AUS $6.95|NZ $7.95
FEB/APR 2021
ISSUE 34 VOL 01
CHOOK CHAMPION THE
Chicken Treat is set to fly
ON THE FRONTLINE IN RECRUITMENT
FUELLING THE COFFEE HABIT
FINDING THE PROFIT BEFORE YOU BUY
PARTNERSININAA PARTNERS FULFILLINGCAREER CAREER FULFILLING Enjoy a fulfilling career your terms Enjoy a fulfilling career onon your terms when become a 7-Eleven Franchisee. when youyou become a 7-Eleven Franchisee. choosing own a 7-Eleven storeyou youcan can By By choosing to to own a 7-Eleven store closer than ever your localcommunity community feelfeel closer than ever toto your local with continued support iconic with thethe continued support ofofananiconic brand Australian-owned company. brand andand Australian-owned company.
FIND OUT MOREATAT FIND OUT MORE
franchise.7eleven.com.au franchise.7eleven.com.au
WHAT WHATARE ARE THE THE BENEFITS BENEFITS OF OWNING OWNING YOUR YOUR OWN OWN FRANCHISE? • •AAcareer careerthat thatoffers offersflexibility. flexibility. • •AApersonal personalconnection connectionto toyour your local local community. community. • •Being Beingpart partofofaacompany companythat’s that’s focused focused on customer service. • •Supported Supportedsite sitemanagement managementand and setup setup to get you started. • •AApermanent office. permanentsupport supportnetwork networkand and access access to our corporate office. • •Ongoing Ongoingmerchandising merchandisingassistance. assistance. directpartnership partnershipwith withour ouroperations operations team. team. • •AAdirect Completetraining trainingand andaccess accessto toongoing ongoing digital digital training content. • •Complete 24-hoursupport supportthrough throughour oursupport support centre. centre. • •24-hour Assistancefrom fromour ourbroader broaderteam team with with book-keeping, book-keeping, managing • •Assistance payrolladministration, administration,and andworking working with with suppliers suppliers including fuel. payroll Advertisingand andpromotional promotionalsupport. support. • •Advertising
PARTNERSHIP WITH WITH AAPARTNERSHIP CONTINUED SUPPORT SUPPORT CONTINUED 7-ElevenFranchisee, Franchisee,you’re you’resupported supportedevery every step step of of the the way. AsAsaa7-Eleven way. So if you’re considering a career change and would like to be So if you’re considering a career change and would like to be partofofananessential essentialcommunity communityservice, service,get getin in contact contact today. today. part
CONTACT DETAILS – FRANCHISE DEVELOPMENT MANAGERS CONTACT DETAILS – FRANCHISE DEVELOPMENT MANAGERS Brett Reading, QLD Brett QLD Email:Reading, bzr@7eleven.com.au
Peter O’Hara, VIC Peter VIC Email: O’Hara, pwo@7eleven.com.au
Shayne Boogaard, NSW Shayne Boogaard, NSW Email: szh@7eleven.com.au
Edris Mukarram, WA Edris WA Email:Mukarram, ewm@7eleven.com.au
Email: bzr@7eleven.com.au Mobile: 0407 877 674 Mobile: 0407 877 674
Mobile: 0418 136 156 Email: szh@7eleven.com.au Mobile: 0418 136 156
Email: Mobile:pwo@7eleven.com.au 0408 175 534 Mobile: 0408 175 534
Mobile:ewm@7eleven.com.au 0436 658 741 Email: Mobile: 0436 658 741
FFRRAANNCCHHIISSIINNGG
Pia with Pa ion
JOIN US IN THE ERA OF THE FOODIE
WHAT ARE YOUR PLANS FOR 2021? D O YO U A L R E A DY LOVE O U R G O U R M E T P I Z Z AS ? We have just relaunched our business model and it’s never been a better time to join the Crust Franchise. With new menus, customer count growth and our lowest joining fee ever, now is the perfect time to run your own business. Join our award-winning gourmet pizza family that brings a new passion to the name, “Franchise model”. • • • • • • •
Australia’s Number One Gourmet Pizza Brand: Our pizzas are the best! Flexible work hours: Majority of stores open at 5pm Stores starting from $200k+ Experiencing fantastic customer growth Targeted local marketing support Comprehensive support and training program Easy to run
We are passionate about the quality of our food, our customers, and building business partnerships with our franchisees. If this sounds like you, why not reach out and find out more!
Kellie Cranch
M: 0401 058 607 P: 07 5655 2610 E: kellie.cranch@rfg.com.au
CONTENTS
REGULARS
LEADERSHIP
11 EDITORIAL 12 GLOBAL EYE 14 INSIGHTS 16 THE LIST 82 GLOSSARY 84 BUYING PROCESS 85 INFLUENCERS 86 CHECKLIST 87 RESOURCES
20 COVER STORY
SPOTLIGHT: CAFES
28 ON THE FRONTLINE
Chicken Treat in the spotlight.
38 100 STUDIOS TO OPEN
Body Fit Training has a mega target.
40 POWERING THE PASSION
Battery World’s new boss is full of energy.
44 SMOOTH OPERATOR
Silk Laser Clinics sets out ambitious goals.
46 WHAT OUR FRANCHISOR DID 24 HAIR EXTENSION
Price Attack’s new boss reveals brand's growth strategy.
26 TAKING THE STRESS OUT OF TAX
Franchisees reveal first class support.
48 MEGA GOALS AT MACCA’S
Sustainability is king at the new green flagship.
Brand new business opportunity has a bookkeeping background. Recruitment firm is gearing up for growth.
32 BACK IN THE POULTRY GAME
Lenard’s founder returns and talks tactics.
36 DOUBLING UP
When one business just isn’t enough.
50 FUELLING THE COFFEE HABIT
FRANCHISE BASICS
54 IT’S YOUR PREFERENCE
68 SPEND YOUR SAVINGS WISELY
What is key to cafe culture in 2021?
Big business, small business, which will you choose?
SPOTLIGHT: HOME AND GARDEN
Put your nest egg or redundancy money to good use.
72 FINDING THE PROFIT
How to spot the profit in a business before you buy.
SPECIAL FEATURE 62 ON DEMAND
Aged care is a booming industry right now.
64 SO YOU WANT TO BUY AN AGED
CARE FRANCHISE
What factors should you take into consideration?
57 HOME BASE
Find a franchise that delivers a home or garden service.
FEB/APR 2021 | 9 | WWW.FRANCHISEBUSINESS.COM.AU
74 IS YOUR FRANCHISOR ON TOP OF THEIR GAME?
Look for signs it can shore up your ability to succeed.
78 HOW TO ACCESS HR
Franchisees have a shortcut to the right information.
visit appliancetaggingservices.com.au or contact Chris Longley +61 1300 287 669 franchising@ats.com.au 16 | 2 0 2 0 FRAN C H ISE D IRECT O RY
EDITORIAL
Take charge of your future It’s time to switch up and make the change happen What does 2021 hold for you? Perhaps you are ready to extend your current business portfolio with a new brand. Perhaps this is the year when business ownership becomes a reality for you and your family. Perhaps you have a redundancy package to invest or you are restarting the search for a franchise after putting your plans on hold last year. What does 2021 look like in your quest to buy a franchise? The year 2020 crystallised what is important in a business today. For starters it put a spotlight on the way franchisors respond to a crisis, and how creative and supportive they have proved to be to sustain business and nurture franchisees. It revealed the value of a survivor, the franchise brands which have managed to both hold fast and switch up when necessary, those heritage firms that have ridden the rollercoaster that is business and are still going strong. We see that suburbs are the new hotspots and that major landlords in prime locations are on notice, as franchisors and franchisees seek cost-effective options for their business. Consumer trends (see page 14) reveal what we will value in the months ahead, the shifts in behaviour patterns and business. And yet, the fundamentals remain the same. A good franchise provides a service or product that has longevity. A good franchise is led by a team with shared values that you can align with. The process of searching and buying a franchise hasn’t changed. Solid research on the brand, the franchise company and the franchisor is essential. Evaluating the market potential is important. Understanding your own capacity to work within the business is crucial. Seeking, and paying for, expert accounting and legal advice is a wise move and money well spent.
Sar a h Sarah Stowe Editor
Happy hunting.
EDITOR
Advertising coordinator
SUB-EDITOR
GRAPHIC DESIGN
Sarah Stowe P: 02 8224 8371 sarah.stowe@octomedia.com.au
Karen Gee
SENIOR ACCOUNT MANAGER
Charlotte Redfern P: 02 8224 8373 charlotte.redfern@octomedia.com.au
Simone Lagudi P: 02 8224 8375 simone.l@octomedia.com.au
Rozelle Carlos rozelle.c@octomedia.com.au
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
FEB/APR 2021 | 11 | WWW.FRANCHISEBUSINESS.COM.AU
ALL INSIDE FRANCHISE BUSINESS MATERIAL IS COPYRIGHT. REPRODUCTION IN WHOLE OR IN PART IS NOT ALLOWED WITHOUT WRITTEN PERMISSION FROM THE EDITOR. OPINIONS EXPRESSED IN INSIDE FRANCHISE BUSINESS ARE NOT NECESSARILY THOSE OF INSIDE FRANCHISE BUSINESS OR OCTOMEDIA. © COPYRIGHT OCTOMEDIA, 2016 P R I N T E D BY: B LU ES TA R P R I N T 8 3 D E R BY S T R E E T, S I LV E RWAT E R N SW 212 8 P : 0 2 974 8 3 411
GLOBAL EYE
FIRED UP FOR 2021 Which brands are shaping up for growth this year? Check out the news.
PIZZA HUT ADDS KIOSK MODEL Pizza Hut Australia has unveiled a kiosk model which is being trialled in three service station forecourts in partnership with Euro Garages. Pizza Hut’s first kiosk opened in Kingswood, NSW, the second in a Liverpool-based service station in Sydney’s west. The third kiosk is scheduled to open early this year. Phil Reed, CEO of Pizza Hut Australia said “This partnership will create further accessibility of the brand outside of online ordering, delivery and standard bricks and
WINNING FRANCHISES ANNOUNCED The Cheesecake Shop has been named Australian Established Franchisor of the Year at the MYOB FCA Excellence in Franchising Awards. The Cheesecake Shop has been franchising for nearly 27 years and now has a reach of 228 cake bakeries across Australia, New Zealand and the UK. Ken Rosebery, MD of The Cheesecake Shop, accepted the award and said “Putting this award together with our team, one of the things I learned was the average tenure of our 50-odd staff as a franchisor was about eightand-a-half years, and that says a lot for their commitment and their passion and their love for our brand. This award is for them.” To win the top award The Cheesecake Shop fought off tough competition from finalists Just Cuts, Rapid Tune and Banjo’s Bakery Café. Silk Laser Franchising scooped the Australian Emerging Franchisor of the Year award, with MoneyQuest Australia, Home Caring Franchise and Fitstop Australia all named as
finalists in the category. Martin Perelman, CEO and founder of Silk Laser, said “It was very exciting to win the award. It means a lot to us, we’re listing on the ASX and this really validates our brand to a larger, fairly competitive market. It will help us find the right franchisees.” Perelman said “It’s been a pretty amazing journey for our company. We’ve now been franchising for four years and are getting close to 60 clinics nationwide.” Other MYOB FCA winners included: • International Franchisor of the Year – Xtend Barre • Franchise Woman of the Year – Wendy Donaldson, Narellan Pools • Field Manager of the Year – Phil Colburn, Poolwerx • Excellence in Marketing – Poolwerx • Excellence in Franchise Innovation – RAMS Product, Construction Lending Proposition • Supplier of the Year – FC Business Solutions n
JAX TYRES & AUTO HIT ALL-TIME SALES RECORD Sales at JAX Tyres & Auto hit an all-time record in 2020, surpassing the previous best performance by a massive 22 per cent. Over the past two years, repeat business has risen from 58 per cent to 72 per cent while sales and EBITDA have grown 20 per cent year on year to exceed expectations. The company’s Net Promoter Score (a reflection of customer loyalty and enthusiasm for the brand) also increased, rising from 78 to 83. JAX identified opportunities to improve, measure and re-measure best practice and performance across the 85+ store network, leveraging customer, employee and franchisee insights. n FEB/APR 2021 | 12 | WWW.FRANCHISEBUSINESS.COM.AU
mortar, to take advantage of the high footfall kiosks visited by hungry travellers. The initiative is backed by turnaround and transformation specialist Allegro Funds which bought the Pizza Hut Australia business four years ago. Allegro investment manager Jeremy Trouncer told Inside Franchise Business “Our goal is to return the brand to number one in Australia.” n
AUSSIE LINKS WITH LENDI Mortgage broker Aussie will merge with Lendi, the online home loan platform. The merged business will maintain a multi-brand strategy and is expected to deliver a range of benefits for both customers and brokers. Aussie brokers and franchisees will be able to leverage Lendi’s technology and platform, including integration with lender credit-decisioning engines and regulatory and compliance tools. Increased investment in both brands is expected to accelerate growth. James Symond, chief executive officer of Aussie, said “The merger is another important step in the almost 29-year evolution of Aussie as Australia’s leading retail mortgage broker. We are currently posting record lending volumes through our network of over 970 brokers and over 210 stores and, by underpinning Lendi’s technology across our national broker network, we will further accelerate this growth and momentum.” Lendi shareholders will hold the majority shareholding of 55 per cent in the merged business, while Aussie’s parent company, Commonwealth Bank of Australia, will retain a 45 per cent shareholding and continue to provide funding for the Aussie Select branded home loan product. n
PINOT & PICASSO PAINTS PICTURE OF GROWTH Art studio franchise Pinot & Picasso is ready to grow in North Queensland, metro Brisbane and Melbourne, Adelaide City and Perth CBD and surrounds. Director James Crowe said “Due to New South Wales being at capacity, we’re encouraging our existing vendors to look outside of the state for future prospects. The key to the success of existing distance locations (Geelong, Newcastle, Malvern) is finding a manager on the ground and the digital nature of our business. “There’s plenty of opportunity to manage this at distance when staffing is correct, and the Pinot & Picasso app, our advanced
WordPress website and the business effectively run from G-Suite – it makes it extremely manageable.” Remote management is increasing as franchisees choose to invest in areas outside their neighbourhoods, even purchasing interstate studios, he said. “New businesses have been exceptional through this period. We’re finding our studios are trading at the same if not stronger numbers than pre-Covid. This is especially exciting considering most of the studios are trading at 60 per cent capacity (reduced through social distancing).” n
AMERICAN SEAFOOD CHAIN TO OPEN IN AUSTRALIA US seafood favourite The Boiling Crab is opening its first five restaurants in Australia under a master franchise agreement. The Boiling Crab has more than 20 locations in the US and a brand new venue in Shanghai. The news that state area master franchisees have been appointed for Queensland and Victoria comes two years after the southern seafood brand first mooted its move into the Australian market. Melbourne-based Asian catering company Little Dragon Group will take ownership of the brand’s expansion across the two states, focused on locations in Brisbane and Melbourne. Little Dragon Group was established five years ago and now has an average annual turnover of about $10m. Eddy Chen, Little Dragon Group’s interstate general manager and financial controller, said there is plenty of potential to grow the fledgling business concept here. “So far the Cajun seafood concept is still quite new to the Australian market, and while there are few restaurants that claim to offer Cajun seafood, there’s no comparing to The Boiling Crab.” n
EXPOS ARE BACK! Franchise buyers take note – it’s been a long wait but finally news that the franchising expos are back on the calendar for 2021. The roll of expos across the country gets a kick-start in Sydney in March. Franchising & Business Opportunities Expo exhibition manager, Fiona Stacey said “The demand for franchise businesses is booming as people search to secure themselves a better future – one they can take control of.”
• • • •
Expo dates for this year are: Sydney: 26-27 March, ICC Sydney Perth: 16 May, Crown Perth Brisbane: 18-19 June, Brisbane Convention & Exhibition Centre Melbourne: 20-21 August, Melbourne Convention & Exhibition Centre. n
COURIER FIRMS BOOMING CouriersPlease is on a roll, with 40 per cent more franchisees joining the logistics firm in 2020. The business also boosted staff numbers by 30 per cent and hired hundreds of extra drivers to cope with the demand last year. A customer shift to ecommerce resulted in a massive 80 per cent spike in deliveries between March and October 2020 compared with the same period in 2019. Another courier firm, the former Fastway Couriers network and now Aramex Australia, delivered a record day on November’s Black Friday. Deliveries rose by 39 per cent from 2019. In fact deliveries across the whole of the week were boosted a significant 43 per cent on 2019. Although Sydney and Melbourne depots were predictably the star performers in the network on Black Friday, the regional couriers also saw a spike in deliveries. n
FIRST FRANCHISEES FOR MOTTO MOTTO
Brand new franchisees have signed a deal with Japanese Quick Service Restaurant brand Motto Motto and taken up the first franchise in the chain. Frank Jiang, Linda Zhang, Jason Yan and Brandon Choi are the owners of the brand new Westfield Carindale restaurant. Motto Motto Group‘s chief commercial officer Matt Fickling said the franchisee appointment is a milestone for the company. “We are not just disrupting with low fees but solving some of the issues the industry is facing, like providing our partners with upfront turnkey establishment costs and end of term franchisor buy back guarantees to lower the risk for them and their family.” Motto Motto is looking for franchisees nationally as it expands its New South Wales footprint and plans to enter the Victorian market this year. n
FEB/APR 2021 | 13 | WWW.FRANCHISEBUSINESS.COM.AU
INSIGHTS
SEVEN
CONSUMER TRENDS TO WATCH Consumer behaviour, market shifts, innovative brands, and opportunities
A
7 TRENDS THAT COULD SHAPE YOUR WORLD
1. HEALTH UNDEFINED Consumers are seeking a sense of wellbeing but there is no playbook yet, suggests Mintel. “Consumers are in search of a wellbeing experience through an entirely new lens built around a sense of uncertainty as to when life will shift to more balanced routines. This is driving demand for comfort and structure,” says Matthew Crabbe. “As brands aim to set a new tone and new structures, the opportunity for brands exists in not simply selling a wellbeing product or service to consumers, but also reminding them of the value in their own internal curiosity and the power of trying something new.”
recent Mintel report has unveiled seven key trends set to influence business in 2021.
Matthew Crabbe, director of Mintel Trends, APAC, explains the company’s prediction model has been built to react and adapt to unforeseen circumstances. “They also take into account the changes that have been accelerated by the Covid-19 pandemic — the subtle yet profound shifts in consumer thinking and responses from brands — and attempt to encapsulate the better future that consumers, globally, aspire to, and towards which brands can build their own strategic visions,” he says.
2. COLLECTIVE EMPOWERMENT “The collective mentality of the pandemic motivated a community-focused consumer mindset – even in traditionally individualistic cultures – that has put mutual support and advocacy at the forefront of various consumer behaviours. The rise of the Black Lives Matter movement and the Global Climate Strike show how people are gathering to clamour for positive change,” says Matthew. Think equity, agency, and rights. “There is an opportunity for brands to take a lead in addressing these issues, and they may risk being seen as a hindrance if they fail to do so.” FEB/APR 2021 | 14 | WWW.FRANCHISEBUSINESS.COM.AU
3. PRIORITY SHIFT Excess consumerism is out and a scarcity mindset is favoured as consumers go back to essentials, with a focus on flexible possessions and a reframing of what ownership actually means. In this search for things that matter to them, says Mintel, affordability and convenience, safety, protection, and durability of goods are top of mind for consumers. “Brands should take advantage of this opportunity to become agents of positive change and to prove that they offer good value and tangible results,” Matthew says.
6. SUSTAINABLE SPACES There has been a subtle shift in consumer awareness of our relationship with the spaces in which we live, accelerating demand for sustainability. “With access to more information than ever before, consumers are demanding greater transparency from the brands they buy from, including how brands plan to tackle sustainability challenges,” Matthew points out. “As consumers increasingly appreciate the complexity of the issues the world faces, brands have an opportunity to proactively innovate products and services that help them deal with the cumulative impact of everyday living—from a focus on localism and supporting communities to nudging consumers towards incrementally better habits that combine to great effect,” he adds.
4. COMING TOGETHER A sense of unity and community has emerged from the 2020 Covid-19 experience as we seek human connection and interactions more than ever. Covid restrictions and social distancing measures served to highlight the importance of supporting one another. “A widespread understanding that community and belonging are critical to combat loneliness offers brands the chance to celebrate consumer identities and offer novel ways to support each other.”
7. DIGITAL DILEMMAS
5. VIRTUAL LIVES Technology advances, the need for escapism and the unavoidable switch to online communication caused by the pandemic has driven consumers towards digital experiences. “The impact of the pandemic and continued innovation in technology has meant that experiences continue to change and the role digital entertainment plays in fostering positivity and connecting people is of particular importance. “The fast-growing popularity of gaming and esports offers opportunities for brands from multiple markets, either via collaborations to create collectible in-game items, by creating their own games, or pairing products to go with gaming sessions.”
While there are many benefits to a more digitally-connected life, concerns about its negative impacts are putting consumers in a predicament. “Technology has played a massive role in offering solutions that provide peace of mind in uncertain times. While technology is meant to improve life, it is worth taking a step back to assess how consumers feel about the technology with which they surround themselves. “eCommerce and online transactions have the potential to become, and remain, the norm. Thus brands are encouraged to innovate digital capabilities in anticipation of consumers' needs and, crucially, to expertly bridge the gap between the online and offline worlds to offer a more reliable and consistent experience,” suggests Matthew.
FEB/APR 2021 | 15 | WWW.FRANCHISEBUSINESS.COM.AU
Source: Mintel Consumer Trends 2021, January 2021.
THE LIST
6
TASTE-TASTIC BRANDS Foodie franchises with an appetite for menu innovation.
S
ix fast food chains that want to add even more temptation to their popular offering with some exciting flavours and new items on the menu. Fresh, tasty ideas keep customers coming back.
1. GELATISSIMO
The Aussie gelato chain has always put innovation on the menu, with limited time imaginative flavours encouraging new and regular customers in store. This summer we’ve seen January’s flavour, a rich and decadent Caramel Milk with Nutty Hokey Pokey- picking up on the cult status of the Cadbury version. It follows on from the December taste of patisserie supremo Adriano Zumbo’s collection of fancy flavours: Chocolate Wagon with Davidson Plum, the Iced Man-GoGo, and the Salted Caramel Lamington. Gelatissimo opened the first store in Sydney in 2002 making gelato fresh in-store with no artificial colours or flavours using traditional Italian methods. The gelato is available across 44 stores throughout Australia and in 26 overseas locations including Singapore and China.
2. DOMINO’S Aussie chicken is the new superstar at Domino’s, a brand recognised for innovation in technology. A new chicken range includes three new pizzas – Chicken Supreme, Buffalo Chicken and Chicken Fresco – as well as Boneless Chicken Tenders and Seasoned Chicken Wings, Domino’s has also dipped into the sauce, introducing a range including the infamous Frank’s Red Hot sauce. Domino’s Australia and New Zealand culinary innovation and development chef Michael Treacy says the company is proud to bring Aussies fresher, tastier chicken with more flavour. “Domino’s new oven awesome chicken range is baked to perfection, meaning more flavour and crunch, without the added grease from the fryer,” he says. The pizzas are priced at $15 delivered, no minimum spend.
FEB/APR 2021 | 16 | WWW.FRANCHISEBUSINESS.COM.AU
The 7-Eleven difference:
how a strong franchisor can set up franchisees for success The impacts of Covid-19 have shown more than ever the importance of having a strong and supportive franchisor sitting behind a franchisee allowing them to get on with running their business in the knowledge their franchisor is navigating the fast changing business landscape with them. 7-Eleven General Manager Retail Operations, Braeden Lord, said that the 7-Eleven team has worked together to safely provide fuel, food, and essentials locally during the pandemic. “Safety of our customers and teams was our first focus. We quickly established a Covid-19 response team with representatives from all parts of the business including safety and retail operations. Meeting daily, or more as needed, the team reviewed the latest government information, adapted existing processes, created new processes, rolled out new safety equipment and importantly, provided information updates to our franchisees across the country. We also had our team in the field supporting stores to adapt to the new environment,” Mr Lord said. “The response team drove the swift introduction of a special Covid-19 Leave Initiative in March, fully funded by 7-Eleven. This ensures anyone who needs to access paid sick leave due to Covid-19 could access it, regardless of whether they have leave entitlements.” This shared way of working together is an example of how 7-Eleven Australia’s model works differently to many franchise businesses.
THE 7-ELEVEN DIFFERENCE
“At the core, the success of our franchise model is the sharing of the gross profit derived from store sales. Stores and the support office are jointly rewarded by profitable sales. As a franchisor we pay the rent, utilities, equipment, technology, marketing,
maintenance, training systems, HR systems, and provide field support. With all this cost and distraction off a franchisee’s mind they are free to concentrate on employing a great team,” Mr Lord said. Albeit wages are a significant cost in operating a 24/7 business, Mr Lord said that the 7-Eleven system has safeguards in place to ensure franchisees can fund a fully costed roster even when business is tough, such as during Covid-19. “It is vital that our businesses can afford a fully costed roster at award rates, including paying the franchisees for the hours they work in the store. To support franchisees, we have a Minimum Gross Income mechanism where we top up the income of stores who might be experiencing a downturn in gross profit below the required threshold to support the wage costs. “An unfortunate outcome of Covid-19 is an increased number of stores that are receiving income support. The peace of mind provided by the financial support for stores that need it strengthens the partnership.” he said. “This practice of financial support demonstrates how we work together the good times and the bad. Coaching a franchisee on how best to achieve profitable and sustainable business performance involves a need based individual approach to every store. Adapting the coaching as maturity of the store and franchisee alter through the relationship will be a key to the future success.” Mr Lord said. “As our customers’ needs and lifestyles rapidly change, our close working relationship with franchisees places us in the best possible position for enduring success.” Mr Lord concluded. Learn more about how 7-Eleven can help you achieve your goals here.
THE LIST
3. BEN & JERRY’S Raw cookie dough has become a global phenomenon, but back in 1984, Ben & Jerry’s became the first ice cream company to drop big chunks of chocolate chip cookie dough into a batch of ice cream. Now the ice-cream maker with a cheeky sense of humour has done a flip, freed the chunks from the freezer and created a whole new ice-cream-free snack. Cookie Dough Chunks are available for a limited time at select Ben & Jerry’s Scoop Stores across Australia in two flavours: Chocolate Chip Cookie Dough and Half Baked Chunks (the dough mixed with fudge brownies). Francesca Lucas, retail marketing manager, Ben & Jerry’s Australia, says “Cookie dough is what Ben & Jerry’s fans know and love us for, and we know our fans often dig around the ice cream to get to their favourite part – the cookie dough chunks! “So, we thought, why not make it easier and put the chunks in a bag of their own? Snack on them straight from the bag, or sprinkle over a scoop of your favourite Ben & Jerry’s ice cream.”
4. ZARRAFFA’S
5. GLORIA JEAN’S
6. BASKIN-ROBBINS
What’s on the menu at Zarraffa’s? The new summer drink is a creamy, crumbly twist on Zarraffa’s White Chocolate Fusion, featuring its signature espresso, smashed cookies, white chocolate fudge and a crown of cookies and cream. Zarraffa’s Coffee CEO Marnie Sheldon says “The Cookies and Cream Fusion pairs our award-winning Zarraffa’s espresso taste with one of the most beloved flavour mash ups of all time – cookies and cream.” Marnie says customers have been requesting the flavour combination for years. “The drink can also be customised without coffee for those who prefer it as a crème version instead,” she says. With any purchase of the new summer drink, Zarraffa’s Z Card holders can swipe their card to go in the draw to win one of four $2,000 RedBalloon vouchers. Customers can choose their own summer adventure – like flying passenger in a fighter jet or taking a V8 supercar for a hot lap. Membership to the rewards program is open to anyone at any Zarraffa’s Coffee store and requires a one-off $7.50 joining fee. Zarraffa’s Coffee has over 70 locations across Queensland, New South Wales and Western Australia.
Cafe chain Gloria Jean’s has introduced a new range of chillers. Over the years these icy drinks have proved to be a favourite amongst customers with more than 7.7 million chillers sold between 1 January 2019 and 23 October 2020. Now the chillers, which are one of the brand’s number top menu items, are being brought into a new era with a selection of cookies and cream flavours, including a salted caramel and a mint chiller, in partnership with Oreo. Kate McGrath, head of marketing, said, “We are excited to be partnering with Oreo to launch this exciting new chiller range and bring more choice to our loyal customers.” Over the summer months Gloria Jean’s was also promoting fruit chillers, cold brew and kids meal boxes toastini/toastie and a junior Chiller with a collectable cup. Gloria Jean’s is now in more than 50 countries around the world. Gloria Jean’s opened its first store in Sydney in 1996, growing to over 200 locations across the country.
Ice-cream is a natural companion to summer, but even in the coldest months consumers can get a taste for a chilled dessert. Menulog revealed that ice cream orders had risen 26 per cent over winter 2020, with dairy-free ice cream orders lifting 24 per cent. So it made sense for Baskin-Robbins to launch two new vegan flavours in August: Choc Chip Cookie Dough and Coco Nuts ‘n’ Cream. A special Menulog offer for a limited time allowed customers to order a small Choc Chip Cookie Dough Take Home Pack and receive a complementary Coco Nuts ‘n’ Cream Small Take Home Pack.
FEB/APR 2021 | 18 | WWW.FRANCHISEBUSINESS.COM.AU
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LEADERSHIP COVER STORY
CHOOK CHAMPION
FEB/APR 2021 | 20 | WWW.FRANCHISEBUSINESS.COM.AU
AT THE END OF 2020... 50% of store upgrades complete 4 stores built 2 stores under construction
THE CHOOK THAT FLIES Chicken Treat is boasting some staggering statistics: • 36 months of positive growth • best sales in two decades • franchisee profitability up 120 per cent year on year • sales growth has tripled in three
This WA brand has shaken its tail feathers and is now strutting a new look and a new purpose, backed by great sales figures and an ambition to grow.
years • plans to increase sales by a further 50 per cent by FY23.
By Sarah Stowe
A
re you all fired up for a chicken resurgence? Western Australia’s favourite ready-toeat chook chain is on the march, with 10 stores to be added to the home state by the end of 2021, and in 2022 a launch into the eastern seaboard – what MD Mimma Battista is calling “breaking the border”. When Mimma spoke with Inside Franchise Business in December, the Christmas break was a welcome light at the end of the tunnel of 2020. Which is not to say the brand has had a bad year – far from it. With four stores opened between 2019 and 2020, implementation of the strategy which is overhauling the iconic chicken chain well underway, and some staggeringly good statistics showcasing an increase in sales and franchisee profitability, Chicken Treat can regard 2020 as the surprising 12 months that delivered its third year of positive growth. It’s testament to the strength of the
franchise network, and to Mimma’s leadership, that in the Covid-year we have emerged from the fast food business has seen so many positives. It’s the partnership at the heart of the franchise relationship that helped get everyone through the difficult, challenging year that all businesses and business owners faced in 2020. As franchisor, Mimma (who prefers to use the term partner) ensured the support team was focused on what was important in 2020. “Our strategy was to provide comfort; all franchisees needed to focus on was great customer experience. Over the past few years, our strong focus has been on labour, cost of goods sold, inventory management.”
INSIGHTS THAT HELPED FRANCHISEES Chicken Treat introduced shared benchmarking data to help franchisees understand the opportunities they could FEB/APR 2021 | 21 | WWW.FRANCHISEBUSINESS.COM.AU
work with their business development manager to achieve. “We’re here focused on our franchise partners and their success, particularly growing top-line sales and profitability. Their success is our success.” Mimma says the profitability measures were in place pre-Covid. It was a combination of strong leadership, clear communications, and the safety of franchisees, staff and customers that became the fuel that drove business success. During Covid-19, Chicken Treat started benchmarking customer traffic flows and discovered there was a change to Aussies’ dining habits. “We started to experience stronger lunch and snack day parts. Dinners are traditionally 6.30 pm on, they peak at 7.30–8 pm. What we were seeing with working from home is the advent of early dinner, starting at 5.30 pm. “We kept the network informed so they could make roster changes to support the increase in business. It minimised customer
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COVER STORY
WHEN’S DINNER?
Working from home has shaken up the dining traditions: • lunch is at 12 – and bigger • snacks are bigger • dinner is 5.30 onwards.
issues,” says Mimma. “We also saw a return to comfort; in uncertain times we love to indulge ourselves. Even as the seasons change, we see that continuing.”
A NEW LOOK CHOOK
THE SAME, BUT DIFFERENT
The key to core quality menu improvement is knowing what to change, and what not to change. Here are some ways Chicken Treat has switched up the menu: • Rotisserie chicken - new sides and seasonings are spicing up the chicken, cooked the traditional way. • There’s been a move to fresh chicken breast in burgers. • Fried chicken has a new crisp, fresh coating that repels oil and steams the chicken. • The addition of boneless chicken breast pieces.
The brand overhaul has seen a repositioning of the brand, menu improvements and food innovations with a touch of fun. “It’s about being true to ourselves, our brand identity.” To reach this point required significant research, explains Mimma, who came into the brand as CEO six years ago with experience as an executive in the food and beverage industry, including nine years at Gloria Jean’s Coffees. “For any CEO stepping into the chair there is an element of intuition, but you can’t go with intuition to the board, it requires consumer-led research and researching franchise partners and team members.” Mimma says what franchise members wanted is essentially what they are now getting. “Their future view of the brand is where we are today – a modern brand with quality products, a fun brand.” She is thrilled with the willingness of franchisees to join the journey, to adapt and change systems and products. “To their credit they embraced the changes. It was a fairly in-depth process, we modelled out the financial perspective and walked them through it. We worked as a group with the [internal] Franchise Advisory Council and the network, and embraced innovation and new technology, and store design and upgrade works. “There is great spirit in the franchise community, a very positive mindset. It’s FEB/APR 2021 | 22 | WWW.FRANCHISEBUSINESS.COM.AU
the culture. If that’s strong, everything flows out of there. Franchisees have a desire to be successful, to provide an amazing experience." There is no doubt the fast food industry remains highly competitive and Chicken Treat has its place as a “trusted, affordable meal replacement whether you are time poor or looking for an affordable food experience” Mimma adds. Coming out of a Covid-19 mindset, the elevation of customer experience will be highly important, she predicts. And that’s why upgrading the assets is a high priority at Chicken Treat. The business is aiming for frictionless technology to help customers order and receive their meal efficiently. That could be kerbside pick-up, drivethrough lanes, ordering ahead, in-house kiosk ordering. “It is important to understand what customers want. We have a strong e-commerce platform. How do we make that amazing and easy for a customer?” The original goal was to “fix the stores, fix the food, fix the brand”, says Mimma. Now growth is very much part of the plan. “Part of our strategy is to have another 20 stores in three years in WA. We are working quite heavily on moving into the eastern seaboard – breaking borders by 2022.” While the fundamentals will form the foundation for the brand’s expansion, transposing Chicken Treat 5000 km across the country to the eastern seaboard may mean the brand will look different in NSW, Queensland and Victoria. “It’s about understanding the customers, the proposition, looking at the data for the brand and mapping success, where do we go and what does the customer want?” n
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LEADERSHIP
HAIR EXTENSION Getting the right people on board will help Price Attack achieve its big growth targets.
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rice Attack CEO John Pascoe has a pedigree in franchising that includes McDonaldʼs, the Foodco Group and Battery World. And when he took over the reins at the hair chain in February 2020 he brought a commitment to a dedicated brand strategy that enabled the national chain of hairdressing salons to ride through the worst of the Covid-19 pandemic. However, when he moved into his office at Eagle Farm in Brisbane, little did he realise what was ahead of him. Apart from Covid, internal ructions within the chain including impending legal action in 2021 to terminate a franchisee with five franchises, along with a former solicitor of the group being disbarred, turned 2020 into a year that needed quick reflexes.
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My immediate goals will also ensure we as the franchisor offer guidance and support to all franchisees, help to raise network sales so the franchisees can make better profits and lift the value of the franchise as a business
“Just like marrying into a blended family, when taking over a mature franchise there are some relationships that have deteriorated and need some repair, while others are simply beyond it,” he says. “Covid just added to the challenges. “While we are very much service based, during the lockdowns we were quick to pivot to maximise the strength of our retail arm – providing contactless delivery, along with free delivery to essential care workers and groups most at risk.” With the positivity of the new year, rapid expansion and bolder branding will continue to be John’s focus, with a clear strategy to keep up the momentum of growth and brand awareness. “The brand presents wonderful opportunities for entrepreneurial Australians looking for a growing business,” he says. “There is huge satisfaction in being your own boss. After leaving the Army, I re-joined McDonalds where I saw first-hand how lives were transformed when someone became their own boss. This was reinforced both at Foodco and Battery World. “There will always be bad press for franchising: that’s life in business, bad news is always more salacious than good, but the franchise model continues to be the most successful and safe way to navigate life in a small business. It’s starting a business, and being able to run that business without having to worry about all the knowledge you need to have to run a successful business such as operations, product and marketing expertise.” Price Attack started in the 1980s and is a 100 per cent Australian-owned franchisor. Today there are 65 stores nationally including five company stores and the big focus is on expansion: Price Attack is committing to massive recruitment. New South Wales and Victoria are the hot spots and not just in the city centres; the hair chain is prioritising new stores in regional centres along with Queensland’s regional hubs Rockhampton, Cairns and Townsville. “We are building on a long history of solid performance and this is reflected in franchisee application,” John says. “We received more than 100 applications in the last three months. Evidence the pandemic has
created a demand for people to buy themselves a job. Many of the enquiries are in our regional centres proving the pull for a sea or tree change. “While we are ambitious to reach our target of 100 stores in the next few years, it cannot be to the detriment to the solid business we have established over recent years. Our brand value has never been more important, and we cannot afford to cash that in for the sake of expansion. Yes, there will be growth but with the right people in place.” Interest in franchising comes from all works of life, from teachers and accountants to retail professionals. The company is also undertaking significant brand refreshes to stores over the next few years. “My immediate goals will also ensure we as the franchisor offer guidance and support to all franchisees, help to raise network sales so the franchisees can make better profits and lift the value of the franchise as a business,” John says. “We are in the process of implementing committees such as product committees and a franchisee representation network steering group.” Also in the list of actions are changing the way rents are negotiated, to create a fairer outcome for both parties. “One thing Covid shone a light on, was the divide between what is happening within shopping centres with empty shops and the expectation of rents,” he says. “We are speaking with landlords across Australia to ensure fairer outcomes for all of our network: no one wants to see empty centres. “The other thing Covid shone a light on was our business model was both recession and Covid-proof – because we are both service and retail: and we can pivot accordingly when needed.” A self-confessed AFL fan, when he is not at Price Attack, Pascoe is kicking the footy with his daughter so not surprisingly he welcomed and steered Price Attack’s sponsorship of the AFLW. “This is a perfect fit for us as an organisation to share common interests as we both provide a platform for women to shine,” he says. n
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LEADERSHIP
TAKING THE STRESS
OUT OF TAX
Bookkeeping chain Shoebox Books has released a brand new franchise business model, Shoebox Tax.
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he new franchise has been in planning for two years, and with the changes of 2020 including legislation changes, tax issues and Covid, the project was fast forwarded for an early launch. Shoebox Tax was unveiled to the existing network first, and six franchisees had already spotted the income potential and signed up to the new business in late 2020. The first Shoebox Tax franchisees opened their doors in January and February. Now the franchisors are ready to spread the word further afield, and start the process of signing up brand new franchisees in 2021. Shoebox co-founder and national franchise recruitment director Yvette Coad says “We offered it first to the network to see the response. We anticipate over the next 12 months to bring on 20 to 25 franchisees. It’s about the quality, not the number. “We’re all over Australia, except Northern Territory, and we’ve had a lot of enquiries so far. Growth should double,” she predicts. Shoebox is a preferred supplier for bookkeeping services for fellow franchise brands including Hire A Hubby and DiggerMate, and has conducted bookkeeping webinars for BaskinRobbins and GJ Gardiner franchise networks.
Unsurprisingly, given the nature of 2020, last year resulted in a rise in demand for expert bookkeeping and tax advice, and Shoebox franchisees recorded nearly 8 million Jobkeeper payments for their clients throughout the year. Overall 2020 delivered a rise of 15 per cent in franchisee turnover, and an increase in potential franchisees’ interest in the business, in part due to the number of redundancies that occurred during the year. So what’s the deal? Shoebox aims to ease the tax, accounting and bookkeeping issues for small businesses and tradies in particular by ditching the formal suit and tie - and the office. The business, like the bookkeeping arm, is fully mobile, so franchisees go to the client. A brand new franchisee can expect to pay $59,990+GST for a Shoebox Tax business; for existing franchisees the cost is an additional $36,000 + GST. National marketing manager Harry Beech believes the new addition adds another layer in the franchise. “We will still have the same training, though increased to two weeks instead of one, and franchisees will be supervised for a two year period, depending on qualifications.” n
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LEADERSHIP
ON THE FRONTLINE After being recently acquired by a US firm, Frontline Recruitment Group and its franchisees are looking forward to a bigger, brighter future. By Sarah Stowe
A
ustralia’s business landscape has many tales of entrepreneurs who built a mega success from the kitchen table, and Frontline Recruitment is one of those – albeit the early days of business being conducted from a garden shed, then a garage, and even a caravan. In 1995 Deb Davis started her retail training business but before long spotted the potential in recruitment, helping employers in retail find great staff. It was an obvious next step to establish a franchising model for the recruitment firm. After 25 years in private ownership, in 2020 Frontline Recruitment Group (FRG) was acquired by another franchiseexperienced family firm, Express Recruitment - founded in the US in 1983 and now with more than 825 global locations.
The new owners have been market leaders in temporary recruitment, and will be launching a proof of concept model in Australia in March this year. Heading up both arms of the Aussie business is former Anytime Fitness Australia boss Arthur McColl. He took on his CEO role early in 2020, and soon found himself in a new marketplace with an established brand facing all the challenges of the pandemic. Helping the businesses to survive, particularly in Victoria, became a priority, as Arthur focused his role on franchisee engagement. Now reflecting on the first few months in the leadership role, he’s happy to report in November the business recorded revenue at 95 per cent of the figure from the year before. December started well too. Some of that is down to business improvements: trusting the franchisor,
building confidence, improving marketing. Arthur admits there has been an upswing in the recruitment market too, boosted with an easing of competition as a number of smaller firms have shut their doors. “And the market will grow. Companies prefer to offload recruitment to an agency,” he says. “We don’t work in the larger organisations, we work with firms of 30 to 100 employees, who are still building the confidence to employ more people. We feel momentum building as JobKeeper is coming to an end.” There’s been a lively response from potential franchisees as well, he reports, with business and opportunities picking up. So in the lead-up to the new year, the focus was all about preparation. Arthur describes it as “almost pre-season training, getting all the platforms built, franchisees trained and ready for new toolkits in January.
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WHAT’S THE TREND IN RECRUITMENT? Candidates themselves are looking for additional support from their employers in areas such as mental health, and are looking for a good culture, not just good wages.
“In FRG we’ve put a lot more focus on improving small business skills. We’ve done a lot of work on building foundations, assessing each franchisees’ knowledge on social media, finance, and put in place the right training.”
WORKING TWO MODELS FRG franchisees buy a business specialising in recruiting full-time employees into one industry sector. The Express Recruitment model is territorybased, with franchisees able to employ any temp hire in the area. “We have got an older demographic, people in their 40s and 50s, who have been involved in their industry; they are specialists, they have lots of contacts and an appetite for sales. It’s an over40s lifestyle change. They know the skill set. They can be self-reliant but they want the infrastructure of software and marketing.” For a franchisee coming into FRG, it’s not a conventional bricks and mortar model. Franchisees can operate this low-cost entry business at home, in a shared workspace or an office. The new message is FRG powered by Express as the Australian-grown business brings on more industries, such as IT and digital, and the executive field. Arthur is confident FRG will be diving into more verticals in time – and a broader horizon. The major growth for Australia,
though, will be through the Express model, which is currently being mapped out to ensure it makes the most of its significant potential. “We think the temping sector has real potential because there are more companies employing on contract basis at a senior level, and more casual staff.” The ANZ EEP support package includes the funding of candidate payroll and end to end payroll management system allowing the agency owner to concentrate on sourcing clients & candidates. “The more I spend time with Express, the more I think they are quite incredible – they’ve been in business for 40 years, and employees have been there more than 10, 20, even 30 years. So it’s very franchisee-first.” Although some franchisees already operating an FRG business may choose to take on the new model, Arthur is quick to point out not everyone is suited to such different business profiles. The pace of FRG is long-term relationship building; Express is faster paced. “Not every owner is suitable for both brands,” he says. And franchisees who are the right fit will need to operate completely separate teams. There is a team of 18 supporting both brands in a newly relocated Sydney CBD head office, poised to help franchisees develop their businesses, and to oversee the expansion of the brands across Australia and New Zealand.
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Franchisee Q&A Debbie Glenn, Frontline Recruitment Group, Health, Auckland Q: What was your experience of running a franchise through a significant ownership change during a turbulent time with Covid-19? A: Running any business during the turbulent times of Covid-19 was challenging. The support and communication from both the outgoing leadership team and the incumbent was exceptional. The outgoing management had the experience of running the franchise through the GFC to draw on, while the new leadership team had strong corporate backgrounds to turn to and change management experience. Q: What differences have you noticed as a franchisee? A: As we have moved from a familyowned business to being a part of a global family, there has been a shift to a more strategic direction with a clearly defined and communicated phased approach to the first nine months under the new leadership. The new owners have been quick to extend their resources to bolster the Australian team and provide access to their wealth of knowledge and training. Q: What impact has this had on your business so far? A: It is too early to see the results flow to the bottom line in my business but there is certainly a groundswell that is building momentum. However, there is certainly a strong positivity amongst the franchisees and their teams both around the new culture and the future of our businesses. Q: How has it impacted your feelings about the future of the business? A: While being part of a family business was fantastic, I feel like we are moving from adolescence to adulthood as a business overall with clear goals, aspirations and a game plan. ⊲
LEADERSHIP
Franchisee Q&A Melinda Flavell, Frontline Recruitment Group, Retail, northern NSW
How Arthur McColl took on the recruitment challenge...
“It is a completely new sector to me, that’s refreshing,” he says. “Coming into recruitment – placing people into work – is very honourable, there’s a purpose to what we’re doing.” First up was a discovery phase, a period of getting to understand the business model and the network of franchisees. “I had a productive three months and in the second quarter started building the foundations [to take the business to the next level]. “Bringing in a new CEO is a positive change but it’s change nonetheless. I came in looking for ways to improve the business,” Arthur says. And that’s going back to basics, he says, negotiating changes that build trust and look to provide additional marketing support for franchisees and restructure some central costs. “I got wonderful insights into what was and wasn’t working, finding out what are the real issues, and putting in solutions.” With ‘Arthur says he follows the advice of Chuck Runyon, the founder of Anytime Fitness: build trust, drive profitability, and create a compelling vision for the future.
Q: What was your experience of running a franchise through a significant ownership change during a turbulent time with Covid-19? A: The significant ownership change did not concern me as my main area of focus was surviving Covid-19 and the loss of sales. Until the change of ownership, I felt there was a lack of shared information in regards to stimulus and how to access it and business strategies on how to survive in such an uncertain time, which could sometimes change daily. Personally, having the main FAST (Frontline Agency Support Team) team members retained that I have a very long, solid relationship with made the transition of ownership simpler. At times during Covid-19 I felt alone; however, my network within the network allowed me a trusted space to share my emotions and concerns, which helped me work through the tough parts. As part of a franchise network, the choice to withdraw and not work was never on the table. Q: What differences have you noticed as a franchisee? A: Since the changes, there have only been positive moves made from my side of things. Key FAST team members have always been a crucial support network for me and I feel that Arthur’s arrival and the people he has brought to the executive team add value to my business. The culture has changed dramatically and in the last six months I have been made to feel of more value to the business. The biggest difference is the equality of all franchisees and that big is not best, we are all just different. Engagement from both directions (franchisor to franchisees) has increased as communication is consistent, transparent and extremely positive. Although the new ownership is driving the changes financially, I feel the key changes are being masterminded and implemented by the executive team led by Arthur. At times it is forthright, however always transparent and constructive.
Q: What impact has this had on your business so far? A: My business has (or is) coming out of Covid-19 in a much-improved profitable position, including cash at bank. Although sales dropped initially, my business was able to contract costs considerably and quickly. Due to the changes made under Arthur and new ownership, my business presence in my market is increasing, which in turn will allow me to help more clients and candidates and find solutions for more people. The marketing that has been introduced recently has been amazing and I feel that it is already making a difference in my markets. With the introduction of education, in social media options and franchisees managing their own social media pages, the result is going to be a game-changer for my business. Another big change is the discussions around self-development and that in time, we are all going to be able to participate in some form of self-learning that will make us all better business owners and therefore get better results. Q: How has it impacted your feelings about the future of the business? A: My feelings for this business have been reinvigorated since Arthur’s arrival. After 17 years’ tenure I now plan to stay in the business and be a major part of the Express and FRG community. I look forward to the increase of agencies and business networks and how I can add value to people who are driven by helping people and have a superpower of kindness.n
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the authority in hair
Be in business for YOU. NOW IS THE TIME TO DO BUSINESS. A Price Attack franchise offers you dual income streams – a full service hair salon and retail of professional hair and beauty products. Both strong and both sustainable.
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LEADERSHIP
BACK IN THE POULTRY GAME Lenard Poulter has taken back the reins of Lenard’s Chicken with a new business model and a renewed passion for all things chook. By Sarah Stowe
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enard Poulter is all fired up. The founder of Lenard’s Chicken has returned to the helm of his retail chain, which he sold to private equity in 2012. It was not a happy experience for the chicken chain, he says, and he bought back the business in 2018. “Investment bankers see your dream and your numbers but they can’t execute it, they don’t know how to get it done,” he says. Lenard Poulter has spent nearly three years fine tuning a new business model he believes is just right for the 2020s and a younger generation that values convenience. It’s always been the way for Lenardʼs, which made its name creating prepared chicken cuts, but now there’s a whole new look, purpose and drive, led by the boss himself. The Lenard’s story started 33 years ago and
in its glory days had a footprint of 200 retail outlets. Today there are just 30 stores, but it’s starting to grow again, says Lenard. “I’m more excited today than I was three years ago,” he says. The chicken shop today has a completely different look. It’s modern and convenienceoriented, with a 50/50 frozen/fresh product mix of ready-to-eat meals. It’s about grab and go for the customer, and a hub and spoke business model for the franchisee. The new store fits into a 40sqm space, a much more cost-effective option than the traditional 80–100sqm outlet we are all familiar with. “Really, the big thing is it’s a roll-in roll-out. We don’t manufacture on site so the fitout is less than $100,000. It’s more modern and engaging with young consumers.” ⊲
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LEADERSHIP
Attracting a younger generation to the brand is crucial, and the chain’s products need to reflect changing tastes and demands. “The consumer who likes chicken schnitzel is ageing. I’m focused on the young generation who like sticky wings to watch the football. The younger customers like to grab something. We’re pushing quick and easy with the Lenard’s Kitchen ready-to-eat range, that’s the way it is going.” In contrast to supermarket ready-meals, which Lenard believes are sauce-heavy and under-deliver on chicken, Lenard’s dishes will be “heavily focused on chicken and taste” he says. And from chicken drumsticks to chicken steaks with tandoori, variety is key. He predicts an eventual move into an even broader product base, one that runs the spectrum from hearty dishes like osso bucco to vegetable sausage rolls. “We were a chicken shop, we are rapidly moving into the meal business,” says Lenard . “You have to decide which portion of the meal you want [as a business]. The centre of the plate is ours – the meat.” While there is more competition as supermarkets have boosted the variety of chicken meals available instore, Lenard is backing his brand’s high quality products. He sees the future as pre-packed, and believes the direction the business is heading will help reclaim some of the ground lost over the past few years. “I personally see a strong future in high quality frozen meals.” Lenard says 80 per cent of customers buy a fresh meal and freeze it. In Canada, for example, a former butcher’s chain now has 200 stores of frozen food. “Now everything is cooked. They freeze in trays – that’s where I see ourselves. It costs a lot to get casserole fresh to the consumer but we can freeze it.” It’s a trend reflected in supermarkets, which have extended the aisles for their convenient, frozen meals. “But I’m not interested in pizza, I’m interested in real food,” adds Lenard . He’s also looking to home delivery, which would be an extension to the hub and spoke business model. Franchisees will need a commissary kitchen, which can
We’re pushing quick and easy with the Lenard’s Kitchen ready-to-eat range, that’s the way it is going.
also have a storefront, and a van to deliver the product to the stores in the franchisee’s region. All of this means the profile of the franchisee has changed. While the traditional mum-and-dad franchisee can operate the business, they need to be capable of managing $150,000 a week turnover, and running multiple outlets. Business acumen is a must. “Country regions will be good for us, taking city flavours to the country.” Toowoomba and Dubbo, for instance, might each provide for up to four hub and spoke operations or regions. Lenard expects the Gold Coast could have 20 stores, which might be under one or two franchisees, and the brand will be back in Sydney this year with up to four regions operating. “We’ve had some really good franchisees. The franchisees who stuck with us over the last three years, they’re going great guns and are on their way back.” Conscious of CEOs’ tendencies to bring in their own value and forget overall strategy, Len is maintaining a hands-on leadership role for the foreseeable future. “It’s my credibility,” he says. “I see five years in front of me right now. This time there will be no CEOs until I believe it’s too big for me to manage. I’m making sure the product matches the consumer needs, taking a major role in marketing, branding and positioning of the business. “This is a genuine turnaround of the business,” Lenard says. n
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LEADERSHIP
DOUBLING UP One business isn’t enough for these multi-unit franchisees who see a bright future ahead with their chosen brands.
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unning two outlets isn’t double the trouble for either franchisors-turnedfranchisees Sandrine Leven and Rizwan Syed, or accountantturned-foodie Simpy Malhotra. All three are confident of their ability to build strong businesses and see growth
from multiple outlets as the way forward. Sandrine and Rizwan are experienced business owners, starting up the Zubias Threading concept 13 years ago. The idea was franchised, and there are three franchisees remaining in the chain of 13. But 2020 forced a business pivot, as it did for so many, and Sandrine and Rizwan moved away from the franchise model to pitch the
concept as a higher-end premium business they could operate themselves. For Simpy, coming into franchising has provided a sense of ownership, and a real change from her earlier career as an accountant – although her skills have proved invaluable.
SIMPY, MUFFIN BREAK ARMADALE AND JAMAICA BLUE ELLENBROOK
quite a different focus.The challenge is the recipes and the way we cook or bake are totally different. At head office the marketing team is the same for both, which makes my life easy. The teamwork is the same – we know each other, it’s easy for us, and the suppliers and the software are the same.
HOW AND WHY DID YOU BUY A FRANCHISE? I was an accountant then worked with the NDIS before I became a franchisee. I am the sole business owner and I started in December 2018. I spent a long time doing homework on franchising, and chose hospitality because there is a never-ending demand. Somebody suggested Muffin Break to me and I really, really love the brand. The second store – I was looking for something more restaurant-style and Jamaica Blue fits that model, serving lunches. HOW ARE YOU MANAGING TWO OUTLETS? I will be overseeing them both but will be hands-on with Jamaica Blue. I’ve been out of the Muffin Break cafe for the last couple of months and it’s running beautifully under a management set-up. WHAT’S IT LIKE WORKING WITH TWO BRANDS? That’s what is really good about Foodco, you can go for different brands. I’m keeping them entirely separate, so there is no mixing of teams and they have
WHY DID YOU CHOOSE THE LOCATION? It is a 45 minute drive from one to another. My Armadale store is in a very quiet area. When I was offered Ellenbrook I could see this will be profitable, I can see the growth in this area. My accounting background helped me spot the potential. Profit is not too far off, there’s hidden growth. WHAT DOES THE FUTURE LOOK LIKE FOR YOU? I will purchase more stores. I can bring my accounting management and budgeting skills to keep costs in control. I love challenges, and it’s a big challenge to come from management to hands-on hospitality. Now my family is out of the business, they’re all working elsewhere. I love it. I can explore the industry and learn more.
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Franchisors Matej Varhalik and Zuzana Varhalikova with franchisees Sandrine Leven and Rizwan Syed
SANDRINE AND RIZWAN, SPEEDFIT FRANCHISEES WHY DID YOU BUY A SPEEDFIT BUSINESS IN 2020? Sandrine: I think 2020 allowed us to slow down and reflect a lot. We have another business, Zubias Threading, which we started in the middle of the GFC in 2007. It was our first business venture and our friends thought us crazy. But our ignorance turned out to be a blessing: competition was quite weak, and we did well. What we want in our life now is work–life balance and SpeedFit ticked all the boxes. Rizwan: We want to be doing something closer to our values and vision in life. We’ve watched this franchisor grow. We know they are doing it for the right reasons, they value people and fairness. It’s not about spinning the dial and getting as much money as possible. They are very open, very approachable, and that helped us to pick the right franchisor. Every member gives us a financial return directly on our time – we have returning customers. It makes financial sense. And on a personal note, as a franchisor at Zubias we’ve had responsibility for the whole brand. We want a business we can truly enjoy for the sake of the business. WHY ARE YOU TAKING ON A SECOND OUTLET SO SOON? Sandrine: With Zubias, we’ve had 13 locations, we are used to managing multiple locations. If we enjoy it long term our goal is to have several SpeedFit studios. It only took us two to three months to decide we love being part of the team. We want to be part of the growth. WHAT'S THE KEY TO MANAGING A SECOND STUDIO? Sandrine: A great team. A lot of business owners settle for average because they think they won’t find the right person. We don’t settle for mediocrity, we keep recruiting and training, and let go of people who don’t fit. To recruit the first person, we had to train and let go of four people. Building a great team is rewarding. We enjoy sharing knowledge and get satisfaction from building great team members.
deal with teams, conflict, contractors, people management. It was pretty automatic because we’re both driven to do the right thing. There’s no ego. HOW DO YOU JUGGLE THIS WITH ZUBIAS? Rizwan: It was quite challenging initially as the team was my responsibility so I was doing double shifts until we could build an awesome team. Now we can just meet, discuss what are the KPIs, the team is really driving the business. At Zubias we have an absolute hands-down brilliant team. We’re there to help coach and guide but each person is driven to succeed. WHAT HAS BEING A FRANCHISOR TAUGHT YOU ABOUT BEING A FRANCHISEE? Sandrine: We created our own brand. We know what it takes to build, protect and grow from scratch. It was a rollercoaster. We truly understand what’s behind the system and the brand. We know as a franchisee we don’t have to worry about so many things. We can focus our time on local business. We learned at SpeedFit we can better understand our Zubia franchisees. Rizwan: Being a franchisee, it’s a little like having tunnel vision. There is a whole brand and business that exists and franchise and franchisee problems are part of it. But for a franchisee this is the biggest question on the planet. It was an immense lesson for us, because we could understand what the franchisees would see. We were able to tune our conversations to have a bit more connection, it really helped. WHAT DO YOU WANT TO ACHIEVE AS SPEEDFIT FRANCHISEES? Rizwan: We’re good at building a studio, client base and a business asset. We could keep to two or three studios close to our house (we learned with Zubias that if locations were spread out we couldn’t visit easily). Or if we take another location a bit further away, we can build it up in a few months, build asset value, then pass it on. We could become experts in studio start-ups. It’s a promising way to sell to a franchisee who wants a ready-made business and will pay a bit more – that’s our profit margin. n
HOW DO YOU SPLIT ROLES AT SPEEDFIT? Rizwan: It’s the best person for the job. Sandrine is passionate about marketing, so she’s the boss there. I FEB/APR 2021 | 37 | WWW.FRANCHISEBUSINESS.COM.AU
LEADERSHIP
100 STUDIOS TO OPEN
Body Fit Training plans to launch 100 new studios in Australia in 2021, following on from a mega summer of openings.
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y the end of February, Body Fit Training is expecting to have more than 50 new outlets up and running, mostly in Australia, with some international locations in New Zealand and Singapore. In late 2020 the company’s second US studio opened in Fort Lauderdale, Florida. Joint CEO Richard Burnet says, “We had three quiet months between April and June where the world understandably stood still. Since June, our growth has easily surpassed pre-Covid levels.” So what is Body Fit Training? The business, which began in 2017, provides 50 minute classes of progressive programs which combine strength and resistance training with cardio. The aim is to deliver superior, and customised, results with members increasing their capacity and capability in four to six week blocks. “We have a unique group fitness offering that combines true strength training as well as great cardio workouts, and that’s certainly driving our member demand. In turn this creates demand from franchisees who understand why we’re different from other fitness offerings. “And of course, the more territories we sell and the more studios we open, the more people notice us and want to buy one before they sell out,” Richard says. In the last two and a half years of selling franchises it has opened 70 of the 170 studios sold. There are big global plans for this Aussie concept. “We have very successful flagship studios in New Zealand, Singapore and the US which will allow us to rapidly expand into those markets in particular, before we set our sites on the UK. “It’s one thing opening studios, but to open them and have them become so profitable so quickly – in markets where our brand previously hadn’t existed – gives us enormous confidence that our model will work in any location.”
WHO ARE FRANCHISEES? Typically a franchisee is an owner operator who wants to own their own business and comes from a fitness and/or a business background. Some franchisees are investors who are comfortable playing a hands-off role and will install a manager to drive the business. “Regardless, we place a lot of emphasis on people who have passion for the industry, who understand what it takes to build a community, and are willing to work hard independently and within a team (with HQ and other franchisees) to succeed,” Richard says. “We’re so proud of the amazing group of franchisees we have (many who have multiple territories) and their passion and work ethic to see Body Fit Training succeed.” The sense of belonging to a gym is part of the appeal of the brand for consumers, he believes. For franchisees, the appeal is that it’s a high margin, low volume model with low start up costs. n FEB/APR 2021 | 38 | WWW.FRANCHISEBUSINESS.COM.AU
TURN DREAMS INTO REALITY Contact the Quest franchising team to learn how you can join hundreds of successful business owners operating their very own Quest Apartment Hotel.
LEARN MORE QUESTFRANCHISING.COM.AU FEB/APR 2021 | 39 | WWW.FRANCHISEBUSINESS.COM.AU
LEADERSHIP
POWERING THE PASSION What is sparking a new direction for Aussie retail chain Battery World?
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hink camping, fishing, 4-wheel driving, boating, think batteries. A focus on helping customers fuel their leisure activities in 2020 has seen Battery World boost franchisees’ in-store sales and it’s just part of new general manager Johnny Kennedy’s big plans for growth. “Do you want to jump on your boat or your Harley? You’ll need a battery,” says Johnny Kennedy. The stores’ switch from its core business selling smaller batteries for laptops and cameras to charging recreational vehicles and equipment reflects the new tagline ‘Power your passion’. The choice of rugby union player ‘Honey Badger’ Nick Cummins as the summer’s brand ambassador enhances this, matching his adventurous outdoor lifestyle with the brand’s mission to encourage Aussies to get out and experience life to the full, says Johnny Kennedy. Battery World’s figures in early November 2020 showed Aussies were indeed taking to the roads and enjoying recreational activities - the business recorded a 45 per cent growth in the category over the previous 12 months. Now the goal is to be ‘the number one battery specialist for all your power needs’. Retail remains core to the business. While it’s important for the brand to follow the customer migration online, the unique customer requirements Johnny Kennedy
Franchisee Howden Farrar with brand ambassador Nick Cummins
demand physical stores, Johnny points out. “Batteries are something you need immediately; to try and purchase online can take up to 10 days. We have to have a strong online presence, but we want to be on the ground floor to offer exceptional service.” Johnny Kennedy is as passionate about the business of batteries as it’s possible to be, thanks to a career spent immersed in the sector. “I’ve always had a passion for fixing things and started work as an apprentice mechanic, but found I was better at talking than fixing vehicles! The boss asked if I wanted to move over to the sales side.” After a series of sales and management roles in August 2020 he was appointed general manager of Battery World. He is the fourth GM in five years and lacks franchise experience, but he sees industry experience, leadership, marketing and sales skills as valuable assets. “Our franchisees really do have passion and want to help customers. I’m here to give them direction.” The new GM is backing the expert knowledge within the franchise network as the best way to grow store sales. “Our franchisees have long tenures, they’ve accumulated a lot of knowledge. Consumers are researching a lot more online, so we’re building a website to provide educational material, tips and advice,” he says. “We’ve re-evaluated our core values and one of those is integrity. Giving the consumer the right advice even if it costs you a sale. The battery you don’t need is the most expensive one,” he adds. The business will invest in diagnostic equipment to keep up to date with complex vehicle technology, he says. There are two full time training managers helping franchisees with new and emerging technology.
NEW OPPORTUNITIES Johnny expects the recreational focus to continue, but it isn’t the only string in his bow. The battery industry expert is eyeing up trade customers as an additional revenue stream with potential for franchisees. And then there is an exciting mobile opportunity. Already franchisees can provide a roadside assistance service within their territory but Johnny Kennedy wants to take this further. Expect to see a standalone mobile business which would offer a separate opportunity to sit alongside stores whose franchisees want to concentrate solely on retail. “A big part of our business is keeping people on the road with roadside assistance, and business and home delivery. “We are the largest specialist battery retailer in Australia, but we want to be everywhere.” n
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Are you the next InXpress franchisee? If you are sales-minded, driven and enthusiastic, then InXpress’ franchise model could be for you! With the
Bhavin Shah, established InXpress Wanneroo in 2018, named Australian Franchise of the Year for 2019.
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
LEADERSHIP
SMOOTH OPERATOR SILK Laser Clinics has ambitious goals to open six to 10 clinics annually, with a goal of about 150 clinics.
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ILK Laser Clinics delivers non‑surgical aesthetic products and services, focusing on laser hair removal, cosmetic injectables, skincare services, body contouring and fat-reduction services. Franchisees also sell own-brand skincare products. Adelaide-based Martin Perelman, who is the CEO, founded the laser clinic firm back in 2009 and has helped build it up to a 53-clinic chain across the country. Now the business, backed by private equity firm Advent Partners, is ready for greater growth. To reach its ambitious goal the business has listed on the Australian Stock Exchange. Martin says, “SILK’s growth model is primarily focused on organic growth through growth in existing clinics and a network clinic rollout plan. This will allow SILK to expand its geographic footprint while maintaining a consistent offering and quality of client experience. “Our mission is to enable all consumers to have access to high quality and high efficacy non‑surgical aesthetic treatments. We aim to do this by providing high quality client service, using advanced technology, at affordable prices.” Martin says the market SILK operates in is estimated at an annual $5.4 billion. “We believe market demand is driven by the growing popularity of beauty regimes and the increasing affordability of the related services, making them more accessible. SILK’s operations have been largely resilient to the impacts of Covid‑19, with June to September 2020 trading above average and increased new client numbers suggesting a change in performance that may be sustained going forward,” he points out. December 2020 was a big month for the chain as it was named Emerging Franchisor of the Year in the Franchise Council of Australia Excellence in Franchising awards. “This really validates our brand to the larger market and helps to find the right franchisees,” Martin says. “It provides a level of comfort and trust. SILK is not very well known in NSW and Victoria.” SILK offers a traditional franchisee ownership model, and a joint venture
WHERE WILL YOU FIND SILK LASER CLINICS?
partnership with two levels of investment – the popular 50/50 buy-in, and for those potential franchisees with little access to funds, a 25/75 split. The joint venture (JV) model works well for beauty industry professionals who are specialists in the treatment aspects of the business. “Some have very big dreams but the $750,000 cost of a clinic can be quite daunting and this provides a certain level of comfort. A JV lowers the costs and allows us to run their back end; it de-risks the business.” The 25/75 investment model costs a franchisee about $185,000. The decision about which model to adopt comes down to the franchisor’s risk assessment, including location and franchisee skills. In the mix of franchisees across the network there are a handful on the low-risk JV option, about 10 in a 50/50 partnership, and 14 operating a traditional franchise model. While the network does have some investor franchisees, the priority is hands-on ownership. “We really love owner-operators working the front desk, particularly nurse injector owners. By the end of this financial year we will have 15 nurse injectors. We will look after them as they move into being a franchise owner.” Martin is proud of SILK’s South Australian roots and achievements. But he says the biggest kick comes from helping franchises follow the path to success. n
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The chain has been shopping centre based, and is increasingly heading to smaller neighbourhood areas. “We love to be near great grocery stores where our core demographic shops,” says Martin Perelman, SILK CEO. Picking the right site is about weighing up the value for the franchisee. Investing in a store offering massive revenue may not be the optimal option if it is matched with a hefty $250,000 rent. The more viable option could be one that delivers less revenue but only requires $80,000 in rental payments, Martin points out. The service-based business can fit into different sized outlets; it all depends on getting the best return for franchisees.
3 WAYS TO BUY YOUR OWN SILK BUSINESS 100% ownership 50/50 joint venture with the franchisor 25/75 joint venture with the franchisor
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. If you have a passion for people, coffee and customer service, think of this as the first step in the journey to becoming a key ingredient in our next 21 years. We have business opportunities available right across Australia. Typical investment $300k - $500k, finance options available. We look forward to taking the journey with you.
CONTACT: JARROD MONTIGUE 0420 939 328 JARROD.M@EMIRATESLR.COM.AU HUDSONSCOFFEE.COM.AU/FRANCHISING
LEADERSHIP
STAR QUALITY When times are tough, the true nature of a relationship is exposed. In the challenges of 2020 the best franchise partnerships proved their worth as franchisors stepped up to help franchisees survive and thrive during the pandemic period.
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WHAT MY FRANCHISOR DID FOR ME
Three multi-unit franchisees share how their franchisors stepped up and made a difference to their business in 2020.
GENEVIEVE SALEH 7-Eleven I have to say the support we had was amazing. At the beginning of the pandemic when the rules and government announcements were changing what felt like every hour, the 7-Eleven team were all over it. They provided constant communication to help me run my business and keep my team safe and informed. They rolled out safety signs, new cleaning schedules, and kept updating things as needed. The team came out and put in place all the social distancing signs and equipment, including new screens, very quickly. All this support helped me run my business with very low risk and protect my team and customers. It also protected my business and allowed me to focus on running it. Without that level of support, I could not imagine how I would have been on top of all the very fast-paced changes. I am so proud to be a franchisee for 7-Eleven. I can confidently and comfortably run my business knowing I have an amazing support system, and that was very evident in this crazy year called 2020.
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LEADERSHIP
WARREN D’CRUZ, Auto Masters Australia I have been a franchisee in Auto Masters for nearly 15 years now and last year definitely had its challenges and its rewards. When the Covid-19 pandemic hit I didn't know how we would be affected, whether we could open our doors. It was genuinely concerning; I thought I might have to shut my doors if everyone was in lockdown. Fortunately, my franchisor was right on it, was proactive in making sure we were classed as an essential service and we were able to remain open and operate with some changes to our practices to ensure staff and customers were safe. While our competitors reduced their advertising, my franchisor increased our advertising spend through all media and, in the process, helped to grow our turnover by more than 30 per cent. My franchisor is a strong business person who shows great pride and passion in his company. From the moment the pandemic hit Australia he was communicating with his franchisees on a regular basis, making sure we were okay. I would get a call at least weekly to check if I needed help and to ask if he could do anything for my business. He also offered to help with rent support if I needed it – I didn’t need it as we had increased turnover quite considerably. But I think the greatest help he gave me was knowing that my franchisor listened to my concerns and was there to support and help me if I needed it. I am so confident with the brand that I even opened up a new store in August.
ANTHONY STAHL, Boost Juice Measured, structured and creative describes Retail Zoo’s approach to support offered to franchise partners during the pandemic. The tiered approach included a wide range of programs that were tailored to individual partners and circumstances depending on the level of support needed. There was financial relief through royalty and marketing abetments, as well as some “cost of goods sold” relief through discounts and specials. Communication remained a high priority: top-line brand concerns were addressed, wider economic implications discussed, and we had specific local area marketing created as well. Our franchise business consultants were in continual contact discussing and implementing more operational issues including Covid-19 safety plans and team safety. Third-party consultants were engaged to explain government incentives and programs, from the National Retail Association to specific accounting firms and human resource specialists. Partners had access to help with their rental obligations both internally and externally. Marketing remained a huge part of the business with creative and edgy campaigns created, and co-founder Janine Alliss made herself available to help explain the strategy and importance of the campaigns.
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LEADERSHIP
MEGA GOALS
AT MACCA’S Landmark restaurant puts sustainability into practice.
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cDonald’s Australia has unveiled its brand new sustainability flagship restaurant. The landmark store which features recycled materials in its building and furnishings is notable for another reason too - it is the 1000th Macca’s outlet in Australia. Located in Victoria’s Melton South, the franchised store will be the pilot for testing and evaluating different sustainability initiatives before a widespread rollout across the country.
There are 25 sustainability elements including: • 100 per cent renewable energy generated on an on-site solar system • electric vehicles charging stations • recycling of Happy Meal toys • LED lighting • UberEats and DoorDash deliveries offset with carbon credits • store waste collected to recycle into carry-out bags and wraps packaging • on-site solar panels • PlayPlace equipment utilises re-purposed play equipment
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•
a wall of living plants that increase biodiversity, provide insulation and clean the air • wheel stops and kerbing made from recycled cups and plastics • a reduction in packaging • bulk oil and milk supply systems reduce packaging • sensors that dim lighting on a bright day McDonald’s Australia’s national director of development Diana Grosmann says “As a sustainability innovation hub, [this restaurant] will play a crucial role in enabling us to continue to design and build commercially practical sustainability solutions in to every new Macca’s restaurant in the years to come. “Over the coming three years we plan to invest more than $500 million to open over 80 new restaurants across Australia, incorporating a range of core sustainability elements from Restaurant 1000. “Through partnership with the franchisee of the restaurant, Ben Westover, we hope Restaurant 1000 will allow us to learn quickly and expand successful innovation trials, so we can continue to implement practices, equipment and products to improve our environmental impact,” says Grosmann. n FEB/APR 2021 | 49 | WWW.FRANCHISEBUSINESS.COM.AU
SPOTLIGHT ON CAFES
Fuelling the coffee habit Cafe chains share what will be crucial to successful business in 2021. By Sarah Stowe
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uick thinking, adaptability and fast implementation of technology proved the essential elements of survival for hospitality businesses throughout 2020. Those outlets that could switch up to takeaway and delivery channels had a means of trading and engaging with customers. Fast-tracking apps and tech tools to smooth the customer journey were must-have items. Location proved important, with neighbourhood outlets suddenly outperforming the CBD sites, which became shadows of their bustling trading days, or closed altogether. Hudsons Coffee, which has a business model centred on hospital and airport locations, used technology to attract frontline workers to grab a coffee. However, in the network of 80+ stores it was the CBD and corporate airport stores that were hit hard by the travel ban and the shift to working from home. Jarrod Montigue, Hudsons Australia and New Zealand GM, says, “The big thing that worked well for us is the click-and-collect app now has a delivery function, which we switched on for hospital staff. When we launched the app in 2019 it wasn’t ever tested for delivery. Through necessity we ramped it up pretty quickly.” The swift action proved worthwhile, with delivery in late 2020 accounting for about half of the revenue in some hospital cafes. “More and more people are shopping local and this is opening up opportunities for sites I wouldn’t have looked at before,” admits Jarrod. “Consumer trends are shifting, local suburb strips are thriving. I’ve had a number of landlords ring me, presenting numerous sites. We’ve got to be smarter and more convenient for people. “In 2019 we had a complete brand refresh so what we’ve been able to do over the last six months behind the scenes is develop new tech, new training modules, update recruitment tools, a new website, enhance our digital capabilities to touch more consumers – we’re investing in e-commerce.” It is all about customer experience. “We have seen through 2020 that good cafe operators have been able to improve their offer and value
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proposition, which in turn has improved the customer experience. “Coffee is a very personal product and good operators distinguish themselves by creating a customer experience that is infectious and deliver on a quality product that drives repeat business. “Our brand, as an example, has stores currently showing positive sales growth in 2020. Adding features of delivery and expanding our online menu has only added additional purchasing options for our customer base.” Erin Warner, brand development manager at the Stellarossa Cafe chain, agrees that while innovation is crucial to a business there’s more at the heart of cafe success. “We provide fast, high-quality meals via online order platforms and for takeaway. But at the end of the day, we believe that humans still need and crave genuine interaction. “To go to a cafe and feel that the team there genuinely care that you have a terrific experience, for most people, is worth a small sacrifice of time or money. The guest experience is our bread and butter, and it’s our point of difference. “We don’t need to tell our franchise partners the importance of providing a great guest experience. They’re living it on the frontline every day, and they know the immediate impact that a drop in guest count can have on their bottom line.” Erin says the traits required to deliver a first class cafe experience are innate – and that’s why the franchisee recruitment process is essential. “You can’t train somebody to be the type of person who truly cares about people. So for us it starts at the beginning of the line when we’re selecting franchise partners to represent our brand, and assisting them to hire their teams. u
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SPOTLIGHT ON CAFES
The cafe business
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ussies are expected to continue to enjoy premium ingredients and appreciate convenience, so analyst Matthew Barry at IBISWorld predicts cafe owners will make a focus of gourmet cafe-style meals in an effort to boost sales of higher margin products. “Although competition is projected to intensify over the period, profit is forecast to recover from a low base year due to Covid-19,” he wrote in the April 2020 report Cafes and Coffee Shops in Australia. “Furthermore, ongoing consumer interest in health and ethical consumerism will also likely support profit margins. “Overall, industry revenue is forecast to increase at an annualised 5.5 per cent over the five years through 2024–25, to $10.7 billion.”
“By being selective, we’re creating a solid network of cafes, owned and operated by salt of the earth locals within their communities, and this brand strength is a formidable force in the world of both consumer selection and profitable cafe enterprises.” Natalie Brennan, Muffin Break’s general manager, says customer satisfaction is the number one priority. Maintaining first-class standards comes down to great training, she points out. “We have sought out and developed new training techniques and technology by way of artificial intelligence including virtual reality realms, gamification, quick response (QR) codes and holograms for
an exciting training experience and to help our franchisees and their teams deliver exceptional customer service.” And it paid off in 2020 with the cafe chain twice named the Roy Morgan 2020 Coffee Shop of the Month for its customer service. At Retail Zoo, a multi-brand franchisor, there are three pillars forming the foundation of the Cibo Espresso chain – and that hasn’t changed. Ali Kurtdereli tells Inside Franchise Business, “The fundamentals of our business – coffee, authenticity and experience – have served us well and provided a clear pathway to adjust to new market forces.” He says the brand vision, “that every
customer will leave a Cibo store feeling just that little bit better” has never been more relevant given the current hospitality environment. The brand is a proud South Australian brand, the first Italian-style premium cafe chain. “We are proud that our coffee roaster is local and provides a blend specific to us that South Australians love and trust,” says Ali. “From that foundation we provide monthly limited time offer drinks, on our easy-to-use app, so customers can feel comfortable to have what they know but enough variety to keep them engaged.” n
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SPOTLIGHT ON CAFE
IT’S YOUR
PREFERENCE! When you buy a food franchise you could be joining a small, close-knit organisation or a large corporation.
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f you are looking to buy into a franchise system it’s important to understand the stage of growth that the particular brand is at.
THE BIG PERSPECTIVE
Hudsons Coffee is just one food and beverage business owned by a major corporation, in this case Emirates Leisure Retail, which is part of the overall Emirates conglomerate. Jarrod Montigue, CEO of Hudsons Coffee, highlights the benefits of having a big group behind a brand. “Firstly, support. Last year alone showed that our franchise partners have been supported extremely well, with financial, stock and rent support. “However the biggest benefit is certainly our leverage in supply chain with buying power. “We are able to take advantage of our partnerships in the aviation sector to secure great buying power, which has delivered fantastic savings for our franchise partners. Many new deals have been launched in 2020, to deliver more financial savings for our store network.”
Ben Hatten, managing director of franchise recruitment at BDC Partners, points out there is an inevitable change in the franchisee/franchisor relationship as a business develops. “As a franchise brand grows, the further removed the founders become from their franchise partners. This is not a bad thing, it is inevitable that the bigger the network it just becomes impossible to have the time to have the same connection a franchisor would have with a network of 10 sites as opposed to 50 sites.” In a relatively new or small brand there is a good chance the systems and procedures are still being developed and concepts tested, he suggests. Rather than providing a defined vision and structure, a smaller operation is likely to be more fluid. “If you are an entrepreneurial type this kind of environment will suit you: you will be prepared to build the bike while riding it!” says Ben.
ESTABLISHED BRANDS OFFER STRUCTURE AND SCALE He points out that a more mature brand that has progressed from the entrepreneur/partnership phase can offer franchisees a lot more structure and compliance. At the plug and play/empire building stage of a business’ life cycle it's all about systems, process, and procedures. “Basically, an established franchise will do what it says on the side of the tin,” says Ben. “You won’t have a high level of input regarding innovation or direction of the brand. You will probably only get a chance to engage with the founders at the annual conference.” However there will be escalation processes in place that will allow for franchisee feedback and there will be strong operational support that is focused on what works within the system.
DO YOUR RESEARCH “Regardless of the size of the network big or small, one common key aspect of the recruitment process is due diligence – you need to have done your homework. If you are not prepared to invest your time effort and energy in conducting your due diligence don’t expect the brand to invest time and energy into your application. “I can't stress this enough. Yes you are buying into a proven system but you are still buying a business that you are ultimately responsible for. There are no guarantees in buying a business so you need to be as educated as possible that this is the right decision for you.” Ben’s advice? “Have a solid cash flow forecast and business plan prepared, know the market, know the competition, and have an exit strategy in place. This is business 101 and if you aren’t prepared to take the time to do thorough due diligence don’t expect a second look.” n
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It’s good to be the ‘Donut King’ During COVID-19 lockdowns, donuts have become more popular than ever. In fact, the staggering rise in global donut eating this year has been large enough to give Homer Simpson’s 20 year consumption record a run for its money.
“I cannot speak highly enough of the company; they took a step back had a look at things and then stepped forward with a great future ahead.” Given its re-focus, Donut King is currently expanding its network by attracting franchise-partners who want to be owner-operators of this famous brand. The name has history. It has identity. It has brand equity. And despite, the advent of the over-the-top donut revolution, it still has a large consumer following. In fact, Donut King has been Australia’s favourite donut destination for nearly 40 years, and ‘owns’ the donut market where other premium-priced brands have come and gone.
According to a recently released report by Reports Globe, the global donuts market is set to reach US$63.3 billion ($88.82BN) by 2025.
With 220 domestic outlets serving 18 million customers per year, Donut King generated $50 million in donut sales and $38 million in coffee sales in the last financial year.
The report suggests Australians are leading the charge. Suffice to say, there is an enormous appetite for donuts among Australian consumers which is good news for donut makers.
“One of the strengths of our dominance is pricing,” says Bully. “Donut King has kept the average sale one of the lowest of the quick-service restaurant brands. For a lot of families, we are an affordable treat.
Following a complete rebrand, Donut King is riding the wave of positive sentiment towards these well-loved tasty treats.
“People come back time and again, because we have consistent quality, which essentially comes down to fresh donuts and now premium coffee.”
Parent company, Retail Food Group (ASX: RFG) has recently spent several million dollars rebranding Donut King: a total of $3 million has been spent on rebadging the coffee branding alone.
As mentioned, the brand has recently invested $3 million into changing to a premium blend of coffee, along with new equipment and regimented training content, repositioning its stores towards the coffee consumer.
The focus of RFG has been to bring what some may have seen as a tired brand, up to par with independent operators and to offer an affordable, family-priced alternative to the $10-plus extreme donuts that have pervaded the market.
Also of note is the roll out of the Donut King mobile van trials that align with the ‘affordable and fresh’ values of existing stores. This roll-out will offer a unique point of difference to competitors: the vans will provide freshly made donuts and premium freshly brewed coffee compared with poor quality frozen food and poor-quality coffee.
Donut King is focused on affordability and flavour profile, not how fancy they can make the dessert. This is important as many of its stores are located in mass market centres. However, while the donuts remain well-priced, the stores have been upgraded to look more modern and inviting. Fresh products – including coffee served in beautifully branded cups – made on site, rather than shipped in is also a focal point of the brand moving forward. In essence, Donut King now offers a premium brand at an affordable price. This is reflected in the packaging, five new recently released flavours ranging in glazed. Filled donuts and a children’s range complete with unicorn donuts. The focus on packaging now means customers can purchase boxes of six and 12 donuts. They can buy birthday boxes and a range of affordable options for various events.
Donut King mobile vans will also have the ability to leverage off the $4 million per annum marketing done by the store network which has created high brand awareness over the last two decades. For prospective franchise partners, Donut King not only offers an attractive consumer price point, it is also an affordable business model to buy into. Store development fees now range between $150,000 and $300,000 – much cheaper than any other food retailer. As a mass market brand, competition is minimal, and it is one of the most affordable franchises to break into because stores are predominantly kiosks in shopping centres meaning the rental and other overheads are considerably lower than larger store-based systems. A new outlook
“While our coffee has improved, we have kept the family favourite donut ranges with a renewed focus on driving average transaction values through boxed donut sales. We now have a range of donuts that merits customers purchasing 4,6 and 12 packs which means we can keep our retail prices affordable whilst still driving growth.” says franchisee Garry Spring who is a Queensland Donut King franchise-partner based in Booval and has a second store in Toowoomba.
There’s a lot to like about Donut King at the moment … beyond the donuts.
New focus puts franchisees onside
CEO, Peter George and Head of Retail, Matt Marshall have focused their energies on the success of the franchise-partners by implementing systems to improve sales, lower costs and deal with business problems with an agility that was previously lacking. The moves have paid off.
The refocus has had a positive impact on existing franchisees and is designed to attract new franchise partners to the brand. “This is a great business to be in,” says Mick Bully, a Townsville-based franchise-partner, who has just bought his seventh Donut King site. “Our affordable product lines and low entry costs make the business attractive for existing partners to expand but also prospective new franchise partners to put their first store on the ground.”
The new management team has put an enormous amount of work into reinvigorating the brand, targeting new consumers and attracting loyal customers back to store. In 2021 Donut King plans to celebrate its 40th birthday with significant marketing spend, whilst also launching a new above the line marketing campaign.
Bully says he and his wife had been building their Donut King stores for 30 years. They recently bought their seventh – and during COVID – a testament to their enthusiasm about Donut King’s new management, strategy and direction.
Spring has similar sentiments.
“We are very optimistic about Donut King. Working hard and following the system is what franchise-partners need to do. And when head office is on your side, great things are possible.”
“The parent company, Retail Food Group, is now totally focused on supporting us franchise-partners”, says Spring.
Ready to join us? Contact Kellie Cranch on 0401 058 607 or email kellie.cranch@rfg.com.au
SPOTLIGHT ON HOME AND GARDEN
Home base
Pools, gutters, fencing, lawns, paving, pest control, renovations, decks, home services…
T
he stay-at-home Covid culture and the current focus on staycations helped drive Aussies to upgrade and renovate their homes and backyards last year with home-improvement loans averaging $63,188 according to Suncorp Bank lending data. And that makes home services a brilliant sector to buy into if you’re looking for a hands-on, mobile business.
In the pool The pool industry is just one sector that has recorded better-than-expected growth during the past 12 months as Aussies turn to maintaining and improving their homes and outdoor areas. POOLWERX This Aussie brand reported late December 2020 the pool service chain had boosted sales year on year by 15 per cent. The brand’s chief operating officer, Nic Brill, agreed the Covid-fuelled home-services boost has been good for the pool service franchise. “We’ve been the recipient of this home cocooning trend since March,” he said at the time. “More than 80 per cent of the network is already ahead of budget for the financial year, which is also testament to the strength of our network and processes, which allow franchise partners to focus on running their business on the ground.” Perhaps surprisingly Victoria, Tasmania and South Australia saw the greatest growth with a 30 per cent uplift year on year. In November 2020 there was also double digit growth in average transaction value. Nic Bill credits the strength of the network, and the support, as a competitive advantage for franchisees. “Our diversified approach and business model, working across retail and servicing, provides partners with multiple revenue streams which can safeguard your business against troughs within the different sectors.” Franchisees can build a business as a retailer, or start as a single operator in a van and build up to multi-store empires. Poolwerx was founded 27 years ago and now boasts 160 retail outlets and 600 mobile vans in more than 350 territories across Australia, New Zealand and the US.
JIM’S POOL CARE & MOBILE SERVICE Fellow pool business Jim’s Pool Care reports the pandemic has been a prompt for some people to take the leap into franchising. “We have experienced a huge increase in enquiries from people looking to change direction in their working lives and wanting to learn more about what our pool care franchise has to offer,” says Brett Blair, GM and divisional franchisor. “We already have newly trained franchisees commencing their businesses in local territories and many more coming through our system.” The Covid-restricted months of 2020 saw franchisees adopt strict protocols around site visits including sanitising and safe distancing from clients. “Calls for assistance continued to pour in through our national call centre and we were there to offer help to pool owners, real estate offices and tenants.” Adapting to the new situation was an important part of sustaining business, explains Brett. One pivot was the new Test & Balance service where franchisees could provide a digital analysis ⊲
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SPOTLIGHT ON HOME AND GARDEN
of the water chemistry on site and adjust the water balance if necessary with the appropriate chemicals to ensure a safe and healthy pool. Jim’s Pool Care & Mobile offers a 10 year term with a franchise investment of $69,000 and no renewal costs. The business founded in 2003 now numbers more than 110 franchise territories.
Getting outdoors
GUTTER-VAC Another homegrown outdoor business, and one that began more than 20 years ago, recently scooped a 5-star rating for its transparency and performance as a franchise chain. According to FRANdata, which independently evaluates businesses, the review
team was particularly impressed with the financial performance across the GutterVac network, franchisee engagement levels and the amount of support provided to its franchisees. It’s a family business that has always prided itself on safety for franchisees. Gutter-Vac uses a vacuum process to ensure clean and safe gutters and founder and CEO Warren Ballantyne wrote in a recent blog “Working on a roof and working on ladders is not the safest place to work, but if you have the knowledge on how to do this safely, plus the safety equipment to back you up, then there is no reason that you can’t go out and work at heights for the entire day and then make it home to your family each night.” To help boost the safety aspect, Warren started up a sister company, Ballantyne Safety, which is a Registered Training Office (RTO) that teaches people how to work at heights, and provides safety products and systems for other firms. The key to maintaining safety is using a travel restraint system which means if a franchisee trips on a roof they will fall on to the roof, rather than hang suspended off the roof. This allows for franchisees to
operate solo on site. And the strong safety aspect, full insurance and a national network deliver a high proportion of commercial clients, which account for about 70 per cent of Gutter-Vac business, says Warren.
DECK SEAL The firm was established 13 years ago in Victoria, and has since restored and preserved more than 8000 decks for residential and commercial clients. The work isn’t just deck-based though. Think more timber structural services such as fences and screens, pergolas, bench seats, garage doors, outdoor furniture,
PARTNER WITH A LEGAL PROFESSIONAL WITH COMMERCIAL ACUMEN Franchising is an important decision for both franchisors and franchisees. We are on hand to provide strategic, practical solutions to help you plan and achieve your short and long term goals. Unlike other legal firms which provide legal advice piecemeal, we look at the whole picture, help you with risk management, compliance requirements to eliminate unwanted surprises. Our principal is an Accredited Specialist in Commercial Law and has valuable in-house experience, has advised businesses for more than 25 years and understands first hand the many challenges faced by business owners. Contact Christine Lau on (03) 9653 9203 or via email at Christine@laulegal.consulting for a confidential discussion to start or grow your business FEB/APR 2021 | 58 | WWW.FRANCHISEBUSINESS.COM.AU
planter boxes, even high pressure washing and concrete/paving cleaning and sealing. Deck Seal has refined its processes over the years and sourced top quality products to ensure a high standard of work. Brian and Danielle Burgess launched the business in 2007 and it remains a family firm. Brian shares in a blog why they established the business. “What we wanted to do was build a franchise that came as a fully established and respected brand, delivering a sought-after service in a niche market,” he explains. “Becoming part of our franchise paves the way for anyone to grow a great business without the pressure of having to build the company from the ground up,” he says. It costs $60,000 to $70,000 to invest in a Deck Seal business. FOX MOWING & GARDENING A specialist franchise that focuses on garden services, backed by 20 years of mowing franchise experience. Franchising since 2012 the brand aims to deliver a gardening service with a difference. The brand is committed to staying focused on its niche market, and services
Multiple services in one
on offer range from lawn care, fertilising, general garden care and weed care to hedging and topiary, landscaping, general maintenance, even pest control. Today there are more than 110 franchisees in the network, each operating in their own territory. Franchisees can expect initial personalised training and ongoing marketing and business guidance to help build the business, and will pay about $16,000 for the right to operate a Fox Mowing franchise for a substantial 10 years, with one option to renew. There are finance options available and extra costs include equipment.
One business that brings together multiple elements of outdoor and indoor care is My Home Services, the result of My Home Watch combining all its service offers into one mega-franchise 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. When she announced the new business structure in mid-2020, 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 business has thrived by helping thousands of travellers and short-term rental owners each year. 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. ⊲
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SPOTLIGHT ON HOME AND GARDEN
JAMES HOME SERVICES Established in 1993 this business offers plenty of choice in the services you can deliver as a franchisee, from interior home care to lawn and garden care, from windows and exterior home care to carpet cleaning and pest control; from mobile car cleaning and detailing to mobile pet grooming and hydrobath. All training, equipment and ongoing support is included in the initial cost and new franchisees can take advantage of a $1000 weekly income guarantee for the first three months of operating the business. On top of the brand-related information, the franchisor can help with crucial issues such as workplace health and safety, and employment rules and regulations. Each franchisee runs their business within a protected territory, with a call centre delivering all-important leads for potential new customers. For the more adventurous, or ambitious, the opportunity to run a regional franchise means you can build up a larger area and support franchisees in your region.
Indoor focus MEGASEALED Since 1996, Megasealed has pioneered time and cost-effective solutions for leaking showers and balconies, eliminating the need for tiles to be removed to complete the work. Each year Megasealed services more than 18,000 showers and balconies. Typical customers range from homeowners to bodies corporate, real estate managers, retirement facilities, hospitals and government departments. Most franchises are made up of three to four territories. Capital investment is $30,000 + GST per territory and finance options are available. There will be extra costs in setting up the business, including a vehicle and signage, insurance, workcover, licences, uniforms, tools and opening stock, and the cost of local area marketing Megasealed has established territories available across the country in New South Wales, Queensland, Victoria, South Australia and Western Australia.
2 WAYS TO BEAT THE PESTS
GROUTPRO AUSTRALIA Operating for eight years, the business focuses on tile and grout restoration services that save home owners big bucks by not having to re-tile their bathrooms, kitchens or living rooms. The franchisor suggests there is plenty of opportunity with potential clients not just homeowners but strata management, resorts, shopping centres and commercial premises. Current franchisees come from diverse backgrounds including the police, banking, sales, and printing industries. It’s a business that also attracts female franchisees to the frontline role. The franchise cost starts at $49,950.
If you’re looking for a business with potential, look at the pest control options. Analysis firm IBISworld values the Australian market at $1 billion, revenue generated by the 3,366 firms operating in the sector. PEST CONTROL AUSTRALIA This business works to rid businesses and homes of all kinds of pest infestations, and is a specialist in eradicating and preventing termites. For 40 years it has traded as Pest Control Queensland, and in 2020 packaged all the experience and skills honed over those four decades into a franchise business model. The franchisor assists with back-end management, leaving franchisees free to build their business. There’s the potential to take on multiple franchises and on-sell them. Total cost to invest in a business is between $60,000 and $90,000 for a five year term with two options to renew. Initially there are 25 territories available across the sunshine state, with plans to build a national footprint once the home base is well established.
LOCK IN YOUR FUTURE Lock & Roll is a specialist window and door repair, maintenance and upgrade service for domestic and commercial property owners and managers. Franchisees undertake a four-to-six week initial training program. Lock & Roll offers an income guarantee for the first 12 weeks to help newbie franchisees establish themselves. Expect to pay $40,000 franchise fee and the cost of a van.
CREEPY CRAWLY PEST CONTROL Operating in Queensland and New South Wales, Creepy Crawly Pest Control has been franchising since 2004 but began trading in 1976. Franchisees deliver services such as insect and rodent control, pre-construction termite barriers and pre-purchase termite inspections for commercial and residential clients. Expect to pay above $30,000 for a franchise, which has a fiveyear term and ongoing options. You’ll need to add in the cost of a vehicle and licensing fees. The franchisor is an RTO pest control training provider.
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SPECIAL FEATURE ON AGED CARE
ON DEMAND
Aged care is a booming industry. Check out who is in the market right now.
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any Australians are searching for an alternative to residential care for their loved ones and stayat-home services have never been more popular; demand continues to rise across the country as potential clients now have greater control over their choice of carers. However, the current demand is not being met by the existing swathe of businesses operating in this marketplace, and that’s a big challenge for the sector. Ross McDonald at Capital Guardians says it can be a challenge to find the ideal carer. “Our care advisors certainly have an advantage of being independent, and can look at existing care agencies and non-traditional approaches of finding carers for our clients, via online platforms and advertising directly.” He advises incoming franchisees to reflect not just on whether the brand suits them but if it has the capacity to attract top-class carers that will be an integral part of their business. Nurse Next Door is a well-established North American business that is relatively new in Australia, providing a support service for the ageing and disabled population. Matt Fitton, Nurse Next Door CEO, can testify to the challenge of meeting and managing the current (and future) demand for service, which is driven by NDIS funding and an ageing population. But it’s important for the franchisor that incoming franchisees aren’t looking to enter the industry to simply make money. “As an essential service supporting vulnerable people this is an industry that is just as much about passion as it is profit,” he says. Franchisees are rarely the carers themselves, employing carers to deliver help in the home, personal care, nursing and allied health services. Of course, franchisees have a significant advantage over start-up
solo businesses, backed with experience in both operating the business and in understanding the marketplace and the particular demands of a regulated sector such as aged care. Staying up to date with legislation and changes in both aged care and NDIS sectors is crucial. As government departments and the NDIS increase care standards, the policies and procedures that meet and exceed these expectations need to be updated. That’s where a franchisor can add significant value to a franchisee – taking the pressure off franchisees’ regulatory concerns by communicating any relevant procedural information and ensuring standards are maintained. It is of course important that franchisees understand and appreciate the differences between home care and hospital care – ensuring the choices of the client rather than the needs of the service provider are what drives the engagement.
THE CAPACITY CRUNCH Australia’s over-65 population is expected to double by 2057.
There were 142,436 home care consumers mid 2020.
Sources: aihw.gov.au; GEN-agedcaredata.gov.au; NDIS.gov.au
In two years more than 500,000 people are predicted to access the National Disability Insurance Scheme.
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In the 2020 budget the federal government promised $3.9 bn for NDIS and funding for 23,000 more aged care home packages.
HOME CARING
10 BASIC QUESTIONS
Established in 2015, the business began franchising in 2018. It’s an Aussie business with a point of difference – a joint venture model that delivers a franchisee salary and a 50/50 share in profits. It costs between $50,000 and $100,000 to invest in the business (add on legal and accounting fees). Franchisees have access to comprehensive training, marketing and management tools. In return they need to be able to follow the system and problem-solve in their own business. Typical franchisees will share a team spirit, business drive, a good eye for detail and the ability to build high-trust relationships with clients.
Bill Lockett at Home Caring suggests the following questions could form the basis of your research into the business you are considering as an investment: 1. What is the total amount of money you have to invest, including the working capital required before breaking even? 2. What assistance can you obtain to fund that investment? 3. Are there options to partner with the franchisor in your new business? 4. What other conditions are available for franchisees: ie is a salary payable to the franchisee? 5. How does the franchisor ensure compliance to government standards, especially with Royal Commission likely findings? 6. If you are a health professional with no business experience, what support will the franchisor provide? 7. What is the plan for acquiring clients? 8. Is it difficult to find care workers who deliver the services in a client’s home? 9. What has been the experience of other franchisees in the network? 10. Is the franchisor a wholly owned and operated Australian business?
CAPITAL GUARDIANS With Capital Guardians you could become a care advisor, a local representative for NDIS Plan Management or Home Care Package Management. The role combines client care with sales, and unlike traditional franchise models there is no up-front financial investment and there are no franchise fees. A structured remuneration set-up links to clients, with a mix of up-front bonuses and monthly retainers dependent on the service provided. Networking and relationship skills are essential but there are no mandatory qualifications. Organised and go-getting advisors need to be comfortable operating online systems. There will be initial training provided online, and advisors will have access to ongoing business and marketing support.
RIGHT AT HOME AUSTRALIA This international brand has more than 650 sites in seven countries and a $700 million turnover. In Australia there are 27 franchisees delivering a broad spectrum of care to more than 2000 clients. Franchisees need to be community-minded, adaptable, collaborative and resilient. The capital investment is $200,000, with a $100,000 franchise fee for a 10-year term and two five-year options to renew. Franchisees get a protected territory, two weeks’ training, ongoing support and marketing tools on hand. Right At Home also provides support and training for employees, including care managers and office managers. The business has been in Australia since 2016 – it began in the US back in 1995.
NURSE NEXT DOOR Founded in Canada 20 years ago, the business launched in Australia in 2019. Thanks to the structure of the business, franchisees can concentrate on developing their business because there is back-up from head office. It starts with a 12-week foundation course for new franchisees, and ongoing support from a dedicated business coach. Nurse Next Door operates with a centralised service platform that delivers a 24/7, 365 days a year service, handling enquiries and client and caregiver schedules, which allows franchisees to focus on their business. Franchisees have access to marketing campaigns including digital and social media. The franchise fee is $80,000, and there are no requirements for healthcare experience. The best franchisees combine a caring approach with tenacity and the ability to follow rules and regulations.
JUST BETTER CARE An Aussie brand that’s been franchising since 2007 and today has more than 40 franchised territories. Technology drives training and support, with a variety of tools and systems to help education and provide guidelines accessed digitally. Investment ranges from $70,000 to more than $200,000. Healthcare experience is an advantage to franchisees but not essential. What is required is an entrepreneurial drive matched with management or compliance skills, and an obsession with delivering great customer service.
PEARL HOME CARE This Perth, Western Australian-based business began franchising in 2015 and there are now six franchisees in the network. Franchisees can purchase a business from $225,000 – that’s a figure combining capital investment and set-up costs. A term is 10 years, and there is one option to renew for a further 10 years. It helps to have some aged care or disability education or experience, but it isn’t essential. Training, ongoing support and national and local marketing are part of the package. n
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SPECIAL FEATURE ON AGED CARE
SO YOU WANT TO BUY AN AGED CARE FRANCHISE? What are the key factors to take into account before you invest in a franchise? CORINNE ATTARD Consulting principal, Keypoint Law
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sector that has boomed in 2020 defying the pessimistic business results in other areas has been home-based aged care providers. The combination of Covid-19 and the Royal Commission into Aged Care Quality and Safety tarnished the reputation of residential aged care, causing many people to consider the option of home-based care for themselves or their family members. Demand for these services has skyrocketed. The Commission described the aged care system in Australia as “a shocking tale of neglect” and was particularly critical of the reliance on residential care, and has called for more home care packages to be provided by the Commonwealth to assist people to remain at home. While the large not-for-profit providers dominate the aged care and disability care sectors there are a number of franchise-based businesses operating in-home care businesses across Australia, competing for this growing demand for services. So what do you need to think about if you are considering buying into any of these franchises?
Compliance and regulation The first thing to know about the aged care sector is that it is highly regulated. Like child care, it is about caring for vulnerable people and it relies to a high degree on subsidies and government funding. Consequently there are myriad regulations governing who can be a provider and the provision of the services and how these are funded. There are a lot of acronyms to learn – CHSP, HCP, CDC – and if you are also providing services for disabled clients you have the NDIS and another set of regulations and acronyms to learn and follow! In this type of franchise system your franchisor should give comprehensive training about the regulatory requirements. But if you are an approved provider of services you are ultimately responsible for ensuring you are across the rules that apply, and for monitoring and ensuring you are compliant. If you are someone not completely comfortable with paperwork and operating in a regulatory and compliance-driven environment, this is not the business for you. Your franchisor should have a robust compliance and monitoring program – this protects the brand and your business from reputational damage if a franchisee does not follow the rules. Another associated risk factor is that the sector is subject to the risks of government changes in policy. Currently the government has flagged that the CHSP (Commonwealth Home Support Program) and the HCP (Home Care Packages) program will combine some time after July 2022. What does this mean for the sector? It could be a positive but it is unknown. Home Care Packages (government-provided funds for home care services) are at the heart of the Consumer Directed Care (CDC), which enable clients to choose which providers they will use and how they will spend the funds. Since CDC was introduced in 2017 the number of providers has doubled, however the number of packages being released has not kept pace with demand. While the Royal Commission and others demand increased packages to be offered and the government has announced increases in the number of packages, these businesses continue to be constrained by this limitation on funding and clients – a matter which is beyond their control. ⊲
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SPECIAL FEATURE ON AGED CARE
Staffing This type of business is essentially about managing a remote workforce of carers. So a substantial part of your costs is not only wages for the actual field staff but also the rostering, scheduling and staff management and payroll. While you may not have a shopfront you will usually need an office for the staff who undertake these office functions, as well as the invoicing and accounting for clients and management of HCP funds. Your franchisor should assist you with systems and software for staff management, as well as for client and funds management. This is a critical aspect of your business to be assessed when comparing different franchises. There is a high demand for carers and many providers find locating suitably qualified staff difficult. Ensuring you retain a reliable, satisfactory workforce is a challenge and risk factor to consider. The clients may become attached to a particular carer, and if that individual changes employer they may decide to move to that service too (and take their HCP funds with them). Recruitment of staff here is as important as finding clients and your franchisor needs to provide you with the tools for both. If your business provides nursing or allied health services, you will need to retain qualified staff or subcontract those services. Brokering arrangements and contracting between different services and providers is a common feature of the industry.
Other services and clients As mentioned you may also want to be approved to offer services under the National Disability Insurance Scheme (NDIS). This is subject to separate legislation and regulation which must be followed. You should question potential franchisors on their experience and support for providing NDIS services. Other sources of clients (aged or disabled) are privately funded individuals (not in receipt of sufficient funding under CHSP or HCP or those awaiting receipt of funding), those who have received insurance or accident compensation payouts through insurers and other service providers who may subcontract the business to provide services for their clients. Such arrangements should always be formally documented.
Territories These franchises will typically provide an exclusive territory for the provision of the services. As with any territory-based business you should ensure that your territory is going to provide you with enough potential clients and of course you need to look at your existing and potential competitors. Areas where residents have a higher income and are aging may provide you with a greater pool of clients but you may have trouble finding staff locally. So while these can be attractive and growing businesses, they have a high level of complexity and a degree of regulatory uncertainty which will not suit everyone. Detailed research of your potential business, franchise system and territory is needed. You should expect your franchisor to also undertake due diligence of your suitability to join their system, as reputation is key to success in this sector. n
Corinne Attard, a consulting principal at Keypoint Law, is a commercial lawyer with over 18 years of specialised franchising sector experience. Corinne has been named as one of the top franchise lawyers in Australia since 2014 annually in International Who’s Who of Business Lawyers. She is also chair of Hornsby Ku-ring-gai Community Transport, which is an approved provider of transport services under both CHSP and HSP programs to the aged residents of the northern suburbs of Sydney. FEB/APR 2021 | 66 | WWW.FRANCHISEBUSINESS.COM.AU
Advertorial
Crust has big plans for a very prosperous new year What are your plans 2021? Crust pizza is going for growth, including opening 10 new stores. Could one of those stores have your name on it? Australia’s #1 premium brand Since its launch in 2001 Crust has focused on quality, freshness and innovation. There are now over 140 outlets in Australia, plus two international territories, and premium products have set the brand apart. Roy Morgan Research Institute recently named the pizza chain Australia’s leading premium brand in the Quick Service Restaurant category. It's a very good place to be. The research also found that there are over 4.7 million premium consumers in Australia who spend more, and more frequently, than anyone else. But Crust doesn’t stop there when it comes to optimising franchise partners’ . “We recently opened up to a whole new segment of the market to sit alongside our premium offerings,” says Jon Paul Partyka. “An $11 pizza deal with a $5 side option is now available now from many of our stores.” Crust has already sold more than 5.4 million pizzas this year. The number of customer transactions has risen by 21.8% with 15.1% year on year growth. “The fact that sales increased significantly at the peak of lockdown demonstrates the success of our new menu options,” says Jon Paul Partyka. “In tough times, many people look forward to the lift they get from eating our gourmet pizza while other look for affordable options. It’s an example of the innovations our franchise partners welcome and enjoy.” All the support you could need “We’re not just a franchise, we’re a family,” says Jon Paul Partyka. “When you join us, your initial six-week training teaches you everything you need to know about running a Crust pizza store and a small business. You’ll then have support from our friendly team of specialists whenever and wherever you need it.” Crust offers the competitive edge that comes with an established, well known Australian brand. And you don’t even need previous experience to share the benefits – there are expert to guides you through all the key milestones and work with you every step of the way. “The whole set up is easy because we do all the hard work for you,” says Jon Paul Partyka. “You can enjoy maximum efficiency and productivity right from the start. And, with our streamlined payroll, rostering and HR systems, you can spend a lot more of your valuable time focusing on building your business.” In 2021, Crust will also be supporting current franchise partners with brand new designs for stores and the menu. “We never stop thinking about ways to Improve the opportunities for our franchisees,” says Jon Paul Partyka. Get in touch Crust stores range in price from $200,000 and leasing specialists are on hand to help you find your preferred territory and negotiate terms. So, if you’re ready to connect and cultivate customer experiences, contact Kellie Cranch on 0401 058 607 or email kellie.cranch@rfg.com.au, for your first taste of being a Crust above the rest.
FRANCHISE BASICS
SPEND YOUR
SAVINGS WISELY How to put your nest egg or redundancy payments to good use in a business. by Kate Groom
I
nvesting wisely will ensure you have the best chance of success and get a good return on your financial outlay, whether it’s a sudden windfall, a plannedfor superannuation payout or a redundancy that’s an unexpected lump sum in your bank account. David finished up a senior role with an international company and was too young to retire, so he looked around for a franchise business to buy. He was hoping to occupy his time, make an income and get a return on the investment he made from his savings. After some searching, David settled on buying a franchise that was well established. The franchise brand was well known and the franchisor team was highly experienced. The figures from the previous owners showed that the business was very profitable. Although
he was told that the equipment was old and investment would be needed, he didn’t pay much attention to that. To David, the business seemed like a good investment. But within a couple of years, David’s store was on the franchisor’s list of underperforming locations. Despite assistance from the field support team, sales and profit were declining, the equipment needed replacement, and David was losing interest in the business. Eventually David sold the business to an energetic young couple. He didn’t recover all his investment and although he’d made an income each year it was much less than he’d hoped for. This example is not unusual but it doesn’t need to be this way. Sadly too many people who have ready funds available from savings or redundancy make the mistakes of not thinking through their business decisions and failing to seek
appropriate advice. Are you looking to buy a franchise and pay for it with savings, an inheritance or a redundancy payment? If so, here are three valuable lessons from David’s experience: 1. Consider carefully why you want to buy a franchise. Be sure you are willing to work at it and invest if needed! 2. Think like a bank when it comes to investing your own money 3. Assess whether the business is reasonably priced. 1. WHY DO YOU WANT TO BUY A FRANCHISE? Are your goals written down? People often miss out this stage, but it’s vital. Even if you don’t have written goals, you have a goal of some sort in mind when you’re considering a franchise. So why not take time to commit your thoughts to paper?
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Take some time to consider two questions: “Why do I want to be a business owner?” and “Why do I want to buy a franchise?” Note down your answers - it will help you clarify them. Your reasons to buy a business might include some or all of: • Generate an income to live on • Make use of my business and life skills • Make a return on my capital • Do something with my time • Learn new skills When it comes to reasons to buy a franchise, you might be attracted by the support, the fact that the business model is established, or the fit with your skill set. Perhaps you see it as a way to learn how to run a business without some of the risk of starting from scratch. And please remember that owning a franchise is not a passive investment. Remember David? He didn’t have the commitment to work hard in the business or to make the investment needed to keep it up to date. It’s not smart to buy a franchise unless you have an understanding of what work is required, and a genuine commitment to do the work. 2. THINK LIKE A BANK It’s a good idea to think like a bank if you’re investing your own money in a franchise. Here’s how it works with the banks. Let’s say you took out a business loan to purchase a franchise. The bank would expect the loan to be repaid within the franchise term and they would charge interest.
Of course, you will hope to make an income while you operate the franchise but this is very different from the repayment of your capital and return on that investment. Income is what you get in exchange for the role you play in the business, for instance as store manager, sales person or technician. But as an investor, you also want to have an indication that your investment can be repaid and that you will get some sort of financial reward for placing this capital at risk. This is where it pays to get advice from a franchise accountant. Someone with the right experience can help you adapt your due diligence calculations to take into account this capital repayment, and help you think through the risks and how to mitigate them. 3. CONSIDER WHETHER THE PRICE IS REASONABLE With no bank to answer to and a deep desire to get into business, it’s all too easy to gloss over the detail of what the business is actually worth. This is especially true if you have more money than the business is going to cost. Let’s think back to our example of David and his franchise purchase. He saw that the business was profitable and paid a premium for it while neglecting to understand the need for future investment. The reality is that some franchises are simply overpriced. The upfront franchise fee is not justified by the training and the brand value, or the fitout costs are so high that they can’t be recovered over the life of
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the location or vehicle. This is why it’s important to understand what you are getting for your money. You will want to consider: • How reliable is the revenue stream? • Do you think you’ll be able to increase the income of the business? Might it instead decline? • Can you find evidence that the up-front franchise fee is reasonable? Consider whether there’s a track record of franchisees getting off the ground quickly and making a good income or is the franchise new and unproven? • What equipment and fitout do you get for your money? How does that compare with what you could purchase in the open market? And finally, our bonus piece of advice. No matter how much or how little money you have to invest, there’s no sense in buying a franchise that is in a business you can’t see yourself enjoying or are not suited for. A franchise is a long term investment (usually at least five years) and one you will need to work at. So take your time and think carefully about it. Seek advice from independent professionals who understand the franchise sector and will help you assess the opportunity. Hopefully that will help you reap the benefits of investing in a franchise. n Kate Groom is a co-founder and director of Franchise Accounting & Tax and helps franchisees understand the financial aspect of running a business.
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FRANCHISE BASICS
FINDING THE PROFIT IN A BUSINESS
BEFORE YOU BUY AARON MARCH Director, BlueRock Accounting
N
o one wants to buy an unprofitable business. Or, at least, not one without profit potential. But how can you gain an accurate picture of the profit in a business before you invest your hard-earned cash? The truth is that, unfortunately, you can’t. Business is risky and nothing is guaranteed. But this doesn’t mean that you can’t forecast future profit scenarios based on key financial indicators. There are a number of things you can look at to gain confidence in your acquisition.
LOOK CLOSELY AT THE BALANCE SHEET If you’ve had any experience with a financial company, you’d be no stranger to the saying that “past performance is no guarantee of future results”. While there is an element of truth behind this, past performance is still hugely beneficial when it comes to gauging the potential profit you can expect from a business. But it’s important to use a critical lens when looking at financial information provided by a seller because, no doubt, the business owners will be putting their best foot forward. A great benefit of being a part of a franchise system is that it’s highly likely there are many businesses very similar to the business you are considering
purchasing. We encourage you to ask the franchisor for financial information on a range of businesses in a similar area and with similar characteristics to the business you want to buy. Having more information under your belt will provide you with an understanding of the good, the bad and the ugly of a potential business, ensuring you go into the acquisition with your eyes wide open. A franchisor’s hesitation or inability to provide you with the relevant information can often provide an insight into how the franchisor may operate.
RECOGNISE THAT PROFIT IS MORE THAN REVENUE As a potential franchise buyer, you need to have a clear understanding of what profit actually is. Revenue; gross profit; earnings before interest, taxes, depreciation and amortisation (EBITDA); earnings before interest and taxes (EBIT); net profit; net profit after tax (NPAT) are all things that will contribute to your business’s ability to generate profit, which is crucial to the success and survival of your business. There is an old saying that “revenue is vanity, profit is sanity, and cash is king”. After buying stock, equipment, paying the ATO and making loan repayments, business owners will quickly learn that the most important number is how much cash is left over at the end of the day. Keeping this in mind, it’s in a potential
new buyer’s best interest to investigate how much cash the previous owners took out of the business over the 12 months prior, as well as making similar enquiries with the franchisor about comparable sites.
SOLVE OTHER PROFIT CLUES Apart from cash, there are a number of financial indicators that will suggest how a business will perform. Most typically, a business will sell something, and there will be costs associated with the sale. These costs are known as the Costs of Goods Sold (COGS). As an example, the COGS of a clothes retailer is the amount the company paid to purchase or manufacture an item; in this instance, shirts that are being sold to customers. The sales amount less the COGS is known as the gross profit.
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The bigger the gap between the amount the company purchased the shirt for and the sale price of the shirt, the better. The gross profit divided by sales will display the gross profit margin; again, the higher the better! The gross profit is then used to pay all other business expenses (including wages, rent etc.,), after which you are left with a profit or loss. The profit divided by sales will display the net profit percentage, which can be used to compare other opportunities.
UNCOVER OPPORTUNITIES AND MOVE FORWARD The numbers are one thing but there may also be hidden opportunities for profit within the franchise operation you’re
considering. Operational inefficiencies can make or break a business, particularly when it comes to franchise systems built to scale. Find out as much as you can about the systems architecture and operational processes of the business you’re looking to acquire. If there’s a lot of manual input you can guarantee there is double (or triple!) handling of data and key information, leading to wasted time and money, as well as the potential for error. Effective software systems that are well integrated and supported not only improve the efficiencies of your business but also lead to an improved customer experience, which, of course, leads to more sales and – you got it – profit! Plus you’ll have the added benefit of better data and performance insights you can use to make more informed business decisions.
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Without much experience, financial statements and digital systems can be quite complex to understand. We understand that the purchase of a business is a significant decision, and suggest you seek professional advice should you need any clarification with financial information such as the indicators mentioned above. Once you have gathered and interpreted the available financial information, you’ll be in a strong position to establish a range of achievable business profits. Ultimately, where you land within the range is determined by your motivation, drive, skills and abilities as a business owner. n Aaron March is a chartered accountant and director at BlueRock Accounting.
FRANCHISE BASICS
HOW DO YOU KNOW IF YOUR FRANCHISOR IS ON TOP OF THEIR GAME?
How do you know if the franchise system you are looking to jump on board with has what it takes to help shore up your ability to succeed? ROBERT TOTH Marsh & Maher Richmond Bennison
W
e have all had an incredibly difficult 2020 on many levels, but despite the distress and impact on many apparently Australia is out of the recession and looking to rebuild its economy with the support of considerable government assistance. We’re also adapting to new ways of doing business. A large part of this growth will be driven via the franchise sector, which is a major employer. Increased redundancies will also drive people to look at franchise systems as a way forward to learn new skills and generate an income. So can your prospective franchise provide what is needed to keep the business competitive, to support franchisees, and to help deliver success?
WHAT DO FRANCHISEES ASK THEMSELVES WHEN LOOKING AT A SYSTEM? If buying a franchise through an agent or broker, franchisees still want to know who they are going into business with. It will not be the agent, so meeting the founder or a director goes a long way to giving a prospective franchisee some comfort. This will also help them form a view as to who they are going to be working with and accountable to. Do their cultural views align? What is the franchisor’s growth and business plan, and does this align with the franchisee’s plan? Just as franchisors do their due diligence on franchisees, franchisees should and generally will do their due diligence on the franchisor and the people behind the system. This can be done via platforms such as Facebook, LinkedIn, Google, etc. Franchisees will want to get a sense of whether the franchisor and their management team and staff are passionate about their brand and future, and have a positive mindset. Does your franchise recruiter have an attitude that is welcoming and encouraging?
BASIC DELIVERABLES Franchisees will shop around and compare systems within a business sector from the point of view of costs going in and costs to get out, so franchisors need to know what their competitors in the market are offering. A franchisor who has not implemented proper CRM systems and accounting systems or who has not yet embraced social media is well behind the market. This would be a red flag to a franchisee compared with a franchisor who has all the basic systems in place. Other questions to ask about the model include: • Is the franchise model easy to follow and implement, and does it offer a service or product that has longevity (ie not just a passing fad)? • Is there a reasonable split of the revenue or other ⊲ FEB/APR 2021 | 74 | WWW.FRANCHISEBUSINESS.COM.AU
FRANCHISE BASICS arrangement for online sales? Is the franchisor seeking revenue from a number of sources over and above the royalties, to the point where there is very little left for the franchisee to even take a minimal salary? Responsible franchisors will ensure at the outset that their model works for them and also their franchisees.
•
WHAT FRANCHISORS NEED TO DELIVER Franchisors need to provide more than just support in the first few months of the business. They need to provide a meaningful training program and be interested in the franchisee’s financial performance. THE BASIC FINANCIAL SYSTEMS A franchisor needs to be able to provide financial support and identify areas that may not align with the model, for example, larger than needed wage costs due to poor rostering, excessive wastage, higher than usual COGs. A system that can provide proper KPIs, benchmarking and financial reporting will greatly assist everyone operating within the system. Sharing, for example, store-by-store profit and loss helps to create competition within the organisation and educates franchisees on data analysis and their performance. Franchisors should focus on their
franchisees’ profit, not their own. If they do that, the franchisor will reap the rewards.
marketing and customer service and support.
COMPLIANCE MANAGEMENT Franchisors need to be consistent in their compliance management. Support staff need to be properly trained to support and educate franchisees.
HOLISTIC SUPPORT Business is hard work and stressful, so the franchisor should check on the health of their franchisees. This means the franchisee is not working themselves into the ground and they have an outlet at head office or even the director to discuss problems and issues.
SUPPLY CHAIN Franchisors should have in place strategic partnerships with their suppliers as they will also be able to assist with introduction of new products, research and development to help increase sales. TRAINING Training is not just up-front induction training but involves ongoing training and improvement in areas such as sales support and finance. Training should not be a oncea-year event but continuous improvement for everyone in the system. COMMUNICATION Regular communication with franchisees both by email, intranet and in person is vital and franchisees should be encouraged to communicate and share ideas and feedback. Franchisors should celebrate the successes of their franchisees and encourage franchisees to do the same – if you don’t sing your own praises, who will? Well the franchisor should! The culture starts at the top and should filter down to head office, IT support,
RESPECT One of the biggest complaints by unhappy franchisees is that they have not been dealt with or listened to respectfully. Respect is a key driver in having a successful system, which of course should go both ways. CHANGE STRATEGY Franchisees like to hear and see what new innovations the franchisor may be planning, so franchisors need to deliver on innovation and their marketing plans. Behind every decision franchisors and their management team should ask themselves if what they are doing is for a legitimate commercial purpose and if they are acting transparently and in good faith. n Robert Toth is a partner at Marsh & Maher Richmond Bennison and a franchise specialist with more than 30 years experience in franchising, licensing and distribution.
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FRANCHISE BASICS
HOW DO FRANCHISEES ACCESS HR ADVICE? The importance of human-resources support in franchise networks
AMANDA FOX HR Dept
T
he most successful franchisors offer human-resources support across their franchise networks. This support is a referrable resource for the franchise owners to help them navigate the sometimes challenging and often changing world of employment. For this to work effectively, the human-resources advice provided to the franchisor should be delivered by an experienced HR professional. The advice should be tailored to the business model and the unique needs of the business, whilst being underpinned by the relevant legislation to ensure regulatory compliance at State and/or Federal levels. Each operating franchise will have its own model for the delivery of human-resources advice based on their agreement and required service levels. The delivery of human-resources advice and support within a franchise will often be provided by a specialist outsourced provider; this ensures the best support is provided to the franchisee in times of need, with the added benefit of the service-provision costs being kept in check to support budgeting for the business model. Human-resources support will often begin at the time of the business owner’s induction into the franchise model. This may be delivered in the form of a comprehensive human-resources induction, outlining the resources available to the franchisee and how these resources can be accessed by the franchisee. The human-resources induction provides the onboarding franchisee an outline of their requirements from both legislative and best-practice perspectives, at the time they commence employing team members. This provides the franchisee with the foundations for employment and with these in place the employer is in a good position to avoid some of the challenges in the workplace - and the all too often costly mistakes. Having a human-resources expert on hand to assist in times of need allows the business to prevent problems in the workplace before they eventuate. Depending on the model and service offering of the franchise, some human resources may be extended beyond the needs of employees within the franchise business, but also to the needs of their clients. For example, if we take the needs of a franchise operating in the bookkeeping space, it is very common for a bookkeeper to ensure compliance in the payment of wages. This advice will commonly be related to establishing exactly which Award applies to a particular role, and an employee’s classification under that Award. This task can be challenging, with 122 modern Awards in the Federal system. Quite often, a bookkeeper will seek human-resources advice on such matters. A bookkeeper who has access to a human-resources expert as part of their franchise will be at a huge advantage. u
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Making Franchise Law
Black and White
Unravelling the Knot With the increasing regulation of franchising, and impending changes to the Franchising Code of Conduct and current review of the unfair contract laws likely to add to the protection and rights of franchisees and their employees, there is a commensurate increase in the risk of being tied up in legal disputes between franchisors and franchisees that are difficult to unravel. Our commercial litigation and dispute resolution legal team, who have many years of specialist franchising law expertise, and have acted in over 50 franchise dispute mediations in the last three years, employ strategies for clients to manage conflict risks and resolve disputes as quickly as possible with the best possible outcomes. Do not remain tied up with legal disputes. 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
FRANCHISE BASICS
WHAT CAN YOU DO IF YOUR FRANCHISE MODEL OR YOUR BUSINESS DOES NOT CURRENTLY HAVE HUMAN RESOURCES ASSISTANCE? The most practical and efficient answer is to outsource to a service provider, such as the HR Dept, who provide outsourced human-resources advice and support to small- to medium-sized businesses for a fraction of the cost of an inhouse resource. Depending on the needs of the business, the service offering may vary, but essentially, outsourced human resources sit in three key areas: HUMAN RESOURCES ADMINISTRATION This spans across the entire employee life cycle, from recruitment to on-boarding, performance, development and exit. Administrative tasks are the most time-consuming, particularly writing and posting job adverts, drafting employment agreements, writing performance appraisals and documenting policies and procedures. The devil is in the detail with these tasks and it pays to get them right the first time. For example, an error in an employment agreement can end up being an expensive mistake for an unknowing employer. HUMAN RESOURCES ADVICE When we talk about HR advice, we are often addressing employer obligations under the relevant legislation and how this applies to certain situations in the workplace. It’s important to note that this legislation is subject to change; having an expert on hand to highlight relevant changes as they occur takes the pressure away from the business owner. For example, what are the employer’s obligations around redundancy or termination? In such situations, it is important that the employer follows the required process – taking shortcuts or leaving out an important step can see the employer in hot water. Having human-resources advice on hand as required allows the business to navigate through these situations, avoiding costly mistakes. Having a human-resources expert to rely on often serves as a great coaching tool to allow for employers to talk through scenarios with the employee and discuss the best course of action. Very often, outsourced human resources provides a sounding board for business owners who have limited other resources within the business to rely upon.
HUMAN RESOURCES STRATEGY AND TRAINING AND DEVELOPMENT Most businesses have short-, medium- and long-term goals, in which the employees play a large part. After a review of current positions and planned future objectives, a HR strategy can be developed with the strategies in place to roadmap how to best execute the vision. This may include such areas as recruitment, training and development of team members and succession planning. This level of human-resources support is normally provided by an inhouse HR department but can be provided by an outsourced human-resources expert for a fraction of the cost, allowing the business owner to focus on running their business. CONCLUSION The three areas of human resources discussed do not operate in silos. It very often depends on the size of the business as to whether they will require all three. Outsourced human resources such as the HR Dept are here to help. This layered approach allows for bespoke and realistic business solutions to be delivered through outsourced human resources; the likes of which would otherwise typically be delivered by a multi-member human-resources team. n Amanda Fox is the HR Dept Perth Inner City franchisee.
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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.
FIELD MANAGER
an individual tasked with managing a group of franchisees, with a focus on relationships, brand alignment, and sales and profit. This role might also be called business development manager or area manager.
FIXED SERVICE FEE
franchisees may pay their franchisor a weekly or monthly fixed-amount payment, or a service fee calculated as a percentage of turnover (above a minimum payment).
FRANCHISE AGREEMENT
this is the legally binding business between the franchisor and the franchisee.
FRANCHISEE
an individual who runs a franchised business using the intellectual property of the franchisor.
FRANCHISEE ADVISORY COUNCIL
a structure for franchisors to seek and receive feedback from their franchisees. Participating franchisees may be elected or chosen by the franchisor.
FRANCHISE FEE
CONVERSION
an up-front cost paid to the franchisor. It covers the use of the brand name and business system.
DISCLOSURE DOCUMENT
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).
an existing independent business that joins a franchise network.
FRANCHISING CODE OF CONDUCT
this document provides information about a franchise system, the franchisor and the franchised business. It must be supplied to a prospective franchisee in accordance with the Franchising Code of Conduct.
DUE DILIGENCE
the process of conducting in-depth research on a business before purchase.
FRANCHISE TERM
this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. Franchisors often refer to a term with two options to renew as 5 + 5 + 5, for instance.
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FRANCHISOR
the franchisor grants permission to the franchisee to conduct business using its intellectual property, brand name, working methods and marketing.
GREENFIELD SITE
OPERATIONS MANUAL
the franchisee’s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information.
REGIONAL FRANCHISEE
a brand new site.
GOODWILL
this is a calculation of the value of trade in an existing business that is likely to continue and benefit the incoming business owner.
INFORMATION STATEMENT
this is a two-page standard document that outlines what franchise buyers need to know about franchising.
INTELLECTUAL PROPERTY
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.
this term refers to the trademarks, copyright, know-how, trade secrets, designs, patents, branding, operational manuals, methodologies and/or recipes franchisors license to franchisees.
ROYALTY
LICENSE
TERMINATION
LOCAL AREA MARKETING
TERRITORY
MARKETING & ADVERTISING LEVY
TOTAL INVESTMENT
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. often abbreviated to LAM, this is marketing the franchisee is responsible in their territory or designated marketing area. a regular flat or percentagebased-fee paid into a centralised advertising or marketing fund.
MASTER FRANCHISEE
a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied.
MULTI-UNIT FRANCHISEE
a franchisee who has been granted the rights to run more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.
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. 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. is the area assigned to franchisees for their business. Territories can be exclusive or nonexclusive. the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required.
TURNKEY FRANCHISE
a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.
WORKING CAPITAL
the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.
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FRANCHISE BASICS 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
2. FRANCHISOR RESPONDS
3. FIND OUT MORE
4. CONFIDENTIALITY
5. FIRST MEETING
6. CONDUCT DUE DILIGENCE
7. PROVE YOURSELF
8. OTHER STEPS
9. DON’T RUSH IT
Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.
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.
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.
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.
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.
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.
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.
CHIEF INFORMATION OFFICER
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 influential
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
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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 Contact: Chris Longley franchising@ats.com.au www.appliancetaggingservices.com.au Start up costs from: $57,000 + GST
Start up costs: $400,000 to $1,000,000 PROFILE: 7-Eleven is the largest convenience and independent petrol retailer in Australia with more than 700 stores across VIC, ACT, NSW, QLD and WA. We opened our first store in 1977 and have almost 40 years’ experience in franchising. When you buy a 7-Eleven franchise, you buy two things. Firstly a globally recognised brand name, and secondly a business system that works, one that provides more support than most other franchises. As our stores are open 24/7, support is just a call away 24 hours a day, 7 days a week. We are looking for Franchisees who have the potential to lead their team to deliver an outstanding experience to customers. Learn more about what it takes to be part of a partnership in success with 7-Eleven, at www.franchise.7eleven.com.au
PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its 56 franchisees grow profitable and successful businesses. No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.
Phone: 07 5509 0000 Contact: National Franchise Sales Executive franchise@australianskinclinics.com.au www.australianskinclinics.com.au/franchise
Phone: 1300 361 397 Website: www.aussie.com.au/business-opportunities
Start up costs: Starting from $150,000 PROFILE:
PROFILE:
Your business, your way
Put your trust in our 22 years’ experience and join the booming cosmetics industry today with an Australian Skin Clinics franchise.
Become an Aussie Franchise supported by industry leading training and mentoring in a location you want to be. As a franchisee, you’ll receive your Cert IV in Finance and Mortgage Brokering and be accredited with our panel of lenders. You get your own territory to build your business from scratch or find an existing franchise for sale. You’ll also have access to a range of e-learning, face to face development, online training, videos and webinars - your success will only be limited by your effort. Ready to take the next step? Get in touch with us today!
Australian Skin Clinics are one of Australia’s longest standing medi-aesthetics franchise networks and are leaders in advanced skin treatments, laser hair removal, cosmetic injectables and fat reduction. We’re looking for highly motivated professionals to join our rapidly growing franchise network, with some fantastic opportunities now available! Our promise to Franchisees is to remain at the forefront of the medi-aesthetic industry, by driving treatment and product innovation while continuing to grow and set the industry benchmark in excellence. Join the Bluevment today! We’re the ones in blue!
Phone: +61 (3) 8593 45 46 Contact: Ali Kurtdereli boostinfo@retailzoo.com.au www.boostjuice.com.au/franchising
Phone: 1300 920 875 Contact: support@bizcover.com.au www.bizcover.com.au
Start up costs: $220,000-350,000 plus GST
PROFILE: BizCover is Australia’s largest online business insurance service for Australian SMEs. Through the BizCover platform you can compare quotes from up to 7 insurers (including QBE, AIG, Hollard, Vero, Berkley & Dual) and get your cover online in minutes. Over 120,000 SMEs currently trust BizCover to insure their business with cover including Public Liability, Professional Indemnity, Business Packs, Management Liability and Cyber Liability.
A-Z L I S T I N GS
FOR A-Z LISTINGS ENQUIRIES CONTACT:
CONTACT SENIOR ACCOUNT MANAGER CHARLOTTE REDFERN ON 02 8224 8373 CHARLOTTE.REDFERN@OCTOMEDIA.COM.AU
PROFILE: Boost Juice is one of the world’s most famous and loved smoothie and juice brands. With its winning combination of fresh fruit and love life ethos, Boost Juice offers a healthy alternative to fast food and strives to have customers leave feeling just that little bit better. For further information regarding franchising with Boost, get in touch with Boost franchising today!
Phone: 0432 244 136 Contact: Jarryd Cayfe jarryd.cayfe@burritobar.com.au www.burritobar.com.au Start up costs: $150,000 - $400,000 (location and size dependant) PROFILE: Established in 2011, Burrito Bar was inspired by the streets of San Francisco, where traditional Mexican street food meets art to create a wholesome experience. The diverse and flavoursome menu and extensive bar offering make Burrito Bar a leader amongst Mexican restaurants. Our strategic, adaptable, supportive and locally responsive approach to franchising, which puts Franchise Partner sales, profitability, return on investment and success at the centre of everything we do has seen our restaurants continually grow. Burrito Bar is accredited and pre-approved with several lenders, so obtaining finance is simple and straight forward. No experience is necessary as full training and ongoing support is provided at every step of the way.
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CELEB INK Phone: 04Phone: 12511300 1630 Contact: franchising@celebrityink.com Contact: Kevin Bugeja www.celebrityink.com kevin@franchise4u.com.au Start up costs: Initial Fee: $125,000 + GST www.cowch.com.au Minimum Investment: $295,000 Start up costs: $500,000 - $700,000 PROFILE: Celebrity Ink™ originated as a single, yet proud tattoo studio in Phuket, Thailand in early 2013 and in just a few years, has evolved to become the largest and most trusted tattoo brand globally, with more than 40+ studios across 10+ countries.
PROFILE:
Phone: 0412 511 630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.cowch.com.au Start up costs: $500,000 - $700,000 PROFILE: Catering to everything from family catch up’s to hen’s nights, Cowch Dessert Cocktail Bar has become a hit amongst media, influencers, celebrities and - most importantly - customers thanks to its unique menu, Instagramable décor and friendly staff. Cowch is looking for entrepreneurs who prefer the support, branding and systems of an established business to join its franchise network. Founders Arif and Havva Memis have developed a strong business model to ensure franchisees can build their own successful start-up businesses and grow the brand throughout Australia. • Established training practices with ongoing development and support • Robust operational systems and processes • Marketing, recruiting, IT and HR support • Previous experience or qualifications are beneficial but not required. For more information visit www.cowch.com/franchising.
Cowch combines a love for desserts and fun cocktails to bring you Queensland’s original Dessert Cocktail Bar.
As the world’s only franchise model in the tattoo industry, Celebrity Ink™ has set the standard for premium customer experience, freedom of self-expression, quality artistry and impeccable hygiene. It is this mission that has allowed Celebrity Ink™ to alter the perception of the industry globally through its welcoming, familyorientated, centrally located, modern studios in safe and accessible destinations. Celebrity Ink’s community engagement and customer success can be attributed to an unwavering commitment on lifetime client satisfaction, franchise and marketing growth, and innovative experiences.
Established in 2014 by husband & wife duo, Arif & Havva Memis, Cowch quickly became a hit amongst customers, media and celebrities for it’s unique menu, eclectic décor, friendly staff and Instagrammable spaces.
Cowch offers a one of kind experience for people of all ages to enjoy in venue or at home with takeaway and delivery available via Phone: 0401and 058 607 Deliveroo, UberEats DoorDash. The brand is continuing to Contact: Kellie Cranch grow and is currently franchising Kellie.cranch@rfg.com.au (follow prompt to Franchising) / Enquire now rfg.com.au at www.cowch.com.au/franchising crustpizza.com.au
Phone: 0420 939 328 Contact: Jarrod Montigue jarrod.m@emirateslr.com.au hudsonscoffee.com.au Start up costs: $200 - $500k
PROFILE:
Start up costs: $200k + PROFILE: Join us in the era of the foodie! Since its launch in 2001 Crust has focused on quality, freshness and innovation. There are now over 140 outlets in Australia, plus two international territories, and premium products have set the brand apart.
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.
Crust offers the competitive edge that comes with an established, well known Australian brand. And you don’t even need previous experience to share the benefits – there are expert to guides you through all the key milestones and work with you every step of the way. Crust stores range in price from $200k+ and leasing specialists are on hand to help you find your preferred territory and negotiate terms.
Phone: 1300 097 857 Contact: Franchise Sales Team Sales.au@inxpress.com au.inxpress.com/franchise-opportunities
Phone: 1800 497 086 Contact: Lisa Schubert franchisesales@jameshomeservices.com.au www.jameshomeservices.com.au
Start up costs: $64,950 + GST
Start up costs: $43,900 - $56,000 + GST
PROFILE: InXpress is a global express logistics business with over 400 franchisees, located in 14 countries, providing consultative services and innovative software to SMEs. Founded in 1999, InXpress has a long history in managing successful businesses, with the know-how to train and support franchisees in running a sales and business management franchise. InXpress has established strong relationships with global courier partners, providing access to highly competitive rates, leaving you free to concentrate on sales and build your own successful and profitable start-up business: • Low entry and ongoing costs • Proven model for over 21 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: James Home Services is a 100% Australian owned and operated franchise network with 27 + years’ experience in supporting everyday Aussies into their own businesses in the growing home services sector. We offer service franchises in: •
Interior Home Care
•
Carpet Cleaning & Pest Control
•
Lawn & Garden Care
•
Mobile Car Cleaning & Detailing
•
Windows & Exterior Home Care
•
Mobile Pet Grooming & Hydrobath
We also offer Regional Franchise territories, where your role is to build your region and support Franchisees within your region to achieve their business and lifestyle goals.
Phone: (02) 8962 8556
Contact: hello@jepto.com www.jepto.com
Contact: Maria Chemali franchise@kwikkopy.com.au www.kwikkopy.com.au/franchise Start up costs: $280,000 (for a Greenfield)
PROFILE: • • •
Digital Marketing Intelligence and Automation platform Area of expertise: Digital Marketing and Analytics Analytics and Automation platform to help you automate tasks and data analysis. Monitor your sites and marketing data across all channels in one place
PROFILE: Start your franchising journey with Kwik Kopy, the leading provider of design, print and online solutions throughout Australia. Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high quality services on-site. Owning your B2B franchise means operating business hours Monday to Friday so you’ll also enjoy work-life balance. As a Kwik Kopy franchisee you get to become your own boss and be part of a supportive community committed to your success. You’ll also receive all the training you require, so no prior print or design experience necessary. A Kwik Kopy franchisee is young at heart with business experience, entrepreneurial flair and most of all – an absolute passion for customer service. We have both existing and new locations for sale throughout Australia.
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A-Z LISTINGS
Phone: 1300 646 324 Contact: Doug Downer douglasdowner@mindchamps.org au.mindchamps.org
Contact: franchising.madmex.com.au franchising@madmex.com.au Start up costs: $300,000 to $550,000
A-Z LISTINGS
Start up costs: $650,000+
PROFILE: Go to work fuelled by the knowledge that you are a part of a rapidly growing global brand. Mad Mex is a brand that lives and breathes its purpose: to inspire bold, honest, healthy living through fresh Mexican food, with attitude! A brand with a strong growth strategy, focused on leading the way in delicious, healthy options using only the freshest produce available. Do you have the drive to lead the way with fresh authentic Mexican flavour? A passion to utilise your past business knowledge & skills to deliver an outstanding customer experience, all with a cheeky grin? Register your interest on our website now.
PROFILE: MindChamps grew from a vision to provide the world’s best early childhood curriculum and care. Its intent is to give every child the opportunity to become the best they can be by developing the ‘Champion Mindset’. MindChamps invests in innovative research, development, and training, so that children have access to quality curriculum, teachers and resources. With over 80 centres operating globally, we are poised to grow in the Australian market through franchising where we bring aligned individuals into the business and give them the opportunity to change the world, one franchise at a time.
Phone: (07) 3215 6000 Contact: Tanya Kanaris tkanaris@priceattack.com.au www.priceattack.com.au
Phone: 07 3221 2221 Contact: Bill Morgan info@morganmac.com.au www.morganmac.com.au PROFILE: Morgan Mac Lawyers is an experienced commercial law and commercial litigation firm with a specific focus in franchising law. Bill Morgan, has over 20 years’ experience in complex commercial litigation involving disputes between franchisors and franchisees. Since 2016, Morgan Mac Lawyers has acted in over 40 franchise dispute mediations. The franchise related legal services Morgan Mac Lawyers provides include: • Commercial litigation • Alternative dispute resolution and franchise mediation • Franchise Dispute solutions • Corporate and business structuring • Purchase or sale of franchise businesses
• • • • • •
Advising on franchise documents Franchise employment law advice Preparing franchise documents Risk and compliance advice Commercial and retail leasing Privacy and privacy policy advice
Start up costs: From $150,000.00 (greenfield & including stock) PROFILE: Retailer of professional hair and beauty products with full service hair salon. Key benefits: • Economically resilient industry • Proven operational support systems • Designated business development & support manager • Unlimited earning potential for motivated operator What we require: • Fearless ambition with a collaborative approach to success • Retail experience with an interest in hair and beauty services • Hairdressing qualification with a passion for retail
Phone: +61 492 837 020 Fax: +1 416 646 0366 Contact: Greg Sweney opportunity@tutordoctor.com www.tutordoctoropportunity.com
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: 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, UK and Fiji. For over 30 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended-stay business travellers. Quest is now one of the top 15 apartment hotel providers in the world, and widely recognised as the market leader of apartment hotel accommodation in Australia. To become a Quest Franchisee, you must be prepared to make a significant investment and commitment to the business, both personally and financially.
Phone: 1300 549 200 Contact: Kevin Bugeja kevin@franchise4u.com.au walkersdoughnuts.com.au Start up costs: $175,000 - $300,000 PROFILE: At Walker’s Doughnuts, we create the World’s Tastiest Doughnuts! Soft, melt in your mouth Pillows of Perfection; our Doughnuts are created by Doughnut Lovers for Doughnut Lovers. Now it’s your turn to own a piece of something special. A simple model with absolutely no baking in store; just filling, decorating and displaying. Our famous varieties include our signature Vanilla Glazed, Boston Cream, Bavarian Custard Cream, Triple Choc, French Toast, Rocky Road, Raspberry Cheesecake and many others. Our Hot Jam Doughnuts are freshly cooked to perfection and available all day long! But that’s not all! Together with our award-winning Black Rose blend, our Classic Hot Dog flavours, Traditional Milkshakes and speciality Heritage Sodas imported exclusively from the USA, you’ll find us an unbeatable and irresistible offering. Franchising in Victoria and NSW with opportunities available nationwide!
Start up costs: $60,000 PROFILE: Tutor Doctor is a leader in providing one-on-one supplementary education to students and adults through in-home tutoring. Tutor Doctor franchisees, who manage a team of professional tutors and work on the business rather than in it, follow an award-winning home-based business model that requires no educational background to operate. Private tutoring is a multi-billion-dollar industry, and Tutor Doctor is experiencing one of the fastest growing international expansions of any educational company in the history of franchising. With over 700 locations around the world, Tutor Doctor has changed the lives of 300,000+ people by helping them achieve their academic goals.
A-Z L I S T I N GS
FOR A-Z LISTINGS ENQUIRIES CONTACT:
CONTACT SENIOR ACCOUNT MANAGER CHARLOTTE REDFERN ON 02 8224 8373 CHARLOTTE.REDFERN@OCTOMEDIA.COM.AU
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