”

Matt was attracted to the Battery World brand because of its vision, the continuing changes in technology and a business that could be somewhat insulated in troubled times.

The Moores really are putting the brand to the test.

If you think about it every police car, ambulance, fire engine and emergency care worker’s car needs batteries, not to mention every hospital bed has a battery so we were providing a service.

AUG/OCT 2020 | 36 | WWW.FRANCHISEBUSINESS.COM.AU

Retail support: 7-Eleven

New 7-Eleven franchisee Yasir Iftihkar couldn’t have opened his Jerrabomberra store at a more challenging time.

Yet despite the difficulties of starting out as a new business owner in the midst of the Covid-19 crisis, thanks to the support from 7-Eleven, everything has gone smoothly.

“With Covid-19 happening, the 7-Eleven team, in addition to the usual support for new franchisees, have installed Perspex screens at the counter, hand sanitizer units in-store for customers, and lots of social distancing signs so everyone can shop safely.

“I have about 10 new casual team members, mostly from the local Queanbeyan area, and my daughter also helps me in the store from time to time, so having those extra safeguards in place so quickly was very important for us to be able to serve our customers safely,” Yasir explains.

“The 7-Eleven team have been excellent, getting the store open on schedule and helping me get settled into the new store. That support has been ongoing from a range of areas from my retail business manager and regional manager, the retail specialists and even someone from training has come to help me review my training opportunities for my team,” he says.

While the store has started off well, Yasir points out getting to know the customers is taking longer than he expected.

“We are getting to meet the local community, but it is a bit slower to connect with people as they are spending more time at home. The team and I are excited to get to know everyone better as they start to get back into their routines in the weeks and months ahead.”

Already Yasir’s team is sharing ideas on how to deliver a first class customer experience.

“We’ve had fantastic feedback from locals on the service we’re providing and the cleanliness of the store. My team knows that making every experience exceptional for our customers, from the service to the temperature of the coffee, is incredibly important so we have all been focused on delivering that.”

Record sales: Pack & Send

New Pack & Send franchisees Nishat Mitu and Muhammed Rahman opened their new business in Chermside, Queensland right in the middle of the pandemic shutdown. And far from struggling the pair have outperformed expectations.

“We started trading on 11 May 2020. Initially we were thinking to delay the opening but decided to take the challenge as sending parcels nationally and internationally is vital due to the restrictions on travel,” Nishat says.

With new franchisees joining the network in the midst of Covid-19 the franchisor had to switch up its training processes. In the first week of opening franchisees would normally be accompanied by their field support manager for a week of onsite training.

But not this time. All the practical, onsite training had to be done virtually.

“From our first day of trading, we received virtual training from our field support manager, Ricky Vrahnos, since he was unable to travel interstate. It was challenging but he supported us in every possible way via video call, phone call and email,” Nishat says.

Nishat and Muhammed had started the research phase of their business quite a while before the pandemic.

“We were always looking to join a business supported by a proven business model. We chose Pack & Send for the brand reputation, solid structure, multi-channel business model and numerous lead sources to bring customers to the business," explains Nishat.

The pair had been involved in the retail fuel sector for 12 years and were searching for a similarly customer-focused business.

“From a business perspective Pack & Send’s business model stood out most for us," Nishat reveals.

"The business is not only customer focused but also designed to service the fastest growing market in today’s world of online shopping," she says.

And as a result of great training, strong retail experience, and a booming marketplace, Nishat and Muhammed have proved you can set up business in a pandemic.

The pair set a first month sales record for any Pack & Send franchisee in the brand's 26 year history.

Nishat says "I believe customer satisfaction is the most important aspect of our business. Being the first point of contact for the customer and being able to service them with their delivery needs on time during the current situation with Covid-19 helped us to achieve the record.”

The most rewarding part of the business so far has been receiving 5- star reviews and happy calls from their customers, the pair reveal. As Nishat says,“It’s the best part of the day!” n

AUG/OCT 2020 | 37 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

ESCAPE ROUTE C

ity Cave is the new face of wellness in Australia, tapping into the feelgood experience while adding the opportunity for some therapeutic treatment as well.

And while for most of us the sauna and steam room experience is a distant memory, because City Cave provides a solitary sauna experience, customers have been able to indulge in this popular heat treatment in line with Covid-19 hygiene guidelines. With infrared panels firing up the heat, it’s proved to be a sell-out with customers, says David Wilkinson, franchise support at City Cave.

“We got our centres open nice and quickly after lockdown. We were one of the first non-essential services to open.

We didn’t know what to expect. Were people going to come back?”

The franchisor’s concerns were eased when a pre-sale campaign paid off. Just in the two days prior to reopening City Cave’s franchisees booked $400,000 in sales.

A large part of the business is the floatation pool, which didn’t fit into any existing health guidelines.

“We had to self-assess,” says David “and spoke with health departments. In a float pool there are 400kg of magnesium salts, so it’s hard for bacteria to grow. We use a chlorine-like chemical, so all that is ok.”

The usual hand sanitizing processes of course were integral to any hands-on therapeutic treatment.

“We talked a lot on social media about what we were doing because of course we were cleaning before it was cool. We’re doing all the hard work and so we have to tell our customers.”

WELLNESS APPEAL

“We’re getting a lot of people seeing a real opportunity in the health and wellness space. Not all of us are always health conscious but when a global pandemic strikes, this is where it’s put up and shut up. Health could make a difference.

“I know personally since joining City Cave I’ve dropped 15 kilos, having a sauna three times a week, now I’m in the best shape I’ve been for 20 years.”

FRANCHISEE SUPPORT

“During shutdown, we jumped on the phone to franchisees every day, kept them engaged, gave them projects. We were able to fast track six monthsworth of development, using franchisees, to help us out. We put together round tables, discussed business issues.

“Thanks to our win at the IFA global competition we managed to organise for the global CEO of Subway, the sister of founder Fred DeLuca, to speak to franchisees, and give an insight into what franchising is like in a fast growing business.”

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FEMALE ENTREPRENEURS

“We only have two male franchisees. Most of our franchisees came from customers and about 60 per cent of clients are female. Right now almost all franchisees in the pipeline are female. Why wouldnʼt we take advantage of great franchisees in our brand?”

WHY I LOVE CITY CAVE

“I did like the concept, it was something that caught my eye, something on the rise.”

New franchise owner Damian Coppolecchia is a seasoned franchisee, currently running several gyms as well as looking to expand his City Cave busines.

Damian was already familiar with a membership structure through his gyms, so City Cave’s model of both casual visits and a client membership made sense.

“Practitioners can rent rooms but our main business is float, sauna and massage,” says Damian.

He is impressed with the simplicity of the City Cave system, which is still in the early stages as a franchise.

“It’s exciting to be in a brand in the first stages, they’ve got pretty big plans.”

So far online bookings and lots of marketing have brought in the revenue.

“It’s an easy sell. We are prompting people to let them know what they can do, how they can combine services and the benefits.

“They go to treat themselves, it’s an escape.” n

AUG/OCT 2020 | 39 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

THE VEGGIE VIBE Plant-based and vegan food is the hot new trend in hospitality.

S

ydney-based Soul Burger is the latest plantbased hospitality chain to move into franchising.

The decision to franchise comes after running the three Soul Burger outlets in Glebe, Newtown and Randwick through a corporate structure.

Founder Dr Amit Tewari says “Franchising is our avenue to getting more stores around Australia open, multiplying our impact, ensuring passion in store through owner-operators and forever changing the comfort food in the Aussie food scene.”

He believes there is plenty of potential in the plant-based food arena.

“This is much more than a trend, it’s a burgeoning sector that will only grow further as more people incorporate more plant-based food in their diet.”

After just a year of trading, Soul Burger won PETAs Best Vegan Burger in Australia Award in 2016.

Soul Burger’s menu includes gourmet plant-based burgers, fries, shakes and snags. The hospitality firm works with leading plant-based brands including V2 Foods, Beyond Meat, Alternative Meat Company, Fable Meats and Pana Chocolate.

The environmental focus isn’t just on food however. Soul Burger’s company ethos revolves around building a better world one bite at a time.

This translates into initiatives such as working to reduce plastic use in restaurants, introducing a BYOP (bring your own packaging) discount initiative, partnering with green energy providers to offset carbon use, and recycling cooking oil.

Soul Burger has partnered with Loke to develop a loyalty customer app featuring a new internal online delivery platform – cutting out hefty commission costs charged by third party delivery options.

There are more than 14,000 loyalty app users and over 20,000 members of the “Beyond the Buns” loyalty program.

To emphasise the partnership element of the franchise relationship, Soul Burger has committed to develop a franchise model that avoids any rebate fees.

Amit Tewari says “Ours is a positive sum model because our

franchise model will succeed only where our franchisees open stores and grow revenue. We won’t be making money any other way.”

MEAT-FREE MEAT PIES

Convenience chain 7-Eleven has embraced the vegan trend, loading up its shelves with plant-based snacks and meat-free alternatives to good old Aussie favourites.

The 7-Eleven No Chicken and Lettuce Sandwich ($5), 7-Eleven No Egg and Lettuce Sandwich ($5), 7-Eleven No Beef Pie ($4) and 7-Eleven No Sausage Roll ($4) are available nationally in all stores.

Julie Laycock, 7-Eleven Australia's general manager marketing, says taste was a key component of product development for the company's food innovation team.

"Our team developed these exclusive products with our suppliers, and we’ve done extensive testing with consumers to ensure the new products taste delicious,.

Choice is paramount for today's convenience store.

“As Australia is one of the fastest growing plant based food markets in the world, it’s important to us that we continue to provide tasty, great value products for as many people as possible,” she says.

And joining the veggie tribe, iconic Victorian business Ferguson Plarre Bakehouses reckons its brand new meatfree pie is an absolute winner.

It has been working on perfecting its vegan version of the traditional pie and sausage roll for 14 months.

The plant-based Aussie Pie centres on chickpeas, with wheat, garlic, onion, and herbs and spices. In the sausage roll it’s the combination of shitake mushrooms, carrots, potatoes, onions, chickpeas, garlic, onions and a secret blend of herbs and spices that hits the mark.

“Whether it’s for health, the planet, the animals, or just wanting to cut back on a meat-heavy diet, Australians are getting curious about plant-based products,” says Ferguson Plarre CEO Steve Plarre. n

PLANT POWER

Analyst firm Euromonitor International is expecting this sector to be worth $6 billion within 10 years.

Growing concerns over animal welfare and climate change have fast-tracked Australia to third spot in the world’s fastest-growing markets for vegan food.

Research early this year revealed 86 per cent of Australian diners consider health and wellness important when selecting a restaurant or café: 28 per cent of all Australians, the equivalent of 5.5 million people, consider menu options such as vegan, vegetarian, gluten-free, dairy-free and paleo as important.

AUG/OCT 2020 | 40 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

AUG/OCT 2020 | 42 | WWW.FRANCHISEBUSINESS.COM.AU

A DAY IN THE LIFE OF

DANIKA HESLOP Getting food on the table in a cafe franchise isn’t just about great ingredients, as the product and procurement manager for Foodco (Muffin Break and Jamaica Blue) reveals.

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

Make a coffee of course!

What time do you start work and where?

I am lucky to have one of those roles where each day is different. If I am baking a batch of muffins, have a photoshoot, or am visiting stores, it’s often a very early start. But if I have the choice I like to start my day with my three-year-old daughter and get ready together before starting work.

How does your role affect franchisees?

We work closely with the general managers and brand teams on the annual campaign calendars and product concepts and ideas. From there all the products and recipes that the franchisees sell are created and organised by our team.

What skills do you need?

I think the most important skill to be successful in a practical franchising role is a solid operational understanding of the cafes and their capabilities. We need to understand things like what the staff we hire are capable of so we know what kind of products we can develop, what freezer capacity we have so we know what type of boxes fit, how many items it takes to fill a display cabinet … on top of that for procurement, maths becomes important.

What is a typical day like?

Every day is different, but the best kind of day is one where we start off the day with a supplier meeting or two (on Skype these days), then head into the kitchen for some product testing and lunch. The afternoon is spent on calls with some of the team talking about their projects and looking at stock levels and upcoming forecasts, before finishing the day catching up on emails.

What's the most challenging part of your role?

By far I would say it’s forecasting for promotion and menus. As much as we can use past sales data or similar products, there are so many factors that impact the success or failure of a product. Getting this wrong can either mean short supply or excessive stock exposure.

How often do you connect with franchisees?

Every day. It might be phone calls to current franchisees or franchisees in training, state group meetings or franchise executive committees. Touching base with franchise partners, I find, is a great way to keep grounded to ensure everything we do is relevant to them.

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

I think I am quite competitive and I want to see Foodco succeed, so I would say the biggest motivator is always to ensure we have food and beverage programs for the brands that are market-leading.

What's the most exciting innovation you've introduced?

A few years ago for Jamaica Blue we created a unique range called the Signature Harvest Collection, which was a range where its products needed to meet specific criteria created together by Food Nutrition Australia to offer our customers a healthier choice.

The creation of this range really set Jamaica Blue apart from direct competitors and enabled us to tender for sites in hospitals and the like, which need to adhere to strict healthy eating guidelines.

What’s the best thing about working at Foodco?

It’s great to be able to work in a place where different expertise comes together to support the operations of a small hospitality business – and make this opportunity available to anyone. n

I think the most important skill to be successful in a practical franchising role is a solid operational understanding of the cafes and their capabilities.

AUG/OCT 2020 | 43 | WWW.FRANCHISEBUSINESS.COM.AU

SPOTLIGHT: DESSERT

TREAT FEATS

How four dessert brands helped sweeten the tough times and shape up for success.

By Sarah Stowe

N

othing has challenged the food and beverage industry like Covid-19, yet there are great stories of success emerging from the toughest of times. These four dessert brands show the value of a franchise – the backing of a support team in times of trouble.

BEN & JERRY’S Bruce Lambert, business development manager, Ben & Jerry’s ANZ Q: WHAT HAS KEPT YOUR BUSINESS GOING THROUGH THE LOCKDOWN? Ways that we have helped franchise partners, include: • waived all fees, with ongoing reviews while restrictions are in place • quadrupled payment terms for ice cream to help with cash flow • worked with all suppliers to negotiate extended payment terms, reduced fees and deferrals • supporting landlord negotiations for rental abatements and deferrals • arranged free, expert advice and Q&A • sessions with accountants and governing bodies • launched trials with two new delivery partners in the past two months and pivoted into delivery channels more than ever • increased online training options and project launches to set the stores up for success when reopening Q: WHAT WILL YOU DO DIFFERENTLY NOW? We have made some physical changes to our stores to see us through this uncertain period, such as installing protective sneeze screens and hand sanitisers for the customers; and some of these changes will likely carry through into our new

As you’ll read here, this translates into the capacity to think and act quickly, a collaborative team approach, support that includes negotiating with suppliers and landlords, and guidance on what steps to take.

store designs going forward. Beyond just physical changes, we are also reviewing our store operations and support to see how we can be more efficient going forward and perhaps keep some of the principles of extra hygiene measures even after lockdown is lifted. Customers always appreciate a clean and welcoming environment, and reassurance will always be a positive thing.

drives and helping out in asylum centres every month. This is who we are and is in the DNA of Ben & Jerry’s, and we think our fans appreciate that.

Q: HOW WILL YOU FOCUS ON FRANCHISEE PROFITABILITY? The most effective way to focus on franchisee profitability is always to help drive that top-line sales growth. To do this we have some amazing new flavours that we will be launching later this year on the back of a successful partnership we launched this year with Netflix; we also have some very cool promotions planned for later in the year with AR technology – think ‘Pokemon Go’ but with free Ben & Jerry’s everywhere!

Q: HOW WOULD YOU DESCRIBE YOUR BRAND’S PERSONALITY? We’re social activists and do everything we can to help our communities. Ben & Jerry’s is a fun brand and internationally recognised, well known for its chunks and swirls and for spreading peace, love and ice cream!

Q: WHAT ONE ELEMENT IN YOUR BUSINESS HAS THE GREATEST IMPACT ON THE SUCCESS OF THE BRAND? Our social mission – it’s what we represent and what we stand for as a brand.

We believe in doing good and making the world a better place; in fact, we believe all businesses have a responsibility to give back and do good within their communities. This is why you see our store teams out doing beach cleans, organising blood

Q: HOW WILL YOU FURTHER DEVELOP CUSTOMER ENGAGEMENT? New developments in terms of flavours and promotions always drive great engagement.

Q: WHY DO CUSTOMERS CHOOSE YOUR BRAND ABOVE ANOTHER? We have the best super-premium ice cream being sold by a company that wants to make the world a better place one scoop at a time; why would you buy from anyone else!

Q: WHAT GROWTH ARE YOU LOOKING FOR IN 2021?

We’re looking to open new stores throughout Australia and New Zealand over the next 18 months, as well as a number of new sites already confirmed – and we’re really excited to announce the new locations soon.

AUG/OCT 2020 | 44 | WWW.FRANCHISEBUSINESS.COM.AU

COWCH DESSERT COCKTAIL BAR Arif Memis, owner/general manager Q: WHAT HAS KEPT YOUR BUSINESS GOING THROUGH THE LOCKDOWN? When hospitality restrictions were put in place, we had to pivot our marketing strategy to transition into a takeaway only business.

We introduced our DIY Survival Kits, which gave our customers the Cowch experience from the comfort of their own homes.

The DIY kits provided customers with all the ingredients and instructions to recreate and construct Cowch favourites. A competition was set up, where customers shared their DIY creations using the hashtag #fromourcowchtoyours. All entrants were in the running to win $50 with some impressive creations being constructed.

Following on from our Survival Kits range, we also launched our DIY Cocktail Kits with five cocktails and three mocktails launched within the initiative The Covid-19 restrictions saw an overall increase in alcohol sales and as such we decided to give the people what they wanted, delicious cocktails at home. The response was incredible.

I believe that our innovative marketing approach of the Survival Kits and takeaway cocktails allowed us to remain relevant and top of mind.

Our socials have received amazing engagement and feedback and I believe staying relevant and active has played a major part in this.

Once restrictions were eased and clients could dine in, we were quick to reopen the doors for our customers. We started with 10 people at a time, then 20 and now we have moved to 20 per defined area, so the numbers are coming back nicely.

Q: WHAT WILL YOU DO DIFFERENTLY NOW? Covid-19 has seen some small changes to the way in which we operate, but mostly,

it’s a nice reminder that the efforts we go to in maintaining hygiene and safety for our customers is not going unnoticed.

As restrictions ease further, we will: • continue to give customers access to a QR code that can be scanned to access our menu; the feedback has been positive and we have begun developing an order-at-table service via our new app (being released soon) • continue rigorous cleaning and sanitation protocols throughout all our storefronts • bookings have always been an important part of our business model, however introducing one-hour booking blocks has allowed us to turn the tables over and keep it fair for everyone Q: WHAT ONE ELEMENT IN YOUR BUSINESS HAS THE GREATEST IMPACT ON THE SUCCESS OF THE BRAND? I believe innovation has had the greatest impact on the success of our brand.

This has been particularly highlighted throughout the Covid-19 pandemic. We have continued to provide quality service for our customers through a new branding model. We changed our approach to marketing and engaged with various news channels for PR. I believe being agile is so important and not resting on our laurels has made us not only survive during this period, but thrive.

We are now in a great position for growth and are actively seeking new locations for our company stores.

Q: HOW WILL YOU FURTHER DEVELOP CUSTOMER ENGAGEMENT? We have spent the past few months building and developing what we believe will be one of the best loyalty systems in the market. The loyalty program will be available through a downloadable app and will give customers access to daily and personalised specials. Customers will be able to work their way up three different

tiers, and as they spend more they will receive more promotions.

I want to ensure our new app has the most aggressive and worthwhile promotions for our members. The loyalty program will encourage people through our doors and keep customers coming back for more.

Q: HOW WOULD YOU DESCRIBE YOUR BRAND’S PERSONALITY? At Cowch the brand is full of life and personality. Cowch has two personality types to reflect our customer base at different times throughout the day. Our daytime personality is sweet, friendly, energetic, multi-generational and memorable. After six our personality is fun, flirtatious and sassy.

Q: WHY DO CUSTOMERS CHOOSE YOUR BRAND ABOVE ANOTHER? Customers choose to dine with us because we are fun, cheeky and provide quality service. Our food and drinks are delicious, extravagant and extremely aesthetic. We are an Instagrammer’s best friend. I believe we have created a space that is comfortable yet classy and luxe. We spend a lot of time and energy on our designs, from music and lighting to plants and layering of materials.

Our venues are creative and interesting, but in the hospitality industry the most important element is customer service.

Our staff are happy, energetic, engaging and personable. Our staff genuinely love the culture within the business and this reflects on the top quality and consistent service our customers receive.

Q: WHAT GROWTH ARE YOU LOOKING FOR IN 2021?

In 2021 we are planning to expand our business by opening storefronts in NSW and Victoria and interest from the US has already sparked. In addition, we are exploring an opportunity to build our own production kitchen to enhance our offerings and really push the boundaries. u

AUG/OCT 2020 | 45 | WWW.FRANCHISEBUSINESS.COM.AU

SPOTLIGHT: DESSERT

SAN CHURRO Mark Attard, CMO/director Q: WHAT HAS KEPT YOUR BUSINESS GOING THROUGH THE LOCKDOWN? Many things, but probably the most important thing has been the commitment of our team to the brand. Everyone really came together and understood that we were experiencing what we hope is a once in a lifetime event. The general attitude from the staff was “what can we do to help?”. It was truly inspiring to see.

Combine this “do whatever it takes” attitude with some thorough assessments of financial positions, modelling various trade scenarios and then reactive marketing and we have managed to stay relatively strong compared to many in our space.

Our ability to adapt and make tough calls on existing projects has put us in a great position to come out the other side of Covid-19.

Q: WHAT WILL YOU DO DIFFERENTLY NOW? We have definitely learned how to work under remote conditions and for many in the company this may be a larger part of their work week going forward. It works better for some areas than others.

There are also going to be some customer behaviours that will change for the long term out of this, such as contactless payments or transacting via device, which have seen their adoption accelerated with Covid-19, but in general, our store experience will remain unchanged. It’s more likely that we will be accommodating a larger delivery market on an ongoing basis, which we are constantly developing as a business.

Q: HOW WILL YOU FOCUS ON FRANCHISEE PROFITABILITY? Franchisee profitability has always been part of our DNA and this won’t change.

It simply means, as we adapt, we need to consider how we get the best outcomes for both our customers and our franchise partners.

Q: WHAT ONE ELEMENT IN YOUR BUSINESS HAS THE GREATEST IMPACT ON THE SUCCESS OF THE BRAND? Without a doubt, it’s the franchise partners’ love of the brand and how they embrace it each day in their stores.

Without that commitment, we can do whatever we want as a support office but it will always fail on execution. Our

Q: HOW WOULD YOU DESCRIBE YOUR BRAND’S PERSONALITY? Welcoming, genuine, proud, playful and Spanish.

Q: WHY DO CUSTOMERS CHOOSE YOUR BRAND ABOVE ANOTHER? People choose San Churro for many reasons, but I think probably the biggest reason is because we are an escape into a world that lets you treat yourself and forget about all the stuff going on in the world right now. We’re a social place where we don’t take ourselves too seriously and don’t expect our customers to either.

San Churro family is hugely committed to the brand.

Q: HOW WILL YOU FURTHER DEVELOP CUSTOMER ENGAGEMENT? We have recently launched a revised loyalty program and app, which we are seeing as our best way to engage with our customers directly whether they are in the store or at home. The el SOCIAL loyalty program is one of the projects we fast tracked to market because of Covid19 and it’s our best way to understand our customers and tailor the San Churro experience into something that is meaningful to them based on the way they already interact with us.

This includes things like ordering direct from us for delivery, saving favourites, accumulating points to spend across the whole menu and special offers/events only available to el SOCIAL members.

Q: WHAT GROWTH ARE YOU LOOKING FOR IN 2021?

We talk about growth in several different ways. There’s new stores on the ground, which is something we’ve intentionally slowed in recent times. There’s store by store revenue/profit growth, which we are always working on and there’s overall market share, which is a factor of the previous two.

We feel 2021 will be a year to step up our new store growth, as there will be some great opportunities out there from a site availability and rent deal perspective.

As far as the number of new sites, that’s still up in the air until the dust settles on the market.

We are very optimistic about utilising our new loyalty program to increase overall sales and we’re pretty confident that will be the source that drives year on year growth. Key to that will be frequency, giving our customers more reasons to come back more often. u

AUG/OCT 2020 | 46 | WWW.FRANCHISEBUSINESS.COM.AU

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SPOTLIGHT: DESSERT

THE CHEESECAKE SHOP Ken Rosebery, managing director Q: WHAT HAS KEPT YOUR BUSINESS GOING THROUGH THE LOCKDOWN? Our franchisees committing to stay open, good luck and providing leadership, information and reassurance. At the beginning some of our franchisees were “spooked” and wanted to close down – we reassured them to listen to what the expert government guidelines were, comply with those, and not to shut unless directed to do so.

We provided clear guidance on constructive actions franchisees could take to deal with the sudden changes, including helping them to apply for the various government assistances on offer and managing negotiations for rent relief from landlords. Of course, luck plays a big part and our category focused on a “takehome” offering, meaning that the switch to entertaining at home favoured us. The majority of stores not being located in shopping centres and malls also helped.

Q: WHAT WILL YOU DO DIFFERENTLY NOW? Never waste a good crisis. We have accelerated our delivery capability and strengthened our supply chain resilience by ensuring key high-volume items have alternate suppliers.

Q: HOW WILL YOU FOCUS ON FRANCHISEE PROFITABILITY? This has always been very important for us. We have coached our franchisees to carefully manage their variable costs. We will take the opportunity to keep pressure on our suppliers to limit price rises and use the weaknesses in the leasing market to ensure rents remain below 10 per cent of sales.

Q: WHAT ONE ELEMENT IN YOUR BUSINESS HAS THE GREATEST IMPACT ON THE SUCCESS OF THE BRAND? There’s no silver bullet. It’s the complete package of a quality and value product constantly refreshed, backed up by a disciplined approach to promotion, franchisee and site selection, and leasing.

Q: HOW WILL YOU FURTHER DEVELOP CUSTOMER ENGAGEMENT? Implement a new customer feedback system via our POS system and coach our franchisees to respond to this feedback. If you can get a franchisee to see objective unbiased customer feedback, then they will respond if needed. In other words, you cannot coach a franchisee to improve their service if they don’t believe they have a service problem.

We will also engage customers through our promotion, local sponsorships and social channels, but this is far less

significant than what happens face to face (socially distanced) instore.

Q: HOW WOULD YOU DESCRIBE YOUR BRAND’S PERSONALITY? Delicious, desirable and reliable.

Q: WHY DO CUSTOMERS CHOOSE YOUR BRAND ABOVE ANOTHER? See above plus we’re there when they need us.

Q: WHAT GROWTH ARE YOU LOOKING FOR IN 2021?

Modest growth will be good. It’s incredibly hard to predict what the year ahead holds. There is a reasonable correlation between household expenditure and our own sales performance and with some pundits predicting a significant contraction, we know it will be a challenging year. If consumers continue to be nervous of eating in restaurants and retreat to the relative safety of their homes, then we will see some benefit to us. At the same time, we will continue to keep our franchisees focused on providing value and managing costs carefully.

There are still new store opportunities for us and if necessary we are prepared to provide finance for the right franchisee. n

AUG/OCT 2020 | 50 | WWW.FRANCHISEBUSINESS.COM.AU

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SPOTLIGHT: AGED CARE

N

ow more than ever it makes sense to encourage older Australians to stay living at home for as long as possible. And that’s the beauty of this trio of franchises - with an ageing population, there’s more and more demand for services that allow senior citizens to enjoy home life.

Inside Franchise Business takes a look at how these franchises have coped with the coronavirus crisis, and their plans for growth.

HOME CARING

HOW HAVE YOUR FRANCHISEES TRADED THROUGH THE PANDEMIC? Bill Lockett, franchise manager: Really well. In fact, the hours of service we provided to aged care and disability clients in their homes has increased by 46 per cent since 1 March when the restrictions were starting to be imposed.

Michaela Brown, operations manager: Home Caring had a strong infection control policy and procedure prior to the pandemic, we just needed to fine tune our approach. We ensured all clients had access to PPE, including sanitiser, gloves, paper towels and anything specific to their needs that we could source.

We had a thorough, quick and personalised response to Covid-19 changes with clients and staff which has helped us not only to retain our client base, but to grow with new clients as well.

WHAT LESSONS HAVE BEEN LEARNED FROM THIS PERIOD? Jon Kontopos, managing director: Be prepared for all eventualities and move swiftly when the world changes. Our range of services increased while the pandemic was growing and is being maintained to this day. Our operating procedures were updated to ensure that our clients and care workers were protected.

We ensured that all communications were consistent, from franchisees and staffing to clients and external stakeholders. This industry is based on reliable information, communication and rapport building – it is evident that our franchisees display this commitment to clients as our services were able to continue throughout this period.

YOUNG AT HEART

HOW DO YOU SEE THE HOME CARING/AGED CARE FRANCHISE INDUSTRY CHANGING? Michaela: From our experience since the pandemic started, there are more people seeking care in the home, rather than in aged care facilities. Governments are committed to supporting u

Aged care at home solves many problems in today’s community. Check out these three franchise services helping our senior citizens stay young at heart, at home.

AUG/OCT 2020 | 53 | WWW.FRANCHISEBUSINESS.COM.AU

SPOTLIGHT: AGED CARE

the NDIS system and are looking at releasing more Aged Care home packages.

The NDIS has seen that there are other options for people requiring complex clinical assistance, rather than staying in hospitals or aged care facilities – they are able to be provided with appropriate accommodation, and clinical care is now included in their funding.

WHY IS THIS A GOOD INVESTMENT OPTION? Bill: Whilst the first year of operation can be tough in any new business, the longerterm potential is enormous as the population ages and more disability packages are rolled out across the country. Our franchisees enjoy the partnership option which reduces their initial investment by half, offers them 50 per cent of the profits and also pays a salary for the life of the franchise, so that they do not worry about having to pay their bills.

HOW HAS THE RECENT GENERAL APPRECIATION FOR COMMUNITY AND HEALTHCARE IMPACTED YOUR BUSINESS? Michaela: This has served us well, as our franchisees cover a large range of communities and we can provide care to clients with people who understand their culture and speak their language. Our franchisees come such diverse nations as UK, Australia, China, Vietnam, India, Ghana, Nepal and Zimbabwe.

WHAT ARE YOUR GROWTH PLANS FOR 2020?

Jon: We recruited 19 franchisees in the first 18 months of franchising, which is an industry leading figure. Our aim is to continue that growth and with the number of candidates in the pipeline, we look likely to have well over 30 by the end of 2020.

We are proud to have made the Top 100 in the AFR Fast Starters this year and are aiming to improve on our 11th position next year.

NURSE NEXT DOOR HOME CARE SERVICES

HOW HAVE YOU TRADED THROUGH THE PANDEMIC? Matt Fitton, joint CEO, co-founder and Australian master franchisor: It has been business as usual for Nurse Next Door.

We’ve grown from strength to strength, tripling our income from March 2020 to June 2020 with continued growth projected.

We awarded our first franchise to a great couple on the southern Gold Coast earlier this year and they had just opened their doors when we all went into lockdown. We’ve seen no evidence that the pandemic has had any negative impact whatsoever. In fact they’ve hit their six month target in the first month of trading and are projecting continued growth well ahead of expectations.

WHAT LESSONS HAVE BEEN LEARNED FROM THIS PERIOD? Matt: Firstly, the importance of communicating, supporting each other and sharing experiences across the system. Over the past few months Nurse Next Door franchise partners from Australia, Canada and the US have worked together through the challenges of providing safe and continuous home care to vulnerable clients in the Covid-19 environment.

Secondly the importance of knowing why we do what we do. A franchise system is only strong when franchise partners are engaged in the brand for the right reasons. Every one of us needs to know what our brand is all about and that, from a brand perspective, whatever we’re doing right now should be aligned with the brand.

HOW DO YOU SEE THE HOME CARING/AGED CARE FRANCHISE INDUSTRY CHANGING? Matt: The traditional model of care has remained very much task-based and many home care providers are missing the opportunity to meet their clients’ emotional and personal needs.

At Nurse Next Door we are committed to disrupting this traditional model of care and believe that the future of home care is one in which people are empowered to keep living life to the fullest, regardless of age or ability. We also recognise that the u

AUG/OCT 2020 | 54 | WWW.FRANCHISEBUSINESS.COM.AU

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SPOTLIGHT: AGED CARE

future of home care is one in which exceptional customer service takes a front seat.

WHY IS THIS A GOOD INVESTMENT OPTION? Matt: Right now we have the perfect storm for the home care industry. We have an ageing population with Baby Boomers (forecast to represent 25 per cent of the population by 2030), increasingly seeking options to age in their own homes. We have the government driving consumer-directed care through the development of the Home Care Package.

At the same time the NDIS has revolutionised the choices people living with disability have about remaining in their own home, regardless of age or ability.

On top of this you now have the ripple effect of the pandemic, with more people now wanting to avoid residential care and facility rehabilitation.

In short it is an industry which could almost be considered recession proof, as it draws on multiple revenue streams, with significant levels of government funding.

What we also recognise is that home care is about building trust and

relationships in your local community and it’s evident to us that home care is an industry well-suited to franchising.

HOW HAS THE RECENT GENERAL APPRECIATION FOR COMMUNITY AND HEALTHCARE IMPACTED YOUR BUSINESS? Matt: As mentioned earlier the pandemic has served as a strong reminder to people that home is the safest place to be, an idea we were committed to prior to Covid-19.

WHAT ARE YOUR GROWTH PLANS FOR 2020?

Matt: We have a goal to open at least 10 new territories in Australia by the end of 2020. We’ve just signed deposit agreements for four potential territories in and north of Brisbane and we expect to award more franchise partnerships in Victoria, New South Wales and Queensland before the year’s end.

We’re seeing strong interest across South Eastern Queensland in particular but also in both regional and metropolitan areas throughout Australia.

JUST BETTER CARE

HOW HAVE YOUR FRANCHISEES TRADED THROUGH THE PANDEMIC? Alison Chandler, chief operating officer: Just Better Care provides essential in-home care services to the aged and those living with a disability, so our customers particularly needed protection from the coronavirus.

Services continued as normal although we did implement many additional measures to keep both our staff and customers free from infection, and focused on providing PPE equipment and increased information around infection control.

HOW HAS THE RECENT GENERAL APPRECIATION FOR COMMUNITY AND HEALTHCARE IMPACTED YOUR BUSINESS? Alison: Just Better Care recognises that our franchisees and their staff are our most important assets. We also believe community care is a highly skilled and respected vocation. The pandemic has certainly highlighted how important and valuable frontline nursing and personal care workers are, and the critical role work they do each day throughout the community.

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AUG/OCT 2020 | 56 | WWW.FRANCHISEBUSINESS.COM.AU

HOW DO YOU SEE THE HOME CARING/ AGED CARE FRANCHISE INDUSTRY CHANGING? Andrew Lyme, development manager: For many years now the sector has been experiencing workforce shortages. The company is seeing early signs that the sector is benefiting from increased awareness of the important role of frontline nurses and care staff.

We anticipate more people considering a career in nursing and in-home aged care and disability support as we move forward.

This sector certainly offers sustainable and rewarding career opportunities.

WHY IS THIS GOOD INVESTMENT OPTION? Andrew: We have had a pick-up in interest coming from people who lost their jobs due to the pandemic and are looking to get into business ownership. There are many whom own a business that has been effected by the pandemic, and are wanting to invest in a more robust sector.

While many other industries came to a standstill during the pandemic, the in-home care industry has continued to remain an essential service. The Just Better Care

network has experienced significant year after year revenue growth and represents a high growth potential business opportunity with strong underlying demand.

With Australia’s populating ageing, the services Just Better Care provides are needed and the sector will continue to grow and expand to meet the needs of older Australians and people living with disabilities.

WHAT ARE YOUR GROWTH PLANS FOR 2020?

Andrew: We are in the process of signing up another three new franchises which will see additional territories opening in Victoria, Queensland and Tasmania in the immediate future.

The Just Better Care franchise network now covers the entire states of New South Wales and Queensland and we only have a very limited number of franchise opportunities left in the state of Victoria.

The company’s focus for the remainder of 2020, and beyond, is to expand the network into South Australia and Western Australia.n

The pandemic has certainly highlighted how important and valuable frontline nursing and personal care workers are, and the critical role work they do each day throughout the community.

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AUG/OCT 2020 | 57 | WWW.FRANCHISEBUSINESS.COM.AU

AGEING POPULATION CREATES HEIGHTENED CARE NEEDS One in six Australians is aged over 65 years and the number of people aged over 85 years is predicted to increase by 30% within 10 years.

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Australia’s leading franchised provider of in-home care services to the disabled and elderly.

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We assist customers to live in their own home, keeping them safe and connected to their community, respecting diversity, needs and preferences and providing innovative solutions, supporting many thousands of customers daily.

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SPOTLIGHT: TYRES

WHEELS OF

FORTUNE

If you want to get in the driving seat with your own business these three tyre franchises could put you on the right track.

B

ig names in the auto world, these franchise networks expect hands-on commitment alongside a passion for cars.

BRIDGESTONE SELECT Headquartered in South Australia, Bridgestone Select offers franchisees a 10 year term, delivering security of tenure.

Of course the franchisor expects incoming franchisees to share a love of cars but experience as a mechanic isn’t essential.

What is needed is the capacity to deliver outstanding customer service, and the ability to manage a team.

When it comes to finding the right location, Bridgestone will take on the site selection and lease negotiation.

Expect to pay between $250,000 and $450,000 for a store, depending on

its size, position and whether it’s new or established.

QUICK LANE TYRE AND AUTO CENTRES US-born and bred, Quick Lane is an offshoot of the Ford motor company, which adds gravitas and reassurance to the franchise offer.

The brand launched in Australia last year with a site at Hoppers Crossing and there are plans to take the franchise national within five years.

High traffic areas around second tier shopping centres are typical sites in suburbs with cars aged four to nine years old.

Quick Lane offers menu-pricing for most vehicles, and offers 14 specific services.

Franchisees benefit from a diagnostic

AUG/OCT 2020 | 59 | WWW.FRANCHISEBUSINESS.COM.AU

system and smart technology to deliver efficiencies.

JAXQUICK FIT TYRES JaxQuick Fit specialises in tyres, wheels, brakes and suspension.

The JAX business began in 1949 in Sydney. In 1995 Quick Fit Tyres was founded in Queensland. The two brands joined forces in 2005 and now operate through more than 80 franchises across the eastern states.

Franchisees are at the vanguard of tyre retailing innovation with the industry’s first e-commerce platform and Touchpoint digital point of sale so customers can virtually fit wheel options.

The product base caters to all budgets, and features big brand tyre ranges.

Set up costs are typically between $250,000 and $400,000. n

SPOTLIGHT

6 BUDGET BUYS Spend less than $30,000 on a franchise.

B

uying a business doesn’t need to be an expensive option and with a low-level franchise investment there is back-up and support to help you on your way.

The services sector, outside of food and hospitality, is the ideal place to look for budget buys.

Cleaning and maintenance businesses offer everyone the chance to make their mark as their own boss. They are an easily

accessible, affordable way to change your career.

Are fed up with working for the boss?

Have you always wanted to run your own business?

Do you need to find a fresh way to support yourself and your family?

A low-cost investment in this sector could shape up to a big future.

Let’s do a run through of the businesses you could consider.

BUDGET BUYS Here is a selection of what’s available in this price range:

Megasealed

Ovenu

My Home Services Group

The Local Guys

A specialist in fixing leaking showers and balconies – this just scrapes over our budget with a $30,000 +GST investment.

Recently expanded to offer franchisees all its services in one, this covers everything from cleaning to home and pet watching services.

Spend $25,000 to $30,000 on a franchise.

Oven Valets

Oven cleaning franchise – expect to pay $25,000 +GST and get two weeks training and a three to six month income guarantee.

Oven cleaning business – the capital investment is $25,000 +GST to buy into an international brand that began in 1994 in the UK.

An electrical test and tag franchise.

It will cost you $24,900 to invest in, and there’s a 12 month guaranteed income. No tech knowledge required.

Urban Clean

Commercial cleaning – a franchise costs from $18,750+GST. There’s a conditional income guarantee, training and the choice of a regional or service franchise.

Of course it’s important to remember the importance of thorough research on any business before you buy, no matter how small the investment. n

AUG/OCT 2020 | 60 | WWW.FRANCHISEBUSINESS.COM.AU

SPECIAL FEATURE

THE HOME FRONT

Looking for a franchise that offers the benefits and flexibility of working from home? Here are seven options to get you started.

By Domini Stuart

W look.

hat does a top-performing home-based franchise look like? It depends where you

For some franchisees, it provides a way to work around other commitments.

“Our cleaning franchise partners can keep their day jobs or daytime activities and work in the evening or at weekends,” says Damien Boehm, founder of Urban Clean.

Some are stepping back from a demanding career.

“A lot of our coaches are what I call corporate refugees,” says Robert Zammit, FocalPoint Business Coaching and Training’s managing director, Australia.

“They’ve worked long hours in big companies for 20 or so years and now they’re looking to control their life, work flexible hours in a flexible location and use their business acumen.”

Others are committed to maximising their income.

“It’s up to our franchisees how they organise their days but they’re committed to working full time,” says Lee Featherby, PowerfulPoints Visual Communication Specialists CEO. “They know they can build a substantial asset for themselves and their family.”

Most home-based offer businesses have lower overheads in common. The cost of entry is also relatively low and there could be savings on tax and commuting. But it isn’t right for everyone. Some people feel isolated, or that they’re never away from work, while others struggle to maintain the necessary discipline.

If you believe that running a business from home could be right for you, here’s a taste of your options.

CIRCLE OF LOVE

FOCALPOINT BUSINESS COACHING FocalPoint helps businesses of all sizes to improve their results.

Circle of Love is a wedding hire, planning and styling franchise.

THE TASK “A good coach needs deep business knowledge so we look for at least 10 years’ experience,” says Robert Zammit.

“Our structured programs include sales enhancement, strategic leadership and business effectiveness.”

FLEXIBILITY FocalPoint coaches can adjust their hours to meet their own and their clients’ needs.

SUPPORT All FocalPoint franchisees must complete an intensive certification program.

“Our North American team trains and onboards our coaches and supports them to build their own coaching practice,” says Zammit. “New coaches are mentored by their own coach for up to a year and have access to over 250 hours of ongoing support annually.”

PROFIT POTENTIAL “Coaching has the potential to add significant value to clients so we’re a commensurately high-margin business with potential for significant profit,” says Zammit.

THE TASK Franchisees work closely with clients to style and plan their wedding or event.

FLEXIBILITY All of the administration is done at home, including taking the enquiry by phone or email, quoting, invoicing and arranging meetings. “The hours are very flexible but we do encourage franchisees to reply to an enquiry within the day,” says Kim Williams, Circle of Love franchisor/director.

“Most of the weddings and events take place at the weekend.”

SUPPORT After two days of face-to-face training at head office in Sydney new franchisees are walked through setting up a number of weddings in their territory. Williams then provides support as needed, along with wedding decoration supplies, equipment, resources and templates.

PROFIT POTENTIAL Franchisees make a profit of about 80 per cent of the cost of every wedding.

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URBAN CLEAN Urban Clean is a commercial cleaning franchise servicing offices, medical centres, gyms, educational facilities and industrial premises.

THE TASK Cleaning franchise partners provide a regular cleaning service to business clients.

Regional partners recruit and support cleaning franchise partners and source new business.

FLEXIBILITY “Flexibility is a big drawcard for the franchise as the cleaning happens after hours or at weekends,” says founder Damien Boehm. “Regional partners can also choose how they structure their business days.”

SUPPORT All franchise partners undergo rigorous initial training in cleaning, communicating with clients, auditing and following the Urban system. Regional partners then provide monthly one-to-one coaching sessions.

PROFIT POTENTIAL “Many of our cleaning franchise partners have businesses averaging $80,000 to $100,000 in annual contract revenue,” says Boehm. “Regional partners operate differently and have the potential to net $200,000 to $500,000 a year.”

MOBILE APP CITY

POWERFULPOINTS

Mobile App City provides a wide range of mobile technologies and digital marketing services to businesses.

PowerfulPoints creates presentations, videos, motion graphics and other digital media to help clients convey their message.

THE TASK Licensees build relationships with clients, help them identify problems and recommend the best solutions. “We have people to do all the technical and backend work for you,” says Richard Giannini, Mobile App City CEO. FLEXIBILITY The hours are very flexible, with an opportunity for licensees to start part time and transition to full time at their own pace.

SUPPORT After an initial three-phase training program, licensees can call on support and coaching at any time. “We’re very invested in their success,” says Giannini.

PROFIT POTENTIAL There are sizeable margins on the services and, as a relationship builds, clients often invest in a number of services, creating multiple streams of passive income.

THE TASK Franchisees don’t need to be creative – PowerfulPoints has its own team of writers and designers. “They do need to feel comfortable with recruiting new clients at the big end of town and then servicing those accounts,” says Lee Featherby, PowerfulPoints CEO. FLEXIBILITY Franchisees have the flexibility that comes with working from home though they’re expected to work the equivalent of full time.

SUPPORT “We train our franchisees to find new clients and develop long-term partnerships,” says Featherby. “After an initial, structured, one-month program at head office we provide as much ongoing support as they need.”

PROFIT POTENTIAL “We know our franchisees can do about a million dollars’ worth of business a year and make anywhere from $300,000 to $400,000,” says Featherby.

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INXPRESS GLOBAL SHIPPING SOLUTIONS InXpress provides national and international carrier options for small and medium-sized businesses via an automated shipping platform for customers.

THE TASK Franchisees source new clients and build strong relationships. “Our point of difference is the personal touch and strong relationships,” says John O’Riordan, business coach for InXpress Australia and franchise owner, InXpress Port Melbourne.

FLEXIBILITY Carrier partners work nine to five, Monday to Friday, so all bookings and pickups occur within those hours. There’s flexibility around organisation, planning, strategy and sales calls but franchisees are expected to provide a full-time resource.

SUPPORT After the InXpress comprehensive two-week business training course, franchisees have access to online start-up and refresher modules with ongoing support from business coaches and support centre staff. They don’t need shipping industry experience.

PROFIT POTENTIAL “We have franchisees with an average gross margin over $200,00,” says O’Riordan. “The potential is uncapped if you have the determination to keep up consistent sales.”

ALL VENDING MINIMART All Vending Minimarts sell everything from fragrances and pet food to phone accessories and books – all from vending machines.

THE TASK Once a store is set up it requires very little input from the franchisee.

FLEXIBILITY “You won’t need to work more than four to eight hours each week, any time that suits you,” says founder Hari Shotham.

SUPPORT “We help franchisees find a high-exposure location and give them all the training they need to run the store,” says Shotham. “We then restock the machines for them on an ongoing basis, including daily deliveries of fresh foods.”

PROFIT POTENTIAL With no staff to pay and little danger of theft, franchisees can charge competitive prices without sacrificing profits. There are also higher margins on products such as fragrances, vitamins and health supplements. “We guarantee a profit of 10 per cent after all expenses, including restocking, rentals and outgoings,” says Shotham.n

SPECIAL FEATURE

HOUSEKEEPING RULES: TOP TIPS FOR A BRILLIANT WORK–LIFE BALANCE Franchise Relationships Institute founder and former franchisee Greg Nathan is a renowned franchising expert.

Here he shares his best advice for managing the work from home routine.

Have a professional, clear working space that is separate from the rest of the house. While Wi-Fi gives us the flexibility to move around the house and work where it’s comfortable and convenient, it’s important to have somewhere where you leave and store your work materials at the end of the day.

Start the day at the same time and work to a routine.

When working from home it’s useful to maintain formal disciplines in how you dress and as well as your personal appearance. Dress and follow the same personal grooming routines as you would if you were on the job, especially if you will be talking with customers using a camera, which is highly likely.

Subject to social isolation guidelines, make an effort to physically connect with work colleagues and other business people every week. This can be coffee or a meal with other franchisees, meetings with members of the franchisor team, or meetings with people who are mutual business referral sources. This sense of connection is vital for staying fresh and building a support network.

Have a transition ritual to signal the end of the workday. For me it’s going for a run in the park with my dog.

Some people like to spend time in the garden, do a workout, muck around with the kids, play a musical instrument or cook a meal. As a rule of thumb, a good transition ritual stretches your mind a little and is fun.

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Tech-enabled start-up business in an essential services industry Get the security and freedom that you’ve been looking for!

A respected partner to global carriers

The InXpress Franchising Opportunity

Founded in 1999, InXpress has a long history in managing

Build your own successful and profitable start-up business

successful businesses around the world. This is combined

with the freedom to work from anywhere, all with the security

with the know-how to train and support franchisees in

of the world’s largest franchisor of global courier services.

running a sales and business management franchise.

No experience is necessary to become an InXpress franchisee.

With 380+ franchises, located in 14 countries, the multi award-winning business continues to grow. InXpress has already established strong relationships with trusted courier partners, providing access to highly competitive rates. This

All you need is to be sales-oriented and have an aptitude for business. We’ll provide full training, with ongoing business coaching and support.

leaves you free to concentrate on building sales, working

Recession-resistant, essential services industry

towards your goals and creating the lifestyle you want.

Low entry and ongoing costs

Tech-enabled essential services

Proven model for 20 years, constantly evolving

Get the security and freedom you’ve been looking for! Over

Comprehensive training and ongoing coaching

the last few months, our franchisees have enjoyed the

No inventory, warehousing, vans or trucks

security of working in an essential services industry and

No employee base initially, opportunity to grow

operating their businesses as usual, with minimal impact.

Plus, being a tech-enabled business means that you - as a business owner - can work from literally anywhere in

Potential to earn unlimited passive income Ability to work from anywhere!

the world! InXpress’ online shipping portal, Webship Plus, is built on over 21-years of insight into what customers need, saving them hours on their shipping and empowering franchisees with insights into their business performance.

Are you the next InXpress franchisee?

If you are sales-minded, driven and enthusiastic, then InXpress’ franchise model could be for you! With the

Eugene Rusel, InXpress Collin St, established 2018, now listed in Top 20 fastest growing InXpress Franchises globally

freedom to build your franchise however you want, you can start out alone and progress to a workforce, or you can go all-in and have a team and offices from the start. Whatever path you take, InXpress can give you the flexibility and lifestyle you have been looking for.

For more information on joining the InXpress Franchising Team, call us on 1300 097 857 or email us at sales.au@inxpress.com

www.inxpress.com.au

SPECIAL FEATURE

FIRM FOUNDATIONS BRUCE MCFARLANE BlueRock Law

L

et’s face it, the challenge of finding the silver lining in the clouds of 2020 is becoming increasingly difficult.

One positive is that, for many of us, we have been able to firmly cement our feelings about working from home. For those of you who have been coveting the idea of moving into a homebased business Covid-19 has provided a unique “try before you buy” opportunity.

If you are feeling positive about the experience it means you’ve been able to remain productive, motivated and organised while enjoying the flexibility afforded by working from home. You won’t be missing the daily commute, and the social aspects of the workplace have been offset by the genuine benefits of work–life balance.

Joining over 1 million Australians who already run businesses from home has never seemed more appealing and the security provided by a tried and tested franchise model has you seriously considering your options.

Moving from the role of employee to business owner can be daunting.

Choosing a home-based franchise will provide you with training and guidance you don’t get when you go it alone. You are probably attracted to the promise of lower overheads and possible tax deductions, but it’s important to consider all the legal and financial implications of operating a home-based franchise before you commit.

Tax

When starting any business you have a number of tax obligations, but if you are running a franchise from home you will have some more specific considerations. Your business structure will impact your entitlements, tax implications, liability limitations and reporting obligations, so start by investigating the advantages and disadvantages of acting as a sole trader, partnership, trust or company.

WHAT EXPENSES CAN I CLAIM? Occupancy expenses — mortgage, interest rates, rent, council rates, land taxes and house premiums. To claim these, you need to pass the “interest deductibility test”. The area you have set aside in your home must have the character of a place of business, be identifiable, used exclusively for business and visited by clients.

Running expenses — electricity, phone, decline in value of equipment, furniture, cleaning. You can only claim the portion of these that is related to running the business. Sometimes separating business and personal costs can be difficult.

Motor vehicle expenses — trips between home and other locations, provided the travel is business related.

WHAT IF I SET UP A COMPANY OR TRUST? You will need a genuine market rate rental contract.

If you are a business owner and an employee, once you have been reimbursed for expenses you can’t claim these again on your personal tax return.

Reimbursement for expenses may require the company to pay the Fringe Benefits Tax.

ARE THERE CAPITAL GAINS IMPLICATIONS WHEN I SELL MY HOME? If you are entitled to occupancy expenses or you have been receiving rental income you may have to pay CGT. AUG/OCT 2020 | 66 | WWW.FRANCHISEBUSINESS.COM.AU

Legal WHAT INSURANCE WILL I NEED? Public liability – particularly if you have clients that come to your home as part of the business.

Professional indemnity – which helps cover the cost of litigation.

Product liability.

• • •

WHAT LICENSES AND REGISTRATIONS WILL APPLY? • There are different regulations that govern working from home depending on your state, territory and local government. These will vary according to your location and industry.

• The impact of your business on the surrounding area is an important consideration. If you reside in a predominantly residential area you may need to obtain special permission.

• It’s highly likely that you will need a range of permits relating to zoning, signage, noise levels, health issues, pollution, energy use and parking.

DO OCCUPATIONS HEALTH AND SAFETY OBLIGATIONS STILL APPLY? • These are still important even though you are a home-based business.

• The requirements will vary depending on who is impacted by the at-home set-up. Is it just the owner, are their staff, will customers and suppliers be visiting the home?

CAN I RUN A HOME-BASED FRANCHISE FROM A RENTAL PROPERTY?

•

Tenants may run a home-based business, but they need the approval of the landlord and the predominant purpose must be use as residence. In addition, there are special conditions tenants must comply with.

•

The tenant will require home-based business insurance and the landlord will likely check your certificate of currency on an annual basis. A special condition may be included in the tenancy agreement specifying that the insurance remains current and the landlord assumes no responsibility for risks associated to the running of the business.

•

The landlord will insist that all council approvals and licensing requirements have been obtained.

•

It is important that both the tenant and the landlord do their research, but ultimately the decision will be at the discretion of the landlord.

Don’t let all the red tape put you off. Keep in mind that a home-based franchise comes with less financial risk. You will have some set-up costs, but you won’t be spending precious funds on office space, storage space, parking, office furniture or fitouts.

Plus, there are the benefits that go with investing in any franchise. Your franchisor will provide you with support and community contact, so you won’t feel isolated.

Franchises offer you brand recognition and provide access to a range of tools, systems and processes that will see you well on the way to business success.

Most importantly take the time to discuss your home-based franchise ideas with professionals in the field; accountants, lawyers and business advisors will be able to guide you through the process and offer objective advice. n

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Bruce McFarlane is managing director of BlueRock Law, a practice specialising in mergers and acquisitions and franchising.

FRANCHISE BASICS

4

WAYS TO FIND CAPITAL TO BUY A FRANCHISE

Franchise and finance expert Kate Groom takes you through the pros and cons of how to finance your brand new franchise.

By Kate Groom

“H

ow will you finance your franchise?”

This is a question you’ll need to address if you’re looking to buy into a franchise.

No matter which franchise you buy, you will need capital to start the business. This money is what’s used to pay the initial franchise fee, buy equipment and fitout the location or vehicle. You’ll also need money to cover costs to operate the business until it has enough income to do this.

Your own savings form part of the capital. Just like buying a house, you’ll usually need to put some of your

own money “on the line”. That money might come from savings, an inheritance, sale of shares or property or, if you are ahead in your mortgage payments, you might be able to draw on those funds.

Superannuation, however, is not a source of capital for a franchise. Super is to fund your retirement so don’t count this when you’re doing the maths on how much money you have available.

Over the years, many people have turned to bank loans for part of their initial capital, but in the current climate you may need to consider other options. These might include borrowing from family or friends, or investing your redundancy payment or inheritance.

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BANK LOAN

Many people’s first thought when it comes to financing a franchise is to turn to a bank. The big four banks have all done franchise lending over the years. However, the Banking Royal Commission followed by Covid-19 means it’s now harder to obtain unsecured finance. Still, depending on the franchise you buy, one of the banks may be prepared to lend.

But a word of warning. Your finance application needs to be well thought through and properly presented. It will need to be supported by sound financial forecasts, evidence you will be able to repay the loan and your credentials for success in the business.

The bank will almost certainly want security for the loan. This will be your home. This is to be expected as they are taking on a risk. So if you’re approaching a bank be prepared to provide that security.

REDUNDANCY PACKAGE

Redundancy packages are an appealing source of finance for a franchise as there won’t be loan repayments to make and there’s no interest charge. For some people, this can mean a new lease of life after the end of one career.

However, there are a couple of important things to consider before you invest your redundancy pay in a business.

Firstly, even if you have money in the bank, make sure you thoroughly investigate the franchise. Second, take advice on the alternative ways to structure your finance to best suit your circumstances. For instance, even if you have the cash on hand, there may be a good case for borrowing some of the money you need to get underway, for instance vehicle or equipment finance.

FAMILY OR FRIENDS

If you’re short of money to fund your franchise, family money might help you over the line. The bank of Mum and Dad is actually quite a common source of finance, especially for younger franchise owners.

This source of finance has some big advantages. It usually comes with few strings attached, is easy to secure and repayments are likely to be flexible. Even so, we recommend that the loan arrangement is documented and the lenders kept up to date with the progress of the business. This can help avoid awkward Christmas and birthday celebrations!

A similar source of finance could be a friend who puts money into your business. We’ve seen this happen in higher-cost franchises and it can be a good way to go. But in this case it’s vital to obtain legal advice and document the agreement. You will definitely need regular reporting of results and a structure to communicate with each other, for instance a quarterly “board meeting”.

ASSET FINANCE

Asset finance is not capital (it’s debt) but it is an alternative way to finance equipment and vehicles. In this case, rather than buying the asset outright you take out a loan that’s secured on the equipment, vehicle or sometimes the fitout.

For vehicles, the dealer will be able to sort out finance or your franchise accountant might be able to put you in touch with a lender. For equipment, there are a couple of specialist franchise lenders who are active in this area. Your franchisor should know who they are and be able to put you in touch with the right people.

This form of finance is generally quite easy to organise but there will be a cost to pay in terms of interest.

With several different ways available to finance a franchise, it’s a good idea to discuss them with your franchise accountant before you put the money on the line. They can help you use different sources of capital in the most effective way. They can also advise you of any tax consequences of your decision so that there are no nasty surprises later. n

Kate Groom has a background in economics, accounting and franchise management and helps franchisees make better use of planning, communication and technology to improve business management.

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FRANCHISE BASICS

HOW TO FIND THE RIGHT LAWYER About to buy a franchise? Find out why a specialised franchise lawyer is essential to help save you time, money ‌ and maybe even your business.

ROBERT TOTH Marsh & Maher Richmond Bennison Lawyers

I

t is important for franchisees to get the right advice before committing to a franchise they have selected.

The key is to seek advice from a specialised franchise lawyer who is a member of the Franchise Council of Australia (FCA), the national industry body for the sector.

As a prospective franchisee, getting the right advice both financially and legally is essential to reduce your risks so you can make an informed decision before you commit.

The reality is that once you are in a franchise there is no easy exit without crystallising a loss – and that loss could

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Lawyers who are not experienced franchise lawyers often focus on issues that are really not the key issues.

be significant.

A specialist franchise lawyer can identify the key and real commercial issues you should be aware of.

Those issues involve more than just the up-front costs. What happens when you want to sell the business? Are there any restraints when you sell or on expiry of the agreement from continuing in the same business? How does the marketing operate, and who pays? Is there a marketing fund? How does the supply chain work? Do you get a territory or is it site specific? Is it an exclusive or non-exclusive right?

There are many tricks and traps that your franchise lawyer can highlight.

WHY CHOOSE A SPECIALISED FRANCHISE LAWYER? Lawyers focus on risk and some are more commercial or risk-averse than others.

The role of a franchise lawyer is to highlight the risks so the client can make an informed decision or be given the

opportunity to negotiate concessions into the agreement with the franchisor.

The reality is that new franchisors in the market are more likely to be open to negotiation than longstanding franchisors who already have an established reputation.

Lawyers who are not experienced franchise lawyers often focus on issues that are really not the key issues.

They get caught up in the language or grammar, not the substance of the agreement.

The sale of an existing business is a complex transaction due to the number of parties and lawyers involved; for example, there is the franchisor and their lawyer, the franchisee (vendor) and their lawyer, and possibly the landlord and their lawyer.

When acting for a vendor franchisee, the lawyer’s role is to be the conduit between all parties and to coordinate all the parties in order to reach a settlement.

This requires expertise and an understanding of the process. Getting

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the wrong lawyer involved may well aggravate all parties and frustrate the process, which can affect the relationship between the franchisor and incoming franchisee before it begins.

The irony is that all the parties generally want the transaction to conclude but it is often one of the party’s lawyers that puts roadblocks in the way.

Using a lawyer from the list the franchisor recommends is fine provided they are independent and do not act for the franchisor.

Above all, seek advice before you enter into an agreement and seek advice before you walk out of one, so you know what the implications and risks are!

You can also seek a referral from the Law Institute or Law Society in your state, contact the FCA, or ask an existing franchisee in the system who they used.

All these options are better than taking pot luck.

Good advice costs money; bad advice may well cost you a whole lot more! u

FRANCHISE BASICS

WHEN ADVICE IS TOO LATE

CHOOSING THE WRONG LAWYER

The franchisor ran a successful mobile business and the existing franchisee decided to sell his franchised territory as a going concern, with the franchisor’s approval.

The franchisor met the incoming franchisee, who was keen to get on board.

The new franchisee engaged a suburban lawyer to act despite my client recommending he contact the Franchise Council (FCA) for a referral to a specialist franchise lawyer.

At the first meeting, the suburban lawyer apparently stated to his client that he didn’t like franchising. The lawyer then proceeded to cause long delays in communicating not only with the other lawyers but also his own client.

He then sought approximately 47 amendments to the Franchise Agreement, of which 95 per cent were rejected as unnecessary, misunderstood or downright commercially ridiculous.

In his 47 points he failed to address other more relevant matters that would have benefited his client. His failure to understand the franchise sector was clearly evident.

The lawyers conduct created unnecessary angst between the vendor and the franchisor, but the matter finally settled some two months later than everyone had hoped.

Richard sought advice about exiting his franchise just 18 months into a five-year term in a shopping centre. He was the head tenant and had given a bank guarantee for three months and a personal guarantee to the landlord.

When he sought advice he’d already abandoned the business, which crystallised the issues for him.

His weekly revenue was well below the franchisor’s minimum performance criteria and didn’t improve over the next 11 months.

Richard had not sought financial or legal advice before entering into this transaction, or before he took steps to abandon the business.

He spent $250,000 in set-up costs, signed a seven-year lease of the premises, entered into an equipment finance contract for $240,000 with personal guarantees, on a site that proved disastrous.

The landlord sought break costs on the lease of around $260,000 but the franchisor let him out. But he had to forgo all the capital costs he paid out and was left with the equipment, which the finance company sold off for $40,000.

He now faces financial ruin, with claims and losses around $750,000.

Legal advice might not have prevented the business from failing, but Richard might have limited potential risks and loss.

How? Maybe he could have negotiated a shorter lease term, or a greater bank guarantee for the landlord with no personal guarantee. He could also have negotiated a better deal with the franchisor going in on an untested greenfield site.

He may have been given advice not to take the risk and walk away.

LEGAL COSTS

As with any advisor, you should get a quote for the costs.

Most franchise lawyers will offer fixed fees for a review and report of the franchise agreement and related documents.

It is important to understand what services are included in the scope of work, as often apart from the franchise documents your lawyer may need to review a contract of sale, a lease, an occupancy licence agreement and/or a loan agreement.

We also offer clients advice on personal asset protection and how to structure the purchase through a company or trust and will often work with the client’s accountant so that everyone is aligned and acting in your best interests.

It would be sensible for franchisees to budget for overall legal and accounting costs of around $5000 to $7000 when looking to enter into a greenfield franchise.

If you are buying an existing franchise business, there will be greater costs in dealing with the vendor’s (exiting franchisee) lawyer, the landlord, their agent and/ or lawyer and the franchisor or their lawyer, so the costs may fall in the range of $6,000 to $10,000.

The costs will largely depend on how cooperative or difficult the other lawyers make it.

On top of that you have your accountant’s fees.

But remember, all these costs are tax deductible as a business expense.

WHEN SHOULD YOU WALK AWAY?

If the numbers don’t work – that is, if you cannot take a reasonable salary and service the loans and, over time, enable a return on your investment – then walk away.

As with any commercial transaction there is risk and no amount of advice will alleviate the ultimate business risk.

Specialist franchise lawyers will not shy away from advising a client not to go ahead if they are aware of issues with the franchisor.

This is valuable advice you only get from a franchise lawyer who is involved in the industry.

Robert Toth is a partner, and accredited commercial and franchise specialist at Marsh & Maher Richmond Bennison Lawyers

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FRANCHISE BASICS

BEFORE YOU TAKE THE PLUNGE

INTO FRANCHISING Should you dive into a franchise? Check out this advice from the Australian Competition and Consumer Commission first.

Mick Keogh, deputy chair, ACCC

T

he unprecedented public health crisis caused by Covid19-19 pandemic has caused a major disruption to the economy.

Some people now see the appeal of joining a franchise and, with it, the opportunity to run their own business and earn a new source of income.

However, just like any business, there are risks in franchising. It is easy to lose your entire investment and any assets you’ve borrowed against if you are not prepared or aware of the risks. This article looks at some key issues to consider before deciding whether or not to take the plunge and buy a franchise.

QUESTION ANY REPRESENTATIONS ABOUT EARNINGS Some franchisors offer a guaranteed income to support new franchisees while they build up their business, or to make their franchise more attractive to buyers.

If a franchisor makes claims to you about how much you can earn, check the terms of the franchise agreement and ask them

to confirm their guarantee in writing.

You should be cautious of: • any terms and conditions you must meet to get the minimum income; this information should be in writing • whether minimum earnings representations made at the start of the franchise can be sustained over the long term; seek professional advice to check how realistic the franchisor’s claims are.

It is also important that you have a plan for when the minimum earnings period come to an end.

READ AND UNDERSTAND KEY FINANCIAL DOCUMENTS A franchisor must give you some key information before you buy a franchise.

This will be in the franchise disclosure document. The Franchising Code requires franchisors to update their disclosure document within four months after the end of each financial year. This means that many franchisors may have last updated their disclosure documents in October 2019.

A lot has changed for businesses over the past few months. You should make sure that your decision about whether to buy a franchise is based on information that is up-to-date. Regardless of when the disclosure document was updated, be sure to check whether the franchisor’s documents actually reflect the current financial situation.

For example, find out when the statement of solvency was signed – this is a signed statement in the disclosure document confirming that the franchisor will be able to pay its debts. If updated financial details become available after you’ve received a disclosure document, these details must be provided to you as soon as reasonably practicable but in any event before you sign the franchise agreement. Be prepared to ask questions about any information that is in the disclosure document.

Show any financial statements and reports to your accountant or business advisor. They can help you to spot any warning signs that show the business is struggling.

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SEEK THE RIGHT ADVICE If you’re thinking of buying a franchise, remember to always: • Talk to as many current and former franchisees as possible to hear more about how the franchise works in practice.

They know valuable information about how the franchise system is performing.

The franchisor must provide current and former franchisees’ contact details in the disclosure document.

• Seek independent legal, accounting and

business advice from professionals with franchising experience – they will see risks you can’t.

ACCC RESOURCES The ACCC website has guidance for people thinking about buying a franchise, including videos and translated information: www.accc.gov.au/buyingafranchise.

The ACCC also enforces the Franchising Code of Conduct. You can find out more on our website:

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www.accc.gov.au/franchising.

The information in this article 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

FRANCHISE BASICS

THE MOST COMMON QUESTIONS ABOUT MARKETING

– ANSWERED!

When you buy a franchise you’ll be investing in a business with marketing support.

What exactly does that mean?

KELLY NIKOLAKOPOULOS Sport Star Academy

A

s franchisors we are presented with many, various questions from prospect franchise partners who are in the process of researching and doing their due diligence. This process is very important as it paints a clear picture of the partnership you are about to embark on with the franchisor and vice versa.

There is a lot to consider, and how you will market the business is one aspect.

The marketing side of business is a vital ingredient that will contribute to your success. Here are the most common questions answered when it comes to marketing within a franchise business model.

QUESTION #1 I know nothing about marketing. Does the franchisor provide marketing and advertising support?

Yes, absolutely. It is in the franchisor’s best interest to train, support and give you the resources that will contribute to your success. The majority of franchisors will have an induction or onboarding training

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If you are not confident in building brand awareness and building relationships with your community, ask the franchisor how much assistance and support you will receive in this area.

period in which you will learn the ins and outs of your franchise business, covering every single component such as operations, HR, sales, etc. Marketing would be one of these. During this time you will learn basic marketing strategies relevant to your business. While you won’t need to know how to develop a complex 100-page marketing plan, you should be able to understand basic marketing principles, local area marketing tactics and the importance of why you need to conduct your own marketing in your community.

Ongoing support the franchisor should provide includes small-group training, workshops, an online marketing asset library, conferences, etc.

QUESTION #2 Why do I have to do my own marketing if I’m part of a franchise model? Doesn’t head office take care of it all?

This is the biggest misconception when it comes to franchising – that when the franchise partner purchases their business, they are relieved of this important practice and the franchisor will “take care of it”. This is not true. Becoming a franchise partner is about leveraging a proven, existing, successful business model and introducing it to a new community. This includes the brand, systems, procedures and reputation.

It is then up to the franchise partner to launch, develop and grow that brand within their local area.

A common term you hear in franchising

is “local area marketing” or LAM. This is an essential component in developing a successful business. Local area marketing must be conducted by the franchise partner in order to grow new relationships and draw attention to your business in your community. While the franchisor will most definitely assist you with this, it is up to you, the franchise partner, to get the brand out there and get people buying from you.

QUESTION #3 How do loyalty and marketing fees work?

Why do I have to contribute to a marketing fund if I have to do my own marketing?

This is a very good question. Every franchise system is different and will have different royalty percentages or licence fees depending on their model.

It is common for the franchisor to take anywhere between 5 and 20 per cent of your gross revenue and there can be many other fees such as equipment, shop fitout, training, legal fees, marketing and so on.

The marketing fee that franchise partners contribute to is to support national marketing activities that the entire franchise network benefits from.

This is to create brand awareness that will strengthen the brand for everyone across the board. This investment usually covers marketing activities such as campaigns, TV, radio, digital, etc. Every single franchise partner contributes to this and benefits from this fund. It is also important to note the franchisor legally

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cannot skew the spend towards one particular state, territory or partner.

QUESTION #4 Do I get any input into the overall marketing of the business?

Typically no. Head office or the national support office will have a marketing team in place that will strategise and develop national marketing plans they believe will benefit the brand and entire network of franchise partners. These marketing plans are communicated in various ways depending on the business, but typically include conferences, presentations or events.

Any good franchisor or marketing team will welcome marketing ideas from the franchise partners. While in most instances the franchise partners don’t have a lot to do at a national marketing level, they will be able to give feedback and collaborate on ideas that affect their local area marketing.

Finally, marketing is a vital ingredient in building any business. If you are not confident in building brand awareness and building relationships with your community, ask the franchisor how much assistance and support you will receive in this area.

Investing your time and energy in this area will result in success. Effort always equals reward! n

Kelly Nikolakopoulos heads up marketing at Sport Star Academy. The franchise is a leading provider of skills-based sports programs for children.

FRANCHISE BASICS

HEAD HONCHOS What do I need to know about Human Resources (HR) before I buy a business?

BRAD ADAMS The HR Dept

B

uying your first business or franchise is an exciting time.

And whether you are looking at a well-established business or a greenfield opportunity, there are many different things to consider, including employing staff members if that’s the business model.

WHAT SHOULD I KNOW ABOUT HR? The first months of your new business will be frenetic, so avoid the temptation to bring on staff without a formal agreement. Yes, it might work out okay and you might save yourself time at the

outset. However, the risk to the future of the business (see box) is too great to make the reward worthwhile.

You should ensure from the start that there are clear terms and conditions in place which outline the obligations and expectations between you and your workers. You should also define the expectations of the role by creating a job description. This should outline the duties, responsibilities and objectives by which the employee’s performance will be measured.

The National Employment Standards (NES) are the 10 minimum employment entitlements that must be provided to all employees. Essentially, they stipulate

that you must not pay less than the national minimum wage or provide conditions which do not meet the NES. They cannot be excluded, even by agreement with an employee.

Once you have your first employee you must record all their payroll information – such as salaries and wages, pay as you go (PAYG) withholding tax and super – then send it electronically to the Australian Tax Office (ATO) each time you pay them. Single Touch Payroll (STP) is the way of reporting tax and superannuation to the ATO and it requires that you put in place an STP-enabled payroll system. u

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FRANCHISING, LICENSING AND DISTRIBUTION SPECIALISTS 2020 will be another dynamic year in the Franchise and small business sector!

More regulation and greater focus on Franchisors compliance and increased powers of the ACCC and fines and penalties for breach means Specialist Advice from Industry Experts is even more vital.

Robert Toth and the MMRB Franchise Group provide that expert advice to local and overseas Franchisor’s and companies.

We have 35 years of expertise in : • Assisting overseas companies to establish their Franchise and Business in Australia.

• The grant and or appointment of Master franchise rights.

• Dispute resolution – Solutions and strategies.

• Franchisee advice – fixed fee reports.

• Sale and purchase of Franchise and licensing rights and systems.

• Trademark and intellectual property (IP) advice.

• Company structures and business succession planning • Business models for expansion including Franchising, Branchising, Licensing, Distribution • and Agency rights JV and partnership arrangements.

• Employment law - workplace issues.

• Consumer law and ACCC advice.

• Franchisor in house training and compliance.

We have a network of allied consultants to assist our clients establish their brand and systems including accounting and tax advice, financial modelling, demographics, feasibility, leasing and property, market research. and business entry plans.

We also offer fixed fees based on the scope of work, so our clients can budget for their legal costs with certainty so no hourly rate surprises!

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

Contact Robert for a free “Guide for Franchisors 2020”.

CONTACT: Robert Toth

Partner & Accredited Business Law Specialist robert@mmrb.com.au | 0412 673 757

Kathryn Finemore

Senior Associate and Accredited Commercial Litigation Specialist kathryn@mmrb.com.au | (03) 9604 9400

Stacey Ryan

Senior Associate stacey@mmrb.com.au | (03) 9604 9400

FRANCHISE BASICS

WHAT ELSE SHOULD I KNOW ABOUT RECRUITMENT? Recruitment can prove a difficult process. Even if you’ve selected staff in a previous role, you’ll find that hiring workers into your own business is a whole new dynamic. Employee attitude, capability and performance will be crucial to the success of your business. You should screen on capability and required experience, interview the top candidates who meet those criteria, then hire on attitude.

Skills can be trained for; attitude is far more elusive, yet a greater indicator of a potentially successful hire.

Retaining staff can be tricky, too, particularly in the fluid environment of a new business which is still finding its way. From the outset, you should ensure that you and your new employee agree objectives, measure performance and have feedback mechanisms in place.

Avoid unnecessary forms and formality, but create a space for regular, informal and meaningful conversations between you and the employee.

And if it’s not working out? Early intervention with underperformers will save you time, money and anguish. Be reasonable in your expectations, provide support and training as required and communicate regularly. However, you must act decisively when required. The Fair Work Act provides small businesses with certain protections for employers in terminating underperformers in the first 12 months of employment.

Ensure you have Work Health and Safety (WHS) policies in place and they are kept up to date. Even though you are part of a franchise you remain responsible, so far as is reasonably practicable, to ensure the physical safety and mental health of your workers.

GO AHEAD, MAKE THE LEAP Despite the challenges, becoming the owner of a small business or franchise can be extremely rewarding. And adding staff to the business is essential for growth. Awareness of your HR obligations and responsibilities coupled with sound advice from external providers, will mitigate the associated risk.

You have come this far, so take the next step and become the proud owner of your new business enterprise. n Brad Adams is the franchisee of The HR Dept, Lower North Shore, NSW.

BUSINESS OWNER AND EMPLOYEE RELATIONSHIP

A Proprietary Limited (Pty Ltd) corporate structure is a common company type, particularly for small and mediumsized businesses and is often recommended by accountants.

From a legal perspective, staff within a Pty Ltd business are employed by the business itself, not by the business owner (you) or shareholders. This separates the company’s employee obligations and debts, and your own personal assets, such as your house or savings.

However, there are circumstances when you may be liable, for example: • not paying employees their minimum employment entitlements • not paying the Superannuation Guarantee to employees • breach of anti-discrimination or work health and safety laws.

Even if you were unaware or made a mistake you may still be held personally liable – and franchisors can now be held responsible for franchisees’ misconduct too. This means your franchisor will be very interested in how and what you pay your employees. They may even expect to audit your HR and payroll systems to satisfy themselves that you are meeting your obligations.

WHERE TO TURN TO FOR HELP

As an employer your business has an obligation to meet NES minimums for all staff.

The franchisor is responsible for ensuring franchisees have compliant reporting systems in place and are meeting employee entitlements.

Many franchisors provide additional HR support to franchisees such as: • standard employment agreements • award and pay condition advice • staff policy handbooks • standard forms and letters.

Ask your franchisor what support is available and whether additional costs may apply.

Government agencies and websites are another resource that will help you understand the HR legislation applicable to your business. There are explanations, guidelines and templates available to help small business owners.

Suggested online resources include: • www.fairwork.gov.au • www.safeworkaustralia.gov.au • www.ato.gov.au AUG/OCT 2020 | 80 | WWW.FRANCHISEBUSINESS.COM.AU

Making Franchise Law

Black and White

Unravelling the Knot With the increasing regulation of franchising, and impending changes to the Franchising Code of Conduct and current review of the unfair contract laws likely to add to the protection and rights of franchisees and their employees, there is a commensurate increase in the risk of being tied up in legal disputes between franchisors and franchisees that are difficult to unravel.

Our commercial litigation and dispute resolution legal team, who have many years of specialist franchising law expertise, and have acted in over 50 franchise dispute mediations in the last three years, employ strategies for clients to manage conflict risks and resolve disputes as quickly as possible with the best possible outcomes. Do not remain tied up with legal disputes.

Seek advice early to avoid a protracted legal dispute.

Our focus is to deliver high quality legal services of real value to our clients.

CONTACT US 07 3221 2221 | info@morganmac.com.au

FRANCHISORS

LOOKING FOR NEW FRANCHISEES? INSIDE FRANCHISE BUSINESS

industry leading platform Now in our 17th year

CONTACT US

for an obligation free discussion on how we might be able to assist David Strong

M: 0411 366 656 david.strong@octomedia.com.au

Charlotte Redfern

M: 0451 672 967 charlotte.redfern@octomedia.com.au

www.franchisebusiness.com.au

No limit to the number of franchise opportunities for sale you can post online

As a marketing leader with 3 brands which include Boost Juice, Cibo Espresso & Salsas, Retail Zoo has utilised the many platforms available to us through Inside Franchise Business.

For a number of years we have continued to use the website, print media, e-shots and editorial options that have yielded great results.

David and the team at Inside Franchise Business are always available to provide their expertise; whether it is in regards to ad content or new campaigns that will assist us with our recruitment strategy across all of our brands.

ALI KURTDERELI,

We are a relatively new franchise system to Australia and have been using Inside Franchise Business magazine and website as our main source of advertising.

We have been using Inside Franchise Business for 12 months and have found the quality and number of leads to be very high.

Through Inside Franchise Business during this period we now have 10 new active franchisees.

MALCOLM REES

Director, World Options

Franchise Development Manager, Retail Zoo

I have been working with Inside Franchise Business for 15 years and they have assisted me with my recruitment objectives over this time on the various business I have been involved with.

I have utilised Inside Franchise Business’ magazine, e-shots, sponsored content and website for recruitment, and have been happy with the results provided.

Franchisebusiness.com.au keeps everyone updated on news and events in the franchise industry and is a trusted, non-biased source of information for the industry.

I have been working in franchising for over 20 years, and Inside Franchise Business has been very consistent over the years and has long-serving committed staff who have driven the brand to great heights.

Inside Franchise Business is always moving with the times. Hudsons Coffee looks forward to continuing our relationship with Inside Franchise Business over the next 12 months.

GARY GLEN, Franchise Sales Executive, Emirates Leisure Retail

If you are looking to recruit franchisees for your system then look no further than franchisebusiness.com.au.

Inside Franchise Business is critical to our franchise recruitment success, and has assisted us with a number new franchisees over the past 10 years.

At Poolwerx we have been proud supporters of franchisebusiness.com. au and Inside Franchise Business magazine for over a decade.

MIKE GEDDES

Franchise Development Manager, Poolwerx

FRANCHISE BASICS

5

THINGS ABOUT BUYING A FRANCHISE

Buy a business or buy a franchise? The salient points you need to know.

H BRANDING

RULES AND REGULATIONS

ow do you choose between a franchise or an independent business? Both have pros and cons, as you’ll read here.

FRANCHISEE

INDEPENDENT

Invest in a well-known franchise and you already have brand awareness at your fingertips. Add to this a national marketing campaign and your own local area marketing and the brand is helping you build your own business.

If you buy into an established local business you’ll have an existing database of customers, as you would with an existing franchise. A strong community presence might help you develop the business but you will be doing all your own marketing, from initiating the ideas to implementing the campaigns.

One of the elements that makes a franchise successful is compliance - adherence to the rules of the brand mean customers know what to expect, and everyone is maintaining the same high standards. It makes life simple too, because an operations manual lays out all the procedures.

FEES

Every franchise is built around a fee-paying structure. Typically franchisees pay a regular royalty fee and a marketing levy for the right to operate the brand, and to pay for marketing support.

Variants include no marketing levy, a percentage on turnover, a fixed monthly fee. There’s usually an upfront fee, and quite often a cost to renew another term.

TRAINING

As part of the back-up franchisees receive in their business, training should be provided both upfront, and ongoing. It’s perfect for anyone switching careers.

Sometimes the costs are included in fees. An experienced trainer will set you up to run your business from the beginning and whether online or in person, further training opportunities keep you competitive.

SUPPORT

If the pandemic has shown us anything, it’s the value of being a franchisee when times are tough.

From financial to business to mental health support, that’s what franchisors can do well to help franchisees survive.

Regular support is just part of the deal.

As an indie operator you’ll make up your own rules and regulations, and decide when to change them.

Running your own show means you don’t have to pay out regular fees - except any bank loans or leasing repayments.

You’ll be learning on your feet in your new business, reliant on your own skillset and maybe that of staff.

You’ll be reliant on support from government initiatives, professional advisors or community organisations, and you’ll need to generate any support yourself.

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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 OPERATING OFFICER/ OPERATIONS MANAGER

CHIEF MARKETING OFFICER

A COO/operations manager essentially works with the CEO to implement the strategy, making the decisions on how to achieve the goals set out. The role is typically responsible for daily operations, production, research and development, creating operational policies, and HR. The operations manager can influence the franchise business performance through resource allocation, cost reduction, improved efficiencies, the introduction of high quality products and services.

In a franchise where the founder is the CEO, the COO may be the more experienced executive.

CHIEF FINANCIAL OFFICER

This senior executive reports to the CEO but plays a strategic role in the way the company manages its finances, investments, and capital structure and is influen-

CHIEF INFORMATION OFFICER

The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations.

Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.

GENERAL MANAGER

A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations.

The responsibilities of the role may be incorporated into a CEO role.

FRANCHISE RECRUITMENT MANAGER

The franchise recruitment manager is responsible for attracting franchise buyer enquiries and for the recruitment selection process, increasingly working with managers from other divisions and

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the CEO or MD in the final selection.

The franchise recruitment manager needs to meet internal recruitment targets and ensure franchisees are a match for the franchise brand.

BUSINESS DEVELOPMENT MANAGER/FIELD MANAGER:

Variously called a BDM, regional manager, field or area manager, this role is the interface between the franchisee and franchisor. Responsibilities include helping franchisees achieve their business goals, ensuring brand compliance across the network, communicating brand direction and strategy to franchisees.

TRAINER

The person or team who will set up a franchisee to run the business.

Responsibility for training may fall under operations or general management.

Training may involve technical skills, customer service, business basics, and operational procedures. The trainer may train franchisee staff.

PR AND COMMUNICATIONS

How the brand is presented in the media, how the brand engages with social media, how brand damage is mitigated...all these are influenced by the team that handles PR and corporate communications. This may be an internal team or an external agency.

SUPPORT TEAM

The individual employees at head office who manage, monitor and deal with queries, requests and complaints from franchisees.

FRANCHISE ADVISORY COUNCILLOR A franchisee member of the Franchise Advisory Council which is typically involved in providing frontline feedback from franchisees to the franchisor, and in assessing and trialling new initiatives.

FRANCHISE BASICS FRANCHISE BASICS

30

THINGS TO CHECK R BEFORE YOU INVEST

Get set prior to your purchase with our easy checklist.

Just tick off the must-do items.

Are you confident in the franchisor?

Have you worked out your operating costs?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

Do you know the term of the agreement?

What training is available and who pays for it?

Is the franchisor compliant with the Franchising Code of Conduct?

Do you need a permit or license to operate the business?

Who owns the intellectual property and what is licensed to the franchisee?

Have you run a credit check on the franchisor?

Is the business operating from fixed or mobile premises?

What marketing will the franchisor implement?

Does the franchisor have a history of litigation? Are there any cases coming up?

Have you checked the lease? Is there a right to renew?

What marketing is your responsibility?

If you are buying an existing business, have you seen current financial statements (balance sheets, profit and loss, tax returns)?

Does the length of the lease match the franchise term?

What is the dispute resolution process?

Have you evaluated the financial returns?

What are the store fit-out costs?

Do you know what it is like to be a franchisee?

If you are buying a greenfield (brand new) site, do you have sales and profit examples and know the method behind the calculations?

Are you working within a territory? If so is the area exclusive?

Do you have an exit plan?

Do you know all the expenses franchisees are required to pay?

Are you restricted in your product purchase?

Have you spoken to former and current franchisees about the business?

What royalties are there and how are they calculated?

Are you required to reach a minimum performance level?

What restrictions are there on the franchisee and guarantor operating a similar business?

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RESOURCES AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC)

FRANDATA

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.

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.ACCC.GOV.AU

Visit: WWW.FRANDATA.COM.AU

BUSINESS.GOV.AU

FRANCHISE.ED

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

Visit: WWW.FRANCHISE-ED.ORG.AU

THE FAIR WORK COMMISSION

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

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.

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 lists franchising opportunities available in Australia. 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.

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.GOV.AU

Visit: WWW.FRANCHISEBUSINESS.COM.AU

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Phone: 0418 136 156 Contact: Shayne Boogaard, NSW szh@7eleven.com.au Phone: 0408 175 534 Contact: Peter O’Hara, VIC pwo@7eleven.com.au

A-Z LISTINGS

Phone: 0407 877 674 Contact: Brett Reading, QLD bzr@7eleven.com.au Phone: 0436 658 741 Contact: Edris Mukarram, WA ewm@7eleven.com.au

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au Start up costs from: $57,000 + GST

Start up costs: $400,000 to $1,000,000 PROFILE: 7-Eleven is the largest convenience and independent petrol retailer in Australia with more than 700 stores across VIC, ACT, NSW, QLD and WA. We opened our first store in 1977 and have almost 40 years’ experience in franchising.

When you buy a 7-Eleven franchise, you buy two things. Firstly a globally recognised brand name, and secondly a business system that works, one that provides more support than most other franchises. As our stores are open 24/7, support is just a call away 24 hours a day, 7 days a week.

We are looking for Franchisees who have the potential to lead their team to deliver an outstanding experience to customers. Learn more about what it takes to be part of a partnership in success with 7-Eleven, at www.franchise.7eleven.com.au

PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its 56 franchisees grow profitable and successful businesses.

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

Phone: 1300 361 397 Website: www.aussie.com.au/business-opportunities

Phone: +61 (3) 8593 45 46 Contact: Ali Kurtdereli boostinfo@retailzoo.com.au www.boostjuice.com.au/franchising

Start up costs: $5,000 - $150,000 PROFILE:

Start up costs: $220,000-350,000 plus GST

Have you considered a Mortgage Broking Business? Talk to Aussie today for more information When one door closes, other door opens.

If you’re a professional looking to get a foot in the door as a Mortgage Broker, talk to Aussie. We’ve been in the business almost 30 years and we’re continuing to grow. With more than 200 retail stores nationally we want to help you build a thriving business. We have the training, the support and a number of options to cater to your budget, big or small.

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!

Let us help you open the door to your very own Mortgage Broking Business.

Talk to our friendly team today.

Phone: 1300 CELEB INK Contact: franchising@celebrityink.com www.celebrityink.com

Phone: 0420 939 328 Contact: Jarrod Montigue jarrod.m@emirateslr.com.au hudsonscoffee.com.au

Start up costs: POA

Start up costs: $200 - $500k PROFILE:

PROFILE: Celebrity Ink™ is the biggest and most trusted tattoo brand in the world. Established in 9+ countries in 20+ locations, Celebrity Ink™ boasts a proven sustainable competitive advantage delivering above-average financial returns for investors, entrepreneurs and more.

The tattoo industry is a culture in itself and Celebrity Ink™ has established a brand that is globally recognised. A Celebrity Ink™ studio is like no other - its modern and open space allows clients from all walks of life to feel welcomed and most importantly, comfortable in their environment.

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.

Celebrity Ink™ is renowned for its impeccable hygiene, a unique and compelling customer experience and quality tattoos - This has positioned Celebrity Ink™ to become an industry leader globally. With a loyal following of more than half a million and growing, it is no surprise that Celebrity Ink™ is the chosen franchise business model for many budding entrepreneurs and investors. No industry experience is required to get started. It’s now time to Make Your Mark with Celebrity Ink™.

Phone: 1300 097 857 Contact: Franchise Sales Team Sales.au@inxpress.com au.inxpress.com/franchise-opportunities Start up costs: $64,950 + GST

Phone: 0459 654 146 Contact: Andrew Lyme Andrew.Lyme@justbettercare.com justbettercarefranchise.com Start up costs: From $65,000 - $200,000+

PROFILE: InXpress is a global express logistics business with over 380 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: • Recession-resistant, essential services industry • Low entry and ongoing costs • Proven model for over 20 years, constantly evolving • Comprehensive training and ongoing coaching • No inventory, warehousing, vans or trucks • No employee base initially, opportunity to grow • Potential to earn unlimited passive income • Ability to work from anywhere!

For more information about becoming an InXpress Franchisee, contact us now

PROFILE: Just Better Care is one of Australia’s largest franchised providers of in-home care services to the disabled and elderly and is an Approved Aged Care Provider and provides Disability Services under the NDIS. We assist customers to live in their own homes, providing a wide range of in-home aged and disability support services, keeping our customers safe and connected to their community.

Just Better Care Just Better Care is a unique business opportunity in a stable yet high demand and fast growing business sector.

Franchise business owners are provided full training, operational, marketing, compliance and IT & system support.

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

Phone: 0414 553 232 Contact: Gary Blyton gary@lonestarribhouse.com.au www.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.

Contact: www.madmex.com.au/franchise franchising@madmex.com.au

Phone: 03 9604 9400 Fax: 03 9419 7735 robert@mmrb.com.au www.marshmaher.com.au

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

PROFILE: Go to work fuelled by the knowledge you are a part of a rapidly growing global brand. One that lives and breathes its purpose: to inspire honest healthy living through fresh Mexican food. One with a strong growth strategy, focused on leading the way in delicious, healthy options with only the freshest produce available.

Do 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? Register your interest on our website now

PROFILE: Well recognised and published franchise specialist with over 30 years industry knowledge and experience.

Providing advice to: 1. International Franchisors and Franchising.

2. Master Franchising.

3. Dispute Resolution – Solutions and Strategies

4.

5.

6.

7.

8.

Franchisee Advice and fixed fee reports.

Sale/ Purchase of franchise systems.

IP/ Trademark advice.

Company structures and tax advice.

CCC and Consumer Law advice.

We provide clients fixed fees based on the scope of work.

Contact Robert Toth on (03) 9604 9400 or by email at robert@mmrb.com.au

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

Phone: 07 3221 2221 Contact: Bill Morgan info@morganmac.com.au www.morganmac.com.au

Start up costs: From $199,000 + GST

PROFILE: Morgan Mac Lawyers is an experienced commercial law and commercial litigation firm with a specific focus in franchising law.

Bill Morgan, has over 20 years’ experience in complex commercial litigation involving disputes between franchisors and franchisees. Since 2016, Morgan Mac Lawyers has acted in over 40 franchise dispute mediations.

The franchise related legal services Morgan Mac Lawyers provides include: • Commercial litigation • Alternative dispute resolution and franchise mediation • Franchise Dispute solutions • Corporate and business structuring • Purchase or sale of franchise businesses

• • • • • •

Advising on franchise documents Franchise employment law advice Preparing franchise documents Risk and compliance advice Commercial and retail leasing Privacy and privacy policy advice

Phone: 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.

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.

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) 9438 1711 Fax: (02) 9438 1733 Contact: Nelson Lima info@ogalo.com.au www.ogalo.com.au

A-Z LISTINGS

Phone: 0414 553 232 Contact: Gary Blyton garyb@outbackjacks.com.au www.outbackjacks.com.au

Start up costs: $250,000 – $330,000 PROFILE:

PROFILE:

Ogalo represents a vision in providing Australians with healthy, time convenient and great food.

Outback Jacks Bar & Grill restaurants offer relaxed casual dining with full bar facilities and the largest range of steaks! Choose your cut of meat, select your bottle of wine from our chilled wine cellar, then kick back and let your steak melt in your mouth. New store owners receive support in every facet of the business. We have proven systems to follow and full training is provided. Sites are now available across this great land - Australia.

The Ogalo story started in 1989 when Carlos founded one of Sydney’s most famous Portuguese Chicken shops, offering succulent chicken that was prepared in the traditional Portuguese way!

Carlos perfected his signature chicken burger recipe that has made Ogalo the success it is today, with a cult following customer base like no other!

Ogalo has expanded its menu to include an extensive range of meal options which includes grilled breast fillet burgers, wraps, fresh salads, marinated BBQ whole chickens, vegie and vegan options and much more!

Phone: 1800 245 447 / 0421 003 552 Contact: Mike Geddes joinourteam@poolwerx.com.au mike.geddes@poolwerx.com.au www.poolwerx.com.au/franchising Start up costs: Starting from $59,800 + GST + Van

Phone: 1800 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@questapartments.com.au www.questfranchise.com.au Start up costs: $750,000 upwards

PROFILE: POOLWERX HELPS SMALL BUSINESS WITH $40,000 SAVING ON NEW FRANCHISES Poolwerx is Australasia’s largest pool and spa maintenance franchise network. With over 350 territories made up of retail stores and mobile vans, Poolwerx clients have some of the best people and latest technology available anywhere they live or work, to take care of their backyard or commercial pool.

Owning a Poolwerx business is easier than you think and you’ll be supported every step of the way. Franchise Partners can choose from three fantastic business options: 1. Grow your business from a single-van operation 2. Acquire an existing business / convert your business and take it to the next level 3. Acquire multiple businesses and territories Poolwerx is experiencing rapid growth and franchise partners can benefit from multiple income streams, leading marketing support, global brand recognition, purchasing power, exceptional training programs and more.

Start your Poolwerx franchise journey today!

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.

Contact: qlau@quicklane.com Quicklane.com.au

Phone: +61 492 837 020 Fax: +1 416 646 0366 Contact: Greg Sweney opportunity@tutordoctor.com www.tutordoctoropportunity.com

Start up costs: $250,000+

Start up costs: $60,000

PROFILE: Quick Lane Tyre & Auto Centre is a recognised global brand with over 1,100 licenced and franchised locations worldwide.

The Quick Lane brand was born out of customer research and feedback regarding their needs in an automotive repair centre. It became clear that consumers regard transparency, convenience, confidence and a stress-free environment as their priorities. Our mission is therefore to provide convenience with confidence by maintaining a transparent and consultative relationship that keeps customers coming back again and again. Customers are now keeping their vehicles for longer, and this offers a brilliant opportunity to launch a customer-focused tyre and auto brand in Australia.

Quick Lane offers 14 maintenance and light repair services with tyres and Vehicle Health Checks as the catalyst to the repair and/or replacement of key parts around vehicle. Our goal is to provide customers with a trusted place for service that is convenient, transparent and price-competitive by having certified managers and technicians on hand to advise the repair needs in an inviting, no-pressure environment.

PROFILE: Tutor Doctor is a leader in providing one-on-one supplementary education to students and adults through in-home tutoring. Tutor Doctor franchisees, who manage a team of professional tutors and work on the business rather than in it, follow an award-winning home-based business model that requires no educational background to operate.

Private tutoring is a multi-billion-dollar industry, and Tutor Doctor is experiencing one of the fastest growing international expansions of any educational company in the history of franchising. With over 700 locations around the world, Tutor Doctor has changed the lives of 300,000+ people by helping them achieve their academic goals.

Phone: 1300 549 200 Contact: Kevin Bugeja kevin@franchise4u.com.au walkersdoughnuts.com.au 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 Walker’s Doughnuts directly from the USA, you’ll find us an unbeatable and irresistible offering.

Inside Franchise Business Executive is a dedicated resource for franchise professionals It provides essential news, opinion and expert advice, alongside a suppliers directory.

Visit our website to find out more!

Franchising in Victoria and NSW with opportunities available nationwide! executive.franchisebusiness.com.au

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FINAL WORD

7

THINGS TO LEARN ABOUT FRANCHISEE,

LEIGH-ANNE BROSENS

From teenage apprentice to loyal franchisee, Leigh-Anne Brosens has been dedicated to the Just Cuts brand for more than 30 years. And this year she’s celebrating three decades as a franchisee.

Leigh-Anne was the very first Just Cuts franchisee back in 1990, opening up her salon in Sydney’s Engadine.

And she’s still there, 30 years on, running her successful business.

Hairdresser Denis McFadden came up with the no-appointment, haircuts-only salon model and founded the Just Cuts business.

“I started working with Denis as an apprentice when I was 17 – I worked with him for eight years and helped run three of his stores,” says Leigh-Anne.

“I fell pregnant at 23 years old, and I

remember talking to my husband about opening up my own salon so I wouldn’t have to be at work every day. I asked Denis and I’m so grateful he gave me a go.”

The salon has gained new clients since the temporary shutdown, she says, and business is back to normal, with social distancing rules employed.

“Clients have really appreciated the strong stance Just Cuts have taken on keeping both themselves and my team safe.”

The impact of Covid-19 on her business has been minimised by the Just Cuts team.

Loyalty is a big part of Leigh-Anne’s business life, and she shares her Just Cuts 30 year anniversary with long serving team member, stylist Lynette Grose.

“While we took the decision to close for six weeks [during the Covid-19 national shutdown], it was like Christmas the day we reopened. There was an hour and a half wait every day for two weeks.”

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“The head office team have been vital in ensuring we have the marketing and support required to educate our clients on health and hygiene policies, and maintain the confidence that we’re Covid-safe.

“Whether it’s providing masks, client information videos, exclusive Justice Professional products or PR support, everything is always taken care of.

“That’s never changed in 30 years.”

Join the

Familia!

Go to work fuelled by the knowledge you are a part of a rapidly growing global brand in the fast casual category. One that lives and breathes its purpose: to inspire honest healthy living through fresh Mexican food.

For over 10 years, Mad Mex’s franchise concept is recognised for its fast-growing potential, ROI and a simplified business model.

BECOmE YOUr OWN HEaD HONCHO maDmEx.COm.aU/fraNCHisE